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, 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

    

    To
      Purchase 2,500,000 Shares of Common Stock of

     

    SUB-URBAN
      BRANDS, INC.

     

    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 three year anniversary of the Initial
      Exercise Date (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from Sub-Urban Brands, Inc. a
      Nevada corporation (the “Company”),
      up to
      2,500,000 shares (the “Warrant
      Shares”)
      of
      Common Stock, par value $0.001 per share, of the Company (the “Common
      Stock”).
      The
      purchase price of one share of Common Stock under this Warrant shall be equal
      to
      the Exercise Price, as defined in Section 1(b). 

     

    Section
      1. 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 (or such other
      office or agency of the Company as it may designate by notice in writing to
      the
      registered Holder at the address of such Holder appearing on the books of the
      Company); provided,
      however,
      within
      5 Trading Days of the date said Notice of Exercise is delivered to the Company,
      the Holder shall have surrendered this Warrant to the Company and the Company
      shall have received payment of the aggregate Exercise Price of the shares
      thereby purchased by wire transfer or cashier’s check drawn on a United States
      bank. 

     

    
      
        
        

      

      
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    b) Exercise
      Price.
      The
      exercise price of the Common Stock under this Warrant shall be $0.40, subject
      to
      adjustment hereunder (the “Exercise
      Price”).

     

    c) Cashless
      Exercise.
      If at
      any time after one year from the date of issuance of this Warrant there is
      no
      effective Registration Statement registering, or no current prospectus available
      for, the resale of the Warrant Shares by the Holder, then this Warrant may
      also
      be exercised at such time by means of a “cashless exercise” in which the Holder
      shall be entitled to receive a certificate for the number of Warrant Shares
      equal to the quotient obtained by dividing [(A-B) (X)] by (A),
      where:

     

    
      	
            	(A)
              =	
               the
                Closing Price on the Trading Day immediately preceding the date of
                such
                election;

            

    

    

    
      	
            	(B)
              =	
               the
                Exercise Price of this Warrant, as adjusted; and
                

            

    

    

    
      	
            	(X)
              = 	
              the
                number of Warrant Shares issuable upon exercise of this Warrant in
                accordance with the terms of this Warrant by means of a cash exercise
                rather than a cashless exercise.

            

    

    

    d) Exercise
      Limitations;
      Holder’s
      Restrictions.
      The
      Holder shall not be entitled to exercise on a Conversion Date that amount of
      the
      Warrants into that number of shares of Common Stock which would be in excess
      of
      the sum of (i) the number of shares of common stock beneficially owned by the
      Holder and any Person, as such term is used in and construed under Rule 144
      under the Securities Act, that, directly or indirectly through one or more
      intermediaries, controls or is controlled by or is under common control with
      the
      Holder (collectively, “Affiliates”) immediately prior to an exercise, and (ii)
      the number of shares of Common Stock issuable upon the exercise of this Warrant
      with respect to which the determination of this provision is being made, which
      would result in beneficial ownership by the Holder and its Affiliates of more
      than 9.99% of the outstanding shares of Common Stock of the Corporation
      immediately following a exercise. For the purposes of the provision to the
      immediately preceding sentence, beneficial ownership shall be determined in
      accordance with Section 13(d) of the Securities Exchange Act of 1934, as
      amended, and Regulation 13d-3 thereunder. Subject to the foregoing, the Holder
      shall not be limited to aggregate exercises of only 9.99% and aggregate
      exercises by the Holder may exceed 9.99% as the Holder may void the exercise
      limitation described in this Section 2(d) upon and effective after 61 days
      prior
      written notice to the Corporation. The Holder may allocate which of the equity
      of the Corporation deemed beneficially owned by the Holder shall be included
      in
      the 9.99% amount described above and which shall be allocated to the excess
      above 9.99%.

     

    
      
        
        

      

      
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    e) Mechanics
      of Exercise.
      

