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Unassociated Document

    EXHIBIT
      C 

     

    NEITHER
      THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
      BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
      MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
      OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
      EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
      SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY
      AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN
      CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
      SECURITIES.

    

    [SERIES
      A-1/SERIES A-2] COMMON STOCK PURCHASE WARRANT

    

    WILLOWTREE
      ADVISOR, INC.

     

    Warrant
      Shares: _______    Initial
      Exercise Date: November __, 2006

     

    THIS
      COMMON STOCK PURCHASE WARRANT (the “Warrant”)
      certifies that, for value received, _____________ (the “Holder”),
      is
      entitled, upon the terms and subject to the limitations on exercise and the
      conditions hereinafter set forth, at any time on or after the date hereof (the
      “Initial
      Exercise Date”)
      and on
      or prior to the close of business on the earlier of ____1 
      anniversary of the Initial Exercise Date (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from Willowtree Advisor, Inc.,
      a
      Nevada corporation (the “Company”),
      up to
      ______ shares (the “Warrant
      Shares”)
      of
      common stock, par value $.00001 per share (the “Common
      Stock”),
      of
      the Company. The purchase price of one share of Common Stock under this Warrant
      shall be equal to the Exercise Price, as defined in Section 2(b). 

     

    Section
      1. Definitions.
      Capitalized terms used and not otherwise defined herein shall have the meanings
      set forth in that certain Securities Purchase Agreement (the “Purchase
      Agreement”),
      dated
      November __, 2006, among the Company and the purchasers signatory
      thereto.

     

    
      
        

      

      1
        The five
        year anniversary of the Effective Date and 66 month anniversary of the Initial
        Exercise Date as to Series A-1 Warrants and the ten year anniversary of the
        Effective Date and 126 month anniversary of the Initial Exercise Date as
        to
        Series A-2 Warrants

    

     

    
      
        
        

      

      
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    Section
      2. Exercise.

     

    a) Exercise
      of Warrant.
      Exercise of the purchase rights represented by this Warrant may be made, in
      whole or in part, at any time or times on or after the Initial Exercise Date
      and
      on or before the Termination Date by delivery to the Company of a duly executed
      facsimile copy of the Notice of Exercise Form annexed hereto (or such other
      office or agency of the Company as it may designate by notice in writing to
      the
      registered Holder at the address of such Holder appearing on the books of the
      Company); and, within 3 Trading Days of the date said Notice of Exercise is
      delivered to the Company, the Company shall have received payment of the
      aggregate Exercise Price of the shares thereby purchased by wire transfer or
      cashier’s check drawn on a United States bank. Notwithstanding anything herein
      to the contrary, the Holder shall not be required to physically surrender this
      Warrant to the Company until the Holder has purchased all of the Warrant Shares
      available hereunder and the Warrant has been exercised in full, in which case,
      the Holder shall surrender this Warrant to the Company for cancellation within
      3
      Trading Days of the date the final Notice of Exercise is delivered to the
      Company. Partial exercises of this Warrant resulting in purchases of a portion
      of the total number of Warrant Shares available hereunder shall have the effect
      of lowering the outstanding number of Warrant Shares purchasable hereunder
      in an
      amount equal to the applicable number of Warrant Shares purchased. The Holder
      and the Company shall maintain records showing the number of Warrant Shares
      purchased and the date of such purchases. The Company shall deliver any
      objection to any Notice of Exercise Form within 1 Business Day of receipt of
      such notice. In the event of any dispute or discrepancy, the records of the
      Holder shall be controlling and determinative in the absence of manifest error.
      The Holder and any assignee, by acceptance of this Warrant, acknowledge and
      agree that, by reason of the provisions of this paragraph, following the
      purchase of a portion of the Warrant Shares hereunder, the number of Warrant
      Shares available for purchase hereunder at any given time may be less than
      the
      amount stated on the face hereof.

     

    b) Exercise
      Price.
      The
      exercise price per share of the Common Stock under this Warrant shall be
$_____,
      subject to adjustment hereunder (the “Exercise
      Price”).

     

    c) Cashless
      Exercise.
      If at
      any time after one year from the date of issuance of this Warrant there is
      no
      effective Registration Statement registering, or no current prospectus available
      for, the resale of the Warrant Shares by the Holder, then this Warrant may
      also
      be exercised at such time by means of a “cashless exercise” in which the Holder
      shall be entitled to receive a certificate for the number of Warrant Shares
      equal to the quotient obtained by dividing [(A-B) (X)] by (A),
      where:

     

    
      
        	
              	(A)
                =	
                the
                  VWAP on the Trading Day immediately preceding the date of such
                  election;

              

      

    

    

    
      
        	
              	(B)
                =	
                the
                  Exercise Price of this Warrant, as adjusted; and
                  

              

      

    

    

    
      
        	
              	(X)
                =	
                the
                  number of Warrant Shares issuable upon exercise of this Warrant
                  in
                  accordance with the terms of this Warrant by means of a cash exercise
                  rather than a   cashless
                  exercise.

              

      

    

     

    
      
        
        

      

      
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    Notwithstanding
      anything herein to the contrary, on the Termination Date, this Warrant shall
      be
      automatically exercised via cashless exercise pursuant to this Section
      2(c).

    

    d) Exercise
      Limitations.
      The
      Company shall not effect any exercise of this Warrant, and a Holder shall not
      have the right to exercise any portion of this Warrant, pursuant to Section
      2(c)
      or otherwise, to the extent that after giving effect to such issuance after
      exercise as set forth on the applicable Notice of Exercise, such Holder
      (together with such Holder’s Affiliates, and any other person or entity acting
      as a group together with such Holder or any of such Holder’s Affiliates), as set
      forth on the applicable Notice of Exercise, would beneficially own in excess
      of
      the Beneficial Ownership Limitation (as defined below).  For purposes of
      the foregoing sentence, the number of shares of Common Stock beneficially owned
      by such Holder and its Affiliates shall include the number of shares of Common
      Stock issuable upon exercise of this Warrant with respect to which such
      determination is being made, but shall exclude the number of shares of Common
      Stock which would be issuable upon (A) exercise of the remaining, nonexercised
      portion of this Warrant beneficially owned by such Holder or any of its
      Affiliates and (B) exercise or conversion of the unexercised or nonconverted
      portion of any other securities of the Company (including, without limitation,
      any other Preferred Stock or Warrants) subject to a limitation on conversion
      or
      exercise analogous to the limitation contained herein beneficially owned by
      such
      Holder or any of its affiliates.  Except as set forth in the preceding
      sentence, for purposes of this Section 2(d), beneficial ownership shall be
      calculated in accordance with Section 13(d) of the Exchange Act and the rules
      and regulations promulgated thereunder, it being acknowledged by a Holder that
      the Company is not representing to such Holder that such calculation is in
      compliance with Section 13(d) of the Exchange Act and such Holder is solely
      responsible for any schedules required to be filed in accordance therewith.
      To
      the extent that the limitation contained in this Section 2(d) applies, the
      determination of whether this Warrant is exercisable (in relation to other
      securities owned by such Holder together with any Affiliates) and of which
      a
      portion of this Warrant is exercisable shall be in the sole discretion of a
      Holder, and the submission of a Notice of Exercise shall be deemed to be each
      Holder’s determination of whether this Warrant is exercisable (in relation to
      other securities owned by such Holder together with any Affiliates) and of
      which
      portion of this Warrant is exercisable, in each case subject to such aggregate
      percentage limitation, and the Company shall have no obligation to verify or
      confirm the accuracy of such determination. In addition, a determination as
      to
      any group status as contemplated above shall be determined in accordance with
      Section 13(d) of the Exchange Act and the rules and regulations promulgated
      thereunder. For purposes of this Section 2(d), in determining the number of
      outstanding shares of Common Stock, a Holder may rely on the number of
      outstanding shares of Common Stock as reflected in (x) the Company’s most recent
      Form 10-QSB or Form 10-KSB, as the case may be, (y) a more recent public
      announcement by the Company or (z) any other notice by the Company or the
      Company’s Transfer Agent setting forth the number of shares of Common Stock
      outstanding.  Upon the written or oral request of a Holder, the Company
      shall within two Trading Days confirm orally and in writing to such Holder
      the
      number of shares of Common Stock then outstanding.  In any case, the number
      of outstanding shares of Common Stock shall be determined after giving effect
      to
      the conversion or exercise of securities of the Company, including this Warrant,
      by such Holder or its Affiliates since the date as of which such number of
      outstanding shares of Common Stock was reported. The “Beneficial
      Ownership Limitation”
shall
      be 4.99% of the number of shares of the Common Stock outstanding immediately
      after giving effect to the issuance of shares of Common Stock issuable upon
      exercise of this Warrant. The Beneficial Ownership Limitation provisions of
      this
      Section 2(d) may be waived by such Holder, at the election of such Holder,
      upon
      not less than 61 days’ prior notice to the Company to change the Beneficial
      Ownership Limitation to 9.99% of the number of shares of the Common Stock
      outstanding immediately after giving effect to the issuance of shares of Common
      Stock upon exercise of this Warrant, and the provisions of this Section 2(d)
      shall continue to apply. Upon such a change by a Holder of the Beneficial
      Ownership Limitation from such 4.99% limitation to such 9.99% limitation, the
      Beneficial Ownership Limitation may not be further waived by such Holder. The
      provisions of this paragraph shall be construed and implemented in a manner
      otherwise than in strict conformity with the terms of this Section 2(d) to
      correct this paragraph (or any portion hereof) which may be defective or
      inconsistent with the intended Beneficial Ownership Limitation herein contained
      or to make changes or supplements necessary or desirable to properly give effect
      to such limitation. The limitations contained in this paragraph shall apply
      to a
      successor holder of this Warrant.

