Document:

EX 10.2

    EXHIBIT
      10.2

     

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (this “Agreement”)
      is
      made and entered into as of May 25, 2007, between OmniReliant Holdings, Inc.,
      a
      Nevada corporation (the “Company”)
      and
      each of the several purchasers signatory hereto (each such purchaser, a
“Purchaser”
and,
      collectively, the “Purchasers”).

    

    This
      Agreement is made pursuant to the Securities Purchase Agreement, dated as of
      the
      date hereof, between the Company and each Purchaser (the “Purchase
      Agreement”).

    

    The
      Company and each Purchaser hereby agrees as follows:

    

    1.    Definitions

    

     Capitalized
      terms used and not otherwise defined herein that are defined in the Purchase
      Agreement shall have the meanings given such terms in the Purchase
      Agreement.
      As used
      in this Agreement, the following terms shall have the following
      meanings:

    

    “Advice”
shall
      have the meaning set forth in Section 6(d).

    

    “Effectiveness
      Date”
means,
      with respect to the Initial Registration Statement required to be filed
      hereunder, the 150th
      calendar
      day following the date hereof and with respect to any additional Registration
      Statements which may be required pursuant to Section 3(c), the 90th
      calendar
      day following the date on which an additional Registration Statement is required
      to be filed hereunder; provided,
      however,
      that in
      the event the Company is notified by the Commission that one or more of the
      above Registration Statements will not be reviewed or is no longer subject
      to
      further review and comments, the Effectiveness Date as to such Registration
      Statement shall be the fifth Trading Day following the date on which the Company
      is so notified if such date precedes the dates otherwise required
      above.

    

    “Effectiveness
      Period”
shall
      have the meaning set forth in Section 2(a).

    

    “Event”
shall
      have the meaning set forth in Section 2(b).

    

    “Event
      Date”
shall
      have the meaning set forth in Section 2(b).

    

    “Filing
      Date”
means,
      with respect to the Initial Registration Statement required hereunder, the
      90th
      calendar
      day following the date hereof and, with respect to any additional Registration
      Statements which may be required pursuant to Section 3(c), the earliest
      practical date on which the Company is permitted by SEC Guidance to file such
      additional Registration Statement related to the Registrable
      Securities.

    

    “Holder”
or
      “Holders”
means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Indemnified
      Party”
shall
      have the meaning set forth in Section 5(c).

    

    “Indemnifying
      Party”
shall
      have the meaning set forth in Section 5(c).

    

    “Initial
      Registration Statement”
means
      the initial Registration Statement filed pursuant to this
      Agreement.

    

    “Initial
      Shares”
means
      a
      number of Registrable Securities equal to the lesser of (i) the total number
      of
      Registrable Securities and (ii) one-third of the number of issued and
      outstanding shares of Common Stock that are held by non-affiliates of the
      Company on the day immediately prior to the filing date of the Initial
      Registration Statement.

    

    “Losses”
shall
      have the meaning set forth in Section 5(a).

    

    “Plan
      of Distribution”
shall
      have the meaning set forth in Section 2(a). 

    

    “Prospectus”
means
      the prospectus included in a Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated by the Commission pursuant to the Securities Act), as
      amended or supplemented by any prospectus supplement, with respect to the terms
      of the offering of any portion of the Registrable Securities covered by a
      Registration Statement, and all other amendments and supplements to the
      Prospectus, including post-effective amendments, and all material incorporated
      by reference or deemed to be incorporated by reference in such
      Prospectus.

    

    “Registrable
      Securities”
means
      (i) all the shares of Common Stock issuable upon conversion in full of the
      Preferred Stock (assuming on the date of determination the shares of Preferred
      Stock are converted in full without regard to any conversion limitations
      therein), (ii) all shares of Common Stock issuable as dividends on the Preferred
      Stock assuming all dividend payments are made in shares of Common Stock and
      the
      Preferred Stock is held for at least 3 years, (iii) all Warrant Shares (assuming
      on the date of determination the Warrants are exercised in full without regard
      to any exercise limitations therein), (iv) any additional shares of Common
      Stock
      issuable in connection with any anti-dilution provisions in the Preferred Stock
      or the Warrants (in each case, without giving effect to any limitations on
      conversion set forth in the Certificate of Designation or limitations on
      exercise set forth in the Warrant) and (v) any securities issued or issuable
      upon any stock split, dividend or other distribution, recapitalization or
      similar event with respect to the foregoing. 

    

    “Registration
      Statement”
means
      the registration statement required to be filed hereunder and any additional
      registration statements contemplated by Section 3(c), including (in each case)
      the Prospectus, amendments and supplements to such registration statement or
      Prospectus, including pre- and post-effective amendments, all
      exhibits

    
      
         

      

      
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    thereto,
      and all material incorporated by reference or deemed to be incorporated by
      reference in such registration statement.

    

    “Rule
      415”
means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended or interpreted from time to time, or any similar rule or
      regulation hereafter adopted by the Commission having substantially the same
      purpose and effect as such Rule.

    

    “Rule
      424”
means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended or interpreted from time to time, or any similar rule or
      regulation hereafter adopted by the Commission having substantially the same
      purpose and effect as such Rule.

    

    “Selling
      Shareholder Questionnaire”
shall
      have the meaning set forth in Section 3(a).

    

    “SEC
      Guidance”
means
      (i) any publicly-available written or oral guidance, comments, requirements
      or
      requests of the Commission staff and (ii) the Securities Act.

    

    2.    Shelf
      Registration

    

    (a) On
      or
      prior to each Filing Date, the Company shall prepare and file with the
      Commission a Registration Statement covering the resale of all or such maximum
      portion of the Registrable Securities as permitted by SEC Guidance (provided
      that the Company shall use diligent efforts to advocate with the Commission
      for
      the registration of all of the Registrable Securities in accordance with the
      SEC
      Guidance, including without limitation, the Manual of Publicly Available
      Telephone Interpretations D.29) that are not then registered on an effective
      Registration Statement for an offering to be made on a continuous basis pursuant
      to Rule 415. The Registration Statement shall be on Form S-3 (except if the
      Company is not then eligible to register for resale the Registrable Securities
      on Form S-3, in which case such registration shall be on another appropriate
      form in accordance herewith) and shall contain (unless otherwise directed by
      at
      least an 85% majority in interest of the Holders) substantially the
“Plan
      of Distribution”
      attached hereto as Annex
      A.
      Subject
      to the terms of this Agreement, the Company shall use its best efforts to cause
      a Registration Statement to be declared effective under the Securities Act
      as
      promptly as possible after the filing thereof, but in any event prior to the
      applicable Effectiveness Date, and shall use its best efforts to keep such
      Registration Statement continuously effective under the Securities Act until
      all
      Registrable Securities covered by such Registration Statement have been sold,
      or
      may be sold without volume restrictions pursuant to Rule 144(k), as determined
      by the counsel to the Company pursuant to a written opinion letter to such
      effect, addressed and acceptable to the Company’s transfer agent and the
      affected Holders (the “Effectiveness
      Period”).
      The
      Company shall telephonically request effectiveness of a Registration Statement
      as of 5:00 p.m. New York City time on a Trading Day. The Company shall
      immediately notify the Holders via facsimile or by e-mail of the effectiveness
      of a Registration Statement on the same Trading Day that the Company
      telephonically confirms effectiveness with the

    
      
         

      

      
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    Commission,
      which shall be the date requested for effectiveness of such Registration
      Statement. The Company shall, by 9:30 a.m. New York City time on the Trading
      Day
      after the effective date of such Registration Statement, file a final Prospectus
      with the Commission as required by Rule 424. Failure to so notify the Holder
      within 1 Trading Day of such notification of effectiveness or failure to file
      a
      final Prospectus as foresaid shall be deemed an Event under Section 2(b).
Notwithstanding
      any other provision of this Agreement and subject to the payment of liquidated
      damages pursuant to Section 2(b), if any SEC Guidance sets forth a limitation
      on
      the number of Registrable Securities permitted to be registered on a particular
      Registration Statement (and notwithstanding that the Company used diligent
      efforts to advocate with the Commission for the registration of all or a greater
      portion of Registrable Securities), unless otherwise directed in writing by
      a
      Holder as to its Registrable Securities, the number of Registrable Securities
      to
      be registered on such Registration Statement will first be reduced by
      Registrable Securities represented by Warrant Shares (applied, in the case
      that
      some Warrant Shares may be registered, to the Holders on a pro rata basis based
      on the total number of unregistered Warrant Shares held by such Holders), and
      second by Registrable Securities represented by Conversion Shares (applied,
      in
      the case that some Conversion Shares may be registered, to the Holders on a
      pro
      rata basis based on the total number of unregistered Conversion Shares held
      by
      such Holders); provided,
      however,
      that,
      prior to any reduction as set forth in this sentence in the number of
      Registrable Securities included in a Registration Statement, the number of
      shares of Common Stock set forth on Schedule 6(b) hereto which shall have been
      included on such Registration Statement shall be reduced by up to
      100%.

