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Unassociated Document

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (this "Agreement")
      is
      made and entered into as of February 8, 2007, by and among General Components,
      Inc., a Nevada corporation (the "Company"),
      and
      the purchasers listed on Schedule
      I
      hereto
      (the "Purchasers").
      

    

    This
      Agreement is being entered into pursuant to the Subscription
      Agreement dated
      as
      of the date hereof among the Company and the Purchasers (the "Subscription
      Agreement"),
      the
      terms of certain convertible notes (the “Convertible
      Notes”)
      aggregating $6,000,000 in principal amount made by the Company in favor of
      the
      holders of such Convertible Notes named on Schedule
      II
      hereto
      (the “Converting
      Purchasers”)
      and
      the terms of the September Convertible Notes, as defined below.

    

    The
      Company and the Holders hereby agree as follows:

    

    1. Definitions.

    

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

    

    "Advice"
      shall
      have meaning set forth in Section 3(m).

    

    "Affiliate"
      means,
      with respect to any Person, any other Person that directly or indirectly
      controls or is controlled by or under common control with such Person. For
      the
      purposes of this definition, "control,"
      when
      used with respect to any Person, means the possession, direct or indirect,
      of
      the power to direct or cause the direction of the management and policies of
      such Person, whether through the ownership of voting securities, by contract
      or
      otherwise; and the terms of "affiliated,"
      "controlling"
      and
      "controlled"
      have
      meanings correlative to the foregoing.

    

    "Board"
      shall
      have meaning set forth in Section 3(n).

    

    "Business
      Day"
      means
      any day except Saturday, Sunday and any day which shall be a legal holiday
      or a
      day on which banking institutions in the State of New York generally are
      authorized or required by law or other government actions to close.

    

    "Commission"
      means
      the Securities and Exchange Commission.

    

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

    

    "Effectiveness
      Date"
      means
      with respect to the Registration Statement (A) the one hundred twentieth
      (120th)
      day
      following the Stock Split Date (or in the event the Registration Statement
      receives a “full review” by the Commission, the one hundred eightieth
      (180th)
      day
      following the Stock Split Date);
      provided that,
      if the Effectiveness Date falls on a Saturday,
      Sunday or any other day which shall be a legal holiday or a day on which the
      Commission is authorized or required by law or other government actions to
      close, the Effectiveness Date shall be the following Business Day.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    

    "Effectiveness
      Period"
      shall
      have the meaning set forth in Section 2.

    

    "Event"
      shall
      have the meaning set forth in Section 7(d).

    

    "Event
      Date"
      shall
      have the meaning set forth in Section 7(d).

    

    "Exchange
      Act"
      means
      the Securities Exchange Act of 1934, as amended.

    

    "Filing
      Date"
      means
      the sixtieth (60th)
      calendar day following the Stock Split Date; provided that,
      if the Filing Date falls on a Saturday,
      Sunday or any other day which shall be a legal holiday or a day on which the
      Commission is authorized or required by law or other government actions to
      close, the Filing Date shall be the following Business Day.

    

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

    

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

    

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

     

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

    

    "Person"
      means
      an individual or a corporation, partnership, trust, incorporated or
      unincorporated association, joint venture, limited liability company, joint
      stock company, government (or an agency or political subdivision thereof) or
      other entity of any kind.

    

    "Preferred
      Shares"
      means
      the shares of the Company’s Series B Preferred Stock issued to the Purchasers
      pursuant to the Subscription Agreement and issued to the Converting Shareholders
      pursuant to the automatic conversion of the Convertible Notes upon the closing
      of the transactions contemplated by the Subscription Agreement.

    

    "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 the 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 the Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference in such
      Prospectus.

    
      
         

      

      
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    "Registrable
      Securities"
      means
      (i) 150% of the number of shares of Common Stock issuable upon conversion of
      the
      Preferred Shares, (ii) 150% of the number of shares of Common Stock that may
      be
      issued as payment of dividends on the Preferred Shares during the first three
      years following the issuance thereof and calculated with reference to the Market
      Price of the Common Stock on the twentieth business day preceding the Filing
      Date, (iii) the number of shares issuable upon exercise of the Warrants, and
      (iv) the number of shares issuable upon conversion of the September Convertible
      Notes.

    

    "Registration
      Statement"
      means
      the registration statements and any additional registration statements
      contemplated by Section 2, including (in each case) the Prospectus, amendments
      and supplements to such registration statement or Prospectus, including pre-
      and
      post-effective amendments, all exhibits thereto, and all material 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
      158"
      means
      Rule 158 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.

    

    "Rule
      415 Interpretative Position"
      means
      the then-current interpretation of the staff of the SEC regarding the
      availability of Rule 415 for continuous or delayed offerings of securities
      for
      the account of selling securityholders.

    

    "Rule
      424"
      means
      Rule 424 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.

    

    "SEC"
      shall have the meaning set forth in Section 2(a).

    

    "Securities
      Act"
      means
      the Securities Act of 1933, as amended.

    

    "September
      Convertible Notes"
      means
      the $165,000 aggregate principal amount of secured convertible notes issued
      by
      the Company on September 5, 2006 in favor of the holders of such notes named
      on
      Schedule III hereto.

    
      
         

      

      
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    "Stock
      Split Date"
      means
      the date on which the Company shall have effected a 1-for-10 reverse split
      of
      its Common Stock.

    

    "Subsequent
      Registration Statement"
      shall
      have the meaning set forth in Section 2(b).

    

    "Warrants"
      means
      the warrants to purchase shares of Common Stock issued to the Converting
      Shareholders in connection with their purchase of the Convertible Notes, the
      warrants to purchase 16,375,000 shares of Common Stock issued to Broadband
      Capital Management LLC by the Company on February 8, 2007 and the warrants
      to
      purchase 12,500,000 shares of Common Stock issued to Comtech Global Investments,
      Inc. by the Company on February 8, 2007.

    

    2. Resale
      Registration.

    

    (a) On
      or
      prior to the Filing Date the Company shall prepare and file with the Commission
      a "resale" Registration Statement providing for the resale of the Registrable
      Securities for an offering to be made on a continuous basis pursuant to Rule
      415; provided,
      that
      the Company shall only be required to register Registrable Securities up to
      an
      amount permitted to be registered by the Securities and Exchange Commission
      (the
“SEC”)
      pursuant to the Rule 415 Interpretative Position. The Registration Statement
      shall be on Form SB-2 (except if the Company is not then eligible to register
      for resale the Registrable Securities on Form SB-2, in which case such
      registration shall be on another appropriate form in accordance with the
      Securities Act and the rules promulgated thereunder). The Company shall (i)
      not
      permit any securities other than the Registrable Securities to be included
      in
      the Registration Statement and (ii) use its best efforts to cause the
      Registration Statement to be declared effective under the Securities Act as
      promptly as possible after the filing thereof, but in any event prior to the
      Effectiveness Date, and to keep such Registration Statement continuously
      effective under the Securities Act until such date as is the earlier of (x)
      the
      date when all Registrable Securities covered by such Registration Statement
      have
      been sold or (y) the date on which the Registrable Securities may be sold
      without any restriction pursuant to Rule 144(k) as determined by the counsel
      to
      the Company pursuant to a written opinion letter, addressed to the Company's
      transfer agent to such effect (the "Effectiveness
      Period").
      In
      the event any Registrable Securities are excluded from such Registration
      Statement due to the Rule 415 Interpretative Position, the Registrable
      Securities to be excluded shall be allocated among all Holders on a pro rata
      basis based on the total number of Registrable Securities proposed to be
      included in such Registration Statement.

    

    (b) In
      the
      event the Rule 415 Interpretative Position limits the number of Registrable
      Securities that may be registered on the Registration Statement, then as soon
      as
      practicable following the sale of securities or the passage of time (as
      appropriate in view of the Rule 415 Interpretative Position), the Company will
      file one or more additional Registration Statements (each such Registration
      Statement, a “Subsequent
      Registration Statement”)
      registering the Registrable Securities not registered on the Registration
      Statement but in an amount permissable under the Rule 415 Interpretative
      Position, until all of the Registrable Securities have been registered. The
      Filing Date and Effectiveness Date of each such Subsequent Registration
      Statement shall be, respectively, on or prior to the thirtieth (30th)
      and
      sixtieth (60th)
      day
      after the first day such Subsequent Registration Statement may be filed without
      objection by the SEC based on its Rule 415 Interpretative
      Position.

    
      
         

      

      
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    3. Registration
      Procedures.

    

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

    

    (a)
       Prepare
      and file with the Commission on or prior to the Filing Date, a Registration
      Statement on Form SB-2 (or if the Company is not then eligible to register
      for
      resale the Registrable Securities on Form SB-2 such registration shall be on
      another appropriate form in accordance with the Securities Act and the rules
      promulgated thereunder) in accordance with the method or methods of distribution
      thereof as specified in Exhibit A, and use its reasonable best efforts to cause
      the Registration Statement to become effective and remain effective as provided
      herein; provided,
      however,
      that
      not less than five (5) Business Days prior to the filing of the Registration
      Statement or any related Prospectus or any amendment or supplement thereto
      (including any document that would be incorporated therein by reference), the
      Company shall (i) furnish to the Holders, copies of all such documents proposed
      to be filed, which documents (other than those incorporated by reference) will
      be subject to the review of such Holders. The Company shall not file the
      Registration Statement or any such Prospectus or any amendments or supplements
      thereto to which the Holders of a majority of the Registrable Securities shall
      reasonably object in writing within three (3) Business Days of their receipt
      thereof, provided, however, that if the Registration Statement is not filed
      due
      to the objection of the Holders the Company will not be deemed to have breached
      the obligation to file the Registration Statement by the applicable Filing
      Date.

