Document:

Exhibit
      10.4

     

    GUARANTY
      AGREEMENT

    
       

      THIS
        GUARANTY AGREEMENT (this “Guaranty”)
        is
        made and entered into as of the 19th day of October, 2007, by the undersigned
        guarantors, jointly and severally (the “Guarantors”),
        for
        the benefit of GUARANTY BANK, a state chartered trust company with banking
        powers (the “Lender”).

       

      A. DECORIZE,
        INC., a Delaware corporation, GUILDMASTER, INC., a Missouri corporation,
        and
        FAITH WALK DESIGNS, INC., a Missouri corporation (each individually and
        collectively, the “Borrower”),
        has
        executed a Revolving Promissory Note of near or even date herewith (the
“Note”),
        in an
        amount not to exceed Three Million and 00/100 Dollars ($3,000,000.00), in
        favor
        of Lender, evidencing a loan in such maximum principal amount (the “Loan”),
        which
        Loan is to be evidenced by a Revolving Promissory Note (the “Note”)
        of
        even date herewith and secured by a Security Agreement (the “Security
        Agreement”)
        of
        even date herewith, which encumbers the collateral (the “Collateral”)
        described therein. The Note, Credit Agreement, Security Agreement and all
        other
        documents delivered in connection with closing the Loan are referred to as
        “Loan
        Documents.” The
        terms
        of the Loan Documents are incorporated into this Guaranty by reference.

      

      B. Each
        Guarantor has a direct or indirect interest in Borrower and expects to benefit
        directly and indirectly by the Loan, and is willing to execute and deliver
        this
        Guaranty Agreement in favor of Lender as an inducement to Lender to make
        the
        Loan to Borrower.

      

      C. Lender
        is
        unwilling to make the Loan to Borrower unless, among other conditions, the
        Guarantors execute and deliver to Lender this Guaranty.

      

      Guaranty

      

      NOW,
        THEREFORE, in consideration of the Lender’s making the Loan to Borrower and in
        consideration of other benefits accruing to the Guarantors by virtue of the
        Loan
        transaction, each Guarantor hereby makes the following covenants, agreements,
        representations and warranties to Lender and to all future holders of the
        Note
        and Loan Documents (which parties are hereinafter included within the defined
        term “Lender” as used herein) and hereby covenant and agree with Lender as
        follows:

      

      1. Guaranty.
        Each
        Guarantor irrevocably and unconditionally, jointly and severally, guarantees
        to
        the Lender full payment when due (whether by acceleration or otherwise) of
        the
        Note, together with the full and prompt payment of, and the full and prompt
        performance of, all the other liabilities and obligations of the Borrower
        incurred or to be incurred under the Loan Documents, and the full and prompt
        payment and performance of any other liabilities and obligations of Borrower
        to
        Lender of any and every nature whatsoever, whether now existing or hereinafter
        arising (all such liabilities and obligations, and the obligations contained
        in
        this Guaranty are collectively called the “Guaranteed
        Obligations”).
        This
        Guaranty is a guaranty of payment and not a guaranty of collection. The
        Guaranteed Obligations include any costs and expenses, including reasonable
        attorneys’ fee, investigation and court costs incurred by the Lender in
        enforcing this Guaranty and the enforcement of the Loan Documents.

      

      2. Absolute
        Liability.
        Each
        Guarantor irrevocably and unconditionally, jointly and severally, guarantees
        to
        the Lender that the Guaranteed Obligations will be paid strictly in accordance
        with the terms of the Note, the Loan Documents and any other document entered
        into between Borrower and Lender governing the performance thereof, regardless
        of any law, regulation, or order now or hereafter in effect in any jurisdiction
        affecting any of such terms or the rights of Lender with respect thereto.
        The
        liability of Guarantors under this Guaranty with regard to the Guaranteed
        Obligations shall be fully enforceable, irrespective of:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      a. Any
        failure by Lender to give notice to any or all of the Guarantors of the
        occurrence of an event of default under the terms and provisions of the Loan
        Documents;

      

      b. Any
        changes or extensions of the time, manner, or place of payment of, or in
        any
        other term of, all or any of the Guaranteed Obligations or any other amendment
        or waiver of or any consent to departure from the Note, the Loan Documents,
        or
        this Guaranty;

