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                          REGISTRATION RIGHTS AGREEMENT

         This  Registration  Rights  Agreement  (this  "Agreement")  is made and
entered  into  as of  June  8,  2006,  by  and  between  Reliant  Home  Warranty
Corporation, a Florida corporation (the "Company"), and Laurus Master Fund, Ltd.
(the "Purchaser").

         This Agreement is made pursuant to the Security Agreement,  dated as of
the  date  hereof,  by  and  among  the  Purchaser,   the  Company  and  various
subsidiaries of the Company (as amended,  modified or supplemented  from time to
time,  the  "Security  Agreement"),  and  pursuant to the  Warrants  referred to
therein.

         The Company and the Purchaser hereby agree as follows:

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

         "Commission" means the Securities and Exchange Commission.

         "Common  Stock" means shares of the Company's  common stock,  par value
         $0.001 per share.

         "Effectiveness  Date"  means,  (i)  with  respect  to the  Registration
         Statement  required to be filed in connection  with the Warrants issued
         on the date hereof,  a date no later than one hundred eighty (180) days
         following   such  date  and  (ii)  with  respect  to  each   additional
         Registration  Statement required to be filed hereunder (if any), a date
         no later than thirty (30) days following the applicable Filing Date.

         "Effectiveness Period" has the meaning set forth in Section 2(a).

         "Exchange Act" means the  Securities  Exchange Act of 1934, as amended,
         and any successor statute.

         "Filing  Date" means,  with respect to (1) the  Registration  Statement
         required  to be filed in  connection  with the  shares of Common  Stock
         issuable  to the Holder upon  exercise of a Warrant,  the date which is
         sixty  (60)  days  after  the  issuance  of such  Warrant,  and (2) the
         Registration  Statement  required  to be filed in  connection  with the
         shares  of  Common  Stock  issuable  to  the  Holder  as  a  result  of
         adjustments  to the  Exercise  Price made  pursuant to Section 4 of the
         Warrant or  otherwise,  thirty (30) days after the  occurrence  of such
         event or the date of the adjustment of the Exercise Price.

         "Holder" or "Holders"  means the Purchaser or any of its  affiliates or
         transferees  to the  extent  any of them hold  Registrable  Securities,
         other  then  those  purchasing   Registrable  Securities  in  a  market
         transaction.

         "Indemnified Party" has the meaning set forth in Section 5(c).

         "Indemnifying Party" has the meaning set forth in Section 5(c).

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         "Proceeding" means an action, claim, suit,  investigation or proceeding
         (including, without limitation, an investigation or partial proceeding,
         such as a deposition), whether commenced or threatened.

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

         "Registrable Securities" means the shares of Common Stock issuable upon
         exercise of the Warrants.

         "Registration  Statement" means each registration statement required to
         be filed hereunder,  including the Prospectus  therein,  amendments and
         supplements to such  registration  statement or  Prospectus,  including
         pre- and  post-effective  amendments,  all  exhibits  thereto,  and all
         material  incorporated  by  reference or deemed to be  incorporated  by
         reference in such registration statement.

         "Rule 144" means Rule 144 promulgated by the Commission pursuant to the
         Securities  Act, as such Rule may be amended from time to time,  or any
         similar rule or regulation  hereafter  adopted by the Commission having
         substantially the same effect as such Rule.

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

         "Securities Act" means the Securities Act of 1933, as amended,  and any
         successor statute.

         "Security Agreement" has the meaning given to such term in the Preamble
         hereto.

         "Trading Market" means any of the NASD Over The Counter Bulletin Board,
         NASDAQ Capital Market,  the NASDAQ National Market,  the American Stock
         Exchange or the New York Stock Exchange

         "Warrants"   means  the  Common  Stock  purchase   warrants  issued  in
         connection with the Security Agreement,  whether on the date thereof or
         thereafter.

2.       Registration.

         (a)  On or prior to each Filing  Date,  the Company  shall  prepare and
              file with the  Commission a  Registration  Statement  covering the
              Registrable  Securities for a selling  stockholder resale offering
              to be made on a  continuous  basis  pursuant  to  Rule  415.  Each
              Registration Statement shall be on Form S-3 (except if the Company
              is not then  eligible  to  register  for  resale  the  Registrable

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              Securities on Form S-3, in which case such  registration  shall be
              on another appropriate form in accordance  herewith).  The Company
              shall cause each  Registration  Statement to become  effective and
              remain  effective as provided  herein.  The Company  shall use its
              best efforts to cause each  Registration  Statement to be declared
              effective  under the  Securities Act as promptly as possible after
              the  filing   thereof,   but  in  any  event  no  later  than  the
              Effectiveness   Date.   The  Company  shall  use  its   reasonable
              commercial   efforts   to   keep   each   Registration   Statement
              continuously  effective  under the  Securities  Act until the date
              which is the earlier date of when (i) all  Registrable  Securities
              covered by such Registration  Statement have been sold or (ii) all
              Registrable  Securities covered by such Registration Statement may
              be sold immediately without  registration under the Securities Act
              and  without  volume  restrictions  pursuant  to Rule  144(k),  as
              determined  by the  counsel to the  Company  pursuant to a written
              opinion  letter to such effect,  addressed  and  acceptable to the
              Company's  transfer  agent  and the  affected  Holders  (each,  an
              "Effectiveness Period").

         (b)  Within three business days of the Effectiveness  Date, the Company
              shall  cause its  counsel  to issue a blanket  opinion in the form
              attached  hereto as Exhibit A, to the transfer  agent stating that
              the shares are subject to an effective  registration statement and
              can be reissued free of  restrictive  legend upon notice of a sale
              by the Purchaser  and  confirmation  by the Purchaser  that it has
              complied with the prospectus delivery requirements,  provided that
              the  Company  has not  advised  the  transfer  agent  orally or in
              writing that the opinion has been withdrawn. Copies of the blanket
              opinion  required by this  Section  2(b) shall be delivered to the
              Purchaser within the time frame set forth above.

3.       Registration Procedures. If and whenever the Company is required by the
         provisions  hereof  to  effect  the  registration  of  any  Registrable
         Securities under the Securities Act, the Company will, as expeditiously
         as possible:

         (a)  prepare and file with the Commission a Registration Statement with
              respect to such  Registrable  Securities,  respond as  promptly as
              possible to any comments received from the Commission, and use its
              best  efforts to cause such  Registration  Statement to become and
              remain  effective  for  the  Effectiveness   Period  with  respect
              thereto,  and  promptly  provide  to the  Purchaser  copies of all
              filings and Commission letters of comment relating thereto;

         (b)  prepare  and  file  with  the  Commission   such   amendments  and
              supplements to such Registration Statement and the Prospectus used
              in  connection  therewith  as may be  necessary to comply with the
              provisions of the Securities  Act with respect to the  disposition
              of  all  Registrable   Securities  covered  by  such  Registration
              Statement and to keep such Registration  Statement effective until
              the  expiration  of the  Effectiveness  Period  applicable to such
              Registration Statement;

         (c)  furnish to the Purchaser such number of copies of the Registration
              Statement and the  Prospectus  included  therein  (including  each
              preliminary Prospectus) as the Purchaser reasonably may request to
              facilitate  the  public  sale or  disposition  of the  Registrable
              Securities covered by such Registration Statement;

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         (d)  use its commercially reasonable efforts to register or qualify the
              Purchaser's  Registrable  Securities  covered by such Registration
              Statement  under  the  securities  or  "blue  sky"  laws  of  such
              jurisdictions  within  the  United  States  as the  Purchaser  may
              reasonably request, provided,  however, that the Company shall not
              for any such purpose be required to qualify  generally to transact
              business as a foreign  corporation in any jurisdiction where it is
              not so  qualified  or to consent to general  service of process in
              any such jurisdiction;