    

    (b) (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to the Registration Statement as may be necessary to keep the
      Registration Statement continuously effective as to the applicable Registrable
      Securities for the Effectiveness Period and prepare and file with the Commission
      such additional Registration Statements as necessary in order to register for
      resale under the Securities Act all of the Registrable Securities; (ii) cause
      the related Prospectus to be amended or supplemented by any required Prospectus
      supplement, and as so supplemented or amended to be filed pursuant to Rule
      424
      (or any similar provisions then in force) promulgated under the Securities
      Act;
      (iii) respond as promptly as possible, but in no event later than ten (10)
      Business Days, to any comments received from the Commission with respect to
      the
      Registration Statement or any amendment thereto and upon request provide the
      Holders copies of all correspondence from and to the Commission relating to
      the
      Registration Statement, provided that the Company need not provide any
      correspondence that contains any material non-public information; and (iv)
      comply in all material respects with the provisions of the Securities Act and
      the Exchange Act with respect to the disposition of all Registrable Securities
      covered by the Registration Statement during the applicable period in accordance
      with the intended methods of disposition by the Holders thereof set forth in
      the
      Registration Statement as so amended or in such Prospectus as so
      supplemented.

    
      
         

      

      
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    (c) Notify
      the Holders of Registrable Securities to be sold (and, in the case of (i)(A)
      below, not less than five (5) days prior to such filing) and (if requested
      by
      any such Person) confirm such notice in writing no later than one (1) Business
      Day following the day (i)(A) when a Prospectus or any Prospectus supplement
      or
      post-effective amendment to the Registration Statement is filed, (B) when the
      Commission notifies the Company whether there will be a "review" of such
      Registration Statement and whenever the Commission comments in writing on such
      Registration Statement and (C) with respect to the Registration Statement or
      any
      post-effective amendment, when the same has become effective; (ii) of any
      request by the Commission or any other Federal or state governmental authority
      for amendments or supplements to the Registration Statement or Prospectus or
      for
      additional information; (iii) of the issuance by the Commission of any stop
      order suspending the effectiveness of the Registration Statement covering any
      or
      all of the Registrable Securities or the initiation of any Proceedings for
      that
      purpose; (iv) of the receipt by the Company of any notification with respect
      to
      the suspension of the qualification or exemption from qualification of any
      of
      the Registrable Securities for sale in any jurisdiction, or the initiation
      or
      threatening of any Proceeding for such purpose; and (v) of the occurrence of
      any
      event that makes any statement made in the 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 the
      Registration Statement, Prospectus or other documents so that, in the case
      of
      the Registration Statement or the Prospectus, as the case may be, it will not
      contain any untrue statement of a material fact or omit to state any material
      fact required to be stated therein or necessary to make the statements therein,
      in the light of the circumstances under which they were made, not
      misleading.

    

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

    

    (e) Furnish
      to each Holder upon request, without charge, at least one conformed copy of
      each
      Registration Statement and each amendment thereto after the filing of such
      documents with the Commission.

    

    (f) Deliver
      to each Holder upon request, without charge, as many copies of the Prospectus
      or
      Prospectuses (including each form of prospectus) and each amendment or
      supplement thereto as such Persons may reasonably request; and the Company
      hereby consents to the use of such Prospectus and each amendment or supplement
      thereto by each of the selling Holders in connection with the offering and
      sale
      of the Registrable Securities covered by such Prospectus and any amendment
      or
      supplement thereto in accordance with the plan of distribution described
      therein.

    
      
         

      

      
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    (g) Prior
      to
      any public offering of Registrable Securities, use its reasonable best efforts
      to register or qualify or cooperate with the selling Holders in connection with
      the registration or qualification (or exemption from such registration or
      qualification) of such Registrable Securities for offer and sale under the
      securities or Blue Sky laws of such jurisdictions within the United States
      as
      any Holder requests in writing, to keep each such registration or qualification
      (or exemption therefrom) effective during the Effectiveness Period and to do
      any
      and all other acts or things necessary or advisable to enable the disposition
      in
      such jurisdictions of the Registrable Securities covered by a Registration
      Statement; provided,
      however,
      that
      the Company shall not be required to qualify generally to do business in any
      jurisdiction where it is not then so qualified or to take any action that would
      subject it to general service of process in any such jurisdiction where it
      is
      not then so subject or subject the Company to any material tax in any such
      jurisdiction where it is not then so subject.

    

    (h) Cooperate
      with the Holders to facilitate the timely preparation and delivery of
      certificates representing Registrable Securities to be sold pursuant to a
      Registration Statement, and to enable such Registrable Securities to be in
      such
      denominations and registered in such names as any Holder may request in writing
      at least two (2) Business Days prior to any sale of Registrable
      Securities.

    

    (i) Upon
      the
      occurrence of any event contemplated by Section 3(c)(vi), as promptly as
      practicable, prepare a supplement or amendment, including a post-effective
      amendment, to the Registration Statement or a supplement to the related
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference, and file any other required document so that, as thereafter
      delivered, neither the Registration Statement nor such Prospectus will contain
      an untrue statement of a material fact or omit to state a material fact required
      to be stated therein or necessary to make the statements therein, in the light
      of the circumstances under which they were made, not misleading.

    

    (j) Use
      its
      reasonable best efforts to cause all Registrable Securities relating to the
      Registration Statement to be listed on the OTC Bulletin Board or
      any
      other securities exchange, quotation system or market, if any, on which similar
      securities issued by the Company are then listed or traded as and when required
      pursuant to the Subscription Agreement.

    

    (k) Comply
      in
      all material respects with all applicable rules and regulations of the
      Commission and make generally available to its security holders earning
      statements satisfying the provisions of Section 11(a) of the Securities Act
      and
      Rule 158 not later than 45 days after the end of any 12-month period (or 90
      days
      after the end of any 12-month period if such period is a fiscal year) commencing
      on the first day of the first fiscal quarter of the Company after the effective
      date of the Registration Statement, which statement shall conform to the
      requirements of Rule 158.

    

     

    
      
         

      

      
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    (l) The
      Company may require each selling Holder to furnish to the Company information
      regarding such Holder and the distribution of such Registrable Securities as
      is
      required to be disclosed in the Registration Statement, and the Company may
      exclude from such registration the Registrable Securities of any such Holder
      who
      fails to furnish such information within five days after receiving such
      request.

    
 

    Each
      Holder covenants and agrees that (i) it will not sell any Registrable Securities
      under the Registration Statement until it has received copies of the Prospectus
      as then amended or supplemented as contemplated in Section 3(g) and notice
      from
      the Company that such Registration Statement and any post-effective amendments
      thereto have become effective as contemplated by Section 3(c) and (ii) it and
      its officers, directors or Affiliates, if any, will comply with the prospectus
      delivery requirements of the Securities Act as applicable to them in connection
      with sales of Registrable Securities pursuant to the Registration
      Statement.

    

    Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of any event of the
      kind
      described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v), or 3(m), such
      Holder will forthwith discontinue disposition of such Registrable Securities
      under the Registration Statement until such Holder's receipt of the copies
      of
      the supplemented Prospectus and/or amended Registration Statement contemplated
      by Section 3(i), 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.

    

    (m) If
      (i)
      there is material non-public information regarding the Company which the
      Company's Board of Directors (the "Board")
      determines not to be in the Company's best interest to disclose and which the
      Company is not otherwise required to disclose, (ii) there is a significant
      business opportunity (including, but not limited to, the acquisition or
      disposition of assets (other than in the ordinary course of business) or any
      merger, consolidation, tender offer or other similar transaction) available
      to
      the Company which the Board determines not to be in the Company's best interest
      to disclose, or (iii) the Company is required to file a post-effective amendment
      to the Registration Statement to incorporate the Company’s quarterly and annual
      reports and audited financial statements on Forms 10-QSB and 10-KSB, then the
      Company may on written notice to the Purchasers and the Converting Shareholders
      (which notice will not disclose the content of any material non-public
      information and will indicate the date of the beginning and end of the intended
      period of suspension, if known) (x) postpone or suspend filing of a registration
      statement for a period not to exceed twenty (20) consecutive days or (y)
      postpone or suspend effectiveness of a registration statement for a period
      not
      to exceed twenty (20) consecutive days; provided that the Company may not
      postpone or suspend effectiveness of a registration statement under this Section
      3(n) for more than sixty (60) days in the aggregate during any three hundred
      sixty (360) day period; provided,
      however,
      that no
      such postponement or suspension shall be permitted for consecutive twenty (20)
      day periods arising out of the same set of facts, circumstances or transactions.
      The suspension and notice thereof described in this Section 3(m) shall be held
      in strictest confidence and shall not be disclosed by the Purchasers or the
      Converting Shareholders.

    

     

    
      
         

      

      
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    4. Registration
      Expenses.

    

    All
      fees
      and expenses incident to the performance of or compliance with this Agreement
      by
      the Company, except as and to the extent specified in this Section 4, shall
      be
      borne by the Company whether or not the Registration Statement is filed or
      becomes effective and whether or not any Registrable Securities are sold
      pursuant to the Registration Statement. The fees and expenses referred to in
      the
      foregoing sentence shall include, without limitation, (i) all registration
      and
      filing fees (including, without limitation, fees and expenses (A) with respect
      to filings required to be made with the OTC Bulletin Board and
      each
      other securities exchange or market on which Registrable Securities are required
      hereunder to be listed, if any (B) with respect to filing fees required to
      be
      paid to the National Association of Securities Dealers, Inc. and the NASD
      Regulation, Inc. and (C) in compliance with state securities or Blue Sky laws
      (including, without limitation, reasonable fees and disbursements of counsel
      for
      the Holders in connection with Blue Sky qualifications of the Registrable
      Securities and determination of the eligibility of the Registrable Securities
      for investment under the laws of such jurisdictions as the Holders of a majority
      of Registrable Securities may reasonably designate)), (ii) printing expenses
      (including, without limitation, expenses of printing certificates for
      Registrable Securities and of printing prospectuses if the printing of
      prospectuses is requested by the holders of a majority of the Registrable
      Securities included in the Registration Statement), (iii) messenger, telephone
      and delivery expenses, (iv) fees and disbursements of counsel for the Company
      (v) Securities Act liability insurance, if the Company so desires such
      insurance, and (vi) fees and expenses of all other Persons retained by the
      Company in connection with the consummation of the transactions contemplated
      by
      this Agreement, including, without limitation, the Company's independent public
      accountants (including the expenses of any comfort letters or costs associated
      with the delivery by independent public accountants of a comfort letter or
      comfort letters). In addition, the Company shall be responsible for all of
      its
      internal expenses incurred in connection with the consummation of the
      transactions contemplated by this Agreement (including, without limitation,
      all
      salaries and expenses of its officers and employees performing legal or
      accounting duties), the expense of any annual audit, the fees and expenses
      incurred in connection with the listing of the Registrable Securities on any
      securities exchange as required hereunder.