     

    
      
        
        

      

      
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    e) Mechanics
      of Exercise.
      

     

    i. Authorization
      of Warrant Shares.
      The
      Company covenants that all Warrant Shares which may be issued upon the exercise
      of the purchase rights represented by this Warrant will, upon exercise of the
      purchase rights represented by this Warrant, be duly authorized, validly issued,
      fully paid and nonassessable and free from all taxes, liens and charges created
      by the Company in respect of the issue thereof (other than taxes in respect
      of
      any transfer occurring contemporaneously with such issue). 

     

    ii. Delivery
      of Certificates Upon Exercise.
      Certificates for shares purchased hereunder shall be transmitted by the transfer
      agent of the Company to the Holder by crediting the account of the Holder’s
      prime broker with the Depository Trust Company through its Deposit Withdrawal
      Agent Commission (“DWAC”)
      system
      if the Company is a participant in such system, and otherwise by physical
      delivery to the address specified by the Holder in the Notice of Exercise within
      3 Trading Days from the delivery to the Company of the Notice of Exercise Form,
      surrender of this Warrant (if required) and payment of the aggregate Exercise
      Price as set forth above (“Warrant
      Share Delivery Date”).
      This
      Warrant shall be deemed to have been exercised on the date the Exercise Price
      is
      received by the Company. The Warrant Shares shall be deemed to have been issued,
      and Holder or any other person so designated to be named therein shall be deemed
      to have become a holder of record of such shares for all purposes, as of the
      date the Warrant has been exercised by payment to the Company of the Exercise
      Price (or by cashless exercise, if permitted) and all taxes required to be
      paid
      by the Holder, if any, pursuant to Section 2(e)(vii) prior to the issuance
      of
      such shares, have been paid. 

     

    
      
        
        

      

      
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    iii. Delivery
      of New Warrants Upon Exercise.
      If this
      Warrant shall have been exercised in part, the Company shall, at the request
      of
      a Holder and upon surrender of this Warrant certificate, at the time of delivery
      of the certificate or certificates representing Warrant Shares, deliver to
      Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased
      Warrant Shares called for by this Warrant, which new Warrant shall in all other
      respects be identical with this Warrant.

     

    iv. Rescission
      Rights.
      If the
      Company fails to cause its transfer agent to transmit to the Holder a
      certificate or certificates representing the Warrant Shares pursuant to this
      Section 2(e)(iv) by the Warrant Share Delivery Date, then the Holder will have
      the right to rescind such exercise.

     

    v. Compensation
      for Buy-In on Failure to Timely Deliver Certificates Upon
      Exercise.
      In
      addition to any other rights available to the Holder, if the Company fails
      to
      cause its transfer agent to transmit to the Holder a certificate or certificates
      representing the Warrant Shares pursuant to an exercise on or before the Warrant
      Share Delivery Date, and if after such date the Holder is required by its broker
      to purchase (in an open market transaction or otherwise) or the Holder’s
      brokerage firm otherwise purchases, shares of Common Stock to deliver in
      satisfaction of a sale by the Holder of the Warrant Shares which the Holder
      anticipated receiving upon such exercise (a “Buy-In”),
      then
      the Company shall (1) pay in cash to the Holder the amount by which (x) the
      Holder’s total purchase price (including brokerage commissions, if any) for the
      shares of Common Stock so purchased exceeds (y) the amount obtained by
      multiplying (A) the number of Warrant Shares that the Company was required
      to
      deliver to the Holder in connection with the exercise at issue times (B) the
      price at which the sell order giving rise to such purchase obligation was
      executed, and (2) at the option of the Holder, either reinstate the portion
      of
      the Warrant and equivalent number of Warrant Shares for which such exercise
      was
      not honored or deliver to the Holder the number of shares of Common Stock that
      would have been issued had the Company timely complied with its exercise and
      delivery obligations hereunder. For example, if the Holder purchases Common
      Stock having a total purchase price of $11,000 to cover a Buy-In with respect
      to
      an attempted exercise of shares of Common Stock with an aggregate sale price
      giving rise to such purchase obligation of $10,000, under clause (1) of the
      immediately preceding sentence the Company shall be required to pay the Holder
      $1,000. The Holder shall provide the Company written notice indicating the
      amounts payable to the Holder in respect of the Buy-In and, upon request of
      the
      Company, evidence of the amount of such loss. Nothing herein shall limit a
      Holder’s right to pursue any other remedies available to it hereunder, at law or
      in equity including, without limitation, a decree of specific performance and/or
      injunctive relief with respect to the Company’s failure to timely deliver
      certificates representing shares of Common Stock upon exercise of the Warrant
      as
      required pursuant to the terms hereof.

     

    
      
        
        

      

      
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    vi. No
      Fractional Shares or Scrip.
      No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant. As to any fraction of a share which Holder would
      otherwise be entitled to purchase upon such exercise, the Company shall at
      its
      election, either pay a cash adjustment in respect of such final fraction in
      an
      amount equal to such fraction multiplied by the Exercise Price or round up
      to
      the next whole share.

     

    vii. Charges,
      Taxes and Expenses.
      Issuance of certificates for Warrant Shares shall be made without charge to
      the
      Holder for any issue or transfer tax or other incidental expense in respect
      of
      the issuance of such certificate, all of which taxes and expenses shall be
      paid
      by the Company, and such certificates shall be issued in the name of the Holder
      or in such name or names as may be directed by the Holder; provided,
      however,
      that in
      the event certificates for Warrant Shares are to be issued in a name other
      than
      the name of the Holder, this Warrant when surrendered for exercise shall be
      accompanied by the Assignment Form attached hereto duly executed by the Holder;
      and the Company may require, as a condition thereto, the payment of a sum
      sufficient to reimburse it for any transfer tax incidental thereto.

     

    viii. Closing
      of Books.
      The
      Company will not close its stockholder books or records in any manner which
      prevents the timely exercise of this Warrant, pursuant to the terms
      hereof.

     

    Section
      3. Certain Adjustments.

     

    a) Stock
      Dividends and Splits.
      If the
      Company, at any time while this Warrant is outstanding: (A) pays a stock
      dividend or otherwise make a distribution or distributions on shares of its
      Common Stock or any other equity or equity equivalent securities payable in
      shares of Common Stock (which, for avoidance of doubt, shall not include any
      shares of Common Stock issued by the Company upon exercise of this Warrant),
      (B)
      subdivides outstanding shares of Common Stock into a larger number of shares,
      (C) combines (including by way of reverse stock split) outstanding shares of
      Common Stock into a smaller number of shares, or (D) issues by reclassification
      of shares of the Common Stock any shares of capital stock of the Company, then
      in each case the Exercise Price shall be multiplied by a fraction of which
      the
      numerator shall be the number of shares of Common Stock (excluding treasury
      shares, if any) outstanding immediately before such event and of which the
      denominator shall be the number of shares of Common Stock outstanding
      immediately after such event and the number of shares issuable upon exercise
      of
      this Warrant shall be proportionately adjusted. Any adjustment made pursuant
      to
      this Section 3(a) shall become effective immediately after the record date
      for
      the determination of stockholders entitled to receive such dividend or
      distribution and shall become effective immediately after the effective date
      in
      the case of a subdivision, combination or re-classification.