         (e)  list  the  Registrable  Securities  covered  by such  Registration
              Statement with any  securities  exchange on which the Common Stock
              of the Company is then listed;

         (f)  immediately  notify the  Purchaser  at any time when a  Prospectus
              relating  thereto is required to be delivered under the Securities
              Act,  of the  happening  of any  event of which  the  Company  has
              knowledge  as a result of which the  Prospectus  contained in such
              Registration  Statement,  as then in  effect,  includes  an untrue
              statement  of a material  fact or omits to state a  material  fact
              required to be stated  therein or necessary to make the statements
              therein  not  misleading  in  light  of  the  circumstances   then
              existing; and

         (g)  make  available for  inspection by the Purchaser and any attorney,
              accountant or other agent retained by the Purchaser,  all publicly
              available, non-confidential financial and other records, pertinent
              corporate  documents and properties of the Company,  and cause the
              Company's officers, directors and employees to supply all publicly
              available,  non-confidential  information  reasonably requested by
              the attorney, accountant or agent of the Purchaser.

4.       Registration Expenses.

         All expenses relating to the Company's compliance with Sections 2 and 3
hereof,  including,  without  limitation,  all  registration  and  filing  fees,
printing  expenses,  fees and  disbursements  of counsel and independent  public
accountants for the Company,  fees and expenses  (including  reasonable  counsel
fees) incurred in connection with complying with state  securities or "blue sky"
laws, fees of the NASD,  transfer taxes, fees of transfer agents and registrars,
fees of, and reasonable  disbursements  incurred by, one counsel for the Holders
are called "Registration  Expenses".  All selling commissions  applicable to the
sale of  Registrable  Securities,  including any fees and  disbursements  of any
special counsel to the Holders beyond those included in  Registration  Expenses,
are called  "Selling  Expenses." The Company shall only be  responsible  for all
Registration Expenses.

5.       Indemnification.

         (a)  In the event of a registration of any Registrable Securities under
              the  Securities Act pursuant to this  Agreement,  the Company will
              indemnify  and  hold  harmless  each  Holder,  and  its  officers,
              directors and each other person,  if any, who controls such Holder
              within the  meaning of the  Securities  Act,  against  any losses,
              claims,  damages or liabilities,  joint or several,  to which such

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              Holder,  or such persons may become  subject under the  Securities
              Act or  otherwise,  insofar  as such  losses,  claims,  damages or
              liabilities  (or actions in respect  thereof)  arise out of or are
              based upon any untrue statement or alleged untrue statement of any
              material fact contained in any Registration  Statement under which
              such  Registrable  Securities were registered under the Securities
              Act pursuant to this  Agreement,  any  preliminary  Prospectus  or
              final Prospectus contained therein, or any amendment or supplement
              thereof, or arise out of or are based upon the omission or alleged
              omission to state  therein a material  fact  required to be stated
              therein  or   necessary  to  make  the   statements   therein  not
              misleading,  and will reimburse such Holder,  and each such person
              for any  reasonable  legal or other  expenses  incurred by them in
              connection with  investigating or defending any such loss,  claim,
              damage, liability or action;  provided,  however, that the Company
              will not be liable in any such case if and to the extent  that any
              such loss,  claim,  damage or liability  arises out of or is based
              upon an untrue  statement or alleged untrue  statement or omission
              or  alleged  omission  so  made  in  conformity  with  information
              furnished  by or on behalf of the  Purchaser or any such person in
              writing specifically for use in any such document.

         (b)  In the event of a registration of the Registrable Securities under
              the Securities Act pursuant to this Agreement,  the Purchaser will
              indemnify  and  hold  harmless  the  Company,  and  its  officers,
              directors and each other person,  if any, who controls the Company
              within the  meaning of the  Securities  Act,  against  all losses,
              claims,  damages or  liabilities,  joint or several,  to which the
              Company or such persons may become  subject  under the  Securities
              Act or  otherwise,  insofar  as such  losses,  claims,  damages or
              liabilities  (or actions in respect  thereof)  arise out of or are
              based upon any untrue statement or alleged untrue statement of any
              material  fact which was  furnished in writing by the Purchaser to
              the  Company  expressly  for  use  in  (and  such  information  is
              contained  in)  the   Registration   Statement  under  which  such
              Registrable  Securities were  registered  under the Securities Act
              pursuant to this Agreement,  any  preliminary  Prospectus or final
              Prospectus  contained  therein,  or any  amendment  or  supplement
              thereof, or arise out of or are based upon the omission or alleged
              omission to state  therein a material  fact  required to be stated
              therein  or   necessary  to  make  the   statements   therein  not
              misleading,  and will  reimburse  the Company and each such person
              for any  reasonable  legal or other  expenses  incurred by them in
              connection with  investigating or defending any such loss,  claim,
              damage, liability or action, provided, however, that the Purchaser
              will be liable in any such case if and only to the extent that any
              such loss,  claim,  damage or liability  arises out of or is based
              upon an untrue  statement or alleged untrue  statement or omission
              or  alleged  omission  so  made  in  conformity  with  information
              furnished  in  writing  to  the  Company  by or on  behalf  of the
              Purchaser   specifically   for   use   in   any   such   document.
              Notwithstanding  the provisions of this  paragraph,  the Purchaser
              shall not be required to indemnify  any person or entity in excess
              of the  amount  of the  aggregate  net  proceeds  received  by the
              Purchaser in respect of Registrable  Securities in connection with
              any such registration under the Securities Act.

         (c)  Promptly   after   receipt   by  a   party   entitled   to   claim
              indemnification  hereunder (an  "Indemnified  Party") of notice of
              the commencement of any action, such Indemnified Party shall, if a

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              claim for indemnification in respect thereof is to be made against
              a party hereto obligated to indemnify such  Indemnified  Party (an
              "Indemnifying  Party"),  notify the Indemnifying  Party in writing
              thereof,  but the  omission  so to notify the  Indemnifying  Party
              shall not relieve it from any liability  which it may have to such
              Indemnified  Party  other than under this  Section  5(c) and shall
              only  relieve  it from  any  liability  which  it may have to such
              Indemnified Party under this Section 5(c) if and to the extent the
              Indemnifying  Party is  prejudiced by such  omission.  In case any
              such action shall be brought against any Indemnified  Party and it
              shall notify the Indemnifying  Party of the commencement  thereof,
              the Indemnifying Party shall be entitled to participate in and, to
              the extent it shall  wish,  to assume and  undertake  the  defense
              thereof with counsel  satisfactory to such Indemnified Party, and,
              after notice from the Indemnifying Party to such Indemnified Party
              of its election so to assume and  undertake  the defense  thereof,
              the  Indemnifying  Party  shall not be liable to such  Indemnified
              Party under this Section 5(c) for any legal expenses  subsequently
              incurred by such Indemnified  Party in connection with the defense
              thereof;  if the Indemnified  Party retains its own counsel,  then
              the  Indemnified  Party shall pay all fees,  costs and expenses of
              such counsel,  provided,  however,  that, if the defendants in any
              such  action   include   both  the   Indemnified   Party  and  the
              Indemnifying Party and the Indemnified Party shall have reasonably
              concluded  that there may be reasonable  defenses  available to it
              which are different  from or additional to those  available to the
              Indemnifying  Party or if the interests of the  Indemnified  Party
              reasonably  may be deemed to conflict  with the  interests  of the
              Indemnifying  Party, the Indemnified Party shall have the right to
              select one separate  counsel and to assume such legal defenses and
              otherwise to participate  in the defense of such action,  with the
              reasonable  expenses and fees of such  separate  counsel and other
              expenses  related to such  participation  to be  reimbursed by the
              Indemnifying Party as incurred.

