Document:

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

    

    COMMON
      STOCK PURCHASE WARRANT

    

    SMART
      ENERGY SOLUTIONS, INC.

     

    
      	Warrant Shares: _______	
              Initial
                Exercise Date: ______ __,
                2008

            

    

     

     

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

     

    Section
      1.    Definitions.
      Capitalized terms used and not otherwise defined herein shall have the meanings
      set forth in that certain Securities Purchase Agreement (the “Purchase
      Agreement”),
      dated
      April __, 2008, among the Company and the purchasers signatory
      thereto.

     

    Section
      2.    Exercise.

     

    a)    Exercise
      of Warrant.
      Exercise of the purchase rights represented by this Warrant may be made, in
      whole or in part, at any time or times on or after the Initial Exercise Date
      and
      on or before the Termination Date by delivery to the Company of a duly executed
      facsimile copy of the Notice of Exercise Form annexed hereto and payment of
      the
      aggregate Exercise Price of the shares thereby purchased by wire transfer or
      cashier’s check drawn on a United States bank. Notwithstanding anything herein
      to the contrary, the Holder shall not be required to physically surrender this
      Warrant to the Company until the Holder has purchased all of the Warrant Shares
      available hereunder and the Warrant has been exercised in full, in which case,
      the Holder shall surrender this Warrant to the Company for cancellation along
      with delivery to the Company of the final Notice of Exercise. Partial exercises
      of this Warrant resulting in purchases of a portion of the total number of
      Warrant Shares available hereunder shall have the effect of lowering the
      outstanding number of Warrant Shares purchasable hereunder in an amount equal
      to
      the applicable number of Warrant Shares purchased. The Holder and the Company
      shall maintain records showing the number of Warrant Shares purchased and the
      date of such purchases. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    b)    Exercise
      Price.
      The
      exercise price per share of the Common Stock under this Warrant shall be $0.__,
      subject to adjustment hereunder (the “Exercise
      Price”).

     

    c)    Mechanics
      of Exercise.
      

     

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

     

    ii.    Delivery
      of Certificates Upon Exercise.
      Certificates for shares purchased hereunder shall be transmitted by the transfer
      agent of the Company to the Holder by crediting the account of the Holder’s
      prime broker with the Depository Trust Company through its Deposit Withdrawal
      Agent Commission (“DWAC”)
      system
      if the Company is a participant in such system, and otherwise by physical
      delivery to the address specified by the Holder in the Notice of Exercise Form,
      surrender of this Warrant (if required) and payment of the aggregate Exercise
      Price as set forth above (“Warrant
      Share Delivery Date”).
      This
      Warrant shall be deemed to have been exercised and the Warrant Shares shall
      be
      deemed to have been issued on the date all of the foregoing are accepted by
      the
      Company.

     

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

     

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

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

    Section
      3.    Certain Adjustments.

     

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

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    b)    Fundamental
      Transaction.
      If
      after the date hereof, the Company (or any other entity, the stock or other
      securities of which are at the time receivable on the exercise of the Warrants),
      consolidates with or merges into another entity or conveys all or substantially
      all of its assets to another entity, then, in each such case, Warrantholder,
      upon any permitted exercise of a Warrant, at any time after the consummation
      of
      such reorganization, consolidation, merger or conveyance, shall be entitled
      to
      receive, in lieu
      of
      the stock or other securities and property receivable upon the exercise of
      the
      Warrant prior to such consummation, the stock or other securities or property
      to
      which such Warrantholder would have been entitled upon the consummation of
      such
      reorganization, consolidation, merger or conveyance if such Warrantholder had
      exercised the Warrant immediately prior thereto, all subject to further
      adjustment as provided in this Section 3. The successor or purchasing entity
      in
      any such reorganization, consolidation, merger or conveyance (if other than
      the
      Company) shall duly execute and deliver to Warrantholder a written
      acknowledgment of such entity’s obligations under the Warrants and this
      Agreement.

     

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

     

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

     

    e)    Notice
      to Holder.
      