     

    (b) If:
      (i)
      the Initial Registration Statement is not filed on or prior to its Filing Date
      (if the Company files the Initial Registration Statement without affording
      the
      Holders the opportunity to review and comment on the same as required by Section
      3(a) herein, the Company shall be deemed to have not satisfied this clause
      (i)),
      or (ii) the Company fails to file with the Commission a request for acceleration
      of a Registration Statement in accordance with Rule 461 promulgated by the
      Commission pursuant to the Securities Act, within five Trading Days of the
      date
      that the Company is notified (orally or in writing, whichever is earlier) by
      the
      Commission that such Registration Statement will not be “reviewed” or will not
      be subject to further review, or (iii) prior to the effective date of a
      Registration Statement, the Company fails to file a pre-effective amendment
      and
      otherwise respond in writing to comments made by the Commission in respect
      of
      such Registration Statement within 10 Trading Days after the receipt of comments
      by or notice from the Commission that such amendment is required in order for
      such Registration Statement to be declared effective, or (iv) as to, in the
      aggregate among all Holders on a pro-rata basis based on their purchase of
      the
      Securities pursuant to the Purchase Agreement, a Registration Statement
      registering for resale all of the Initial Shares is not declared effective
      by
      the Commission by the Effectiveness Date of the Initial Registration Statement,
      or (v) all of the Registrable Securities are not registered for resale pursuant
      to one or more effective Registration Statements on or before November 1, 2007,
      or (vi) after the effective date of a Registration Statement, such Registration
      Statement ceases for any reason to remain continuously effective as to all
      Registrable Securities included in such Registration Statement, or the Holders
      are

    
      
         

      

      
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    otherwise
      not permitted to utilize the Prospectus therein to resell such Registrable
      Securities, for more than 10 consecutive calendar days or more than an aggregate
      of 15 calendar days (which need not be consecutive calendar days) during any
      12-month period (any such failure or breach being referred to as an
“Event”,
      and
      for purposes of clause (i), (iv) and (v) the date on which such Event occurs,
      and for purpose of clause (ii) the date on which such five Trading Day period
      is
      exceeded, and for purpose of clause (iii) the date which such 10 calendar day
      period is exceeded, and for purpose of clause (vi) the date on which such 10
      or
      15 calendar day period, as applicable, is exceeded being referred to as
“Event
      Date”),
      then,
      in addition to any other rights the Holders may have hereunder or under
      applicable law, on each such Event Date and on each monthly anniversary of
      each
      such Event Date (if the applicable Event shall not have been cured by such
      date)
      until the applicable Event is cured, the Company shall pay to each Holder an
      amount in cash or shares of Common Stock, or combination thereof, as partial
      liquidated damages and not as a penalty, equal to 1.5% of the aggregate purchase
      price paid by such Holder pursuant to the Purchase Agreement for any Registrable
      Securities then held by such Holder (calculated as if all convertible securities
      had been fully converted.) The parties agree that (1) the Company will not
      be
      liable for liquidated damages under this Agreement with respect to any Warrants
      or Warrant Shares, (2) in no event will the Company be liable for liquidated
      damages under this Agreement in excess of 1.5% of the aggregate Subscription
      Amount of the Holders in any 30-day period and (3) the maximum aggregate
      liquidated damages payable to a Holder under this Agreement shall be 9% of
      the
      aggregate Subscription Amount paid by such Holder pursuant to the Purchase
      Agreement. The price at which shares of Common Stock issuable in lieu of cash
      hereunder shall be equal to the lesser of (x) 90% (75% if not then registered)
      of the average of the 5 consecutive VWAPs immediately prior to the applicable
      Event Date, (y) 90% (75% if not then registered) of the average of the 5
      consecutive VWAPs immediately prior to the date such damages are due or (z)
      the
      then applicable Conversion Price. Notwithstanding anything herein to the
      contrary, payment in shares of Common Stock may only occur if during the period
      from the applicable Event Date until such issuance is made in full all of the
      Equity Conditions (as defined in the Certificate of Designation) have been
      met
      and the Company shall have given the Holder written irrevocable notice within
      2
      Trading Days of the Event Date. Subject to the terms and conditions herein,
      the
      decision whether to pay partial liquidated damages hereunder in shares of Common
      Stock or cash shall be at the discretion of the Company. Subject to the
      aforementioned conditions, failure to timely provide such written notice shall
      be deemed an election by the Company to pay the partial liquidated damages
      on
      such Event Date in cash. Except as otherwise provided herein, if at any time
      the
      Company pays partial liquidated damages partially in cash and partially in
      shares of Common Stock, then such payment shall be distributed ratably among
      the
      Holders based upon the subscription amount paid by each Holder. If the Company
      fails to pay any partial liquidated damages pursuant to this Section in full
      within seven days after the date payable, the Company will pay interest thereon
      at a rate of 18% per annum (or such lesser maximum amount that is permitted
      to
      be paid by applicable law) to the Holder, accruing daily from the date such
      partial liquidated damages are due until such amounts, plus all such interest
      thereon, are paid in full. The partial liquidated damages pursuant
      to

    
      
         

      

      
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    the
      terms
      hereof shall apply on a daily pro-rata basis for any portion of a month prior
      to
      the cure of an Event.

    

    3.    Registration
      Procedures.

    

    In
      connection with the Company’s registration obligations hereunder, the Company
      shall:

    

    (a) Not
      less
      than 5 Trading Days prior to the filing of each Registration Statement and
      not
      less than one Trading Day prior to the filing of any related Prospectus or
      any
      amendment or supplement thereto (including any document that would be
      incorporated or deemed to be incorporated therein by reference), the Company
      shall (i) furnish to each Holder copies of all such documents proposed to be
      filed, which documents (other than those incorporated or deemed to be
      incorporated by reference) will be subject to the review of such Holders and
      (ii) cause its officers and directors, counsel and independent certified public
      accountants to respond to such inquiries as shall be necessary, in the
      reasonable opinion of respective counsel to each Holder, to conduct a reasonable
      investigation within the meaning of the Securities Act. The Company shall not
      file a Registration Statement or any such Prospectus or any amendments or
      supplements thereto to which the Holders of a majority of the Registrable
      Securities shall reasonably object in good faith, provided that the Company
      is
      notified of such objection in writing no later than 5 Trading Days after the
      Holders have been so furnished copies of a Registration Statement or 1 Trading
      Day after the Holders have been so furnished copies of any related Prospectus
      or
      amendments or supplements thereto. Each Holder agrees to furnish to the Company
      a completed questionnaire in the form attached to this Agreement as Annex
      B
      (a
“Selling
      Shareholder Questionnaire”)
      not
      less than two Trading Days prior to the Filing Date or by the end of the fourth
      Trading Day following the date on which such Holder receives draft materials
      in
      accordance with this Section. 

    

    (b) (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to a Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep a Registration Statement continuously
      effective as to the applicable Registrable Securities for the Effectiveness
      Period and prepare and file with the Commission such additional Registration
      Statements in order to register for resale under the Securities Act all of
      the
      Registrable Securities; (ii) cause the related Prospectus to be amended or
      supplemented by any required Prospectus supplement (subject to the terms of
      this
      Agreement), and, as so supplemented or amended, to be filed pursuant to Rule
      424; (iii) respond as promptly as reasonably possible to any comments received
      from the Commission with respect to a Registration Statement or any amendment
      thereto and provide as promptly as reasonably possible to the Holders true
      and
      complete copies of all correspondence from and to the Commission relating to
      a
      Registration Statement (provided that the Company may excise any information
      contained therein which would constitute material non-public information as
      to
      any Holder which has not executed a confidentiality agreement with the Company);
      and (iv) comply in all material respects with the provisions of the Securities
      Act and the Exchange Act with respect to the disposition of all Registrable
      Securities covered by a

    
      
         

      

      
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    Registration
      Statement during the applicable period in accordance (subject to the terms
      of
      this Agreement) with the intended methods of disposition by the Holders thereof
      set forth in such Registration Statement as so amended or in such Prospectus
      as
      so supplemented.

    

    (c) If
      during
      the Effectiveness Period, the number of Registrable Securities at any time
      exceeds 100% of the number of shares of Common Stock then registered in a
      Registration Statement, then the Company shall file as soon as reasonably
      practicable, but in any case prior to the applicable Filing Date, an additional
      Registration Statement covering the resale by the Holders of not less than
      the
      number of such Registrable Securities. 

    

    (d) Notify
      the Holders of Registrable Securities to be sold (which notice shall, pursuant
      to clauses (iii) through (vi) hereof, be accompanied by an instruction to
      suspend the use of the Prospectus until the requisite changes have been made)
      as
      promptly as reasonably possible (and, in the case of (i)(A) below, not less
      than
      one Trading Day prior to such filing) and (if requested by any such Person)
      confirm such notice in writing no later than one Trading Day following the
      day
      (i)(A) when a Prospectus or any Prospectus supplement or post-effective
      amendment to a Registration Statement is proposed to be filed; (B) when the
      Commission notifies the Company whether there will be a “review” of such
      Registration Statement and whenever the Commission comments in writing on such
      Registration Statement; and (C) with respect to a Registration Statement or
      any
      post-effective amendment, when the same has become effective; (ii) of any
      request by the Commission or any other federal or state governmental authority
      for amendments or supplements to a Registration Statement or Prospectus or
      for
      additional information; (iii) of the issuance by the Commission or any other
      federal or state governmental authority of any stop order suspending the
      effectiveness of a Registration Statement covering any or all of the Registrable
      Securities or the initiation of any Proceedings for that purpose; (iv) of the
      receipt by the Company of any notification with respect to the suspension of
      the
      qualification or exemption from qualification of any of the Registrable
      Securities for sale in any jurisdiction, or the initiation or threatening of
      any
      Proceeding for such purpose; (v) of the occurrence of any event or passage
      of
      time that makes the financial statements included in a Registration Statement
      ineligible for inclusion therein or any statement made in a Registration
      Statement or Prospectus or any document incorporated or deemed to be
      incorporated therein by reference untrue in any material respect or that
      requires any revisions to a Registration Statement, Prospectus or other
      documents so that, in the case of a Registration Statement or the Prospectus,
      as
      the case may be, it will not contain any untrue statement of a material fact
      or
      omit to state any material fact required to be stated therein or necessary
      to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading; and (vi) of the occurrence or existence of any pending
      corporate development with respect to the Company that the Company believes
      may
      be material and that, in the determination of the Company, makes it not in
      the
      best interest of the Company to allow continued availability of a Registration
      Statement or Prospectus, provided that any and all of such information shall
      remain confidential to each Holder until such information otherwise becomes
      public, unless disclosure by a Holder is required by law; provided,
      further,
      that
      notwithstanding each Holder’s

    
      
         

      

      
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    agreement
      to keep such information confidential, each such Holder makes no acknowledgement
      that any such information is material, non-public information.

    

    (e) Use
      its
      best efforts to avoid the issuance of, or, if issued, obtain the withdrawal
      of
      (i) any order stopping or suspending the effectiveness of a Registration
      Statement, or (ii) any suspension of the qualification (or exemption from
      qualification) of any of the Registrable Securities for sale in any
      jurisdiction, at the earliest practicable moment.

    

    (f) Furnish
      to each Holder, without charge, at least one conformed copy of each such
      Registration Statement and each amendment thereto, including financial
      statements and schedules, all documents incorporated or deemed to be
      incorporated therein by reference to the extent requested by such Person, and
      all exhibits to the extent requested by such Person (including those previously
      furnished or incorporated by reference) promptly after the filing of such
      documents with the Commission; provided, that any such item which is available
      on the EDGAR system need not be furnished in physical form.

