Document:

SECURITIES
        PURCHASE AGREEMENT

      

      This
        SECURITIES
        PURCHASE AGREEMENT,
        dated
        as of October 11,
        2006
        (the
        “Agreement”),
        by
        and among TXP Corporation, a Nevada corporation (the “Company”) and Kuekenhof
        Equity Fund, L.P., a Delaware limited partnership (collectively, the
“Investor”).

       

      BACKGROUND

       

      WHEREAS,
        the
        Company wishes to sell, and the Investor wishes to purchase, up to an aggregate
        of $1,500,000 (the “Purchase
        Price”)
        in
        shares of the Company’s common stock, par value $.001 per share (the
“Shares”),
        for a
        per share purchase price of $0.32, together with warrants to purchase 2,343,750
        shares of Common Stock, in the form annexed hereto as Exhibit
        “A”,
        at an
        exercise price equal to $0.50 per share and warrants to purchase 2,343,750
        shares of Common Stock, in the form annexed hereto as Exhibit
        “B”,
        at an
        exercise price equal to $1.00 per share. The warrants and the shares of Common
        Stock issuable upon exercise of the warrants shall collectively be referred
        to
        herein at the “Warrants”
and
        the
“Warrant
        Shares”,
        respectively.

      

      WHEREAS,
        the
        issuance of the Shares and the Warrants will be made in reliance upon the
        provisions of Section 4(2) ("Section
        4(2)")
        of the
        United States Securities Act of 1933, as amended, and/or Regulation D
        ("Regulation
        D")
        and
        the other rules and regulations promulgated thereunder (the "Securities
        Act"),
        and/or upon such other exemption from the registration requirements of the
        Securities Act as may be available with respect to any or all of the investments
        in securities to be made hereunder.

      

      This
        Agreement and the Warrants shall collectively be referred to herein at the
        “Transaction
        Documents”).
        All
        capitalized terms not otherwise defined herein shall have the meanings given
        to
        them in the Transaction Documents.

       

      NOW
        THEREFORE in
        consideration of the premises and the mutual covenants, agreements,
        representations and warranties contained herein, and other good and valuable
        consideration, the receipt and sufficiency of which is hereby acknowledged,
        the
        parties hereto hereby agree as follows:

      

      ARTICLE
        1.

      CLOSING

      

      1.1
         Closing
        Date.
        Subject
        to the satisfaction or waiver of the terms and conditions of this Agreement
        and
        the satisfaction or waiver of the conditions to Closing as set forth in Section
        1.2 and 1.3 below, within five (5) business days from the execution of this
        Agreement (the “Closing
        Date”),
        the
        Investor agrees to purchase from the Company, and the Company agrees to sell
        to
        the Investor, up
        to an
        aggregate of $1,500,000 in Shares at per share purchase price of $0.32, together
        with warrants to purchase 2,343,750 shares of Common Stock at an exercise
        price
        equal to $0.50 per share and warrants to purchase 2,343,750 shares of Common
        Stock at an exercise price equal to $1.00 per share. 

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      

      1.2 Company
        Closing Conditions.
        The
        obligation of the Company hereunder to issue and sell the Shares and Warrants
        to
        the Investor at the Closing is subject to the satisfaction, at or before
        the
        Closing Date, of each of the following conditions, provided that these
        conditions are for the Company's sole benefit and may be waived by the Company
        at any time in its sole discretion by providing the Investor with prior written
        notice thereof:

      

      (i) The
        Investor shall have executed each of the Transaction Documents to be executed
        by
        them and delivered the same to the Company.

      

      (ii) The
        Investor shall have completed and executed the Confidential Investor
        Questionnaire, annexed hereto as Exhibit
        “C”,
        and
        delivered the same to the Company.

      

      (iii) The
        Investor shall have delivered to the Company the Purchase Price for the Shares
        and the Warrants being purchased by the Investor by wire transfer of immediately
        available funds pursuant to the written wire instructions provided by the
        Company.

      

      (iv) The
        representations and warranties of the Investor shall be true and correct
        as of
        the date when made and as of the Closing Date as though made at that time
        (except for representations and warranties that speak as of a specific date),
        and the Investor shall have performed, satisfied and complied with the
        covenants, agreements and conditions required by the Transaction Documents
        to be
        performed, satisfied or complied with by it at or prior to the Closing
        Date.

      

      1.3 Investor
        Closing Conditions.
        The
        obligation of the Investor hereunder to purchase the Shares and Warrants
        at the
        Closing is subject to the satisfaction, at or before the Closing Date thereof,
        of each of the following conditions, provided that these conditions are for
        the
        Investor's sole benefit and may be waived by the Investor at any time in
        its
        sole discretion by providing the Company with prior written notice
        thereof:

      

      (i) The
        Company shall have executed each of the Transaction Documents to be executed
        by
        it and delivered the same to the Investor.

      

      (ii) The
        Common Stock shall be authorized for quotation on the Principal Market, trading
        in the Common Stock shall not have been suspended by the Principal Market
        or the
        SEC at any time beginning on the date hereof and through and including the
        Closing Date, and the Company shall not have been notified of any pending
        or
        threatened proceeding or other action to delist or suspend trading in the
        Common
        Stock.

      

      (iii) The
        representations and warranties of the Company shall be true and correct as
        of
        the date when made and as of the Closing Date as though made at that time
        (except for representations and warranties that speak as of a specific date),
        and the Company shall have performed, satisfied and complied with the covenants,
        agreements and conditions required by the Transaction Documents to be performed,
        satisfied or complied with by the Company at or prior to the Closing Date.
        

       

      
        
           

        

        
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      (iv) The
        Company shall have delivered to the Investor the Shares being purchased by
        the
        Investor at the Closing.

      

      (v) The
        Company shall have executed and delivered to the Investor the Warrants being
        purchased by the Investor at the Closing.

      

      ARTICLE
        2.

      REPRESENTATIONS
        AND WARRANTIES OF THE INVESTOR

      

      2.1
         Organization
        and Standing of the Subscribers.
        The
        Investor is a corporation, partnership or other entity duly incorporated
        or
        organized, validly existing and in good standing under the laws of the
        jurisdiction of its incorporation or organization.

       

      2.2 Compliance
        with Law.
        The
        Investor’s trading activities with respect to Shares and the Warrant Shares will
        be in compliance with all applicable state and federal securities laws, rules
        and regulations and rules and regulations of the principal market on which
        the
        Company’s Common Stock is listed.

      

      2.3
         Intent.
        The
        Investor is entering into this Agreement for his own account for investment
        purposes only and not with a view to or for sale in connection with any
        distribution of the Shares, the Warrants or the Warrant Shares. The Investor
        has
        no present arrangement (whether or not legally binding) at any time to sell
        the
        Shares, the Warrants or the Warrant Shares to or through any person or entity;
        provided, however, that by making the representations herein, the Investor
        does
        not agree to hold such securities for any minimum or other specific term
        and
        reserves the right to dispose of the Shares, the Warrants and the Warrant
        Shares
        at any time in accordance with federal and state securities laws applicable
        to
        such disposition.

      

      2.4 Investment
        Experience.
        The
        Investor acknowledges that he can bear the economic risk and complete loss
        of
        its investment in the securities and has such knowledge and experience in
        financial or business matters that it is capable of evaluating the merits
        and
        risks of the investment contemplated hereby.

      

      2.5
         Authorization
        and Power.
        The
        Investor has the requisite power and authority to enter into and perform
        this
        Agreement and to purchase the Shares and acquire the Warrants being issued
        to it
        hereunder. This Agreement has been duly authorized, executed and delivered
        by
        all necessary corporate or partnership action, and no further consent or
        authorization of the Investor or its Board of Directors, stockholders, partners,
        members, as the case may be, is required and constitutes, or shall constitute
        when executed and delivered, a valid and binding obligation of the Investor
        enforceable against the Investor in accordance with the terms
        thereof,
        subject
        to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
        and
        similar laws of general applicability relating to or affecting creditors’ rights
        generally and to general principles of equity.

      

      2.6 No
        Conflicts.
        The
        execution, delivery and performance of this Agreement and the consummation
        by
        the Investor of the transactions contemplated hereby or relating hereto do
        not
        and will not (i) result in a violation of the Investor’s charter documents or
        bylaws or other organizational documents or (ii) conflict with, or constitute
        a
        default (or an event which with notice or lapse of time or both would become
        a
        default) under, or give to others any rights of termination, amendment,
        acceleration or cancellation of any agreement, indenture or instrument or
        obligation to which the Investor is a party or by which its properties or
        assets
        are bound, or result in a violation of any law, rule, or regulation, or any
        order, judgment or decree of any court or governmental agency applicable
        to the
        Investor or its properties (except for such conflicts, defaults and violations
        as would not, individually or in the aggregate, have a material adverse effect
        on the Investor). The Investor is not required to obtain any consent,
        authorization or order of, or make any filing or registration with, any court
        or
        governmental agency in order for it to execute, deliver or perform any of
        its
        obligations under this Agreement or to purchase the Shares or acquire the
        Warrants in accordance with the terms hereof, provided that for purposes
        of the
        representation made in this sentence, the Investor is assuming and relying
        upon
        the accuracy of the relevant representations and agreements of the Company
        herein.