     

    i.    Adjustment
      to Exercise Price.
      Whenever the Exercise Price is adjusted pursuant to any provision of this
      Section 3, the Company shall promptly mail to the Holder a notice setting forth
      the Exercise Price after such adjustment and setting forth a brief statement
      of
      the facts requiring such adjustment. 

     

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

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    Section
      4.    Transfer
      of Warrant.

     

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

     

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

     

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

     

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

     

    Section
      5.    Miscellaneous.

     

    a)    No
      Rights as Shareholder Until Exercise.
      This
      Warrant does not entitle the Holder to any voting rights or other rights as
      a
      shareholder of the Company prior to the exercise hereof. 

     

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

     

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

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    d)    Authorized
      Shares.
      

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

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

     

    

     

    
      	 	
              SMART
                ENERGY SOLUTIONS, INC. 

               

            
	 	
              By:  __________________________________________

              Name:

              Title:

            

    

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    NOTICE
      OF EXERCISE

    

    TO:    SMART
      ENERGY SOLUTIONS, INC.

    

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

     

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

     

    [
      ] in
      lawful money of the United States; or

     

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

     

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

     

    _______________________________

    

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

    

    _______________________________

     

    _______________________________

     

    _______________________________

    

    (4)
      The
      undersigned agrees and acknowledges that all the representations and warranties
      made by the undersigned to the Company in the Purchase Agreement, including
      without limitation, that the undersigned is an “accredited investor” as defined
      in Regulation D promulgated under the Securities Act of 1933, as amended, are
      hereby true, complete and accurate as of the date hereof.

    

    [SIGNATURE
      OF HOLDER]

     

    Name
      of
      Investing Entity:
      ________________________________________________________________________

    Signature
      of Authorized Signatory of Investing Entity:
      _________________________________________________

    Name
      of
      Authorized Signatory:
      ___________________________________________________________________

    Title
      of
      Authorized Signatory:
      ____________________________________________________________________

    Date:
      ________________________________________________________________________________________

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ASSIGNMENT
      FORM

    

    (To
      assign the foregoing warrant, execute

    this
      form
      and supply required information. 

    Do
      not
      use this form to exercise the warrant.)

    

    

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

     

    

    _______________________________________________
      whose address is

    

    _______________________________________________________________.

    

    

    _______________________________________________________________

    

    Dated:
      ______________, _______

    

    

    Holder’s
      Signature: _____________________________

    

    Holder’s
      Address:  _____________________________

     

                                                                                     
      _____________________________

    

    

    Signature
      Guaranteed: ___________________________________________

    

    

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust company. Officers of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing
      Warrant.THIS
      NOTE
      AND THE SECURITIES ISSUABLE UPON ITS CONVERSION HAVE NOT BEEN REGISTERED UNDER
      THE SECURITIES ACT OF 1933 AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED UNLESS
      SO REGISTERED OR AN EXEMPTION FROM REGISTRATION UNDER SAID ACT IS
      AVAILABLE.

     

    No.
      __

     

    SMART
      ENERGY SOLUTIONS, INC.

    

    5%
      Convertible Promissory Note Due May 30, 2008

     

    
      
        	U.S. $500,000	
                April
                  __,
                  2008

              

      

    

     

    Smart
      Energy Solutions, Inc., a Nevada corporation (the “Company” or the “Maker”), for
      value received, hereby promises to pay to _______, or registered assigns, the
      principal sum of five-hundred thousand U.S. dollars ($500,000) plus all accrued
      but unpaid interest on May 30, 2008 (the “Maturity Date”). Interest shall be
      computed on the basis of a 365-day year from the date hereof on the unpaid
      balance of such principal amount from time to time outstanding at the rate
      of
      five percent (5%) per annum, such interest to be due and payable in full on
      the
      Maturity Date.

     

    This
      Note
      shall become immediately due and payable without notice or demand upon the
      occurrence at any time of any of the following events of default (individually,
      an “Event of Default” and collectively, “Events of Default”):

     

    
      	 	
              1.

