Document:

EXHIBIT 10.2
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THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAWS. THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF
THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT
AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO LOCATEPLUS HOLDINGS CORPORATION THAT SUCH REGISTRATION IS NOT
REQUIRED.

                          SECURED CONVERTIBLE TERM NOTE
                          -----------------------------

     FOR VALUE RECEIVED, LOCATEPLUS HOLDINGS CORPORATION, a Delaware corporation
(the "BORROWER"), hereby promises to pay to LAURUS MASTER FUND, LTD., c/o
Ironshore Corporate Services Ltd., P.O. Box 1234 G.T., Queensgate House, South
Church Street, Grand Cayman, Cayman Islands, Fax: 345-949-9877 (the "HOLDER") or
its registered assigns or successors in interest, on order, the sum of Three
Million Dollars ($3,000,000), together with any accrued and unpaid interest
hereon, on June 17, 2007 (the "MATURITY DATE") if not sooner paid.

     Capitalized terms used herein without definition shall have the meanings
ascribed to such terms in that certain Securities Purchase Agreement dated as of
the date hereof between the Borrower and the Holder (the "PURCHASE AGREEMENT").

The following terms shall apply to this Note:

                                    ARTICLE I
                             INTEREST & AMORTIZATION

     1.1(a) Interest Rate. Subject to Sections 4.11 and 5.6 hereof, interest
payable on this Note shall accrue at a rate per annum (the "Interest Rate")
equal to the "prime rate" published in The Wall Street Journal from time to
time, plus two percent (2%). The prime rate shall be increased or decreased as
the case may be for each increase or decrease in the prime rate in an amount
equal to such increase or decrease in the prime rate; each change to be
effective as of the day of the change in such rate. Subject to Section 1.1(b)
hereof, the Interest Rate shall not be less than six percent (6%). Interest
shall be (i) calculated on the basis of a 360 day year, and (ii) payable
monthly, in arrears, commencing on July 1, 2004 and on the first business day of
each consecutive calendar month thereafter until the Maturity Date (and on the
Maturity Date), whether by acceleration or otherwise (each, a "REPAYMENT DATE").

     1.1 (b) Interest Rate Adjustment. The Interest Rate shall be calculated on
the last business day of each month hereafter until the Maturity Date (each a
"Determination Date") and shall be subject to adjustment as set forth herein. If
(i) the Borrower shall have registered the shares of the Borrower's Class A
Common Stock underlying each of the conversion of the Note and that certain
warrant issued to Holder on a registration statement declared effective by the
Securities and Exchange

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Commission (the "SEC"), and (ii) the market price (the "Market Price") of the
Class A Common Stock as reported by Bloomberg, L.P. on the Principal Market (as
defined below) for the five (5) trading days immediately preceding a
Determination Date exceeds the then applicable Fixed Conversion Price by at
least twenty five percent (25%), the Interest Rate for the succeeding calendar
month shall automatically be reduced by 200 basis points (200 b.p.) (2.0.%) for
each incremental twenty five percent (25%) increase in the Market Price of the
Class A Common Stock above the then applicable Fixed Conversion Price. If (i)
the Borrower shall not have registered the shares of the Borrower's Class A
Common Stock underlying the conversion of the Note and that certain warrant
issued to Holder on a registration statement declared effective by the SEC and
which remains effective, and (ii) the Market Price of the Class A Common Stock
as reported by Bloomberg, L.P. on the principal market for the five (5) trading
days immediately preceding a Determination Date exceeds the then applicable
Fixed Conversion Price by at least twenty five percent (25%), the Interest Rate
for the succeeding calendar month shall automatically be decreased by 100 basis
points (100 b.p.) (1.0.%) for each incremental twenty five percent (25%)
increase in the Market Price of the Class A Common Stock above the then
applicable Fixed Conversion Price. Notwithstanding the foregoing (and anything
to the contrary contained in herein), in no event shall the Interest Rate be
less than zero percent (0%).

     1.2 Minimum Monthly Principal Payments. Amortizing payments of the
aggregate principal amount outstanding under this Note at any time (the
"PRINCIPAL AMOUNT") shall begin on October 1, 2004 and shall recur on the first
business day of each succeeding month thereafter until the Maturity Date (each,
an "AMORTIZATION DATE"). Subject to Article 3 below, beginning on the first
Amortization Date, the Borrower shall make monthly payments to the Holder on
each Repayment Date, each in the amount of $90,909.09, together with any accrued
and unpaid interest to date on such portion of the Principal Amount plus any and
all other amounts which are then owing under this Note, the Purchase Agreement
or any other Related Agreement but have not been paid (collectively, the
"MONTHLY AMOUNT"). Any Principal Amount that remains outstanding on the Maturity
Date shall be due and payable on the Maturity Date.

                                   ARTICLE II
                              CONVERSION REPAYMENT

     2.1 (a) Payment of Monthly Amount in Cash or Class A Common Stock. Each
month by the fifth (5th) business day prior to each Amortization Date (the
"NOTICE DATE"), the Holder shall deliver to Borrower a written notice in the
form of Exhibit B attached hereto converting the Monthly Amount payable on the
next Repayment Date in either cash or Class A Common Stock, or a combination of
both (each, a "REPAYMENT NOTICE"). If a Repayment Notice is not delivered by the
Holder on or before the applicable Notice Date for such Repayment Date, then the
Borrower shall pay the Monthly Amount due on such Repayment Date in cash. Any
portion of the Monthly Amount paid in cash on a Repayment Date, shall be paid to
the Holder an amount equal to 101% of the principal portion of the Monthly
Amount due and owing to Holder on the Repayment Date. If the Holder converts all
or a portion of the Monthly Amount in shares of Class A Common Stock as provided
herein, the number of such shares to be issued by the Borrower to the Holder on

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such Repayment Date shall be the number determined by dividing (x) the portion
of the Monthly Amount to be paid in shares of Class A Common Stock, by (y) the
then applicable Fixed Conversion Price. For purposes hereof, the initial "FIXED
CONVERSION PRICE" means $0.40.

         (b) Monthly Amount Conversion Guidelines. Subject to Sections 2.1(a),
2.2, and 3.2 hereof, the Holder shall convert all or a portion of the Monthly
Amount due on each Repayment Date into shares of Class A Common Stock if the
average closing price of the Class A Common Stock as reported by Bloomberg, L.P.
on the Principal Market for the five (5) trading days immediately preceding such
Repayment Date was greater than or equal to 110% of the Fixed Conversion Price,
provided, however, that such conversions shall not exceed twenty five percent
(25%) of the aggregate dollar trading volume of the Class A Common Stock for the
five (5) day trading period immediately preceding delivery of a Notice of
Conversion to the Borrower. Any part of the Monthly Amount due on a Repayment
Date that the Holder has not converted into shares of Class A Common Stock shall
be paid by the Borrower in cash on such Repayment Date. Any part of the Monthly
Amount due on such Repayment Date which must be paid in cash (as a result of the
closing price of the Class A Common Stock on one or more of the five (5) trading
days preceding the applicable Repayment Date being less than 110% of the Fixed
Conversion Price) shall be paid in cash at the rate of 101% of the Monthly
Amount otherwise due on such Repayment Date, within three (3) business days of
the applicable Repayment Date.