       

      
        
           

        

        
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      2.7. Information
        on Company.
        The
        Investor has been furnished with or has had access at the EDGAR Website of
        the
        Commission to the Company's Form 10-KSB for the year ended December 31, 2005
        as
        filed with the Commission, together with all subsequently filed Forms 10-QSB,
        8-K, and filings made with the Commission available at the EDGAR website
        (hereinafter referred to collectively as the "SEC
        Reports").
        In
        addition, the Investor has received in writing from the Company such other
        information concerning its operations, financial condition and other matters
        as
        the Investor has requested in writing (such other information is collectively,
        the "Other
        Written Information"),
        and
        considered all factors the Investor deems material in deciding on the
        advisability of investing in the securities. The
        Investor has had full opportunity to conduct, and has conducted, a complete
        and
        thorough due diligence investigation of the Company, and such opportunity
        has
        been made available to the Investor’s professional representative(s) to ask
        questions of and receive answers from representatives of the Company concerning
        the Company and its financial condition and prospects, as well as request
        additional information necessary to verify the accuracy of the SEC Reports
        and
        Other Written Information provided to Investor. The foregoing, however, does
        not
        limit or modify the representations and warranties of the Company contained
        in
        this Agreement or the right of Investor to rely thereon.

       

      2.8. Information
        on Investor.
        The
        Investor is, and will be at the time of the issuance of the Shares and the
        Warrants, an "accredited investor", as such term is defined in Regulation
        D
        promulgated by the Commission under the 1933 Act, is experienced in investments
        and business matters, has made investments of a speculative nature and has
        purchased securities of United States publicly-owned companies in private
        placements in the past and, with its representatives, has such knowledge
        and
        experience in financial, tax and other business matters as to enable the
        Investor to utilize the information made available by the Company to evaluate
        the merits and risks of and to make an informed investment decision with
        respect
        to the proposed purchase, which represents a speculative investment. The
        Investor has the authority and is duly and legally qualified to purchase
        and own
        the Shares and the Warrants. The Investor is able to bear the risk of such
        investment for an indefinite period and to afford a complete loss thereof.
        The
        information set forth on the signature page hereto regarding the Investor
        is
        accurate.  

       

      2.9. Purchase
        of Shares and Receipt
        of Warrants.
        The
        Investor will purchase the Shares and receive the Warrants as principal for
        his
        own account for investment only and not with a view toward, or for resale
        in
        connection with, the public sale or any distribution thereof.

       

      
        
           

        

        
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      2.10. Compliance
        with Securities Act.
        The
        Investor understands and agrees that the Shares and the Warrants have not
        been
        registered under the 1933 Act or any applicable state securities laws, by
        reason
        of their issuance in a transaction that does not require registration under
        the
        1933 Act (based in part on the accuracy of the representations and warranties
        of
        Investor contained herein), and that such securities must be held indefinitely
        unless a subsequent disposition is registered under the 1933 Act or any
        applicable state securities laws or is exempt from
        such
        registration.
        Resales
        of the securities by the Investor will be made in compliance with all applicable
        securities laws.

       

      2.11. Communication
        of Offer.
        The
        offer to sell the securities was directly communicated to the Investor by
        the
        Company. At no time was the Investor presented with or solicited by any leaflet,
        newspaper or magazine article, radio or television advertisement, or any
        other
        form of general advertising or solicited or invited to attend a promotional
        meeting otherwise than in connection and concurrently with such communicated
        offer.

      

      2.12. Confidentiality/Public
        Announcement.
        From the
        date of this Agreement and until the Company makes a public announcement
        of the
        transactions contemplated by this Agreement by filing a Form 8-K, Investor
        agrees he will not disclose publicly or privately the nature of the transactions
        contemplated under this Agreement unless expressly agreed to in writing by
        the
        Company, or only to the extent required by law.

       

      2.13. No
        Governmental Review.
        The
        Investor understands that no United States federal or state agency or any
        other
        governmental or state agency has passed on or made recommendations or
        endorsement of the securities or the suitability of the investment in the
        securities nor have such authorities passed upon or endorsed the merits of
        the
        offering of the securities.

       

      2.14.
        No
        Market Manipulation.
        The
        Investor has not taken, and will not take, directly or indirectly, any action
        designed to, or that might reasonably be expected to, cause or result in
        stabilization or manipulation of the price of the Common Stock to facilitate
        the
        sale or resale of the securities or affect the price at which the securities
        may
        be issued or resold.

      

      2.15.
        Short
        Position and Short Sales.
        The
        Investor covenants that neither he nor any of his affiliates will engage
        in any
        illegal short sales of or illegal hedging transactions with respect to the
        Common Stock.

      

      2.16 Restricted
        Securities.
        The
        Investor understands
        that the securities have not been registered under the 1933 Act and the
        Investor will
        not
        sell, offer to sell, assign, pledge, hypothecate or otherwise transfer any
        of
        the securities unless pursuant to an effective registration statement under
        the
        1933 Act. Notwithstanding anything to the contrary contained in this Agreement,
        the
        Investor
        may
        transfer (without restriction but with the need for an opinion of counsel)
        the
        securities to its Affiliates (as defined below) provided that each such
        Affiliate is an “accredited investor” under Regulation D and such Affiliate
        agrees to be bound by the terms and conditions of this Agreement. For the
        purposes of this Agreement, an “Affiliate”
        of
        any
        person or entity means any other person or entity directly or indirectly
        controlling, controlled by or under direct or indirect common control with
        such
        person or entity. Affiliate includes each subsidiary of the Company. For
        purposes of this definition, “control”
        means
        the
        power to direct the management and policies of such person or firm, directly
        or
        indirectly, whether through the ownership of voting securities, by contract
        or
        otherwise.

       

      
        
           

        

        
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      2.17. Survival.
        The
        foregoing representations and warranties shall survive for a period of two
        years
        from the date hereof.

      

      ARTICLE
        3.

      REPRESENTATIONS
        AND WARRANTIES OF THE COMPANY

      

      3.1. Organization
        of the Company.
        The
        Company is a corporation duly incorporated and existing in good standing
        under
        the laws of the State of Nevada and has all requisite corporate authority
        to own
        its properties and to carry on its business as now being conducted.

      

      3.2. Authority.
        (i)
        The
        Company has the requisite corporate power and corporate authority to enter
        into
        and perform its obligations under this Agreement and to issue the Shares,
        the
        Warrants and the Warrant Shares pursuant to their respective terms, (ii)
        the
        execution, issuance and delivery of the this Agreement, the Warrants by the
        Company and the consummation by it of the transactions contemplated thereby
        have
        been duly authorized by all necessary corporate action and no further consent
        or
        authorization of the Company or its Board of Directors or stockholders is
        required, and (iii)
        this
        Agreement and the Warrants have been duly executed and delivered by the Company
        and shall constitute valid and binding obligations of the Company enforceable
        against the Company in accordance with their terms, except as such
        enforceability may be limited by applicable bankruptcy, insolvency, or similar
        laws relating to, or affecting generally the enforcement of, creditors’ rights
        and remedies or by other equitable principles of general application. The
        Company has duly and validly authorized and reserved for issuance shares
        of
        Common Stock sufficient in number for the conversion of the exercise of the
        Warrants. The Company further acknowledges that its obligation to issue Warrant
        Shares upon exercise of the Warrants in accordance with this Agreement is
        absolute and unconditional regardless of the dilutive effect that such issuance
        may have on the ownership interests of other stockholders of the
        Company. 

      

      3.3. Common
        Stock.
        The
        Company has registered its Common Stock pursuant to Section 12(b)
        or
(g)
        of the
        Exchange Act and is in full compliance with all reporting requirements of
        the
        Exchange Act, and the Company is in compliance with all requirements for
        the
        continued listing or quotation of its Common Stock, and such Common Stock
        is
        currently listed or quoted on, the Principal Market. As of the date hereof,
        the
        Principal Market is the OTC Bulletin Board and the Company has not received
        any
        notice regarding, and to its knowledge there is no threat of, the termination
        or
        discontinuance of the eligibility of the Common Stock for such posting or
        listing.

      

      3.4. SEC
        Documents.
        The
        SEC
        Reports contain all material information relating to the Company and its
        operations and financial condition as of their respective dates which
        information is required to be disclosed therein
        and do
        not contain any untrue statement of a material fact or omit to state a material
        fact necessary in order to make the statements contained therein not misleading
        in light of the circumstances under which they were made.
        Since
        the date of the financial statements included in the SEC Reports, there has
        been
        no material adverse event relating to the Company's business, financial
        condition or affairs not disclosed in the SEC Reports. The SEC Reports do
        not
        contain any untrue statement of a material fact.