    

    (g) Subject
      to the terms of this Agreement, the Company hereby consents to the use of such
      Prospectus and each amendment or supplement thereto by each of the selling
      Holders in connection with the offering and sale of the Registrable Securities
      covered by such Prospectus and any amendment or supplement thereto, except
      after
      the giving of any notice pursuant to Section 3(d).

    

    (h) 
      The
      Company shall effect a filing with respect to the public offering contemplated
      by each Registration Statement (an “Issuer
      Filing”)
      with
      the National Association of Securities Dealers, Inc. (“NASD”)
      Corporate Financing Department pursuant to NASD Rule 2710 as described in
      proposed NASD Rule 2710(b)(10)(A)(i) within one Trading Day of the date that
      the
      Registration Statement is first filed with the Commission and pay the filing
      fee
      required by such Issuer Filing. The Company shall use commercially reasonable
      efforts to pursue the Issuer Filing until the NASD issues a letter confirming
      that it does not object to the terms of the offering contemplated by the
      Registration Statement as described in the Plan of Distribution attached hereto
      as Annex
      A.
      A copy
      of the Issuer Filing and all related correspondence to or from the NASD with
      respect thereto shall be provided to FWS.

    

    (i) Prior
      to
      any resale of Registrable Securities by a Holder, use its commercially
      reasonable efforts to register or qualify or cooperate with the selling Holders
      in connection with the registration or qualification (or exemption from the
      Registration or qualification) of such Registrable Securities for the resale
      by
      the Holder under the securities or Blue Sky laws of such jurisdictions within
      the United States as any Holder reasonably requests in writing, to keep each
      registration or qualification (or exemption therefrom) effective during the
      Effectiveness Period and to do any and all other acts or things reasonably
      necessary to enable the disposition in such jurisdictions of the Registrable
      Securities covered by each Registration Statement; provided, that the Company
      shall not be required to qualify generally to do business in any
      jurisdiction

    
      
         

      

      
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    where
      it
      is not then so qualified, subject the Company to any material tax in any such
      jurisdiction where it is not then so subject or file a general consent to
      service of process in any such jurisdiction.

    

    (j) If
      requested by a Holder, cooperate with such Holders to facilitate the timely
      preparation and delivery of certificates representing Registrable Securities
      to
      be delivered to a transferee pursuant to a Registration Statement, which
      certificates shall be free, to the extent permitted by the Purchase Agreement,
      of all restrictive legends, and to enable such Registrable Securities to be
      in
      such denominations and registered in such names as any such Holder may
      request.

    

    (k) Upon
      the
      occurrence of any event contemplated by Section 3(d), as promptly as reasonably
      possible under the circumstances taking into account the Company’s good faith
      assessment of any adverse consequences to the Company and its stockholders
      of
      the premature disclosure of such event, prepare a supplement or amendment,
      including a post-effective amendment, to a Registration Statement or a
      supplement to the related Prospectus or any document incorporated or deemed
      to
      be incorporated therein by reference, and file any other required document
      so
      that, as thereafter delivered, neither a Registration Statement nor such
      Prospectus will contain an untrue statement of a material fact or omit to state
      a material fact required to be stated therein or necessary to make the
      statements therein, in light of the circumstances under which they were made,
      not misleading. If
      the
      Company notifies the Holders in accordance with clauses (iii) through (vi)
      of
      Section 3(d) above to suspend the use of any Prospectus until the requisite
      changes to such Prospectus have been made, then the Holders shall suspend use
      of
      such Prospectus. The Company will use its best efforts to ensure that the use
      of
      the Prospectus may be resumed as promptly as is practicable. The Company shall
      be entitled to exercise its right under this Section 3(k) to suspend the
      availability of a Registration Statement and Prospectus, subject to the payment
      of partial liquidated damages otherwise required pursuant to Section 2(b),
      for a
      period not to exceed 60 calendar days (which need not be consecutive days)
      in
      any 12 month period.

    

    (l) Comply
      with all applicable rules and regulations of the Commission.

    

    (m) The
      Company may require each selling Holder to furnish to the Company a certified
      statement as to the number of shares of Common Stock beneficially owned by
      such
      Holder and, if required by the Commission, the natural persons thereof that
      have
      voting and dispositive control over the shares. During any periods that the
      Company is unable to meet its obligations hereunder with respect to the
      registration of the Registrable Securities solely because any Holder fails
      to
      furnish such information within three Trading Days of the Company’s request, any
      liquidated damages that are accruing at such time as to such Holder only shall
      be tolled and any Event that may otherwise occur solely because of such delay
      shall be suspended as to such Holder only, until such information is delivered
      to the Company.

    

    4.    Registration
      Expenses.
      All
      fees and expenses incident to the performance of or compliance with this
      Agreement by the Company shall be borne by the Company whether or
      not

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    any
      Registrable Securities are sold pursuant to a Registration Statement. The fees
      and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses of the Company’s counsel and auditors) (A) with respect to
      filings made with the Commission, (B) with respect to filings required to be
      made with any Trading Market on which the Common Stock is then listed for
      trading, (C) in compliance with applicable state securities or Blue Sky laws
      reasonably agreed to by the Company in writing (including, without limitation,
      fees and disbursements of counsel for the Company in connection with Blue Sky
      qualifications or exemptions of the Registrable Securities) and (D) if not
      previously paid by the Company in connection with an Issuer Filing, with respect
      to any filing that may be required to be made by any broker through which a
      Holder intends to make sales of Registrable Securities with the NASD pursuant
      to
      NASD Rule 2710, so long as the broker is receiving no more than a customary
      brokerage commission in connection with such sale, (ii) printing expenses
      (including, without limitation, expenses of printing certificates for
      Registrable Securities), (iii) messenger, telephone and delivery expenses,
      (iv)
      fees and disbursements of counsel for the Company, (v) Securities Act liability
      insurance, if the Company so desires such insurance, and (vi) fees and expenses
      of all other Persons retained by the Company in connection with the consummation
      of the transactions contemplated by this Agreement. In addition, the Company
      shall be responsible for all of its internal expenses incurred in connection
      with the consummation of the transactions contemplated by this Agreement
      (including, without limitation, all salaries and expenses of its officers and
      employees performing legal or accounting duties), the expense of any annual
      audit and the fees and expenses incurred in connection with the listing of
      the
      Registrable Securities on any securities exchange as required hereunder. In
      no
      event shall the Company be responsible for any broker or similar commissions
      of
      any Holder or, except to the extent provided for in the Transaction Documents,
      any legal fees or other costs of the Holders.

    

    5.    Indemnification.

    

    (a) Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, members, partners, agents,
      brokers (including brokers who offer and sell Registrable Securities as
      principal as a result of a pledge or any failure to perform under a margin
      call
      of Common Stock), investment advisors and employees (and any other Persons
      with
      a functionally equivalent role of a Person holding such titles, notwithstanding
      a lack of such title or any other title) of each of them, each Person who
      controls any such Holder (within the meaning of Section 15 of the Securities
      Act
      or Section 20 of the Exchange Act) and the officers, directors, members,
      shareholders, partners, agents and employees (and any other Persons with a
      functionally equivalent role of a Person holding such titles, notwithstanding
      a
      lack of such title or any other title) of each such controlling Person, to
      the
      fullest extent permitted by applicable law, from and against any and all losses,
      claims, damages, liabilities, costs (including, without limitation, reasonable
      attorneys’ fees) and expenses (collectively, “Losses”),
      as
      incurred, arising out of or relating to (1) any untrue or alleged untrue
      statement of a material fact contained in a Registration Statement, any
      Prospectus or any form of prospectus or in any amendment or supplement thereto
      or in any preliminary prospectus, or arising out of or relating to any omission
      or alleged omission of a material fact required to be stated

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    therein
      or necessary to make the statements therein (in the case of any Prospectus
      or
      supplement thereto, in light of the circumstances under which they were made)
      not misleading or (2) any violation or alleged violation by the Company of
      the
      Securities Act, the Exchange Act or any state securities law, or any rule or
      regulation thereunder, in connection with the performance of its obligations
      under this Agreement, except to the extent, but only to the extent, that (i)
      such untrue statements or omissions are based solely upon information regarding
      such Holder furnished in writing to the Company by such Holder expressly for
      use
      therein, or to the extent that such information relates to such Holder or such
      Holder’s proposed method of distribution of Registrable Securities and was
      reviewed and expressly approved in writing by such Holder expressly for use
      in a
      Registration Statement, such Prospectus or in any amendment or supplement
      thereto (it being understood that the Holder has approved Annex A hereto for
      this purpose) or (ii) in the case of an occurrence of an event of the type
      specified in Section 3(d)(iii)-(vi), the use by such Holder of an outdated
      or
      defective Prospectus after the Company has notified such Holder in writing
      that
      the Prospectus is outdated or defective and prior to the receipt by such Holder
      of the Advice contemplated in Section 6(d). The Company shall notify the Holders
      promptly of the institution, threat or assertion of any Proceeding arising
      from
      or in connection with the transactions contemplated by this Agreement of which
      the Company is aware.

    

    (b) Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents or employees of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses, as incurred, to the extent arising out of or based
      solely upon: (x) such Holder’s failure to comply with the prospectus delivery
      requirements of the Securities Act or (y) any untrue or alleged untrue statement
      of a material fact contained in any Registration Statement, any Prospectus,
      or
      in any amendment or supplement thereto or in any preliminary prospectus, or
      arising out of or relating to any omission or alleged omission of a material
      fact required to be stated therein or necessary to make the statements therein
      not misleading (i) to the extent, but only to the extent, that such untrue
      statement or omission is contained in any information so furnished in writing
      by
      such Holder to the Company specifically for inclusion in such Registration
      Statement or such Prospectus or (ii) to the extent that such information relates
      to such Holder’s proposed method of distribution of Registrable Securities and
      was reviewed and expressly approved in writing by such Holder expressly for
      use
      in a Registration Statement (it being understood that the Holder has approved
      Annex A hereto for this purpose), such Prospectus or in any amendment or
      supplement thereto or (ii) in the case of an occurrence of an event of the
      type
      specified in Section 3(d)(iii)-(vi), the use by such Holder of an outdated
      or
      defective Prospectus after the Company has notified such Holder in writing
      that
      the Prospectus is outdated or defective and prior to the receipt by such Holder
      of the Advice contemplated in Section 6(d). In no event shall the liability
      of
      any selling Holder hereunder be greater in amount than the dollar amount of
      the
      net proceeds received by such Holder upon the sale of the Registrable Securities
      giving rise to such indemnification obligation.