     

    
      
        
        

      

      
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    b) Subsequent
      Equity Sales.
      If the
      Company or any Subsidiary thereof, as applicable, at any time while this Warrant
      is outstanding, shall sell or grant any option to purchase or sell or grant
      any
      right to reprice its securities, or otherwise dispose of or issue (or announce
      any offer, sale, grant or any option to purchase or other disposition) any
      Common Stock or Common Stock Equivalents entitling any Person to acquire shares
      of Common Stock, at an effective price per share less than the then Exercise
      Price (such lower price, the “Base
      Share Price”
and
      such issuances collectively, a “Dilutive
      Issuance”)
      (if
      the holder of the Common Stock or Common Stock Equivalents so issued shall
      at
      any time, whether by operation of purchase price adjustments, reset provisions,
      floating conversion, exercise or exchange prices or otherwise, or due to
      warrants, options or rights per share which are issued in connection with such
      issuance, be entitled to receive shares of Common Stock at an effective price
      per share which is less than the Exercise Price, such issuance shall be deemed
      to have occurred for less than the Exercise Price on such date of the Dilutive
      Issuance), then the Exercise Price shall be reduced and only reduced to equal
      the Base Share Price and the number of Warrant Shares issuable hereunder shall
      be increased such that the aggregate Exercise Price payable hereunder, after
      taking into account the decrease in the Exercise Price, shall be equal to the
      aggregate Exercise Price prior to such adjustment. Such adjustment shall be
      made
      whenever such Common Stock or Common Stock Equivalents are issued.
      Notwithstanding the foregoing, no adjustments shall be made, paid or issued
      under this Section 3(b) in respect of an Exempt Issuance. The Company shall
      notify the Holder in writing, no later than the Trading Day following the
      issuance of any Common Stock or Common Stock Equivalents subject to this Section
      3(b), indicating therein the applicable issuance price, or applicable reset
      price, exchange price, conversion price and other pricing terms (such notice
      the
“Dilutive
      Issuance Notice”).
      For
      purposes of clarification, whether or not the Company provides a Dilutive
      Issuance Notice pursuant to this Section 3(b), upon the occurrence of any
      Dilutive Issuance, after the date of such Dilutive Issuance the Holder is
      entitled to receive a number of Warrant Shares based upon the Base Share Price
      regardless of whether the Holder accurately refers to the Base Share Price
      in
      the Notice of Exercise.

     

    c) Subsequent
      Rights Offerings.
      If the
      Company, at any time while the Warrant is outstanding, shall issue rights,
      options or warrants to all holders of Common Stock (and not to Holders)
      entitling them to subscribe for or purchase shares of Common Stock at a price
      per share less than the VWAP at the record date mentioned below, then the
      Exercise Price shall be multiplied by a fraction, of which the denominator
      shall
      be the number of shares of the Common Stock outstanding on the date of issuance
      of such rights or warrants plus the number of additional shares of Common Stock
      offered for subscription or purchase, and of which the numerator shall be the
      number of shares of the Common Stock outstanding on the date of issuance of
      such
      rights or warrants plus the number of shares which the aggregate offering price
      of the total number of shares so offered (assuming receipt by the Company in
      full of all consideration payable upon exercise of such rights, options or
      warrants) would purchase at such VWAP. Such adjustment shall be made whenever
      such rights or warrants are issued, and shall become effective immediately
      after
      the record date for the determination of stockholders entitled to receive such
      rights, options or warrants. 

     

    
      
        
        

      

      
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    d) Pro
      Rata Distributions.
      If the
      Company, at any time prior to the Termination Date, shall distribute to all
      holders of Common Stock (and not to Holders of the Warrants) evidences of its
      indebtedness or assets (including cash and cash dividends) or rights or warrants
      to subscribe for or purchase any security other than the Common Stock (which
      shall be subject to Section 3(b)), then in each such case the Exercise Price
      shall be adjusted by multiplying the Exercise Price in effect immediately prior
      to the record date fixed for determination of stockholders entitled to receive
      such distribution by a fraction of which the denominator shall be the VWAP
      determined as of the record date mentioned above, and of which the numerator
      shall be such VWAP on such record date less the then per share fair market
      value
      at such record date of the portion of such assets or evidence of indebtedness
      so
      distributed applicable to one outstanding share of the Common Stock as
      determined by the Board of Directors in good faith. In either case the
      adjustments shall be described in a statement provided to the Holder of the
      portion of assets or evidences of indebtedness so distributed or such
      subscription rights applicable to one share of Common Stock. Such adjustment
      shall be made whenever any such distribution is made and shall become effective
      immediately after the record date mentioned above.

     

    e) Fundamental
      Transaction.
      If, at
      any time while this Warrant is outstanding, (A) the Company effects any merger
      or consolidation of the Company with or into another Person, (B) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (C) any tender offer or exchange offer (whether by the
      Company or another Person) is completed pursuant to which holders of Common
      Stock are permitted to tender or exchange their shares for other securities,
      cash or property, or (D) the Company effects any reclassification of the Common
      Stock or any compulsory share exchange pursuant to which the Common Stock is
      effectively converted into or exchanged for other securities, cash or property
      (in any such case, a “Fundamental
      Transaction”),
      then,
      upon any subsequent exercise of this Warrant, the Holder shall have the right
      to
      receive, for each Warrant Share that would have been issuable upon such exercise
      immediately prior to the occurrence of such Fundamental Transaction, at the
      option of the Holder, (a) upon exercise of this Warrant, the number of shares
      of
      Common Stock of the successor or acquiring corporation or of the Company, if
      it
      is the surviving corporation, and any additional consideration (the
“Alternate
      Consideration”)
      receivable upon or as a result of such reorganization, reclassification, merger,
      consolidation or disposition of assets by a Holder of the number of shares
      of
      Common Stock for which this Warrant is exercisable immediately prior to such
      event or (b) if the Company is acquired in an all cash transaction, cash equal
      to the value of this Warrant as determined in accordance with the Black-Scholes
      option pricing formula. For purposes of any such exercise, the determination
      of
      the Exercise Price shall be appropriately adjusted to apply to such Alternate
      Consideration based on the amount of Alternate Consideration issuable in respect
      of one share of Common Stock in such Fundamental Transaction, and the Company
      shall apportion the Exercise Price among the Alternate Consideration in a
      reasonable manner reflecting the relative value of any different components
      of
      the Alternate Consideration. If holders of Common Stock are given any choice
      as
      to the securities, cash or property to be received in a Fundamental Transaction,
      then the Holder shall be given the same choice as to the Alternate Consideration
      it receives upon any exercise of this Warrant following such Fundamental
      Transaction. To the extent necessary to effectuate the foregoing provisions,
      any
      successor to the Company or surviving entity in such Fundamental Transaction
      shall issue to the Holder a new warrant consistent with the foregoing provisions
      and evidencing the Holder’s right to exercise such warrant into Alternate
      Consideration. The terms of any agreement pursuant to which a Fundamental
      Transaction is effected shall include terms requiring any such successor or
      surviving entity to comply with the provisions of this Section 3(e) and insuring
      that this Warrant (or any such replacement security) will be similarly adjusted
      upon any subsequent transaction analogous to a Fundamental
      Transaction.

     

    
      
        
        

      

      
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    f) Calculations.
      All
      calculations under this Section 3 shall be made to the nearest cent or the
      nearest 1/100th of a share, as the case may be. For purposes of this Section
      3,
      the number of shares of Common Stock deemed to be issued and outstanding as
      of a
      given date shall be the sum of the number of shares of Common Stock (excluding
      treasury shares, if any) issued and outstanding.

     

    g) Voluntary
      Adjustment By Company.
      The
      Company may at any time during the term of this Warrant reduce the then current
      Exercise Price to any amount and for any period of time deemed appropriate
      by
      the Board of Directors of the Company.

     

    h) Notice
      to Holder.
      

     

    i. Adjustment
      to Exercise Price.
      Whenever the Exercise Price is adjusted pursuant to any provision of this
      Section 3, the Company shall promptly mail to the Holder a notice setting forth
      the Exercise Price after such adjustment and setting forth a brief statement
      of
      the facts requiring such adjustment. If the Company issues a variable rate
      security, despite the prohibition thereon in the Purchase Agreement, the Company
      shall be deemed to have issued Common Stock or Common Stock Equivalents at
      the
      lowest possible conversion or exercise price at which such securities may be
      converted or exercised in the case of a Variable Rate Transaction (as defined
      in
      the Purchase Agreement).