            	
              default
                in the payment or performance of this or any other liability or obligation
                of the Maker to the holder, including the payment when due of any
                principal, premium or interest under this
                Note;

            

    

     

    
      	 	
              2.

            	
              the
                liquidation, termination of existence, dissolution, insolvency or
                business
                failure of the Maker, or the appointment of a receiver or custodian
                for
                the Maker or any part of its property if such appointment is not
                terminated or dismissed within sixty (60) days;
                or

            

    

     

    
      	 	
              3.

            	
              the
                institution by or against the Maker or any indorser or guarantor
                of this
                Note of any proceedings under the United States Bankruptcy Code or
                any
                other federal or state bankruptcy, reorganization, receivership,
                insolvency or other similar law affecting the rights of creditors
                generally or the making by the Maker or any indorser or guarantor
                of this
                Note of a composition or an assignment or trust mortgage for the
                benefit
                of creditors.

            

    

     

    Upon
      the
      occurrence of an Event of Default, the holder shall have then, or at any time
      thereafter, all of the rights and remedies afforded by the Uniform Commercial
      Code as from time to time in effect in the State of New Jersey or afforded
      by
      other applicable law.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Every
      amount overdue under this Note shall bear interest from and after the date
      on
      which such amount first became overdue at an annual rate which is five (5)
      percentage points above the rate per year specified in the first paragraph
      of
      this Note. Such interest on overdue amounts under this Note shall be payable
      on
      demand and shall accrue and be compounded monthly until the obligation of the
      Maker with respect to the payment of such interest has been discharged (whether
      before or after judgment).

     

    In
      no
      event shall any interest charged, collected or reserved under this Note exceed
      the maximum rate then permitted by applicable law and if any such payment is
      paid by the Maker, then such excess sum shall be credited by the holder as
      a
      payment of principal.

     

    All
      payments by the Maker under this Note shall be made without set-off or
      counterclaim and be free and clear and without any deduction or withholding
      for
      any taxes or fees of any nature whatever, unless the obligation to make such
      deduction or withholding is imposed by law. The Maker shall pay and save the
      holder harmless from all liabilities with respect to or resulting from any
      delay
      or omission to make any such deduction or withholding required by
      law.

     

    Whenever
      any amount is paid under this Note, all or part of the amount paid may be
      applied to principal, premium or interest in such order and manner as shall
      be
      determined by the holder in its discretion.

     

    No
      reference in this Note to any guaranty or other document shall impair the
      obligation of the Maker, which is absolute and unconditional, to pay all amounts
      under this Note strictly in accordance with the terms of this Note.

     

    The
      Maker
      agrees to pay on demand all costs of collection, including reasonable attorneys’
fees, incurred by the holder in enforcing the obligations of the Maker under
      this Note.

     

    No
      delay
      or omission on the part of the holder in exercising any right under this Note
      shall operate as a waiver of such right or of any other right of such holder,
      nor shall any delay, omission or waiver on any one occasion be deemed a bar
      to
      or waiver of the same or any other right on any future occasion. The Maker
      and
      every indorser or guarantor of this Note regardless of the time, order or place
      of signing waives presentment, demand, protest and notices of every kind and
      assents to any extension or postponement of the time of payment or any other
      indulgence, to any substitution, exchange or release of collateral, and to
      the
      addition or release of any other party or person primarily or secondarily
      liable.