     2.2 No Effective Registration. Notwithstanding anything to the contrary
herein, none of the Borrower's obligations to the Holder may be converted into
Class A Common Stock unless (i) either (x) an effective current Registration
Statement (as defined in the Registration Rights Agreement) covering the shares
of Class A Common Stock to be issued in connection with satisfaction of such
obligations exists or (y) an exemption from registration of the Class A Common
Stock is available to pursuant to Rule 144 of the Securities Act and (ii) no
Event of Default hereunder exists and is continuing, unless such Event of
Default is cured within any applicable cure period or is otherwise waived in
writing by the Holder in whole or in part at the Holder's option.

     Any amounts converted by the Holder pursuant to this Section 2.2 shall be
deemed to constitute payments of outstanding fees, interest and principal
arising in connection with Monthly Amounts for the remaining Repayment Dates, in
chronological order.

     2.3 Optional Redemption in Cash. The Borrower will have the option of
prepaying this Note ("OPTIONAL REDEMPTION") by paying to the Holder a sum of
money equal to one hundred twenty-five percent (125%) of the then outstanding
principal balance of this Note together with accrued but unpaid interest thereon
and any and all other sums due, accrued or payable to the Holder arising under
this Note, the Purchase Agreement, or any Related Agreement (the "REDEMPTION
AMOUNT") outstanding on the day written notice of redemption (the "NOTICE OF
REDEMPTION") is given to the Holder. The Notice of Redemption shall specify the
date for such Optional Redemption (the "REDEMPTION PAYMENT DATE") which date
shall be seven (7) business days after the date of the Notice of Redemption (the
"REDEMPTION PERIOD"). A Notice of Redemption shall not be effective with respect
to any portion of this Note for which the Holder has a pending election to

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convert pursuant to Section 3.1, or for conversions initiated or made by the
Holder pursuant to Section 3.1 during the Redemption Period. The Redemption
Amount shall be determined as if such Holder's conversion elections had been
completed immediately prior to the date of the Notice of Redemption. On the
Redemption Payment Date, the Redemption Amount must be paid in good funds to the
Holder. In the event the Borrower fails to pay the Redemption Amount on the
Redemption Payment Date as set forth herein, then such Redemption Notice will be
null and void.

                                   ARTICLE III
                                CONVERSION RIGHTS

     3.1. Holder's Conversion Rights. The Holder shall have the right, but not
the obligation, to convert all or any portion of the then aggregate outstanding
principal amount of this Note, together with interest and fees due hereon, into
shares of Class A Common Stock subject to the terms and conditions set forth in
this Article III. The Holder may exercise such right by delivery to the Borrower
of a written notice of conversion not less than one (1) day prior to the date
upon which such conversion shall occur.

     3.2 Conversion Limitation. Notwithstanding anything contained herein to the
contrary, the Holder shall not be entitled to convert pursuant to the terms of
this Note an amount that would be convertible into that number of Conversion
Shares which would exceed the difference between the number of shares of Class A
Common Stock beneficially owned by such Holder or issuable upon exercise of
warrants held by such Holder and 4.99% of the outstanding shares of Class A
Common Stock of the Borrower. For the purposes of the immediately preceding
sentence, beneficial ownership shall be determined in accordance with Section
13(d) of the Exchange Act and Regulation 13d-3 thereunder. The Holder may void
the Conversion Share limitation described in this Section 3.2 upon 75 days prior
notice to the Borrower or without any notice requirement upon an Event of
Default.

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     3.3  Mechanics of Holder's Conversion. (a) In the event that the Holder
elects to convert this Note into Class A Common Stock, the Holder shall give
notice of such election by delivering an executed and completed notice of
conversion ("NOTICE OF CONVERSION") to the Borrower and such Notice of
Conversion shall provide a breakdown in reasonable detail of the Principal
Amount, accrued interest and fees being converted. On each Conversion Date (as
hereinafter defined) and in accordance with its Notice of Conversion, the Holder
shall make the appropriate reduction to the Principal Amount, accrued interest
and fees as entered in its records and shall provide written notice thereof to
the Borrower within two (2) business days after the Conversion Date. Each date
on which a Notice of Conversion is delivered or telecopied to the Borrower in
accordance with the provisions hereof shall be deemed a Conversion Date (the
"CONVERSION DATE"). A form of Notice of Conversion to be employed by the Holder
is annexed hereto as Exhibit A.

         (b) Pursuant to the terms of the Notice of Conversion, the Borrower
will issue instructions to the transfer agent accompanied by an opinion of
counsel within one (1) business day of the date of the delivery to Borrower of
the Notice of Conversion and shall cause the transfer agent to transmit the
certificates representing the Conversion Shares to the Holder either physically
by overnight courier, or by crediting the account of the Holder's designated
broker with the Depository Trust Corporation ("DTC") through its Deposit
Withdrawal Agent Commission ("DWAC") system within three (3) business days after
receipt by the Borrower of the Notice of Conversion (the "DELIVERY DATE"). In
the case of the exercise of the conversion rights set forth herein the
conversion privilege shall be deemed to have been exercised and the Conversion
Shares issuable upon such conversion shall be deemed to have been issued upon
the date of receipt by the Borrower of the Notice of Conversion. The Holder
shall be treated for all purposes as the record holder of such Class A Common
Stock, unless the Holder provides the Borrower written instructions to the
contrary.

     3.4  Conversion Mechanics.

         (a) The number of shares of Class A Common Stock to be issued upon each
conversion of this Note shall be determined by dividing that portion of the
principal and interest and fees to be converted, if any, by the then applicable
Fixed Conversion Price. In the event of any conversions of outstanding principal
amount under this Note in part pursuant to this Article III, such conversions
shall be deemed to constitute conversions of outstanding principal amount
applying to Monthly Amounts for the remaining Repayment Dates in chronological
order.