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    

    (c) Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an “Indemnified
      Party”),
      such
      Indemnified Party shall promptly notify the Person from whom indemnity is sought
      (the “Indemnifying
      Party”)
      in
      writing, and the Indemnifying Party shall have the right to assume the defense
      thereof, including the employment of counsel reasonably satisfactory to the
      Indemnified Party and the payment of all fees and expenses incurred in
      connection with defense thereof; provided, that the failure of any Indemnified
      Party to give such notice shall not relieve the Indemnifying Party of its
      obligations or liabilities pursuant to this Agreement, except (and only) to
      the
      extent that it shall be finally determined by a court of competent jurisdiction
      (which determination is not subject to appeal or further review) that such
      failure shall have prejudiced the Indemnifying Party.

    

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; (2) the Indemnifying Party shall have failed promptly to assume the
      defense of such Proceeding and to employ counsel reasonably satisfactory to
      such
      Indemnified Party in any such Proceeding; or (3) the named parties to any such
      Proceeding (including any impleaded parties) include both such Indemnified
      Party
      and the Indemnifying Party, and counsel to the Indemnified Party shall
      reasonably believe that a material conflict of interest is likely to exist
      if
      the same counsel were to represent such Indemnified Party and the Indemnifying
      Party (in which case, if such Indemnified Party notifies the Indemnifying Party
      in writing that it elects to employ separate counsel at the expense of the
      Indemnifying Party, the Indemnifying Party shall not have the right to assume
      the defense thereof and the reasonable fees and expenses of no more than one
      separate counsel shall be at the expense of the Indemnifying Party). The
      Indemnifying Party shall not be liable for any settlement of any such Proceeding
      effected without its written consent, which consent shall not be unreasonably
      withheld or delayed. No Indemnifying Party shall, without the prior written
      consent of the Indemnified Party, effect any settlement of any pending
      Proceeding in respect of which any Indemnified Party is a party, unless such
      settlement includes an unconditional release of such Indemnified Party from
      all
      liability on claims that are the subject matter of such Proceeding.

    

    Subject
      to the terms of this Agreement, all reasonable fees and expenses of the
      Indemnified Party (including reasonable fees and expenses to the extent incurred
      in connection with investigating or preparing to defend such Proceeding in
      a
      manner not inconsistent with this Section) shall be paid to the Indemnified
      Party, as incurred, within ten Trading Days of written notice thereof to the
      Indemnifying Party; provided, that the Indemnified Party shall promptly
      reimburse the Indemnifying Party for that portion of such fees and expenses
      applicable to such actions for which such Indemnified Party is judicially
      determined to be not entitled to indemnification hereunder.

    

    (d) Contribution.
      If the
      indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified
      Party or insufficient to hold an Indemnified Party harmless

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    for
      any
      Losses, then each Indemnifying Party shall contribute to the amount paid or
      payable by such Indemnified Party, in such proportion as is appropriate to
      reflect the relative fault of the Indemnifying Party and Indemnified Party
      in
      connection with the actions, statements or omissions that resulted in such
      Losses as well as any other relevant equitable considerations. The relative
      fault of such Indemnifying Party and Indemnified Party shall be determined
      by
      reference to, among other things, whether any action in question, including
      any
      untrue or alleged untrue statement of a material fact or omission or alleged
      omission of a material fact, has been taken or made by, or relates to
      information supplied by, such Indemnifying Party or Indemnified Party, and
      the
      parties’ relative intent, knowledge, access to information and opportunity to
      correct or prevent such action, statement or omission. The amount paid or
      payable by a party as a result of any Losses shall be deemed to include, subject
      to the limitations set forth in this Agreement, any reasonable attorneys’ or
      other fees or expenses incurred by such party in connection with any Proceeding
      to the extent such party would have been indemnified for such fees or expenses
      if the indemnification provided for in this Section was available to such party
      in accordance with its terms.

    

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph.
      Notwithstanding the provisions of this Section 5(d), no Holder shall be required
      to contribute, in the aggregate, any amount in excess of the amount by which
      the
      net proceeds actually received by such Holder from the sale of the Registrable
      Securities subject to the Proceeding exceeds the amount of any damages that
      such
      Holder has otherwise been required to pay by reason of such untrue or alleged
      untrue statement or omission or alleged omission.

    

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties.

    

    6.    Miscellaneous.

    

    (a) Remedies.
      In the
      event of a breach by the Company or by a Holder of any of their respective
      obligations under this Agreement, each Holder or the Company, as the case may
      be, in addition to being entitled to exercise all rights granted by law and
      under this Agreement, including recovery of damages, shall be entitled to
      specific performance of its rights under this Agreement. The Company and each
      Holder agree that monetary damages would not provide adequate compensation
      for
      any losses incurred by reason of a breach by it of any of the provisions of
      this
      Agreement and hereby further agrees that, in the event of any action for
      specific performance in respect of such breach, it shall not assert or shall
      waive the defense that a remedy at law would be adequate.

    

    (b) No
      Piggyback on Registrations; Prohibition on Filing Other Registration
      Statements.
      Except
      as set forth on Schedule
      6(b)
      attached
      hereto and in connection with transactions contemplated by clause (d) under
      Exempt Issuance, neither the Company nor any of

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    its
      security holders (other than the Holders in such capacity pursuant hereto)
      may
      include securities of the Company in any Registration Statements other than
      the
      Registrable Securities. The Company shall not file any other registration
      statements until all Registrable Securities are registered pursuant to a
      Registration Statement that is declared effective by the Commission, provided
      that this Section 6(b) shall not prohibit the Company from filing amendments
      to
      registration statements filed prior to the date of this Agreement.

    

    (c) Compliance.
      Each
      Holder covenants and agrees that it will comply with the prospectus delivery
      requirements of the Securities Act as applicable to it in connection with sales
      of Registrable Securities pursuant to a Registration Statement.

    

    (d) Discontinued
      Disposition.
      By its
      acquisition of Registrable Securities, each Holder agrees that, upon receipt
      of
      a notice from the Company of the occurrence of any event of the kind described
      in Section 3(d)(iii) through (vi), such Holder will forthwith discontinue
      disposition of such Registrable Securities under a Registration Statement until
      it is advised in writing (the “Advice”)
      by the
      Company that the use of the applicable Prospectus (as it may have been
      supplemented or amended) may be resumed. The Company will use its best efforts
      to ensure that the use of the Prospectus may be resumed as promptly as it
      practicable. The Company agrees and acknowledges that any periods during which
      the Holder is required to discontinue the disposition of the Registrable
      Securities hereunder shall be subject to the provisions of Section
      2(b).

    

    (e) Piggy-Back
      Registrations.
      If, at
      any time during the Effectiveness Period, there is not an effective Registration
      Statement covering all of the Registrable Securities and the Company shall
      determine to prepare and file with the Commission a registration statement
      relating to an offering for its own account or the account of others under
      the
      Securities Act of any of its equity securities, other than on Form S-4 or Form
      S-8 (each as promulgated under the Securities Act) or their then equivalents
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with the Company’s stock option or other employee benefit plans, then
      the Company shall deliver to each Holder a written notice of such determination
      and, if within fifteen days after the date of the delivery of such notice,
      any
      such Holder shall so request in writing, the Company shall include in such
      registration statement all or any part of such Registrable Securities such
      Holder requests to be registered; provided,
      however,
      that
      the Company shall not be required to register any Registrable Securities
      pursuant to this Section 6(e) that are eligible for resale pursuant to Rule
      144(k) promulgated by the Commission pursuant to the Securities Act or that
      are
      the subject of a then effective Registration Statement.

    

    (f) Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and the Holders of a majority of the then outstanding
      Registrable Securities (including, for this purpose any Registrable Securities
      issuable upon exercise or conversion of any Security). If a Registration
      Statement does not register all of the Registrable Securities pursuant to a
      waiver or amendment done in compliance with the previous sentence, then the
      number of Registrable Securities to be registered for each Holder shall
      be

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    reduced
      pro rata among all Holders and each Holder shall have the right to designate
      which of its Registrable Securities shall be omitted from such Registration
      Statement. Notwithstanding the foregoing, a waiver or consent to depart from
      the
      provisions hereof with respect to a matter that relates exclusively to the
      rights of a Holder or some Holders and that does not directly or indirectly
      affect the rights of other Holders may be given by such Holder or Holders of
      all
      of the Registrable Securities to which such waiver or consent relates;
provided,
      however,
      that
      the provisions of this sentence may not be amended, modified, or supplemented
      except in accordance with the provisions of the first sentence of this Section
      6(f). 

    

    (g) Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be delivered as set forth in the Purchase Agreement.
      

    

    (h) Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of each of the parties and shall inure to the benefit of
      each
      Holder. The Company may not assign (except by merger) its rights or obligations
      hereunder without the prior written consent of all of the Holders of the then
      outstanding Registrable Securities. Each Holder may assign their respective
      rights hereunder in the manner and to the Persons as permitted under the
      Purchase Agreement.

    

    (i) No
      Inconsistent Agreements.
      Neither
      the Company nor any of its Subsidiaries has entered, as of the date hereof,
      nor
      shall the Company or any of its Subsidiaries, on or after the date of this
      Agreement, enter into any agreement with respect to its securities, that would
      have the effect of impairing the rights granted to the Holders in this Agreement
      or otherwise conflicts with the provisions hereof. Except as set forth on
Schedule
      6(i),
      neither
      the Company nor any of its Subsidiaries has previously entered into any
      agreement granting any registration rights with respect to any of its securities
      to any Person that have not been satisfied in full.

    

    (j) Execution
      and Counterparts.
      This
      Agreement may be executed in two or more counterparts, all of which when taken
      together shall be considered one and the same agreement and shall become
      effective when counterparts have been signed by each party and delivered to
      the
      other party, it being understood that both parties need not sign the same
      counterpart. In the event that any signature is delivered by facsimile
      transmission or by e-mail delivery of a “.pdf” format data file, such signature
      shall create a valid and binding obligation of the party executing (or on whose
      behalf such signature is executed) with the same force and effect as if such
      facsimile or “.pdf” signature page were an original thereof.

    

    (k) Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be determined in accordance with the provisions of
      the
      Purchase Agreement.

    

    (l) Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any other remedies
      provided by law.