     

    ii. Notice
      to Allow Exercise by Holder.
      If (A)
      the Company shall declare a dividend (or any other distribution in whatever
      form) on the Common Stock; (B) the Company shall declare a special nonrecurring
      cash dividend on or a redemption of the Common Stock; (C) the Company shall
      authorize the granting to all holders of the Common Stock rights or warrants
      to
      subscribe for or purchase any shares of capital stock of any class or of any
      rights; (D) the approval of any stockholders of the Company shall be required
      in
      connection with any reclassification of the Common Stock, any consolidation
      or
      merger to which the Company is a party, any sale or transfer of all or
      substantially all of the assets of the Company, of any compulsory share exchange
      whereby the Common Stock is converted into other securities, cash or property;
      (E) the Company shall authorize the voluntary or involuntary dissolution,
      liquidation or winding up of the affairs of the Company; then, in each case,
      the
      Company shall cause to be mailed to the Holder at its last address as it shall
      appear upon the Warrant Register of the Company, at least 20 calendar days
      prior
      to the applicable record or effective date hereinafter specified, a notice
      stating (x) the date on which a record is to be taken for the purpose of such
      dividend, distribution, redemption, rights or warrants, or if a record is not
      to
      be taken, the date as of which the holders of the Common Stock of record to
      be
      entitled to such dividend, distributions, redemption, rights or warrants are
      to
      be determined or (y) the date on which such reclassification, consolidation,
      merger, sale, transfer or share exchange is expected to become effective or
      close, and the date as of which it is expected that holders of the Common Stock
      of record shall be entitled to exchange their shares of the Common Stock for
      securities, cash or other property deliverable upon such reclassification,
      consolidation, merger, sale, transfer or share exchange; provided that the
      failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice. The Holder is entitled to exercise this Warrant during the
      20-day period commencing on the date of such notice to the effective date of
      the
      event triggering such notice.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    Section
      4. Transfer
      of Warrant.

     

    a) Transferability.
      Subject
      to compliance with any applicable securities laws and the conditions set forth
      in Section 4(d) hereof and to the provisions of Section 4.1 of the Purchase
      Agreement, this Warrant and all rights hereunder (including, without limitation,
      any registration rights) are transferable, in whole or in part, upon surrender
      of this Warrant at the principal office of the Company or its designated agent,
      together with a written assignment of this Warrant substantially in the form
      attached hereto duly executed by the Holder or its agent or attorney and funds
      sufficient to pay any transfer taxes payable upon the making of such transfer.
      Upon such surrender and, if required, such payment, the Company shall execute
      and deliver a new Warrant or Warrants in the name of the assignee or assignees
      and in the denomination or denominations specified in such instrument of
      assignment, and shall issue to the assignor a new Warrant evidencing the portion
      of this Warrant not so assigned, and this Warrant shall promptly be cancelled.
      A
      Warrant, if properly assigned, may be exercised by a new holder for the purchase
      of Warrant Shares without having a new Warrant issued. 

     

    b) New
      Warrants.
      This
      Warrant may be divided or combined with other Warrants upon presentation hereof
      at the aforesaid office of the Company, together with a written notice
      specifying the names and denominations in which new Warrants are to be issued,
      signed by the Holder or its agent or attorney. Subject to compliance with
      Section 4(a), as to any transfer which may be involved in such division or
      combination, the Company shall execute and deliver a new Warrant or Warrants
      in
      exchange for the Warrant or Warrants to be divided or combined in accordance
      with such notice.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    c) Warrant
      Register.
      The
      Company shall register this Warrant, upon records to be maintained by the
      Company for that purpose (the “Warrant
      Register”),
      in
      the name of the record Holder hereof from time to time. The Company may deem
      and
      treat the registered Holder of this Warrant as the absolute owner hereof for
      the
      purpose of any exercise hereof or any distribution to the Holder, and for all
      other purposes, absent actual notice to the contrary.

     

    d) Transfer
      Restrictions.
      If,
      at the
time
      of
      the surrender of this Warrant in connection with any transfer of this Warrant,
      the transfer of this Warrant shall not be registered pursuant to an effective
      registration
      statement under the Securities Act
      and
under
      applicable state securities or blue sky laws, the Company may require, as a
      condition of allowing such transfer, that (i) the Holder or transferee of this
      Warrant, as the case may be, furnish to the Company a written opinion of counsel
      (which opinion shall be in form, substance and scope customary for opinions
      of
      counsel in comparable transactions) to the effect that such transfer may be
      made
      without
      registration under
      the
      Securities Act and under applicable state securities or blue sky laws, and
      (ii)
      the Holder or transferee execute and deliver to the Company an investment letter
      in form and substance acceptable to the Company, and (iii) the transferee be
      an
“accredited
      investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8)
      promulgated under the Securities Act or a “qualified institutional buyer” as
      defined in Rule 144A(a) promulgated under the Securities Act.

     

    Section
      5. Miscellaneous.

     

    a) No
      Rights as Shareholder Until Exercise.
      This
      Warrant does not entitle the Holder to any voting rights or other rights as
      a
      shareholder of the Company prior to the exercise hereof as set forth in Section
      2(e)(ii). 

     

    b) Loss,
      Theft, Destruction or Mutilation of Warrant.
      The
      Company covenants that upon receipt by the Company of evidence reasonably
      satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
      or any stock certificate relating to the Warrant Shares, and in case of loss,
      theft or destruction, of indemnity or security reasonably satisfactory to it
      (which, in the case of the Warrant, shall not include the posting of any bond),
      and upon surrender and cancellation of such Warrant or stock certificate, if
      mutilated, the Company will make and deliver a new Warrant or stock certificate
      of like tenor and dated as of such cancellation, in lieu of such Warrant or
      stock certificate.

     

    c) Saturdays,
      Sundays, Holidays, etc.
      If the
      last or appointed day for the taking of any action or the expiration of any
      right required or granted herein shall not be a Business Day, then such action
      may be taken or such right may be exercised on the next succeeding Business
      Day.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    d) Authorized
      Shares.
      

     

    The
      Company covenants that during the period the Warrant is outstanding, it will
      reserve from its authorized and unissued Common Stock a sufficient number of
      shares to provide for the issuance of the Warrant Shares upon the exercise
      of
      any purchase rights under this Warrant. The Company further covenants that
      its
      issuance of this Warrant shall constitute full authority to its officers who
      are
      charged with the duty of executing stock certificates to execute and issue
      the
      necessary certificates for the Warrant Shares upon the exercise of the purchase
      rights under this Warrant. The Company will take all such reasonable action
      as
      may be necessary to assure that such Warrant Shares may be issued as provided
      herein without violation of any applicable law or regulation, or of any
      requirements of the Trading Market upon which the Common Stock may be listed.
      

     

    Except
      and to the extent as waived or consented to by the Holder, the Company shall
      not
      by any action, including, without limitation, amending its certificate 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 of
      this
      Warrant, but will at all times in good faith assist in the carrying out of
      all
      such terms and in the taking of all such actions as may be necessary or
      appropriate to protect the rights of Holder as set forth in this Warrant against
      impairment. Without limiting the generality of the foregoing, the Company will
      (a) not increase the par value of any Warrant Shares above the amount payable
      therefor upon such exercise immediately prior to such increase in par value,
      (b)
      take all such action as may be necessary or appropriate in order that the
      Company may validly and legally issue fully paid and nonassessable Warrant
      Shares upon the exercise of this Warrant, and (c) use commercially reasonable
      efforts to obtain all such authorizations, exemptions or consents from any
      public regulatory body having jurisdiction thereof as may be necessary to enable
      the Company to perform its obligations under this Warrant.

     

    Before
      taking any action which would result in an adjustment in the number of Warrant
      Shares for which this Warrant is exercisable or in the Exercise Price, the
      Company shall obtain all such authorizations or exemptions thereof, or consents
      thereto, as may be necessary from any public regulatory body or bodies having
      jurisdiction thereof.

     

    e) Jurisdiction.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Warrant shall be determined in accordance with the provisions of the
      Purchase Agreement.

     

    f) Restrictions.
      The
      Holder acknowledges that the Warrant Shares acquired upon the exercise of this
      Warrant, if not registered, will have restrictions upon resale imposed by state
      and federal securities laws.

     

    g) Nonwaiver
      and Expenses.
      No
      course of dealing or any delay or failure to exercise any right hereunder on
      the
      part of Holder shall operate as a waiver of such right or otherwise prejudice
      Holder’s rights, powers or remedies, notwithstanding the fact that all rights
      hereunder terminate on the Termination Date. If the Company willfully and
      knowingly fails to comply with any provision of this Warrant, which results
      in
      any material damages to the Holder, the Company shall pay to Holder such amounts
      as shall be sufficient to cover any costs and expenses including, but not
      limited to, reasonable attorneys’ fees, including those of appellate
      proceedings, incurred by Holder in collecting any amounts due pursuant hereto
      or
      in otherwise enforcing any of its rights, powers or remedies
      hereunder.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    h) Notices.
      Any
      notice, request or other document required or permitted to be given or delivered
      to the Holder by the Company shall be delivered in accordance with the notice
      provisions of the Purchase Agreement.