     

    i. Authorization
      of Warrant Shares.
      The
      Company covenants that all Warrant Shares which may be issued upon the exercise
      of the purchase rights represented by this Warrant will, upon exercise of the
      purchase rights represented by this Warrant, be duly authorized, validly issued,
      fully paid and nonassessable and free from all taxes, liens and charges in
      respect of the issue thereof (other than taxes in respect of any transfer
      occurring contemporaneously with such issue
      and
      liens imposed upon such shares as a result of Holder’s actions).
      

     

    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 within
      3 Trading Days from the delivery to the Company of the Notice of Exercise Form,
      surrender of this Warrant and payment of the aggregate Exercise Price as set
      forth above (“Warrant
      Share Delivery Date”).
      This
      Warrant shall be deemed to have been exercised on the date the Exercise Price
      is
      received by the Company. The Warrant Shares shall be deemed to have been issued,
      and Holder or any other person so designated to be named therein shall be deemed
      to have become a holder of record of such shares for all purposes, as of the
      date the Warrant has been exercised by payment to the Company of the Exercise
      Price and all taxes required to be paid by the Holder, if any, pursuant to
      Section 1(e)(vii) prior to the issuance of such shares, have been paid.

     

    iii. Delivery
      of New Warrants Upon Exercise.
      If this
      Warrant shall have been exercised in part, the Company shall, 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 this
      Section 1(e)(iv) by the Warrant Share Delivery Date, then the Holder will have
      the right to rescind such exercise.

     

    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 pay
      a
      cash adjustment in respect of such final fraction in an amount equal to such
      fraction multiplied by the Exercise Price.

     

    
      
        
        

      

      
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    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.

     

    f) Right
      of Redemption.
      After
      the Company has filed a registration statement, and such statement is effective,
      the Company at its option shall have the right, with thirty (30) business days
      advance written notice (the “Redemption
      Notice”),
      to
      redeem this Warrant in its entirety at $0.01 per share, provided that for the
      ten consecutive trading days ending the day prior to the day the Redemption
      Notice is delivered to the Holder (i) the average of the closing bid and ask
      prices of the Common Stock, as reported by Bloomberg, LP, is equal to or more
      than $1.00 and (ii) the average daily trading volume of the Common Stock is
      greater than 100,000. Notwithstanding the foregoing in the event that the
      Company has elected to redeem this Warrant, the Holder shall be permitted to
      exercise all or any portion of this Warrant during such thirty business day
      period. 

     

    Section
      2. 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 makes a distribution or distributions on shares of its
      Common Stock or any other equity or equity equivalent securities payable in
      shares of Common Stock (which, for avoidance of doubt, shall not include any
      shares of Common Stock issued by the Company pursuant to 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.

     

    
      
        
        

      

      
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    b) Subsequent
      Equity Sales.
      If the
      Company or any Subsidiary thereof, as applicable, at any time while this Warrant
      is outstanding, shall offer, sell, grant any option to purchase or offer, sell
      or grant any right to reprice its securities, or otherwise dispose of or issue
      (or announce any offer, sale, grant or any option to purchase or other
      disposition) any Common Stock or Common Stock Equivalents entitling any Person
      to acquire shares of Common Stock, at an effective price per share less than
      the
      then Exercise Price (such lower price, the “Base
      Share Price”
and
      such issuances collectively, a “Dilutive
      Issuance”),
      as
      adjusted hereunder (if the holder of the Common Stock or Common Stock
      Equivalents so issued shall at any time, whether by operation of purchase price
      adjustments, reset provisions, floating conversion, exercise or exchange prices
      or otherwise, or due to warrants, options or rights per share which is issued
      in
      connection with such issuance, be entitled to receive shares of Common Stock
      at
      an effective price per share which is less than the Exercise Price, such
      issuance shall be deemed to have occurred for less than the Exercise Price
      on
      such date of the Dilutive Issuance), then, the Exercise Price shall be reduced
      to the price (calculated to the nearest one hundredth of a cent) determined
      by
      multiplying the Exercise Price in effect immediately prior thereto by a
      fraction, the numerator of which shall be the sum of (i) the number of shares
      of
      Common Stock outstanding immediately prior to such issuance, and (ii) the number
      of shares of Common Stock which the aggregate consideration received (or to
      be
      received, assuming exercise or conversion in full of such rights, warrants
      and
      convertible securities) for the issuance of such additional shares of Common
      Stock would purchase at the Exercise Price, and the denominator of which shall
      be the sum of the number of shares of Common Stock outstanding immediately
      after
      the issuance of such additional shares. Such adjustment shall be made
      successively whenever such an issuance is made. Notwithstanding the foregoing,
      no adjustments shall be made, paid or issued under this Section 3(b) in respect
      of an Exempt Issuance. The Company shall notify the Holder in writing, no later
      than the Trading Day following the issuance of any Common Stock or Common Stock
      Equivalents subject to this section, indicating therein the applicable issuance
      price, or of applicable reset price, exchange price, conversion price and other
      pricing terms (such notice the “Dilutive
      Issuance Notice”).
      For
      purposes of clarification, whether or not the Company provides a Dilutive
      Issuance Notice pursuant to this Section 3(b), upon the occurrence of any
      Dilutive Issuance, after the date of such Dilutive Issuance the Holder is
      entitled to receive a number of Warrant Shares based upon the Base Share Price
      regardless of whether the Holder accurately refers to the Base Share Price
      in
      the Notice of Exercise. 