         (d)  In order to provide  for just and  equitable  contribution  in the
              event of joint  liability  under the Securities Act in any case in
              which  either  (i) the  Purchaser,  or any  officer,  director  or
              controlling   person   of  the   Purchaser,   makes  a  claim  for
              indemnification  pursuant to this  Section 5 but it is  judicially
              determined  (by the entry of a final judgment or decree by a court
              of competent  jurisdiction and the expiration of time to appeal or
              the denial of the last right of appeal) that such  indemnification
              may not be  enforced  in such case  notwithstanding  the fact that
              this Section 5 provides for  indemnification in such case, or (ii)
              contribution  under the Securities Act may be required on the part
              of the Purchaser or such officer,  director or controlling  person
              of the Purchaser in  circumstances  for which  indemnification  is
              provided  under this Section 5; then,  and in each such case,  the
              Company and the Purchaser will contribute to the aggregate losses,
              claims, damages or liabilities to which they may be subject (after
              contribution from others) in such proportion so that the Purchaser
              is responsible only for the portion  represented by the percentage
              that the public  offering price of its  securities  offered by the
              Registration  Statement  bears to the public offering price of all
              securities  offered  by  such  Registration  Statement,  provided,
              however,  that, in any such case,  (A) the  Purchaser  will not be
              required to contribute any amount in excess of the public offering
              price  of all  such  securities  offered  by it  pursuant  to such

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              Registration  Statement,  and (B) no person  or  entity  guilty of
              fraudulent  misrepresentation (within the meaning of Section 10(f)
              of the Act) will be  entitled to  contribution  from any person or
              entity who was not guilty of such fraudulent misrepresentation.

6.       Representations and Warranties.

         (a)  The Common Stock is registered  pursuant to Section 12(b) or 12(g)
              of the  Exchange Act and,  except with respect to certain  matters
              which the Company has disclosed to the Purchaser on Schedule 12(u)
              to the Security Agreement,  the Company has timely filed all proxy
              statements,   reports,  schedules,  forms,  statements  and  other
              documents  required to be filed by it under the Exchange  Act. The
              Company  has filed (i) its  Annual  Report on Form  10-KSB for the
              fiscal year ended December 31, 2005 and (ii) its Quarterly  Report
              on Form  10-QSB  for its  fiscal  quarter  ended  March  31,  2006
              (collectively,  the "SEC  Reports").  Each SEC Report  was, at the
              time  of  its  filing,   in   substantial   compliance   with  the
              requirements  of its respective  form and none of the SEC Reports,
              nor the financial  statements (and the notes thereto)  included in
              the SEC Reports,  as of their respective  filing dates,  contained
              any  untrue  statement  of a  material  fact or omitted to state a
              material fact  required to be stated  therein or necessary to make
              the statements  therein, in light of the circumstances under which
              they were made, not  misleading.  The financial  statements of the
              Company  included  in the  SEC  Reports  comply  as to form in all
              material respects with applicable accounting  requirements and the
              published  rules  and  regulations  of  the  Commission  or  other
              applicable  rules  and  regulations  with  respect  thereto.  Such
              financial   statements  have  been  prepared  in  accordance  with
              generally  accepted  accounting  principles  ("GAAP") applied on a
              consistent basis during the periods involved (except (i) as may be
              otherwise  indicated  in such  financial  statements  or the notes
              thereto or (ii) in the case of unaudited  interim  statements,  to
              the extent they may not include footnotes or may be condensed) and
              fairly present in all material  respects the financial  condition,
              the  results of  operations  and the cash flows of the Company and
              its  subsidiaries,  on a consolidated  basis,  as of, and for, the
              periods presented in each such SEC Report.

         (b)  The  Common  Stock is listed for  trading  on the  NASDAQ  Capital
              Market and satisfies all requirements for the continuation of such
              listing,  and the Company  shall do all things  necessary  for the
              continuation  of such  listing.  The Company has not  received any
              notice  that its  Common  Stock will be  delisted  from the NASDAQ
              Capital  Market  (except for prior  notices  which have been fully
              remedied) or that the Common Stock does not meet all  requirements
              for the continuation of such listing

         (c)  Neither the  Company,  nor any of its  affiliates,  nor any person
              acting on its or their behalf, has directly or indirectly made any
              offers or sales of any security or solicited any offers to buy any
              security under  circumstances that would cause the offering of the
              Securities  pursuant to the Security  Agreement  to be  integrated
              with prior offerings by the Company for purposes of the Securities
              Act which would  prevent the Company from selling the Common Stock

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              pursuant to Rule 506 under the  Securities  Act, or any applicable
              exchange-related  stockholder  approval  provisions,  nor will the
              Company or any of its affiliates or  subsidiaries  take any action
              or steps that would cause the  offering of the Common  Stock to be
              integrated  with  other  offerings  (other  than  such  concurrent
              offering to the Purchaser).

         (d)  The Warrants and the shares of Common Stock that the Purchaser may
              acquire  pursuant to the  Warrants are all  restricted  securities
              under the  Securities  Act as of the date of this  Agreement.  The
              Company  will not issue  any stop  transfer  order or other  order
              impeding  the  sale  and  delivery  of  any  of  the   Registrable
              Securities  at  such  time  as  such  Registrable  Securities  are
              registered  for public sale or an exemption from  registration  is
              available, except as required by federal or state securities laws.

         (e)  The Company  understands the nature of the Registrable  Securities
              issuable upon the exercise of each Warrant and recognizes that the
              issuance  of such  Registrable  Securities  may  have a  potential
              dilutive effect.  The Company  specifically  acknowledges that its
              obligation to issue the Registrable Securities is binding upon the
              Company and  enforceable  regardless of the dilution such issuance
              may have on the ownership  interests of other  shareholders of the
              Company.

         (f)  Except for  agreements  made in the  ordinary  course of business,
              there is no agreement  that has not been filed with the Commission
              as an exhibit to a registration statement or to a form required to
              be filed by the  Company  under the  Exchange  Act,  the breach of
              which could  reasonably be expected to have a material and adverse
              effect on the Company and its  subsidiaries,  or would prohibit or
              otherwise  interfere with the ability of the Company to enter into
              and perform any of its  obligations  under this  Agreement  in any
              material respect.

         (g)  The  Company  will at all times  have  authorized  and  reserved a
              sufficient  number of shares of Common Stock for the full exercise
              of the Warrants.

7.       Miscellaneous.

         (a)  Remedies.  In the event of a breach by the Company or by a Holder,
              of any of their respective obligations under this Agreement,  each
              Holder or the  Company,  as the case may be, in  addition to being
              entitled  to  exercise  all  rights  granted by law and under this
              Agreement,  including  recovery  of  damages,  will be entitled to
              specific performance of its rights under this Agreement.

         (b)  No  Piggyback  on  Registrations.  Except as and to the extent set
              forth on Schedule 7(b) hereto,  neither the Company nor any of its
              security holders (other than the Holders in such capacity pursuant
              hereto) may include  securities of the Company in any Registration
              Statement other than the Registrable  Securities,  and the Company
              shall not after the date hereof enter into any agreement providing
              any  such  right  for  inclusion  of  shares  in the  Registration
              Statement  to any of its  security  holders.  Except as and to the
              extent  specified  in Schedule  7(b)  hereto,  the Company has not
              previously  entered into any agreement  granting any  registration
              rights with  respect to any of its  securities  to any Person that
              have not been fully satisfied.

