Document:

THROUGHOUT
      THIS AGREEMENT, WHERE INFORMATION HAS BEEN REPLACED BY AN ASTERISK (*), THAT
      INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
      FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
      PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. THE OMITTED
      INFORMATION HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
      COMMISSION.

     

    KATHY
      HILTON LICENSE AGREEMENT

    

    This
      LICENSE AGREEMENT ("Agreement") is made and effective as of the 13th
      day of
      October, 2006 (“Effective Date”), by and between KRH
      Licensing Company, LLC.,
      a newly
      formed California corporation with an office and place of business at 250 North
      Canon Drive, 2nd
      Floor,
      Beverly Hills, California 90210 (collectively, "Licensor"), and OmniReliant
      Corp.,
      a
      Florida corporation with an office and principal place of business at 4902
      Eisenhower Blvd., Suite 185 Tampa, Florida 33634 ("Licensee") (together the
      "Parties").

    

    WITNESSETH
      :

    

    WHEREAS,
      Richard
      Hilton is the worldwide owner of the KATHY HILTON trademark and all variations
      and combinations thereof, including various U.S. Trademark Registrations
      therefore, including Reg. No. 2,884,868 in International Class 24 for bed
      linens, et. seq.; Reg. No. 2,882,681 in International Class 20 for furniture;
      and, Reg. No. 3,018,255 in International Class 14 for jewelry (collectively,
      the
“Licensed Mark” or “Licensed Marks”); and, 

    

    WHEREAS,
      pursuant to a master license agreement, Richard Hilton has granted all worldwide
      rights to the Licensed Marks to the Licensor herein; and, 

    

    WHEREAS,
      Licensee is a newly incorporated Florida corporation specifically formed to
      develop the Licensed Marks with the intent of manufacturing, promoting and
      selling Licensed Products (as hereinafter defined),
      and
      Licensor further desires to obtain the personal services of Ms. Kathy
      Hilton
      pursuant
      to the terms of this Agreement
      in
      connection with the formulation and manufacture as well as the promotion and
      sale of the Licensed Products; and

    

    WHEREAS,
      Licensor
      is willing to grant the license contained in this Agreement and
      (the
“License”) Licensee
      desires to obtain from Licensor, the exclusive right and license to use the
      Licensed Marks in the Territory (as hereinafter defined) in connection with
      the
      manufacture, promotion, distribution and sale of Licensed Products.

    

    NOW,
      THEREFORE,
      in
      consideration of the premises and mutual agreements contained herein, the
      parties hereto covenant and agree as follows:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      1

    

    Definitions:
      The following definitions shall apply:

    

    A. Territory.
      All
      countries of the world and all duty-free-shops, ships, airplanes, military
      bases
      and diplomatic
      missions of every country of the world,
      including,
      but not
      limited to, retail, wholesale,
      the
      world-wide web, radio,
      multi-level marketing, newspapers, magazines, direct
      response,
      infomercials, television
      shopping networks and any other channel of distribution and sale approved in
      writing by Licensor, which approval shall not be unreasonably withheld,
      conditioned or delayed.

    

    B. Licensed
      Products.
      All
      products comprising goods within the scope of the description of International
      Class 3 as defined in the records of the United States Patent and Trademark
      Office, namely: Men's and Women's skincare products, fragrances, cosmetics
      and
      related personal care products such as body lotion, body cream, body mist,
      hand
      cream, bath and shower gel, massage oil, dusting powder, after shave, after
      shave balm or gel, deodorant stick and bath soap, and home/environmental
      products such as candles, potpourri and incense bearing the Licensed Marks.
      Notwithstanding
      the foregoing, in the event that Licensee does not develop and begin the
      marketing of a fragrance under the Licensed Marks with 18 months of the
      Effective Date, Licensee shall forfeit the rights for fragrance (deleting such
      category from this definition of Licensed Products) and Licensor shall be free
      to develop itself or license a third-party to use the Licensed Marks for a
      fragrance. 

    

    C. Licensed
      Mark or
      Licensed
      Marks.
      The
      trademark KATHY HILTON and such other trademarks as are, from time to time,
      agreed to by Licensor. At Licensor’s
      cost, Licensor has or will file to register the Licensed Mark in the United
      States Patent and Trademark Office in International Class 3 for: Men's
      and
      Women's skincare products, fragrances, cosmetics and related personal care
      products such as body lotion, body cream, body mist, hand cream, bath and shower
      gel, massage oil, dusting powder, after shave, after shave balm or gel,
      deodorant stick and bath soap, and home/environmental products such as candles,
      potpourri and incense. 

     

    D. Net
      Sales.
      The
      arms-length sales price at which Licensee or any Subsidiary or Affiliate (as
      hereinafter defined) bills its Non-Subsidiary or Affiliate customers for
      Licensed Products (or ultimate consumers in the case of infomercial sales)
      less:
      (i) all returns of damaged, defective or other merchandise, actual trade and
      cash discounts and allowances provided to customers, and taxes directly
      applicable to the sale of Licensed Products to such
      customers (such as sales, use, excise,
      value
      added or similar taxes);
      (ii)
      as
      actually incurred and reserved for; (ii) actual charges and reserves
      for
      all
      freight and shipping and
      handling charges,
      credit
      card fees, refunds, credits,
      insurance costs, duties and other governmental charges paid by the Licensee
      in
      connection with such sales to customers to the extent such expenses are stated
      separately on any invoice; (iii) all receipts from the sale of Licensed
      Products sold to bone
      fide
      customers at a cost below Licensee’s landed duty paid cost (or the equivalent of
      such pricing) for such Licensed Products (“Below
      Cost Sales”) but only
      to
      the extent that the aggregate gross sales of Below Cost Sales in any Annual
      Period (as hereinafter defined) do not exceed fifteen percent (15%) of total
      gross sales
      for such
      Annual Period;
      and,
      (iv) all of Licensee’s actual out-of-pocket expenses for samples, displays,
      brochures, gift-with-purchase goods and promotional materials and packaging
      supplies actually supplied to Licensee’s customers (but not including Licensee’s
      expenditures for any advertising of Licensed Products). Notwithstanding the
      terms of sub-section (iii) above, Licensee shall not be excused from paying
      royalties on sales of Licensed Products above the 15% level and on sales that
      are not Below Cost Sales. 

     

    The
      reserve for shipping and handling charges, credit card fees, refunds, credits
      or
      other actual trade and cash discounts and uncollectibles shall initially be
      10%
      of Net Sales and shall be adjusted (and liquidated, if applicable) periodically
      based on actual experience.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    E. Subsidiary.
      Any
      corporation or other entity which is 100% directly or indirectly owned by
      Licensee. 

     

    F. Affiliate.
      Any
      corporation or other entity which is at least 50% owned by
      Licensee.

    

    G. Annual
      Period.
      A 12
      month period of time from January 1st
      of a
      given year through December 31st
      of the
      same year, except the first Annual Period herein shall run
      from
      the
Effective
      Date through December 31, 2007.

