Document:

Unassociated Document

     

    
      NEITHER
        THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR ANY SECURITY THAT MAY
        BE
        ISSUED UPON THE EXERCISE HEREOF HAS BEEN REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER ANY SUCH
        SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED
        OR
        OTHERWISE TRANSFERRED EXCEPT (1) TO COMTECH GLOBAL INVESTMENTS, INC. OR A
        BONA
        FIDE OFFICER OR PARTNER OF COMTECH GLOBAL INVESTMENTS, INC., (2) IN ACCORDANCE
        WITH THE PROVISIONS OF REGULATION S PROMULGATED UNDER THE SECURITIES ACT,
        AND
        BASED ON AN OPINION OF COUNSEL, WHICH COUNSEL AND OPINION ARE REASONABLY
        SATISFACTORY TO THE COMPANY, THAT THE PROVISIONS OF REGULATION S HAVE BEEN
        SATISFIED (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
        SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR (4) PURSUANT TO AN
        AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
        ACT AND
        APPLICABLE STATE SECURITIES LAWS, IN WHICH CASE THE HOLDER MUST, PRIOR TO
        SUCH
        TRANSFER, FURNISH TO THE COMPANY AN OPINION OF COUNSEL, WHICH COUNSEL AND
        OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES
        MAY BE
        OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED IN THE MANNER
        CONTEMPLATED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
        REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.
        HEDGING
        TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY
        NOT BE
        CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

      

      Right
        to
        Purchase up to 12,500,000 Shares of Common Stock of

      GENERAL
        COMPONENTS, INC. (subject to adjustment as provided herein)

      

      COMMON
        STOCK PURCHASE WARRANT

      
        	
                 

                No.
                  CT 01

              	
                 

                Issue
                  Date: February 8, 2007

              

      

      

      General
        Components, Inc., a corporation organized under the laws of the State of
        Nevada
        (the “Company”), hereby certifies that, for value received, Comtech Global
        Investments, Inc., or assigns (the “Holder”), is entitled, subject to the terms
        set forth below, to purchase from the Company (as defined herein) from and
        after
        the Issue Date and at any time or from time to time before 5:00 p.m., New
        York
        time, through the close of business on the date that is three (3) years from
        the
        Issue Date set forth above (the “Expiration Date”), up to twelve million five
        hundred thousand (12,500,000) fully paid and nonassessable shares of Common
        Stock (as hereinafter defined), $0.001 par value per share, at the applicable
        Exercise Price per share (as defined below). The number and character of
        such
        shares of Common Stock and the applicable Exercise Price per share are subject
        to adjustment as provided herein.

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      As
        used
        herein the following terms, unless the context otherwise requires, have the
        following respective meanings:

      

      (a) The
        term
“Company” shall include General Components, Inc. and any corporation which shall
        succeed, or assume the obligations of, General Components, Inc.
        hereunder.

      

      (b) The
        term
“Common Stock” includes (i) the Company’s Common Stock, par value $0.001 per
        share; and (ii) any other securities into which or for which any of the
        securities described in the preceding clause (i) may be converted or exchanged
        pursuant to a plan of recapitalization, reorganization, merger, sale of assets
        or otherwise.

      

      (c) The
        “Exercise Price” applicable under this Warrant shall be $0.15 on the date of
        issuance.

      

      (d) The
“Fair
        Market Value” of a share of Common Stock as of a particular date (the
“Determination Date”) shall mean (a) if the Common Stock is then listed or
        quoted on a national trading market, the volume weighted average price of
        the
        Common Stock for the 20 trading days preceding such Determination Date, (b)
        if
        the Common Stock is not then listed or quoted on a national trading market
        and
        if prices for the Common Stock are then quoted on the OTC Bulletin Board,
        the
        volume weighted average price of the Common Stock for the 20 trading days
        preceding such Determination Date on the OTC Bulletin Board, (c) if the Common
        Stock is not then listed or quoted on the OTC Bulletin Board and if prices
        for
        the Common Stock are then reported in the “Pink Sheets” published by Pink
        Sheets, LLC (or a similar organization or agency succeeding to its functions
        of
        reporting prices), the average bid price per share of the Common Stock for
        the
        20 trading days preceding such Determination Date as so reported, or (d)
        in all
        other cases, the value of the Common Stock as determined in good faith by
        the
        Company’s Board of Directors.

      

      (e) The
        term
“Other Securities” refers to any stock (other than Common Stock) and other
        securities of the Company or any other person (corporate or otherwise) which
        the
        holder of the Warrant at any time shall be entitled to receive, or shall
        have
        received, on the exercise of the Warrant, in lieu of or in addition to Common
        Stock, or which at any time shall be issuable or shall have been issued in
        exchange for or in replacement of Common Stock or Other Securities pursuant
        to
        Section 3 or otherwise.

       

      
        1. Exercise
          of Warrant.

        

        1.1. Number
          of Shares Issuable upon Exercise.
          From
          and after the Issue Date through and including the Expiration Date, the
          Holder
          shall be entitled to receive, upon exercise of this Warrant in whole or
          in part,
          by delivery of an original or fax copy of an exercise notice in the form
          attached hereto as Exhibit A (the “Exercise Notice”), up to that number of
          shares of Common Stock of the Company referred to above, subject to adjustment
          pursuant to Section 4 and subject to the Company having sufficient authorized
          shares of Common Stock, provided,
          however,
          within
          5 Trading Days of the date said Exercise Notice is delivered to the Company,
          the
          Holder shall have surrendered this Warrant to the Company and the Company
          shall
          have received payment of the aggregate Exercise Price of the shares thereby
          purchased by wire transfer or cashier’s check drawn on a United States
          bank.

         

      

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     
      2. Procedure
        for Exercise.

      

      2.1. Delivery
        of Stock Certificates, Etc., on Exercise.
        The
        Company agrees that the shares of Common Stock purchased upon exercise of
        this
        Warrant shall be deemed to be issued to the Holder as the record owner of
        such
        shares as of the close of business on the date on which this Warrant shall
        have
        been surrendered and payment made for such shares in accordance herewith.
        As
        soon as practicable after the exercise of this Warrant in full or in part,
        and
        in any event within five (5) business days thereafter, the Company at its
        expense (including the payment by it of any applicable issue taxes) will
        cause
        to be issued in the name of and delivered to the Holder, or as such Holder
        (upon
        payment by such Holder of any applicable transfer taxes) may direct in
        compliance with applicable securities laws, a certificate or certificates
        for
        the number of duly and validly issued, fully paid and nonassessable shares
        of
        Common Stock (or Other Securities) to which such Holder shall be entitled
        on
        such exercise, plus, in lieu of any fractional share to which such holder
        would
        otherwise be entitled, cash equal to such fraction multiplied by the then
        Fair
        Market Value of one full share, together with any other stock or other
        securities and property (including cash, where applicable) to which such
        Holder
        is entitled upon such exercise pursuant to Section 1 or otherwise.

      

      2.2. Exercise.
        Payment
        may be made either in cash or by certified or official bank check payable
        to the
        order of the Company equal to the applicable aggregate Exercise Price for
        the
        number of Common Shares specified in such Exercise Notice (as such exercise
        number shall be adjusted to reflect any adjustment in the total number of
        shares
        of Common Stock issuable to the Holder per the terms of this Warrant) and
        the
        Holder shall thereupon be entitled to receive the number of duly authorized,
        validly issued, fully-paid and non-assessable shares of Common Stock (or
        Other
        Securities) determined as provided herein.