    

    5. Indemnification.

    

    (a) Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, agents, brokers (including
      brokers who offer and sell Registrable Securities as principal as a result
      of a
      pledge or any failure to perform under a margin call of Common Stock),
      investment advisors and employees of each of them, each Person who controls
      any
      such Holder (within the meaning of Section 15 of the Securities Act or Section
      20 of the Exchange Act) and the officers, directors, agents and employees of
      each such controlling Person, to the fullest extent permitted by applicable
      law,
      from and against any and all losses, claims, damages, liabilities, costs
      (including, without limitation, costs of preparation and attorneys' fees) and
      expenses (collectively, "Losses")
      (as
      determined by a court of competent jurisdiction in a final judgment not subject
      to appeal or review), as incurred, arising out of or relating to any untrue
      or
      alleged untrue statement of a material fact contained in the Registration
      Statement, any Prospectus or any form of prospectus or in any amendment or
      supplement thereto or in any preliminary prospectus, or arising out of or
      relating to any omission or alleged omission of a material fact required to
      be
      stated therein or necessary to make the statements therein (in the case of
      any
      Prospectus or form of prospectus or supplement thereto, in the light of the
      circumstances under which they were made) not misleading, except to the extent,
      but only to the extent, that (i) such untrue statements or omissions are based
      solely upon information regarding such Holder or such other Indemnified Party
      furnished in writing to the Company by such Holder expressly for use therein
      and
      (ii) that the foregoing indemnity agreement is subject to the condition that,
      insofar as it relates to any untrue statement, allegedly untrue statement,
      omission or alleged omission made in any preliminary prospectus but eliminated
      or remedied in the final prospectus (filed pursuant to Rule 424 of the
      Securities Act), such indemnity agreement shall not inure to the benefit of
      any
      Holder, underwriter, broker or other Person acting on behalf of holders of
      the
      Registrable Securities, from whom the Person asserting any loss, claim, damage,
      liability or expense purchased the Registrable Securities which are the subject
      thereof, if a copy of such final prospectus had been made available to such
      Person and such Holder, underwriter, broker or other Person acting on behalf
      of
      holders of the Registrable Securities and such final prospectus was not
      delivered to such Person with or prior to the written confirmation of the sale
      of such Registrable Securities to such Person. The Company shall notify the
      Holders promptly of the institution, threat or assertion of any Proceeding
      of
      which the Company is aware in connection with the transactions contemplated
      by
      this Agreement.

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    

    

    (b) Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, notwithstanding any termination of
      this
      Agreement, indemnify and hold harmless the Company, its directors, officers,
      agents and employees, each Person who controls the Company (within the meaning
      of Section 15 of the Securities Act and Section 20 of the Exchange Act), and
      the
      directors, officers, agents and employees of such controlling Persons, to the
      fullest extent permitted by applicable law, from and against all Losses (as
      determined by a court of competent jurisdiction in a final judgment not subject
      to appeal or review), as incurred, arising solely out of or based solely upon
      any untrue statement of a material fact contained in the Registration Statement,
      any Prospectus, or any form of prospectus, or arising solely out of or based
      solely upon any omission of a material fact required to be stated therein or
      necessary to make the statements therein (in the case of any Prospectus or
      form
      of prospectus or supplement thereto, in the light of the circumstances under
      which they were made) not misleading, to the extent, but only to the extent,
      that such untrue statement or omission is contained in any information so
      furnished by such Holder or other Indemnifying Party (as described below) to
      the
      Company specifically for inclusion in the Registration Statement or such
      Prospectus. Notwithstanding anything to the contrary contained herein, each
      Holder shall be liable under this Section 5(b) for only that amount as does
      not
      exceed the net proceeds to such Holder as a result of the sale of Registrable
      Securities pursuant to such Registration Statement.

    

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    
 

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

     

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

    

    All
      fees
      and expenses of the Indemnified Party (including reasonable fees and expenses
      to
      the extent incurred in connection with investigating or preparing to defend
      such
      Proceeding in a manner not inconsistent with this Section) shall be paid to
      the
      Indemnified Party, as incurred, within ten (10) Business Days of written notice
      thereof to the Indemnifying Party (regardless of whether it is ultimately
      determined that an Indemnified Party is not entitled to indemnification
      hereunder; provided,
      that the Indemnifying Party may require such Indemnified Party to undertake
      to
      reimburse all such fees and expenses to the extent it is finally judicially
      determined that such Indemnified Party is not entitled to indemnification
      hereunder).

    

    (d) Contribution.
      If a
      claim for indemnification under Section 5(a) or 5(b) is unavailable to an
      Indemnified Party because of a failure or refusal of a governmental authority
      to
      enforce such indemnification in accordance with its terms (by reason of public
      policy or otherwise), then each Indemnifying Party, in lieu of indemnifying
      such
      Indemnified Party, shall contribute to the amount paid or payable by such
      Indemnified Party as a result of such Losses, in such proportion as is
      appropriate to reflect the relative benefits received by the Indemnifying Party
      on the one hand and the Indemnified Party on the other from the offering of
      the
      Warrants. If, but only if, the allocation provided by the foregoing sentence
      is
      not permitted by applicable law, the allocation of contribution shall be made
      in
      such proportion as is appropriate to reflect not only the relative benefits
      referred to in the foregoing sentence but also the relative fault, as
      applicable, of the Indemnifying Party and Indemnified Party in connection with
      the actions, statements or omissions that resulted in such Losses as well as
      any
      other relevant equitable considerations. The relative fault of such Indemnifying
      Party and Indemnified Party shall be determined by reference to, among other
      things, whether any action in question, including any untrue or alleged untrue
      statement of a material fact or omission or alleged omission of a material
      fact,
      has been taken or made by, or relates to information supplied by, such
      Indemnifying Party or Indemnified Party, and the parties'
      relative intent, knowledge, access to information and opportunity to correct
      or
      prevent such action, statement or omission. The amount paid or payable by a
      party as a result of any Losses shall be deemed to include, subject to the
      limitations set forth in Section 5(c), any reasonable attorneys' or other
      reasonable fees or expenses incurred by such party in connection with any
      Proceeding to the extent such party would have been indemnified for such fees
      or
      expenses if the indemnification provided for in this Section was available
      to
      such party in accordance with its terms. In no event shall any selling Holder
      be
      required to contribute an amount under this Section 5(d) in excess of the net
      proceeds received by such Holder upon sale of such Holder’s Registrable
      Securities pursuant to the Registration Statement giving rise to such
      contribution obligation.

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    

    

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph. No Person
      guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
      of
      the Securities Act) shall be entitled to contribution from any Person who was
      not guilty of such fraudulent misrepresentation.

    

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties. Notwithstanding anything to the contrary contained herein, the Holders
      shall be liable under this Section 5(d) for only that amount as does not exceed
      the net proceeds to such Holder as a result of the sale of Registrable
      Securities pursuant to such Registration Statement.

    

    6. Rule
      144.

    

    As
      long
      as any Holder owns any Registrable Securities, Preferred Shares or Warrants,
      if
      the Company is not required to file reports pursuant to Section 13(a) or 15(d)
      of the Exchange Act, it will prepare and furnish to the Holders and make
      publicly available in accordance with Rule 144(c) promulgated under the
      Securities Act annual and quarterly financial statements, together with a
      discussion and analysis of such financial statements in form and substance
      substantially similar to those that would otherwise be required to be included
      in reports required by Section 13(a) or 15(d) of the Exchange Act, as well
      as
      any other information required thereby, in the time period that such filings
      would have been required to have been made under the Exchange Act.

    

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    
      7. Miscellaneous.

      

      (a) Remedies.
        In the
        event of a breach by the Company or by a Holder, of any of their 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.
        The Company and each Holder agree that monetary damages would not
        provide adequate
        compensation for any losses incurred by reason of a breach by it of any of
        the
        provisions of this Agreement and hereby further agrees that, in the event
        of any
        action for specific performance in respect of such breach, it shall waive
        the
        defense that a remedy at law would be adequate.

       

    

    (b) No
      Inconsistent Agreements.
      Neither
      the Company nor any of its subsidiaries has, as of the date hereof entered
      into
      and currently in effect, nor shall the Company or any of its subsidiaries,
      on or
      after the date of this Agreement, enter into any agreement with respect to
      its
      securities that is inconsistent with the rights granted to the Holders in this
      Agreement or otherwise conflicts with the provisions hereof. Without limiting
      the generality of the foregoing, without the written consent of the Holders
      of a
      majority of the then outstanding Registrable Securities, the Company shall
      not
      after the date hereof grant to any Person the right to request the Company
      to
      register any securities of the Company, under the Securities Act unless the
      rights so granted are subject in all respects to the prior rights in full of
      the
      Holders set forth herein, and are not otherwise in conflict with the provisions
      of this Agreement.

    

    (c) No
      Piggyback on Registrations.
      Neither
      the Company nor any of its security holders (other than the Holders in such
      capacity pursuant hereto and the holders of the Convertible Notes) may include
      securities of the Company in the Registration Statement, and the Company shall
      not after the date hereof enter into any agreement providing such right to
      any
      of its securityholders, unless the right so granted is subject in all respects
      to the prior rights in full of the Holders set forth herein, and is not
      otherwise in conflict with the provisions of this Agreement. The Company shall
      not file any other registration statements until the Registration Statement
      required hereunder is declared effective by the Commission, provided that this
      Section 7(c) shall not prohibit the Company from filing amendments to
      registration statements already filed.