     

    ARTICLE
      2

    Grant
      of License Rights

    

    Upon
      the
      terms and conditions of this Agreement, Licensor hereby grants to Licensee,
      during the term of this Agreement, the sole and exclusive right and license
      to
      use the Licensed Mark in the Territory as a trademark in connection with the
      development, manufacture, promotion, advertising, distribution and sale of
      Licensed Products and on all brand identification materials, such as product
      packing, containers, promotional and sale materials, publicity materials, and
      in
      all advertising media, such as newspapers, magazines, radio,
      television,
      infomercials,
      live television shopping, the world-wide web, cinema
      and similar media both presently existing or developed in the future. Sales
      of
      Licensed Products shall
      only
      be
      through any
      or
      all the channels of trade described
      in
      Article
      1, paragraph A,
      but
      shall not include mass marketing stores such as Target, Walmart, K-Mart, Sam’s
      Club, Costco and Dollar General. Except as specified in Section 1(B) above,
      during the term of this Agreement and any extensions thereof, Licensor shall
      not
      grant any rights to any third party in connection with the Licensed Products
      for
      the Licensed Marks or any derivative thereof without Licensee’s
      approval.
      

    

    ARTICLE
      3

    Exclusivity
      of License

    

    Licensee
      shall have exclusive rights to all of the licensed products described in Article
      1, paragraph B, above. All
      rights not specifically granted to Licensee herein shall be reserved for
      Licensor,
      such
      that Licensor may use or grant others the right to use the Licensed Marks on or
      in connection with goods of all other types and descriptions in the Territory
      other than Licensed Products. Licensor further acknowledges and consents to
      Licensee obtaining other additional licenses for the manufacture and/or
      distribution of products similar to the Licensed Products during the term of
      this Agreement. Licensee, will not, during the term of this Agreement and
      thereafter, attack either Licensor's title in and to the Licensed Marks or
      the
      validity of this License.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      4

    

    Term
      of Agreement

    

    Subject
      to the rights of termination set forth in this Agreement, the initial term
      of
      this Agreement shall commence on the Effective Date and terminate on December
      31, 2011 (the "Initial Term"). Licensee shall have the option to renew this
      Agreement for an additional five-year period (through December 31, 2016) as
      long
      as the Minimum Royalties (as hereinafter defined) for the Initial Term have
      been
      fully paid. Licensee shall notify Licensor of its intent to either renew or
      not
      renew no later than December 31, 2010.
      Following the expiration of the first renewal term on December 31, 2016, the
      Agreement shall renew pursuant to the provisions of Article 8 below. The Initial
      Term and all permitted extensions thereof shall be collectively defined as
      the
“Term”.

    

    ARTICLE
      5

    

    Confidentiality

    

    The
      Parties acknowledge that all information relating to the business and operations
      of Licensor and Licensee which they learn or have learned during or prior to
      the
      Term of this Agreement is confidential. The Parties acknowledge the need to
      preserve the confidentiality and secrecy of such information and agree that,
      both during the Term of this Agreement and after the expiration or termination
      hereof, they shall not use or disclose same, and shall take all necessary steps
      to preserve in all respects such confidentiality and secrecy. The provisions
      of
      this Section shall not apply with respect to any information which has entered
      the public domain through no fault of the Parties. The provisions of this
      Section shall survive the expiration or termination of this
      Agreement.

    

    ARTICLE
      6

    

    Duties
      of Licensee

    

    A.  Commercially
      Reasonable
      Efforts.
      During
      the Term of this Agreement, Licensee will use its commercially
      reasonable
      efforts
      to exploit the rights granted herein throughout the Territory and to
      sell the
      maximum quantity of Licensed Products therein consistent with the standards
      and prestige represented by the Licensed Mark.

    

    B.
       Design
      and Sample making.
      Licensor shall not be responsible for the production, design or sample making
      of
      the Licensed Products and Licensee shall bear all costs related
      thereto.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      7

    

    Quality
      Standards

    

    
      	A.	
              Manufacture
                of Licensed Products; Quality Control.

            

    

    

    
      	(i)         
               	
              The
                contents and workmanship of Licensed Products shall be at all times
                of the
                quality
                consistent with the reputation, image and prestige of the Licensed
                Marks
                and Licensed Products shall be distributed and sold with packaging
                and
                sales promotional materials appropriate for such quality
                products. The parties agree that the Licensed Products shall
                be
                of
                the
                quality, prestige and price similar to those of La prairie & Estee
                Lauder for skincare, Clarins & L’Oreal
                for cosmetics,
                and Calvin Klein & Ralph Lauren for fragrances as those products are
                positioned in the marketplace
                as of the Effective Date. 

            

    

    

    
      	(ii)   
                    	
              Licensor,
                at its sole discretion, may from time-to-time determine the re-positioning
                of the Licensed Mark. 

            

    

    

    

    
      	(iii)   
                   	
              All
                Licensed Products shall be manufactured, labeled, sold, distributed
                and
                advertised in accordance with all applicable national, state and
                local
                laws and regulations. 

            

    

    

    
      	(iv)   
                  	
              Licensee
                shall submit to Licensor for prior written approval two preproduction
                samples of proposed Licensed Products, along with their proposed
                packaging
                and any other accompanying sales materials (the "Approval Package")
                for
                Licensor's review, which approval shall not be unreasonably withheld.
                In
                the event that Licensor does not respond to Licensee within 15 days
                of the
                receipt of any and all items within the scope of the Approval Package,
                any
                such item shall be deemed approved.

            

    

    

    
      	(v)   
                  	
              During
                the Term of this Agreement, upon Licensor's request, Licensee shall
                submit, free of charge to Licensor, the then current production samples
                of
                each Licensed Product marketed. Production samples submitted by Licensee
                for this purpose may be retained by Licensor. Further, Licensee shall
                provide Licensor with 100 samples of the various Licensed Products
                being
                distributed each year for Licensor to use for public relations and
                promotional purposes. All Licensed Products to be sold hereunder
                shall be
                at least equal in quality to the samples presented to the Licensor
                in the
                Approval Package. Licensor and its duly authorized representatives
                shall
                have the right, upon reasonable advance notice and during normal
                business
                hours, at Licensor's expense, to examine Licensed Products in the
                process
                of being manufactured and to inspect all facilities utilized by Licensee
                in connection therewith.

            

    

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    B. Required
      Markings.
      Licensee
      shall cause to appear on all packaging of Licensed Products, (i) "the trademark,
      KATHY HILTON is licensed to OmniReliant Corp."; and such additional legends,
      markings and notices complying with the requirements of any law or regulation
      in
      the Territory and; (ii) such other legends, markings and notices as Licensor,
      from time-to-time, may reasonably request.

    

    C. Distribution.
      In
      order to maintain the reputation, image and prestige of the Licensed Marks,
      Licensee's normal distribution patterns shall consist of those
      means of
      distribution described in Article 2 of this Agreement.

    

    D. Sales
      Force.
      During
      the term of this Agreement, Licensee shall maintain a non-exclusive sales force
      suitable to carry out the purpose of this Agreement.