       

      
        
           

        

        
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      3.5. Exemption
        from Registration; Valid Issuances.
        Subject
        to the accuracy of the Investor’s representations in Article 2, the sale of the
        Shares and the Warrants will not require registration under the Securities
        Act
        and/or any applicable state securities law (other than any SEC, Principal
        Market
        or state securities filings that may be required to be made by the Company
        subsequent to closing and any registration statement that may be filed pursuant
        hereto). When issued and paid for in accordance with the Warrants, the Warrant
        Shares will be duly and validly issued, fully paid, and non-assessable. Neither
        the sales of the Shares and the Warrants pursuant to, nor the Company’s
        performance of its obligations under this Agreement and the Warrants will
        (i)
        result
        in the creation or imposition by the Company of any liens, charges, claims
        or
        other encumbrances upon the Shares, the Warrants or the Warrant Shares, except
        as contemplated herein, any of the assets of the Company, or (ii)
        entitle
        the holders of outstanding capital shares to preemptive or other rights to
        subscribe for or acquire the capital shares or other securities of the Company.
        None of the securities shall subject the Investor to personal liability to
        the
        Company or its creditors by reason of the possession thereof.

      

      3.6. No
        Directed Selling, General Solicitation or Advertising in Regard to this
        Transaction.
        Neither
        the Company nor any of its affiliates nor, to the knowledge of the Company,
        any
        person acting on its or their behalf (i)
        has
        conducted or will conduct any general solicitation (as that term is used
        in Rule
502(c)
        of
        Regulation D)
        or
        general advertising with respect to the sale of the Shares and the Warrants,
        or
(ii)
        has made
        or will make any offers or sales of any security or solicited any offers
        to buy
        any security under any circumstances that would require registration of the
        sale
        of the securities under the Securities Act.

      

      3.7. No
        Conflicts.
        The
        execution, delivery and performance of this Agreement and the consummation
        by
        the Company of the transactions contemplated hereby or relating hereto do
        not
        and will not (i) result in a violation of the Company’s charter documents or
        bylaws or other organizational documents or (ii) conflict with, or constitute
        a
        default (or an event which with notice or lapse of time or both would become
        a
        default) under, or give to others any rights of termination, amendment,
        acceleration or cancellation of any agreement, indenture or instrument or
        obligation to which the Company is a party or by which its properties or
        assets
        are bound, or result in a violation of any law, rule, or regulation, or any
        order, judgment or decree of any court or governmental agency applicable
        to the
        Investor or its properties (except for such conflicts, defaults and violations
        as would not, individually or in the aggregate, have a material adverse effect
        on the Company). The Company is not required to obtain any consent,
        authorization or order of, or make any filing or registration with, any court
        or
        governmental agency in order for it to execute, deliver or perform any of
        its
        obligations under this Agreement sell the Warrants in accordance with the
        terms
        hereof, provided that for purposes of the representation made in this sentence,
        the Company is assuming and relying upon the accuracy of the relevant
        representations and agreements of the Investor herein.

       

      
        
           

        

        
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      3.8. No
        Material Adverse Change.
        Since
        December 31, 2005 no material adverse effect has occurred or exists with
        respect
        to the Company, except as disclosed in the SEC Reports filed prior to the
        date
        hereof and available on EDGAR.

      

      3.9. Litigation
        and Other Proceedings.
        Except
        as disclosed in the SEC Reports, there are no lawsuits or proceedings pending
        or, to the knowledge of the Company, threatened, against the Company, nor
        has
        the Company received any written or oral notice of any such action, suit,
        proceeding or investigation, which could reasonably be expected to have a
        material adverse effect. Except as set forth in the SEC Reports, no judgment,
        order, writ, injunction or decree or award has been issued by or, to the
        knowledge of the Company, requested of any court, arbitrator or governmental
        agency which could result in a material adverse effect. There is no action,
        proceeding or investigation by the Company currently pending or that the
        Company
        intends to initiate.

      

      3.10. No
        Misleading or Untrue Communication.
        The
        Company and, to the knowledge of the Company, any person representing the
        Company, or any other person selling or offering to sell the Warrants in
        connection with the transaction contemplated by this Agreement, have not
        made,
        at any time, any oral communication in connection with the offer or sale
        of the
        same which, together with all such communications, including the SEC Reports,
        taken as a whole, contained any untrue statement of a material fact or omits
        to
        state a material fact necessary in order to make the statements contained
        herein
        or therein not misleading in light of the circumstances under which they
        were
        made.

      

      3.11 Reservation
        of Common Stock.
        As of
        the date hereof, the Company has reserved and the Company shall continue
        to
        reserve and keep available at all times shares of Common Stock for the purpose
        of enabling the Company to issue the Warrant Shares pursuant to any exercise
        of
        the Warrants in an amount not less than the number needed to provide for
        the
        issuance of Warrant Shares, as may be adjusted from time to time. The Company
        further agrees that if at any time the number of shares of Common Stock
issuable
        upon
        conversion of the Warrants would cause the Company to be obligated to issue
        a
        number of shares of Common Stock in excess of its authorized capital (after
        taking into account all other capital shares equivalents then existing),
        it
        shall promptly commence all necessary corporate and stockholder action necessary
        to increase its authorized capital so as to eliminate the aforesaid
        condition.

      

      3.12. Listing
        of Common Stock.
        The
        Company hereby agrees to maintain the listing or quotation of the Common
        Stock
        on a principal market, and as soon as required by the rules of the principal
        market to list the Shares and the Warrant Shares on the principal market.
        The
        Company further agrees, if the Company applies to have the Common Stock traded
        on any other principal market, it will include in such application the Shares
        and the Warrant Shares, and will take such other action as is necessary or
        desirable in the opinion of the Investor to cause the Shares and the Warrant
        Shares to be listed on such other principal market as promptly as possible.
        The
        Company will take all action necessary to continue the listing and trading
        of
        its Common Stock on a principal market and will comply in all respects with
        the
        Company’s reporting, filing and other obligations under the bylaws or rules of
        the principal market. 

       

      
        
           

        

        
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      3.12. Exchange
        Act Registration.
        The
        Company will cause its Common Stock to continue to be registered under Section
        12(b)
        or
(g)
        of the
        Exchange Act, will use its best efforts to comply in all respects with its
        reporting and filing obligations under the Exchange Act.

      

      3.13. Corporate
        Existence; Conflicting Agreements.
        The
        Company will take all steps necessary to preserve and continue the corporate
        existence of the Company. The Company shall not enter into any agreement,
        the
        terms of which agreement would restrict or impair the right or ability of
        the
        Company to perform any of its obligations under this Agreement or any of
        the
        other Transaction Documents.

      

      3.14. Issuance
        of Shares and Warrant Shares.
        The
        sale of the Shares and the Warrants and the issuance of the Warrant Shares
        pursuant to exercise of the Warrants shall be made in accordance with the
        provisions and requirements Section 4(2)
        or
        Regulation D
        and any
        applicable state securities law. The Company shall make any necessary SEC
        and
“blue sky” filings required to be made by the Company in connection with the
        sale of such securities to the Investor as required by all applicable
        laws.

      

      ARTICLE
        4.

      LEGENDS

      

       

      4.1 Shares
        Legend.
        The
        Shares and the Warrant Shares shall bear the following or similar
        legend:

       

      "THE
        SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
        SECURITIES ACT OF 1933, AS AMENDED OR APPLICABLE STATE SECURITIES LAWS. THESE
        SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
        ABSENCE
        OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT OR ANY
        APPLICABLE STATE SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY
        TO TXP CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED."

       

      

      (i) Warrants
        Legend.
        The
        Warrants shall bear the following or
        similar legend:

      

      "THIS
        WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
        NOT
        BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR APPLICABLE
        STATE
        SECURITIES LAWS. THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE
        OF
        THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
        THE
        ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SAID
        ACT
        OR ANY APPLICABLE STATE SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY
        SATISFACTORY TO TXP CORPORATION THAT SUCH REGISTRATION IS NOT
        REQUIRED."

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      

      ARTICLE
        5.

      REGISTRATION
        RIGHTS

      

      5.1
         Mandatory
        Registration.
        The
        Company shall prepare, and, as soon as practicable, but in no event later
        than
December
        15, 2006 (the
        “Scheduled
        Filing Date”),
        file
        with the United States Securities and Exchange Commission (the “SEC”)
        a
        registration statement on Form SB-2 (the “Registration
        Statement”)
        covering the resale of all of the Shares and the Warrant Shares. In the event
        that Form SB-2 is unavailable for such registration, the Company shall use
        such
        other form as is available for such registration. The Registration Statement
        prepared pursuant hereto shall register for resale that number of shares
        of
        Common Stock equal to the number of Shares and Warrant Shares as of the
        Scheduled Filing Date. The Company shall use its best efforts to respond
        to any
        comments issued by the SEC with respect to the Registration Statement as
        soon as
        practicable after receipt of such comments and shall use its best efforts
        to
        cause the Registration Statement to be declared effective by the SEC as soon
        as
        practicable, but no later than ninety (90) days after the Scheduled Filing
        Date
        (the “Scheduled
        Effectiveness Date”).
        