      

      3. Effect
        of Reorganization, Etc.; Adjustment of Exercise Price.

      

      3.1. Reorganization,
        Consolidation, Merger, Etc.
        In case
        at any time or from time to time, the Company shall (a) effect a reorganization,
        (b) consolidate with or merge into any other person, or (c) transfer all
        or
        substantially all of its properties or assets to any other person under any
        plan
        or arrangement contemplating the dissolution of the Company, then, in each
        such
        case, as a condition to the consummation of such a transaction, proper and
        adequate provision shall be made by the Company whereby the Holder, on the
        exercise hereof as provided in Section 1 at any time after the consummation
        of
        such reorganization, consolidation or merger or the effective date of such
        dissolution, as the case may be, shall receive, in lieu of the Common Stock
        (or
        Other Securities) issuable on such exercise prior to such consummation or
        such
        effective date, the stock and other securities and property (including cash)
        to
        which such Holder would have been entitled upon such consummation or in
        connection with such dissolution, as the case may be, if such Holder had
        so
        exercised this Warrant, immediately prior thereto, all subject to further
        adjustment thereafter as provided in Section 4.

       

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
       

      3.2. Continuation
        of Terms.
        Upon
        any reorganization, consolidation, merger or transfer (and any dissolution
        following any transfer) referred to in this Section 3, this Warrant shall
        continue in full force and effect and the terms hereof shall be applicable
        to
        the shares of stock and other securities and property receivable on the exercise
        of this Warrant after the consummation of such reorganization, consolidation
        or
        merger or the effective date of dissolution following any such transfer,
        as the
        case may be, and shall be binding upon the issuer of any such stock or other
        securities, including, in the case of any such transfer, the person acquiring
        all or substantially all of the properties or assets of the Company, whether
        or
        not such person shall have expressly assumed the terms of this Warrant as
        provided in Section 3.1. In the event this Warrant does not continue in full
        force and effect after the consummation of the transactions described in
        this
        Section 3, then the Company’s securities and property (including cash, where
        applicable) receivable by the Holder will be delivered to the
        Holder.

      

      4. Extraordinary
        Events Regarding Common Stock.
        In the
        event that the Company shall (a) issue additional shares of the Common Stock
        as
        a dividend or other distribution on outstanding Common Stock or any preferred
        stock issued by the Company (b) subdivide its outstanding shares of Common
        Stock, or (c) combine its outstanding shares of the Common Stock into a
        smaller number of shares of the Common Stock, then, in each such event, the
        Exercise Price shall, simultaneously with the happening of such event, be
        adjusted by multiplying the then Exercise Price by a fraction, the numerator
        of
        which shall be the number of shares of Common Stock outstanding immediately
        prior to such event and the denominator of which shall be the number of shares
        of Common Stock outstanding immediately after such event, and the product
        so
        obtained shall thereafter be the Exercise Price then in effect. The Exercise
        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 4. The
        number
        of shares of Common Stock that the Holder shall thereafter, on the exercise
        hereof as provided in Section 1, be entitled to receive shall be adjusted
        to a
        number determined by multiplying the number of shares of Common Stock that
        would
        otherwise (but for the provisions of this Section 4) be issuable on such
        exercise by a fraction of which (a) the numerator is the Exercise Price that
        would otherwise (but for the provisions of this Section 4) be in effect,
        and (b)
        the denominator is the Exercise Price in effect on the date of such exercise
        (taking into account the provisions of this Section 4).

      

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

      

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      6. Certificate
        as to Adjustments.
        In each
        case of any adjustment or readjustment in the shares of Common Stock (or
        Other
        Securities) issuable on the exercise of this Warrant, the Company at its
        expense
        will promptly cause its Chief Financial Officer or other appropriate designee
        to
        compute such adjustment or readjustment in accordance with the terms of this
        Warrant and prepare a certificate setting forth such adjustment or readjustment
        and showing in detail the facts upon which such adjustment or readjustment
        is
        based, including a statement of (a) the consideration received or
        receivable by the Company for any additional shares of Common Stock (or Other
        Securities) issued or sold or deemed to have been issued or sold, (b) the
        number of shares of Common Stock (or Other Securities) outstanding or deemed
        to
        be outstanding, and (c) the Exercise Price and the number of shares of Common
        Stock to be received upon exercise of this Warrant, in effect immediately
        prior
        to such adjustment or readjustment and as adjusted or readjusted as provided
        in
        this Warrant. The Company will forthwith mail a copy of each such certificate
        to
        the Holder and any Warrant agent of the Company (appointed pursuant to Section
        11 hereof)..

      

      7. Registration
        Rights.
        The
        Company shall treat the shares of Common Stock issuable upon the exercise
        of
        this Warrant as entitled to the same rights to require the filing of a
        registration statement under the Securities Act of 1933, as amended with
        the
        Commission as the shares of Common Stock as are issuable upon exercise of the
        warrants sold to investors in the Company’s contemplated issuance of its Series
        B Preferred Stock. The Company hereby agrees to register any or all of the
        shares of Common Stock issuable upon the exercise hereof on the same terms
        and
        conditions (including with respect to notice periods, provision of information,
        payment of expenses and rights to indemnification) as are set forth in the
        registration rights agreement relating to such warrants.

      

      8. Redemption
        of Warrants.
        Notwithstanding anything herein to the contrary, if after the twelve month
        anniversary of the Issue Date, the closing bid price for the Common Stock
        for
        each of any 20 consecutive trading days (“Threshold
        Period”),
        which
        20 consecutive trading day period shall have commenced only after such twelve
        month anniversary and during which Threshold Period the average daily trading
        volume of the Common Stock exceeds 30,000, exceeds the then effective Exercise
        Price by 200% (subject to adjustment for any stock dividend, stock split,
        stock
        combination or other similar event affecting the Common Stock during such
        20
        trading day period), the Company may, within 1 Trading Day after any such
        Threshold Period, deliver a written notice to all Holders (a “Redemption
        Notice”
and
        the
        date such notice is received by the Holders, the “Redemption
        Notice Date”)
        of its
        election to redeem this Warrant at a redemption price of $.01 per Warrant
        on a
        date that shall be no earlier than 20 trading days after the Redemption Notice
        Date.

      

      9. Status
        of Stock Issuable on Exercise of Warrant.
        The
        Company covenants that all shares of Common Stock which may be issued upon
        the
        exercise of this Warrant will, upon exercise, be duly authorized, validly
        issued, fully paid and nonassessable and free from all taxes, liens and charges
        in respect of the issue thereof (other than taxes in respect of any transfer
        occurring contemporaneously with such issue).

       

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    
      10. Assignment;
        Exchange of Warrant.
        Subject
        to compliance with any applicable securities laws and the conditions set
        forth
        in any restrictive legend appearing on the face hereof (provided, however
        that a
        transfer to Comtech Global Investments, Inc. or a bona fide officer or partner
        of Comtech Global Investments, Inc. shall not require the delivery of an
        opinion
        of counsel, but appropriate documentation to confirm that such transfer is
        to an
“accredited investor” as defined in Regulation D under the Securities Act of
        1933 acquiring such securities without a view towards the distribution thereof
        in violation of such Act), this Warrant and all rights hereunder are
        transferable, in whole or in part, upon surrender of this Warrant at the
        principal office of the Company, together with a written assignment of this
        Warrant substantially in the form attached hereto as Exhibit B duly executed
        by
        the Holder or its agent or attorney and funds sufficient to pay any transfer
        taxes payable upon the making of such transfer. Upon such surrender and,
        if
        required, such payment, the Company shall execute and deliver a new Warrant
        or
        Warrants in the name of the assignee or assignees and in the denomination
        or
        denominations specified in such instrument of assignment, and shall issue
        to the
        assignor a new Warrant evidencing the portion of this Warrant not so assigned,
        and this Warrant shall promptly be cancelled. A Warrant, if properly assigned,
        may be exercised by a new holder for the purchase of Warrant Shares without
        having a new Warrant issued.

      

      11. Replacement
        of Warrant.
        On
        receipt of evidence reasonably satisfactory to the Company of the loss, theft,
        destruction or mutilation of this Warrant and, in the case of any such loss,
        theft or destruction of this Warrant, on delivery of an indemnity agreement
        or
        security reasonably satisfactory in form and amount to the Company or, in
        the
        case of any such mutilation, on surrender and cancellation of this Warrant,
        the
        Company at its expense will execute and deliver, in lieu thereof, a new Warrant
        of like tenor.