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

         (d)  Discontinued Disposition. Each Holder agrees by its acquisition of
              such  Registrable  Securities  that, upon receipt of a notice from
              the  Company  of the  occurrence  of a  Discontinuation  Event (as
              defined below), such Holder will forthwith discontinue disposition
              of such Registrable  Securities under the applicable  Registration
              Statement  until  such  Holder's  receipt  of  the  copies  of the
              supplemented  Prospectus and/or amended Registration  Statement or
              until it is advised in writing (the  "Advice") by the Company that
              the use of the  applicable  Prospectus  may be  resumed,  and,  in
              either case, has received copies of any additional or supplemental
              filings  that are  incorporated  or deemed to be  incorporated  by
              reference  in  such  Prospectus  or  Registration  Statement.  The
              Company  may  provide  appropriate  stop  orders  to  enforce  the
              provisions of this paragraph.  For purposes of this  Agreement,  a
              "Discontinuation   Event"  shall  mean  (i)  when  the  Commission
              notifies  the  Company  whether  there will be a "review"  of such
              Registration  Statement  and whenever the  Commission  comments in
              writing on such Registration  Statement (the Company shall provide
              true and complete copies thereof and all written responses thereto
              to each of the Holders); (ii) any request by the Commission or any
              other Federal or state  governmental  authority for  amendments or
              supplements  to such  Registration  Statement or Prospectus or for
              additional  information;  (iii) the issuance by the  Commission of
              any stop order suspending the  effectiveness of such  Registration
              Statement covering any or all of the Registrable Securities or the
              initiation of any Proceedings  for that purpose;  (iv) the receipt
              by the Company of any notification  with respect to the suspension
              of the qualification or exemption from qualification of any of the
              Registrable  Securities  for  sale  in  any  jurisdiction,  or the
              initiation  or  threatening  of any  Proceeding  for such purpose;
              and/or  (v) the  occurrence  of any event or  passage of time that
              makes  the  financial  statements  included  in such  Registration
              Statement  ineligible for inclusion  therein or any statement made
              in such  Registration  Statement  or  Prospectus  or any  document
              incorporated  or deemed to be  incorporated  therein by  reference
              untrue in any material  respect or that  requires any revisions to
              such  Registration  Statement,  Prospectus  or other  documents so
              that, in the case of such Registration Statement or Prospectus, as
              the case may be, it will not  contain  any untrue  statement  of a
              material  fact or omit to state any material  fact  required to be
              stated  therein or necessary to make the  statements  therein,  in
              light  of the  circumstances  under  which  they  were  made,  not
              misleading.

         (e)  Piggy-Back Registrations.  If at any time during any Effectiveness
              Period there is not an effective  Registration  Statement covering
              all of the  Registrable  Securities  required to be covered during
              such  Effectiveness  Period and the  Company  shall  determine  to
              prepare  and file with the  Commission  a  registration  statement

                                      -9-
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              relating  to an  offering  for its own  account or the  account of
              others under the Securities  Act of any of its equity  securities,
              other than on Form S-4 or Form S-8 (each as promulgated  under the
              Securities  Act) or their  then  equivalents  relating  to  equity
              securities to be issued solely in connection  with any acquisition
              of any  entity  or  business  or  equity  securities  issuable  in
              connection with stock option or other employee benefit plans, then
              the  Company  shall  send to each  Holder  written  notice of such
              determination  and, if within  fifteen (15) days after  receipt of
              such  notice,  any such Holder  shall so request in  writing,  the
              Company  shall include in such  registration  statement all or any
              part of such  Registrable  Securities  such Holder  requests to be
              registered,  to the extent the Company may do so without violating
              registration  rights of others  which exist as of the date of this
              Agreement, subject to customary underwriter cutbacks applicable to
              all holders of  registration  rights and subject to obtaining  any
              required consent of any selling  stockholder(s)  to such inclusion
              under such registration statement.

         (f)  Amendments  and  Waivers.   The  provisions  of  this   Agreement,
              including  the  provisions of this  sentence,  may not be amended,
              modified or  supplemented,  and waivers or consents to  departures
              from the provisions hereof may not be given, unless the same shall
              be in writing  and signed by the  Company  and the  Holders of the
              then  outstanding  Registrable  Securities.   Notwithstanding  the
              foregoing,  a waiver  or  consent  to depart  from the  provisions
              hereof with  respect to a matter that relates  exclusively  to the
              rights of certain Holders and that does not directly or indirectly
              affect the rights of other  Holders  may be given by Holders of at
              least a  majority  of the  Registrable  Securities  to which  such
              waiver or consent relates; provided,  however, that the provisions
              of this  sentence may not be amended,  modified,  or  supplemented
              except  in  accordance  with  the  provisions  of the  immediately
              preceding sentence.

         (g)  Notices.  Any  notice  or  request  hereunder  may be given to the
              Company or the  Purchaser at the  respective  addresses  set forth
              below or as may hereafter be specified in a notice designated as a
              change of address under this Section  7(g).  Any notice or request
              hereunder shall be given by registered or certified  mail,  return
              receipt requested, hand delivery,  overnight mail, Federal Express
              or  other  national  overnight  next  day  carrier  (collectively,
              "Courier") or telecopy  (confirmed by mail).  Notices and requests
              shall  be, in the case of those by hand  delivery,  deemed to have
              been given when delivered to any party to whom it is addressed, in
              the case of those by mail or overnight  mail,  deemed to have been
              given three (3) business days after the date when deposited in the
              mail or with the overnight mail carrier, in the case of a Courier,
              the next  business day  following  timely  delivery of the package
              with the Courier, and, in the case of a telecopy,  when confirmed.
              The  address  for  such  notices  and  communications  shall be as
              follows:

              If to the Company:           Reliant Home Warranty Corporation
                                           Attention:    Chief Financial Officer
                                           Facsimile:    __________________

                                      -10-
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              If to a Purchaser:           To the
                                           address   set  forth  under
                                           such  Purchaser name on the
                                           signature pages hereto.

              If to any other Person
              who is then the registered
              Holder:                      To the address of such Holder as it
                                           appears in the stock transfer books
                                           of the Company

              or such other address as may be designated in writing hereafter in
              accordance with this Section 7(g) by such Person.

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

         (i)  Execution and Counterparts.  This Agreement may be executed in any
              number of  counterparts,  each of which when so executed  shall be
              deemed to be an original  and, all of which taken  together  shall
              constitute  one and the  same  agreement.  In the  event  that any
              signature is delivered by facsimile  transmission,  such signature
              shall create a valid binding obligation of the party executing (or
              on whose behalf such signature is executed) the same with the same
              force and effect as if such facsimile  signature were the original
              thereof.