       

      5.2 Non-Registration
        Event.
        The
        Company and the Investor agree that the Investor will suffer damages if the
        Registration Statement is not declared effective by the SEC by the Scheduled
        Effectiveness Date (a “Non-Registration
        Event”)
        and it
        would not be feasible to ascertain the extent of such damages with precision.
        Accordingly, if the Registration Statement is not declared effective on or
        before the Scheduled Effectiveness Date, then the Company shall deliver to
        the
        Investor, as liquidated damages, an amount equal to one percent (1%) for
        each
        thirty (30) days or part thereof of the Purchase Price for the first sixty
        (60)
        days after the occurrence of a Non-Registration Event. If there is an ongoing
        and uncured Non-Registration Event (an “Ongoing
        Non-Registration Event”)
        during
        the period beginning sixty one (61) days after the Non-Registration Event,
        then
        the Company shall deliver to the Investor, as liquidated damages, an amount
        equal to two percent (2%) for each thirty (30) days or part thereof of the
        Purchase Price after the occurrence of an Ongoing Non-Registration Event.
        Notwithstanding the foregoing, Liquidated Damages shall only accrue during
        a
        Non-Registration Event or Ongoing Non-Registration Event until twelve (12)
        months from the Closing Date. The Company must pay the Liquidated Damages
        in
        cash or at the Company’s election with shares of Common Stock valued at the
        closing bid price of the Common Stock on the first trading day of each thirty
        day or shorter period for which liquidated damages are payable.
        Notwithstanding the foregoing, the Company shall not be liable to the Investor
        under this Section 5.2 for any events or delays occurring as a consequence
        of
        the acts or omissions of the Investor contrary to the obligations undertaken
        by
        Investor in this Agreement. Liquidated Damages will not accrue nor be payable
        pursuant to this Section 5.2 nor will a Non-Registration Event be deemed
        to have
        occurred for times during which Securities are transferable by the Investor
        pursuant to Rule 144(k) under the 1933 Act.

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      

      5.3 Piggy-Back
        Registrations.
        If, at
        any time prior to the expiration of the Registration Period (as hereinafter
        defined) that there
        is
        not an effective Registration Statement covering all of the Shares and the
        Warrant
        Shares,
        the
        Company proposes to file with the SEC a Registration Statement for its own
        account or the account of others under the 1933 Act of any of its securities
        (other than a Registration Statement on Form S-4 or Form S-8 (or their
        equivalents at such time) relating to securities to be issued solely in
        connection with any acquisition of any entity or business or equity securities
        issuable in connection with stock option or other employee benefit plans),
        the
        Company shall promptly send to the Investor written notice of the Company's
        intention to file a Registration Statement and of the Investor's rights under
        this Section 5.3 and, if within five (5) days after receipt of such notice,
        the
        Investor shall so request in writing, the Company shall include in such
        Registration Statement all or any part of the Shares and the Warrant Shares
        the
        Investor requests to be registered for resale, subject to the priorities
        set
        forth in this Section 5.3. No right to registration of the Shares and the
        Warrant Shares under this Section 5.3 shall be construed to limit any
        registration required under Section 5.1. The obligations of the Company under
        this Section 5.2 may be waived by the Investor. In the event that the
        Registration Statement being filed by the Company under this Section 5.3
        is for
        an underwritten offering, the Investor shall, unless otherwise agreed to
        by the
        Company, offer and sell the Shares and the Warrant Shares in an underwritten
        offering using the same underwriter or underwriters and, subject to the
        provisions of this Agreement, on the same terms and conditions as other shares
        of Common Stock included in such underwritten offering. If the managing
        underwriter(s) advise the Company, in writing, that in their reasonable good
        faith opinion, marketing or other factors dictate that a limitation on the
        number of shares of Common Stock which may be included in the Registration
        Statement is necessary to facilitate and not adversely affect the proposed
        offering, then the Company shall include in such registration: 

      

      (1) 
        first,
        all securities the Company proposes to sell for its own account;

      

      (2) second,
        all of the securities the Investor requests to be registered for his account;
        and

      

      (3) third,
        up
        to the full number of securities proposed to be registered for the account
        of
        the holders of securities entitled to inclusion of their securities in the
        Registration Statement by reason of demand or mandatory registration
        rights.

      

      5.4
         The
        Company shall keep each of the Registration Statement required to be filed
        hereunder effective pursuant to Rule 415 at all times until (i) the date
        as of
        which the Investor may sell all of the Shares and the Warrant Shares covered
        by
        such Registration Statement pursuant to Rule 144(k) promulgated under the
        1933
        Act (or successor thereto) or (ii) the date on which (A) the Investor shall
        have
        sold all of the Shares and the Warrant Shares covered by such Registration
        Statement and (B) none of the Shares and the Warrants are outstanding (the
        "Registration
        Period"),
        each
        of which Registration Statements (including any amendments or supplements
        thereto and prospectuses contained therein) shall not contain any untrue
        statement of a material fact or omit to state a material fact required to
        be
        stated therein, or necessary to make the statements therein, in light of
        the
        circumstances in which they were made, not misleading. 

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      

      5.5 The
        Company shall prepare and file with the SEC such amendments (including
        post-effective amendments) and supplements to a Registration Statement and
        the
        prospectus used in connection with such Registration Statement, which prospectus
        is to be filed pursuant to Rule 424 promulgated under the 1933 Act, as may
        be
        necessary to keep such Registration Statement effective at all times during
        the
        Registration Period, and, during such period, comply with the provisions
        of the
        1933 Act with respect to the disposition of all the Shares and the Warrant
        Shares covered by such Registration Statement until such time as all of such
        Shares and Warrant Shares shall have been disposed of in accordance with
        the
        intended methods of disposition by the Investor as set forth in such
        Registration Statement. 

      

      5.6 The
        Investor agrees that the Company shall not be precluded from registering
        any
        additional shares of its Common Stock underlying securities of the Company
        in
        the Registration Statement.

      

      5.7 All
        expenses incurred in connection with
        registrations, filings, or qualifications pursuant to Article
        5, including all registration, filing, and qualification fees; printers’ and
        accounting fees; fees and disbursements of counsel for the Company
        shall be
        borne and paid by the Company. 

      

      ARTICLE
        6.

      GENERAL
        PROVISIONS

       

      6.1 Specific
        Performance. The
        parties hereto acknowledge and agree that the breach of this Agreement would
        cause irreparable damage to the non-breaching parties and that the non-breaching
        parties will not have an adequate remedy at law. Therefore, the obligations
        of
        each of the parties under this Agreement, shall be enforceable by a decree
        of
        specific performance issued by any court of competent jurisdiction, and
        appropriate injunctive relief may be applied for and granted in connection
        therewith. Such remedies shall, however, be cumulative and not exclusive
        and
        shall be in addition to any other remedies which any party may have under
        this
        Agreement or otherwise.

       

      6.2 Further
        Assurances. The
        parties hereto each agree to execute and deliver such other documents or
        agreements and to take such other action as may be reasonably necessary or
        desirable for the implementation of this Agreement and the consummation of
        the
        transactions contemplated hereby.

       

      6.3 Governing
        Law; Venue.
        This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of Texas. Venue.
        The
        parties (a) hereby irrevocably and unconditionally submit to the jurisdiction
        of
        the state and federal courts sitting in Dallas County, Texas for the purpose
        of
        any suit, action or other proceeding arising out of or based upon this
        Agreement, (b) agree not to commence any suit, action or other proceeding
        arising out of or based upon this Agreement except in the state and federal
        courts sitting in Dallas County, Texas, and (c) hereby waive, and agree not
        to
        assert, by way of motion, as a defense, or otherwise, in any such suit, action
        or proceeding, any claim that it is not subject personally to the jurisdiction
        of the above-referenced courts, that its property is exempt or immune from
        attachment or execution, that the suit, action or proceeding is brought in
        an
        inconvenient forum, that the venue of the suit, action or proceeding is improper
        or that this Agreement or the subject matter hereof may not be enforced in
        or by
        such court.

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      6.4 Headings. Section
        headings of this Agreement are for reference purposes only and are to be
        given
        no effect in the construction or interpretation of this Agreement.

       

      6.5 Binding
        Effect. This
        Agreement is irrevocable and shall be binding upon and inure to the benefit
        of
        the parties and their respective successors and permitted assigns. 

       

      6.6 Counterparts.
        This
        Agreement may be executed in counterparts, each of which when executed by
        any
        party will be deemed to be an original and all of which counterparts will
        together constitute one and the same Agreement. Delivery of executed copies
        of
        this Agreement by telecopier will constitute proper delivery, provided that
        originally executed counterparts are delivered to the parties within a
        reasonable time thereafter.

       

      6.7 Expenses.
        Each
        party shall pay its own expenses incident to the negotiation, preparation
        and
        performance of this Agreement and the transactions contemplated hereby,
        including all fees and expenses of its counsel and accountants for all
        activities of such counsel and accountants undertaken pursuant to this
        Agreement, whether or not the transactions contemplated hereby are
        consummated.

       

      6.8 Amendments;
        Waivers.
        This
        Agreement may not be amended or modified, nor may compliance with any condition
        or covenant set forth herein be waived, except by a writing duly and validly
        executed by Investor and the Company, or, in the case of a waiver, the party
        waiving compliance. No delay on the part of any party in exercising any right,
        power or privilege hereunder shall operate as a waiver thereof, nor shall
        any
        waiver on the part of any party of any such right, power or privilege, or
        any
        single or partial exercise of any such right, power or privilege, preclude
        any
        further exercise thereof or the exercise of any other such right, power or
        privilege.