     

    i) Limitation
      of Liability.
      No
      provision hereof, in the absence of any affirmative action by Holder to exercise
      this Warrant to purchase Warrant Shares, and no enumeration herein of the rights
      or privileges of Holder, shall give rise to any liability of Holder for the
      purchase price of any Common Stock or as a stockholder of the Company, whether
      such liability is asserted by the Company or by creditors of the
      Company.

     

    j) Remedies.
      Holder,
      in addition to being entitled to exercise all rights granted by law, including
      recovery of damages, will be entitled to specific performance of its rights
      under this Warrant. The Company agrees that monetary damages would not be
      adequate compensation for any loss incurred by reason of a breach by it of
      the
      provisions of this Warrant and hereby agrees to waive and not to assert the
      defense in any action for specific performance that a remedy at law would be
      adequate.

     

    k) Successors
      and Assigns.
      Subject
      to applicable securities laws, this Warrant and the rights and obligations
      evidenced hereby shall inure to the benefit of and be binding upon the
      successors of the Company and the successors and permitted assigns of Holder.
      The provisions of this Warrant are intended to be for the benefit of all Holders
      from time to time of this Warrant and shall be enforceable by any such Holder
      or
      holder of Warrant Shares.

     

    l) Amendment.
      This
      Warrant may be modified or amended or the provisions hereof waived with the
      written consent of the Company and the Holder.

     

    m) Severability.
      Wherever possible, each provision of this Warrant shall be interpreted in such
      manner as to be effective and valid under applicable law, but if any provision
      of this Warrant shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provisions or the remaining
      provisions of this Warrant.

     

    n) Headings.
      The
      headings used in this Warrant are for the convenience of reference only and
      shall not, for any purpose, be deemed a part of this Warrant.

    

    ********************

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      officer thereunto duly authorized as of the date first above
      indicated.

     

    
      	 	 	 
	 	WILLOWTREE
              ADVISOR, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title 

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    NOTICE
      OF EXERCISE

    

    TO: WILLOWTREE
      ADVISOR, INC.

    

    (1) The
      undersigned hereby elects to purchase ________ Warrant Shares of the Company
      pursuant to the terms of the attached Warrant (only if exercised in full),
      and
      tenders herewith payment of the exercise price in full, together with all
      applicable transfer taxes, if any.

     

    (2) Payment
      shall take the form of (check applicable box):

     

    o
      in lawful money of the
      United States; or

     

    o [if
      permitted] the cancellation of
      such number of Warrant Shares as is necessary, in accordance with the formula
      set forth in subsection 2(c), to exercise this Warrant with respect to the
      maximum number of Warrant Shares purchasable pursuant to the cashless exercise
      procedure set forth in subsection 2(c).

     

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

     

    _______________________________

    

    The
      Warrant Shares shall be delivered to the following DWAC Account Number or by
      physical delivery of a certificate to:

    

    _______________________________

     

    _______________________________

     

                    _______________________________

    

    (4)
      Accredited
      Investor.
      The
      undersigned is an “accredited investor” as defined in Regulation D promulgated
      under the Securities Act of 1933, as amended.

    

    [SIGNATURE
      OF HOLDER]

     

    Name
      of
      Investing Entity:
      ________________________________________________________________________

    Signature
      of Authorized Signatory of Investing Entity:
      __________________________________________________

    Name
      of
      Authorized Signatory:
      ____________________________________________________________________

    Title
      of
      Authorized Signatory:
      _____________________________________________________________________

    Date:
      ________________________________________________________________________________________

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT
      FORM

    

    (To
      assign the foregoing warrant, execute

    this
      form
      and supply required information. 

    Do
      not
      use this form to exercise the warrant.)

    

    FOR
      VALUE
      RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
      rights evidenced thereby are hereby assigned to

    

    _______________________________________________
      whose address is

    

    _______________________________________________________________.

    

    

    _______________________________________________________________

    

    Dated:
      ______________, _______

    

    

    Holder’s
      Signature: _____________________________

    

    Holder’s
      Address: _____________________________

                            

                                    
      _____________________________

     

     

    Signature
      Guaranteed: ___________________________________________

     

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust company. Officers of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing
      Warrant.OmniReliant
              Corporation	 	 
	 	 	

    

    
      

    

    EXECUTIVE
      EMPLOYMENT AGREEMENT

     

    This
      Executive Employment Agreement (the “Agreement”), by and among OmniReliant
      Corporation, a Florida corporation (“Company”) and Paul Morrison (“Employee”),
      is hereby entered into on October 31, 2006

     

    AGREEMENTS

     

    In
      consideration of the mutual promises, terms, covenants and conditions set forth
      herein and the performance of each, and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties, intending to be legally bound, hereby agree as follows:

     

    1. EMPLOYMENT
      AND DUTIES.

     

    (a) Subject
      to the terms and conditions of this Agreement, the Company hereby employs
      Employee as President/Chief Operating Officer
      of the
      Company. As such, Employee shall have responsibilities, duties and authority
      reasonably accorded to and expected of such position and will report directly
      to
      the Board. Employee hereby accepts this employment upon the terms and conditions
      herein contained and, subject to paragraph 1(b) hereof, agrees to devote
      Employee’s full business time, attention and efforts to promote and further the
      business of the Company. Employee shall faithfully adhere to, execute and
      fulfill all policies established by the Company.

     

    (b) Employee
      shall not, during the term of his employment hereunder, be engaged in any other
      business activity pursued for gain, profit or other pecuniary advantage if
      such
      activity interferes with Employee’s duties and responsibilities hereunder. The
      foregoing limitations shall not be construed as prohibiting Employee from making
      personal investments in such form or manner as will neither require Employee’s
      services in the operation or affairs of the companies or enterprises in which
      such investments are made nor violate the terms of paragraph 3
      hereof.

     

    2. TERM.
      The
      Company employs Employee for a period commencing the date hereof and ending
      on
      the second anniversary of the date hereof (the “Term”), subject to termination
      prior to such date pursuant to Section 6 hereof. Sixty (60) days prior to the
      end of the Term (or any renewal term), either the Company or Employee may give
      notice to the other of its determination not to renew this Agreement. If a
      notice of non-renewal is not delivered, this Agreement will automatically
      continue in effect for a successive two (2) year renewal term subject to
      termination prior to such date pursuant to Section 5 hereof. If such notice
      of
      non-renewal is given by any party, then Employee’s employment will terminate at
      the end of such term (or on such other date as the parties mutually
      agree).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. COMPENSATION.
      For
      all
      services rendered by Employee, the Company shall compensate Employee as
      follows:

     

    (a) BASE
      SALARY.
      The
      base salary payable hereunder to Employee shall equal $120,000 per year, payable
      on a regular basis in accordance with the Company’s standard payroll procedures
      but not less than monthly. On at least an annual basis, the Company’s Board (the
“Board”), together with the Compensation Committee of the Company’s Board, will
      review Employee’s performance and may make increases to such base salary if, in
      its discretion, any such increase is warranted above the annual pay raise rate
      of 10%. 

     

    (b) EXECUTIVE
      PERQUISITES, BENEFITS, AND OTHER COMPENSATION.
      Employee shall be entitled to receive additional benefits and compensation
      from
      the Company in such form and to such extent as specified below:

     

    (i) Payment
      of all premiums for coverage for Employee under health, hospitalization,
      disability, dental, life and other insurance plans that the Company may have
      in
      effect from time to time. The benefits provided to Employee under this clause
      (i) shall be at least equal to such benefits provided to executives or employees
      in similar positions at the Company. As of the date of this agreement , the
      Company has no health or death benefits.

     

    (ii) Reimbursement
      for all business travel and other out-of-pocket expenses reasonably incurred
      by
      Employee in the performance of Employee’s services pursuant to this Agreement.
      All reimbursable expenses shall be appropriately documented in reasonable detail
      by Employee upon submission of any request for reimbursement, and in a format
      and manner consistent with the Company’s expense reporting policy. All travel
      must be approved by the Company’s Board or their designated
      representative.

     

    (iii) The
      Company shall provide Employee with other executive perquisites (including,
      but
      not limited to, participation in the Company’s Long-Term Incentive Plan) as may
      be available to or deemed appropriate for Employee by the Board and
      participation in all other Company-wide employee benefits as available from
      time
      to time. Employee shall be entitled to 3 weeks of vacation per year in addition
      to all Federal and religious holidays.