         (j)  Governing  Law,  Jurisdiction  and  Waiver  of  Jury  Trial.  THIS
              AGREEMENT  SHALL BE  GOVERNED  BY AND  CONSTRUED  AND  ENFORCED IN
              ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW YORK  APPLICABLE  TO
              CONTRACTS  MADE AND  PERFORMED  IN SUCH STATE,  WITHOUT  REGARD TO
              PRINCIPLES  OF CONFLICTS OF LAW. The Company  hereby  consents and
              agrees that the state or federal  courts  located in the County of
              New York,  State of New York shall have exclusion  jurisdiction to
              hear and determine any Proceeding between the Company,  on the one
              hand,  and the  Purchaser,  on the other hand,  pertaining to this
              Agreement  or to any  matter  arising  out of or  related  to this
              Agreement;   provided,   that  the   Purchaser   and  the  Company
              acknowledge  that any  appeals  from  those  courts may have to be
              heard by a court located outside of the County of New York,  State
              of New York, and further provided,  that nothing in this Agreement
              shall be deemed or operate to preclude the Purchaser from bringing
              a Proceeding in any other jurisdiction to collect the obligations,
              to  realize  on the  Collateral  or any  other  security  for  the
              obligations,  or to enforce a  judgment  or other  court  order in
              favor of the Purchaser. The Company expressly submits and consents
              in advance to such jurisdiction in any Proceeding commenced in any
              such court,  and the Company hereby waives any objection  which it
              may have based upon lack of personal jurisdiction,  improper venue
              or forum  non  conveniens.  The  Company  hereby  waives  personal
              service of the summons,  complaint and other process issued in any
              such Proceeding and agrees that service of such summons, complaint
              and other  process may be made by  registered  or  certified  mail

                                      -11-
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              addressed  to the Company at the address set forth in Section 7(g)
              and that  service  so made  shall  be  deemed  completed  upon the
              earlier of the Company's  actual receipt thereof or three (3) days
              after  deposit in the U.S.  mails,  proper  postage  prepaid.  The
              parties  hereto desire that their  disputes be resolved by a judge
              applying  such  applicable  laws.  Therefore,  to achieve the best
              combination  of  the  benefits  of  the  judicial  system  and  of
              arbitration,  the parties hereto waive all rights to trial by jury
              in any Proceeding brought to resolve any dispute,  whether arising
              in contract,  tort, or otherwise  between the Purchaser and/or the
              Company arising out of,  connected with,  related or incidental to
              the relationship  established between then in connection with this
              Agreement.  If either party hereto shall  commence a Proceeding to
              enforce any provisions of this Agreement,  the Security  Agreement
              or any other  Ancillary  Agreement,  then the prevailing  party in
              such  Proceeding  shall be  reimbursed  by the other party for its
              reasonable  attorneys' fees and other costs and expenses  incurred
              with  the  investigation,  preparation  and  prosecution  of  such
              Proceeding.

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

         (l)  Severability.  If any term, provision,  covenant or restriction of
              this Agreement is held by a court of competent  jurisdiction to be
              invalid,  illegal,  void or  unenforceable,  the  remainder of the
              terms,  provisions,  covenants and  restrictions  set forth herein
              shall  remain  in full  force  and  effect  and shall in no way be
              affected,  impaired or  invalidated,  and the parties hereto shall
              use their  reasonable  efforts to find and  employ an  alternative
              means to achieve the same or substantially the same result as that
              contemplated by such term, provision,  covenant or restriction. It
              is hereby  stipulated  and  declared  to be the  intention  of the
              parties  that  they  would  have  executed  the  remaining  terms,
              provisions,  covenants and restrictions  without  including any of
              such that may be  hereafter  declared  invalid,  illegal,  void or
              unenforceable.

         (m)  Headings.  The headings in this  Agreement are for  convenience of
              reference only and shall not limit or otherwise affect the meaning
              hereof.

       [Balance of page intentionally left blank; signature page follows]

                                      -12-
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         IN WITNESS WHEREOF,  the parties have executed this Registration Rights
Agreement as of the date first written above.

                                   RELIANT HOME WARRANTY CORPORATION
                                     Per:
                                           ----------------------------------
                                           Name:
                                           Title:

                                   LAURUS MASTER FUND, LTD.
                                     Per:
                                           ----------------------------------
                                           Name:
                                           Title:

                                   Address for Notices:

                                   825 Third Avenue, 14th Floor
                                   New York, New York 10022
                                   Attention:  David Grin
                                   Facsimile:  212-541-4434

                                      -13-
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                                    EXHIBIT A

                                                          ____________, 200___

[Continental Stock Transfer
& Trust Company
Two Broadway
New York, New York  10004

Attn:  William Seegraber]

         Re: Reliant Home Warranty  Corporation
             Registration Statement on Form [S-3]

Ladies and Gentlemen:

         As counsel to Reliant Home Warranty Corporation,  a Florida corporation
(the  "Company"),  we have  been  requested  to  render  our  opinion  to you in
connection  with the resale by the  individuals or entitles listed on Schedule A
attached  hereto (the  "Selling  Stockholders"),  of an aggregate of  __________
shares (the "Shares") of the Company's Common Stock.

         A  Registration  Statement  on Form [S-3] under the  Securities  Act of
1933,  as  amended  (the  "Act"),  with  respect to the resale of the Shares was
declared effective by the Securities and Exchange Commission on [date]. Enclosed
is the Prospectus dated [date].  We understand that the Shares are to be offered
and sold in the manner described in the Prospectus.

         Based upon the foregoing,  upon request by the Selling  Stockholders at
any time while the registration  statement remains effective,  it is our opinion
that  the  Shares  have  been  registered  for  resale  under  the  Act  and new
certificates evidencing the Shares upon their transfer or re-registration by the
Selling  Stockholders may be issued without  restrictive  legend. We will advise
you if the registration  statement is not available or effective at any point in
the future.

                                          Very truly yours,

                                          [Company counsel]

                                      -14-
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                             Schedule A to Exhibit A

Selling Stockholder             R/N/O                   Shares Being Offered

                                      -15-
<PAGE>

                                  SCHEDULE 7(b)

                                      -16-EXECUTION COPY
                                                                --------------

                             FUNDS ESCROW AGREEMENT

                  This Agreement  (this  "Agreement") is dated as of the 8th day
of June 2006 among RELIANT HOME WARRANTY CORPORATION, a Florida corporation (the
"Company"), Laurus Master Fund, Ltd. (the "Purchaser"), and Loeb & Loeb LLP (the
"Escrow Agent"):

                              W I T N E S S E T H:
                               -------------------

                   WHEREAS,  the Purchaser has advised the Escrow Agent that (a)
the  Company  and the  Purchaser  have  entered  into a  Security  and  Purchase
Agreement  (the  "Security  Agreement")  for  the  sale  by the  Company  to the
Purchaser   of  a  secured   non-convertible   revolving   note  (the   "Secured
Non-Convertible  Revolving Note"), (b) the Company has issued to the Purchaser a
common stock purchase warrant (the "Warrant") in connection with the issuance of
the  Secured  Non-Convertible  Revolving  Note,  and  (c)  the  Company  and the
Purchaser  have  entered  into a  Registration  Rights  Agreement  covering  the
registration   of  the   Company's   common   stock   underlying   the   Secured
Non-Convertible  Revolving  Note  and  the  Warrant  (the  "Registration  Rights
Agreement");

                  WHEREAS,  the Company and the Purchaser wish to deliver to the
Escrow Agent copies of the Documents (as hereafter  defined) and,  following the
satisfaction of all closing conditions relating to the Documents,  the Purchaser
to deliver the Escrowed Payment (as hereafter defined), in each case, to be held
and released by Escrow Agent in accordance with the terms and conditions of this
Agreement; and

                  WHEREAS,  the Escrow Agent is willing to serve as escrow agent
pursuant to the terms and conditions of this Agreement;

                  NOW THEREFORE, the parties agree as follows:

ARTICLE I
                                 INTERPRETATION

1.1      Definitions. Whenever used in this Agreement, the following terms shall
         have the meanings set forth below.