       

      5.10 Notices.
        All
        notices, requests, and other communications given or made pursuant to this
        Agreement shall be in writing and shall be deemed effectively given,
        delivered and received
        (i) upon
        personal delivery to the party to be notified; (ii) when sent by confirmed
        electronic mail or facsimile if sent during normal business hours of the
        recipient, and if not so confirmed, then on the next business day; (iii)
        five
        (5) days after having been sent by registered or certified mail, return receipt
        requested, postage prepaid; or (iv) one (1) business
        day
        after the
        business
        day of
        deposit
        with a nationally recognized overnight courier, specifying next-day delivery,
        with written verification of receipt. All communications shall be sent to
        the
        respective parties at their addresses as set forth on the
        signature page hereto
        or
        to
        such
        email address, facsimile number, or address as subsequently modified by written
        notice given in accordance with this Section 5.10. 

       

      [Remainder
        of page intentionally left blank.]

      
        
           

        

        
          13

          
            

          

        

         

      

       

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

       

      
        	 	 	 
	 	TXP CORPORATION
	 
 	 
 	 
 
	
              	By:  	/s/ Michael
                Shores
	 	
                
Name:
                Michael Shores
	 	Title: Chief Executive
                Officer

      

      
        	 	 	 
	 	 
	 	
                KUEKENHOF
                  EQUITY FUND, L.P. 

              
	 	 
	 	
                By: KUEKENHOF CAPITAL MANAGEMENT,
                  

                LLC,
                  its General Partner 

              
	 
 	 
 	 
 
	
              	By:  	/s/ Michael
                James
	 	
                
Name:
                Michael James
	 	
              

      

       

      
        
           

        

        
          14

          
            

          

        

         

      

      Exhibit
        “c”

       

      CONFIDENTIAL
        INVESTOR QUESTIONNAIRE

       

      The
        Subscriber represents and warrants that he, she or it comes within one category
        marked below, and that for any category marked, he, she or it has truthfully
        set
        forth, where applicable, the factual basis or reason the Subscriber comes
        within
        that category. ALL INFORMATION IN RESPONSE TO THIS SECTION WILL BE KEPT STRICTLY
        CONFIDENTIAL. The undersigned agrees to furnish any additional information
        which
        the Company deems necessary in order to verify the answers set forth
        below.

       

      Category
        A _____     The
        undersigned is an individual (not a partnership, corporation, etc.) whose
        individual net worth, or joint net worth with his or her spouse, presently
        exceeds $1,000,000.

      

      Explanation.
        In calculating net worth you may include equity in personal property and
        real
        estate, including your principal residence, cash, short-term investments,
        stock
        and securities. Equity in personal property and real estate should be based
        on
        the fair market value of such property less debt secured by such
        property.

      

      Category
        B _____     The
        undersigned is an individual (not a partnership, corporation, etc.) who had
        an
        income in excess of $200,000 in each of the two most recent years, or joint
        income with his or her spouse in excess of $300,000 in each of those years
        (in
        each case including foreign income, tax exempt income and full amount of
        capital
        gains and losses but excluding any income of other family members and any
        unrealized capital appreciation) and has a reasonable expectation of reaching
        the same income level in the current year.

      

      Category
        C _____     The
        undersigned is a director or executive officer of the Company which is issuing
        and selling the Securities.

      

      Category
        D _____     The
        undersigned is a bank; a savings and loan association; insurance company;
        registered investment company; registered business development company; licensed
        small business investment company (“SBIC”); or employee benefit plan within the
        meaning of Title 1 of ERISA and (a) the investment decision is made by a
        plan
        fiduciary which is either a bank, savings and loan association, insurance
        company or registered investment advisor, or (b) the plan has total assets
        in
        excess of $5,000,000 or (c) is a self directed plan with investment decisions
        made solely by persons that are accredited investors. (describe
        entity)

       

      _____________________________________________________________________________________________________

      
        _____________________________________________________________________________________________________

      

      

      Category
        E _____     The
        undersigned is a private business development company as defined in section
        202(a)(22) of the Investment Advisors Act of 1940. (describe entity)

      
        _____________________________________________________________________________________________________

        
          _____________________________________________________________________________________________________

        

      

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

       

      Category
        F _____     The
        undersigned is either a corporation, partnership, Massachusetts business
        trust,
        or non-profit organization within the meaning of Section 501(c)(3) of the
        Internal Revenue Code, in each case not formed for the specific purpose of
        acquiring the Common Stock and with total assets in excess of $5,000,000.
        (describe entity)

      
        _____________________________________________________________________________________________________

      

      
        _____________________________________________________________________________________________________

      

       

      Category
        G _____     The
        undersigned is a trust with total assets in excess of $5,000,000, not formed
        for
        the specific purpose of acquiring the Securities, where the purchase is directed
        by a “sophisticated investor” as defined in Regulation 506(b)(2)(ii) under the
        Act.

       

      

      Category
        H _____     The
        undersigned is an entity (other than a trust) in which all of the equity
        owners
        are “accredited investors” within one or more of the above categories. If
        relying upon this Category alone, each equity owner must complete a separate
        copy of this Agreement. (describe entity)

      
        _____________________________________________________________________________________________________

      

      
        _____________________________________________________________________________________________________

      

       

      Category
        I _____ 
             The
        undersigned is not within any of the categories above and is therefore not
        an
        accredited investor.

       

      The
        undersigned agrees that the undersigned will notify the Company at any time
        on
        or prior to the Closing Date in the event that the representations and
        warranties in this Agreement shall cease to be true, accurate and
        complete.

       

      6.9 SUITABILITY
        (please
        answer each question)

       

      (a) For
        an
        individual Subscriber, please describe your current employment, including
        the
        company by which you are employed and its principal business:

      ___________________________________________________________________________________________

      
        ___________________________________________________________________________________________

      

      
        ___________________________________________________________________________________________

        
          ___________________________________________________________________________________________

        

      

       

      (b) For
        an
        individual Subscriber, please describe any college or graduate degrees held
        by
        you:

      
        ___________________________________________________________________________________________

      

      
        ___________________________________________________________________________________________

      

      
        ___________________________________________________________________________________________

      

      
        ___________________________________________________________________________________________

         

      

      (c) For
        all
        Subscribers, please list types of prior investments:

      
        ___________________________________________________________________________________________

      

      
        ___________________________________________________________________________________________

      

      
        ___________________________________________________________________________________________

      

      ___________________________________________________________________________________________

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

       

      (d) For
        all
        Subscribers, please state whether you have participated in other private
        placements
        before:

       

      YES_______   NO_______

       

      (e) If
        your
        answer to question (d) above was “YES”, please indicate frequency of such prior
        participation in private
        placements
        of:

       

      
        	 	
                Public

                Companies

              	 	
                Private

                Companies

              	 	
                Public
                  or Private VoIP or other

                Communications
                  Companies

              
	
                Frequently

              	
                 

              	 	
                 

              	 	 
	
                Occasionally

              	
                 

              	 	
                 

              	 	 
	
                Never

              	
                 

              	 	
                 

              	 	 

      

      

      (f) For
        individual Subscribers, do you expect your current level of income to
        significantly decrease in the foreseeable future:

       

      YES_______   NO_______

       

      (g) For
        trust, corporate, partnership and other institutional Subscribers, do you
        expect
        your total assets to significantly decrease in the foreseeable future:

       

      YES_______   NO_______

       

      (h) For
        all
        Subscribers, do you have any other investments or contingent liabilities
        which
        you reasonably anticipate could cause you to need sudden cash requirements
        in
        excess of cash readily available to you: 

       

      YES_______   NO_______

       

      (i) For
        all
        Subscribers, are you familiar with the risk aspects and the non-liquidity
        of
        investments such as the securities for which you seek to subscribe?

       

      YES_______   NO_______

       

      (j) 
        For all
        Subscribers, do you understand that there is no guarantee of financial return
        on
        this investment and that you run the risk of losing your entire
        investment?

       

      YES_______   NO_______

       

      6.10 MANNER
        IN WHICH TITLE IS TO BE HELD.
        (circle
        one)

       

      (a) Individual
        Ownership

      (b) Community
        Property

      (c) Joint
        Tenant with Right of  Survivorship
        (both parties must
        sign)

      (d) Partnership*

      (e) Tenants
        in Common

      (f) Company*

       

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

       

      (g) Trust*

      (h) Other*

       

      *If
        Securities are being subscribed for by an entity, the attached Certificate
        of
        Signatory must also be completed.

       

      6.11 NASD
        AFFILIATION.

       

      Are
        you
        affiliated or associated with an NASD member firm (please check
        one):

       

      Yes
        _________  No
        __________

       

      If
        Yes,
        please describe:

      _____________________________________________________________________________________

      _____________________________________________________________________________________

      _____________________________________________________________________________________

      

      *If
        Subscriber is a Registered Representative with an NASD member firm, have
        the
        following acknowledgment signed by the appropriate party:

       

      The
        undersigned NASD member firm acknowledges receipt of the notice required
        by
        Article 3, Sections 28(a) and (b) of the Rules of Fair Practice.