     

    (iv)
      The
      Company will rent an apartment in Tampa/ St. Petersburg, FL., If the Board
      deems
      it necessary, at the Company’s’ expense. A Rental car will be allowed at
      Company’s expense.

     

    (v)
      Stock
      Grant: The Company will grant you 300,000 common shares prior to reverse merger.
      These shares will be restricted and carry the standard restricted legend. The
      shares will be registered when the company files a SB2 with the SEC. You will
      be
      given 150,000 shares immediately and 150,000 shares will be held in escrow
      along
      with a signed stock power and released to you on the day of your first
      anniversary with the company.

     

    (vi)
      Bonus Participation: The company will pay an incentive bonus of 1.5% of pretax
      profits on the sale of all Hilton related products. This bonus will be paid
      the
      following day after the company’s 10KSB annual report is filed with the
      SEC.

    

      Private
        & Confidential

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    4. NON-COMPETITION
      AND NON-SOLICITATION.

     

    (a) Employee
      acknowledges that during the course of Employee’s employment Employee will
      receive confidential and proprietary information from and concerning the
      Company. Employee also acknowledges that the Company will make substantial
      investments in the development of the Company’s goodwill and in Employee’s
      professional development. The capital expended to develop this goodwill directly
      benefits Employee and should continue to do so in the event that the
      relationship between the Company and Employee is terminated. Likewise, the
      Company has conferred and will confer a direct economic benefit on Employee.
      Employee agrees that the Company is entitled to protect these business interests
      and investments and to prevent Employee from using or taking advantage of the
      foregoing economic benefits to the Company’s detriment.

     

    (b) Employee
      agrees that, except for services and duties performed for or on behalf of the
      Company according to this Agreement, Employee will not, during the period of
      Employee’s employment with the Company, and for a period (the “Restricted
      Period”) of one (1) year immediately following the termination of Employee’s
      employment under this Agreement, for any reason whatsoever, directly or
      indirectly, for himself or on behalf of or in conjunction with any other person,
      persons, company, partnership, corporation, association, enterprise, venture
      or
      business of whatever nature: 

     

    (i) engage,
      as an officer, director, shareholder, owner, partner, joint venturer, lender
      or
      in a managerial capacity, whether as an employee, independent contractor, agent,
      consultant or advisor or as a sales representative, or similar business in
      direct competition with those aspects of the business of the Company or any
      subsidiary of the Company, with which Employee has had any involvement, within
      United
      States of
      America, Canada and all other countries in which customers of the Company have
      access to the world wide web (the “Territory”); 

     

    (ii) 
      solicit
      any person who is, at that time, or who has been within one (1) year prior
      to
      that time, an employee of the Company for the purpose or with the intent of
      enticing such employee away from or out of the employ of the
      Company;

     

    (iii) solicit
      any person or entity which is, at that time, or which has been within one (1)
      year prior to that time, a customer, doctor, service provider or supplier of
      the
      Company for the purpose of soliciting or selling products or services in direct
      competition with those aspects of the business of the Company or any subsidiary
      of the Company with which Employee has had any involvement, within the
      Territory; or

     

    (iv) solicit
      any prospective acquisition candidate, on Employee’s own behalf or on behalf of
      any competitor or potential competitor, which candidate was, to Employee’s
      knowledge, either called upon by the Company or for which the Company made
      an
      acquisition analysis, for the purpose of acquiring such entity. Notwithstanding
      the above, the foregoing covenant shall not be deemed to prohibit Employee
      from
      acquiring as an investment not more than two percent (5%) of the capital stock
      of a competing business, whose stock is traded on a national securities exchange
      or over-the-counter.

    

    Private
      & Confidential

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (c) In
      recognition of the substantial nature of such potential damages and the
      difficulty of measuring economic losses to the Company as a result of a breach
      of the foregoing covenants, and because of the immediate and irreparable damage
      that could be caused to the Company for which they would have no other adequate
      remedy, Employee agrees that in the event of breach by Employee of the foregoing
      covenant, the Company shall be entitled to specific performance of this
      provision and co-injunctive and other equitable relief.

     

    (d) It
      is
      agreed by the parties that the foregoing covenants in this paragraph 4 impose
      a
      reasonable restraint on Employee in light of the activities and business of
      the
      Company on the date of the execution of this Agreement and the current plans
      of
      the Company and Employee that such covenants be construed and enforced in
      accordance with the changing activities, business and locations of the Company
      throughout the term of this Agreement, whether before or after the date of
      termination of the employment of Employee.

     

    (e) All
      of
      the covenants in this paragraph 4 shall be construed as an agreement independent
      of any other provision in this Agreement, and the existence of any claim or
      cause of action of Employee against the Company, whether predicated on this
      Agreement or otherwise, shall not constitute a defense to the enforcement by
      the
      Company of such covenants. Further, this paragraph 4 shall survive the
      termination of this Agreement and the termination of Employee’s employment with
      the Company. It is specifically agreed that the period of one (1) year following
      termination of employment stated at the beginning of this paragraph 4, during
      which the agreements and covenants of Employee made in this paragraph 4
      shall be effective, shall be computed by excluding from such computation any
      time during which Employee is in violation of any provision of this paragraph
      4.

     

    5. TERMINATION;
      RIGHTS ON TERMINATION. This
      Agreement and Employee’s employment may be terminated for any one of the
      following causes: 

     

    (a) DEATH.
      The
      death of Employee shall immediately terminate this Agreement with no severance
      compensation due to Employee’s estate, heirs or other descendants or
      representatives.

     

    (b) DISABILITY.
      If, as
      a result of incapacity due to physical or mental illness or injury, Employee
      shall have been absent from Employee’s full-time duties hereunder for three (3)
      consecutive months, then thirty (30) days after receiving written notice (which
      notice may occur before or after the end of three (3) month period, but which
      shall not be effective earlier than the last day of three (3) month period),
      the
      Company may terminate Employee’s employment hereunder provided Employee is
      unable to resume Employee’s full-time duties at the conclusion of such notice
      period. Also, Employee may terminate Employee’s employment hereunder
      if his health
      should become impaired to an extent that makes the continued performance of
      Employee’s duties hereunder hazardous to Employee’s physical or mental health or
      life, provided that Employee shall have furnished the Company with a written
      statement from a qualified doctor to such effect and provided, further, that,
      at
      the Company’s request made within thirty (30) days of the date of such written
      statement, Employee shall submit to an examination by a doctor selected by
      the
      Company who is reasonably acceptable to Employee or Employee’s doctor and such
      doctor shall have concurred in the conclusion of Employee’s doctor. In the event
      this Agreement is terminated as a result of Employee’s disability, Employee
      shall receive from the Company Employee’s base salary at the rate then in
      effect, payable at the Company’s regular and customary intervals for the payment
      of salaries as then in effect, less any amounts Employee might receive under
      the
      Company’s disability insurance policy, if any, for whatever time period is
      remaining under the Term.

    

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    (c) CAUSE.
      The
      Company may, in its sole and absolute discretion, terminate the employment
      of
      Employee hereunder immediately upon after delivery of written notice to
      Employee, or at such later time as the Company may specify in such notice,
      for
“Cause.” As used in this Agreement “Cause” includes, but is not limited to, the
      following: (1) Employee’s willful and material breach of this Agreement; (2)
      Employee’s gross negligence in the performance, or intentional nonperformance,
      (continuing for ten (10) days after receipt of written notice of need to cure)
      of any of Employee’s material duties and responsibilities hereunder; (3)
      Employee’s willful dishonesty or fraud, whether or not with respect to the
      business or affairs of the Company, which affects the operations, property
      or
      reputation of the Company; (4) Employee’s conviction of a felony crime; (5)
      chronic alcohol or illegal drug abuse by Employee; (6) Employee’s willful injury
      to any independent contractor, employee or agent of the Company, or to any
      other
      person in the course of Employee’s performance of services for the Company; or
      (7) The Board’s determination that the Company’s business model and direction
      are failing to perform as expected standards and must be changed. (8) The
      Company files for protection under the Bankruptcy laws. (9) If Employee sexually
      harasses any employee, agent or contractor of the Company or commits any act
      which otherwise creates an offensive work environment for employees, agents
      or
      contractors of the Company.

     

    The
      Company shall not be limited to termination as a remedy for any damaging,
      injurious, improper or illegal act by Employee, but may also seek damages,
      injunction, or such other remedy as the Company may deem appropriate under
      the
      circumstances. If Employee’s employment is terminated for Cause, Employee agrees
      to vacate the Company’s offices on or before the effective date of the
      termination and to return and deliver to the Company at such time all Company
      property. In the event of a termination for Cause, as enumerated above, Employee
      shall have no right to any severance compensation.