    

    (m) Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    force
      and
      effect and shall in no way be affected, impaired or invalidated, and the parties
      hereto shall use their commercially reasonable efforts to find and employ an
      alternative means to achieve the same or substantially the same result as that
      contemplated by such term, provision, covenant or restriction. It is hereby
      stipulated and declared to be the intention of the parties that they would
      have
      executed the remaining terms, provisions, covenants and restrictions without
      including any of such that may be hereafter declared invalid, illegal, void
      or
      unenforceable.

    

    (n) Headings.
      The
      headings in this Agreement are for convenience only, do not constitute a part
      of
      the Agreement and shall not be deemed to limit or affect any of the provisions
      hereof.

    

    (o) Independent
      Nature of Holders’ Obligations and Rights.
      The
      obligations of each Holder hereunder are several and not joint with the
      obligations of any other Holder hereunder, and no Holder shall be responsible
      in
      any way for the performance of the obligations of any other Holder hereunder.
      Nothing contained herein or in any other agreement or document delivered at
      any
      closing, and no action taken by any Holder pursuant hereto or thereto, shall
      be
      deemed to constitute the Holders as a partnership, an association, a joint
      venture or any other kind of entity, or create a presumption that the Holders
      are in any way acting in concert with respect to such obligations or the
      transactions contemplated by this Agreement. Each Holder shall be entitled
      to
      protect and enforce its rights, including without limitation the rights arising
      out of this Agreement, and it shall not be necessary for any other Holder to
      be
      joined as an additional party in any proceeding for such purpose.

    

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

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

    

    
      	
              OMNIRELIANT
                HOLDINGS, INC.

            
	 
	 
	
            
	
              By: 
                __________________________________________

              Name:

              Title:

            

    

         

    

    

    

    

    

    

    

    

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

    

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO ORHI RRA]

    

     

    Name
      of
      Holder: __________________________

    

    Signature
      of Authorized Signatory of Holder:
      __________________________

    

    Name
      of
      Authorized Signatory: _________________________

    

    Title
      of
      Authorized Signatory: __________________________

     

    

    

    [SIGNATURE
      PAGES CONTINUE]

    

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

    Annex
      A

    

    Plan
      of Distribution

    

    Each
      Selling Stockholder (the “Selling
      Stockholders”)
      of the
      common stock and any of their pledgees, assignees and successors-in-interest
      may, from time to time, sell any or all of their shares of common stock on
      the
      [principal Trading Market] or any other stock exchange, market or trading
      facility on which the shares are traded or in private transactions. These sales
      may be at fixed or negotiated prices. A Selling Stockholder may use any one
      or
      more of the following methods when selling shares:

     

    
      	 	
              ·

            	
              ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits purchasers;

            

    

     

    
      	 	
              ·

            	
              block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;

            

    

     

    
      	 	
              ·

            	
              purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account;

            

    

     

    
      	 	
              ·

            	
              an
                exchange distribution in accordance with the rules of the applicable
                exchange;

            

    

     

    
      	 	
              ·

            	
              privately
                negotiated transactions;

            

    

     

    
      	 	
              ·

            	
              settlement
                of short sales entered into after the effective date of the registration
                statement of which this prospectus is a part;

            

    

     

    
      	 	
              ·

            	
              broker-dealers
                may agree with the Selling Stockholders to sell a specified number
                of such
                shares at a stipulated price per
                share;

            

    

     

    
      	 	
              ·

            	
              through
                the writing or settlement of options or other hedging transactions,
                whether through an options exchange or
                otherwise;

            

    

     

    
      	 	
              ·

            	
              a
                combination of any such methods of sale;
                or

            

    

     

    
      	 	
              ·

            	
              any
                other method permitted pursuant to applicable
                law.

            

    

     

    The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act of 1933, as amended (the “Securities
      Act”),
      if
      available, rather than under this prospectus.

     

    Broker-dealers
      engaged by the Selling Stockholders may arrange for other brokers-dealers to
      participate in sales. Broker-dealers may receive commissions or discounts from
      the Selling Stockholders (or, if any broker-dealer acts as agent for the
      purchaser of shares, from the purchaser) in amounts to be negotiated, but,
      except as set forth in a supplement to this Prospectus, in the case of an agency
      transaction not in excess of a customary brokerage

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

    commission
      in compliance with NASDR Rule 2440; and in the case of a principal transaction
      a
      markup or markdown in compliance with NASDR IM-2440. 

     

    In
      connection with the sale of the common stock or interests therein, the Selling
      Stockholders may enter into hedging transactions with broker-dealers or other
      financial institutions, which may in turn engage in short sales of the common
      stock in the course of hedging the positions they assume. The Selling
      Stockholders may also sell shares of the common stock short and deliver these
      securities to close out their short positions, or loan or pledge the common
      stock to broker-dealers that in turn may sell these securities. The Selling
      Stockholders may also enter into option or other transactions with
      broker-dealers or other financial institutions or the creation of one or more
      derivative securities which require the delivery to such broker-dealer or other
      financial institution of shares offered by this prospectus, which shares such
      broker-dealer or other financial institution may resell pursuant to this
      prospectus (as supplemented or amended to reflect such
      transaction).

     

    The
      Selling Stockholders and any broker-dealers or agents that are involved in
      selling the shares may be deemed to be “underwriters” within the meaning of the
      Securities Act in connection with such sales. In such event, any commissions
      received by such broker-dealers or agents and any profit on the resale of the
      shares purchased by them may be deemed to be underwriting commissions or
      discounts under the Securities Act. Each Selling Stockholder has informed the
      Company that it does not have any written or oral agreement or understanding,
      directly or indirectly, with any person to distribute the Common Stock. In
      no
      event shall any broker-dealer receive fees, commissions and markups which,
      in
      the aggregate, would exceed eight percent (8%).

     

    The
      Company is required to pay certain fees and expenses incurred by the Company
      incident to the registration of the shares. The Company has agreed to indemnify
      the Selling Stockholders against certain losses, claims, damages and
      liabilities, including liabilities under the Securities Act. 

     

    Because
      Selling Stockholders may be deemed to be “underwriters” within the meaning of
      the Securities Act, they will be subject to the prospectus delivery requirements
      of the Securities Act including Rule 172 thereunder. In addition, any securities
      covered by this prospectus which qualify for sale pursuant to Rule 144 under
      the
      Securities Act may be sold under Rule 144 rather than under this prospectus.
      There is no underwriter or coordinating broker acting in connection with the
      proposed sale of the resale shares by the Selling Stockholders.

     

    We
      agreed
      to keep this prospectus effective until the earlier of (i) the date on which
      the
      shares may be resold by the Selling Stockholders without registration and
      without regard to any volume limitations by reason of Rule 144(k) under the
      Securities Act or any other rule of similar effect or (ii) all of the shares
      have been sold pursuant to this prospectus or Rule 144 under the Securities
      Act
      or any other rule of similar effect. The resale shares will be sold only through
      registered or licensed brokers or dealers if required under applicable state
      securities laws. In addition, in certain states, the resale shares may not
      be
      sold unless they have been registered or qualified for sale in the applicable
      state or an exemption from the registration or qualification requirement is
      available and is complied with.

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

    Under
      applicable rules and regulations under the Exchange Act, any person engaged
      in
      the distribution of the resale shares may not simultaneously engage in market
      making activities with respect to the common stock for the applicable restricted
      period, as defined in Regulation M, prior to the commencement of the
      distribution. In addition, the Selling Stockholders will be subject to
      applicable provisions of the Exchange Act and the rules and regulations
      thereunder, including Regulation M, which may limit the timing of purchases
      and
      sales of shares of the common stock by the Selling Stockholders or any other
      person. We will make copies of this prospectus available to the Selling
      Stockholders and have informed them of the need to deliver a copy of this
      prospectus to each purchaser at or prior to the time of the sale (including
      by
      compliance with Rule 172 under the Securities Act).

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

    Annex
      B

     

    OMNIRELIANT
      HOLDINGS, INC.

     

    Selling
      Securityholder Notice and Questionnaire

     

    The
      undersigned beneficial owner of common stock (the “Registrable
      Securities”)
      of
      OmniReliant Holdings, Inc., a Nevada corporation (the “Company”),
      understands that the Company has filed or intends to file with the Securities
      and Exchange Commission (the “Commission”)
      a
      registration statement (the “Registration
      Statement”)
      for
      the registration and resale under Rule 415 of the Securities Act of 1933, as
      amended (the “Securities
      Act”),
      of
      the Registrable Securities, in accordance with the terms of the Registration
      Rights Agreement (the “Registration
      Rights Agreement”)
      to
      which this document is annexed. A copy of the Registration Rights Agreement
      is
      available from the Company upon request at the address set forth below. All
      capitalized terms not otherwise defined herein shall have the meanings ascribed
      thereto in the Registration Rights Agreement.

     

    Certain
      legal consequences arise from being named as a selling securityholder in the
      Registration Statement and the related prospectus. Accordingly, holders and
      beneficial owners of Registrable Securities are advised to consult their own
      securities law counsel regarding the consequences of being named or not being
      named as a selling securityholder in the Registration Statement and the related
      prospectus.

     

    NOTICE

     

    The
      undersigned beneficial owner (the “Selling
      Securityholder”)
      of
      Registrable Securities hereby elects to include the Registrable Securities
      owned
      by it in the Registration Statement.

    
      
         

      

      
        -22-

        
          

        

      

      
         

      

    

    The
      undersigned hereby provides the following information to the Company and
      represents and warrants that such information is accurate:

     

    QUESTIONNAIRE

     

    1.    Name.

     

    
      	 	
              (a)

            	
              Full
                Legal Name of Selling Securityholder

            

    

     

    
      	   

	 

    

    

    
      	 	
              (b)

            	
              Full
                Legal Name of Registered Holder (if not the same as (a) above) through
                which Registrable Securities are
                held:

            

    

     

    
      	   

	 

    

    

    
      	 	
              (c)

            	
              Full
                Legal Name of Natural Control Person (which means a natural person
                who
                directly or indirectly alone or with others has power to vote or
                dispose
                of the securities covered by this
                Questionnaire):

            

    

     

    
      	    

	 

    

    

    2.    Address
      for
      Notices to Selling Securityholder:

     

    
      	   

	  

	  

	
              Telephone: 

            
	
              Fax: 

            
	
              Contact
                Person: 

            

    

    

    3.    Broker-Dealer
      Status:

     

    
      	 	
              (a)

            	
              Are
                you a broker-dealer?