       

      _________________________________

      Name
        of
        NASD Member Firm

      

      By:
        ______________________________

      Authorized
        Officer

      

      Date:
        ____________________________

      

      6.12 The
        undersigned is informed of the significance to the Company of the foregoing
        representations and answers contained in the Confidential Investor Questionnaire
        contained in this Article VII and such answers have been provided under the
        assumption that the Company will rely on them.

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

      
        
           

        

        
          18WARRANT

     

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

     

    TXP
      CORPORATION

     

    Warrant
      To Purchase Common Stock

    

      
        	
                Warrant
                  No.: KEF-001

              	
                Number
                  of Shares: 2,343,750

              
	
                 

              	
                 

              
	
                Date
                  of Issuance: October 11, 2006

              	
                 

              

      

    

    

    TXP
      CORPORATION, a Nevada corporation (the “Company”),
      hereby certifies that, for good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, Kuekenhof
      Equity Fund, L.P.
      (the
“Holder”),
      the
      registered holder hereof or his permitted assigns, is entitled, subject to
      the
      terms set forth below, to purchase from the Company upon surrender of this
      Warrant, at any time or times on or after the date hereof, but not after
      11:59 P.M. Eastern Time on the Expiration Date (as defined herein) Two
      Million Three Hundred Forty Three Thousand Seven Hundred Fifty (2,343,750)
      fully
      paid and nonassessable shares of Common Stock (as defined herein) of the Company
      (the “Warrant
      Shares”)
      at the
      exercise price per share provided in Section 1(b) below or as subsequently
      adjusted.

     

    Section
      1.  

     

    (a)  This
      Warrant is the common stock purchase warrant (the “Warrant”)
      issued
      pursuant to a certain Agreement (“Agreement”)
      dated
      the date hereof between the Company and the Buyer.

     

    (b)  Definitions.
      The
      following words and terms as used in this Warrant shall have the following
      meanings:

     

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

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

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

     

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

     

    (iv)  “Expiration
      Date”
means
      the date five (5) years from the Issuance Date of this Warrant or, if such
      date
      falls on a Saturday, Sunday or other day on which banks are required or
      authorized to be closed in the City of New York or the State of New York or
      on
      which trading does not take place on the Principal Exchange or automated
      quotation system on which the Common Stock is traded (a “Holiday”),
      the
      next date that is not a Holiday.

     

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

     

    (vi)  “Options”
means
      any rights, warrants or options to subscribe for or purchase Common Stock or
      Convertible Securities. 

     

    (vii)  “Other
      Securities”
means
      (i) those options and warrants of the Company issued prior to, and
      outstanding on, the Issuance Date of this Warrant, (ii) the shares of Common
      Stock issuable on exercise of such options and warrants, provided such options
      and warrants are not amended after the Issuance Date of this Warrant and
      (iii) the shares of Common Stock issuable upon exercise of this Warrant.

     

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

     

    (ix)  “Principal
      Market”
means
      the New York Stock Exchange, the American Stock Exchange, the Nasdaq National
      Market, the Nasdaq SmallCap Market, whichever is at the time the principal
      trading exchange or market for such security, or the over-the-counter market
      on
      the electronic bulletin board for such security as reported by Bloomberg or,
      if
      no bid or sale information is reported for such security by Bloomberg, then
      the
      average of the bid prices of each of the market makers for such security as
      reported in the “pink sheets” by the National Quotation Bureau,
      Inc.

     

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

     

    (xi)  “Warrant”
means
      this Warrant and all Warrants issued in exchange, transfer or replacement
      thereof. 

     

    (xii)  “Warrant
      Exercise Price”
shall
      be $0.50 or as subsequently adjusted as provided in Section 8 hereof.

     

    (xiii)  “Warrant
      Shares”
means
      the shares of Common Stock issuable at any time upon exercise of this Warrant.
      

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (c)  Other
      Definitional Provisions. 

     

    (i)  Except
      as
      otherwise specified herein, all references herein (A) to the Company shall
      be deemed to include the Company’s successors and (B) to any applicable law
      defined or referred to herein shall be deemed references to such applicable
      law
      as the same may have been or may be amended or supplemented from time to time.
      

     

    (ii)  When
      used
      in this Warrant, the words “herein”,
      “hereof”,
      and
“hereunder”
      and
      words of similar import, shall refer to this Warrant as a whole and not to
      any
      provision of this Warrant, and the words “Section”,
      “Schedule”,
      and
“Exhibit”
shall
      refer to Sections of, and Schedules and Exhibits to, this Warrant unless
      otherwise specified. 

     

    (iii)  Whenever
      the context so requires, the neuter gender includes the masculine or feminine,
      and the singular number includes the plural, and vice versa. 

     

    Section
      2.  Exercise
      of Warrant.
      

     

    Subject
      to the terms and conditions hereof, this Warrant may be exercised by the holder
      hereof then registered on the books of the Company, pro rata as hereinafter
      provided, at any time on any Business Day on or after the opening of business
      on
      such Business Day, commencing with the first day after the date hereof, and
      prior to 11:59 P.M. Eastern Time on the Expiration Date (i) by delivery of
      a written notice, in the form of the subscription notice attached as
Exhibit
      A
      hereto
      (the “Exercise
      Notice”),
      of
      such holder’s election to exercise this Warrant, which notice shall specify the
      number of Warrant Shares to be purchased, payment to the Company of an
      amount equal to the Warrant Exercise Price(s) applicable to the Warrant Shares
      being purchased, multiplied by the number of Warrant Shares (at the
      applicable Warrant Exercise Price) as to which this Warrant is being
      exercised (plus any applicable issue or transfer taxes) (the “Aggregate
      Exercise Price”)
      in
      cash or wire transfer of immediately available funds and the surrender of this
      Warrant (or an indemnification undertaking with respect to this Warrant in
      the
      case of its loss, theft or destruction) to a common carrier for overnight
      delivery to the Company as soon as practicable following such date. In lieu
      of
      exercising this Warrant for cash as specified in the preceding sentence, Holder
      may from time to time convert this Warrant, in whole or in part, as a “cashless
      exercise” into a number of Warrant Shares determined by dividing (a) the
      aggregate fair market value of the Warrant Shares or other securities otherwise
      issuable upon exercise of this Warrant minus the aggregate Warrant Exercise
      Price of such Warrant Shares by (b) the fair market value of one Warrant
      Share. 

    

    In
      the
      event of any exercise of the rights represented by this Warrant in compliance
      with this Section 2, the Company shall on or before the fifth (5th)
      Business Day following the date of receipt of the Exercise Notice, the Aggregate
      Exercise Price and this Warrant (or an indemnification undertaking with respect
      to this Warrant in the case of its loss, theft or destruction) and the receipt
      of the representations of the holder specified in Section 6 hereof, if requested
      by the Company (the “Exercise
      Delivery Documents”),
      and
      if the Common Stock is DTC eligible, credit such aggregate number of shares
      of
      Common Stock to which the holder shall be entitled to the holder’s or his
      designee’s balance account with The Depository Trust Company; provided, however,
      if the holder who submitted the Exercise Notice requested physical delivery
      of
      any or all of the Warrant Shares, or, if the Common Stock is not DTC eligible
      then the Company shall, on or before the fifth (5th)
      Business Day following receipt of the Exercise Delivery Documents, issue and
      surrender to a common carrier for overnight delivery to the address specified
      in
      the Exercise Notice, a certificate, registered in the name of the holder, for
      the number of shares of Common Stock to which the holder shall be entitled
      pursuant to such request. Upon delivery of the Exercise Notice and Aggregate
      Exercise Price referred to above the holder of this Warrant shall be deemed
      for
      all corporate purposes to have become the holder of record of the Warrant Shares
      with respect to which this Warrant has been exercised. In the case of a dispute
      as to the determination of the Warrant Exercise Price, the Closing Bid Price,
      the Company shall promptly issue to the holder the number of Warrant Shares
      that
      is not disputed and shall submit the disputed determinations or arithmetic
      calculations to the holder via facsimile within one (1) Business Day of receipt
      of the holder’s Exercise Notice. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

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

     

    (b)  Unless
      the rights represented by this Warrant shall have expired or shall have been
      fully exercised, the Company shall, as soon as practicable and in no event
      later
      than five (5) Business Days after any exercise and at its own expense, issue
      a
      new Warrant identical in all respects to this Warrant exercised except it shall
      represent rights to purchase the number of Warrant Shares purchasable
      immediately prior to such exercise under this Warrant exercised, less the number
      of Warrant Shares with respect to which such Warrant is exercised.

     

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

     

    Call
      Option of the Company.
       The
      Company shall have the option to call all or a portion of this Warrant so long
      as (i) the closing bid price of the Company’s Common Stock is trading at or
      above $0.75 for twenty (20) consecutive trading days immediately preceding
      the
      call date, and (ii) the Warrant Shares are registered under an effective
      registration statement on the call date.