    

    ARTICLE
      8

    

    Guaranteed
      Minimum Royalties & Right of Licensor to Terminate for Failure to Obtain
      Minimum Annual Sales Following the Second Extended
      Term

    

    A.
       Guaranteed
      Minimum Royalties.
      In
      consideration of both the license granted herein and the services to be
      performed by Ms. Kathy Hilton hereunder
      including, but not limited to, appearances on television shopping networks,
      in
      infomercials, and other personal appearances,
      Licensee shall pay to Licensor an annual guaranteed minimum royalty (the
“Guaranteed Minimum Royalty” or “Guaranteed Minimum Royalties”) as
      follows:

    

     
      ANNUAL PERIOD GUARANTEED MINIMUM ROYALTIES 

     

    
      	
              Annual
                Period

            	 	
              Dates

            	 	
              Minimum
                Royalty

            
	
              1

            	 	
              Effective
                Date to 12/31/07

            	 	
              *

            
	
              2

            	 	
              1/1/07
                to 12/31/08

            	 	
              *

            
	
              3

            	 	
              1/1/08
                to 12/31/09

            	 	
              *

            
	
              4

            	 	
              1/1/09
                to 12/31/10

            	 	
              *

            
	
              5

            	 	
              1/1/10
                to 12/31/11

            	 	
              *

            

    

    

     In
      the
      event that the Initial Term of this Agreement is extended for an additional
      five-year term (January 1st,
      2012 -
      December 31st,
      2016
      (the “First Extended Term”), the Guaranteed Minimum Royalty for each Annual
      Period of the First Extended Term shall be *.
      Subject to Licensor’s right to terminate in Sub Section (B) below for Licensee’s
      failure to reach the specified minimum annual sales, Licensee shall have the
      right to extend the Term of this Agreement for continuing subsequent five-year
      extensions by paying an increased Guaranteed Minimum Royalty of $* per Annual
      Period for each subsequent five-year period. In other words, the Guaranteed
      Minimum Royalty for each Annual Period from 1/1/17 through 12/31/21 (the “Second
      Extended Term”) will be $* and the Guaranteed Minimum Royalty for each Annual
      Period from 1/1/22 through 12/31/26 (the “Third Extended Term”) will be $* and
      so forth.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Notwithstanding
      the foregoing, if Licensee fails to pay the Guaranteed Minimum Payment for
      any
      Annual Period, that failure to make the Guaranteed Minimum Payment will not
      be
      deemed to constitute a breach of this Agreement, or to generate a claim for
      monetary relief, but shall merely give Licenser the right to terminate this
      Agreement upon 60 days’ written notice to Licensee.
      Upon
      such
      event, the parties agree that Licensee shall pay Licensor a termination fee
      of *
      within 60 days of the termination date, at which point Licensor shall be free
      to
      exploit itself or license a third-party to exploit the Licensed Products bearing
      the Licensed Marks. 

    

    The
      Guaranteed Minimum Royalty payable for each Annual Period shall be paid to
      Licensor semi-annually in advance on the first day of the month of each half
      year starting with the payment of the Guaranteed Minimum Royalty for the
      2nd
      Annual
      Period, such that each half of the Guaranteed Minimum Royalty Payments shall
      be
      paid on January 1st
      and July
      1st
      of each
      Annual Period. Notwithstanding the foregoing, the Guaranteed Minimum Royalty
      for
      the first Annual Period shall be paid thirty
      (30) days following the Effective Date.
      In the
      event that such payment is not timely made, Licensor shall have the right to
      cancel this Agreement, making it void ab
      initio,
      upon
      5-days written notice to cure.

     

    B.
       Right
      to Terminate for Failure to Reach Minimum Annual Sales after the First Extension
      Term.
      Notwithstanding Licensee’s willingness to continue paying the specified
      Guaranteed Minimum Royalties specified above, Licensor shall have the right
      to
      terminate this Agreement and all rights granted hereunder in the event that
      Licensee does not reach the Minimum Annual Sales of Licensed Products in the
      Annual Periods specified below:

    

    
      	
              Minimum
                Sales of Licensed Products

              To
                Obtain Right to Extend Term for an

              Additional
                Period of Five Years

            	 	
              Dates
                of Term Extension if Required Minimum Sales are
                Achieved

            
	
              $*
                in the Annual Period 1/1/2015 through 12/31/2015

            	 	
              1/1/2017
                through 12/21/2021

            
	
              $*
                in the Annual Period 1/1/2020 through 12/31/2020

            	 	
              1/1/2022
                through 12/21/2026

            
	
              $*
                in the Annual Period 1/1/2025 through 12/31/2025

            	 	
              1/1/2027
                through 12/21/2031

            
	
              $*
                in the Annual Period 1/1/2030 through 12/31/2030

            	 	
              1/1/2032
                through 12/21/2036

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      9

    

    Sales
      Royalty; Stock in OmniReliant; Withholding Taxes

    

    A. Licensee
      shall pay to Licensor a sales royalty (the “Sales Royalty” or “Sales Royalties”)
      of *%) on each Annual Period's Net Sales on sales made in all venues
      other
      than infomercials.
      The Sales Royalty payable hereunder shall be accounted for and paid on a
      quarterly basis within forty-five (45) days after the close of the prior
      quarter's sales. In other words, the actual Sales Royalty will be paid 45-days
      in arrears computed on the basis of Net Sales during the quarter ending 45
      days
      before the period upon which royalties are being paid, with a credit for any
      Guaranteed Minimum Royalties and Sales Royalty payments previously made to
      Licensor.

     

    B. Licensee
      shall pay Licensor a Sales Royalty payment of a minimum of *%) of Net Sales,
      on
      all revenues generated from the sale of the Licensed Products through
      infomercials sold in connection the Licensed Products. The Sales Royalties
      shall
      be paid quarterly, along with sufficient reports justifying the calculation
      of
      the Sales Royalty payments within forty-five (45) days after the close of the
      prior quarter’s sales. Should the infomercial’s performance exceed a *) media
      ratio, meaning the revenues generated by the infomercial exceeds three times
      the
      expenditures on the media, the Sales Royalty shall be increased to *%) of the
      Adjusted Gross Collected Revenues. The
      Sales
      Royalty on sales made through direct response infomercials will not
      exceed *%) of the Net Sales in infomercials. The Sales Royalty on all up-sells
      of Licensed Products shall be *%) greater than the applicable royalty rate
      based
      on the sliding scale stated in this Sub Section (B) attributable to the sale
      otherwise occurring during such up-sell. “Expenditures on the media” as that
      phrase is used herein shall be defined as the actual out-of-pocket expenses
      attributable to purchasing television air time and shall not include any and
      all
      costs associated with the production of the show content for such infomercial.
      

    

    C. If
      applicable, on behalf of Licensor, Licensee shall compute any payment of
      required taxes (other than United States Federal, state or local income taxes)
      which any governmental authority in the Territory may impose on trademark
      royalties being paid from such country. The amount of such taxes and
      the
      reasonable costs incurred by Licensee in determining those taxes, including,
      but
      not limited to, the cost of professional advisors, shall
      be
      deducted from the payments of royalties, provided that Licensor is entitled
      under applicable law to credit the amount of such taxes against its United
      States Federal Income Tax obligations. Licensee shall furnish Licensor with
      an
      official receipt (together with a translation
      thereof
      if not in English) promptly after each such payment of taxes. In the event
      such
      taxes are not paid when due, all resulting penalties and interest shall be
      borne
      by Licensee.

    

    D. The
      payment of Sales Royalties for any Annual Period in excess of the payments
      of
      the Guaranteed Minimum Royalty for the same Annual Period shall be credited
      against the Guaranteed Minimum Royalty due to Licensor for any other Annual
      Period.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    E. In
      addition to the Sales Royalties and Guaranteed Minimum Royalties being paid
      to
      Licensor herein, Licensor shall be further compensated by the receipt of *%)
      of
      the total outstanding
      shares of stock
      of
      OmniReliant Corp. as of the Effective Date. The parties acknowledge and agree
      that as of the Effective Date, the total outstanding shares of stock is * and
      thus Licensor shall receive * shares of stock of OmniReliant Corp. upon
      execution hereof. Licensee anticipates that it will bring in future equity
      investors into OmniReliant Corp. that will be issued shares of stock which
      will
      dilute Licensor’s ownership percentage and thereafter OmniReliant Corp. will
      become a wholly-owned subsidiary of a public company, at which point Licensor’s
      stock will be exchanged for stock in the public company,
      which
      is currently anticipated to be approximately equivalent to *% initial
      ownership
      in
the
      public
      company
      on a
      fully diluted basis (a calculation which includes all outstanding warrants
      and
      options being exercised).