      

      12. Warrant
        Agent.
        The
        Company may, by written notice to the each Holder of the Warrant, appoint
        an
        agent for the purpose of issuing Common Stock (or Other Securities) on the
        exercise of this Warrant pursuant to Section 1, and replacing this Warrant
        pursuant to Section 8, or any of the foregoing, and thereafter any such
        issuance, exchange or replacement, as the case may be, shall be made at such
        office by such agent.

      

      13. Transfer
        on the Company’s Books.
        Until
        this Warrant is transferred on the books of the Company, the Company may
        treat
        the registered Holder hereof as the absolute owner hereof for all purposes,
        notwithstanding any notice to the contrary.

      

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

      

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

      

      16. Notices,
        Etc.
        All
        notices and other communications from the Company to the Holder shall be
        mailed
        by first class registered or certified mail, postage prepaid, at such address
        as
        may have been furnished to the Company in writing by such Holder or, until
        any
        such Holder furnishes to the Company an address, then to, and at the address
        of,
        the last Holder who has so furnished an address to the
        Company.

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      17. Miscellaneous.
        This
        Warrant and any term hereof may be changed, waived, discharged or terminated
        only by an instrument in writing signed by the party against which enforcement
        of such change, waiver, discharge or termination is sought. THIS WARRANT
        SHALL
        BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF STATE OF NEW
        YORK
        WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. ANY ACTION BROUGHT CONCERNING
        THE TRANSACTIONS CONTEMPLATED BY THIS WARRANT SHALL BE BROUGHT ONLY IN THE
        STATE
        COURTS OF NEW YORK OR IN THE FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK;
        PROVIDED, HOWEVER, THAT THE HOLDER MAY CHOOSE TO WAIVE THIS PROVISION AND
        BRING
        AN ACTION OUTSIDE THE STATE OF NEW YORK. The individuals executing this Warrant
        on behalf of the Company agree to submit to the jurisdiction of such courts
        and
        waive trial by jury. The prevailing party shall be entitled to recover from
        the
        other party its reasonable attorneys’ fees and costs. In the event that any
        provision of this Warrant 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 enforceability
        of
        any other provision of this Warrant. The headings in this Warrant are for
        purposes of reference only, and shall not limit or otherwise affect any of
        the
        terms hereof. The invalidity or unenforceability of any provision hereof
        shall
        in no way affect the validity or enforceability of any other provision hereof.
        The Company acknowledges that legal counsel participated in the preparation
        of
        this Warrant 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 Warrant to favor any party against the other
        party.

      

      [BALANCE
        OF PAGE INTENTIONALLY LEFT BLANK;

      SIGNATURE
        PAGE FOLLOWS]

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
 

    IN
      WITNESS WHEREOF, the Company has executed this Warrant as of the date first
      written above.

     

    
       

      
        	 	 	 
	 	GENERAL
                COMPONENTS, INC.
	
                WITNESS:

              	 
 	 
 
	 	By:  	/s/ 
	 	
                

              
	 	
                Name: 

                Title: 

              

      

       

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

    

    FORM
      OF SUBSCRIPTION

    (To
      Be
      Signed Only On Exercise Of Warrant)

    
TO:        
General
      Components,
      Inc.

     

    Attention: Chief
      Financial Officer

    

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant hereby
      irrevocable elects to purchase ___ shares of Common Stock covered by such
      Warrant.

    

    The
      undersigned herewith makes payment of the full Exercise Price for such shares
      at
      the price per share provided for in such Warrant, which is $___________. Such
      payment takes the form of lawful money of the United States.

    

    The
      undersigned is an “accredited investor” as defined in Regulation D or a “non-US
      person” as defined in Regulation S, each as promulgated under the Securities Act
      of 1933, as amended.

    

    The
      undersigned represents and warrants that all offers and sales by the undersigned
      of the securities issuable upon exercise of the within Warrant shall be made
      pursuant to registration of the Common Stock under the Securities Act of 1933,
      as amended (the “Securities Act”) or pursuant to an exemption from registration
      under the Securities Act.

     

    
      	 

              Dated: 

            	
               

               

            	 	 
	 	 	 	
              (Signature
                must conform to name of holder as specified on the face of the
                Warrant)

            
	 	 	 	 	 
	 	 	 	
              Address: 

            	 
	 	 	 	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      B

    

    

    FORM
      OF ASSIGNMENT

    

    (To
      assign the foregoing warrant, execute

    this
      form
      and supply required information. 

    Do
      not
      use this form to exercise the warrant.)

    

    

    

    FOR
      VALUE
      RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
      assigned to

    

    

    
      	 	 whose
              address is 
	 	 
	 	 
	
               Dated:

            	 

    

     

    
      
      

      
        	 Holder’s
                Signature:	 	 
	 Holder’s
                Address:	 	 

      

    

     

    
 

    
      	 Signature
              Guaranteed:	 

    

    

    
 

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust company. Officers of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing
      Warrant.

    
 

    
      
        
        

      

      
        B-1Unassociated Document

    SUBSCRIPTION
      AGREEMENT

     

    Subscription
      Agreement, dated February 8, 2007, between GENERAL COMPONENTS, INC., a Nevada
      corporation having its business address at Suite 1503, Sino Plaza 255-257,
      Gloucester Road, Causeway Bay, Hong Kong (the “Company”)
      and
      certain investors listed on the signature pages hereto (the “Purchasers”).

     

    ARTICLE
      I

     

    PURCHASE,
      SALE AND TERMS OF SHARES

     

    1.01  The
      Shares. Each Purchaser agrees to purchase shares of Series B Preferred Stock
      of
      the Company (the “Shares”),
      at a
      purchase price of $50,000 per share, in the amount set forth on such Purchaser’s
      signature page hereto, for a total of $7,100,000 in aggregate Subscription
      Amounts.

     

    1.02  Closing.
      The Company agrees to issue, and sell to the Purchasers and, in consideration
      of
      and in express reliance upon the representations, warranties, covenants, terms
      and conditions of this Agreement, Purchasers agree to purchase the Shares as
      described in Section 1.01. The closing (the “Closing”)
      of the
      purchase and sale of the Shares to be acquired by the Purchasers from the
      Company under this Agreement shall take place at the offices of Loeb & Loeb
      LLP, 345 Park Avenue, New York, NY 10154, at 10:00 a.m., New York City time
      as
      soon as practicable following the date on which all of the closing conditions
      set forth in Article II have been satisfied or waived (the “Closing
      Date”).
      At
      the Closing, the Purchasers will make a payment of their respective Subscription
      Amounts, directly by wire transfer or will cause Loeb & Loeb LLP, as escrow
      agent, to deliver a wire transfer of such Subscription Amount to the account
      of
      the Company. Each Purchaser and each Convertible Note Investor that has
      acknowledged and signed this Agreement shall also, at the Closing, deliver
      to
      the Company, signed and completed copies of, (i) if such Purchaser or
      Convertible Note Investor is a “United States person” for U.S. federal income
      tax purposes, a Form W-9 in accordance with the instructions accompanying the
      form or (ii) if such Purchaser or Convertible Note Investor is a nonresident
      alien for U. S. federal income tax purposes, a Form W-8BEN in accordance with
      the instructions accompanying the form, if applicable (or such other applicable
      Form W-8). Subsequent to the Closing, the Company will issue certificates
      representing the Series B Preferred Stock to the Purchasers of the Shares,
      evidencing the purchase by the Purchasers of the number of Shares corresponding
      to their respective Subscription Amounts.