     

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

     

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

     

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

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

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

     

    (d)  If
      at any
      time after the date hereof the Company shall file a registration statement,
      the
      Company shall include the Warrant Shares issuable to the holder, pursuant to
      the
      terms of this Warrant and shall maintain, so long as any other shares of Common
      Stock shall be so listed, such listing of all Warrant Shares from time to time
      issuable upon the exercise of this Warrant; and the Company shall so list on
      each national securities exchange or automated quotation system, as the case
      may
      be, and shall maintain such listing of, any other shares of capital stock of
      the
      Company issuable upon the exercise of this Warrant if and so long as any shares
      of the same class shall be listed on such national securities exchange or
      automated quotation system.

     

    (e)  The
      Company will not, by amendment of its Articles of Incorporation or through
      any
      reorganization, transfer of assets, consolidation, merger, dissolution, issue
      or
      sale of securities, or any other voluntary action, avoid or seek to avoid the
      observance or performance of any of the terms to be observed or performed by
      it
      hereunder, but will at all times in good faith assist in the carrying out of
      all
      the provisions of this Warrant and in the taking of all such action as may
      reasonably be requested by the holder of this Warrant in order to protect the
      exercise privilege of the holder of this Warrant against dilution or other
      impairment, consistent with the tenor and purpose of this Warrant. The Company
      will not increase the par value of any shares of Common Stock receivable upon
      the exercise of this Warrant above the Warrant Exercise Price then in effect,
      and (ii) will take all such actions as may be necessary or appropriate in
      order that the Company may validly and legally issue fully paid and
      nonassessable shares of Common Stock upon the exercise of this
      Warrant.

     

    (f)  This
      Warrant will be binding upon any entity succeeding to the Company by merger,
      consolidation or acquisition of all or substantially all of the Company’s
      assets.

     

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

     

    Section
      5.  Warrant
      Holder Not Deemed a Stockholder.
      Except
      as otherwise specifically provided herein, no holder, as such, of this Warrant
      shall be entitled to vote or receive dividends or be deemed the holder of shares
      of capital stock of the Company for any purpose, nor shall anything contained
      in
      this Warrant be construed to confer upon the holder hereof, as such, any of
      the
      rights of a stockholder of the Company or any right to vote, give or withhold
      consent to any corporate action (whether any reorganization, issue of stock,
      reclassification of stock, consolidation, merger, conveyance or otherwise),
      receive notice of meetings, receive dividends or subscription rights, or
      otherwise, prior to the issuance to the holder of this Warrant of the Warrant
      Shares which he or she is then entitled to receive upon the due exercise of
      this
      Warrant. In addition, nothing contained in this Warrant shall be construed
      as
      imposing any liabilities on such holder to purchase any securities (upon
      exercise of this Warrant or otherwise) or as a stockholder of the Company,
      whether such liabilities are asserted by the Company or by creditors of the
      Company. Notwithstanding this Section 5, the Company will provide the holder
      of
      this Warrant with copies of the same notices and other information given to
      the
      stockholders of the Company generally, contemporaneously with the giving thereof
      to the stockholders.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Section
      6.  Representations
      of Holder.
      The
      holder of this Warrant, by the acceptance hereof, represents that it is
      acquiring this Warrant and the Warrant Shares for his own account for investment
      only and not with a view towards, or for resale in connection with, the public
      sale or distribution of this Warrant or the Warrant Shares, except pursuant
      to
      sales registered or exempted under the Securities Act; provided, however, that
      by making the representations herein, the holder does not agree to hold this
      Warrant or any of the Warrant Shares for any minimum or other specific term
      and
      reserves the right to dispose of this Warrant and the Warrant Shares at any
      time
      in accordance with or pursuant to a registration statement or an exemption
      under
      the Securities Act. The holder of this Warrant further represents, by acceptance
      hereof, that, as of this date, such holder is an “accredited investor” as such
      term is defined in Rule 501(a)(1) of Regulation D promulgated by the
      Securities and Exchange Commission under the Securities Act (an “Accredited
      Investor”).
      Upon
      exercise of this Warrant the holder shall, if requested by the Company, confirm
      in writing, in a form satisfactory to the Company, that the Warrant Shares
      so
      purchased are being acquired solely for the holder’s own account and not as a
      nominee for any other party, for investment, and not with a view toward
      distribution or resale and that such holder is an Accredited Investor. If such
      holder cannot make such representations because they would be factually
      incorrect, it shall be a condition to such holder’s exercise of this Warrant
      that the Company receive such other representations as the Company considers
      reasonably necessary to assure the Company that the issuance of its securities
      upon exercise of this Warrant shall not violate any United States or state
      securities laws.

     

    Section
      7.  Ownership
      and Transfer.

     

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

     

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

     

    (a)  Adjustment
      of Warrant Exercise Price upon Subdivision or Combination of Common
      Stock.
      If the
      Company at any time after the date of issuance of this Warrant subdivides (by
      any stock split, stock dividend, recapitalization or otherwise) one or more
      classes of its outstanding shares of Common Stock into a greater number of
      shares, any Warrant Exercise Price in effect immediately prior to such
      subdivision will be proportionately reduced and the number of shares of Common
      Stock obtainable upon exercise of this Warrant will be proportionately
      increased. If the Company at any time after the date of issuance of this Warrant
      combines (by combination, reverse stock split or otherwise) one or more classes
      of its outstanding shares of Common Stock into a smaller number of shares,
      any
      Warrant Exercise Price in effect immediately prior to such combination will
      be
      proportionately increased and the number of Warrant Shares issuable upon
      exercise of this Warrant will be proportionately decreased. Any adjustment
      under
      this Section 8(a) shall become effective at the close of business on the
      date the subdivision or combination becomes effective.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    (b)  Distribution
      of Assets.
      If the
      Company shall declare or make any dividend or other distribution of its assets
      (or rights to acquire its assets) to holders of Common Stock, by way of return
      of capital or otherwise (including, without limitation, any distribution of
      cash, stock or other securities, property or options by way of a dividend,
      spin
      off, reclassification, corporate rearrangement or other similar transaction)
      (a
“Distribution”),
      at
      any time after the issuance of this Warrant, then, in each such
      case:

     

    (i)  any
      Warrant Exercise Price in effect immediately prior to the close of business
      on
      the record date fixed for the determination of holders of Common Stock
      entitled to
      receive the Distribution shall be reduced, effective as of the close of business
      on such record date, to a price determined by multiplying such Warrant Exercise
      Price by a fraction of which (A) the numerator shall be the Closing Sale Price
      of the Common Stock on the trading day immediately preceding such record date
      minus the value of the Distribution (as determined in good faith by the
      Company’s Board of Directors) applicable to one share of Common Stock, and (B)
      the denominator shall be the Closing Sale Price of the Common Stock on the
      trading day immediately preceding such record date; and

     

    (ii)  either
      (A) the number of Warrant Shares obtainable upon exercise of this Warrant shall
      be increased to a number of shares equal to the number of shares of Common
      Stock
      obtainable immediately prior to the close of business on the record date fixed
      for the determination of holders of Common Stock entitled to receive the
      Distribution multiplied by the reciprocal of the fraction set forth in the
      immediately preceding clause (i), or (B) in the event that the Distribution
      is
      of common stock of a company whose common stock is traded on a national
      securities exchange or a national automated quotation system, then the holder
      of
      this Warrant shall receive an additional warrant to purchase Common Stock,
      the
      terms of which shall be identical to those of this Warrant, except that such
      warrant shall be exercisable into the amount of the assets that would have
      been
      payable to the holder of this Warrant pursuant to the Distribution had the
      holder exercised this Warrant immediately prior to such record date and with
      an
      exercise price equal to the amount by which the exercise price of this Warrant
      was decreased with respect to the Distribution pursuant to the terms of the
      immediately preceding clause (i).

     

    (c)  Certain
      Events.
      If any
      event occurs of the type contemplated by the provisions of this Section 8
      but not expressly provided for by such provisions (including, without
      limitation, the granting of stock appreciation rights, phantom stock rights
      or
      other rights with equity features), then the Company’s Board of Directors will
      make an appropriate adjustment in the Warrant Exercise Price and the number
      of
      shares of Common Stock obtainable upon exercise of this Warrant so as to protect
      the rights of the holders of the Warrants; provided, except as set forth in
      section 8(d),that no such adjustment pursuant to this Section 8(f) will increase
      the Warrant Exercise Price or decrease the number of shares of Common Stock
      obtainable as otherwise determined pursuant to this Section 8.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    (d)  Notices.

     

    (i)  Immediately
      upon any adjustment of the Warrant Exercise Price, the Company will give written
      notice thereof to the holder of this Warrant, setting forth in reasonable
      detail, and certifying, the calculation of such adjustment.

     

    (ii)  The
      Company will give written notice to the holder of this Warrant at least ten
      (10)
      days prior to the date on which the Company closes its books or takes a record
      (A) with respect to any dividend or distribution upon the Common Stock,
      (B) with respect to any pro rata subscription offer to holders of Common
      Stock or (C) for determining rights to vote with respect to any Organic
      Change (as defined below), dissolution or liquidation, provided that such
      information shall be made known to the public prior to or in conjunction with
      such notice being provided to such holder.