     

    F. 
      The
      addresses for all Royalty Payments, including the Guaranteed Minimum Royalty
      shall be as follows:

    

    
      	(1)      
                	
              *%
                of the initial Guaranteed Minimum Royalty payable upon execution
                hereof
                together with a stock certificate representing *% of the total outstanding
                shares of OmniReliant and *% of all other royalties payable hereunder
                to:

            

    

     

    KHR
      Licensing Company, Inc.

       250
      North
      Canon Drive, 

    2nd
      Floor, 

    Beverly
      Hills, CA 90210

    

    
      	(2)      
                	
              *%
                of the initial Guaranteed Minimum Royalty (which does not include
                any
                remuneration that Licensor is receiving from Licensee in stock benefits)
                payable upon
                execution hereof and *% of all other royalties to:
                

            

    

    

    GLMAC

    2875
      NE
      191st
      Street

    Suite
      501

    Aventura,
      Fl. 33180

    Attn
      :
      Mr. Lucien Lallouz  

    

    ARTICLE
      10

    

    Advertising

    

    Licensee
      agrees to spend in the United States for "consumer advertising" (as defined
      below) *% of Net Sales during each Annual Period.

    

    For
      the
      other markets in the Territory, Licensee or its distributors will jointly spend
      not less than *% of Net Sales in such markets during each
      Annual
      Period.
      For
      purposes of television shopping networks, one-half (1/2) of the wholesale sales
      to television shopping networks shall be attributable to consumer
      advertising.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    "Consumer
      Advertising" shall be understood to include,
      but not
      be limited to,
      newspapers, magazines, television, live
      television shopping, infomercials,
      radio, billboards (including related artwork and production charges
      for
      these
      five categories), retailer demonstration charges, retailer's catalogues,
      gifts-with-purchase including the gift aspect of value sets, direct mail,
      remittance envelopes, blow-ins, billing inserts (both scented and unscented),
      product samples, free goods (including those to Licensor for events and other
      public relation activities), window and counter displays (including testers,
      dummies, counter cards and other visual aids), special events, contests,
      publicity and promotions and cooperative advertising.

    

    Licensor understands
      the critical importance of live appearances on television shopping networks
      and
      infomercial production sessions. Therefore, Licensor undertakes
      at Licensee's request to make Ms. Kathy Hilton ("KH") available during
      each year of the term of this Agreement at
      reasonable intervals and for reasonable periods (which shall involve a maximum
      of eight
      (8)
      appearances of three (3) days each, exclusive of travel, for television shopping
      appearances, two (2) appearances of two (2) days each for infomercial production
      and two (2) appearances of one (1) day each for other personal
      appearances.
      Licensee shall also be entitled to the use of KH's likeness for advertising
      and
      promotional purposes upon Licensor's
      prior written approval first being obtained in each instance, which approval
      shall not be unreasonably withheld or delayed. Licensor shall make every
      reasonable effort, in light of KH's busy schedule, at the request of the
      Licensee, to arrange for KH's cooperation for publicity launch parties, personal
      appearances and radio and TV interviews (which shall be included in KH's
      obligations of eight
      (8), two (2)
      and
two
      (2)
      appearances discussed above). Licensee shall reimburse Licensor for the
      reasonable costs involved in providing KH plus one other individual, selected
      by
      Licensor, if they wish to attend, with first-class travel, lodging, food and
      other related expenses, which shall include the cost of hair, makeup and
      security personnel, mutually agreed upon in advance of each appearance attended
      by KH at Licensee's request. If KH fails to appear for a scheduled Licensor
      approved event, Licensee will have the right to deduct up to $* of its
      non-refundable out of pocket expenses incurred in connection with such specific
      event from the Sales Royalty. The failure to appear at a scheduled event could
      have a material adverse effect on the Licensee's ability to market the Licensed
      Products.

    

    ARTICLE
      11

    

    Sales
      Statement; Books and Records; Audits

    

    A. Sales
      Statement.
      Licensee
      shall deliver to Licensor at the time each Sales Royalty payment is due, a
      reasonably detailed report signed by a duly authorized officer of Licensee
      indicating by quarter the Net Sales and a computation of the amount of Sales.
      Such statement shall be furnished to Licensor whether or not any Royalties
      are
      payable hereunder for said period or whether any Licensed Products have been
      sold during the period of which such statement is due. Licensee shall deliver
      to
      Licensor, not later than ninety (90) days after the close of each Annual Period
      during the Term (or portion thereof in the event of prior termination for any
      reason), a statement signed by a duly authorized officer relating to said entire
      Annual Period, setting forth the same information required to be submitted
      by
      Licensee in accordance with the first Section of this Article and also setting
      forth the information concerning expenditures for the advertising and promotion
      of Licensed Products during such Annual Period required by Article 10
      hereof.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    B. Books
      and Records; Audits.
      Licensee shall prepare and maintain, in such manner as will allow its
      accountants to audit same in accordance with generally accepted accounting
      principles, complete and accurate books of account and records (specifically
      including without limitation the originals or copies of documents supporting
      entries in the books of account) in which accurate entries will be made covering
      all transactions, including advertising expenditures, arising out of or relating
      to this Agreement. Licensee shall keep separate general ledger accounts for
      such
      matters that do not include matters or sales related to this Agreement. Licensor
      and its duly authorized representatives shall have the right, for the duration
      of this Agreement and for one (1) year thereafter, during regular business
      hours
      and upon seven (7) business days advance notice (unless a shorter period is
      appropriate in the circumstances), to audit said books of account and records
      and examine all other documents and material in the possession or under the
      control of Licensee with respect to the subject matter and the terms of this
      Agreement, including, without limitation, invoices, credits and shipping
      documents, and to make copies of any and all of the above. All such books of
      account, records, documents and materials shall be kept available by Licensee
      for at least two (2) years after the end of the Annual Period to which they
      relate. If, as a result of any audit of Licensee's books and records, it is
      shown that Licensee's payments were less than the amount which should have
      been
      paid by an amount equal to *% or more of the payments actually made with respect
      to sales occurring during the period in question, Licensee shall reimburse
      Licensor for the cost of such audit and shall make all payments required to
      be
      made (along with accrued interest at the rate of *%)) to eliminate any
      discrepancy revealed by said audit within ten (10) days after Licensor's demand
      therefore.