      

      c. Any
        exchange, release, or nonperfection of any collateral, or any release or
        amendment or waiver of or consent to departure from any other guarantee,
        for all
        or any of the Guaranteed Obligations, or the taking of or omission to take
        any
        action under the Loan Documents or this Guaranty;

      

      d. Any
        invalidity or unenforceability of any term or provision of the Loan
        Documents;

      

      e. Any
        change in ownership of the Borrower or any member of Borrower;

      

      f. Any
        bankruptcy, insolvency, or reorganization of, or other similar proceedings
        involving the Borrower; or

      

      g. Any
        other
        event or circumstance that might otherwise constitute a defense available
        to, or
        a discharge of, Borrower in respect of the Guaranteed Obligations or Guarantors
        in respect of this Guaranty.

      

      3. Continuing
        Obligation.
        Each
        Guarantor irrevocably and unconditionally, jointly and severally, agrees
        that to
        the extent Borrower makes a payment or payments to Lender, which payment
        or
        payments or any part thereof are subsequently invalidated, declared to be
        fraudulent or preferential, set aside, or required (for any of the foregoing
        reasons or for any other reason) to be repaid or paid over to a custodian,
        trustee, receiver, or any other party under the Bankruptcy Code or any other
        state or federal law, statute, ordinance or regulation, or by order of any
        court, then to the extent of such payment or repayment, the obligation or
        part
        thereof intended to be satisfied shall be revived and continued in full force
        and effect as if said payment had not been made, and each Guarantor shall
        be
        irrevocably and unconditionally, jointly and severally, primarily liable
        for
        this obligation.

      

      4. Liability
        Not Contingent.
        Each
        Guarantor agrees that the liability of Guarantors in respect of this Guaranty
        shall be immediate and shall not be contingent upon the exercise or enforcement
        by Lender of whatever remedies it may have against Borrower or any other
        guarantor.

      

      5. No
        Reliance Upon Representations.
        Each
        Guarantor jointly and severally represents and warrants that each Guarantor
        is
        fully aware of the financial condition of Borrower. Guarantors deliver this
        Guaranty based solely upon their own independent investigation and in no
        part
        upon any representation or statement of Borrower with respect thereto.
        Guarantors are in a position to obtain, and hereby assume full responsibility
        for obtaining, any additional information concerning the financial condition
        of
        Borrower as Guarantors may deem material to their obligations under this
        Guaranty.

      

      6. Representations
        and Warranties.
        Each
        Guarantor jointly and severally represents and warrants to, and agrees with,
        Lender as follows, all of which shall survive the execution and delivery
        of this
        Guaranty:

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      a. This
        Guaranty has been duly executed and delivered by Guarantors, constitutes
        the
        legal, valid, and binding obligation of Guarantors enforceable against
        Guarantors in accordance with its terms. This Guaranty does not violate any
        law,
        regulation, governmental requirement, judgment, order, or decree or any
        agreement binding on any Guarantor.

      

      b. There
        are
        no actions, suits, claims, proceedings, or to the knowledge of any Guarantor,
        investigations, pending or threatened against, relating to, or affecting
        any
        Guarantor or any of their properties.

      

      No
        representation or warranty by Guarantors contained in this Guaranty, and
        no
        statement contained in any other document, certificate, or written statement
        furnished to Borrower by or on behalf of Guarantors in connection herewith
        and
        therewith, contains any untrue statement of a material fact, or omits to
        state
        any material fact necessary, in light of the circumstances under which it
        was
        made, to make the statements herein or therein not misleading.

      

      7. Waivers
        of Guarantors.
        Each
        Guarantor hereby waives presentment, demand and protest; notice of acceptance
        of
        this Guaranty, of any default and of protest, dishonor or other action taken
        in
        reliance hereon; any right or defense Guarantors otherwise might have or
        be
        entitled to assert by reason of any failure (intentional or otherwise) to
        perfect or to continue the perfection of, or to obtain or continue first
        priority of, any security interest on any collateral securing in whole or
        in
        part any portion of the guaranteed obligations; and any and all demands and
        notices of any kind in connection with the protection of or realization upon
        any
        of the guaranteed obligations.