         (a)  "Agreement"  means this  Agreement,  as amended,  modified  and/or
              supplemented  from  time to time by  written  agreement  among the
              parties hereto.

         (b)  "Disbursement  Letter" means that certain letter  delivered to the
              Escrow Agent by the Company,  acceptable  in form and substance to
              the Purchaser,  setting forth wire  instructions and amounts to be
              funded at the Closing.

         (c)  "Documents" means copies of the Disbursement  Letter, the Security
              Agreement,    the   Secured    Convertible   Note,   the   Secured
              Non-Convertible  Revolving Note, the Warrant and the  Registration
              Rights Agreement].
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         (d)  "Escrowed Payment" means $1,056,115.93.

         (e)  "Servicing  Payment"  means the  servicing  payment  to be paid to
              Laurus Capital Management,  LLC, the fund manager, as set forth on
              Schedule A hereto.

1.2      Entire Agreement. This Agreement constitutes the entire agreement among
         the parties  hereto  with  respect to the  arrangement  with the Escrow
         Agent and supersedes all prior agreements, understandings, negotiations
         and discussions of the parties, whether oral or written with respect to
         the  arrangement  with  the  Escrow  Agent.  There  are no  warranties,
         representations  and other agreements made by the parties in connection
         with the arrangement  with the Escrow Agent except as specifically  set
         forth in this Agreement.

1.3      Extended  Meanings.  In this  Agreement  words  importing  the singular
         number include the plural and vice versa; words importing the masculine
         gender  include the  feminine  and neuter  genders.  The word  "person"
         includes an individual, body corporate,  partnership,  trustee or trust
         or  unincorporated  association,   executor,   administrator  or  legal
         representative.

1.4      Waivers  and  Amendments.  This  Agreement  may be  amended,  modified,
         superseded,   cancelled,   renewed  or  extended,  and  the  terms  and
         conditions  hereof  may be  waived,  in each  case  only  by a  written
         instrument  signed by all parties hereto,  or, in the case of a waiver,
         by the party waiving compliance.  Except as expressly stated herein, no
         delay  on the part of any  party  in  exercising  any  right,  power or
         privilege  hereunder shall operate as a waiver  thereof,  nor shall any
         waiver  on the part of any  party  of any  right,  power  or  privilege
         hereunder  preclude  any other or future  exercise of any other  right,
         power or privilege hereunder.

1.5      Headings.  The  division of this  Agreement  into  articles,  sections,
         subsections  and  paragraphs  and the  insertion  of  headings  are for
         convenience of reference only and shall not affect the  construction or
         interpretation of this Agreement.

1.6      Law Governing this Agreement;  Consent to Jurisdiction.  THIS AGREEMENT
         SHALL BE GOVERNED BY AND CONSTRUED IN  ACCORDANCE  WITH THE LAWS OF THE
         STATE OF NEW YORK WITHOUT  REGARD TO  PRINCIPLES  OF CONFLICTS OF LAWS.
         With  respect  to any  suit,  action  or  proceeding  relating  to this
         Agreement or to the transactions  contemplated hereby  ("Proceedings"),
         each party hereto irrevocably submits to the exclusive  jurisdiction of
         the courts of the County of New York,  State of New York and the United
         States District court located in the county of New York in the State of
         New York. Each party hereto hereby irrevocably and  unconditionally (a)
         waives trial by jury in any  Proceeding  relating to this Agreement and
         for any related  counterclaim and (b) waives any objection which it may
         have at any time to the  laying of venue of any  Proceeding  brought in
         any such  court,  waives  any  claim  that such  Proceedings  have been
         brought  in an  inconvenient  forum  and  further  waives  the right to
         object, with respect to such Proceedings, that such court does not have

                                      -2-
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         jurisdiction over such party. As between the Company and the Purchaser,
         the prevailing  party shall be entitled to recover from the other party
         its  reasonable  attorneys'  fees  and  costs.  In the  event  that any
         provision  of this  Agreement  is  determined  by a court of  competent
         jurisdiction to be invalid or unenforceable, then the remainder of this
         Agreement  shall not be  affected  and shall  remain in full  force and
         effect.

1.7      Construction.   Each  party   acknowledges   that  its  legal   counsel
         participated  in the  preparation  of this  Agreement  and,  therefore,
         stipulates  that the rule of  construction  that  ambiguities are to be
         resolved  against  the  drafting  party  shall  not be  applied  in the
         interpretation of this Agreement to favor any party against the other.

                                   ARTICLE II
                APPOINTMENT OF AND DELIVERIES TO THE ESCROW AGENT

2.1      Appointment. The Company and the Purchaser hereby irrevocably designate
         and appoint the Escrow Agent as their escrow agent for the purposes set
         forth  herein,  and the Escrow Agent by its  execution  and delivery of
         this  Agreement  hereby  accepts such  appointment  under the terms and
         conditions set forth herein.

2.2      Copies of Documents to Escrow Agent.  On or about the date hereof,  the
         Purchaser  and the Company  shall deliver to the Escrow Agent copies of
         the Documents executed by such parties.

2.3      Delivery  of  Escrowed   Payment  to  Escrow   Agent.   Following   the
         satisfaction of all closing conditions relating to the Documents (other
         than the funding of the Escrowed Payment),  the Purchaser shall deliver
         to the Escrow  Agent the  Escrowed  Payment.  At such time,  the Escrow
         Agent shall hold the Escrowed Payment as agent for the Company, subject
         to the terms and conditions of this Agreement.

2.4      Intention to Create Escrow Over the Escrowed Payment. The Purchaser and
         the Company intend that the Escrowed Payment shall be held in escrow by
         the Escrow Agent and  released  from escrow by the Escrow Agent only in
         accordance with the terms and conditions of this Agreement.

                                  ARTICLE III
                                RELEASE OF ESCROW

3.1      Release of Escrow. Subject to the provisions of Section 4.2, the Escrow
         Agent shall release the Escrowed Payment from escrow as follows:

         (a)  Upon  receipt by the Escrow  Agent of (i) oral  instructions  from
              David Grin  and/or  Eugene Grin (each of whom is a director of the
              Purchaser)  consenting to the release of the Escrowed Payment from
              escrow in accordance with the  Disbursement  Letter  following the
              Escrow  Agent's  receipt  of  the  Escrowed   Payment,   (ii)  the
              Disbursement  Letter, and (iii) the Escrowed Payment, the Escrowed

                                      -3-
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              Payment  shall  promptly  be  disbursed  in  accordance  with  the
              Disbursement   Letter.  The  Disbursement  Letter  shall  include,
              without  limitation,  Escrow Agent's  authorization to retain from
              the Escrowed Payment Escrow Agent's fee for acting as Escrow Agent
              hereunder and the Servicing Payment for delivery to Laurus Capital
              Management, LLC in accordance with the Disbursement Letter.

         (b)  Upon  receipt  by the Escrow  Agent of a final and  non-appealable
              judgment,   order,  decree  or  award  of  a  court  of  competent
              jurisdiction (a "Court Order")  relating to the Escrowed  Payment,
              the Escrow  Agent shall remit the Escrowed  Payment in  accordance
              with the Court Order.  Any Court Order shall be  accompanied by an
              opinion of counsel for the party presenting the Court Order to the
              Escrow Agent (which  opinion shall be  satisfactory  to the Escrow
              Agent) to the effect  that the court  issuing the Court Order is a
              court of competent  jurisdiction and that the Court Order is final
              and non-appealable.