    
      

      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

      

      (d) Failure
        to File Registration Statement and Other Events.
        The
        Company and the Holders agree that the Holders will suffer damages if the
        Registration Statement is not filed on or prior to the Filing Date and not
        declared effective by the Commission on or prior to the Effectiveness Date
        and
        maintained in the manner contemplated herein during the Effectiveness Period
        or
        if certain other events occur. The Company and the Holders further agree
        that it
        would not be feasible to ascertain the extent of such damages with precision.
        Accordingly, if (A) the Registration Statement is not filed on or prior to
        the
        Filing Date, or (B) the Registration Statement is not declared effective
        by the
        Commission on or prior to the Effectiveness Date, or (C) the Registration
        Statement is filed with and declared effective by the Commission but thereafter
        ceases to be effective as to all Registrable Securities (other than Warrants)
        at
        any time prior to the expiration of the Effectiveness Period, without being
        succeeded immediately by a subsequent Registration Statement filed with and
        declared effective by the Commission, or (D) the Company has breached Section
        3(m), or (E) trading in the Common Stock shall be suspended or if the Common
        Stock is delisted from the OTC Bulletin Board (or other principal exchange
        on
        which the Common Stock is traded) for any reason for more than three (3)
        Business Days in the aggregate (any such failure or breach being referred
        to as
        an "Event,"
        and
        for purposes of clauses (A) and (B) the date on which such Event occurs,
        or for
        purposes of clause (C) after more than fifteen (15) Business Days, or for
        purposes of clause (E) the date on which such three (3) Business Day period
        is
        exceeded, being referred to as "Event
        Date"),
        the
        Company shall pay an amount as liquidated damages to each Holder in cash
        equal
        to one percent (1.0%) for each calendar month (prorated for shorter periods)
        of
        the Holder’s initial investment in the Preferred Shares, Convertible Notes or
        September Convertible Notes, as the case may be (“Liquidated
        Damages”),
        from
        the Event Date until the applicable Event is cured. Notwithstanding anything
        to
        the contrary in this Section 7(d), if (i) any of the Events described in
        clauses
        (A), (B), or (C) shall have occurred, (ii) on or prior to the applicable
        Event
        Date, the Company shall have exercised its rights under Section 3(m) hereof
        and
        (iii) the postponement or suspension permitted pursuant to such Section 3(m)
        shall remain effective as of such applicable Event Date, then the applicable
        Event Date shall be deemed instead to occur on the second Business Day following
        the termination of such postponement or suspension. Liquidated Damages payable
        by the Company pursuant to this Section 7(d) shall be payable on the first
        (1st)
        business day of each thirty (30) day period following the Event Date.
        Notwithstanding the foregoing, aggregate Liquidated Damages payable by the
        Company pursuant to this Section 7(d) shall not exceed ten percent (10.0%)
        of
        the Holder’s initial investment in the Preferred Shares, Convertible Notes or
        September Convertible Notes, as the case may be.

    

    

    

    (e) 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 three-fourths (3/4) of the Registrable
      Securities outstanding.

    

    (f) Notices.
      Any notice, demand, request, waiver or other communication required or permitted
      to be given hereunder shall be in writing and shall be effective (a) upon hand
      delivery, telecopy or facsimile at the address or number designated below (if
      delivered on a business day during normal business hours where such notice
      is to
      be received), or the first business day following such delivery (if delivered
      other than on a business day during normal business hours where such notice
      is
      to be received) or (b) on the second business day following the date of mailing
      by express courier service, fully prepaid, addressed to such address, or upon
      actual receipt of such mailing, whichever shall first occur. The addresses
      for
      such communications shall be:

     

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    
      	
              If
                to the Company:

            	
              General
                Components, Inc.

              Suite
                1503

              Sino
                Plaza 255-257

              Gloucester
                Road, Causeway Bay

              Hong
                Kong

              Attention:
                Chief Executive Officer

              Tel
                No.: (852) 2975 9809

              Fax
                No.: (852) 2891-9590

            

    

     

    
      	 	 
	
              with
                copies (which shall not constitute notice) to:

            	
              Loeb
                & Loeb LLP

              345
                Park Avenue

              New
                York, New York 10154

              Attention:
                Mitchell S. Nussbaum

              Tel
                No.: (212) 407-4000

              Fax
                No.: (212) 407-4990

            
	 	 
	
              If
                to any Holder:

            	
              At
                the address of such Holder set forth on Exhibit
                A
                to
                this Agreement

            

    

     

    Any
      party
      hereto may from time to time change its address for notices by giving at least
      ten (10) days written notice of such changed address to the other party
      hereto.

    

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

    

    (h) Assignment
      of Registration Rights.
      The
      rights of each Holder hereunder, including the right to have the Company
      register for resale Registrable Securities in accordance with the terms of
      this
      Agreement, shall be automatically assignable by each Holder to any Affiliate
      of
      such Holder or any other Holder or
      Affiliate of any other Holder
      of
      all or a portion of
      the
      Registrable Securities if: (i) the Holder agrees in writing with the transferee
      or assignee to assign such rights, and a copy of such agreement is furnished
      to
      the Company within a reasonable time after such assignment, (ii) the Company
      is,
      within a reasonable time after such transfer or assignment, furnished with
      written notice of (a) the name and address of such transferee or assignee,
      and
      (b) the securities with respect to which such registration rights are being
      transferred or assigned, (iii) following such transfer or assignment the further
      disposition of such securities by the transferee or assignees is restricted
      under the Securities Act and applicable state securities laws, (iv) at or before
      the time the Company receives the written notice contemplated by clause (ii)
      of
      this Section, the transferee or assignee agrees in writing with the Company
      to
      be bound by all of the provisions of this Agreement, and (v) such transfer
      shall
      have been made in accordance with the applicable requirements of the
      Subscription Agreement. In addition, each Holder shall have the right to assign
      its rights hereunder to any other Person with the prior written consent of
      the
      Company, which consent shall not be unreasonably withheld. The rights to
      assignment shall apply to the Holders (and to subsequent) successors and
      assigns. 

    

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    (i) 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.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York, without giving effect to any of the conflicts
      of
      law principles which would result in the application of the substantive law
      of
      another jurisdiction. This Agreement shall not be interpreted or construed
      with
      any presumption against the party causing this Agreement to be drafted. The
      Company and the Holders agree that venue for any dispute arising under this
      Agreement will lie exclusively in the state or federal courts located in New
      York County, New York, and the parties irrevocably waive any right to raise
      forum
      non conveniens
      or any
      other argument that New York is not the proper venue. The Company and the
      Holders irrevocably consent to personal jurisdiction in the state and federal
      courts of the state of New York. The Company and the Holders consent to process
      being served in any such suit, action or proceeding by mailing a copy thereof
      to
      such party at the address in effect for notices to it under this Agreement
      and
      agrees that such service shall constitute good and sufficient service of process
      and notice thereof. Nothing in this Section 7(j) shall affect or limit any
      right
      to serve process in any other manner permitted by law. The Company and the
      Holders hereby agree that the prevailing party in any suit, action or proceeding
      arising out of or relating to the this Agreement or the Subscription Agreement,
      shall be entitled to reimbursement for reasonable legal fees from the
      non-prevailing party. The parties hereby waive all rights to a trial by
      jury.

    

    (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 to be
      invalid, illegal, void or unenforceable in any respect, 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.

    

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

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

    

    (n) Shares
      Held by the Company and its Affiliates.
      Whenever the consent or approval of Holders of a specified percentage of
      Registrable Securities is required hereunder, Registrable Securities held by
      the
      Company or its Affiliates (other than any Holder or transferees or successors
      or
      assigns thereof if such Holder is deemed to be an Affiliate solely by reason
      of
      its holdings of such Registrable Securities) shall not be counted in determining
      whether such consent or approval was given by the Holders of such required
      percentage.

    

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    

    

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Registration Rights Agreement
      to be
      duly executed by its authorized representatives as of the date first indicated
      above.

    

    
      	 	
              GENERAL
                COMPONENTS, INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	
               

            
	 	
               

            	
              Name:
                

            
	 	
               

            	
              Title:
                

            

    

    

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

    Schedule
      I

    List
      of Purchasers

    

    
      	
              C.E.
                Unterberg Towbin 401K PFS Sharing Plan FBO Andrew Arno

            
	
              Michael
                Marrus

            
	
              Joseph
                Reda

            
	
              Andrew
                Arno ACF Cust Matthew Arno

            
	
              Andrew
                Arno ACF Cust Jesse Benjamin Arno

            
	
              CJF
                Investment Trust

            
	
              Michelle
                Jaigobind

            
	
              West
                Street Charitable Foundation

            
	
              Sharon
                Yi Jun Jiang

            
	
              Alan
                and Hildred Wagenheim

            
	
              Stanley
                Raskas

            
	
              Deane
                A. Gilliam

            
	
              Clifford
                W. Chapman Jr.

            
	
              Michael
                Rapoport

            
	
              Matthew
                and Alyssa Skidell

            
	
              Arlene
                Rapoport

            
	
              Richard
                Steinberg

            
	
              Adam
                K. Stern

            
	
              Allan
                Rothstein

            
	
              Norman
                Rothstein

            
	
              Governing
                Dynamics Investment, LLC

            
	
              Susi
                Belli

            
	
              Gilad
                Ottensoser

            
	
              Charles
                W. Chambers

            
	
              Nite
                Capital LP

            
	
              Donald
                Zoltan

            
	
              Doug
                Levine

            
	
              Ramonita
                Ramos-Poggi

            
	
              Cullen
                International Limited

            
	
              Ethan
                Benovitz

            
	
              Daniel
                Saks

            
	
              Jaime
                Hartman

            
	
              Comtech
                Global Investments, Inc.

            
	
              Ashford
                Capital LLC

            
	
              Glen
                Tobias

            
	
              Yang
                Xiang Dong

            
	
              Jeffrey
                Meshel

            
	
              James
                J. Pallotta

            
	
              Josh
                Goldberg

            
	
              Iroquois
                Master Fund Ltd.

            
	
              Kerry
                Propper

            
	
               

            

    

    

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

    

    
      	
              Cornix
                Management LLC

            
	
              Kurt
                Butenhoff

            
	
              Balmore
                S.A.