     

    1.03  Representations
      by the Purchasers. Each Purchaser make the following representations and
      warranties to the Company:

     

    (i)  None
      of
      the Shares (or shares of Common Stock that may be issued upon the conversion
      thereof or in payment of dividends thereon) have been registered under the
      Securities Act of 1933, as amended (the “Securities
      Act”),
      or
      any state securities laws. The Purchaser understands that the offering and
      sale
      of the Shares is intended to be exempt from registration under the Securities
      Act, by virtue of Section 4(2) thereof and the provisions of Regulation D
      promulgated thereunder, or not subject to such requirement, by virtue of
      Regulation S promulgated under the Securities Act, based, in part, upon the
      representations, warranties and agreements of the Purchaser contained in this
      Subscription Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (ii)  The
      Purchaser has carefully reviewed the reports and other documents filed by the
      Company from time to time with the Securities and Exchange Commission (the
      “SEC
      Reports”)
      and
      all other documents requested by the Purchaser (the “Requested Documents”) and
      understands the information contained therein.

     

    (iii)  Neither
      the Securities and Exchange Commission nor any state securities commission
      has
      approved the Shares, or passed upon or endorsed the merits of the offer or
      sale
      thereof.

     

    (iv)  All
      documents, records and books pertaining to the investment in the Shares
      (including, without limitation, the Transaction Documents) have been made
      available for inspection by the Purchaser and its representatives. Purchaser
      hereby acknowledges that all such information is confidential and Purchaser
      shall not disclose any such confidential information to any third party other
      than as set forth herein.

     

    (v)  The
      Purchaser has had a reasonable opportunity to ask questions of and receive
      answers from a person or persons acting on behalf of the Company concerning
      the
      offering of the Shares and the business, financial condition, results of
      operations and prospects of the Company, and all such questions have been
      answered to the full satisfaction of the Purchaser.

     

    (vi)  In
      evaluating the suitability of an investment in the Company, the Purchaser has
      not relied upon any representation or other information (oral or written) other
      than as stated in the SEC Reports and the Requested Documents.

     

    (vii)  The
      Purchaser is unaware of, is in no way relying on, and did not become aware
      of
      the offering of the Shares through or as a result of, any form of general
      solicitation or general advertising as those terms are used in Regulation D
      under the Securities Act, including, without limitation, any article, notice,
      advertisement or other communication published in any newspaper, magazine or
      similar media or broadcast over television or radio, in connection with the
      offering and sale of the Shares and is not subscribing for Shares and did not
      become aware of the offering of the Shares through or as a result of any seminar
      or meeting to which the Purchaser was invited by, or any solicitation of a
      subscription by, a person not previously known to the Purchaser in connection
      with investments in the Shares generally.

     

    (viii)  The
      Purchaser has taken no action which would give rise to any claim by any person
      for brokerage commissions, finders’ fees or the like relating to this
      Subscription Agreement or the transactions contemplated hereby.

     

    (ix)  The
      Purchaser has such knowledge and experience in financial, tax, and business
      matters, and, in particular, investments in securities similar to the Shares,
      so
      as to enable the Purchaser to utilize the information made available to it
      in
      connection with the offering of the Shares to evaluate the merits and risks
      of
      an investment in the Shares and the Company and to make an informed investment
      decision with respect thereto.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (x)  The
      Purchaser is not relying on the Company or any of its employees, officers or
      agents with respect to the legal, tax, economic and related considerations
      as to
      an investment in the Shares, and the Purchaser has relied on the advice of,
      or
      has consulted with, only his own advisors.

     

    (xi)  The
      Purchaser is acquiring the Shares solely for the Purchaser's own account for
      investment and not with a view to resale, assignment or distribution thereof,
      in
      whole or in part. The Purchaser has no agreement or arrangement, formal or
      informal, with any person to sell or transfer all or any part of the Shares,
      and
      the Purchaser has no plans to enter into any such agreement or arrangement.
      The
      Purchaser will not engage in hedging transactions with respect to the Shares
      or
      the securities received upon exchange of the Shares unless in compliance with
      the registration requirements of the Securities Act.

     

    (xii)  The
      Purchaser must bear the substantial economic risks of the investment in the
      Shares indefinitely because none of the Shares (or shares of Common Stock that
      may be issued upon the conversion thereof) may be sold, hypothecated or
      otherwise disposed of unless subsequently registered under the Securities Act
      and applicable state securities laws or an exemption from such registration
      is
      available. Subject to the terms hereunder, legends shall be placed on the
      Securities to the effect that they have not been registered under the Securities
      Act or applicable state securities laws and appropriate notations thereof will
      be made in the Company’s records. Stop transfer instructions will be placed with
      the transfer agent of the shares of Common Stock. Although the Company has
      the
      obligation to register for resale the securities received upon conversion of
      the
      shares of Series B Preferred Stock (see the Registration Rights Agreement),
      there can be no assurance that such registration will be completed within the
      time frames required by the Company, or at all. It is not anticipated that
      there
      will be any active market for resale of the Securities, and such securities
      will
      not be freely transferable at any time in the foreseeable future, until the
      registration statement filed pursuant to the Registration Rights Agreement
      is
      declared effective.

     

    (xiii)  The
      Purchaser has adequate means of providing for its current financial needs and
      foreseeable contingencies and has no need for liquidity of the investment in
      the
      Shares for an indefinite period of time.

     

    (xiv)  The
      Purchaser is aware that an investment in the Shares involves a number of very
      significant risks and has carefully read and considered the matters set forth
      under the caption “Risk Factors” in the SEC Reports.

     

    (xv)  The
      Purchaser meets the requirements of at least one of the suitability standards
      for an “accredited investor” as set forth on the Investor Certification
      contained herein or is a “non-US Person” as set forth on such Investor
      Certification.

     

    (xvi)  The
      Purchaser: (i) if a natural person, represents that the Purchaser has reached
      the age of 21 and has full power and authority to execute and deliver this
      Subscription Agreement and all other related agreements or certificates and
      to
      carry out the provisions hereof and thereof; (ii) if a corporation, partnership,
      limited liability company or partnership, association, joint stock company,
      trust, unincorporated organization or other entity, (A) such entity was not
      formed for the specific purpose of acquiring the Shares, (B) such entity is
      duly
      organized, validly existing and in good standing under the laws of the
      jurisdiction of its organization, (C) the consummation of the transactions
      contemplated hereby is authorized by, and will not result in a violation of
      law
      or its charter or other organizational documents, (D) such entity has full
      power
      and authority to execute and deliver this Subscription Agreement and all other
      related agreements or certificates and to carry out the provisions hereof and
      thereof and to purchase and hold the Shares (and the shares of Common Stock
      that
      are issuable upon the conversion thereof), (E) the execution and delivery of
      this Subscription Agreement has been duly authorized by all necessary action,
      and (F) this Subscription Agreement has been duly executed and delivered on
      behalf of such entity and is a legal, valid and binding obligation of such
      entity; and (iii) if executing this Subscription Agreement in a representative
      or fiduciary capacity, such representative has full power and authority to
      execute and deliver this Subscription Agreement in such capacity and on behalf
      of the subscribing individual, ward, partnership, trust, estate, corporation,
      limited liability company or limited liability partnership, or other entity
      for
      whom such representative is executing this Subscription Agreement, and such
      individual, ward, partnership, trust, estate, corporation, limited liability
      company or partnership, or other entity has full right and power to perform
      this
      Subscription Agreement and make an investment in the Company, and that this
      Subscription Agreement constitutes a legal, valid and binding obligation of
      such
      Purchaser. The execution and delivery of this Subscription Agreement will not
      violate or be in conflict with any order, judgment, injunction, agreement or
      controlling document to which the Purchaser is a party or by which it is
      bound.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (xvii)  The
      Purchaser had the opportunity to obtain any additional information, to the
      extent the Company had such information in its possession or could acquire
      it
      without unreasonable effort or expense, necessary to verify the accuracy of
      the
      information contained in the SEC Reports and all documents received or reviewed
      in connection with the purchase of the Shares and the opportunity to have
      representatives of the Company provide it with such additional information
      regarding the terms and conditions of this particular investment and the
      financial condition, results of operations, business and prospects of the
      Company deemed relevant by the Purchaser and all such requested information,
      to
      the extent the Company had such information in its possession or could acquire
      it without unreasonable effort or expense, has been provided to Purchaser to
      its
      full satisfaction.