3.2      Acknowledgement of Company and Purchaser; Disputes. The Company and the
         Purchaser acknowledge that the only terms and conditions upon which the
         Escrowed  Payment  are to be  released  from escrow are as set forth in
         Sections  3 and 4 of this  Agreement.  The  Company  and the  Purchaser
         reaffirm  their  agreement to abide by the terms and conditions of this
         Agreement  with  respect to the release of the  Escrowed  Payment.  Any
         dispute with respect to the release of the  Escrowed  Payment  shall be
         resolved  pursuant to Section 4.2 or by written  agreement  between the
         Company and Purchaser.

                                   ARTICLE IV
                           CONCERNING THE ESCROW AGENT

4.1      Duties and  Responsibilities  of the Escrow Agent.  The Escrow  Agent's
         duties and responsibilities shall be subject to the following terms and
         conditions:

         (a)  The  Purchaser  and the  Company  acknowledge  and agree  that the
              Escrow Agent (i) shall not be required to inquire into whether the
              Purchaser,  the  Company or any other party is entitled to receipt
              of any  Document  or all or any portion of the  Escrowed  Payment;
              (ii) shall not be called upon to  construe or review any  Document
              or any other  document,  instrument  or agreement  entered into in
              connection  therewith;  (iii)  shall  be  obligated  only  for the
              performance  of such  duties as are  specifically  assumed  by the
              Escrow  Agent  pursuant  to this  Agreement;  (iv) may rely on and
              shall be  protected in acting or  refraining  from acting upon any
              written notice,  instruction,  instrument,  statement,  request or
              document  furnished  to it  hereunder  and  believed by the Escrow
              Agent in good  faith to be  genuine  and to have  been  signed  or
              presented by the proper person or party, without being required to
              determine  the  authenticity  or  correctness  of any fact  stated
              therein or the propriety or validity or the service  thereof;  (v)
              may assume that any person  purporting  to give notice or make any
              statement  or  execute  any  document  in   connection   with  the
              provisions  hereof has been duly  authorized  to do so; (vi) shall

                                      -4-
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              not be  responsible  for the identity,  authority or rights of any
              person,  firm or company  executing or delivering or purporting to
              execute or deliver  this  Agreement  or any  Document or any funds
              deposited  hereunder  or any  endorsement  thereon  or  assignment
              thereof;  (vii)  shall not be under any duty to give the  property
              held by Escrow  Agent  hereunder  any greater  degree of care than
              Escrow  Agent  gives its own  similar  property;  and  (viii)  may
              consult counsel  satisfactory to Escrow Agent (including,  without
              limitation,  Loeb & Loeb,  LLP or such  other  counsel  of  Escrow
              Agent's  choosing),  the  opinion  of such  counsel to be full and
              complete  authorization  and  protection  in respect of any action
              taken, suffered or omitted by Escrow Agent hereunder in good faith
              and in accordance with the opinion of such counsel.

         (b)  The Purchaser and the Company acknowledge that the Escrow Agent is
              acting  solely  as a  stakeholder  at their  request  and that the
              Escrow  Agent  shall not be liable for any action  taken by Escrow
              Agent in good faith and believed by Escrow Agent to be  authorized
              or within the rights or powers conferred upon Escrow Agent by this
              Agreement.  The  Purchaser  and the  Company  hereby,  jointly and
              severally, indemnify and hold harmless the Escrow Agent and any of
              Escrow Agent's  partners,  employees,  agents and  representatives
              from and against any and all actions  taken or omitted to be taken
              by Escrow Agent or any of them  hereunder  and any and all claims,
              losses,  liabilities,  costs, damages and expenses suffered and/or
              incurred by the Escrow Agent arising in any manner  whatsoever out
              of the  transactions  contemplated  by this  Agreement  and/or any
              transaction  related  in any way  hereto,  including  the  fees of
              outside  counsel and other costs and expenses of defending  itself
              against  any  claims,  losses,  liabilities,  costs,  damages  and
              expenses  arising in any manner  whatsoever  out the  transactions
              contemplated by this Agreement  and/or any transaction  related in
              any way  hereto,  except  for such  claims,  losses,  liabilities,
              costs,  damages  and  expenses  incurred  by reason of the  Escrow
              Agent's gross negligence or willful  misconduct.  The Escrow Agent
              shall owe a duty only to the  Purchaser and the Company under this
              Agreement and to no other person.

         (c)  The   Purchaser  and  the  Company  shall  jointly  and  severally
              reimburse  the  Escrow  Agent  for  its  reasonable  out-of-pocket
              expenses  (including  counsel  fees  (which  counsel may be Loeb &
              Loeb,  LLP or such other counsel of the Escrow  Agent's  choosing)
              incurred  in  connection  with the  performance  of its duties and
              responsibilities  hereunder,  which shall not  (subject to Section
              4.1(b)) exceed $4,000.

         (d)  The Escrow Agent may at any time resign as Escrow Agent  hereunder
              by  giving  five  (5)  business  days  prior  written   notice  of
              resignation  to  the  Purchaser  and  the  Company.  Prior  to the
              effective  date of  resignation  as specified in such notice,  the
              Purchaser  and  Company  will  issue to the  Escrow  Agent a joint

                                      -5-
<PAGE>
                                                                EXECUTION COPY
                                                                --------------

              instruction authorizing delivery of the Documents and the Escrowed
              Payment to a substitute Escrow Agent selected by the Purchaser and
              the  Company.  If no  successor  Escrow  Agent  is  named  by  the
              Purchaser  and the Company,  the Escrow Agent may apply to a court
              of competent jurisdiction in the State of New York for appointment
              of a successor  Escrow  Agent,  and deposit the  Documents and the
              Escrowed  Payment  with  the  clerk  of  any  such  court,  and/or
              otherwise  commence  an  interpleader  or  similar  action  for  a
              determination of where to deposit the same.

         (e)  The Escrow  Agent does not have and will not have any  interest in
              the  Documents  and the Escrowed  Payment,  but is serving only as
              escrow agent, having only possession thereof.

         (f)  The  Escrow  Agent  shall not be liable  for any  action  taken or
              omitted by it in good faith and  reasonably  believed  by it to be
              authorized hereby or within the rights or powers conferred upon it
              hereunder,  nor for action  taken or omitted by it in good  faith,
              and in  accordance  with advice of counsel  (which  counsel may be
              Loeb & Loeb,  LLP or such  other  counsel  of the  Escrow  Agent's
              choosing),  and  shall not be liable  for any  mistake  of fact or
              error of judgment or for any acts or  omissions of any kind except
              to the  extent  any such  liability  arose  from  its own  willful
              misconduct or gross negligence.

         (g)  This  Agreement  sets forth  exclusively  the duties of the Escrow
              Agent with respect to any and all matters pertinent thereto and no
              implied duties or obligations shall be read into this Agreement.

         (h)  The Escrow  Agent  shall be  permitted  to act as counsel  for the
              Purchaser or the Company, as the case may be, in any dispute as to
              the disposition of the Documents and the Escrowed Payment,  in any
              other dispute  between the  Purchaser and the Company,  whether or
              not the Escrow  Agent is then  holding  the  Documents  and/or the
              Escrowed  Payment  and  continues  to  act  as  the  Escrow  Agent
              hereunder.

         (i)  The  provisions of this Section 4.1 shall survive the  resignation
              of the Escrow Agent or the termination of this Agreement.