     

    c) Pro
      Rata Distributions.
      If the
      Company, at any time prior to the Termination Date, shall distribute to all
      holders of Common Stock (and not to Holders of the Warrants) evidences of its
      indebtedness or assets (including cash and cash dividends) or rights or warrants
      to subscribe for or purchase any security other than the Common Stock (which
      shall be subject to Section 3(b)), then in each such case the Exercise Price
      shall be adjusted by multiplying the Exercise Price in effect immediately prior
      to the record date fixed for determination of stockholders entitled to receive
      such distribution by a fraction of which the denominator shall be the Closing
      Price determined as of the record date mentioned above, and of which the
      numerator shall be such Closing Price on such record date less the then per
      share fair market value at such record date of the portion of such assets or
      evidence of indebtedness so distributed applicable to one outstanding share
      of
      the Common Stock as determined by the Board of Directors in good faith. In
      either case the adjustments shall be described in a statement provided to the
      Holder of the portion of assets or evidences of indebtedness so distributed
      or
      such subscription rights applicable to one share of Common Stock. Such
      adjustment shall be made whenever any such distribution is made and shall become
      effective immediately after the record date mentioned above.

     

    
      
        
        

      

      
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    d) Fundamental
      Transaction.
      If, at
      any time while this Warrant is outstanding, (A) the Company effects any merger
      or consolidation of the Company with or into another Person, (B) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (C) any tender offer or exchange offer (whether by the
      Company or another Person) is completed pursuant to which holders of Common
      Stock are permitted to tender or exchange their shares for other securities,
      cash or property, or (D) the Company effects any reclassification of the Common
      Stock or any compulsory share exchange pursuant to which the Common Stock is
      effectively converted into or exchanged for other securities, cash or property
      (in any such case, a “Fundamental
      Transaction”),
      then,
      upon any subsequent exercise of this Warrant, the Holder shall have the right
      to
      receive, for each Warrant Share that would have been issuable upon such exercise
      immediately prior to the occurrence of such Fundamental Transaction, at the
      option of the Holder, (a) upon exercise of this Warrant, the number of shares
      of
      Common Stock of the successor or acquiring corporation or of the Company, if
      it
      is the surviving corporation, and any additional consideration (the
“Alternate
      Consideration”)
      receivable upon or as a result of such reorganization, reclassification, merger,
      consolidation or disposition of assets by a Holder of the number of shares
      of
      Common Stock for which this Warrant is exercisable immediately prior to such
      event or (b) if the Company is acquired in an all cash transaction, cash equal
      to the value of this Warrant as determined in accordance with the Black-Scholes
      option pricing formula. For purposes of any such exercise, the determination
      of
      the Exercise Price shall be appropriately adjusted to apply to such Alternate
      Consideration based on the amount of Alternate Consideration issuable in respect
      of one share of Common Stock in such Fundamental Transaction, and the Company
      shall apportion the Exercise Price among the Alternate Consideration in a
      reasonable manner reflecting the relative value of any different components
      of
      the Alternate Consideration. If holders of Common Stock are given any choice
      as
      to the securities, cash or property to be received in a Fundamental Transaction,
      then the Holder shall be given the same choice as to the Alternate Consideration
      it receives upon any exercise of this Warrant following such Fundamental
      Transaction. To the extent necessary to effectuate the foregoing provisions,
      any
      successor to the Company or surviving entity in such Fundamental Transaction
      shall issue to the Holder a new warrant consistent with the foregoing provisions
      and evidencing the Holder’s right to exercise such warrant into Alternate
      Consideration. The terms of any agreement pursuant to which a Fundamental
      Transaction is effected shall include terms requiring any such successor or
      surviving entity to comply with the provisions of this Section 3(d) and insuring
      that this Warrant (or any such replacement security) will be similarly adjusted
      upon any subsequent transaction analogous to a Fundamental
      Transaction.