    

    ARTICLE
      12

    

    Indemnification
      and Insurance

    

    A. 
      Indemnification of Licensor.
      Licensee of hereby agrees to save and hold Licensor, Kathy Hilton and its agents
      harmless of and from and to indemnify them against any and all claims, suits,
      injuries, losses, liability, demands, damages and expenses (including, subject
      to sub paragraph D below, Licensor's reasonable attorneys' fees and expenses)
      which Licensor or Kathy Hilton may incur or be obligated to pay, or for which
      either may become liable or be compelled to pay in any action, claim or
      proceeding against it, for or by reason of any acts, whether of omission or
      commission, that may be committed or suffered by Licensee or any of its
      servants, agents or employees in connection with Licensee's performance of
      this
      Agreement, including but not limited to those arising out of: (i) the alleged
      defect in any Licensed Product produced by Licensee under this Agreement; (ii)
      the manufacture, labeling, sale, distribution or advertisement of any Licensed
      Product by Licensee in violation of any national, state or local law or
      regulation or the breach of Article 5 hereof; (iii) any allegations of any
      nature and kind with regard to the advertisement, distribution and sale of
      Licensed Products.. The provisions of this Section and Licensee's obligations
      hereunder shall survive the expiration or termination of this
      Agreement.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    B. Insurance
      Policy.
      Licensee shall procure and maintain at its own expense in full force and effect
      at all times during which Licensed Products are being sold, with a responsible
      insurance carrier acceptable to Licensor, a public liability insurance policy
      including products liability coverage with respect to Licensed Products with
      a
      limit of liability not less than Two Million Dollars ($2,000,000). The liability
      coverage shall increase to a maximum amount of Three Million Dollars
      ($3,000,000) when sales of Licensed Products equal or exceed $10,000,000
      annually. It shall be acceptable if such coverage is provided by a product
      liability policy and an additional umbrella policy. Such insurance policies
      shall be written for the benefit of Licensee and Licensor and shall provide
      for
      at least thirty (30) days prior written notice to the Parties of the
      cancellation or substantial modification thereof. Licensor
      and Ms.
      Kathy Hilton
      shall
      be
      named as additional insured parties on each such policy. Such insurance may
      be
      obtained by Licensee in conjunction with a policy which covers products other
      than Licensed Products.

    

    C. Evidence
      of Insurance.
      Licensee shall, from time to time upon reasonable request by Licensor, promptly
      furnish or cause to be furnished to Licensor evidence in the form and substance
      reasonably
      satisfactory
      to Licensor of the maintenance of the insurance required by subsection B
      above,
      including, but not limited to, copies of policies, certificates of insurance
      (with applicable riders and endorsements) and proof of premium payments. Nothing
      contained in this Section shall be deemed to limit in any way the
      indemnification provisions of the sub Section A above.

    

    D. Notice.
      Licensor will give Licensee notice of any action, claim, suit or proceeding
      in
      respect of which indemnification may be sought and Licensee shall defend such
      action, claim, suit or proceeding on behalf of Licensor. In the event
      appropriate action is not taken by Licensee within thirty (30) days after its
      receipt of notice from Licensor, then Licensor shall have the right, but not
      the
      obligation, to defend such action, claim, suit or proceeding. Licensor may,
      subject to Licensee's indemnity obligation under sub Section A above, be
      represented by its own counsel in any such action, claim, suit or proceeding.
      In
      any case, the Licensor and the Licensee shall keep each other fully advised
      of
      all developments and shall cooperate fully with each other in all respects
      in
      connection with any such defense as is made. Nothing contained in this sub
      Section shall be deemed to limit in any way the indemnification provisions
      of
      the sub Section A above except that in the event appropriate action is being
      taken by Licensee, by counsel reasonably acceptable to Licensor, with respect
      to
      any not-trademark or intellectual property action, claim, suit or proceeding,
      Licensor shall not be permitted to seek indemnification from Licensee for
      attorneys' fees and expenses incurred without the consent of Licensee. In
      connection with the aforesaid actions, claims and proceedings, the parties
      shall, where no conflict of interest exists, seek to be represented by common
      reasonably acceptable counsel.
      In connection with actions, claims or proceedings involving trademark or other
      intellectual property matters which are subject to indemnification hereunder,
      Licensor shall at all times be entitled to be represented by its own counsel,
      for whose reasonable fees and disbursements it shall be entitled to
      indemnification hereunder.

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      13

    

    The
      Licensed Marks

    

    A. Licensee
      shall not join any name or names with the Licensed Marks so as to form a new
      mark without the prior written consent of Licensor,
      which
      shall not be unreasonably withheld.
      Licensee acknowledges the validity of the
      Licensed Marks, the secondary meaning associated with the Licensed Marks and
      the
      rights of Licensor with respect to the Licensed Marks in the Territory in any
      form or embodiment thereof and the goodwill attached or which shall become
      attached to the Licensed Marks in connection with the business and goods in
      relation to which the same has been, is or shall be used. Sales by Licensee
      shall be deemed to have been made by Licensor for purposes of trademark
      registration and all uses of the Licensed Marks by Licensee shall inure to
      the
      benefit of Licensor. Licensee shall not, at any time, do or suffer to be done,
      any act or thing which may in any way adversely affect any rights of Licensor
      in
      and to the Licensed Marks or any registrations thereof or which, directly or
      indirectly, may reduce the value of the Licensed Marks or detract
      from
      their
      reputation. Licensee will use its best efforts to distribute Licensed Products
      in the proper channels comparable to those of the brands outlined in Article
      7 A
      (i) herein.

    

    B. At
      Licensor's request, Licensee shall execute any documents, including Registered
      User Agreements, reasonably required by Licensor to confirm the respective
      rights of Licensor in and to the Licensed Marks in each jurisdiction in the
      Territory and the respective rights of Licensor and Licensee pursuant to this
      Agreement. Licensee shall cooperate with Licensor, in connection with the filing
      and the prosecution by Licensor of applications to register or renew the
      Licensed Marks in International Class 3 for Licensed Products sold hereunder
      in
      each jurisdiction in the Territory where Licensee has reasonably requested
      the
      same. Such filings and prosecution outside the U.S. shall be in the name of
      Mr.
      Richard Hilton or Licensor, as Licensor shall so decide, the expense of which
      will be fully paid by Licensor.
      Nothing
      contained herein shall obligate Licensor to prosecute any trademark application
      outside the U.S. which is opposed or rejected in any country after the
      application is filed, provided, however, that any such prosecution shall go
      forward if (a) Licensee requests same; (b) Licensee
      and
      Licensor share the costs for
      same
      directly; and (c) such prosecution is in Licensor's name and directed by
      Licensor. Licensor shall cooperate fully with any such prosecution.

    

    C. Licensee
      shall use the Licensed Marks in each jurisdiction in the Territory strictly
      in
      compliance with the legal requirements obtained therein and shall use such
      markings in connection therewith as may be required by applicable legal
      provisions. Licensee shall cause to appear on all Licensed Products and on
      all
      materials on or in connection with which the Licensed Marks are used, such
      legends, markings and notices as may be reasonably necessary in order to give
      appropriate notice of any trademark, trade name or other rights therein or
      pertaining thereto. 

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    D. Licensee
      shall never challenge the validity of the Licensed Marks or any application
      for
      registration or registration thereof or any rights of Licensor therein. The
      foregoing shall not be deemed to prevent Licensee from asserting, as a defense
      to a claim of breach of contract brought against Licensee by Licensor for
      failure to perform its obligations hereunder, that its ceasing performance
      under
      this Agreement was based upon Licensor's failure to own the Licensed Marks
      in
      the United States of America, provided that it is established in a court of
      law
      that Licensor does not own the Licensed Marks, that the Licensed Marks are
      owned
      by a third party so as to preclude the grant of the license provided herein.
      

    

    E. In
      the
      event that Licensee learns of any infringement or imitation of the Licensed
      Marks or of any use by any person of a trademark similar to the Licensed Marks,
      it promptly shall notify Licensor thereof. In no event, however, shall Licensor
      be required to take any action if it deems it inadvisable to do so.