     

    (xviii)  The
      Purchaser represents to the Company that any information which the undersigned
      has heretofore furnished or furnishes herewith to the Company is complete and
      accurate and may be relied upon by the Company in determining the availability
      of an exemption from registration under Federal and state securities laws in
      connection with the offering of the Shares. The Purchaser further represents
      and
      warrants that it will notify and supply corrective information to the Company
      immediately upon the occurrence of any change therein occurring prior to the
      Company's issuance of the Shares.

     

    (xix)  The
      Purchaser has a sufficient net worth to sustain a loss of its entire investment
      in the Company in the event such a loss should occur. The Purchaser’s overall
      commitment to investments which are not readily marketable is not excessive
      in
      view of its net worth and financial circumstances and the purchase of the Shares
      will not cause such commitment to become excessive. The investment is a suitable
      one for the Purchaser.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (xx)  No
      oral
      or written representations have been made, or oral or written information
      furnished, to the Purchaser in connection with the offering of the Shares or
      as
      to the Company, which are in any way inconsistent with the information contained
      in the SEC Reports.

     

    (xxi)  The
      Purchaser understands that, until such securities have been registered under
      the
      Securities Act, any certificates issued to represent the Shares and any shares
      of Common Stock issuable upon the conversion thereof will bear a restrictive
      legend substantially to the following effect:

    

    NEITHER
      THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
      HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
      SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
      TO
      SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
      COMPANY. 

     

     

    (xxii)  Opinion.
      The Purchasers will not transfer any or all of the Shares pursuant to Regulation
      S or absent an effective registration statement under the Securities Act and
      applicable state securities law covering the disposition of Purchaser’s Shares,
      without first providing the Company with an opinion of counsel (which counsel
      and opinion are reasonably satisfactory to the Company) to the effect that
      such
      transfer will be made in compliance with Regulation S or will be exempt from
      the
      registration and the prospectus delivery requirements of the Securities Act
      and
      the registration or qualification requirements of any applicable U.S. state
      securities laws.

     

    (xxiii)  The
      Purchasers nor any of their respective Affiliates have engaged, or will engage
      in any transactions in the securities of the Company (including, without
      limitations, any Short Sales (as defined below) involving the Company’s
      securities) since the time that the Purchasers were first contacted by the
      Company or its representatives regarding the transactions contemplated by this
      Agreement. “Short
      Sales”
shall
      include, without limitation, all “short sales” as defined in Rule 200
      promulgated under Regulation SHO under the Exchange Act and all types of direct
      and indirect stock pledges, forward sale contracts, options, puts, calls, swaps
      and similar arrangements (including on a total return basis), and sales and
      other transactions through non-US broker dealers or foreign regulated
      brokers.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE
      II

    CONDITIONS
      TO PURCHASERS’ OBLIGATIONS

     

    The
      obligations of each Purchaser to purchase and pay for the Shares to be purchased
      by it at the Closing, is subject to the following conditions:

     

    2.01  Representations
      and Warranties. Each of the representations and warranties of the Company set
      forth in Article III hereof shall be true, accurate and correct on the date
      of
      the Closing as if made on the date of the Closing.

     

    2.02  Documentation
      at Closing. The Purchasers shall have received, prior to or at the Closing,
      all
      of the following materials, each in form and substance satisfactory to the
      Purchasers and their counsel, if any, and each of the following events shall
      have occurred, or each of the following documents shall have been delivered,
      prior to or simultaneous with such Closing:

     

    (a)  Copies
      of
      (1) the Articles of Incorporation of the Company, as amended or restated to
      date, together with such evidence as may be available of the filing thereof;
      (2)
      the resolutions of the Board of Directors providing for the approval of this
      Agreement, the issuance of the Shares, and all other agreements or matters
      contemplated hereby or executed in connection herewith; and (3) the By-laws
      of
      the Company, all of which shall have been certified by the Secretary of the
      Company, as of the date of each such Closing, to be true, complete and correct;
      and certified copies of all documents evidencing other necessary corporate
      or
      other action and governmental approvals, if any, required to be obtained at
      or
      prior to the Closing with respect to this Agreement and the issuance of the
      Shares.

     

    (b)  The
      Company shall have delivered the other documents, instruments or certificates
      to
      be delivered pursuant to this Agreement by the Company or any of its officers,
      including with respect to the incumbency of such officers, and the true specimen
      signatures of such officers.

     

    (c)  A
      certificate of the President of the Company, dated the date of the Closing,
      stating that the representations and warranties of the Company contained in
      Article III hereof and otherwise made by the Company in writing in connection
      with the transactions contemplated hereby are true and correct as of the time
      of
      the Closing and that all obligations and covenants in this Agreement required
      to
      be performed prior to or at the Closing have been performed as of the time
      of
      Closing.

     

    (d)  The
      Company shall have obtained any consents or waivers necessary to be obtained
      at
      or prior to the Closing to execute and deliver this Agreement and the other
      agreements and instruments executed and delivered by the Company in connection
      herewith, to issue the Shares and to carry out the transactions contemplated
      hereby and thereby, and such consents and waivers shall be in full force and
      effect at the Closing. All corporate and other action and governmental filings
      necessary to effectuate the terms of this Agreement and the other agreements
      and
      instruments executed and delivered by the Company in connection herewith and
      the
      issuance of the Shares shall have been made or taken.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE
      III

     

    REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

     

    The
      Company represents and warrants as follows:

     

    3.01  Organization
      and Qualification. The Company is duly organized, validly existing and in good
      standing under the laws of Nevada, has all requisite authority and power
      (corporate and other), governmental licenses, authorizations, consents and
      approvals to carry on its business as presently conducted and to own, hold
      and
      operate its properties and assets as now owned, held and operated by it, except
      where the failure to be so organized, existing and in good standing, or to
      have
      such authority and power, governmental licenses, authorizations, consents or
      approvals would not have a Material Adverse Effect. The Company is duly
      qualified, licensed or domesticated as a foreign corporation in good standing
      in
      each jurisdiction wherein the nature of its activities or its properties owned,
      held or operated makes such qualification, licensing or domestication necessary,
      except where the failure to be so duly qualified, licensed or domesticated
      and
      in good standing would not have a Material Adverse Effect.

     

    3.02  Subsidiaries.
      All of the direct and indirect subsidiaries (as defined in Rule 12b-2 under
      the
      Exchange Act) of the Company are set forth on Schedule 3.02. Schedule 3.02
      accurately sets forth the Company’s approximate percentage ownership interest in
      each such subsidiary named therein.

     

    3.03  Organizational
      Documents. True, correct and complete copies of the organizational documents
      of
      the Company have been included in the Company SEC Reports, and no action has
      been taken to amend or repeal such organizational documents. The Company is
      not
      in violation or breach of any of the provisions of its organizational documents,
      except for such violations or breaches as would not have a Material Adverse
      Effect.

     

    3.04  Authorization.
      Subject to its receipt of stockholder approval in the manner required by law,
      the Company has all requisite authority and power (corporate and other),
      governmental licenses, authorizations, consents and approvals to enter into
      this
      Subscription Agreement and each of the Transaction Documents to which the
      Company is a party, to consummate the transactions contemplated by this
      Subscription Agreement and each of the Transaction Documents to which the
      Company is a party and to perform its obligations under this Agreement and
      each
      of the Transaction Documents to which the Company is a party. The execution,
      delivery and performance by the Company of this Subscription Agreement and
      each
      of the Transaction Documents to which the Company is a party have been duly
      authorized by the Board and do not require from the Company Board any consent
      or
      approval that has not been validly and lawfully obtained except for approval
      by
      the Company stockholders. The execution, delivery and performance by the Company
      of this Subscription Agreement and each of the Transaction Documents to which
      the Company is a party requires no authorization, consent, approval, license,
      exemption of or filing or registration with any governmental
      authority.