     

    
      
        
        

      

      
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    e) 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.

     

    f) Notice
      to Holders.
      

     

    i. Adjustment
      to Exercise Price.
      Whenever the Exercise Price is adjusted pursuant to this Section 3, the Company
      shall promptly mail to each Holder a notice setting forth the Exercise Price
      after such adjustment and setting forth a brief statement of the facts requiring
      such adjustment. If the Company issues a variable rate security, despite the
      prohibition thereon in the Purchase Agreement, the Company shall be deemed
      to
      have issued Common Stock or Common Stock Equivalents at the lowest possible
      conversion or exercise price at which such securities may be converted or
      exercised in the case of a Variable Rate Transaction (as defined in the Purchase
      Agreement).

     

    ii. Notice
      to Allow Exercise by Holder.
      If (A)
      the Company shall declare a dividend (or any other distribution) 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 calendar days prior to the applicable
      record or effective date hereinafter specified, a notice stating (x) the date
      on
      which a record is to be taken for the purpose of such dividend, distribution,
      redemption, rights or warrants, or if a record is not to be taken, the date
      as
      of which the holders of the Common Stock of record to be entitled to such
      dividend, distributions, redemption, rights or warrants are to be determined
      or
      (y) the date on which such reclassification, consolidation, merger, sale,
      transfer or share exchange is expected to become effective or close, and the
      date as of which it is expected that holders of the Common Stock of record
      shall
      be entitled to exchange their shares of the Common Stock for securities, cash
      or
      other property deliverable upon such reclassification, consolidation, merger,
      sale, transfer or share exchange; provided,
      that
      the failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice. The Holder is entitled to exercise this Warrant during the
      20-day period commencing on the date of such notice to the effective date of
      the
      event triggering such notice.

     

    
      
        
        

      

      
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    g) Exempt
      Adjustments.
      Notwithstanding anything to the contrary herein, no adjustment shall be made
      hereunder in connection with an Exempt Adjustment.

     

    Section
      3. Transfer
      of Warrant.

     

    a) Transferability.
      Subject
      to compliance with any applicable securities laws, the consent of the Company
      (other than in the event of a transfer to a financial investor) which consent
      shall not be unreasonably withheld, this Warrant and all rights hereunder are
      transferable, in whole or in part, upon surrender of this Warrant at the
      principal office of the Company, 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 3(a), as to any transfer which may be involved in such division or
      combination, the Company shall execute and deliver a new Warrant or Warrants
      in
      exchange for the Warrant or Warrants to be divided or combined in accordance
      with such notice.

     

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

     

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

     

    
      
        
        

      

      
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    Section
      4. Miscellaneous.

     

    a) Title
      to Warrant.
      Prior
      to the Termination Date and subject to compliance with applicable laws and
      Section 3 of this Warrant, this Warrant and all rights hereunder are
      transferable, in whole or in part, at the office or agency of the Company by
      the
      Holder in person or by duly authorized attorney, upon surrender of this Warrant
      together with the Assignment Form annexed hereto properly endorsed. The
      transferee shall sign an investment letter in form and substance reasonably
      satisfactory to the Company.