      

      8. No
        Subrogation Rights.
        Guarantors will not exercise any rights that they may acquire by way of
        subrogation under this Guaranty, by any payment made under this Guaranty
        or
        otherwise, until all the Guaranteed Obligations and all of Guarantors’
obligations under this Guaranty shall have been paid in full. If any amount
        shall be paid to any Guarantor on account of these subrogation rights at
        any
        time prior to as aforesaid, such amount shall be held in trust for the benefit
        of Lender and shall forthwith be paid to Lender to be credited and applied
        upon
        the Guaranteed Obligations, whether matured or unmatured.

      

      9. Benefit
        and Binding Effect.
        This
        Guaranty shall be binding upon each Guarantor, and their respective successors
        and assigns, and shall inure to the benefit of and be enforceable by Lender
        and its respective successors, transferees and assigns. Without limiting
        the
        generality of the foregoing, Lender may assign or otherwise transfer the
        Note
        and Loan Documents held by it or any interest therein held by it to any other
        person, and such other person shall thereupon become vested with all the
        rights
        in respect thereof granted to Lender in this Guaranty or otherwise.

      

      10. Severability.
        In case
        any clause, provision or section of this Guaranty is for any reason held
        to be
        illegal, invalid or inoperable, such illegality, invalidity or inoperability
        shall not affect the remainder thereof.

      

      11. Governing
        Law.
        This
        Guaranty and the rights and obligations of the Lender and Guarantors under
        it
        shall be governed by and construed in accordance with the law of Missouri.
        Each
        Guarantor hereby irrevocably submits to the nonexclusive jurisdiction of
        any
        court in Greene County, Missouri, or Federal court sitting in Greene County,
        Missouri in any action or proceeding in connection with the enforcement of
        any
        of the obligations of Guarantors under this Guaranty.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      12. Notices.
        All
        notices, consents or communications required or permitted to be given under
        this
        Guaranty shall be in writing and shall be deemed to have been properly given
        and
        received (i) if sent by hand delivery, then upon delivery, (ii) if sent by
        overnight courier or United States Express Mail, then one (1) day after
        dispatch, and (iii) if mailed by certified or registered U.S. mail, postage
        prepaid and return receipt requested, then two (2) days after deposit in
        the
        mail. All such notices and communications shall be given to the parties at
        their
        respective addresses set forth below; however, Lender shall have no liability
        to
        any party for failing to provide Borrower with any notice required or permitted
        to be given under this Guaranty, nor shall Lender’s failure to provide the
        Guarantors with any such notices prevent Lender from exercising its rights
        or
        pursuing any remedies under this Guaranty, the Note or any of the other Loan
        Documents. Either party may change the address by written notice to the
        other.

      

        
          	
                  Lender:

                	 	
                  Guaranty
                    Bank

                
	 	 	
                  1341
                    W. Battlefield

                
	 	 	
                  Springfield,
                    Missouri 65807

                
	 	 	
                  Attn:
                    Doug Thornsberry, Sr. Vice President

                
	 	 	
                  Facsimile:
                    (417) 520-6074

                
	 	 	 
	
                  With
                    a copy to:

                	 	
                  Blackwell
                    Sanders, LLP

                
	 	 	
                  901
                    St. Louis Street, Suite 1900

                
	 	 	
                  Springfield,
                    Missouri 65806

                
	 	 	
                  Attn:
                    Richard E. Walters

                
	 	 	
                  Facsimile
                    (417) 268-4040

                
	 	 	 
	
                  Guarantors:

                	 	
                  WestWay
                    Enterprises, Ltd.

                
	 	 	
                  c/o
                    Decorize, Inc.

                
	 	 	
                  1938
                    E. Phelps

                
	 	 	
                  Springfield,
                    Missouri 65802

                
	 	 	
                  Attn:
                    BJ Montle

                
	 	 	
                  Facsimile:
                    (417) 879-3330

                
	 	 	 
	 	 	
                  P.T.
                    Niaga Merapi

                
	 	 	
                  c/o
                    Decorize, Inc.