            
	
              White
                Star LLC

            
	
              Mohammed
                Ibrahim Munshi

            
	
              Nicole
                Kubin

            
	
              Sook
                Hee Chang

            
	
              Longview
                Fund LP

            
	
              Peter
                Lerner

            
	
              Kilmer
                International Investments Limited

            
	
              SAS
                Hyperion LLC

            
	
              Simon
                Wolf

            
	
              Alan
                Gelband

            
	
              Steve
                Mazur

            
	
              William
                M. Denkin

            
	
              Amy
                & Ray Rivers, JT ROS

            
	
              Thomas
                In

            
	
              Ira
                M. Scharaga

            
	
              William
                Grant

            

    

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

    Schedule
      II

    List
      of Converting Purchasers 

    

    Comtech
      Global Investments, Inc.

    Shi
      Guo
      Hua

    Longview
      Fund

    Blooming
      Technology Investments Ltd.

    Berrard
      Holdings Limited Partnership

    Michael
      Rapoport

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

    Schedule
      II

    List
      of
      September Noteholders

     

    Alison
      Winter

    Dora
      Wong

    Lisa
      Bonevento

    Michael
      Ravallo

    Brendan
      C. Rempel

    Nite
      Capital Management, LLC

    

    
      
         

      

      
        -22-SERIES A PREFERRED STOCK PURCHASE AGREEMENT

                             Dated February 7, 2007

                                 by and between

                                  EDWARD KAPLAN

                                       and

                                SEARCHHELP, INC.

<PAGE>

                                TABLE OF CONTENTS
                                                                         Page

ARTICLE I DEFINITIONS.....................................................1
1.1      Definitions......................................................1
1.2      Knowledge........................................................3
1.3      Interpretation...................................................3
ARTICLE II CLOSING; PURCHASE AND SALE.....................................4
2.1      The Closing......................................................4
2.2      Issuance and Delivery of the Purchase Shares.....................4
2.3      The Purchase Price...............................................4
2.4      Delivery of Purchase Price.......................................4
2.5      Use of Proceeds..................................................4
ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY.................4
3.1      Organization; Good Standing......................................4
3.2      Subsidiaries.....................................................5
3.3      Authority; Execution and Delivery; Enforceability................5
3.4      Non-Contravention................................................5
3.5      Corporate Documents..............................................6
3.6      Capitalization; Options..........................................6
3.7      Consents and Approvals...........................................7
3.8      SEC Reports and Financial Statements.............................7
3.9      Litigation and Claims............................................8
3.10     No Finder........................................................Error!
         Bookmark not defined.
3.11     Exempt Offering..................................................8
3.12     Agreements; Action...............................................8
3.13     Related-Party Transactions.......................................Error!
         Bookmark not defined.
3.14     Title to Property and Assets.....................................Error!
         Bookmark not defined.
3.15     Employee Benefit Plans...........................................Error!
         Bookmark not defined.
3.16     Tax Returns, Payments and lections...............................Error!
         Bookmark not defined.
3.17     Insurance........................................................Error!
         Bookmark not defined.
3.18     Disclosure.......................................................8
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE BUYER....................8

<PAGE>

4.1      Organization and Good Standing...................................8
4.2      Corporate Authority; Execution and Delivery; Enforceability......8
4.3      Non-Contravention................................................9
4.4      Consents and Approvals...........................................9
4.5      Litigation and Claims............................................9
4.6      No Finder........................................................9
4.7      Investment Representations.......................................9
4.8      Accredited Investor..............................................10
4.9      Access to Information............................................10
ARTICLE V COVENANTS.......................................................10
5.1      Restrictive Legends..............................................10
5.2      Change in Condition..............................................10
ARTICLE VI CONDITIONS PRECEDENT TO OBLIGATIONS OF THE PARTIES.............10
6.1      Conditions to obligations of the Buyer...........................11
6.2      Conditions to obligations of the Company.........................11
ARTICLE VII MISCELLANEOUS.................................................12
7.1      Survival; Certain Other Matters..................................12
7.2      Further Assurances...............................................12
7.3      Expenses of the Transaction......................................13
7.4      Notices..........................................................13
7.5      No Modification Except in Writing................................14
7.6      Entire Agreement.................................................14
7.7      Severability.....................................................14
7.8      Assignment.......................................................14
7.9      Governing Law; Jurisdiction......................................14
7.10     Captions.........................................................15
7.11     Counterparts.....................................................15
7.12     Delays or Omissions..............................................15

Exhibit A     Certificate of Designations

                                       ii
<PAGE>

                   SERIES A PREFERRED STOCK PURCHASE AGREEMENT

      SERIES A PREFERRED STOCK PURCHASE AGREEMENT ("Agreement"), made and
entered into this 7th day of February, 2007, by and between 1 ("Buyer"), and
SEARCHHELP, INC., a Delaware corporation (the "Company").

                              W I T N E S S E T H:

      WHEREAS, the Buyer desires to purchase and acquire from the Company, and
the Company desires to issue and deliver to the Buyer, an aggregate of 19,084
shares of the Company's Series A Convertible Series A Preferred Stock, par value
$0.0001 ("Series A Preferred Stock"), free and clear of all claims, liens,
options, charges and encumbrances of any kind other than restrictions on
transfer as provided under applicable securities laws ("Liens") and a Warrant to
purchase from Company 47,710 fully paid and non-assessable shares of Common
Stock, $.0001 par value, at the Exercise Price of $0.26 per share (the "Purchase
Shares"), on the terms and subject to the conditions hereinafter set forth; and

      WHEREAS, unless the context otherwise requires, capitalized terms used in
this Agreement shall have the meanings ascribed to such terms in Article I of
this Agreement.

      NOW, THEREFORE, in consideration of the foregoing premises and of the
mutual covenants hereinafter contained, the parties hereto hereby agree as
follows:

                                   ARTICLE I

                                   DEFINITIONS

      1.1 Definitions. As used herein, the following terms shall have the
respective meanings ascribed to them below:

      "Action" has the meaning ascribed to such term in Section 3.9.

      "Affiliate" means, with respect to any specified Person, (i) any other
Person 50% or more of whose outstanding voting securities are directly or
indirectly owned, controlled or held with the power to vote by such specified
Person or (ii) any other Person directly or indirectly controlling, controlled
by or under direct or indirect common control with such specified Person. For
purposes of this definition, the term "control" means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
or policies of a Person by virtue of ownership of voting securities, by contract
or otherwise.

      "Agreement" has the meaning ascribed to such term in the Preamble.

      "Business Day" means any day (other than Saturday or Sunday) on which
banking institutions in the State of New York are not authorized or obligated by
law to close.

      "Buyer" has the meaning ascribed to such term in the Preamble.

<PAGE>

      "Certificate of Designations" shall mean the Certificate of Designations
of the Series A Preferred Stock, attached hereto as Exhibit A.

      "Closing" has the meaning ascribed to such term in Section 2.1.

      "Closing Date" has the meaning ascribed to such term in Section 2.1.

      "Code" shall mean the Internal Revenue Code of 1986, as amended from time
to time, and any successor statute thereto.

      "Common Stock" has the meaning ascribed to such term in Section 3.6.

      "Company" has the meaning ascribed to such term in the Preamble.

      "Company Material Adverse Effect" shall mean any event, condition or
contingency that has had, or is reasonably likely to have, a material adverse
effect on the business, assets, liabilities, results of operations, prospects or
financial condition of the Company and its Subsidiaries, taken as a whole,
provided, however, that a Company Material Adverse Effect shall not include any
such effect resulting from or arising in connection with (a) changes or
conditions generally affecting the industries or segments in which the Company
operates or (b) changes in general economic, market or political conditions.

      "Conversion Shares" has the meaning ascribed to such term in Section
3.6(b).

      "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended
from time to time, and all regulations promulgated thereunder.

      "Financial Statements" has the meaning ascribed to such term in Section
3.8.

      "GAAP" shall mean United States generally accepted accounting principles,
consistently applied.

      "Governmental Authority" shall mean any federal, state, municipal or other
governmental authority, department, commission, board, agency or other
instrumentality.

      "Governmental Rules" shall mean all laws, statutes, rules, regulations,
codes, ordinances, writs, orders or decrees of any Governmental Authority.

      "Lien" has the meaning ascribed to such term in the Preamble.

      "Person" shall mean any individual, corporation, partnership, limited
liability company, limited liability partnership, joint venture, estate, trust,
cooperative, foundation, union, syndicate, league, consortium, coalition,
committee, society, firm, company or other enterprise, association, organization
or other entity or Governmental Authority.

                                       2
<PAGE>

      "Purchase Price" has the meaning ascribed to such term in Section 2.3.

      "Purchase Shares" has the meaning ascribed to such term in the Recitals.

      "SEC" shall mean the Securities and Exchange Commission.

      "SEC Reports" has the meaning ascribed to such term in Section 3.8.

      "Securities Act" shall mean the Securities Act of 1933, as amended from
time to time, and all regulations promulgated thereunder.

      "Series A Preferred Stock" has the meaning ascribed to such term in the
Recitals.

      "Subsidiary" shall mean, when used with respect to any Person, any other
Person, whether incorporated or unincorporated, of which (i) more than fifty
percent of the securities or other ownership interests or (ii) securities or
other interests having by their terms ordinary voting power to elect more than
fifty percent of the board of directors or others performing similar functions
with respect to such corporation or other organization, is directly or
indirectly owned or controlled by such Person or by any one or more of its
Subsidiaries.

      "Survival Period" has the meaning ascribed to such term in Section 8.1.

      "Transaction Documents" shall mean the Certificate of Designations and
those other agreements, certificates and documents entered into or delivered
between the Buyer and the Company related to, ancillary to, or in connection
with this Agreement or the Certificate of Designations.

      "Warrant" shall mean a five-year warrant entitling the holder to purchase
47,710 shares of common stock, par value $0.0001 per share, of the Company (the
"Common Stock") at the Exercise Price of $0.26 per share.