     

    (d) WITHOUT
      CAUSE.
      At any
      time after the commencement of employment, provided the Company does not have
      Cause to terminate Employee pursuant to (c) above, Employee may, without Cause,
      terminate this Agreement and Employee’s employment, effective ninety (90) days
      after written notice is provided to the Company. Employee may only be terminated
      without Cause by the Company during the Term hereof if such termination is
      approved by a majority of the members of the Board. Should Employee be
      terminated by the Company without Cause during the Term, Employee shall be
      entitled to receive from the Company (12) months severance or if less than
      (12)
      months remains on employment contract then the remaining months left on the
      contract (at Employee's then current base) payable over the course of the year
      following such termination. The severance compensation shall be paid in
      accordance with the Company’s standard payroll procedures but not less than
      monthly. If Employee resigns or otherwise terminates Employee’s employment
      without cause pursuant to this paragraph 5(d), Employee shall receive no
      severance compensation. 

     

    (e) TERMINATION
      BY EXECUTIVE UPON CHANGE IN CONTROL.
      Upon
      the termination of the Employee's employment hereunder by the Employee (i)
      within 360 days after the occurrence of a "Change in Control" as specified
      in
      Section 5(e)(A) hereof, the Company shall (i) continue to pay to the Employee
      the base salary through the effective date of termination specified in such
      notice and. In addition, upon such termination, all options to purchase vested
      shares of the Company’s common stock, if any, shall accelerate and become
      immediately exercisable. 

    

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    (A) For
      purposes of this Agreement, a "Change in Control" shall mean:

    

    (i) The
      acquisition (other than by or from the Company), at any time after the date
      hereof, by any person, entity or "group" acquiring 51% or more of either the
      then outstanding shares of common stock or the combined voting power of the
      Company's then outstanding voting securities entitled to vote generally in
      the
      election of directors (together with such common stock, "Voting Securities");
      This does not apply to the contemplated reverse merger that the Company is
      currently in the process of completing; or

    

    (ii) Approval
      by the shareholders of the Company of a reorganization, merger or consolidation
      with respect to which persons who were the shareholders of the Company
      immediately prior to such reorganization, merger or consolidation do not,
      immediately thereafter, own more than 51% of the combined voting power entitled
      to vote generally in the election of directors of the reorganized, merged or
      consolidated company's then outstanding voting securities.

    

    (iii)
      Paragraphs (i) and (ii) above do not apply if the Company is sold or reorganized
      because of the failure of the Business model.

    

    (iv) Any
      purported termination by the Company of the Employee's employment other than
      as
      expressly permitted by this Agreement.

    

    (g) Upon
      termination of this Agreement for any reason provided above, Employee shall
      be
      entitled to receive all compensation earned and all benefits and reimbursements
      due through the effective date of termination. Additional compensation
      subsequent to termination, if any, will be due and payable to Employee only
      to
      the extent and in the manner expressly provided above. All other rights and
      obligations of the Company and Employee under this Agreement shall cease as
      of
      the effective date of termination, except that the Company’s obligations under
      paragraph 10 hereof and Employee’s obligations under paragraphs 4, 8, 9 and 11
      hereof shall survive such termination in accordance with their terms. Further,
      unless Employee and the Company otherwise agree in writing, upon termination
      of
      this Agreement for any reason, Employee will immediately resign from all
      directors, officer or other positions held with the Company.

     

    (h) If
      termination of Employee’s employment arises out of the Company’s failure to pay
      Employee the amounts to which he is entitled under this Agreement or as a result
      of any other material breach of this Agreement by the Company, as determined
      pursuant to the provisions of paragraph 16 below, the Company shall pay all
      amounts and damages to which Employee may be entitled as a result of such
      breach, including interest thereon and all reasonable legal fees and expenses
      and other costs incurred by Employee to enforce Employee’s rights hereunder.
      Further, none of the provisions of paragraph 4 hereof shall apply in the event
      this Agreement is terminated as a result of a material breach by the
      Company.

    

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    6. PARTICIPATION
      IN STOCK OPTION PLAN.  

     

    As
      inducement the Employee shall be granted an option (the "Option") to purchase
      300,000 shares of the Company's Common Stock, par value $.001 per share ("Common
      Stock"), at an exercise price of $1.00, the fair market value ot the Company’s
      common stock on November 15, 2006.. The Option may be exercised, in whole or
      in
      part, at employee’s option any time following execution and vesting requirements
      of this agreement. The Option shall expire five (5) years from the date hereof
      (the "Expiration Date"), and must be exercised, if at all, as shares become
      vested (See Exhibit A) or before the Expiration Date. The Option Agreement
      will
      be in substantially the form of Exhibit
      A
      attached
      hereto.

     

    7. PURCHASE
      RIGHT ON EMPLOYEE’S STOCK AND OPTIONS.

    

    (a) Irrevocable
      Option to Purchase.
      Upon
      (i) death or retirement of Employee (ii) the Company’s termination of Employee’s
      employment with the Company by reason of Disability, Employee or next of kin
      will have (90) days to exercise any outstanding vested options.

     

    8. COMPANY
      PROPERTY; INVENTIONS.

     

    (a) All
      records, designs, patents, business plans, financial statements, manuals,
      memoranda, lists, and other property delivered to or compiled by Employee by
      or
      on behalf of the Company or their representatives, vendors, or customers which
      pertain to the business of the Company shall be and remain the property of
      the
      Company, as the case may be, and be subject at all times to their discretion
      and
      control. Likewise, all correspondence, reports, records, charts, advertising
      materials, and other similar data pertaining to the business, activities, or
      future plans of the Company which is collected by Employee shall be delivered
      promptly to the Company without request by it upon termination of Employee’s
      employment.

     

    (b) Employee
      shall disclose promptly to the Company any and all significant conceptions
      and
      ideas for inventions, improvements, and valuable discoveries, whether patentable
      or not, which are conceived or made by Employee, solely or jointly with another,
      during the period of employment, and which are directly related to the business
      or activities of the Company and which Employee conceives as a result of
      Employee’s employment by the Company. Employee hereby assigns and agrees to
      assign all of Employee’s interests therein to the Company or its nominee.
      Whenever requested to do so by the Company, Employee shall execute any and
      all
      applications, assignments, or other instruments that the Company shall deem
      necessary to apply for and obtain Letters Patent of the United States or any
      foreign country or to otherwise protect the Company’s interest
      therein.

     

    9. CONFIDENTIALITY
      AND PROPRIETARY INFORMATION.

     

    (a) Acknowledgement.
      Employee acknowledges and agrees that in the course of rendering services to
      the
      Company and its customers, Employee will have access to and will become
      acquainted with confidential and proprietary information about the professional,
      business and financial affairs of the Company, its affiliates and its vendors,
      suppliers and customers, and that Employee may have contributed to or may in
      the
      future contribute to such information. Employee further recognizes that Employee
      is being employed as a key employee, that the Company is engaged in a highly
      competitive business, and that the success of the Company in the marketplace
      and
      business depends upon its goodwill and reputation for integrity, quality and
      dependability. Employee recognizes that in order to guard the legitimate
      interests of the Company it is necessary for the Company to protect all such
      confidential and proprietary information, goodwill and reputation.

    

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    (b) Proprietary
      Information.
      In the
      course of Employee’s service to the Company, Employee may have access to
      confidential know-how, business documents or information, marketing data, client
      lists and trade secrets which are confidential. Such information shall
      hereinafter be called “Proprietary Information” and shall include any and all
      items enumerated in the preceding sentence which come within the scope of the
      business activities of the Company as to which Employee has had or may have
      access, whether previously existing, now existing or arising hereafter, whether
      or not conceived or developed by others or by Employee alone or with others
      during the period of his service to the Company, and whether or not conceived
      or
      developed during regular working hours. “Proprietary Information” shall not
      include any information which is in the public domain during the period of
      service by Employee or becomes public thereafter, provided such information
      is
      not in the public domain as a consequence of disclosure by Employee in violation
      of this Agreement.

     

    (c) Fiduciary
      Obligations.
      Employee agrees and acknowledges that the Proprietary Information is of critical
      importance to the Company and a violation of this Section 8 will seriously
      and
      irreparably impair and damage the Company’s business. Employee therefore agrees,
      while he is an employee of the Company and at all times thereafter, to keep
      all
      Proprietary Information strictly confidential.