     

    1.    Conversion.
      Upon
      the earlier of (i) May 30, 2008, and (ii) the consummation of the Company’s
      offering (the “Offering”) pursuant to the Placement Agent Agreement, dated April
      4, 2008, between the Company and EKN Financial Services, Inc., the outstanding
      principal and all accrued and unpaid interest under this Note shall be converted
      into fully-paid and non-assessable shares of the Company’s common stock, $0.001
      par value (the “Common Stock”), and Common Stock purchase warrants, each
      entitling the holder to purchase one share of Common Stock at an exercise price
      equal to the purchase price of the Common Stock sold in the Offering at any
      time
      on or before the fifth anniversary of the date of this Note. The number of
      shares of Common Stock that shall be issued upon conversion of this Note shall
      be calculated by dividing the amount of outstanding principal and all accrued
      and unpaid interest by the Conversion Price (defined below). The number of
      Warrants that shall be issued upon conversion of this Note shall be equal to
      one-quarter of the number of shares of Common Stock issued in connection
      therewith. The Conversion Price shall mean 60% of the average closing price
      of
      the Common Stock as quoted on the Over-the-Counter Bulletin Board or such other
      exchange where the Common Stock is quoted or listed for the fifteen consecutive
      trading days ending the day prior to the first closing of the Offering. On
      or
      before the date of conversion, the holder shall provide notice to the Maker
      regarding the name or names (with address and Social Security number or federal
      tax identification number) in which the certificates evidencing the securities
      issued upon conversion of this Note shall be registered. Notwithstanding the
      foregoing or anything to the contrary, upon the occurrence of an Event of
      Default (unless waived by the holder), the Conversion Price shall mean 60%
      of
      the average of the last bid and ask price of the Common Stock as quoted on
      the
      Over-the-Counter Bulletin Board or such other exchange where the Common Stock
      is
      quoted or listed for the five trading days ending the day prior to the
      occurrence of the Event of Default. 

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    2.    Surrender
      of Note and Delivery of Certificates.
      When
      surrendered for conversion this Note shall, unless the shares issuable upon
      conversion are to be issued in the same name as the name in which this Note
      is
      then registered, be duly indorsed by, or accompanied by instruments of transfer
      in form satisfactory to the Company duly executed by the holder or his or its
      duly authorized attorney. As promptly as practicable after the surrender of
      this
      Note for conversion, the Company shall deliver or cause to be delivered at
      its
      principal executive office to the holder, or on the holder’s written order, a
      certificate or certificates for the number of full shares of Common Stock and
      Common Stock purchase warrants issuable upon the conversion of this Note, in
      accordance with the provisions hereof. 

     

    3.    Adjustment
      of Conversion Price.

     

    (i)    In
      case
      the Company shall:

     

    (A)    declare
      a
      dividend of Common Stock on its Common Stock,

     

    (B)    subdivide
      outstanding Common Stock into a larger number of shares of Common Stock by
      reclassification, stock split or otherwise, or

     

    (C)    combine
      outstanding Common Stock into a smaller number of shares of Common Stock by
      reclassification or otherwise, 

     

    then
      the
      number of shares of Common Stock issuable upon conversion of this Note
      immediately prior to any such event shall be adjusted proportionately so that
      thereafter the holder of this Note shall be entitled to receive upon conversion
      of this Note the number of shares of Common Stock which such holder would have
      owned after the happening of any of the events described above had this Note
      been converted immediately prior to the happening of such event, provided that
      the Conversion Price shall in no event be reduced to less than the par value
      of
      the shares issuable upon conversion. Such adjustment shall become effective
      immediately after the record date in the case of a dividend and shall become
      effective immediately after the effective date in the case of a subdivision
      or
      combination.

     

    (ii)    If,
      prior
      to the Maturity Date, the Company shall at any time consolidate or merge with
      another corporation (other than a merger or consolidation in which the Company
      is the surviving corporation), the registered holder hereof will thereafter
      be
      entitled to receive, upon the conversion hereof, the securities or property
      to
      which a holder of the number of shares of Common Stock then deliverable upon
      the
      conversion hereof would have been entitled upon such consolidation or merger,
      and the Company shall take such steps in connection with such consolidation
      or
      merger as may be necessary to ensure that the provisions hereof shall thereafter
      be applicable, as nearly as reasonably may be, in relation to any securities
      or
      property thereafter deliverable upon the conversion of this Note.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    4.    Statement
      of Adjustment.
      Whenever the Conversion Price shall be adjusted as provided herein, the Company
      shall provide the holder with a statement, signed by the Chairman of the Board,
      the President, any Vice President, the Chief Financial Officer or Secretary
      of
      the Company, showing in reasonable detail the facts requiring such adjustment
      and the Conversion Price that will be effective after such adjustment. The
      Company shall also cause a notice setting forth any such adjustment to be sent
      by mail, first class, postage prepaid, to the record holder of the Note at
      his
      or its last known address appearing on the records of the Maker. 