         (b) The Fixed Conversion Price and number and kind of shares or other
securities to be issued upon conversion is subject to adjustment from time to
time upon the occurrence of certain events, as follows:

          A. Stock Splits, Combinations and Dividends. In the event that the
Company shall (a) issue additional shares of the Class A Common Stock as a
dividend or other distribution on outstanding Class A Common Stock, (b)
subdivide its outstanding shares of Class A Common Stock,

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or (c) combine (x) its outstanding shares of the Class A Common Stock into a
smaller number of shares of the Class A Common Stock or (y) its outstanding
shares of the Class A Common Stock with another class of equity interests of the
Company, then, in each such event, the Fixed Conversion Price shall,
simultaneously with the happening of such event, be adjusted by multiplying the
then Fixed Conversion Price by a fraction, the numerator of which shall be the
sum of the number of shares of Class A Common Stock and Other Securities (as
defined below) outstanding immediately prior to such event and the denominator
of which shall be the sum of the number of shares of Class A Common Stock and
Other Securities outstanding immediately after such event, and the product so
obtained shall thereafter be the Fixed Conversion Price then in effect. The
Fixed Conversion Price, as so adjusted, shall be readjusted in the same manner
upon the happening of any successive event or events described herein in this
Section A. Notwithstanding the foregoing contained in this Section A, in the
event that the Class A Common Stock is combined with the existing Class B Common
Stock of the Company (such combination, the "Common Stock Combination"; the
common stock of the Company that results from the Common Stock Combination, the
"Combined Common Stock"), the Fixed Conversion Price shall not be adjusted in
any manner, so long as the ratio of (A) the sum of (i) the aggregate amount of
shares of Class A Common Stock immediately prior to the Common Stock Combination
plus (ii) the aggregate amount of shares of Class B Common Stock of the Company
immediately prior to the Common Stock Combination to (B) the aggregate amount of
shares of Combined Common Stock immediately after the Common Stock Combination,
is equal to a ratio of 1:1. For the purposes of this Note, the term "OTHER
SECURITIES" shall mean any stock or other securities of the Company or any other
person (corporate or otherwise) which the holder of this Note at any time shall
be entitled to receive, or shall have received, on the conversion of this Note
(or adjustment of this Note pursuant to Section 3.4 hereof), in lieu of or in
addition to Class A Common Stock, or which at any time shall be issuable or
shall have been issued in connection with any exchange or replacement or
combination of Class A Common Stock or Other Securities contemplated by Section
3.4 or otherwise.

          B. During the period the conversion right exists, the Borrower will
reserve from its authorized and unissued Class A Common Stock and Other
Securities a sufficient number of shares to provide for the issuance of Class A
Common Stock and/or Other Securities, as the case may be, upon the full
conversion of this Note. The Borrower represents that upon issuance, such shares
will be duly and validly issued, fully paid and non-assessable. The Borrower
agrees that its issuance of this Note shall constitute full authority to its
officers, agents, and transfer agents who are charged with the duty of executing
and issuing stock certificates to execute and issue the necessary certificates
for shares of Class A Common Stock and Other Securities upon the conversion of
this Note.

          C. Share Issuances. Subject to the provisions of this Section 3.4, if
the Borrower shall at any time prior to the conversion or repayment in full of
the Principal Amount issue any shares of Class A Common Stock or securities
convertible into Class A Common Stock to a person other than the Holder (except
(i) pursuant to Subsection A above; (ii) pursuant to options, warrants, or other
obligations to issue shares outstanding on the date hereof as disclosed to
Holder in writing; (iii) pursuant to options that may be issued under any
employee incentive stock option or any qualified

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employee stock option plan or qualified employee stock purchase plan adopted by
the Borrower) for a consideration per share (the "Offer Price") less than the
Fixed Conversion Price in effect at the time of such issuance, then the Fixed
Conversion Price shall be immediately reset to such lower Offer Price at the
time of issuance of such securities. For purposes hereof, the issuance of any
security of the Borrower convertible into or exercisable or exchangeable for
Class A Common Stock shall result in an adjustment to the Fixed Conversion Price
at the time of issuance of such securities.

          D. Reclassification, etc. If the Borrower at any time shall, by
reclassification, combination or otherwise, change the Class A Common Stock into
the same or a different number of securities of any class or classes, this Note,
as to the unpaid Principal Amount and accrued interest thereon, shall thereafter
be deemed to evidence the right to purchase an adjusted number of such
securities and kind of securities as would have been issuable as the result of
such change with respect to the Class A Common Stock immediately prior to such
reclassification, combination or other change.

     3.5 Issuance of New Note. Upon any partial conversion of this Note, a new
Note containing the same date and provisions of this Note shall, at the request
of the Holder, be issued by the Borrower to the Holder for the principal balance
of this Note and interest which shall not have been converted or paid. The
Borrower will pay no costs, fees or any other consideration to the Holder for
the production and issuance of a new Note.

                                   ARTICLE IV
                                EVENTS OF DEFAULT

     Upon the occurrence and continuance of an Event of Default beyond any
applicable grace period, the Holder may make all sums of principal, interest and
other fees then remaining unpaid hereon and all other amounts payable hereunder
immediately due and payable. In the event of such an acceleration, within five
(5) days after written notice from Holder to Borrower (each occurrence being a
"DEFAULT NOTICE PERIOD") the amount due and owing to the Holder shall be 125% of
the outstanding principal amount of the Note (plus accrued and unpaid interest
and fees, if any) (the "DEFAULT PAYMENT"). If, with respect to any Event of
Default, the Borrower cures the Event of Default, the Event of Default will be
deemed to no longer exist and any rights and remedies of Holder pertaining to
such Event of Default will be of no further force or effect. The Default Payment
shall be applied first to any fees due and payable to Holder pursuant to the
Note or the Related Agreements, then to accrued and unpaid interest due on the
Note and then to outstanding principal balance of the Note.

     The occurrence of any of the following events set forth in Sections 4.1
through 4.10, inclusive, is an "EVENT OF DEFAULT":

     4.1 Failure to Pay Principal, Interest or other Fees. The Borrower fails to
pay when due any installment of principal, interest or other fees hereon in
accordance herewith, and such failure shall continue for a period of five (5)
days following the date upon which any such payment was due.

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     4.2 Breach of Covenant. The Borrower breaches any covenant or any other
term or condition of this Note or the Purchase Agreement in any material
respect, or the Borrower or any of its Subsidiaries breaches any covenant or any
other term or condition of any Related Agreement in any material respect and,
any such case, such breach, if subject to cure, continues for a period of
fifteen (15) days after the occurrence thereof.

     4.3 Breach of Representations and Warranties. Any representation or
warranty made by the Borrower in this Note or the Purchase Agreement, or by the
Borrower or any of its Subsidiaries in any Related Agreement, shall, in any such
case, be false or misleading in any material respect on the date that such
representation or warranty was made or deemed made.

     4.4 Receiver or Trustee. The Borrower or any of its Subsidiaries shall make
an assignment for the benefit of creditors, or apply for or consent to the
appointment of a receiver or trustee for it or for a substantial part of its
property or business; or such a receiver or trustee shall otherwise be
appointed.

     4.5 Judgments. Any money judgment, writ or similar final process shall be
entered or filed against the Borrower or any of its Subsidiaries or any of their
respective property or other assets for more than $100,000, and shall remain
unvacated, unbonded or unstayed for a period of thirty (30) days.

     4.6 Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation
proceedings or other proceedings or relief under any bankruptcy law or any law
for the relief of debtors shall be instituted by or against the Borrower or any
of its Subsidiaries.

     4.7 Stop Trade. An SEC stop trade order or Principal Market trading
suspension of the Class A Common Stock shall be in effect for five (5)
consecutive days or five (5) days during a period of ten (10) consecutive days,
excluding in all cases a suspension of all trading on a Principal Market,
provided that the Borrower shall not have been able to cure such trading
suspension within thirty (30) days of the notice thereof or list the Class A
Common Stock on another Principal Market within sixty (60) days of such notice.
The "Principal Market" for the Class A Common Stock shall include the NASD OTC
Bulletin Board, NASDAQ SmallCap Market, NASDAQ National Market System, American
Stock Exchange, or New York Stock Exchange (whichever of the foregoing is at the
time the principal trading exchange or market for the Class A Common Stock), or
any securities exchange or other securities market on which the Class A Common
Stock is then being listed or traded.