                
	 	 	
                  1938
                    E. Phelps

                
	 	 	
                  Springfield,
                    Missouri 65802

                
	 	 	
                  Attn:
                    BJ Montle

                
	 	 	
                  Facsimile:
                    (417) 879-3330

                
	 	 	 
	
                  With
                    a copy to:

                	 	
                  Hallett
                    & Perrin, P.C.

                
	 	 	
                  2001
                    Bryan Street, Suite 3900

                
	 	 	
                  Dallas,
                    Texas 75201

                
	 	 	
                  Attn.:
                    M. Christopher Miller

                
	 	 	
                  Facsimile:
                    (214) 922-4144

                

        

      

       

      13. Waiver
        of Jury Trial.
        EACH
        GUARANTOR HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING,
        DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR
        OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS
        GUARANTY OR ANY OTHER LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED
        THEREUNDER.

       

      [SIGNATURE
        PAGE FOLLOWS]

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF, Guarantors have caused this Guaranty to be executed and
        delivered as of the date set forth above.

     

    
      	 	 	 
	 	GUARANTORS: 
	 	 
	 	
              WESTWAY ENTERPRISES, LTD., a Hong Kong 

              corporation

            
	 
 	 
 	 
 
	 	By:  	/s/ Vikas V. Karode
	 	
               

              Name:      

            	
              
                

              

              Vikas V. Karode

            
	
            	Title: 	Director

    

     

     

    
      	 	 	 
	 	P.T. NIAGA MERAPI., an Indonesian
              corporation
	 
 	 
 	 
 
	 	By:          
              	/s/ Vikas V. Karode
	 	Name:  	
              
Vikas
              V. Karode
	 	Title: 	DirectorNEITHER
      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
      C-1 Warrant Certificate No. 1

    

    SERIES
      C-1 COMMON STOCK PURCHASE WARRANT

    

    To
      Purchase ________ Shares of Common Stock of

     

    OMNIRELIANT
      HOLDINGS, INC.

     

    THIS
      SERIES C-1 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 fifth (5th) anniversary of the Initial
      Exercise Date (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from OMNIRELIANT HOLDINGS, INC.,
      a
      Nevada corporation (the “Company”),
      up to
      ________ shares (the “Warrant
      Shares”)
      of
      Common Stock, par value $.00001 per share, of the Company (the “Common
      Stock”).
      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
      October 18, 2007, among the Company and the Holder.

     

    Section
      2. Exercise.

     

    
      
         

      

      
        Page
          1 of 15

        
          

        

      

      
         

      

    

     

    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 three (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
      three (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 within two (2) Trading Days
      of
      receipt of such notice. 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 $1.50,
      subject to adjustment hereunder (the “Exercise
      Price”).

     

    c)    Exercise
      Limitations.
      

     

    i. Holder’s
      Restrictions.
      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
      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 Series A 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(c)(i),
      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(c)(i)
      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. 

     

    
      
         

      

      
        Page
          2 of 15

        
          

        

      

      
         

      

    

    
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(c),
      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 (2) 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(c)(i)
      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(c)(i)
      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(c)(i)
      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. Notwithstanding
      anything herein to the contrary, this provision shall not apply to any Holder
      that has elected to waive this provision on its signature page to the
      Securities Purchase Agreement, on or before the date of closing.

     

    d)    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 Warrant 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 at Custodian (“DWAC”)
      system
      if the Company is a participant in such system, and otherwise by delivery to
      the
      address specified by the Holder in the Notice of Exercise, within five (5)
      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(d)(vii)
      prior to
      the issuance of such shares, have been paid. 

     

    
      
         

      

      
        Page
          3 of 15

        
          

        

      

      
         

      

    

     

    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
Section
      2(d)(ii)
      above by
      the Warrant Share Delivery Date, then the Holder will have the right to rescind
      such exercise.