      1.2 Knowledge. As used in the Agreement, "to the Company's knowledge" or
"to the knowledge of the Company" or words of similar import shall mean the
actual knowledge of William J. Bozsnyak, the Chief Executive Officer of the
Company.

      1.3 Interpretation. When a reference is made in this Agreement to a
section, article, paragraph, clause, annex or exhibit, such reference shall be
to a reference to this Agreement unless otherwise clearly indicated to the
contrary. The descriptive article and section headings herein are intended for
convenience of reference only and are not intended to be a part of or to affect
the meaning or interpretation of this Agreement. Whenever the words "include",
"includes" or "including" are used in this Agreement they shall be deemed to be
followed by the words "without limitation." The words "hereof," "herein" and
"herewith" and words of similar import shall, unless otherwise stated, be
construed to refer to this Agreement as a whole and not to any particular
provision of this Agreement. The meaning assigned to each term used in this
Agreement shall be equally applicable to both the singular and the plural forms
of such term, and words denoting either gender shall include both genders. Where
a word or phrase is defined herein, each of its other grammatical forms shall
have a corresponding meaning.

                                       3
<PAGE>

      The parties have participated jointly in the negotiation and drafting of
this Agreement and the Transaction Documents. Consequently, in the event an
ambiguity or question of intent or interpretation arises, this Agreement and
each of the Transaction Documents shall be construed as if drafted jointly by
the parties thereto, and no presumption or burden of proof shall arise favoring
or disfavoring either party by virtue of the authorship of any provision of this
Agreement or of any of the Transaction Documents.

                                   ARTICLE II

                           CLOSING; PURCHASE AND SALE

      2.1 The Closing. Subject to the terms and conditions of this Agreement,
the closing (the "Closing") of the transaction set forth in this Article II
shall take place on or before February 7, 2007, or at such other time or such
other date as Buyer and the Company may agree, at the offices of Katten Muchin
Rosenman LLP, 575 Madison Avenue, New York, New York (such date upon which the
Closing occurs is referred to as the "Closing Date").

      2.2 Issuance and Delivery of the Purchase Shares. At the Closing, the
Company shall issue and deliver to the Buyer certificates for the purchase
Shares and the Buyer shall purchase the Purchase Shares from the Company.

      2.3 The Purchase Price. At the Closing, the Buyer shall purchase the
Purchase Shares for a purchase price equal to $2.62 per Purchase Share (the
"Purchase Price"), which shall be paid to the Company by the Buyer.

      2.4 Delivery of Purchase Price. At the Closing, the aggregate Purchase
Price shall be paid by the Buyer to the Company by wire transfer of immediately
available funds to an account designated in writing by the Company at least one
Business Day prior to the Closing.

      2.5 Use of Proceeds. The Company shall use the net proceeds from the
issuance of the Purchase Shares for general working capital purposes.

                                  ARTICLE III

                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

      The Company represents and warrants to the Buyer as of the date hereof and
as of the Closing Date as follows:

      3.1 Organization; Good Standing. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware. The Company has the corporate power and authority to conduct its
business as now being conducted and is duly licensed or qualified to do business
and is in good standing as a foreign corporation in all jurisdictions in which
the nature of the business conducted by it, and/or the character of the assets
owned or leased by it, makes such qualification or licensure necessary, except
for those jurisdictions in which the failure to be so qualified or licensed or
to be in good standing would not, individually or in the aggregate, limit the
Company's ability to consummate the transactions hereby contemplated or have a
Company Material Adverse Effect.

                                       4
<PAGE>

      3.2 Subsidiaries. All of the outstanding shares of the capital stock of
each Subsidiary of the Company are owned by the Company free and clear of all
Liens. Each of the Company's Subsidiaries is set forth on Schedule 3.2 and is a
corporation or other legal entity duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization. Each of the
Company's Subsidiaries has the power and authority to conduct its business as
now being conducted and is duly licensed or qualified to do business and is in
good standing as a foreign corporation or other legal entity in all
jurisdictions in which the nature of the business conducted by it, and/or the
character of the assets owned or leased by it, makes such qualification or
licensure necessary, except for those jurisdictions in which the failure to be
so qualified or licensed or to be in good standing would not, individually or in
the aggregate, limit the Company's ability to consummate the transactions hereby
contemplated or have a Company Material Adverse Effect.

      3.3 Authority; Execution and Delivery; Enforceability. The Company has the
corporate power and authority to execute and deliver this Agreement and the
Transaction Documents and to consummate the transactions hereby and thereby
contemplated. The execution and delivery by the Company of this Agreement and
the Transaction Documents and the consummation by the Company of the
transactions hereby and thereby contemplated have been authorized by all
necessary corporate action of the Company. The Company has duly executed and
delivered this Agreement and the Transaction Documents, and, assuming the due
execution and delivery of this Agreement and the Transaction Documents by each
party thereto (other than the Company), this Agreement and the Transaction
Documents constitute valid and binding obligations of the Company and are
enforceable against the Company in accordance with its and their respective
terms, except as such enforceability may be limited by bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium or other similar laws relating
to or affecting creditors' rights generally or general equitable principles
(whether considered in a proceeding at equity or in law).

      3.4 Non-Contravention. Neither the execution and delivery of this
Agreement and the Transaction Documents by the Company, nor the consummation of
the transactions hereby and thereby contemplated by the Company, will:

                  (i) constitute any violation or breach of the certificate of
            incorporation or the by-laws (or comparable organizational documents
            in the case of Subsidiaries) of the Company or any of its
            Subsidiaries;

                  (ii) constitute a default under or a violation or breach of,
            or result in the acceleration of any obligation under, any provision
            of any Contract to which the Company or any of its Subsidiaries is a
            party or by which any of the assets of the Company or any of its
            Subsidiaries or the Purchase Shares may be affected;

                                       5
<PAGE>

                  (iii) assuming the consents and approvals described in Section
            3.7 have been received, violate any Governmental Rules affecting the
            Company or any of its Subsidiaries; or

                  (iv) result in the creation of any Lien on any of the assets
            of the Company or any of its Subsidiaries;

other than, in the case of foregoing clauses (ii), (iii), and (iv), those
defaults, violations, breaches, accelerations and Liens which, individually or
in the aggregate, would not have a Company Material Adverse Effect.

      3.5 Corporate Documents. The Company has filed as exhibits to its SEC
Reports true and complete copies of the Certificate of Incorporation, as
amended, and By-Laws of the Company.

      3.6 Capitalization; Options. (a) The Company is authorized to issue
250,000,000 shares of Common Stock, par value $0.00001 per share, 38,197,596 of
which are issued and outstanding as of the date hereof, ("Common Stock") and
25,000,000 shares of Series A Preferred Stock, none of which are issued and
outstanding as of the date hereof (prior to giving effect to the transactions
contemplated by this Agreement).

      (b) All of the Purchase Shares when issued to the Buyer in accordance with
the terms of this Agreement shall be legally and validly issued, fully paid and
non-assessable, free and clear of all Liens. The shares of Common Stock issuable
upon conversion of the Purchase Shares or the exercise of the Warrant (the
"Conversion Shares") have been duly and validly reserved on the books and
records of the Company and, when issued upon conversion of the Purchase Shares
in accordance with the terms of the Certificate of Designations and the Warrant
and applicable Governmental Rules, shall be legally and validly issued, fully
paid and nonassessable, free and clear of all Liens.

      (c) Other than the Common Stock and the Series A Preferred Stock, there
are no other series or classes of capital stock of the Company authorized or
issued and outstanding. Except as set forth in the SEC Filings, there are no
outstanding warrants, options, contracts, rights (preemptive or otherwise),
calls, commitments or other instruments convertible into or exchangeable for
shares of capital stock of the Company or any of the Company's Subsidiaries, in
each such case, to which the Company or any of Company's Subsidiaries is a party
and which relates to the sale or issuance of shares of capital stock of the
Company or of any of Company's Subsidiaries (collectively, the "Company
Instruments"). Except as set forth in the SEC Filings or as contemplated by this
Agreement and the Transaction Documents, (i) the Company has not agreed to
register any shares of its capital stock under the Securities Act or granted
registration rights with respect to shares of its capital stock to any Person
and (ii) there are no voting trusts, stockholders agreements, proxies or other
agreements or understandings in effect to which the Company is a party with
respect to the voting or transfer of any shares of Common Stock. Except as
disclosed in the SEC Reports or any exhibit thereto, to the extent any such
Company Instruments are outstanding as of the date hereof, neither the issuance
and sale of the Purchase Shares nor the issuance of the Conversion Shares in
accordance with its terms will result in an adjustment of the exercise or
conversion price of, or number of shares issuable upon the exercise or
conversion of any such, Company Instruments.

                                       6
<PAGE>

      (d) The outstanding shares of Common Stock are all duly and validly
authorized and issued, fully paid and nonassessable. All outstanding Common
Stock, options and other securities of the Company were issued in accordance
with the registration or qualification provisions of the Securities Act and any
relevant state securities laws (including, without limitation, anti-fraud
provisions) or, subject in part to the truth and accuracy of each purchaser's
representations to the Company at the time of the purchase thereof, pursuant to
valid exemptions therefrom.

      3.7 Consents and Approvals. Except for filings required under applicable
securities laws and designation in Delaware, no consent, approval or
authorization of, or declaration, filing or registration with, any Governmental
Authority or any other Person is required on behalf of the Company or any of its
Subsidiaries in connection with the execution, delivery or performance of this
Agreement and the Transaction Documents or the consummation of the transactions
contemplated hereby and thereby, other than such consents, approvals and
authorizations of, and declarations, filings and registrations the failure of
which to obtain, make or otherwise effect which would not, individually or in
the aggregate, result in a Company Material Adverse Effect.

      3.8 SEC Reports and Financial Statements.

      (a) The Company has filed all forms, reports and documents required to be
filed by it with the SEC since July 23, 2003 (collectively, the "SEC Reports").
The SEC Reports (i) were prepared in all material respects in accordance with
the requirements of the Securities Act or the Exchange Act, as the case may be,
and (ii) did not at the time they were filed contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading. None of the Company's
Subsidiaries is required to file any form, report or other document with the
SEC.