     4.8 Failure to Deliver Class A Common Stock or Replacement Note. The
Borrower shall fail (i) to timely deliver Class A Common Stock to the Holder
pursuant to and in the form required by this Note, and Section 9 of the Purchase
Agreement, if such failure to timely deliver Class A Common Stock shall not be
cured within two (2) business days or (ii) to deliver a replacement Note

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to Holder within seven (7) business days following the required date of such
issuance pursuant to this Note, the Purchase Agreement or any Related Agreement
(to the extent required under such agreements).

     4.9 Default Under Related Agreements or Other Agreements. The occurrence
and continuance of any Event of Default (as defined in any Related Agreement) or
any event of default (or similar term) under any other indebtedness.

     4.10 Change in Control. The occurrence of a change in the controlling
ownership of the Borrower (it being understood that a combination of the
Company's Class A Common Stock and Class B Common Stock into one class of common
stock shall not be considered a "change of controlling ownership of the
Borrower" for purposes of this Section 4.10 so long as any such combination is
consummated in accordance with Section 11.14 of the Purchase Agreement).

                           DEFAULT RELATED PROVISIONS

     4.11 Payment Grace Period. Following the occurrence and continuance of an
Event of Default beyond any applicable cure period hereunder, the Borrower shall
pay the Holder a default interest rate of two percent (2%) per month on all
amounts due and owing under the Note, which default interest shall be payable
upon demand.

     4.12 Conversion Privileges. The conversion privileges set forth in Article
III shall remain in full force and effect immediately from the date hereof and
until this Note is paid in full.

     4.13 Cumulative Remedies. The remedies under this Note shall be cumulative.

                                    ARTICLE V
                                  MISCELLANEOUS

     5.1 Failure or Indulgence Not Waiver. No failure or delay on the part of
the Holder hereof in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof or
of any other right, power or privilege. All rights and remedies existing
hereunder are cumulative to, and not exclusive of, any rights or remedies
otherwise available.

     5.2 Notices. Any notice herein required or permitted to be given shall be
in writing and shall be deemed effectively given: (a) upon personal delivery to
the party notified, (b) when sent by confirmed telex or facsimile if sent during
normal business hours of the recipient, if not, then on the next business day,
(c) five days after having been sent by registered or certified mail, return
receipt requested, postage prepaid, or (d) one day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt. All communications shall be sent to the
Borrower at the address provided in the Purchase Agreement executed in
connection herewith, and to the Holder at the address provided in the Purchase
Agreement for such Holder, with a copy to John E. Tucker, Esq., 825 Third
Avenue, 14th Floor, New York, New York 10022,

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facsimile number (212) 541-4434, or at such other address as the Borrower or the
Holder may designate by ten days advance written notice to the other parties
hereto. A Notice of Conversion shall be deemed given when made to the Borrower
pursuant to the Purchase Agreement.

     5.3 Amendment Provision. The term "Note" and all reference thereto, as used
throughout this instrument, shall mean this instrument as originally executed,
or if later amended or supplemented, then as so amended or supplemented, and any
successor instrument issued pursuant to Section 3.5 hereof, as it may be amended
or supplemented.

     5.4 Assignability. This Note shall be binding upon the Borrower and its
successors and assigns, and shall inure to the benefit of the Holder and its
successors and assigns, and may be assigned by the Holder in accordance with the
requirements of the Purchase Agreement. This Note shall not be assigned by the
Borrower without the prior written consent of the Holder. So long as no Event of
Default has occurred and is continuing (and has not been cured following any
applicable grace period), this Note shall not be assigned by the Holder (i)
other than to affiliates of the Holder and (ii) without the prior written
consent of the Borrower (such consent not to be unreasonably withheld).

     5.5 Governing Law. This Note shall be governed by and construed in
accordance with the laws of the State of New York, without regard to principles
of conflicts of laws. Any action brought by either party against the other
concerning the transactions contemplated by this Agreement shall be brought only
in the state courts of New York or in the federal courts located in the State of
New York. Both parties and the individual signing this Note on behalf of the
Borrower agree to submit to the jurisdiction of such courts. The prevailing
party shall be entitled to recover from the other party its reasonable
attorney's fees and costs. In the event that any provision of this Note is
invalid or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of
law. Any such provision which may prove invalid or unenforceable under any law
shall not affect the validity or unenforceability of any other provision of this
Note. Nothing contained herein shall be deemed or operate to preclude the Holder
from bringing suit or taking other legal action against the Borrower in any
other jurisdiction to collect on the Borrower's obligations to Holder, to
realize on any collateral or any other security for such obligations, or to
enforce a judgment or other court in favor of the Holder.

     5.6 Maximum Payments. Nothing contained herein shall be deemed to establish
or require the payment of a rate of interest or other charges in excess of the
maximum permitted by applicable law. In the event that the rate of interest
required to be paid or other charges hereunder exceed the maximum permitted by
such law, any payments in excess of such maximum shall be credited against
amounts owed by the Borrower to the Holder and thus refunded to the Borrower.

     5.7 Security Interest and Guarantee. The Holder has been granted a security
interest (i) in certain assets of the Borrower and its Subsidiaries as more
fully described in the Master Security Agreement dated as of the date hereof and
(ii) pursuant to the Stock Pledge Agreement dated as of

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the date hereof. The obligations of the Borrower under this Note are guaranteed
by certain Subsidiaries of the Borrower pursuant to the Subsidiary Guaranty
dated as of the date hereof.

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

     5.9 Cost of Collection. If default is made in the payment of this Note, the
Borrower shall pay to Holder reasonable costs of collection, including
reasonable attorney's fees.

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

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     IN WITNESS WHEREOF, the Borrower has caused this Convertible Term Note to
be signed in its name effective as of this 17th day of June, 2004.

                         LOCATEPLUS HOLDINGS CORPORATION

                                                       By: /s/ Jon R. Latorella
                                                           --------------------
                                                       Name: Jon R. Latorella
                                                             ------------------
                                                       Title: President
                                                              -----------------

WITNESS:

/s/ James C. Fields
-------------------

                                       12
<PAGE>
                                    EXHIBIT A

                              NOTICE OF CONVERSION
                              --------------------

(To be executed by the Holder in order to convert all or part of the Note into
Class A Common Stock

[Name and Address of Holder]

The Undersigned hereby converts $_________ of the principal due on [specify
applicable Repayment Date] under the Convertible Term Note issued by LocatePlus
Holding Corporation dated June 17, 2004 by delivery of Shares of Class A Common
Stock of LocatePLUS Holdings Corporation on and subject to the conditions set
forth in Article III of such Note.