    

    F. Licensor
      shall be
      required to protect, indemnify and hold
      Licensee harmless against, or be liable to Licensee for, any liabilities,
      losses, expenses or damages which may be suffered or incurred by Licensee as
      a
      result of any infringement or allegation thereof by any other person, firm
      or
      corporation, other than by reason of Licensor's breach of the representations
      made and obligations assumed herein. Licensor and Ms. Kathy Hilton make no
      warranties or representations as to the registrability of the Licensed Marks
      in
      the various worldwide trademark offices in the Territory, except that Licensor
      warrants and represents that a trademark application will be filed for the
      Licensed Mark in the United States Patent and Trademark Office in International
      Class 3. Licensor and Ms. Kathy Hilton warrant and represent that they are
      not
      aware of any registrations or pending applications in International Class 3,
      or
      otherwise, that would preclude or restrict Licensee from selling the Licensed
      Products anywhere in the Territory.

     

    ARTICLE
      14

    

    Defaults;
      Termination

    

    A. The
      following conditions and occurrences shall constitute "Events of Default" by
      Licensee: 

    

    
      	1.         
               	
              the
                failure to pay Licensor the full amount due it under any of the provisions
                of this Agreement by the prescribed date for such payment;
                

            

    

    

    
      	2.        
                	
              the
                failure to deliver full and accurate reports pursuant to any of the
                provisions of this Agreement by the prescribed due date therefore;
                

            

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    
      	3.        
                	
              the
                making or furnishing of a knowingly false statement in connection
                with or
                as part of any material aspect of a report, notice or request rendered
                pursuant to this Agreement; 

            

    

    

    
      	4.         
               	
              the
                failure to maintain the insurance required by Article 12;
                

            

    

    

    
      	5.         
               	
              use
                of the Licensed Marks in an unauthorized or unapproved manner;
                

            

    

    

    
      	6.         
               	
              Licensee's
                use of other trademarks in association with the Licensed Products,
                without
                prior written consent of Licensor;

            

    

    

    
      	7.         
               	
              the
                commencement against Licensee of any proceeding in bankruptcy, or
                similar
                law, seeking reorganization, liquidation, dissolution, arrangement,
                readjustment, discharge of debt, or seeking the appointment of a
                receiver,
                trustee or custodian of all or any substantial part of Licensee's
                property, not dismissed within sixty (60) days, or Licensee's making
                of an
                assignment for the benefit of creditors, filing of a bankruptcy petition,
                its acknowledgment of its insolvency or inability to pay debts, or
                taking
                advantage of any other provision of the bankruptcy laws;
                

            

    

    

    
      	8.        
                	
              the
                material breach of any other material promise or agreement made
                herein.

            

    

     

    B. In
      the
      event Licensee fails to cure (i) an Event of Default within thirty (30) days
      after written notice of default is transmitted to Licensee under Article 14A.3,
      A.5, A.6, or A.7; or (ii) Licensee fails to cure any other Event of Default
      within sixty (60) days after written notice of default is transmitted to
      Licensee or within such further period as Licensor may allow, this Agreement
      shall, at Licensor's option, be terminated, on notice to Licensee, without
      prejudice to Licensor's right to receive other payments due or owing to Licensor
      under this Agreement or to any other right of Licensor, including the right
      to
      damages and/or equitable relief,
      except
      with respect to a failure to make all of the payments due under paragraph A
      of
      this Article 14, which shall only give rise to a right of termination and the
      payment of a termination fee of $100,000 by Licensor and not a right to
      recover
      Guaranteed Minimum Royalties.
      

    

    C. Upon
      the
      termination of this Agreement; or, in the event this Agreement is not renewed
      as
      provided in Article 4 above; or, in the event of the termination or expiration
      of a renewal term of this Agreement, Licensee, except as specified below, will
      immediately discontinue use of the Licensed Marks, will not resume the use
      thereof or adopt any colorable imitation of the Licensed Marks or any of part
      thereof, will promptly deliver and convey to Licensor (free of all liens and
      encumbrances) (i) all plates, engravings, silk-screens, or the like used to
      make
      or reproduce the Licensed Marks, and (ii) all items affixed with likeness or
      reproductions of the Licensed Mark, whether Licensed Products, labels, bags,
      hangers, tags or otherwise, and, upon request by Licensor, will assign to
      Licensor such rights as Licensee may have acquired in the Licensed Marks. In
      the
      event that this Agreement expires or is terminated by Licensor due to Licensee's
      default, Licensor shall have an option, but not an obligation, to purchase
      any
      bottle molds and tooling for the Licensed Products, free of all liens and other
      encumbrances, at a price equal to Licensee's cost for same established by
      submission of bill(s) from supplier and satisfactory proof of payment for same.
      Licensor shall pay such cost as follows: 50% at closing and the balance paid
      by
      six (6) equal monthly payments. Licensor shall, at the time it exercises its
      purchase option, enter into a security agreement with Licensee with respect
      to
      the molds, which shall entitle Licensee to foreclose on its security interest
      in
      the molds in the event Licensor fails to make any installment payments due
      within fifteen (15) days after receiving notice of default. Licensor shall
      exercise its aforesaid option within thirty (30) days after Licensee's
      submission of documents establishing the cost thereof. Notwithstanding the
      foregoing, if Licensor has terminated this Agreement due to Licensee's default,
      Licensor, at its option, shall be entitled, in exercising its purchase option,
      to deduct from the cost price an amount equal to the sales and guaranteed
      minimum royalties Licensor is entitled to recover, for which deduction Licensee
      shall receive a credit. In the event Licensor exercises its aforesaid option,
      Licensee shall be precluded forever from using the bottle molds or tools and
      from selling or otherwise transferring or licensing any rights whatsoever in
      the
      molds or tools to any third party. In the event that Licensor does not exercise
      its aforesaid option, Licensee shall not use the bottle molds or tools or sell
      or otherwise transfer or license any rights whatsoever in the bottle mold or
      tools to any third party for a period of two (2) years after the date of
      termination of the Agreement. In the event of any permitted use of the bottle
      mold and/or tools by Licensee, Licensee shall not use in connection therewith
      the Licensed Mark, any trademark confusingly similar thereto, any trade dress
      associated with the Licensed Products, any advertising or promotional materials
      used in connection with the Licensed Products or any other markings or materials
      which would cause a reasonable consumer to believe that any new items sold
      using
      the bottle mold and tools are authorized by Licensor or in some way associated
      with the Licensed Marks. Any permitted sale or license of the bottle molds
      and/or tools by Licensee shall prohibit in writing the purchaser or licensee
      from using the Licensed Marks, and any confusingly similar trademarks and any
      such trade dress, advertising, promotional materials, markings or other
      materials and shall expressly make Licensor a third party beneficiary of such
      provision.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      15

    

    Rights
      on Expiration or Termination

    

    A. If
      this
      Agreement expires or is terminated, Licensee shall cease to manufacture Licensed
      Products (except for work in process or to balance component inventory) but
      shall be entitled, for an additional period of twelve (12) months only, on
      a
      non-exclusive basis, to sell and dispose of its inventory subject, however,
      to
      the provisions of Article 9. Such sales shall be made subject to all of the
      provisions of this Agreement and to an accounting for and the payment of Sales
      Royalties thereon but not to the payment of Guaranteed Minimum Royalties. Such
      accounting and payment shall be made monthly. 