     

    b) 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. Upon the surrender
      of
      this Warrant and the payment of the aggregate Exercise Price (or by means of
      a
      cashless exercise), the Warrant Shares so purchased shall be and be deemed
      to be
      issued to such Holder as the record owner of such shares as of the close of
      business on the later of the date of such surrender or payment.

     

    c) 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.

     

    d) 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 be a Saturday, Sunday or a legal holiday,
      then such action may be taken or such right may be exercised on the next
      succeeding day not a Saturday, Sunday or legal holiday.

     

    e) Authorized
      Shares.
      

     

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

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    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 certificate 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.

     

    f) 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.

     

    g) 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.

     

    h) Nonwaiver
      and Expenses.
      No
      course of dealing or any delay or failure to exercise any right hereunder on
      the
      part of Holder shall operate as a waiver of such right or otherwise prejudice
      Holder’s rights, powers or remedies, notwithstanding the fact that all rights
      hereunder terminate on the Termination Date. If the Company willfully and
      knowingly fails to comply with any provision of this Warrant, which results
      in
      any material damages to the Holder, the Company shall pay to Holder such amounts
      as shall be sufficient to cover any costs and expenses including, but not
      limited to, reasonable attorneys’ fees, including those of appellate
      proceedings, incurred by Holder in collecting any amounts due pursuant hereto
      or
      in otherwise enforcing any of its rights, powers or remedies
      hereunder.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    i) 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.

     

    j) Limitation
      of Liability.
      No
      provision hereof, in the absence of any affirmative action by Holder to exercise
      this Warrant or 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.

     

    k) Remedies.
      Holder,
      in addition to being entitled to exercise all rights granted by law, including
      recovery of damages, will be entitled to specific performance of its rights
      under this Warrant. The Company agrees that monetary damages would not be
      adequate compensation for any loss incurred by reason of a breach by it of
      the
      provisions of this Warrant and hereby agrees to waive the defense in any action
      for specific performance that a remedy at law would be adequate.

     

    l) 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.

     

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

     

    n) 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.

     

    o) 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.

     

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

     

    
      
        
        

      

      
        11

        
          

        

      

       

    

     

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

     

    
      	 Dated:
              November ______, 2006	 	 
	 	 
	 	SUB-URBAN
              BRANDS, INC. 
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title:

    

     

    
      
        
        

      

      
        12

        
          

        

      

       

    

     

    NOTICE
      OF EXERCISE

    

    TO: SUB-URBAN
      BRANDS, 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):

     

    o
      in lawful money of the
      United States; or

     

    o
      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:

    

    _______________________________

     

    _______________________________

     

    _______________________________

    

    (4)
      Accredited
      Investor.
      The
      undersigned is an “accredited investor” as defined in Regulation D promulgated
      under the Securities Act of 1933, as amended.

    

    [SIGNATURE
      OF HOLDER]

     

    Name
      of
      Investing Entity:
      ____________________________________________________________________________________________

    Signature
      of Authorized Signatory of Investing Entity:
      ______________________________________________________________________

    Name
      of
      Authorized Signatory:
      ________________________________________________________________________________________

    Title
      of
      Authorized Signatory:
      _________________________________________________________________________________________

    Date:
      ____________________________________________________________________________________________________________

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    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, 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.[GRAPHIC OMITTED]

--------------------------------------------------------------------------------

                            PLACEMENT AGENT AGREEMENT

This agreement (the  "Agreement"),  made as of this 17th day of April,  2006, by
and between Manaris Corporation, a Nevada corporation, (the "Company"), with its
principal  place of  business  at 1155  Rene-Levesque  Blvd.  West  Suite  2720,
Montreal A8 H3B 2K8 and MIDTOWN  PARTNERS & CO.,  LLC, (the  "Placement  Agent",
"Midtown" or "Midtown Partners),  a Florida limited liability company,  with its
principal  place of business at 4902  Eisenhower  Boulevard,  Suite 185,  Tampa,
Florida 33634,  confirms the understanding and agreement between the Company and
the Placement Agent as follows:

                                    SECTION I

         The  Company  hereby  engages  the  Placement  Agent  as the  Company's
exclusive placement agent in connection with a proposed private placement in the
United States (the "Offering") of up to five million dollars  (US$5,000,000)  of
the Company's securities (the "Financing").  The Offering will be made to solely
"accredited investors" (the "Accredited Investors"),  as such term is defined in
Rule 501(a) of Regulation D ("Regulation D") promulgated under the United States
Securities  Act of 1933,  as amended  (the  "Securities  Act"),  pursuant  to an
exemption from registration  under applicable  federal and state securities laws
available  under Rule 506 of  Regulation D and in  accordance  with the terms of
this  Agreement.  The terms and conditions of the Financing  shall be similar to
those terms and  provisions  as attached in Exhibit A hereto  subject to a final
term Sheet to be set forth at a later date to be  approved by the  Company.  The
Placement Agent hereby accepts such engagement upon the terms and conditions set
forth in this Agreement. This Agreement shall not give rise to any commitment or
obligation by the Placement Agent to purchase any of the Financing or, except as
set forth herein, to find purchasers for the Financing.

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

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

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

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

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

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

<PAGE>

                                   SECTION II

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

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

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

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

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

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

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

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

                                   SECTION III

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

                                   SECTION IV

      The Company hereby represents, warrants and agrees as follows:

      (a) This  Agreement  has been  authorized,  executed and  delivered by the
Company and, when executed by the Placement  Agent will constitute the valid and
binding agreement of the Company  enforceable  against the Company in accordance
with its terms,  except as  enforcement  thereof  may be limited by  bankruptcy,
insolvency  or  reorganization,  moratorium or other similar laws relating to or
affecting creditors' rights generally or by general equitable principles.

<PAGE>

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

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

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

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

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

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

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

                                    SECTION V

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

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

<PAGE>

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

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

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

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

                                   SECTION VI

      (a) The term of this  Agreement  shall  commence on the date first written
above and shall  expire  the  earlier  of  thirty  (30) days  after the date the
Company (1) provides the Placement Agent with requested due diligence  materials
and (2) the Company and the  Placement  Agent  mutually  agree that  information
documents  (including,  but not limited to: a business plan;  executive summary;
three-year  historical  income  statement,  statement of cash flows, and balance
sheet;  five-year  projected  financial  statements;  use of proceeds statement;
investor presentation;  valuation analysis),  to be provided and approved by the
Company,  are  ready  for  presentation  to the  Placement  Agent's  network  of
potential financing sources or the closing of the Offering, unless terminated in
accordance  with the  provisions  set forth  below,  or  extended  by the mutual
written  consent of the  parties  hereto (the  "Term").  This  Agreement  may be
terminated only:

      (1) By either  party for any  reason at any time upon  thirty  (30)  days'
prior written notice; or

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

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

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

      (3) By mutual agreement of the parties.

                                   SECTION VII

      If at any time during the twelve (12) months  following the termination of
this Agreement the Company  conducts a Qualified  Offering,  the Placement Agent
shall (1) be entitled to receive commissions and fees for subscriptions received
or solicited by the Placement Agent for the Company's securities pursuant to the
terms and conditions of this Agreement,  and (2) be entitled to the compensation
and fees as set  forth  in  Section  VIII of this  Agreement  for any  Qualified
Financing  received by the Company.  Any  compensation  or fees paid pursuant to
Section VIII below shall relate only to the securities  initially  issued by the
Company and not the underlying  securities,  unless  otherwise  agreed to by the
Company.