     

    (d) Non-Disclosure.
      Except
      as required by law or order of any court or governmental entity or in connection
      with the proper performance of his duties hereunder, Employee shall not
      disclose, directly or indirectly (except as required by law), any Proprietary
      Information to any person other than (a) the Company, (b) persons who are
      authorized employees of the Company at the time of such disclosure, (c) such
      other persons, including prospective investors or lenders, to whom Employee
      has
      been instructed to make disclosure by the Company’s Board, or (d) Employee’s
      counsel, so long as such counsel agrees to keep all Proprietary Information
      confidential (in the case of clauses (b) and (c), only to the extent required
      in
      the course of Employee’s service to the Company). Upon any termination of
      Employee’s employment hereunder, Employee shall deliver to the Company all
      notes, letters, documents, tapes, discs, recorded data and records which may
      contain Proprietary Information which are then in Employee’s possession or
      control and shall not retain, use, or make any copies, summaries or extracts
      thereof.

     

    10. INDEMNIFICATION.
      In
      the
      event Employee is made a party to any threatened, pending, or completed action,
      suit, or proceeding, whether civil, criminal, administrative, or investigative
      (other than an action by the Company against Employee), by reason of the fact
      that Employee is or was performing services under this Agreement, then the
      Company shall indemnify Employee against all expenses (including reasonable
      attorneys’ fees), judgments, fines, and amounts paid in settlement, as actually
      and reasonably incurred by Employee in connection therewith. In the event that
      both Employee and the Company are made a party to the same third-party action,
      complaint, suit, or proceeding, the Company agrees to engage competent legal
      representation, and Employee agrees to use the same representation, provided
      that if counsel selected by the Company shall have a conflict of interest that
      prevents such counsel from representing Employee, Employee may engage separate
      counsel and the Company shall pay all reasonable attorneys’ fees of such
      separate counsel. Further, while Employee is expected at all times to use
      Employee’s best efforts to faithfully discharge his duties under this Agreement,
      Employee cannot be held liable to the Company for errors or omissions made
      in
      good faith where Employee has not exhibited gross, willful and wanton negligence
      and misconduct or performed criminal and fraudulent acts which materially damage
      the business of the Company. The employee is hereby further indemnified pursuant
      to exhibit “B” attached hereto. 

    

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    11. REPRESENTATIONS
      OF EMPLOYEE. Employee
      hereby represents and warrants to the Company that the execution of this
      Agreement by Employee and his employment by the Company and the performance
      of
      Employee’s duties hereunder will not violate or be a breach of any agreement
      with a former employer, client, or any other person or entity. Further, Employee
      agrees to indemnify the Company for any claim, including but not limited to
      attorneys’ fees and expenses of investigation, by any such third party that such
      third party may now have or may hereafter come to have against the Company
      based
      upon or arising out of any noncom petition agreement, invention or secrecy
      agreement between Employee and such third party which was in existence as of
      the
      date of this Agreement.

     

    Employee
      has and will continue to truthfully disclose to the Company the following
      matters, whether occurring, at any time during the five (5) years immediately
      preceding the date of this Agreement or at any time during the term of this
      Agreement:

     

    (1) any
      criminal complaint, indictment or criminal proceeding in which Employee is
      named
      as a defendant;

     

    (2) any
      allegation, investigation, or proceeding, whether administrative, civil or
      criminal, against Employee by any licensing authority or industry association;
      and

     

    (3) any
      allegation, investigation or proceeding, whether administrative, civil, or
      criminal, against Employee for violating professional ethics or standards,
      or
      engaging in illegal, immoral or other misconduct (of any nature or degree),
      relating to the business of the Company.

     

    12. ASSIGNMENT;
      BINDING EFFECT. This
      Agreement shall inure to the benefit of and be binding on Employee and the
      Company and Employee’s and the Company’s respective heirs, successors and
      assigns; provided,
      however,
      that
      Employee shall have no right to assign Employee’s rights or duties under this
      contract to any other person. In the event of the sale, merger or consolidation
      of the Company, Employee specifically agrees that the Company may assign the
      Company’s rights and obligations hereunder to the Company’s successor, assign or
      purchaser. In addition, and in any event, the Company may, at any time, assign
      the Company’s rights and obligations under this Agreement to any person that is
      an affiliate of the Company or to any person which, after any such assignment,
      employs at least 50% of the employees employed by the Company immediately prior
      to the assignment.

     

    13. COMPLETE
      AGREEMENT; AMENDMENTS. This
      Agreement supersedes any other agreements or understandings, written or oral,
      among the Company and Employee, and Employee has no oral representations,
      understandings or agreements with the Company or any of its officers, directors,
      or representatives covering the same subject matter as this Agreement. This
      written Agreement is the final, complete, and exclusive statement and expression
      of the agreement between the Company and Employee and of all the terms of this
      Agreement, and it cannot be varied, contradicted, or supplemented by evidence
      of
      any prior or contemporaneous oral or written agreements. This written Agreement
      may not be later modified except by a written instrument signed by a duly
      authorized officer of the Company and Employee, and no term of this Agreement
      may be waived except by a written instrument signed by the party waiving the
      benefit of such term.

    

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    14. NOTICE.
      Whenever
      any notice is required hereunder, it shall be given in writing addressed as
      follows:

    

    
      	
              To
                the Company:

            	
              OmniReliant
                Corporation

            
	 	
              c/o
                Chris Phillips, interim CEO

            
	 	
              4902
                Eisenhower Blvd., Suite 185

            
	 	
              Tampa,
                FL 33634

            
	 	 
	
              To
                Employee:

            	
              Paul
                Morrison

            
	 	
              34
                Milton Ave

            
	 	
              Nutley,
                NJ 07110

            

    

     

    Notice
      shall be deemed given and effective three (3) days after the deposit in the
      U.S.
      mail of a writing addressed as above and sent first class mail, certified,
      return receipt requested, or, in any other case, when actually received. Either
      party may change the address for notice by notifying the other party of such
      change in accordance with this paragraph 14.

     

    15. SEVERABILITY.
      If
      any
      portion of this Agreement is held invalid or inoperative, the other portions
      of
      this Agreement shall be deemed valid and operative and, so far as is reasonable
      and possible, effect shall be given to the intent manifested by the portion
      held
      invalid or inoperative. Employee and the Company agree and acknowledge that
      the
      provisions of paragraphs 4 and 9 are material and of the essence to this
      Agreement. If the scope of any restriction or covenant contained therein should
      be or become too broad or extensive to permit enforcement thereof to its fullest
      extent, then such restriction or covenant shall be enforced to the maximum
      extent permitted by law, and Employee hereby consents and agrees that (a) it
      is
      the parties intention and agreement that the covenants and restrictions
      contained therein be enforced as written, and (b) in the event a court of
      competent jurisdiction should determine that any restriction or covenant
      contained therein is too broad or extensive to permit enforcement thereof to
      its
      fullest extent, the scope of any such restriction or covenant may be modified
      accordingly in any judicial proceeding brought to enforce such restriction
      or
      covenant, but should be modified to permit enforcement of the restrictions
      and
      covenants contained herein to the maximum extent the court, in its judgment,
      will permit.

    

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    16. ARBITRATION.
      Any
      unresolved dispute or controversy arising under or in connection with this
      Agreement or Employee’s employment with the Company (or any termination thereof)
      shall be settled exclusively by arbitration, conducted before a panel of three
      (3) arbitrators in Essex County, NJ, in accordance with the rules of the
      American Arbitration Association then in effect. A decision by a majority of
      the
      arbitration panel shall be final and binding. Judgment may be entered on the
      arbitrators’ award in any court having jurisdiction. OmniReliant shall pay the
      reasonable fees and expenses of any arbitration proceeding in connection with
      this Agreement.

     

    17. GOVERNING
      LAW. This
      Agreement shall in all respects be construed according to the laws of the State
      of Florida.

     

    18. HEADINGS.
      The
      paragraph headings herein are for reference purposes only and are not intended
      in any way to describe, interpret, define, or limit the extent or intent of
      the
      Agreement or of any part hereof.

     

    19. COUNTERPARTS.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original and all of which together shall constitute but one and the same
      instrument.IN
      WITNESS WHEREOF,
      the
      parties hereto have made and entered into this Agreement as of the date first
      above written.

    
      	 	 	 
	 	
              The
                Company:

              OmniReliant
                Corporation

            
	 
 	 
 	 
 
	
            	By  	/s/ Chris Phillips 
	 	
              
Name:Chris
              Phillips 
	 	
              Title:
                interim CEO

            

    

     

    
      	 	 	 
	 	
              Employee:

            
	 
 	 
 	 
 
	
            	
            	
              /s/
                Paul Morrison

            
	 	
              

              Paul
                Morrison

            
	 	
            

    

     

    
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