     

    3.05  No
      Violation. Neither the execution nor the delivery by the Company of this
      Subscription Agreement or any Transaction Document to which the Company is
      a
      party, nor the consummation or performance by the Company of the transactions
      contemplated hereby or thereby will, directly or indirectly, (a) contravene,
      conflict with, or result in a violation of any provision of the organizational
      documents of the Company; (b) contravene, conflict with, constitute a default
      (or an event or condition which, with notice or lapse of time or both, would
      constitute a default) under, or result in the termination or acceleration of,
      or
      result in the imposition or creation of any lien under, any agreement or
      instrument to which the Company is a party or by which the properties or assets
      of the Company is bound; (c) contravene, conflict with, or result in a
      violation of, any law or order to which the Company, or any of the properties
      or
      assets owned or used by the Company, may be subject; or (d) contravene, conflict
      with, or result in a violation of, the terms or requirements of, or give any
      governmental authority the right to revoke, withdraw, suspend, cancel, terminate
      or modify, any licenses, permits, authorizations, approvals, franchises or
      other
      rights held by the Company or that otherwise relate to the business of, or
      any
      of the properties or assets owned or used by, the Company, except, in the case
      of clause (b), (c), or (d), for any such contraventions, conflicts, violations,
      or other occurrences as would not have a Material Adverse Effect.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.06  Binding
      Obligations. Assuming this Subscription Agreement and the Transaction Documents
      have been duly and validly authorized, executed and delivered by the parties
      thereto other than the Company, this Subscription Agreement and each of the
      Transaction Documents to which the Company is a party are duly authorized,
      executed and delivered by the Company and constitutes the legal, valid and
      binding obligations of the Company, enforceable against the Company in
      accordance with their respective terms, except as such enforcement is limited
      by
      general equitable principles, or by bankruptcy, insolvency and other similar
      laws affecting the enforcement of creditors rights generally.

     

    3.07  Securities
      Laws. Assuming the accuracy of the representations and warranties of the
      Purchasers contained in the Investor Certification, the issuance of the Shares
      pursuant to this Subscription Agreement will be, when issued and paid for in
      accordance with the terms of this Subscription Agreement, issued in accordance
      with exemptions from the registration and prospectus delivery requirements
      of
      the Securities Act and the registration permit or qualification requirements
      of
      all applicable state securities laws.

     

    3.08  Capitalization
      and Related Matters.

     

    (i)  Capitalization.
      The
      authorized capital stock of the Company consists of 280 million shares,
      consisting of 280 million shares of Company Common Stock and 10 million shares
      of preferred stock, of which approximately 279,997,207 shares of Company Common
      Stock are issued and outstanding, no shares of preferred stock are outstanding
      and approximately 287,132,793 shares of Common Stock and 120 shares of Series
      B
      Preferred Stock are issuable pursuant to outstanding options, warrants, purchase
      agreements, participation agreements, subscription rights, conversion rights,
      exchange rights or other securities or contracts. All issued and outstanding
      shares of the Company’s Common Stock are duly authorized, validly issued, fully
      paid and nonassessable, and have not been issued in violation of any preemptive
      or similar rights. There are no outstanding stockholders’ agreements, voting
      trusts or arrangements, registration rights agreements, rights of first refusal
      or other contracts pertaining to the capital stock of the Company, other than
      with respect to the 12,500,000 shares of Common Stock issuable pursuant to
      a
      warrant to be issued to Comtech Global Investments, Inc. (“Comtech”)
      pursuant to an Engagement Letter between Comtech and the Company (the
“Comtech
      Warrant”),
      the
      16,250,000 shares of Common Stock issuable pursuant to a warrant to be issued
      to
      Broadband Capital Management LLC (“Broadband”)
      pursuant to an Engagement Letter between Broadband and the Company (the
“Broadband
      Warrant”,
      and
      together with the Comtech Warrant, the “Warrants”)
      and
      the 30,000,000 shares of Common Stock issuable pursuant to a warrant (the
“Beijing
      HTW Warrants”)
      to be
      issued to Beijing Hi-Tech Wealth Investment and Development Company Limited
      (“Beijing
      HTW”)
      pursuant to an Asset Purchase Agreement dated as of the date hereof among
      Beijing HTW, the Company and Magical Insight Investments Limited. The Warrants
      expire three years from the issue date thereof and the exercise price applicable
      under such Warrants will be $0.15 per share on the date of issuance and the
      Beijing HTW Warrants will have a nominal exercise price and will be exercisable
      at any time after the consummation a 1 for 10 reverse split of its outstanding
      common shares by the Company. To the best knowledge of the Company, the issuance
      of all of the shares of Company’s Common Stock described in this Section 3.08
      have been in compliance with U.S. federal and state securities
      laws.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (ii)  No
      Redemption Requirements.
      Except
      as set forth in the SEC Reports, there are no outstanding contractual
      obligations (contingent or otherwise) of the Company to retire, repurchase,
      redeem or otherwise acquire any outstanding shares of capital stock of, or
      other
      ownership interests in, the Company or to provide funds to or make any
      investment (in the form of a loan, capital contribution or otherwise) in any
      other person.

     

    (iii)  Duly
      Authorized.
      The
      issuance of the Shares has been duly authorized and, upon delivery to the
      Purchasers of certificates therefor in accordance with the terms of this
      Subscription Agreement, such Shares have the rights, preferences and privileges
      specified, will be free of preemptive rights and will be free and clear of
      all
      liens and restrictions, other than liens created by the Purchasers and
      restrictions on transfer imposed by this Subscription Agreement and the
      Securities Act, and will have been validly issued and be will be fully paid
      and
      nonassessable.

     

    3.09  Compliance
      with Laws. Except as would not have a Material Adverse Effect, the business
      and
      operations of the Company have been and are being conducted in accordance with
      all applicable laws and orders. Except as would have a Material Adverse Effect,
      the Company has not received notice of any violation (or any proceeding
      involving an allegation of any violation) of any applicable law or order by
      or
      affecting such Company and, to the knowledge of the Company, no proceeding
      involving an allegation of violation of any applicable law or order is
      threatened or contemplated. Except as would have a Material Adverse Effect,
      the
      Company is not subject to any obligation or restriction of any kind or
      character, nor is there, to the knowledge of the Company, any event or
      circumstance relating to the Company that materially and adversely affects
      in
      any way its business, properties, assets or prospects or that prohibits the
      Company from entering into this Subscription Agreement or would prevent or
      make
      burdensome its performance of or compliance with all or any part of this
      Subscription Agreement or the consummation of the transactions contemplated
      hereby.

     

    3.10  Certain
      Proceedings. There is no pending proceeding that has been commenced against
      the
      Company and that challenges, or may have the effect of preventing, delaying,
      making illegal, or otherwise interfering with, any of the transactions
      contemplated by this Subscription Agreement. To the knowledge of the Company,
      no
      such proceeding has been threatened.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.11  No
      Brokers or Finders. No person has, or as a result of the transactions
      contemplated herein will have, any right or valid claim against the Company
      for
      any commission, fee or other compensation as a finder or broker, other than
      Broadband.

     

    3.12  Absence
      of Undisclosed Liabilities. Except as set forth in the SEC Reports, the Company
      does not have any debt, obligation or liability (whether accrued, absolute,
      contingent, liquidated or otherwise, whether due or to become due, whether
      or
      not known to the Company) arising out of any transaction entered into at or
      prior to the Closing Date or any act or omission at or prior to the Closing
      Date, except to the extent set forth on or reserved against on the most recent
      balance sheet included in the SEC Reports. Except as set forth in the SEC
      Reports, the Company has not incurred any liabilities or obligations under
      agreements entered into, in the usual and ordinary course of business since
      December 31, 2005. 