     

    (iii)  The
      Company will also give written notice to the holder of this Warrant at least
      ten
      (10) days prior to the date on which any change, dissolution or liquidation
      will
      take place, provided that such information shall be made known to the public
      prior to or in conjunction with such notice being provided to such
      holder.

     

    Section
      9.  Purchase
      Rights; Reorganization, Reclassification, Consolidation, Merger or
      Sale.

     

    (a)  If
      at any
      time the Company grants, issues or sells any Options, Convertible Securities
      or
      rights to purchase stock, warrants, securities or other property pro rata to
      the
      record holders of any class of Common Stock (the “Purchase
      Rights”),
      then
      the holder of this Warrant 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
      Common Stock acquirable upon complete exercise of this Warrant 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 Common Stock are to be determined for the grant, issue or
      sale
      of such Purchase Rights.

     

    (b)  Any
      recapitalization, reorganization, reclassification, consolidation, merger,
      sale
      of all or substantially all of the Company’s assets to another Person or other
      transaction in each case which is effected in such a way that holders of Common
      Stock are entitled to receive (either directly or upon subsequent liquidation)
      stock, securities or assets with respect to or in exchange for Common Stock
      is
      referred to herein as an “Organic
      Change.”
Prior
      to the consummation of any (i) sale of all or substantially all of the Company’s
      assets to an acquiring Person or (ii) other Organic Change following which
      the
      Company is not a surviving entity, the Company will secure from the Person
      purchasing such assets or the successor resulting from such Organic Change
      (in
      each case, the “Acquiring
      Entity”)
      a
      written agreement (in form and substance satisfactory to the Holders) to deliver
      to Holder in exchange for the Warrants, a security of the Acquiring Entity
      evidenced by a written instrument substantially similar in form and substance
      to
      this Warrant and satisfactory to the Holder (including an adjusted warrant
      exercise price equal to the value for the Common Stock reflected by the terms
      of
      such consolidation, merger or sale, and exercisable for a corresponding number
      of shares of Common Stock acquirable and receivable upon exercise of the
      Warrants without regard to any limitations on exercise, if the value so
      reflected is less than any applicable Warrant Exercise Price immediately prior
      to such consolidation, merger or sale). Prior to the consummation of any other
      Organic Change, the Company shall make appropriate provision (in form and
      substance satisfactory to the Holder) to insure that the Holder will thereafter
      have the right to acquire and receive in lieu of or in addition to (as the
      case
      may be) the Warrant Shares immediately theretofore issuable and receivable
      upon
      the exercise of Holder’s Warrants (without regard to any limitations on
      exercise), such shares of stock, securities or assets that would have been
      issued or payable in such Organic Change with respect to or in exchange for
      the
      number of Warrant Shares which would have been issuable and receivable upon
      the
      exercise of Holder’s Warrant as of the date of such Organic Change (without
      taking into account any limitations or restrictions on the exercisability of
      this Warrant).

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

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

     

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

     

    
      	
              If
                to Holder:

            	
              Kuekenhof
                Equity Fund, L.P.

            
	
               

            	
               

            
	
               

            	
              Attention:
                Michael James

            
	
               

            	
              Telephone: 

            
	
               

            	
              Facsimile: 

            
	
               

            	
               

            
	
              If
                to the Company, to:

            	
              TXP
                Corporation

            
	
               

            	
              1299
                Commerce Drive

            
	
               

            	
              Richardson,
                TX 75081

            
	
               

            	
              Attention: Michael
                Shores

            
	
               

            	
              Telephone: (214)
                575-9300

            
	
               

            	
              Facsimile: (214)
                575-9314

            
	
               

            	
               

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
              With
                a copy to:

            	
              Sichenzia
                Ross Friedman Ference LLP

            
	
               

            	
              1065
                Avenue of the Americas

            
	
               

            	
              New
                York, NY 10018

            
	
               

            	
              Attention: Gregory
                Sichenzia, Esq.

            
	
               

            	
              Telephone: (212)
                930-9700

            
	
               

            	
              Facsimile: (212)
                930-9725

            

    

    

    If
      to a
      holder of this Warrant, to it at the address and facsimile number set forth
      on
Exhibit C
      hereto,
      with copies to such holder’s representatives as set forth on Exhibit C,
      or at
      such other address and facsimile as shall be delivered to the Company upon
      the
      issuance or transfer of this Warrant. Each party shall provide five days’ prior
      written notice to the other party of any change in address or facsimile number.
      Written confirmation of receipt (A) given by the recipient of such notice,
      consent, facsimile, waiver or other communication, (or (B) provided by a
      nationally recognized overnight delivery service shall be rebuttable evidence
      of
      personal service, receipt by facsimile or receipt from a nationally recognized
      overnight delivery service in accordance with clause (i), (ii) or (iii) above,
      respectively.

     

    Section
      12.  Date.
      The
      date of this Warrant is set forth on page 1 hereof. This Warrant, in all
      events, shall be wholly void and of no effect after the close of business on
      the
      Expiration Date, except that notwithstanding any other provisions hereof, the
      provisions of Section 8(b) shall continue in full force and effect after
      such date as to any Warrant Shares or other securities issued upon the exercise
      of this Warrant.

     

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

     

    Section
      14.  Descriptive
      Headings; Governing Law.
      The
      descriptive headings of the several sections and paragraphs of this Warrant
      are
      inserted for convenience only and do not constitute a part of this Warrant.
      The
      corporate laws of the State of Nevada shall govern all issues concerning the
      relative rights of the Company and its stockholders. All other questions
      concerning the construction, validity, enforcement and interpretation of this
      Agreement shall be governed by the internal laws of the State of Texas, without
      giving effect to any choice of law or conflict of law provision or rule (whether
      of the State of Texas or any other jurisdictions) that would cause the
      application of the laws of any jurisdictions other than the State of Texas.
      Each
      party hereby irrevocably submits to the exclusive jurisdiction of the state
      and
      federal courts sitting in Dallas County, Texas, for the adjudication of any
      dispute hereunder or in connection herewith or therewith, or with any
      transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any suit, action or proceeding, any claim
      that it is not personally subject to the jurisdiction of any such court, that
      such suit, action or proceeding is brought in an inconvenient forum or that
      the
      venue of such suit, action or proceeding is improper. Each party hereby
      irrevocably waives personal service of process and consents to process being
      served in any such suit, action or proceeding by mailing a copy thereof to
      such
      party at the address for such notices to it under this Agreement and agrees
      that
      such service shall constitute good and sufficient service of process and notice
      thereof. Nothing contained herein shall be deemed to limit in any way any right
      to serve process in any manner permitted by law. 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

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

    

    Section
      16. Automatic
      Conversion upon Expiration.
      In the
      event that, upon the Expiration Date, the fair market value of one share of
      Common Stock (or other security issuable upon the exercise hereof) is greater
      than the Warrant Exercise Price in effect on the Expiration Date, then this
      Warrant shall automatically be deemed on and as of the Business Day immediately
      prior to the Expiration Date to be exercised pursuant to the “cashless” exercise
      provision of Section 2 hereof as to all Warrant Shares (or such other
      securities) for which it shall not previously have been exercised or converted,
      and the Company shall promptly deliver a certificate representing the Warrant
      Shares Stock (or such other securities) issued upon such conversion to the
      Holder.

    

    REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

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

     

    
      	
               

            	
              TXP
                CORPORATION

            
	
               

            	
               

            	
               

            
	
               

            	
              By:

            	
              /s/
                Michael Shores  

            
	
               

            	 	
              Name: Michael
                Shores

            
	
               

            	 	
              Title: Chief
                Executive Officer

            

    

    
      
        
          1

        

        
        

      

      
        12

        
          

        

      

      
        
        

        
        

      

    

     

    EXHIBIT
      A TO WARRANT

     

    EXERCISE
      NOTICE

     

    TO
      BE EXECUTED 

    BY
      THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

     

    TXP
      CORPORATION

     

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

     

    Specify
      Method of exercise by check mark:

     

    1.
      ___ Cash
      Exercise

     

    (a)
      Payment
      of Warrant Exercise Price.
      The
      holder shall pay the Aggregate Exercise Price of $______________ to the Company
      in accordance with the terms of the Warrant. 

     

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

     

    

    Date:
      _______________ __, ______

    

    Name
      of
      Registered Holder

    

    By:
      ______________________     

    Name:
      ____________________     

    Title:
      _____________________     

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

     

    EXHIBIT
      B TO WARRANT

     

    FORM
      OF WARRANT POWER

     

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

     

    
      	 Dated: 	
                    

            	 	 	 
	 	
               

            	 	 	 	
               

            
	 	
               

            	 	 	 By:	
                    

            
	 	
               

            	 	 	 Name:	
                    

            
	 	
               

            	 	 	 Title:	
                    

            
	 	
               

            	 	 	 	
               

            

    

    

    
      
        
        

      

      
        B-1

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