<PAGE>

      "Qualified  Offering"  shall mean any  securities  issued by the  Company,
other  than:  (1) the Units,  the  Warrants,  the  Shares or the  common  shares
underlying  the  Warrants  issued  pursuant to the terms and  conditions  of the
Offering;  (2) common shares,  options or other rights to purchase common shares
issued or granted to  employees,  officers,  directors  and  consultants  of the
Company  pursuant to one or more employee stock plans or agreements  approved by
the  Company's  board of  directors;  (3)  securities  of the Company  issued or
issuable to financial  institutions  or lessors in  connection  with real estate
leases,   commercial  credit  arrangements,   equipment  financings  or  similar
transactions  approved by the Company's board of directors,  including,  but not
limited to, equipment leases or bank lines of credit; (4) securities issued as a
dividend   or   distribution   on,  or  in   connection   with  a  split  of  or
recapitalization  of, any of the capital  stock of the Company;  (5)  securities
issued by the Company pursuant to strategic partnership,  joint venture or other
similar  arrangements  approved by the  Company's  board of directors  where the
primary  purpose of the  arrangement is not to raise capital;  (6) securities of
the Company  issued  pursuant to a registration  statement  filed by the Company
under the Securities  Act; (7) securities  issued by the Company  pursuant to an
acquisition of another corporation or other entity by the Corporation by merger,
purchase of all or  substantially  all of the capital stock or assets,  or other
reorganization;  or (8) securities of the Company  issued  pursuant to currently
outstanding  options,  warrants  or other  rights to acquire  securities  of the
Company.

      "Qualified  Financing"  shall mean an  investment  from a person after the
termination of this Agreement that directly  results from the Placement  Agent's
performance of the Services hereunder during the Term of this Agreement (for the
avoidance of doubt this shall mean any  solicitation of a potential  investor or
an  introduction  of a potential  investor to the Company by the Placement Agent
related to the Offering during the Term of this Agreement).  The Placement Agent
agrees to provide to the Company  within ten (10) days after the  termination of
this  Agreement  (the  "Delivery  Deadline") a list of all persons  solicited on
behalf of the  Company  or  introduced  to the  Company by the  Placement  Agent
related to the  Offering  (the  "Solicitation  List") to assist  the  parties in
making a later  determination as to whether a Qualified  Financing has occurred.
If the Solicitation  List is not provided to the Company prior to the expiration
of the Delivery  Deadline,  the Company's  obligation to pay any  commissions or
fees  related  to a  Qualified  Financing  pursuant  to this  Section  VII shall
immediately  terminate.  For  purposes of this  Agreement,  receipt of Qualified
Financing  shall be  deemed to be  received  by the  Company  on the date that a
definitive  agreement  regarding  the  Qualified  Financing  is  executed by the
Company and the party providing such financing.  The  compensation or fees shall
become  payable to the Placement  Agent upon the date that the Company  receives
the proceeds of the Qualified Financing.

      Notwithstanding  anything  to the  contrary,  if the  Company  conducts  a
Qualified  Offering  during the twelve (12) months  following the termination of
this Agreement,  it shall not be obligated to accept any subscriptions  received
by the Placement Agent or any Qualified  Financing by virtue of this Section VII
and the Company reserves the right to accept or reject any such subscriptions or
Qualified Financing in whole or in part.

                                  SECTION VIII

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

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

      1) Pay to the Placement  Agent in US dollars via wire from the  attorney's
escrow at closing an amount equal to nine percent (9%) of the  principal  amount
of the Financing  purchased by the Placement  Agent  Investors  (the  "Financing
Fee")  for the first up to three  million  dollars  ($3m),  seven  percent  (7%)
thereafter and pay to the Placement  Agent nine percent (9%) on the execution of
any Warrants purchased by the Investors.

<PAGE>

      2) On each closing date of a Financing on which aggregate consideration is
paid or becomes  payable to the Company for its Equity  Securities,  the Company
shall  issue to the  Placement  Agent or its  permitted  assigns  warrants  (the
"Warrants") to purchase such number of shares of the common stock of the Company
equal to eight  and one  quarter  percent  (8 1/4%) of the  aggregate  number of
shares of common stock of the Company  issued and issuable by the Company  under
and in connection with the  Financings.  The Warrants shall have a five (5) year
term and shall provide for cashless exercise (even if the Purchasers do not have
such right), if the Warrants are not registered within one year of Closing,  and
have terms and conditions identical to the Warrants purchased by the Purchasers,
including, without limitation, anti-dilution and full ratchet provisions to take
into account any issuance of additional shares of common stock as a result of an
adjustment  to the  Securities  or the  shares of common  stock  underlying  the
Securities.  The Warrants  shall be  exercisable  after the date of issuance and
shall  expire  five (5)  years  after  the date of  issuance,  unless  otherwise
extended by the Company.  The Warrants shall include  anti-dilution  protection,
including protection against issuances of securities at prices (or with exercise
prices, in the case of warrants,  options or rights) below the exercise price of
the Warrants.  The Warrants  shall not be callable or  redeemable.  The Warrants
shall also piggyback  registration  rights.  The Warrants shall be  transferable
within MIDTOWN PARTNERS, at the Placement Agent's discretion.