1.   Date of Conversion      _______________________

2.   Shares To Be Delivered: _______________________

                                                 By:___________________________

                                                 Name:_________________________

                                                 Title:________________________

                                       13
<PAGE>
                                    EXHIBIT B

                                CONVERSION NOTICE
                                -----------------

(To be executed by the Holder in order to convert all or part of a Monthly
Amount into Class A Common Stock)

[Name and Address of Holder]

Holder hereby converts $_________ of the Monthly Amount due on [specify
applicable Repayment Date] under the Convertible Term Note issued by LocatePLUS
Holdings Corporation dated June 17, 2004 by delivery of Shares of Class A Common
Stock of LocatePLUS Holdings Corporation on and subject to the conditions set
forth in Article III of such Note.

1.   Fixed Conversion Price: $_______________________

2.   Amount to be paid:      $_______________________

3.   Shares To Be Delivered (2 divided by 1):        __________________

4.   Cash payment to be made by Borrower:            $_________________

Date: ____________                                   LAURUS  MASTER FUND, LTD.

                                                     By:________________________

                                                     Name:______________________

                                                     Title:_____________________

                                       14EXHIBIT 10.3
                                                                    ------------

                          REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (this "Agreement") is made and
entered into as of June 17, 2004, by and between LocatePLUS Holdings
Corporation, a Delaware corporation (the "Company"), and Laurus Master Fund,
Ltd. (the "Purchaser").

         This Agreement is made pursuant to the Securities Purchase Agreement,
dated as of the date hereof, by and between the Purchaser and the Company (the
"Securities Purchase Agreement"), and pursuant to the Note and the Warrants
referred to therein.

         The Company and the Purchaser hereby agree as follows:

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

                  "Class A Common Stock" means shares of the Company's Class A
voting common stock, par value $0.01 per share.

                  "Commission" means the Securities and Exchange Commission.

                  "Effectiveness Date" means the 120th day following the date
hereof.

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

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

                  "Filing Date" means, with respect to the Registration
Statement required to be filed hereunder, a date no later than thirty (30) days
following the date hereof and with respect to shares of Class A Common Stock
issuable to the Holder as a result of adjustments to the Fixed Conversion Price
made pursuant to Section 3.4 of the Secured Convertible Term Note or Section 4
of the Warrant or otherwise, thirty (30) days after the occurrence such event or
the date of the adjustment of the Fixed Conversion Price.

                  "Holder" or "Holders" means the Purchaser or any of its
affiliates or transferees to the extent any of them hold 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).

                  "Note" has the meaning set forth in the Securities Purchase
Agreement.

<PAGE>

                  "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 or deemed to be incorporated by reference in
such Prospectus.

                  "Registrable Securities" means the shares of Class A Common
Stock issued upon the conversion of the Note and issuable upon exercise of the
Warrants.

                  "Registration Statement" means each registration statement
required to be filed hereunder, including 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 or deemed to be incorporated by reference in such registration
statement.

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

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

                  "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.

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

                  "Securities Purchase Agreement" means the agreement between
the parties hereto calling for the issuance by the Company of $3,000,000 of
convertible Note plus Warrants.

<PAGE>

                  "Trading Market" means any of the NASD OTC Bulletin Board,
NASDAQ SmallCap Market, the Nasdaq National Market, the American Stock Exchange
or the New York Stock Exchange.

                  "Warrants" means the Class A Common Stock purchase warrants
issued pursuant to the Securities Purchase Agreement.

         2. Registration.

                  (a) On or prior to the Filing Date the Company shall prepare
         and file with the Commission a Registration Statement covering the
         resale of the Registrable Securities for an offering to be made on a
         continuous basis pursuant to Rule 415. 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
         herewith). The Company shall cause the Registration Statement to become
         effective and remain effective as provided herein. The Company shall
         use its reasonable commercial 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 no later than
         the Effectiveness Date. The Company shall use its reasonable commercial
         efforts to keep the Registration Statement continuously effective under
         the Securities Act until the date which is the earlier date of when (i)
         all Registrable Securities have been sold or (ii) all Registrable
         Securities may be sold immediately without registration under the
         Securities Act and without volume restrictions pursuant to Rule 144(k),
         as determined by the counsel to the Company pursuant to a written
         opinion letter to such effect, addressed and acceptable to the
         Company's transfer agent and the affected Holders (the "Effectiveness
         Period").

                  (b) If: (i) the Registration Statement is not filed on or
         prior to the Filing Date; (ii) the Registration Statement is not
         declared effective by the Commission by the Effectiveness Date; (iii)
         after the Registration Statement is filed with and declared effective
         by the Commission, the Registration Statement ceases to be effective
         (by suspension or otherwise) as to all Registrable Securities to which
         it is required to relate at any time prior to the expiration of the
         Effectiveness Period (without being succeeded immediately by an
         additional registration statement filed and declared effective) for a
         period of time which shall exceed 30 days in the aggregate per year or
         more than 20 consecutive calendar days (defined as a period of 365 days
         commencing on the date the Registration Statement is declared
         effective); or (iv) the Class A Common Stock is not listed or quoted,
         or is suspended from trading on any Trading Market for a period of
         three (3) consecutive Trading Days (provided the Company shall not have
         been able to cure such trading suspension within 30 days of the notice
         thereof or list the Class A Common Stock on another Trading Market);
         (any such failure or breach being referred to as an "Event," and for
         purposes of clause (i) or (ii) the date on which such Event occurs, or
         for purposes of clause (iii) the date which such 30 day or 20
         consecutive day period (as the case may be) is exceeded, or for

<PAGE>

         purposes of clause (iv) the date on which such three (3) Trading Day
         period is exceeded, being referred to as "Event Date"), then until the
         applicable Event is cured, the Company shall pay to each Holder an
         amount in cash, as liquidated damages and not as a penalty, equal to
         1.0% for each thirty (30) day period (prorated for partial periods on a
         daily basis) of the proportion of the then outstanding principal
         balance of the Note then held by such Holder. While such Event
         continues, such liquidated damages shall be paid not less often than
         each thirty (30) days. Any unpaid liquidated damages as of the date
         when an Event has been cured by the Company shall be paid within three
         (3) business days following the date on which such Event has been cured
         by the Company.

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

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

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

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

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

<PAGE>

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

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

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

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

         The Company may require each selling Holder to furnish to the Company a
certified statement as to the number of shares of Class A Common Stock
beneficially owned by such Holder and, if required by the Commission, the
person(s) thereof that has voting and/or dispositive control over such shares of
Class A Common Stock.