      (b) Each of the financial statements (including, in each case, any notes
thereto) contained in the SEC Reports (the "Financial Statements") (i) was
prepared from the books of account and other financial records of the Company,
(ii) was prepared in accordance with GAAP applied on a consistent basis
throughout the periods indicated (except as may be indicated in the notes
thereto) and (iii) presented fairly in all material respects the financial
position of the Company as at the respective dates thereof and the results of
its operations and its cash flows for the respective periods indicated therein
except as otherwise noted therein (subject, in the case of unaudited statements,
to the omission of footnotes and normal and recurring year-end adjustments which
were not and are not expected, individually or in the aggregate, to have a
Company Material Adverse Effect).

      (c) Except for liabilities and obligations reflected on the September 30,
2006 balance sheet of the Company included in the SEC Reports (including the
notes thereto), liabilities and obligations disclosed in the SEC Reports
(including exhibits thereto) filed prior to the date of this Agreement and other
liabilities and obligations incurred in the ordinary course of business since
September 30, 2006, neither the Company nor any of the Company's Subsidiaries
has any liabilities or obligations of any nature (whether accrued, absolute,
contingent or otherwise) of a nature required to be disclosed on a balance sheet
prepared in accordance with GAAP which, individually or in the aggregate, would
cause a Company Material Adverse Effect.

                                       7
<PAGE>

      3.9 Litigation and Claims. There is no action, suit, claim, proceeding,
arbitration or investigation (each, an "Action") pending or, to the knowledge of
the Company, threatened against or affecting the Company or any of its
Subsidiaries or, to the best of the Company's knowledge, against any officer,
director or employee of the Company in connection with such officer's,
director's or employee's relationship with, or actions taken on behalf of, the
Company or that questions the validity of this Agreement, or the right of the
Company to enter into such agreements, or to consummate the transactions
contemplated hereby or thereby. Neither the Company nor any of its Subsidiaries
is subject to or in default under any judgment, order, writ, agreement,
injunction or decree of any court or Governmental Authority.

      3.10 Exempt Offering. Subject in part to the truth and accuracy of the
Buyer's representations set forth in Article IV of this Agreement, the offer,
sale and issuance of the Purchase Shares and the Conversion Shares, as
contemplated by and in conformity with this Agreement are exempt from the
registration requirements of Section 5 of the Securities Act by virtue of
Regulation D thereunder, and from the registration or qualification requirements
of any other applicable federal or state securities laws, and the issuance of
the Conversion Shares in accordance with the Company's Certificate of
Incorporation and the Certificate of Designations will be exempt from such
registration and qualification requirements, and neither the Company nor any
authorized agent acting on its behalf will take any action hereafter that would
cause the loss of such exemption.

      3.11 Agreements; Action. Other than as attached as an exhibit to the
Company's Annual Report on Form 10-KSB for year ended December 31, 2005 (as
amended), or any subsequent report on Form 10-QSB or 8-K filed with the SEC, the
Company is not a party to, and none of its properties, rights or assets are
bound by, any material contract, agreement, lease, power of attorney, guaranty,
surety arrangement, or other commitment, whether written or oral.

      3.12 Disclosure. None of this Agreement or any other statements or
certificates made or delivered in connection herewith or therewith contains or
will contain any untrue statement of a material fact or omits or will omit to
state a material fact required to be stated therein or necessary to make the
statements herein or therein, in light of the circumstances in which they are
made, not misleading.

                                   ARTICLE IV

                   REPRESENTATIONS AND WARRANTIES OF THE BUYER

      The Buyer represents and warrants to the Company as of the date hereof and
the Closing Date as follows:

      4.1 Organization and Good Standing. The Buyer is duly organized, validly
existing and in good standing under the laws of its jurisdiction of formation.

      4.2 Corporate Authority; Execution and Delivery; Enforceability. The Buyer
has the requisite power and authority to execute and deliver this Agreement and
the Transaction Documents to which it is a party and to consummate the
transactions hereby and thereby contemplated. The execution and delivery by the
Buyer of this Agreement and the Transaction

                                       8
<PAGE>

Documents to which it is a party and the consummation by the Buyer of the
transactions hereby and thereby contemplated have been authorized by all
necessary action (corporate or otherwise). The Buyer has duly executed and
delivered this Agreement and the Transaction Documents to which it is a party,
and, assuming the due execution and delivery of this Agreement and the
Transaction Documents by each party thereto (other than the Buyer), this
Agreement and the Transaction Documents to which it is a party constitute valid
and binding obligations of the Buyer and are enforceable against the Buyer in
accordance with its and their respective terms, except as such enforceability
may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or other similar laws relating to or affecting creditors' rights
generally or general equitable principles (whether considered in a proceeding at
equity or in law).

      4.3 Non-Contravention. Neither the execution and delivery of this
Agreement or the Transaction Documents to which it is a party by the Buyer, nor
the consummation of the transactions hereby or thereby contemplated by the
Buyer, will:

                  (i) constitute any violation or breach of the organizational
            documents of the Buyer; or

                  (ii) violate any Government Rule affecting the Buyer, other
            than any such violations which, individually or in the aggregate,
            would not prevent the Buyer from consummating the transactions
            contemplated by this Agreement and the Transaction Documents.

      4.4 Consents and Approvals. No consent, approval or authorization of, or
declaration, filing or registration with, any Governmental Authority or third
party is required on behalf of the Buyer in connection with the execution,
delivery or performance of this Agreement or the Transaction Documents to which
it is a party and all documents contemplated hereby or thereby or the
transactions contemplated hereby and thereby, other than such consents,
approvals and authorizations of, and declarations, filings and registrations
with, third parties the failure of which to obtain, make or otherwise effect
which would not, individually or in the aggregate, prevent the Buyer from
consummating the transactions contemplated by this Agreement and the Transaction
Documents.

      4.5 Litigation and Claims. There is no action, suit, claim, proceeding,
arbitration or investigation pending or, to the knowledge of the Buyer,
threatened against or affecting the Buyer with respect to the propriety or
validity of the transactions contemplated hereby.

      4.6 No Finder. Neither the Buyer nor any party acting on the Buyer's
behalf has paid or become obligated to pay any fee or commission to any broker,
finder or intermediary for or on account of the transactions contemplated
hereby.

      4.7 Investment Representations. The Buyer hereby acknowledges and agrees
that the Purchase Shares, and, if and when issued, the Conversion Shares, will
not be registered under the Securities Act or any state securities laws and may
not be offered or sold except pursuant to registration or an exemption from the
registration requirements of the Securities Act and all applicable state
securities laws. In this connection, the Buyer understands Rule 144 promulgated
under the Securities Act, as presently in effect, and understands the resale
limitations imposed thereby and by the Securities Act.

                                       9
<PAGE>

      4.8 Accredited Investor. The Buyer represents that: (i) the Buyer is an
"accredited investor" (as such term is defined in Regulation D under the
Securities Act) and is acquiring the Purchase Shares for its own account, for
investment purposes only, and not with a view to the resale or offer for sale
thereof or with any present intention of distributing or selling or offering for
sale any of such securities; and (ii) the Buyer is capable of bearing the
economic risk of such investment, including a complete loss of the investment in
the Purchase Shares.

      4.9 Access to Information. Such Purchaser or his representative during the
course of this transaction, and prior to the purchase of any Series APreferred
Stock, has had the opportunity to ask questions of and receive answers from
management of the Company concerning the terms and conditions of the offering of
the Series A Preferred Stock and the additional information, documents, records
and books relative to its business, assets, financial condition, results of
operations and liabilities (contingent or otherwise) of the Company.

                                   ARTICLE V

                                    COVENANTS

      5.1 Restrictive Legends. None of the Purchase Shares or the Conversion
Shares may be transferred without registration under the Securities Act and
applicable state securities laws unless counsel to the Buyer shall advise the
Company in writing that such transfer may be effected without such registration.
Each certificate representing any of the foregoing shall bear legends in
substantially the following form:

      THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933 (THE "ACT") AND MAY NOT BE OFFERED,
      SOLD OR TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED EXCEPT (I)
      PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO SUCH
      SECURITIES UNDER THE ACT, OR (II) UPON RECEIPT BY ISSUER OF AN OPINION
      OF LEGAL COUNSEL REASONABLY SATISFACTORY TO ISSUER THAT SUCH
      REGISTRATION IS NOT REQUIRED.

      The Company shall remove or cause its registrar and transfer agent to
remove such legend at the time such Purchase Shares or Conversion Shares are
transferred pursuant to an effective registration statement under the Securities
Act or pursuant to Rule 144 under the Securities Act.

      5.2 Change in Condition. Prior to the Closing, the Company shall promptly
advise the Buyer in writing of any material change in the condition (financial
or otherwise), operations or properties or businesses of the Company.

                                   ARTICLE VI

               CONDITIONS PRECEDENT TO OBLIGATIONS OF THE PARTIES

                                       10
<PAGE>

      The obligation of the parties to consummate the transactions contemplated
under this Agreement are subject to the fulfillment of each of the following
conditions, any or all of which may be waived in whole or in part by the party
whose obligation is subject to such conditions, in their sole discretion.

      6.1 Conditions to obligations of the Buyer.

      (a) There shall not be in effect any injunction or restraining order
issued by a court of competent jurisdiction in an Action against the
consummation of the transactions contemplated hereby or by any Transaction
Document.

      (b) The Company shall have filed the Certificate of Designations with the
Secretary of State of the State of Delaware.

      (c) The representations and warranties of the Company contained in Article
III that are qualified as to materiality shall be true and correct and those not
so qualified shall be true and correct in all material respects on and as of the
Closing with the same effect as though such representations and warranties had
been made on and as of the date of such Closing.

      (d) The Company shall have performed and complied in all material respects
with all agreements, obligations and conditions contained in this Agreement that
are required to be performed or complied with by it on or before the Closing.