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    B. In
      the
      event of termination in accordance with Article 14 above, Licensee shall pay
      to
      Licensor, the Sales Royalty then owed to it pursuant to this Agreement or
      otherwise. 

    

    C.
       Notwithstanding
      any termination in accordance with Article 14 above, Licensor shall have and
      hereby reserve all rights and remedies which it has, or which are granted to
      it
      by operation of law, to enjoin the unlawful or unauthorized use of the Licensed
      Mark, and to collect royalties payable by Licensee pursuant to this Agreement
      and to be compensated for damages for the breach of this Agreement.

    

    D. Upon
      the
      expiration or termination of this Agreement, Licensee shall deliver to Licensor
      a complete and accurate schedule of Licensee's inventory of Licensed Products
      and of related work in process then on hand (including any such items held
      by
      Subsidiaries, Affiliates or others on behalf of Licensee) (hereinafter referred
      to as "Inventory”). Such schedule shall be prepared as of the close of business
      on the date of such expiration or termination and shall reflect Licensee's
      cost
      of each such item. Notwithstanding anything contained to the contrary in this
      Agreement, Licensor thereupon shall have the option, exercisable by notice
      in
      writing delivered to Licensee within thirty (30) days after its receipt of
      the
      complete Inventory schedule, to purchase any or the entire Inventory, free
      of
      all liens and other encumbrances, for an amount equal to Licensee's cost plus
      *%. In the event such notice is sent by Licensor, Licensee shall deliver to
      Licensor or its designee all of the Inventory referred to therein within thirty
      (30) days after Licensor's said notice and, in respect of any Inventory so
      purchased, assign to Licensor all then outstanding orders from Licensee to
      its
      suppliers and to Licensee from its customers. Licensor shall pay Licensee for
      such Inventory within twenty (20) days after the delivery of such Inventory
      to
      Licensor. No Sales Royalty shall be payable to Licensor with respect to the
      Inventory purchased by Licensor.

     

    ARTICLE
      16

    

    Sublicensing
      and Distribution

    

    A. The
      performance of Licensee hereunder is of a personal nature. Therefore, neither
      this Agreement nor the License or other rights granted hereunder may be
      assigned, sublicensed or transferred by Licensee, whether to a Subsidiary,
      Affiliate or unrelated third-party except by prior written approval of Licensor,
      which approval will not be unreasonably withheld. However, any assignment of
      this Agreement or the rights granted hereunder must be to an entity with equal
      or superior financial strength to Licensee,
      unless
      Licensor agrees otherwise.
      

    

    B. Notwithstanding
      anything contained to the contrary in this Agreement, this Agreement shall
      not
      terminate if Licensee is merged or otherwise consolidated into another entity
      which is the surviving entity of equal or superior financial strength.

    

    C. Licensee
      shall be entitled to use distributors in connection with its sale of Licensed
      Products under this Agreement without approval of Licensor. No such distributor,
      however, shall be entitled to exercise any of Licensee's rights hereunder except
      for the manufacture and sale of Licensed Products which have been approved
      by
      Licensor hereunder.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      ARTICLE
        17

    

     

    Miscellaneous

    

    A. Representations.
      The
      parties respectively represent and warrant that they have full right, power
      and
      authority to enter into this Agreement and perform all of their obligations
      hereunder and that they are under no legal impediment which would prevent their
      signing this Agreement or consummating the same. Licensor represents and
      warrants that it has the right to license the Licensed Mark and that Licensor
      has not granted any other existing license to use the Licensed Mark on products
      covered hereunder in the Territory and that no such license will be granted
      during the Term of this Agreement except in accordance with the provisions
      hereof. 

    

    B.
       Licensor's
      Rights.
      Not
      withstanding anything to the contrary contained in this Agreement, Licensor
      shall not have the right to negotiate or enter into agreements with third
      parties pursuant to which it may grant a license to use the Licensed Marks
      in
      connection with the manufacture, distribution and/or sale of products covered
      hereunder in the Territory or provide consultation and design services with
      respect to such products in the Territory prior to the termination or expiration
      of this Agreement. 

    

    C. Governing
      Law; Entire Agreement.
      This
      Agreement shall be construed and interpreted in accordance with the laws of
      the
      State of the
      defendant, either California
      or
      Florida,
      applicable to agreements made and to be performed in said State, contains the
      entire understanding and agreement between the parties hereto with respect
      to
      the subject matter hereof, supersedes all prior oral or written understandings
      and agreements relating thereto and may not be modified, discharged or
      terminated, nor may any of the provisions hereof be waived, orally. Any
      legal
      action must be brought in the State of the defendant, either California for
      Licensor or Florida for Licensee.

    

    D. No
      Agency.
      Nothing
      herein contained shall be construed to constitute the parties hereto as partners
      or as joint venturers, or either as agent of the other, and Licensee shall
      have
      no power to obligate or bind Licensor in any manner whatsoever.

    

    E. No
      Waiver.
      No
      waiver by either party, whether express or implied, of any provision of this
      Agreement, or of any breach or default thereof, shall constitute a continuing
      waiver of such provision or of any other provision of this Agreement. Acceptance
      of payments by Licensor shall not be deemed a waiver by Licensor of any
      violation of or default under any of the provisions of this Agreement by
      Licensee. 

    

    F. Void
      Provisions.
      If any
      provision or any portion of any provision of this Agreement shall be held to
      be
      void or unenforceable, the remaining provisions of this Agreement and the
      remaining portion of any provision held void or unenforceable in part shall
      continue in full force and effect. 

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    G. Construction.
      This
      Agreement shall be construed without regard to any presumption or other rule
      requiring construction against the party causing this Agreement to be drafted.
      If any words or phrases in this Agreement shall have been stricken out or
      otherwise eliminated, whether or not any other words or phrases have been added,
      this Agreement shall be construed as if those words or phrases were never
      included in this Agreement, and no implication or inference shall be drawn
      from
      the fact that the words or phrases were so stricken out or otherwise eliminated.
      

    

    H. Force
      Majeure.
      Neither
      party hereto shall be liable to the other for delay in any performance or for
      the failure to render any performance under the Agreement (other than payment
      to
      any accrued obligation for the payment of money) when such delay or failure
      is
      by reason of lockouts, strikes, riots, fires, explosions, blockade, civil
      commotion, epidemic, insurrection, war or warlike conditions, the elements,
      embargoes, act of God or the public enemy, compliance with any law, regulation
      or other governmental order, whether or not valid, or other similar causes
      beyond the control of the party effected. The party claiming to be so affected
      shall give notice to the other party promptly after it learns of the occurrence
      of said event and of the adverse results thereof. Such notice shall set forth
      the nature and extent of the event. The delay or failure shall not be excused
      unless such notice is so given. Notwithstanding any other provision of this
      Agreement, either party may terminate this Agreement if the other party is
      unable to perform any or all of its obligations hereunder for a period of six
      (6) months by reason of said event as if the date of termination were the date
      set forth herein as the expiration date hereof. If either party elects to
      terminate this Agreement under this paragraph, Licensee shall have no further
      obligations for the Guaranteed Minimum Royalties beyond the date of termination
      (which shall be prorated if less than an Annual Period is involved) and shall
      be
      obligated to pay any Sales Royalty which is then due or becomes due.