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

<PAGE>

         5. Indemnification.

                  (a) In the event of a registration of any Registrable
         Securities under the Securities Act pursuant to this Agreement, the
         Company will indemnify and hold harmless the Purchaser, and its
         officers, directors and each other person, if any, who controls the
         Purchaser within the meaning of the Securities Act, against any losses,
         claims, damages or liabilities, joint or several, to which the
         Purchaser, or such persons may become subject under the Securities Act
         or otherwise, insofar as such losses, claims, damages or liabilities
         (or actions in respect thereof) arise out of or are based upon any
         untrue statement or alleged untrue statement of any material fact
         contained in any Registration Statement under which such Registrable
         Securities were registered under the Securities Act pursuant to this
         Agreement, any preliminary Prospectus or final Prospectus contained
         therein, or any amendment or supplement thereof, or arise out of or are
         based upon the omission or alleged omission to state therein a material
         fact required to be stated therein or necessary to make the statements
         therein not misleading, and will reimburse the Purchaser, and each such
         person for any reasonable legal or other expenses incurred by them in
         connection with investigating or defending any such loss, claim,
         damage, liability or action; provided, however, that the Company will
         not be liable in any such case if and to the extent that (1) any such
         loss, claim, damage or liability arises out of or is based upon an
         untrue statement or alleged untrue statement or omission or alleged
         omission so made in conformity with information furnished by or on
         behalf of the Purchaser or any such person in writing specifically for
         use in any such document or (2) in the case of an occurrence of an
         event of the type specified in Section 3(c), the use by such Holder of
         an outdated or defective Prospectus after the Company has notified such
         Holder of the Advice contemplated in Section 7(d).

                  (b) In the event of a registration of the Registrable
         Securities under the Securities Act pursuant to this Agreement, each
         Holder will indemnify and hold harmless the Company, and its officers,
         directors and each other person, if any, who controls the Company
         within the meaning of the Securities Act, against all losses, claims,
         damages or liabilities, joint or several, to which the Company or such
         persons may become subject under the Securities Act or otherwise,
         insofar as such losses, claims, damages or liabilities (or actions in
         respect thereof) arise out of or are based upon: (x) such Holder's
         failure to comply with the prospectus delivery requirements of the
         Securities Act applicable to such Holder or (y) any untrue statement or
         alleged untrue statement of any material fact which was furnished in
         writing by such Holder to the Company expressly for use in (and such
         information is contained in) the Registration Statement under which
         such Registrable Securities were registered under the Securities Act
         pursuant to this Agreement, any preliminary Prospectus or final
         Prospectus contained therein, or any amendment or supplement thereof,
         or arise out of or are based upon the omission or alleged omission to
         state therein a material fact required to be stated therein or
         necessary to make the statements therein not misleading, and will
         reimburse the Company and each such person for any reasonable legal or
         other expenses incurred by them in connection with investigating or

<PAGE>

         defending any such loss, claim, damage, liability or action, provided,
         however, that the Purchaser will be liable in any such case if and only
         to the extent that any such loss, claim, damage or liability arises out
         of or is based upon an untrue statement or alleged untrue statement or
         omission or alleged omission so made in conformity with information
         furnished in writing to the Company by or on behalf of the Purchaser
         specifically for use in any such document. Notwithstanding the
         provisions of this paragraph, the Purchaser shall not be required to
         indemnify any person or entity in excess of the amount of the aggregate
         net proceeds received by the Purchaser in respect of Registrable
         Securities in connection with any such registration under the
         Securities Act.

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

                  (d) In order to provide for just and equitable contribution in
         the event of joint liability under the Securities Act in any case in
         which either (i) the Purchaser, or any officer, director or controlling
         person of the Purchaser, makes a claim for indemnification pursuant to
         this Section 5 but it is judicially determined (by the entry

<PAGE>

         of a final judgment or decree by a court of competent jurisdiction and
         the expiration of time to appeal or the denial of the last right of
         appeal) that such indemnification may not be enforced in such case
         notwithstanding the fact that this Section 5 provides for
         indemnification in such case, or (ii) contribution under the Securities
         Act may be required on the part of the Purchaser or such officer,
         director or controlling person of the Purchaser in circumstances for
         which indemnification is provided under this Section 5; then, and in
         each such case, the Company and the Purchaser will contribute to the
         aggregate losses, claims, damages or liabilities to which they may be
         subject (after contribution from others) in such proportion so that the
         Purchaser is responsible only for the portion represented by the
         percentage that the public offering price of its securities offered by
         the Registration Statement bears to the public offering price of all
         securities offered by such Registration Statement, provided, however,
         that, in any such case, (A) the Purchaser will not be required to
         contribute any amount in excess of the public offering price of all
         such securities offered by it pursuant to such Registration Statement;
         and (B) no person or entity guilty of fraudulent misrepresentation
         (within the meaning of Section 10(f) of the Act) will be entitled to
         contribution from any person or entity who was not guilty of such
         fraudulent misrepresentation.

         6. Representations and Warranties.

                  (a) The Class A Common Stock of the Company is registered
         pursuant to Section 12(b) or 12(g) of the Exchange Act and, except with
         respect to certain matters which the Company has disclosed to the
         Purchaser on Schedule 4.21 to the Securities Purchase Agreement, the
         Company has timely filed all proxy statements, reports, schedules,
         forms, statements and other documents required to be filed by it under
         the Exchange Act. The Company has filed (i) its Annual Report on Form
         10-KSB for its fiscal year ended December 31, 2003; (ii) its Quarterly
         Report on Form 10-QSB for the fiscal quarter ended March 31, 2004 and
         (iii) the Form 8-K filings which it has made during the fiscal year
         2004 to date (collectively, the "SEC Reports"). Each SEC Report was, at
         the time of its filing, in substantial compliance with the requirements
         of its respective form and none of the SEC Reports, nor the financial
         statements (and the notes thereto) included in the SEC Reports, as of
         their respective filing dates, contained any untrue statement of a
         material fact or omitted to state a material fact required to be stated
         therein or necessary to make the statements therein, in light of the
         circumstances under which they were made, not misleading. The financial
         statements of the Company included in the SEC Reports comply as to form
         in all material respects with applicable accounting requirements and
         the published rules and regulations of the Commission or other
         applicable rules and regulations with respect thereto. Such financial
         statements have been prepared in accordance with generally accepted
         accounting principles ("GAAP") applied on a consistent basis during the
         periods involved (except (i) as may be otherwise indicated in such
         financial statements or the notes thereto or (ii) in the case of
         unaudited interim statements, to the extent they may not include
         footnotes or may be condensed) and fairly present in all material
         respects the financial condition, the results of operations and the

<PAGE>

         cash flows of the Company and its subsidiaries, on a consolidated
         basis, as of, and for, the periods presented in each such SEC Report.

                  (b) The Class A Common Stock is traded on the NASD OTCBB and
         satisfies all requirements for the continuation of such trading. The
         Company has not received any notice that its Class A Common Stock will
         not be eligible to be traded on the NASD OTCBB (except for prior
         notices which have been fully remedied) or that the Class A Common
         Stock does not meet all requirements for the continuation of such
         trading.

                  (c) Neither the Company, nor any of its affiliates, nor any
         person acting on its or their behalf, has directly or indirectly made
         any offers or sales of any security or solicited any offers to buy any
         security under circumstances that would cause the offering of the
         Securities pursuant to the Securities Purchase Agreement to be
         integrated with prior offerings by the Company for purposes of the
         Securities Act which would prevent the Company from selling the Class A
         Common Stock pursuant to Rule 506 under the Securities Act, or any
         applicable exchange-related stockholder approval provisions, nor will
         the Company or any of its affiliates or subsidiaries take any action or
         steps that would cause the offering of the Securities to be integrated
         with other offerings.