     

    v.
      Obligation
      Absolute; Damages.
      The
      Corporation’s obligations to issue and deliver the certificates representing the
      Warrant Shares upon exercise of the Warrant in accordance with the terms hereof
      are absolute and unconditional, irrespective of any action or inaction by the
      Holder to enforce the same, any waiver or consent with respect to any provision
      hereof, the recovery of any judgment against any Person or any action to enforce
      the same, or any setoff, counterclaim, recoupment, limitation or termination,
      or
      any breach or alleged breach by the Holder or any other Person of any obligation
      to the Corporation or any violation or alleged violation of law by the Holder
      or
      any other person, and irrespective of any other circumstance which might
      otherwise limit such obligation of the Corporation to the Holder in connection
      with the issuance of such certificates representing the Warrant Shares. The
      Corporation shall issue the certificates representing the Warrant Shares or,
      if
      applicable, cash, upon a properly noticed exercise. If the Corporation fails
      to
      deliver to the Holder such certificate or certificates pursuant to Section
      2(d)
      within
      five (5) Trading Days of the Warrant Share Delivery Date applicable to such
      exercise, the Corporation shall pay to such Holder, in cash, as liquidated
      damages and not as a penalty, for each $1,000 of VWAP of the Common Stock,
      $10
      per Trading Day (increasing to $20 per Trading Day after ten (10) Trading Days
      after the Warrant Share Delivery Date) for each Trading Day after the Warrant
      Share Delivery Date until such certificates are delivered. 

     

    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.

     

    
      
         

      

      
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    vii.
      Charges,
      Taxes and Expenses.
      Issuance of certificates for Warrant Shares shall be made without charge to
      the
      Holder or other incidental expense in respect of the issuance of such
      certificate, 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;
      the assignment shall be subject to Section
      4
      below,
      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.

     

    e)    Cashless
      Exercise if no Registration Statement.
      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.

            

    

     

    Section
      3. Certain
      Adjustments.

     

    a)    Stock
      Dividends and Splits.
      If the
      Company, at any time while this Warrant is outstanding: (i) pays a stock
      dividend or otherwise makes 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),
      provided that this clause (i) shall not apply to shares of Common Stock issued
      solely in connection with dividends required to be paid under the terms and
      conditions of the Series A Preferred Stock, provided that the terms of such
      Series A Preferred Stock shall not have been amended since the date of this
      Agreement, (ii) subdivides outstanding shares of Common Stock into a larger
      number of shares, (iii) combines (including by way of reverse stock split)
      outstanding shares of Common Stock into a smaller number of shares, or (iv)
      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, sells, grants or otherwise issues (or announces any sale, grant
      or other issuance related to the foregoing) 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 to the
      Exercise Price 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 or issuances subject to Section
      3(a)
      above.
      The Company shall notify the Holder in writing, no later than the third
      (3rd)
      Trading
      Day following the issuance of any Common Stock or Common Stock Equivalents
      subject to this section, 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 this 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 as of 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, options 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, options 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(c)),
      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 as of 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, (i) the Company effects any merger
      or consolidation of the Company with or into another Person, (ii) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (iii) 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 (iv) 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 Holders.
      

     

    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 each Holder a notice setting forth the Exercise
      Price after such adjustment and setting forth a brief statement of the facts
      requiring such adjustment. 

     

    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 ten (10) 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
      ten
      (10) day period commencing on the date of such notice to the effective date
      of
      the event triggering such notice.

     

    
      
         

      

      
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    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,
      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.

     

    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.

     

    
      
         

      

      
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    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 (i)
      that
      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, (ii)
      that
      the
holder
      or
      transferee execute and deliver to the Company
      an
      investment letter in form and substance acceptable to the Company
      and
      (iii)
      that
      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) 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.
      

     

    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.

     

    
      
         

      

      
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    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.
      

     

    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, venue,
      jurisdiction, 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.

     

    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.

     

    
      
         

      

      
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    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 only 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.

     

    

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

     

    
      
         

      

      
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    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      officer thereunto duly authorized.

    

    Dated:
      October __, 2007

     

    
      	 	 	 
	 	OMNIRELIANT
              HOLDINGS, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
              Christopher Phillips
	 	
              Title: Chief
                Executive Officer

            

    

     

    
      
         

      

      
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    NOTICE
      OF EXERCISE

    

    TO:    OMNIRELIANT
      HOLDINGS, INC. (THE “COMPANY”)

    

    (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
      will be made in lawful money of the United States.

     

    (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 certifies that it 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:__________________________________________________________________________________

     

    
      
         

      

      
        Page
          14 of
          15

        
          

        

      

      
         

      

    

     

    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, _________ 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.

     

    
      
         

      

      
        Page
          15 of
          15

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