            

    

     

    Yes
o         No
o

     

    
      	 	
              (b)

            	
              If
                “yes” to Section 3(a), did you receive your Registrable Securities as
                compensation for investment banking services to the
                Company?

            

    

     

    Yes
o         No
o

     

    
      	 	
              Note:

            	
              If
                “no” to Section 3(b), the Commission’s staff has indicated that you should
                be identified as an underwriter in the Registration
                Statement.

            

    

     

    
      
         

      

      
        -23-

        
          

        

      

      
         

      

    

    
      	 	
              (c)

            	
              Are
                you an affiliate of a
                broker-dealer?

            

    

     

    Yes
o         No
o

     

    
      	 	
              (d)

            	
              If
                you are an affiliate of a broker-dealer, do you certify that you
                purchased
                the Registrable Securities in the ordinary course of business, and
                at the
                time of the purchase of the Registrable Securities to be resold,
                you had
                no agreements or understandings, directly or indirectly, with any
                person
                to distribute the Registrable
                Securities?

            

    

     

    Yes o        No
o

     

    
      	 	
              Note:

            	
              If
                “no” to Section 3(d), the Commission’s staff has indicated that you should
                be identified as an underwriter in the Registration
                Statement.

            

    

     

    4.    Beneficial
      Ownership of Securities of the Company Owned by the Selling
      Securityholder.

     

    Except
      as set forth below in this Item 4, the undersigned is not the beneficial or
      registered owner of any securities of the Company other than the securities
      issuable pursuant to the Purchase Agreement.

     

    
      	 	
              (a)

            	
              Type
                and Amount of other securities beneficially owned by the Selling
                Securityholder:

            

    

     

    
      	   

	   

	 

    

    

    
      
        
           

        

        
          -24-

          
            

          

        

        
           

        

      

    

     

    5.    Relationships
      with the Company:

     

    Except
      as set forth below, neither the undersigned nor any of its affiliates, officers,
      directors or principal equity holders (owners of 5% of more of the equity
      securities of the undersigned) has held any position or office or has had any
      other material relationship with the Company (or its predecessors or affiliates)
      during the past three years.

     

    State
      any
      exceptions here:

     

    
      	 
	 
	 

    

    

     

    The
      undersigned agrees to promptly notify the Company of any inaccuracies or changes
      in the information provided herein that may occur subsequent to the date hereof
      at any time while the Registration Statement remains effective.

     

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers to Items 1 through 5 and the inclusion of such
      information in the Registration Statement and the related prospectus
and
      any
      amendments or supplements thereto.
      The
      undersigned understands that such information will be relied upon by the Company
      in connection with the preparation or amendment of the Registration Statement
      and the related prospectus.

     

    IN
      WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
      and Questionnaire to be executed and delivered either in person or by its duly
      authorized agent.

     

    
      	
              Date:
                

            	
              Beneficial
                Owner:  ______________________________

            
	 	
            
	 	
              By: 
                _________________________________________

            
	 	
              Name:

            
	 	
              Title:

            

    

    

    PLEASE
      FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND

    QUESTIONNAIRE,
      AND RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

     

    
      
         

      

        -25-EX 10.3

    EXHIBIT
      10.3

    

     

     

    Midtown
      Partners & Co., LLC

    4902
      Eisenhower Blvd., Suite 185

    Tampa,
      FL
      33634

    Phone:
      813.885.5744 ♦ Fax:
      813.885.5911

      
        

      

    

     

    PLACEMENT
      AGENT AGREEMENT

    

    This
      agreement (the “Agreement”), made as of this 8th
      day of
      May, 2007, by and between OmniReliant
      Holdings, Inc.,
      a
      Nevada corporation, (the “Company”), with its principal place of business at
      4902 Eisenhower Blvd., Suite 185, Tampa, Fl 33634 and MIDTOWN PARTNERS &
CO., LLC, (the “Placement Agent”, “Midtown” or “Midtown Partners”), a
      Florida limited liability company, with its principal place of business at
      4902
      Eisenhower Blvd., Suite 185, Tampa, Fl 33634, confirms the understanding and
      agreement between the Company and the Placement Agent as follows:

     

    SECTION
      I

    

    The
      Company hereby engages the Placement Agent as the Company’s exclusive placement
      agent in connection with a proposed private placement (the “Offering”) of up to
      four million dollars (US$4,000,000) of the Company’s securities (the
“Financing”). The Offering will be made to solely “accredited investors” (the
“Accredited Investors”), as such term is defined in Rule 501(a) of Regulation D
      (“Regulation D”) promulgated under the United States Securities Act of 1933, as
      amended (the “Securities Act”), pursuant to an exemption from registration under
      applicable federal and state securities laws available under Rule 506 of
      Regulation D and in accordance with the terms of this Agreement. The terms
      and
      conditions of the Financing shall be similar to those terms and provisions
      as
      attached in Exhibit A hereto subject to a final term Sheet to be set
      forth at a later date to be approved by the Company.
      The
      Placement Agent hereby accepts such engagement upon the terms and conditions
      set
      forth in this Agreement. This Agreement shall not give rise to any commitment
      or
      obligation by the Placement Agent to purchase any of the Financing or, except
      as
      set forth herein, to find purchasers for the Financing.

    

    The
      Placement Agent shall provide the following services (the
“Services”):

     

    (a) Advise
      the Company with regard to the size of the Offering and the structure and terms
      of the Financing in light of the current market environment;

    

    (b) Assist
      the Company in identifying and evaluating prospective qualified Accredited
      Investors;

    

    (c) Approach
      such investors on a “best efforts basis” regarding an investment in the Company;
      and

    

    (d) Work
      with
      the Company to develop a negotiating strategy and assist with the negotiations
      with such potential investors.

    

    In
      connection with the Placement Agent providing the Services, the Company agrees
      to keep the Placement Agent up to date and apprised of all material business,
      market and legal developments related to the Company and its operations and
      management. The Placement Agent shall devote such time and effort, as it deems
      commercially reasonable under the circumstances in rendering the Services.
      The
      Placement Agent shall not provide any work that is in the ordinary purview
      of a
      certified public accountant. The

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Placement
      Agent cannot guarantee results on behalf of the Company, but shall pursue all
      avenues that it deems reasonable through its network of contacts. 

     

    SECTION
      II

    

    The
      Placement Agent, its affiliates and any person acting on its or their behalf
      hereby represent, warrant and agree as follows (the “Placement Agent
      Parties”):

    

    (a)
       The
      Financing offered and sold by the Placement Agent have been and will be offered
      and sold in compliance with all federal and state securities laws and
      regulations governing the registration and conduct of broker-dealers, and each
      Placement Agent Party making an offer or sale of Financing was or will be,
      at
      the time of any such offer or sale, registered as a broker-dealer pursuant
      to
      Section 15(b) of the United States Securities Exchange Act of 1934, as amended
      (the “Exchange Act”), and under the laws of each applicable state of the United
      States (unless exempted from the respective state’s broker-dealer registration
      requirements), and in good standing with the National Association of Securities
      Dealers, Inc.

    

    (b) The
      Financing offered and sold by the Placement Agent have been and will be offered
      and sold only to Accredited Investors in accordance with Rule 506 of Regulation
      D and applicable state securities laws; provided, however, the Company shall
      make all necessary filings under Rule 503 of Regulation D and such similar
      notice filings under applicable state securities laws. The Placement Agent
      Parties represent and warrant that they have reasonable grounds to believe
      and
      do believe that each person to whom a sale, offer or solicitation of an offer
      to
      purchase Financing was or will be made was and is an Accredited Investor. Prior
      to the sale and delivery of a Debenture to any such investor, the Placement
      Agent Parties will obtain an executed subscription agreement and an executed
      investors’ rights agreement in the form agreed upon by the Company and the
      Placement Agent (the “Subscription Documents”).

    

    (c) In
      connection with the offers and sales of the Financing, the Placement Agent
      Parties have not and will not 

    

    (1)
       Offer
      or
      sell, or solicit any offer to buy, any Financing by any form of “general
      solicitation” or “general advertising”, as such terms are used in Regulation D,
      or in any manner involving a public offering within the meaning of Section
      4(2)
      of the Securities Act; 

    

    (2)
       Use
      any
      written material other than the term sheet, that will be approved by the Company
      at a later date, and the Placement Agent, a copy of which is attached hereto
      as
Exhibit
      A,
      and the
      Subscription Documents, and shall only rely upon and communicate information
      that is publicly available regarding the Company to any potential investors
      (without limiting the foregoing, none of the Placement Agent Parties is
      authorized to make any representation or warranty to any offeree concerning
      the
      Company or an investment in the Financing); or 

    

    (3)
       Take
      any
      action that would constitute a violation of Regulation M under the Exchange
      Act.

    

    (d) The
      Placement Agent shall cause each affiliate or each party acting on its or their
      behalf with whom they enter into contractual arrangements relating to the offer
      and sale of any Financing to agree, for the benefit of the Company, to the
      same
      provisions contained in this Agreement.

     

    SECTION
      III

    

    During
      the Term (as defined below), the Placement Agent is hereby retained by the
      Company to make limited introductions on a best efforts basis to provide
      financing for the Company in an amount and form to be mutually determined by
      the
      Company and the Placement Agent. 

     

    SECTION
      IV

    

    The
      Company hereby represents, warrants and agrees as follows:

     

    (a) This
      Agreement has been authorized, executed and delivered by the Company and, when
      executed by the Placement Agent will constitute the valid and binding agreement
      of the Company

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    enforceable
      against the Company in accordance with its terms, except as enforcement thereof
      may be limited by bankruptcy, insolvency or reorganization, moratorium or other
      similar laws relating to or affecting creditors’ rights generally or by general
      equitable principles. 

    

    (b)
       The
      offer
      and sale of the Financing, the Shares, and the Warrants shall be exempt from
      registration under the Securities Act, and will comply, in all material respects
      with the requirements of Rule 506 of Regulation D promulgated under the
      Securities Act and any applicable state securities laws. No documents prepared
      by the Company in connection with the Offering, or any amendment or supplement
      thereto, contain any untrue statement of a material fact or omit to state any
      material fact required to be stated therein or necessary to make the statements
      therein, in light of the circumstances under which they were made, not
      misleading. 