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

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

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

<PAGE>

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

         7. Miscellaneous.

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

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

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

                  (d) Discontinued Disposition. Each Holder agrees by its
         acquisition of such Registrable Securities that, upon receipt of a
         notice from the Company of the occurrence of a Discontinuation Event
         (as defined below), such Holder will forthwith discontinue disposition
         of such Registrable Securities under the applicable Registration
         Statement until such Holder's receipt of the copies of the supplemented
         Prospectus and/or amended Registration Statement or until it is advised
         in writing (the "Advice") by the Company that the use of the applicable
         Prospectus may be resumed, and, in either case, has received copies of
         any additional or supplemental filings that are incorporated or deemed
         to be incorporated by reference in such Prospectus or Registration
         Statement. The Company may provide appropriate stop orders to enforce
         the provisions of this paragraph. For purposes of this Section 7(d), a
         "Discontinuation Event" shall mean (i) when the Commission notifies the
         Company whether there will be a "review" of such Registration Statement
         and whenever the Commission comments in writing on such Registration
         Statement (the Company shall provide true and complete copies thereof
         and all written responses thereto to each of the Holders); (ii) any
         request by the Commission or any other Federal or state governmental
         authority for amendments or supplements to such Registration Statement
         or Prospectus or for additional information; (iii) the issuance by the
<PAGE>

         Commission of any stop order suspending the effectiveness of such
         Registration Statement covering any or all of the Registrable
         Securities or the initiation of any Proceedings for that purpose; (iv)
         the receipt by the Company of any notification with respect to the
         suspension of the qualification or exemption from qualification of any
         of the Registrable Securities for sale in any jurisdiction, or the
         initiation or threatening of any Proceeding for such purpose; and/or
         (v) the occurrence of any event or passage of time that makes the
         financial statements included in such Registration Statement ineligible
         for inclusion therein or any statement made in such Registration
         Statement or Prospectus or any document incorporated or deemed to be
         incorporated therein by reference untrue in any material respect or
         that requires any revisions to such Registration Statement, Prospectus
         or other documents so that, in the case of such Registration Statement
         or Prospectus, as the case may be, it will not contain any untrue
         statement of a material fact or omit to state any material fact
         required to be stated therein or necessary to make the statements
         therein, in light of the circumstances under which they were made, not
         misleading.

                  (e) Piggy-Back Registrations. If at any time during the
         Effectiveness Period there is not an effective Registration Statement
         covering all of the Registrable Securities and the Company shall
         determine to prepare and file with the Commission a registration
         statement relating to an offering for its own account or the account of
         others under the Securities Act of any of its equity securities, other
         than on Form S-4 or Form S-8 (each as promulgated under the Securities
         Act) or their then equivalents relating to equity securities to be
         issued solely in connection with any acquisition of any entity or
         business or equity securities issuable in connection with stock option
         or other employee benefit plans, then the Company shall send to each
         Holder written notice of such determination and, if within ten (10)
         business days after receipt of such notice, any such Holder shall so
         request in writing, the Company shall include in such registration
         statement all or any part of such Registrable Securities such holder
         requests to be registered to the extent the Company may do so without
         violating registration rights of others which exist as of the date of
         this Agreement, subject to customary underwriter cutbacks applicable to
         all holders of registration rights and subject to obtaining any
         required the consent of any selling stockholder(s) to such inclusion
         under such registration statement.

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

<PAGE>

         modified, or supplemented except in accordance with the provisions of
         the immediately preceding sentence.

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

                  If to the Company:         LocatePLUS Holdings Corporation
                                             Attention: Chief Financial Officer
                                             Facsimile:

                                             with a copy to:
                                             Kirkpatrick & Lockhart LLP
                                             Attention:  Michael A. Hickey, Esq.
                                             Facsimile:  617.261.3175

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

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

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

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

<PAGE>

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

                  (j) Governing Law. All questions concerning the construction,
         validity, enforcement and interpretation of this Agreement shall be
         governed by and construed and enforced in accordance with the internal
         laws of the State of New York, without regard to the principles of
         conflicts of law thereof. Each party agrees that all Proceedings
         concerning the interpretations, enforcement and defense of the
         transactions contemplated by this Agreement shall be commenced
         exclusively in the state and federal courts sitting in the City of New
         York, Borough of Manhattan. Each party hereto hereby irrevocably
         submits to the exclusive jurisdiction of the state and federal courts
         sitting in the City of New York, Borough of Manhattan for the
         adjudication of any dispute hereunder or in connection herewith or with
         any transaction contemplated hereby or discussed herein, and hereby
         irrevocably waives, and agrees not to assert in any Proceeding, any
         claim that it is not personally subject to the jurisdiction of any such
         court, that such Proceeding is improper. Each party hereto hereby
         irrevocably waives personal service of process and consents to process
         being served in any such Proceeding by mailing a copy thereof via
         registered or certified mail or overnight delivery (with evidence of
         delivery) 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 contained
         herein shall be deemed to limit in any way any right to serve process
         in any manner permitted by law. Each party hereto hereby irrevocably
         waives, to the fullest extent permitted by applicable law, any and all
         right to trial by jury in any legal proceeding arising out of or
         relating to this Agreement or the transactions contemplated hereby. If
         either party shall commence a Proceeding to enforce any provisions of
         this Agreement, the Securities Purchase Agreement or any Related
         Agreement, then the prevailing party in such Proceeding shall be
         reimbursed by the other party for its reasonable attorneys fees and
         other costs and expenses incurred with the investigation, preparation
         and prosecution of such Proceeding.

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

                  (l) Severability. If any term, provision, covenant or
         restriction of this Agreement is held by a court of competent
         jurisdiction to be invalid, illegal, void or unenforceable, the
         remainder of the terms, provisions, covenants and restrictions set
         forth herein shall remain in full force and effect and shall in no way
         be affected, impaired or invalidated, and the parties hereto shall use
         their reasonable efforts to find and employ an alternative means to
         achieve the same or substantially the same result

<PAGE>

         as that contemplated by such term, provision, covenant or restriction.
         It is hereby stipulated and declared to be the intention of the parties
         that they would have executed the remaining terms, provisions,
         covenants and restrictions without including any of such that may be
         hereafter declared invalid, illegal, void or unenforceable.

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

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                             SIGNATURE PAGE FOLLOWS]

<PAGE>

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

LOCATEPLUS HOLDINGS CORPORATION        LAURUS MASTER FUND, LTD.