     

    5.    Fractional
      Shares.
      No
      fractional shares of Common Stock shall be issuable upon conversion of this
      Note, but a payment in cash will be made in respect of any fraction of a share
      which would otherwise be issuable upon the surrender of this Note, or portion
      hereof, for conversion. Such payment shall be based on the Conversion
      Price.

     

    6.    Accrued
      Interest.
      Upon
      the conversion of this Note, the Company shall not be required to pay any
      accrued but unpaid interest on the amount so converted up to the date of
      conversion.

     

    7.    Securities
      Act of 1933.
      Upon
      conversion of this Note, the registered holder may be required to execute and
      deliver to the Company an instrument, in form satisfactory to the Company,
      representing that the shares issuable upon conversion hereof are being acquired
      for investment and not with a view to distribution within the meaning of the
      Securities Act of 1933, as amended.

     

    8.    Prepayment.
      The
      principal indebtedness and any accrued interest thereon represented by this
      Note
      may be prepaid in whole or in part to the holder of this Note.

     

    9.    Successors
      and Assigns.
      This
      Note, and the obligations and rights of the Company hereunder, shall be binding
      upon and inure to the benefit of the Company, the holder of this Note, and
      their
      respective heirs, successors and assigns.

     

    10.    Recourse.
      Recourse under this Note shall be to the general unsecured assets of the Company
      only and in no event to the officers, directors or stockholders of the
      Company.

     

    11.    Changes.
      Changes
      in or additions to this Note may be made or compliance with any term, covenant,
      agreement, condition or provision set forth herein may be omitted or waived
      (either generally or in a particular instance and either retroactively or
      prospectively), upon written consent of the Company and the holder.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    12.    Currency.
      All
      payments shall be made in such coin or currency of the United States of America
      as at the time of payment shall be legal tender therein for the payment of
      public and private debts.

     

    13.    Notices.
      All
      notices, requests, consents and demands shall be made in writing and shall
      be
      mailed postage prepaid, or delivered by hand, to the Company or to the holder
      hereof at their respective addresses set forth below or to such other address
      as
      may be furnished in writing to the other party hereto:

     

    If
      to the
      holder:

     

    _________________________

    _________________________

    _________________________

    

    If
      to the
      Company:

    

    Smart
      Energy Solutions Inc.

    210
      West
      Parkway, #7

    Pompton
      Plains, NJ 07444

    Attn.
      Chief
      Financial Officer

     

    with
      a
      copy to:

    

    David
      Lubin & Associates, PLLC

    26
      East
      Hawthorne Avenue

    Valley
      Stream, NY 11580-6302

    Attn.
      David
      Lubin, Esq.

     

    14.    Saturdays,
      Sundays, Holidays.
      If any
      date that may at any time be specified in this Note as a date for the making
      of
      any payment of principal or interest under this Note shall fall on Saturday,
      Sunday or on a day which in the State of New Jersey shall be a legal holiday,
      then the date for the making of that payment shall be the next subsequent day
      which is not a Saturday, Sunday or legal holiday.

     

    15.    Governing
      Law.
      This
      Note shall be construed and enforced in accordance with, and the rights of
      the
      parties shall be governed by, the laws of the State of New Jersey.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, this Note has been executed and delivered as a sealed
      instrument on the date first above written by the duly authorized representative
      of the Company.

     

    
      	 	
              SMART
                ENERGY SOLUTIONS, INC.

              

               

              By:
                _________________________________

              Name:
                Pete Mateja

              Title:
                Chief
                Executive Officer

            

    

     

    
      
         

      

      
        -6-

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