    

    (c)
       The
      financial statements, audited and unaudited (including the notes thereto),
      included in the Company’s latest annual information form and subsequent
      quarterly reports (the “Financial Statements”), present fairly the financial
      position of the Company as of the dates indicated and the results of operations
      and cash flows of the Company for the periods specified. Such Financial
      Statements have been prepared in conformity with generally accepted accounting
      principles applied on a consistent basis throughout the periods involved except
      as otherwise stated therein. 

    

    (d)
       No
      federal, state or foreign governmental agency has issued any order preventing
      or
      suspending the Offering. 

    

    (e)
       The
      Company is a Nevada corporation organized, existing and with active status
      under
      the laws of Nevada, with corporate power and authority under such laws to own,
      lease and operate its properties and conduct its business as now conducted.
      The
      Company has all power, authority, authorization and approvals as may be required
      to enter into this Agreement and each of the Subscription Documents, and to
      carry out the provisions and conditions hereof and thereof, and to issue and
      sell the Financing, the Shares, and Warrants. 

    

    (f)
       The
      Financing, the Shares, the Warrants, and common shares issuable upon exercise
      of
      the Warrants (the “Warrant Shares”), have all been authorized for issuance and
      sale pursuant to the Subscription Documents, and when issued and delivered
      by
      the Company against payment therefore in accordance with the terms of the
      Subscription Documents, will be validly issued and fully paid and
      non-assessable.

    

    (g) With
      the
      exception of any approvals required by the Securities and Exchange Commission
      related to the Offering, no further approval or authorization of any shareholder
      of the Company, its Board of Directors or other person or group is required
      for
      the issuance and sale of the Financing, the Shares, the Warrants or the Warrant
      Shares. 

    

    (h)
       Since
      the
      latest unaudited financial statements there has not been any (A) material
      adverse change in the business, properties, assets, rights, operations,
      condition (financial or otherwise) or prospects of the Company, (B) transaction
      that is material to the Company, except transactions in the ordinary course
      of
      business, (C) obligation that is material to the Company, direct or contingent,
      incurred by the Company, except obligations incurred in the ordinary course
      of
      business, (D) change that is material to the Company or in the common shares
      or
      outstanding indebtedness of the Company, or (E) dividend or distribution of
      any
      kind declared, paid, or made in respect of the common shares. 

     

    SECTION
      V

    

    The
      parties agree that the close of the Offering (the “Closing”) shall be subject to
      the satisfaction of the following conditions, unless expressly waived in writing
      by the parties:

    

    (a) The
      Offering shall not be subject to any regulatory or judicial proceeding
      questioning or reviewing its effectiveness for the purpose of offering the
      Financing for sale and issuance. 

    

    (b) The
      Company shall deliver a certificate of an officer of the Company dated as of
      the
      Closing that affirms the accuracy of the representations and warranties
      contained in Section IV hereof.

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    (c) 
      The
      Agent shall have received an opinion of counsel to the Company, dated as of
      the
      Closing, that the Financing offered and sold in compliance with this Agreement
      are not required to be registered under the Securities Act.

    

    (d)
       The
      Company shall have paid, or made arrangements satisfactory to the Agent for
      the
      payment of, all such expenses as required by Section VIII below.

    

    (e) The
      Placement Agent and the Company shall have finalized and agreed to the form
      of
      the warrant agreement and registration rights agreement referred to in Section
      VIII below.

     

    SECTION
      VI

    

    (a) The
      term
      of this Agreement shall commence on the date first written above and shall
      expire the earlier of one (1) year after the date the Company (1) provides
      the
      Placement Agent with requested due diligence materials and (2) the Company
      and
      the Placement Agent mutually agree that information documents (including, but
      not limited to: a business plan; executive summary; three-year historical income
      statement, statement of cash flows, and balance sheet; five-year projected
      financial statements; use of proceeds statement; investor presentation;
      valuation analysis), to be provided and approved by the Company, are ready
      for
      presentation to the Placement Agent’s network of potential financing sources or
      the closing of the Offering, unless terminated in accordance with the provisions
      set forth below, or extended by the mutual written consent of the parties hereto
      (the “Term”). This Agreement may be terminated only:

    

    (1) By
      the
      Placement Agent for any reason at any time upon thirty (30) days’ prior written
      notice; or

    

    (2) By
      the
      Placement Agent upon default in the payment of any amounts due to the Placement
      Agent pursuant to this Agreement, if such default continues for more than
      fifteen (15) days following receipt by the Company from the Placement Agent
      of
      written notice of such default and demand for payment. 

    

    (a)
      In
      the event of termination, the Placement Agent shall be immediately paid in
      full
      on all items of compensation and expenses (including any amounts deferred)
      payable to the Placement Agent pursuant hereto, as of the date of
      termination.

    

    (b)
      The
      Placement Agent Fee or Financing Fee shall become due and payable to PLACEMENT
      AGENT upon the date that the Company receives the proceeds of the financing
      from
      the party providing the financing. A Placement Agent Fee shall also be payable
      with respect to any Qualified Offering or any subsequent Qualified Financing
      accepted and received by Company within twelve (12) months after the termination
      or expiration of this Agreement, by any party or source of funding introduced
      or
      facilitated by PLACEMENT AGENT to Company; or

     

    (3) By
      the
      Company or the Placement Agent for any reason at any time upon fifteen (15)
      days’ prior written notice after the completion of the initial Term;
      or

    

    (4) By
      mutual
      agreement of the parties.

     

    SECTION
      VII

    

    At
      any
      time during the twelve (12) months following the termination of this Agreement,
      the Placement Agent shall be entitled to the compensation and fees as set forth
      in Section VIII of this Agreement for any Qualified Financing (as defined below)
      received by the Company. “Qualified Financing” shall mean an investment from a
      person after the termination of this Agreement that directly results from the
      Placement Agent’s performance of the Services hereunder during the Term of this
      Agreement (for the avoidance of doubt this shall mean any solicitation of a
      potential investor or an introduction of a potential investor to the Company
      by
      the Placement Agent related to the Offering during the Term of this Agreement).
      The Placement Agent agrees to provide to the Company within ten (10) days after
      the termination of this Agreement (the “Delivery Deadline”) a list of all
      persons solicited on behalf of the Company or introduced to the Company by
      the
      Placement Agent related to the Offering (the

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    “Solicitation
      List”) to assist the parties in making a later determination as to whether a
      Qualified Financing has occurred. If the Solicitation List is not provided
      to
      the Company prior to the expiration of the Delivery Deadline, the Company’s
      obligation to pay any commissions or fees related to a Qualified Financing
      pursuant to this Section VII shall immediately terminate. For purposes of this
      Agreement, receipt of Qualified Financing shall be deemed to be received by
      the
      Company on the date that a definitive agreement regarding the Qualified
      Financing is executed by the Company and the party providing such financing.
      The
      compensation or fees shall become payable to the Placement Agent upon the date
      that the Company receives the proceeds of the Qualified Financing. 

    

    The
      provisions set forth in this Section VII shall survive any termination of this
      Agreement.

     

    SECTION
      VIII

    

    In
      consideration for the performance of the Services hereunder, the Company hereby
      agrees to pay to the Placement Agent such fees (“The Placement Agent Fee or the
      Financing Fee”) as outlined below:

    

    (a) If
      the
      Placement Agent receives subscriptions for Financing as a part of the Offering
      (the “Placement Agent Investors”), the Company shall: 

    

    1)
      Pay to
      the Placement Agent in US dollars via wire from the attorney’s escrow at closing
      an amount equal to ten percent (10%) of the principal amount of the Financing
      purchased by the Placement Agent Investors (the “Financing Fee”), and pay to the
      Placement Agent ten percent (10%) on the execution of any Warrants purchased
      by
      the Investors.

    

    2)
      On
      each closing date of a Financing on which aggregate consideration is paid or
      becomes payable to the Company for its Equity Securities, the Company shall
      issue to the Placement Agent or its permitted assigns warrants (the “Warrants”)
      to purchase such number of shares of the common stock of the Company equal
      to
      ten percent (10%) of the aggregate number of shares of common stock of the
      Company issued and issuable by the Company under and in connection with the
      Financings. The Company shall grant
      to
      the
      Placement Agent all Series of Warrants equal to ten percent (10%) of
      the
      number of Warrants
      issued
      to
      the
      Placement Agent Investors.
      The
      number of shares of common stock issuable upon exercise of the Warrants shall
      include all shares of common stock issuable under the Securities, including,
      without limitation, shares issuable upon conversion or exercise of the
      Securities. The Warrants shall have a ten (10) year term and shall provide
      for
      cashless exercise (even if the Purchasers do not have such right) and have
      terms
      and conditions identical to the Securities purchased by the Purchasers,
      including, without limitation, anti-dilution and full ratchet provisions to
      take
      into account any issuance of additional shares of common stock as a result
      of an
      adjustment to the Securities or the shares of common stock underlying the
      Securities. The Warrants shall be exercisable after the date of issuance and
      shall expire ten (10) years after the date of issuance, unless otherwise
      extended by the Company. The Warrants shall include anti-dilution protection,
      including protection against issuances of securities at prices (or with exercise
      prices, in the case of warrants, options or rights) below the exercise price
      of
      the Warrants. The Warrants shall not be callable or redeemable. The Warrants
      shall also include one demand registration right exercisable following the
      first
      anniversary of the closing, and piggyback registration rights. The Warrants
      shall be transferable within MIDTOWN PARTNERS, at the Placement Agent’s
      discretion.

    

    3)
      An
      escrow with a third party agent approved by the parties hereto will be used
      for
      each closing to which the Placement Agent shall be a party. All consideration
      due the Placement Agent shall be paid to the Placement Agent directly there
      from.

    

    4)
      Cause
      its affiliates to, pay to the Placement Agent all compensation described in
      this
      Section VIII with respect to all Securities sold to a purchaser or purchasers
      at
      any time prior to the expiration of thirty-six (36) months after the expiration
      of this Agreement (the “Tail Period”) if (i) such purchaser or purchasers were
      identified to the Company by the Placement Agent during the Term authorized,
      (ii) the Placement Agent advised the Company with respect to such purchaser
      or
      purchasers during the Term authorized or (iii) the Company or the Placement
      Agent had discussions with such purchaser or purchasers during the Term
      authorized.