      (e) All authorizations, approvals or permits, if any, of any governmental
authority or regulatory body of the United States or of any state that are
required in connection with the lawful issuance and sale of the Securities
pursuant to this Agreement shall be duly obtained and effective as of the
Closing.

      6.2 Conditions to obligations of the Company.

      (a) There shall not be in effect any injunction or restraining order
issued by a court of competent jurisdiction in an Action against the
consummation of the transactions contemplated hereby or by any Transaction
Document.

                                  ARTICLE VII

                               REGISTRATION RIGHTS

      If at any time the Company shall determine to register for its own account
or the account of others under the Securities Act (including pursuant a demand
for registration of any stockholder of the Company) any of its equity
securities, other than on Form S-4 or Form S-8 or their then equivalents
relating to shares of Common Stock to be issued solely in connection with any
acquisition of any entity or business or shares of Common Stock issuable in
connection with stock option or other employee benefit plans, it shall send to
the Buyer written notice of such determination and, if within fifteen (15) days
after receipt of such notice, the Buyer shall so request in writing to the
Company, the Company shall use its best efforts to include in such registration
statement all or any part of the Conversion Shares requested to be registered.

                                       11
<PAGE>

                                  ARTICLE VIII

                                  MISCELLANEOUS

      8.1 Survival; Certain Other Matters.

      (a) The representations and warranties of the parties contained in this
Agreement shall survive the Closing and shall continue in full force and effect
until the second anniversary of the date hereof, after which time such
representations and warranties shall terminate and have no further force or
effect; provided, however, that the representations and warranties contained in
Sections 3.6, 4.6, 4.7, 4.8 and 4.9 hereof shall survive the Closing and remain
in full force and effect until the expiration of the applicable statute of
limitations, after which time such representations and warranties shall
terminate and have no further force or effect. The period during which any such
representation or warranty survives is the "Survival Period" for such
representation or warranty. Notwithstanding the foregoing, any representation or
warranty that would otherwise terminate shall survive with respect to, and only
with respect to, any matter of which notice is given to Company or the Buyer, as
the case may be, in writing pursuant to this Agreement prior to the end of the
applicable Survival Period until such matter is resolved, after which time such
representation and warranty shall terminate and have no further force or effect.
The representations, warranties and covenants of the Company contained in or
made pursuant to this Agreement shall in no way be affected by any investigation
of the subject matter thereof made by or on behalf of the Buyer or the Company.

      (b) The covenants and agreements of the parties contained in this
Agreement shall survive the Closing as to the Buyer until the Buyer no longer
owns any Purchase Shares or Conversion Shares.

      (c) Each party hereto may assert a claim or cause of action under this
Agreement with respect to (i) any breach of one or more of the representations
and warranties contained in Articles III and IV hereof, as the case may be,
provided that such claim or cause of action is asserted within the applicable
time period specified in Section 8.1(a) hereof and (ii) subject to Section
8.1(b) hereof, a breach of any one or more of the covenants or agreements
contained in this Agreement. Except as provided for in the immediately preceding
sentence, the parties to this Agreement agree that no claims or causes of action
on any basis (including in contract or tort, under federal or state securities
laws or otherwise), other than for fraud, may be brought against the Company or
the Buyer or any of their respective directors, officers, employees, Affiliates,
shareholders, successors, permitted assigns, agents, or representatives based
upon, directly or indirectly, any of the representations or warranties contained
in Articles III and IV of this Agreement or any misstatement or failure to state
any fact made by Company in connection with the Buyer's purchase of the Purchase
Shares or the Conversion Shares.

      8.2 Further Assurances. From and after the Closing Date, each party shall,
at any time and from time to time, make, execute and deliver, or cause to be
made, executed and delivered, such instruments and agreements, and take or cause
to be taken all such actions as counsel for the other party may reasonably
request for the effectual consummation of this Agreement and the transactions
hereby contemplated.

                                       12
<PAGE>

      8.3 Expenses of the Transaction. The Company and the Buyer shall each pay
its own fees and expenses in connection with this Agreement and the transactions
hereby contemplated.

      8.4 Notices. All notices or other communications required or permitted
hereunder shall be in writing and shall be deemed given or delivered (i) when
delivered personally or by private courier, (ii) when actually delivered by
registered or certified United States mail, return receipt requested, or (iii)
when sent by telecopy (provided that it is confirmed by a means specified in
clause (i) or (ii)), addressed as follows:

         If to the Buyer:

                  Edward D. Kaplan
                  5 Saddle Court
                  Oyster Bay, NY 10111
                  Attention:
                  Telecopy:
                           --------------------------
                  Telephone: (516) 816-7099

         With a copy to:

                  Name:
                       ------------------------------
                  Address:
                          ---------------------------
                  Attention:
                              -----------------------
                  Telecopy:
                           --------------------------
                  Telephone:
                             ------------------------

         If to the Company to:

                  SearchHelp, Inc.
                  6800 Jericho Turnpike, Suite 208E
                  Syosett, New York 11791
                  Attention:  CFO
                  Telecopy:   (516) 624-0638
                  Telephone:  (516) 922-4765

         With a copy to:

                  Katten Muchin Rosenman LLP
                  575 Madison Avenue
                  New York, New York 10022
                  Attention:  Paul J. Pollock, Esq.
                  Telecopy:   (212) 940-8776
                  Telephone:  (212) 940-8555

or to such other address as such party may indicate by a notice delivered to the
other parties hereto.

                                       13
<PAGE>

      8.5 No Modification Except in Writing. This Agreement shall not be
changed, modified, or amended except by a writing signed by the party to be
affected by such change, modification or amendment, and this Agreement may not
be discharged except by performance in accordance with its terms or by a writing
signed by the party to which performance is to be rendered.

      8.6 Entire Agreement. This Agreement, together with any Schedules and
Exhibits hereto, sets forth the entire agreement and understanding among the
parties as to the subject matter hereof and merges and supersedes all prior
discussions, agreements and understandings of every kind and nature among them.

      8.7 Severability. If any provision of this Agreement or the application of
any provision hereof to any person or circumstances is held invalid, the
remainder of this Agreement and the application of such provision to other
persons or circumstances shall not be affected unless the provision held invalid
shall substantially impair the benefits of the remaining portions of this
Agreement.

      8.8 Assignment. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, executors,
administrators, successors and permitted assigns. This Agreement may not be
assigned by the Company or the Buyer without the prior written consent of the
other party; provided, however, that, prior to Closing, the Buyer may assign its
rights under this Agreement to any Affiliate of the Buyer that agrees in favor
of the Company in writing to the assumption of the assigning the Buyer's
obligations under this Agreement. No such assignment and assumption shall
relieve the Buyer of its obligations under this Agreement.

      8.9 Governing Law; Jurisdiction.

      (a) This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York applicable to contracts made and to be
performed wholly within said State, without giving effect to the conflict of
laws principles thereof.

      (b) Each of the parties hereto irrevocably and unconditionally submits to
the exclusive jurisdiction of the United States District Court for the Southern
District of New York or, if such court will not accept jurisdiction, the Supreme
Court of the State of New York, New York County or any court of competent civil
jurisdiction sitting in New York County, New York. In any action, suit or other
proceeding, each of the parties hereto irrevocably and unconditionally waives
and agrees not to assert by way of motion, as a defense or otherwise any claims
that it is not subject to the jurisdiction of the above courts, that such action
or suit is brought in an inconvenient forum or that the venue of such action,
suit or other proceeding is improper. Each of the parties hereto also agrees
that any final and unappealable judgment against a party hereto in connection
with any action, suit or other proceeding shall be conclusive and binding on
such party and that such award or judgment may be enforced in any court of
competent jurisdiction, either within or outside of the United States. A
certified or exemplified copy of such award or judgment shall be conclusive
evidence of the fact and amount of such award or judgment.

                                       14
<PAGE>

      (c) EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES THE RIGHT TO A JURY
TRIAL IN CONNECTION WITH ANY LEGAL PROCEEDING RELATING TO THIS AGREEMENT OR THE
ENFORCEMENT OF ANY PROVISION OF THIS AGREEMENT.

      8.10 Captions. The captions appearing in this Agreement are inserted only
as a matter of convenience and for reference and in no way define, limit or
describe the scope and intent of this Agreement or any of the provisions hereof.

      8.11 Counterparts. 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 a single agreement.

      8.12 Delays or Omissions. No delay or omission to exercise any right,
power or remedy accruing to the Company or to the Buyer, upon any breach or
default of any party hereto under this Agreement, shall impair any such right,
power or remedy of the Company or any Buyer nor shall it be construed to be a
waiver of any such breach or default, or an acquiescence therein, or of any
similar breach of default thereafter occurring; nor shall any waiver of any
other breach or default theretofore or thereafter occurring. Any waiver, permit,
consent or approval of any kind or character on the part of the Company or the
Buyer of any breach of default under this Agreement, or any waiver on the part
of the Company or any Buyer of any provisions or conditions of this Agreement,
must be in writing and shall be effective only to the extent specifically set
forth in such writing. All remedies, either under this Agreement, or by law or
otherwise afforded to the Company or the Buyer, shall be cumulative and not
alternative.

                            [Signature page follows]

                                       15

<PAGE>

      IN WITNESS WHEREOF, each of the parties hereto has executed this Series A
Preferred Stock Purchase Agreement on the day and year first above written.

                            SEARCHHELP, INC.

                            By:
                               ------------------------------------
                                  William J. Bozsnyak
                                  Chief Executive Officer

                            LEWIS CAPITAL MANAGEMENT

                            By:
                               ------------------------------------
                                  Edward Kaplan

<PAGE>

                                SEARCHHELP, INC.
                               PAYMENT INFORMATION
                                 PAYMENT BY WIRE

Your bank should wire transfer only U.S. dollars via Fed wire to:

HSBC BANK USA
SearchHelp, Inc., IPO Account
ABA # - 021001088
Account # 945705107
                        (i)

--------------------------------------------------------------------------------
                                   IMPORTANT:
1)    Please have your bank identify on the wire transfer the name of the
      intended investor.
2)    We recommend that your bank charge its wiring fees separately so that an
      even amount may be invested.

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

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