By:     /s/ Jon R. Latorella           By:     /s/ David Grin
        ------------------------               -----------------------
Name:   Jon R. Latorella               Name:   David Grin
        ------------------------               -----------------------
Title:  President                      Title:  Managing Partner
        ------------------------               -----------------------

                                       Address for Notices:

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

<PAGE>

                                    EXHIBIT A

                                [Month __, 2004]

[Continental Stock Transfer
 & Trust Company
Two Broadway
New York, NY  10004
Attn: William Seegraber]

                           Re:    LocatePLUS Holdings Corporation. Registration
                                  Statement on Form SB-2
                                  ---------------------------------------------

Ladies and Gentlemen:

         As counsel to LocatePLUS Holdings Corporation, a Delaware corporation
(the "Company"), we have been requested to render our opinion to you in
connection with the resale by the individuals or entitles listed on Schedule A
attached hereto (the "Selling Stockholders"), of an aggregate of [amount] shares
(the "Shares") of the Company's Class A Common Stock.

         A Registration Statement on Form SB-2 under the Securities Act of 1933,
as amended (the "Act"), with respect to the resale of the Shares was declared
effective by the Securities and Exchange Commission on [date]. Enclosed is the
Prospectus dated [date]. We understand that the Shares are to be offered and
sold in the manner described in the Prospectus.

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

                                                     Very truly yours,

                                                     [Company counsel]

<PAGE>

                      SCHEDULE 7(b)-EQUITY TO BE REGISTERED
<TABLE><CAPTION>
WARRANTS AND REGISTRATION RIGHTS
WARRANTS CLASS A
-----------------------------------------------------------------------------------------------------
<S>                           <C>           <C>
Russo, David and Maria         50,000        No registration rights
-----------------------------------------------------------------------------------------------------
Andrea, Wayne & Tiffany        30,000        No registration rights
-----------------------------------------------------------------------------------------------------
Axelrod, Lionel                60,000        No registration rights
-----------------------------------------------------------------------------------------------------
Russo, Steven                  60,000        No registration rights
-----------------------------------------------------------------------------------------------------
Tedeschi, Jr. Trust            15,000        No registration rights
-----------------------------------------------------------------------------------------------------
Houlihan, John P               75,000        No registration rights
-----------------------------------------------------------------------------------------------------
Margiotta, Marcia               5,000        No registration rights
-----------------------------------------------------------------------------------------------------
Snyder, Albert                 35,000        No registration rights
-----------------------------------------------------------------------------------------------------
Cardwell, James                25,000        No registration rights
-----------------------------------------------------------------------------------------------------
Lyon, Elise                    50,000        No registration rights
-----------------------------------------------------------------------------------------------------
Volpe, Lawrence                65,000        No registration rights
-----------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------
2001 GRANTS
-----------------------------------------------------------------------------------------------------
Murphy, Thomas                 25,000        No registration rights
-----------------------------------------------------------------------------------------------------
Oftring Company                43,500        No registration rights
-----------------------------------------------------------------------------------------------------
Para, Dale                     19,000        No registration rights
-----------------------------------------------------------------------------------------------------
Russo, Steven                  50,000        Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------
2002 GRANTS
-----------------------------------------------------------------------------------------------------
Jenkins, Dale                  35,133        Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Garlock, Thomas               139,041        Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Spears, George                 53,065        Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Garlock, Thomas                21,500        Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Spears, George                 13,000        Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------
2003 GRANTS
-----------------------------------------------------------------------------------------------------
Rossi, Patrick                 472,500       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Kisiel, Kevin                  187,500       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Glaude, David                  531,750       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Parrott, Tod                   375,000       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Para, Edward                   270,000       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------

WARRANTS - CL B
-----------------------------------------------------------------------------------------------------
2001 GRANTS
-----------------------------------------------------------------------------------------------------
Lindae, Greg                   500,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Caruso, Ralph                  250,000       No registration rights
-----------------------------------------------------------------------------------------------------
Simonini, Paul R.              250,000       No registration rights
-----------------------------------------------------------------------------------------------------
Duchesneau, David               25,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Shaheen, William                25,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Cromwell, Oliver D.             26,346       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Gushee-Molkenthin               26,207       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Phillips, John B.               77,374       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Sappin, Edward J.                8,736       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE><CAPTION>
<S>                            <C>          <C>
Lyons, Charles                  12,500       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Pitcher, Frederick              12,500       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Murphy, Thomas                 300,000       No registration rights
-----------------------------------------------------------------------------------------------------
Oftring, Robert                300,000       No registration rights
-----------------------------------------------------------------------------------------------------
Para, Dale                     300,000       No registration rights
-----------------------------------------------------------------------------------------------------
Garlock, Thomas                324,581       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Spears, George                  42,553       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------
2002 GRANTS
-----------------------------------------------------------------------------------------------------
Lindae, Greg                 1,177,680       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Garlock, Thomas                 35,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Houlihan, John                  35,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Garlock, Thomas                 27,089       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Spears, George                  16,889       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Scalley, Gerard                 35,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Yules, Dick                     35,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Schneider Leasing Co            57,184       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
KFT                            250,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
Volones                        250,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Elliott, Bob                    12,500       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------
2003 GRANTS
-----------------------------------------------------------------------------------------------------
Petracca, Paul               1,111,110       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Martinelli, David               10,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
J&J Winn Family Ltd             50,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
David & Marlo Russo             65,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
Anthony Hahn                     5,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
Michael Fahey                  250,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
Ronald Feldman                  10,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
Fred Harshman                   10,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
Steve & Debbie Sullivan         35,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
J&J Winn                        50,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
J&J Winn                       200,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
J&J Winn                     1,300,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
Garlock, Thom                   35,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Kite, Bob                       35,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Houlihan, John                  35,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
vFinance Investments            20,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Jonathan Rich                    2,500       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Vincent Calicchia                2,500       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Ronald Greenspon               100,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
Michael Gibbard                  5,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
David & Marla Russo             25,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
Steve Russo                     55,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
Stephen Abdo Family Trust       10,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
Deveraux, Inc.                 300,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE><CAPTION>
<S>                           <C>           <C>
UpFront Consulting             150,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Lisa Gordon                     25,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
R. James Consulting             25,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Evergreen Investment Partners  700,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Kenzy Investment Trust         300,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Viraj Jha                      250,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
J&J Winn                     1,000,000       Demand if short form (S-3 or equivalent) is available
-----------------------------------------------------------------------------------------------------
Evergreen Investment Partners  300,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------
Kenzy Investment Trust         400,000       Piggy-Back - Subject to underwriter restriction
-----------------------------------------------------------------------------------------------------

SHARES WITH REGISTRATION RIGHTS

CLASS A
-----------------------------------------------------------------------------------------------------
Taney, Richard                 390,625       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
National Financial           4,000,000       Piggy-Back
-----------------------------------------------------------------------------------------------------
Davis, Dean                    357,143       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Greenwood Partners           1,235,219       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Alan Silberman                 390,625       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Gregg Greenberg                812,922       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Steven Cohen                   390,625       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Losanno, Richard               473,571       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Edward Gutman                  475,000       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Robert Gutman                  475,000       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Rossi, Patrick                 157,500       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Kisiel, Kevin                   62,500       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Glaude, David                  177,250       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Parrott, Tod                   125,000       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
Para, Edward                    90,000       Demand & Piggy-Back - Subject to underwriter
                                             restriction
-----------------------------------------------------------------------------------------------------
</TABLE>

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