    

    5)
      The
      Company also agrees to pay for the legal and due diligence fees outlined in
      the
      attached term sheet and such fees shall not exceed $25,000.

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    (b) It
      is
      acknowledged and agreed that the Company shall bear all costs and expenses
      incident to the issuance, offer, sale and delivery of the Financing. These
      costs
      and expenses will include but are not limited to state “Blue Sky” fees, legal
      fees, printing costs, travel costs, mailing, couriers, personal background
      checks, and other expenses incidental to the advancement and completion of
      the
      Offering. Full payment of Placement Agent’s expenses shall be made in same day
      funds at the Closing or, if the Offering is terminated for any reason, within
      ten (10) days of receipt by the Company of a written request from the Placement
      Agent for reimbursement of expenses, including documentation therefore
      satisfactory to the Company. 

     

    (c)
       Subject
      to the other requirements set forth in this Agreement, the Placement Agent
      may
      introduce investors to the Offering directly or through other NASD member
      broker-dealers. If the Placement Agent utilizes any intermediaries, the
      Placement Agent shall be the Company’s point of contact, not the intermediary,
      and the Placement Agent, not the Company, shall be responsible for any
      compensation arrangement with the intermediary. The Company’s sole compensation
      arrangement, responsibility and obligation are with the Placement Agent. The
      Placement Agent will disclose the identity and compensation arrangements with
      all of its intermediaries in order to allow the Company to adequately disclose
      such arrangements, where necessary.

     

    SECTION
      IX

    

    The
      Company agrees to indemnify the Placement Agent and hold it harmless against
      any
      losses, claims, damages or liabilities incurred by the Placement Agent, in
      connection with, or relating in any manner, directly or indirectly, to the
      Placement Agent rendering the Services in accordance with the Agreement, unless
      it is determined by a court of competent jurisdiction that such losses, claims,
      damages or liabilities arose out of the Placement Agent’s breach of this
      Agreement, sole negligence, gross negligence, willful misconduct, dishonesty,
      fraud or violation of any applicable law. Additionally, the Company agrees
      to
      reimburse the Placement Agent immediately for any and all expenses, including,
      without limitation, attorney fees, incurred by the Placement Agent in connection
      with investigating, preparing to defend or defending, or otherwise being
      involved in, any lawsuits, claims or other proceedings arising out of or in
      connection with or relating in any manner, directly or indirectly, to the
      rendering of any Services by the Placement Agent in accordance with the
      Agreement (as defendant, nonparty, or in any other capacity other than as a
      plaintiff, including, without limitation, as a party in an interpleader action);
      provided, however, that in the event a determination is made by a court of
      competent jurisdiction that the losses, claims, damages or liability arose
      primarily out of the Placement Agent’s breach of this Agreement, sole
      negligence, gross negligence, willful misconduct, dishonesty, fraud or any
      violation of any applicable law, the Placement Agent will remit to the Company
      any amounts for which it had been reimbursed under this paragraph. The Company
      further agrees that the indemnification and reimbursement commitments set forth
      in this paragraph shall extend to any controlling person, strategic alliance,
      partner, member, shareholder, director, officer, employee, agent or
      subcontractor of the Placement Agent and their heirs, legal representatives,
      successors and assigns. The provisions set forth in this Section IX shall
      survive any termination of this Agreement.

     

    SECTION
      X

    

    All
      notices, demands or other communications given hereunder shall be in writing
      and
      shall be deemed to have been duly given when delivered in person or transmitted
      by facsimile transmission or the fifth calendar day after being mailed by
      registered or certified mail, return receipt requested, postage prepaid, to
      the
      addresses herein above first mentioned or to such other address as any party
      hereto shall designate to the other for such purpose manner herein set
      forth.

     

    SECTION
      XI

    

    Governing
      Law.
      The
      subject matter of this Agreement shall be governed by and construed in
      accordance with the laws of the State of Florida (without reference to its
      choice of law principles), and to the exclusion of the law of any other forum,
      without regard to the jurisdiction in which any action or special proceeding
      may
      be instituted. EACH PARTY HERETO AGREES TO SUBMIT TO THE PERSONAL JURISDICTION
      AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    HILLSBOURGH
      COUNTY, FLORIDA FOR RESOLUTION OF ALL DISPUTES ARISING OUT OF, IN CONNECTION
      WITH, OR BY REASON OF THE INTERPRETATION, CONSTRUCTION, AND ENFORCEMENT OF
      THIS
      AGREEMENT, AND HEREBY WAIVES THE CLAIM OR DEFENSE THEREIN THAT SUCH COURTS
      CONSTITUTE AN INCONVENIENT FORUM. AS A MATERIAL INDUCEMENT FOR THIS AGREEMENT,
      EACH PARTY SPECIFICALLY WAIVES THE RIGHT TO TRIAL BY JURY OF ANY ISSUES SO
      TRIABLE. If it becomes necessary for any party to institute legal action to
      enforce the terms and conditions of this Agreement, the prevailing party may
      be
      awarded reasonable attorneys fees, expenses and costs.

    

    Confidentiality.
      The
      Placement Agent may acquire certain non-public information respecting the
      business of the Company in connection with the performance of services
      hereunder, including information, which is reasonably understood to be
      proprietary or confidential in nature (collectively, “Confidential
      Information”). The Placement Agent hereby agrees that all Confidential
      Information shall be kept strictly confidential by the Placement Agent and
      its
      affiliates, members, partners, shareholders, managers, directors, officers,
      employees, advisors, agents, and controlling persons (collectively,
“Representatives”), except that Confidential Information or portions thereof may
      be disclosed to Representatives who need to know such information for the
      purpose of enabling the Placement Agent to perform services hereunder (it being
      understood that prior to such disclosure, such Representative will be informed
      by the Placement Agent of the confidential nature of such Confidential
      Information and shall agree to be bound by this Agreement). The Placement Agent
      shall be responsible for any breach of this provision by any of its
      Representatives. For purposes hereof, Confidential Information shall not include
      any information which (i) at the time of disclosure or thereafter is or becomes
      generally known by the public (other than as a result of its disclosure by
      the
      Placement Agent or its Representatives), (ii) was or becomes available to the
      Placement Agent on a non-confidential basis from a person who is not subject
      to
      a confidentiality agreement concerning that information, or (iii) is required
      by
      law to be disclosed by the Placement Agent (provided that if such disclosure
      is
      required by order of a court or administrative agency, the Placement Agent
      shall
      notify the Company as soon as possible so that the Company may seek a protective
      order). 

    

    Assignments
      and Binding
      Effect.
      This
      Agreement shall be binding on and inure to the benefit of the parties hereto
      and
      their respective successors and permitted assigns. The rights and obligations
      of
      the parties under this Agreement may not be assigned or delegated without the
      prior written consent of both parties, and any purported assignment without
      such
      written consent shall be null and void. 

    

    Modification
      and Waiver.
      Only an
      instrument in writing executed by the parties hereto may amend this Agreement.
      The failure of any party to insist upon strict performance of any of the
      provisions of this Agreement shall not be construed as a waiver of any
      subsequent default of the same or similar nature, or any other nature.

    

    Construction.
      The
      captions used in this Agreement are provided for convenience only and shall
      not
      affect the meaning or interpretation of any provision of this
      Agreement.

    

    Facsimile
      Signatures.
      Facsimile transmission of any signed original document, and re-transmission
      of
      any signed facsimile transmission, shall be the same as delivery of an original.
      At the request of either party, the parties shall confirm facsimile transmitted
      signatures by signing an original document. This Agreement may be executed
      in
      one or more counterparts, each of which shall be deemed an original and all
      of
      which taken together shall constitute one and the same agreement. 

    

    Severability.
      If any
      provision of this Agreement shall be invalid or unenforceable in any respect
      for
      any reason, the validity and enforceability of any such provision in any other
      respect, and of the remaining provisions of this Agreement, shall not be in
      any
      way impaired.

    

    Exclusive.
      Midtown
      acknowledges and agrees that it is being granted exclusive rights with respect
      to the Services to be provided to the Company and the Company is not free to
      engage other parties to provide services similar to those being provided by
      Midtown hereunder without the prior written consent of Midtown. 

    

    Non-Circumvention.
      The
      Company hereby irrevocably agrees not to circumvent, avoid, bypass, or obviate,
      directly or indirectly, the intent of this Agreement. The Company agrees not
      to
      accept any business opportunity from any third party to whom PLACEMENT AGENT
      introduces to the Company

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    without
      the consent of PLACEMENT AGENT, unless for each business opportunity accepted
      by
      the Company from a third party introduced by PLACEMENT AGENT, the Company remits
      a term sheet and then a contract which defines a mutually agreeable compensation
      structure for PLACEMENT AGENT. In addition, the Company shall not work with,
      negotiate with or enter into any equity linked financing whatsoever with any
      Investor, Consultant or Placement Agent without Midtown’s prior written consent.
      If the Company raises capital through in any equity offering or sale or equity
      linked instrument while engaged with Midtown as the exclusive Placement Agent,
      the Company shall pay to Midtown all of its fees in Section VIII, even if the
      Placement Agent has provided no assistance whatsoever in raising such
      capital.

    

    Survivability.
      Neither
      the termination of this Agreement nor the completion of any services to be
      provided by the Placement Agent hereunder, shall affect the provisions of this
      Agreement that shall remain operative and in full force and effect.

    

    Entire
      Agreement.
      This
      Agreement constitutes the entire agreement and understanding of the parties
      hereto with respect to the subject matter of this Agreement and supersedes
      all
      prior understandings and agreements, whether written or oral, among the parties
      with respect to such subject matter. 

    

    If
      the
      foregoing correctly sets forth the understanding between the Placement Agent
      and
      the Company, please so indicate in the space provided below for that purpose
      within 10 days of the date hereof or this Agreement shall be withdrawn and
      become null and void. The undersigned parties hereto have caused this Agreement
      to be duly executed by their authorized representatives, pursuant to corporate
      board approval and intend to be legally bound.

     

    
      
        	
                OMNIRELIANT
                  HOLDINGS, INC.

              	
                MIDTOWN
                  PARTNERS & CO., LLC.

              
	 	 
	
              	 
	
                By: 
                  _____________________________ 

              	
                By: 
                  ____________________________

              
	
                Chris
                  D. Phillips, President

              	
                Bruce
                  Jordan, President

              

      

    

     

    
      
         

      

        -8-

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