     

    3.13  Changes.
      Except as set forth in the SEC Reports, the Company has not, since December
      31,
      2005:

     

    (i)  Ordinary
      Course of Business.
      Conducted its business or entered into any transaction other than in the usual
      and ordinary course of business, except for this Subscription
      Agreement;

     

    (ii)  Adverse
      Changes.
      Suffered or experienced any change in, or affecting, its condition (financial
      or
      otherwise), properties, assets, liabilities, business, operations, results
      of
      operations or prospects other than changes, events or conditions in the usual
      and ordinary course of its business, none of which would have a Material Adverse
      Effect;

     

    (iii)  Loans.
      Made
      any loans or advances to any person other than travel advances and reimbursement
      of expenses made to employees, officers and directors in the ordinary course
      of
      business;

     

    (iv)  Liens.
      Created
      or permitted to exist any lien on any material property or asset of the Company,
      other than as such as would not have a Material Adverse Effect;

     

    (v)  Capital
      Stock.
      Issued,
      sold, disposed of or encumbered, or authorized the issuance, sale, disposition
      or encumbrance of, or granted or issued any option to acquire any shares of
      its
      capital stock or any other of its securities or any equity security, or altered
      the term of any of its outstanding securities or made any change in its
      outstanding shares of capital stock or its capitalization, whether by reason
      of
      reclassification, recapitalization, stock split, combination, exchange or
      readjustment of shares, stock dividend or otherwise;

     

    (vi)  Dividends.
      Declared, set aside, made or paid any dividend or other distribution to any
      of
      its stockholders;

     

    (vii)  Material
      Company Contracts.
      Terminated or modified any material Company contract, except for termination
      upon expiration in accordance with the terms thereof;

     

    (viii)  Claims.
      Released, waived or cancelled any claims or rights relating to or affecting
      the
      Company in excess of US $10,000 in the aggregate or instituted or settled any
      proceeding involving in excess of US $10,000 in the aggregate;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (ix)  Discharged
      Liabilities.
      Paid,
      discharged or satisfied any claim, obligation or liability in excess of US
      $10,000 in the aggregate, except for liabilities incurred prior to the date
      of
      this Subscription Agreement in the ordinary course of business;

     

    (x)  Indebtedness.
      Created, incurred, assumed or otherwise become liable for any Indebtedness
      in
      excess of US $150,000 in the aggregate, other than professional
      fees;

     

    (xi)  Guarantees.
      Guaranteed or endorsed in a material amount any obligation or net worth of
      any
      person;

     

    (xii)  Acquisitions.
      Acquired the capital stock or other securities or any ownership interest in,
      or
      substantially all of the assets of, any other person;

     

    (xiii)  Accounting.
      Changed
      its method of accounting or the accounting principles or practices utilized
      in
      the preparation of its financial statements, other than as required by
      GAAP;

     

    (xiv)  Agreements.
      Entered
      into any agreement, or otherwise obligated itself, to do any of the
      foregoing.

     

    3.14  Tax
      Returns and Audits.

     

    (i)  Tax
      Returns.
      The
      Company has filed all material Tax Returns required to be filed by or on behalf
      of the Company and has paid all material Taxes of the Company required to have
      been paid (whether or not reflected on any Tax Return). Except as set forth
      in
      the SEC Reports, (a) no governmental authority in any jurisdiction has made
      a
      claim, assertion or threat to such Company that such Company is or may be
      subject to Taxation by such jurisdiction; (b) there are no liens with respect
      to
      taxes on the Company’s property or assets other than such as would not have a
      Material Adverse Effect; and (c) there are no Tax rulings, requests for rulings,
      or closing agreements relating to the Company for any period (or portion of
      a
      period) that would affect any period after the date hereof.

     

    (ii)  No
      Disputes.
      There
      is no pending audit, examination, investigation, dispute, proceeding or claim
      with respect to any Taxes of the Company, nor is any such claim or dispute
      pending or contemplated.

     

    3.15  Insurance
      Coverage. Except as disclosed in the SEC Reports, the Company does not maintain
      any insurance policies. 

     

    3.16  Litigation;
      Orders. There is no proceeding (whether federal, state, local or foreign)
      pending or, to the knowledge of the Company, threatened against or affecting
      the
      Company or any of Company’s properties, assets, business or employees. To the
      knowledge of the Company, there is no fact that might result in or form the
      basis for any such proceeding. The Company is not subject to any material
      governmental orders.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.17  Licenses.
      Except as would not have a Material Adverse Effect, the Company possesses from
      the appropriate governmental authority all licenses, permits, authorizations,
      approvals, franchises and rights that are necessary for the Company to engage
      in
      its business as currently conducted and to permit the Company to own and use
      its
      properties and assets in the manner in which it currently owns and uses such
      properties and assets (collectively, “Company
      Permits”).
      The
      Company has not received notice from any governmental authority or other Person
      that there is lacking any license, permit, authorization, approval, franchise
      or
      right necessary for such Company to engage in its business as currently
      conducted and to permit such Company to own and use its properties and assets
      in
      the manner in which it currently owns and uses such properties and assets.
      Except as would not have a Material Adverse Effect, the Company Permits are
      valid and in full force and effect. Except as would not have a Material Adverse
      Effect, no event has occurred or circumstance exists that may (with or without
      notice or lapse of time): (a) constitute or result, directly or indirectly,
      in a
      violation of or a failure to comply with any Company Permit; or (b) result,
      directly or indirectly, in the revocation, withdrawal, suspension, cancellation
      or termination of, or any modification to, any Company Permit. The Company
      has
      not received notice from any governmental authority or any other Person
      regarding: (a) any actual, alleged, possible or potential contravention of
      any
      Company Permit; or (b) any actual, proposed, possible or potential revocation,
      withdrawal, suspension, cancellation, termination of, or modification to, any
      Company Permit. All applications required to have been filed for the renewal
      of
      such Company Permits have been duly filed on a timely basis with the appropriate
      Persons, and all other filings required to have been made with respect to such
      Company Permits have been duly made on a timely basis with the appropriate
      Persons. All Company Permits are renewable by their terms or in the ordinary
      course of business without the need to comply with any special qualification
      procedures or to pay any amounts other than routine fees or similar charges,
      all
      of which have, to the extent due, been duly paid.

     

    3.18  Interested
      Party Transactions. Except as disclosed in the SEC Reports, no officer, director
      or stockholder of the Company or any Affiliate or “associate” (as such term is
      defined in Rule 405 of the Commission under the Securities Act) of any such
      Person, has or has had, either directly or indirectly, (1) an interest in any
      Person which (a) furnishes or sells services or products which are furnished
      or
      sold or are proposed to be furnished or sold by the Company, or (b) purchases
      from or sells or furnishes to, or proposes to purchase from, sell to or furnish
      the Company any goods or services; or (2) a beneficial interest in any contract
      or agreement to which the Company is a party or by which it may be bound or
      affected.

     

    3.19  SEC
      Documents; Financial Statements. The Company has filed all reports required
      to
      be filed by it under the Exchange Act, including pursuant to Section 13(a)
      or
      15(d) thereof, for the three years preceding the date hereof (or such shorter
      period as the Company was required by law to file such material) and, while
      not
      having filed all such Company SEC Reports prior to the date such filings may
      have been due, is nevertheless current with respect to its Exchange Act filing
      requirements. As of their respective dates, the SEC Documents complied in all
      material respects with the requirements of the Securities Act and the Exchange
      Act and the rules and regulations of the Commission promulgated thereunder,
      and
      none of the SEC Documents, when filed, contained any untrue statement of a
      material fact or omitted to state a material fact required to be stated therein
      or necessary in order to make the statement therein, in light of the
      circumstances under which they were made, not misleading. All material
      agreements to which the Company is a party or to which the property or assets
      of
      the Company are subject have been appropriately filed as exhibits to the Company
      SEC Reports as and to the extent required under the Exchange Act. The financial
      statements of the Company included in the Company SEC Reports comply in all
      material respects with applicable accounting requirement and the rules and
      regulations of the Commission with respect thereto as in effect at the time
      of
      filing, were prepared in accordance with GAAP applied on a consistent basis
      during the periods involved (except as may be indicated in the notes thereto,
      or, in the case of unaudited statements as permitted by Form 10-QSB of the
      Commission), and fairly present in all material respects (subject in the case
      of
      unaudited statements, to normal, recurring audit adjustments) the financial
      position of the Company as at the dates thereof and the results of its
      operations and cash flows for the periods then ended.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.20  Environmental
      Matters. Except as would not have a Material Adverse Effect:

     

    (i)  The
      Company has at all time been and is in compliance with all Environmental Laws
      applicable to the Company.