    

    I. Binding
      Effect.
      This
      Agreement shall inure to the benefit of and shall be binding upon the parties,
      their respective successors, Licensor's transferees and assigns and Licensee's
      permitted transferees and assigns. 

    

    J. Resolution
      of Disputes.
      Any
      controversy or claim arising out of, in connection with, or relating to this
      Agreement, shall be determined by arbitration by a three person arbitration
      panel at the office of the American Arbitration Association. Both Parties shall
      share equally the cost of such arbitration (except each shall bear its own
      attorney's fees). Any decision rendered by the arbitrators shall be final and
      binding, and judgment may be entered in any court having jurisdiction.

    

    K. Consolidation.
      Notwithstanding anything contained to the contrary in this Agreement (i) this
      Agreement shall not terminate if Licensor is merged or otherwise consolidated
      into another entity which is the surviving entity; and, (ii) Licensor shall
      be
      entitled to assign this Agreement to any Corporation to which the Trademark
      is
      assigned. 

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    L. Survival.
      The
      provisions of Licensed Products in Sections 11, 12A, 12D, 13, 15, 16, and 17
      shall survive any expiration or termination of this Agreement. 

    

    M. Paragraph
      Headings.
      The
      paragraph headings in this Agreement are for convenience of reference only
      and
      shall be given no substantive effect.

     

    ARTICLE
      18

     

    Notices

    

    Any
      notice or other communications required or permitted by this Agreement to be
      given to a party will be in writing and will be considered to be duly given
      when
      sent by any recognized overnight courier service to the party concerned to
      the
      following persons at their stated addresses (or to such other persons or
      addresses as a party may specify by notice to the other):

     

    
      	 To Licensor:	 	
              Richard & Kathy Hilton

              250 North Canon Dr. 2nd Floor,

              Beverly Hills, CA 90210

              Hilt4321@aol.com 

            
	 	 	 
	 With a copy to:	 	
              Robert L. Tucker, Esq., 

              Tucker & Latifi, LLP

              160 East 84th Street, New York, NY 10028 
                 Tel:
                  212-472-6262; Fax: 212-744-6509.

                 RTucker@TuckerLatifi.com

              

            
	 	 	 
	 and:	 	
              GLMAC

              2875
                NE 191st
                Street 

              Suite
                501

              Aventura,
                Fl. 33180

              Attn:
                Mr. Lucien Lallouz

              lallouz@glmac.com
                

            
	 	 	 
	 To Licensee:	 	OmniReliant
              Corp.
              4902
                Eisenhower Blvd., 

              Suite
                185 

              Tampa,
                Florida 33634 

            

    

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	 With a copy to: 	 	
              Steven
                Holtzman, Esq. 

              Ruden
                McClosky 

              401
                E. Jackson Street

              Suite
                2700 

              Tampa,
                Florida 33602

              Tel:
                813-222-6616 Fax: 813-314-6916

              Steve.Holzman@ruden.com
                

            

    

      

    Notice
      of
      the change of any such address shall be duly given by either party
      to
      the other in the manner herein provided.

    

    EXECUTED
      on the
      day and year first written above:

     

    
      	 	 	 
	 	OMNIRELIANT
              CORP.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Chris
              D. Phillips, President

    
      	 	 	 
	 	KRH
              LICENSING COMPANY, LLC
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Richard
              Hilton, President

    

     

    Ms.
      Kathy
      Hilton warrants and represents that should there be a successor entity to the
      rights to the KATHY HILTON trademark, such successor shall assume the
      obligations and succeed to the rights of the Licensor and the rights of Licensee
      shall continue unaffected.

    

    ACKNOWLEDGE
      and APPROVED:

     

     

      
        

      

    

    Kathy
      Hilton

    

    Dated:
      October ___, 2006

    

    
      
        
        

      

      
        21FIRST
      AMENDMENT TO 

    KATHY
      HILTON LICENSE AGREEMENT

    

    This
      First Amendment
      (this
      “Amendment”)
      to Kathy
      Hilton License Agreement (the “Agreement”)
      dated
      October 13, 2006, by and between KRH Licensing Company, LLC, a California
      limited liability company (“Licensor”)
      and
      OmniReliant Corp., a Florida corporation (“Licensee”)
      is
      made and effective on this 20th
      day of
      November, 2006.

     

    WITNESSETH:

    

    WHEREAS,
      the
      Agreement became effective on October 13, 2006, and continues in effect;
      and

    

    WHEREAS,
      Licensor and Licensee desire to change the date of the payment of the Guaranteed
      Minimum Royalty for the first Annual Period from thirty (30) days following
      the
      Effective Date to January 3, 2007.

    

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual covenants and conditions contained
      herein, the Licensor and Licensee, each intending to be legally bound, hereby
      agree as follows:

    

    1. Incorporation;
      Defined Terms.
      The
      foregoing recitals are true and correct and are hereby incorporated herein
      and
      made a part hereof. All defined (capitalized) terms used, but not defined,
      herein shall have the meaning ascribed to such terms in the
      Agreement.

    

    2. Amendment.
       The
      last
      paragraph of Article 8, Section A is hereby amended in its entirety to read
      as
      follows:

    

    The
      Guaranteed Minimum Royalty payable for each Annual Period shall be paid to
      Licensor semi-annually in advance on the first day of the month of each half
      year starting with the payment of the Guaranteed Minimum Royalty for the
      2nd
      Annual
      Period, such that each half of the Guaranteed Minimum Royalty Payments shall
      be
      paid on January 1st
      and July
      1st
      of each
      Annual Period. Notwithstanding the foregoing, the Guaranteed Minimum Royalty
      for
      the first Annual Period shall be paid
      on
      January 3, 2007.
      In the
      event that such payment is not timely made, Licensor shall have the right to
      cancel this Agreement, making it void ab
      initio,
      upon
      5-days written notice to cure.

    

    3. Governing
      Law.
      This
      Amendment shall be governed by the laws of the State of Florida.

    

    4. Effect
      of Amendment.
      The
      terms and conditions of the Agreement shall continue in full force and effect,
      except as otherwise expressly amended by this Amendment. This amendment shall
      be
      without prejudice to any rights and liabilities arising under the Agreement
      by
      reference to acts, omissions and events occurring prior to such Amendment coming
      into effect. To the extent that any provision of the Agreement is inconsistent
      with the provisions of this Amendment, the provisions of this Amendment shall
      be
      controlling. 

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    5. Counterparts.
      This
      Amendment may be executed in one or more counterparts, each of which shall
      be an
      original and all of which when taken together shall constitute one and the
      same
      instrument. The parties agree that this Amendment may be executed by facsimile
      means, and a facsimile of a party’s signature shall be deemed an
      original.

    

    EXECUTED
      on the
      day and year first written above:

     

    
      	 	 	 
	 	OMNIRELIANT
              CORP.
	 
 	 
 	 
 
	
            	By:  	/s/
              Chris D. Phillips 
	 	
              
Chris
              D. Phillips, President
	 	 

    

    

      	 	 	 
	 	KRH
              LICENSING COMPANY, LLC
	 
 	 
 	 
 
	
            	By:  	/s/
              Richard Hilton 
	 	
              
Richard
              Hilton, President

    

     

    ACKNOWLEDGED
      and APPROVED:

    

    

    /s/
      Kathy
      Hilton

    
      
        

      

    

    Kathy
      Hilton

    

    Dated:
      November 20, 2006

    

    
      
        
        

      

      
        2

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