4.2      Dispute  Resolution;  Judgments.  Resolution of disputes  arising under
         this Agreement shall be subject to the following terms and conditions:

         (a)  If  any  dispute   shall  arise  with  respect  to  the  delivery,
              ownership,  right of  possession or  disposition  of the Documents
              and/or the Escrowed Payment,  or if the Escrow Agent shall in good
              faith be  uncertain  as to its  duties  or rights  hereunder,  the
              Escrow Agent shall be authorized,  without liability to anyone, to
              (i) refrain  from taking any action other than to continue to hold
              the Documents and the Escrowed  Payment pending receipt of a joint
              instruction  from the Purchaser and the Company,  (ii) commence an
              interpleader  or  similar  action,  suit  or  proceeding  for  the
              resolution of any such dispute; and/or (iii) deposit the Documents

                                      -6-
<PAGE>
                                                                EXECUTION COPY
                                                                --------------

              and the Escrowed Payment with any court of competent  jurisdiction
              in the State of New York,  in which  event the Escrow  Agent shall
              give written  notice  thereof to the Purchaser and the Company and
              shall  thereupon  be  relieved  and  discharged  from all  further
              obligations pursuant to this Agreement.  The Escrow Agent may, but
              shall  be  under  no  duty  to,  institute  or  defend  any  legal
              proceedings  which  relate  to  the  Documents  and  the  Escrowed
              Payment.  The Escrow Agent shall have the right to retain  counsel
              if it becomes involved in any disagreement,  dispute or litigation
              on account of this  Agreement or otherwise  determines  that it is
              necessary to consult counsel which counsel may be Loeb & Loeb, LLP
              or such other counsel of the Escrow Agent's choosing.

         (b)  The Escrow Agent is hereby expressly authorized to comply with and
              obey any Court  Order.  In case the Escrow Agent obeys or complies
              with a Court  Order,  the Escrow  Agent shall not be liable to the
              Purchaser and the Company or to any other person, firm, company or
              entity by reason of such compliance.

                                   ARTICLE V
                                 GENERAL MATTERS

5.1      Termination.  This escrow  shall  terminate  upon  disbursement  of the
         Escrowed  Payment in  accordance  with the terms of this  Agreement  or
         earlier upon the  agreement in writing of the Purchaser and the Company
         or resignation of the Escrow Agent in accordance with the terms hereof.

5.2      Notices.  All  notices,  requests,  demands  and  other  communications
         required or permitted hereunder shall be in writing and shall be deemed
         to have been duly given one (1) day after being sent by telecopy  (with
         copy delivered by overnight courier, regular or certified mail):

         (a)  If to the Company, to:

                           Reliant Home Warranty Corporation

                           350 Bay Street
                           Suite 250
                           Toronto, Ontario
                           M5H 2S6

                           Attention: Kevin Hamilton

         (b)  If to the Purchaser, to:

                           Laurus Master Fund, Ltd.
                           M&C Corporate Services Limited,
                           P.O. Box 309 GT, Ugland House
                           South Church Street, George Town
                           Grand Cayman, Cayman Islands

                           Fax:     345-949-8080

                           Attention:       John Tucker, Esq.

                                      -7-
<PAGE>
                                                                EXECUTION COPY
                                                                --------------

         (c)  If to the Escrow Agent, to:

                           Loeb & Loeb LLP
                           345 Park Avenue
                           New York, New York 10154

                           Fax:     (212) 407-4990

                           Attention:       Scott J. Giordano, Esq.

              or to such  other  address as any of them shall give to the others
              by notice made pursuant to this Section 5.2.

5.3      Interest. The Escrowed Payment shall not be held in an interest bearing
         account nor will interest be payable in connection therewith.

5.4      Assignment;  Binding Agreement. Neither this Agreement nor any right or
         obligation hereunder shall be assignable by any party without the prior
         written consent of the other parties hereto. This Agreement shall inure
         to the  benefit of and be  binding  upon the  parties  hereto and their
         respective legal representatives, successors and assigns.

5.5      Invalidity.  In the  event  that  any  one or  more  of the  provisions
         contained  herein, or the application  thereof in any circumstance,  is
         held invalid,  illegal, or unenforceable in any respect for any reason,
         the  validity,  legality and  enforceability  of any such  provision in
         every other respect and of the remaining  provisions  contained  herein
         shall not be in any way impaired thereby, it being intended that all of
         the rights and privileges of the parties hereto shall be enforceable to
         the fullest extent permitted by law.

5.6      Counterparts/Execution. This Agreement may be executed in any number of
         counterparts   and  by   different   signatories   hereto  on  separate
         counterparts,  each of  which,  when so  executed,  shall be  deemed an
         original,  but all such  counterparts  shall constitute but one and the
         same   agreement.   This   Agreement   may  be  executed  by  facsimile
         transmission.

                [Remainder of this page intentionally left blank]

                                      -8-
<PAGE>
                                                                EXECUTION COPY
                                                                --------------

IN WITNESS  WHEREOF,  the parties  hereto have executed this Agreement as of the
date and year first above written.

COMPANY:

                             RELIANT HOME WARRANTY CORPORATION
                                By:
                                     -------------------------------------------
                                     Name
                                     Title

PURCHASER:

                             LAURUS MASTER FUND, LTD.
                                By:
                                     -------------------------------------------
                                     Name
                                     Title

ESCROW AGENT:

                             LOEB & LOEB LLP
                                By:
                                     -------------------------------------------
                                     Name
                                     Title

                                      -9-
<PAGE>

<TABLE>
<CAPTION>
                                  SCHEDULE "A"
                            TO FUNDS ESCROW AGREEMENT

------------------------------------------------------------ ---------------------------------------------------------
PURCHASER                                                    PRINCIPAL NOTE AMOUNT
------------------------------------------------------------ ---------------------------------------------------------
<S>                                                          <C>
LAURUS MASTER FUND, LTD.,                                    Secured  Non-Convertible  Revolving Note in an aggregate
M&C Corporate Services Limited,                              principal amount of $25,000,000
P.O. Box 309 GT,
Ugland House, South Church Street,
George Town, Grand Cayman, Cayman Islands
Fax: 345-949-8080
------------------------------------------------------------ ---------------------------------------------------------
TOTAL                                                        $25,000,000
------------------------------------------------------------ ---------------------------------------------------------

------------------------------------------------------------ ---------------------------------------------------------
FUND MANAGER                                                 SERVICING PAYMENT
------------------------------------------------------------ ---------------------------------------------------------
LAURUS CAPITAL  MANAGEMENT,  L.L.C.                          Servicing  payment payable in connection with investment
825 Third Avenue, 14th Floor                                 by Laurus  Master Fund,  Ltd.  for which Laurus  Capital
New York, New York 10022                                     Management, L.L.C. is the Manager.
Fax: 212-541-4434
------------------------------------------------------------ ---------------------------------------------------------
TOTAL                                                        $900,000
------------------------------------------------------------ ---------------------------------------------------------

WARRANTS

------------------------------------------------------------ ---------------------------------------------------------
WARRANT RECIPIENT                                            WARRANTS IN CONNECTION WITH OFFERING
------------------------------------------------------------ ---------------------------------------------------------
LAURUS MASTER FUND, LTD.                                     Warrant  exercisable  into  36,128,286  shares of common
M&C Corporate Services Limited,                              stock of the  Company  issuable in  connection  with the
P.O. Box 309 GT,                                             Secured Non-Convertible Revolving Note.
Ugland House, South Church Street,
George Town, Grand Cayman, Cayman Islands

Fax: 345-949-8080
------------------------------------------------------------ ---------------------------------------------------------
TOTAL                                                        Warrants  exercisable  into 36,128,286  shares of common
                                                             stock of the Company
------------------------------------------------------------ ---------------------------------------------------------
</TABLE>

                                      -10-

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