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

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

      4) The Company  agrees to pay one percent (1%) of the principal  amount of
the Offering  purchased by the Placement Agent  Investors (the  "Non-accountable
Fee") which will be used to pay Placement Agent expenses  including fees such as
its legal fees, entertainment expenses, travel, etc.

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

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

<PAGE>

                                   SECTION IX

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

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

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

                                   SECTION X

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

                                   SECTION XI

Governing  Law. The subject  matter of this  Agreement  shall be governed by and
construed in accordance with the laws of the State of Florida (without reference
to its choice of law  principles),  and to the exclusion of the law of any other
forum,  without  regard  to the  jurisdiction  in which any  action  or  special
proceeding may be instituted. EACH PARTY HERETO AGREES TO SUBMIT TO THE PERSONAL
JURISDICTION  AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN PALM BEACH
COUNTY,  FLORIDA FOR  RESOLUTION  OF ALL DISPUTES  ARISING OUT OF, IN CONNECTION
WITH, OR BY REASON OF THE INTERPRETATION,  CONSTRUCTION, AND ENFORCEMENT OF THIS
AGREEMENT,  AND  HEREBY  WAIVES THE CLAIM OR DEFENSE  THEREIN  THAT SUCH  COURTS
CONSTITUTE AN INCONVENIENT  FORUM. AS A MATERIAL  INDUCEMENT FOR THIS AGREEMENT,
EACH  PARTY  SPECIFICALLY  WAIVES  THE  RIGHT TO TRIAL BY JURY OF ANY  ISSUES SO
TRIABLE.  If it becomes  necessary  for any party to  institute  legal action to
enforce the terms and conditions of this Agreement,  the prevailing party may be
awarded reasonable attorneys fees, expenses and costs.

<PAGE>

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

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

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

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

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

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

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

<PAGE>

      Non-Circumvention.   The  Company   hereby   irrevocably   agrees  not  to
circumvent,  avoid,  bypass, or obviate,  directly or indirectly,  the intent of
this Agreement.  The Company agrees not to accept any business  opportunity from
any third party to whom PLACEMENT  AGENT  introduces to the Company  without the
consent of PLACEMENT AGENT, unless for each business opportunity accepted by the
Company from a third party  introduced by PLACEMENT  AGENT, the Company remits a
term sheet and then a contract which defines a mutually  agreeable  compensation
structure for  PLACEMENT  AGENT.  In addition,  the Company shall not work with,
negotiate  with or enter into any equity linked  financing  whatsoever  with any
Investor, Consultant or Placement Agent without Midtown's prior written consent.
If the Company raises capital  through in any equity  offering or sale or equity
linked  instrument while engaged with Midtown as the exclusive  Placement Agent,
the Company  shall pay to Midtown all of its fees in Section  VIII,  even if the
Placement Agent has provided no assistance whatsoever in raising such capital.

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

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

      If the  foregoing  correctly  sets  forth the  understanding  between  the
Placement Agent and the Company,  please so indicate in the space provided below
for that purpose.  The undersigned  parties hereto have caused this Agreement to
be duly  executed by their  authorized  representatives,  pursuant to  corporate
board approval and intend to be legally bound.

   Manaris Corporation                      MIDTOWN PARTNERS & CO., LLC.

  By: /s/ John Fraser                       By: /s/ Bruce Jordan
      ---------------                           ----------------

  John Fraser, President and                Bruce Jordan, President
  Chief Executive Officer

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