     

    (ii)  There
      are
      no proceedings pending or threatened against the Company alleging the violation
      of any Environmental Law or Environmental Permit applicable to the Company
      or
      alleging that the Company is a potentially responsible party for any
      environmental site contamination.

     

    (iii)  Neither
      this Subscription Agreement nor the consummation of the transactions
      contemplated by this Subscription Agreement shall impose any obligations to
      notify or obtain the consent of any governmental authority or third persons
      under any Environmental Laws applicable to the Company.

     

    3.21  Title
      to
      and Condition of Properties. Except
      as
      would not have a Material Adverse Effect, the Company owns (with good and
      marketable title in the case of real property) or holds under valid leases
      or
      other rights to use all real property, plants, machinery, equipment and other
      personal property necessary for the conduct of its business as presently
      conducted, free and clear of all liens, except such as would not have a Material
      Adverse Effect. The material buildings, plants, machinery and equipment
      necessary for the conduct of the business of the Company as presently conducted
      are structurally sound, are in good operating condition and repair and are
      adequate for the uses to which they are being put, and none of such buildings,
      plants, machinery or equipment is in need of maintenance or repairs, except
      for
      ordinary, routine maintenance and repairs that are not material in nature or
      cost.

     

    ARTICLE
      IV

     

    COVENANTS
      OF THE COMPANY

     

    4.01  Operations.
      From and after the date hereof through the Closing, the Company will operate
      only in the ordinary course of business and in addition thereto, and not in
      limitation thereof; will not and will not permit or suffer any Subsidiary to:
      (i) voluntarily incur any obligation; (ii) declare, authorize or become
      obligated to make (or express any intention to make) any significant
      distribution, dividend, increase in compensation or bonus to any Person; (iii)
      incur any material Indebtedness; (iv) engage in a transaction with any
      Affiliate; (v) amend any of its material agreements, contracts, articles of
      incorporation or by-laws; or (vi) agree to do any of the foregoing.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.02  Inspection.
      The Company shall permit authorized representatives of the Purchasers to visit
      and inspect any of the properties of the Company, including its books of account
      (and to make copies thereof and take extracts therefrom), and to discuss its
      affairs, finances and accounts with its officers, employees, independent
      accountants, consultants and attorneys, all at such reasonable times and as
      often as may be reasonably requested.

     

    4.03  Reverse
      Stock Split. The Company shall take such actions as are necessary to consummate
      a 1 for 10 reverse split of its outstanding common shares at the earliest
      practicable date.

     

    ARTICLE
      V

     

    INDEMNIFICATION;
      REMEDIES

     

    5.01  Survival.
      All representations, warranties, covenants, and obligations in this Subscription
      Agreement shall survive the Closing and expire six months from the date hereof
      (the “Survival
      Period”).

     

    5.02  Indemnification
      by the Company. From and after the Closing until (1) the expiration of the
      Survival Period, or (2) with respect to a specific claim made by the Purchasers
      against the Company prior to the expiration of the Survival Period, until a
      court of competent jurisdiction renders a final unappealable decision (or
      appeals of a decision are not taken within the time period permitted for filing
      same) (the “Claims
      Period”),
      the
      Company shall indemnify and hold harmless the Purchasers from and against any
      liabilities, loss, claims, damages (excluding consequential, punitive and other
      similar damages), fines, penalties, expenses (including costs of investigation
      and defense and reasonable attorneys’ fees) or diminution of value
      (collectively, “Damages”)
      arising, directly or indirectly, from or in connection with:

     

    (i)  any
      breach of any representation or warranty made by the Company in this Agreement
      or in any certificate delivered by the Company pursuant to this Agreement;
      or

     

    (ii)  any
      breach by the Company of any covenant or obligation of the Company in this
      Agreement required to be performed by the Company on or prior to
      Closing.

     

    5.03  Limitations
      on Amount. The Purchasers shall not be entitled to indemnification pursuant
      to
      Section 5.02, unless and until the aggregate amount of Damages to the Purchasers
      with respect to such matters under Section 5.02 exceeds $250,000, at which
      time,
      subject to the following cap on the maximum amount of damages in respect of
      which the Purchasers may seek indemnification hereunder, the Purchasers shall
      be
      entitled to indemnification for the total amount of such Damages in excess
      of
      $250,000. The aggregate amount of Damages for which the Company shall be
      responsible to indemnify the Purchasers with respect to shall in no event exceed
      $13,100,000.

     

    5.04  Determining
      Damages. Materiality qualifications to the representations and warranties of
      the
      Company shall be taken into account in determining the amount of Damages
      occasioned by a breach of any such representation or warranty for purposes
      of
      determining the whether the baskets set forth in 5.03 have been
      met.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE
      VI

     

    GLOSSARY

     

    6.01  Certain
      Defined Terms. As used in this Agreement, the following terms shall have the
      following meanings (such meanings to be equally applicable to both the singular
      and plural forms of the terms defined):

     

    “Affiliate”
      of any person shall mean a Person controlling, controlled by or under common
      control with, any such Person.

     

    “Agreement”
      means this Subscription Agreement as from time to time amended and in effect
      between the parties, including all exhibits hereto.

     

    “Board
      of
      Directors” or “Board” means the board of directors of the Company as constituted
      from time to time.

     

    “Claims
      Period” shall have the meaning assigned to that term in

     

    Section
      5.02.

     

    “Closing”
      shall have the meaning assigned to that term in Section 1.02.

     

    “Code”
      means the Internal Revenue Code of 1986, as amended.

     

    “Commission”
      shall mean the United States Securities and Exchange Commission or any other
      federal agency at the time administering the Securities Act or the Exchange
      Act.

     

    “Damages”
      shall have the meaning assigned to that term in Section

     

    5.02.
      

     

    “Environmental
      Laws” means any Law or other requirement relating to the environment, natural
      resources, or public or employee health and safety.

     

    “Environmental
      Permit” means all licenses, permits, authorizations, approvals, franchises and
      rights required under any applicable Environmental Law or order.

     

    “Exchange
      Act” means the Securities Exchange Act of 1934, as amended, or any similar
      federal statute, and the rules and regulations of the Commission (or of any
      other Federal agency then administering the Exchange Act) thereunder, all as
      the
      same shall be in effect at the time.

     

    “Material
      Adverse Effect” means any change, effect or circumstance which, individually or
      in the aggregate, would reasonably be expected to (a) have a material adverse
      effect on the business, assets, financial condition or results of operations
      of
      the Company and its Subsidiaries, taken as a whole or (b) materially impair
      the
      ability of the Company to perform its obligations under this Subscription
      Agreement, excluding any change, effect or circumstance resulting from (i)
      the
      announcement, pendency or consummation of the transactions contemplated by
      this
      Subscription Agreement, (ii) changes in the United States securities markets
      generally, or (iii) changes in general economic, currency exchange rate,
      political or regulatory conditions in industries in which the Company or its
      Subsidiaries, as the case may be, operate.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Regulation
      S” means Regulation S promulgated under the Securities Act, as the same may be
      amended from time to time, or any similar rule or regulation hereafter adopted
      by the Commission.

     

    “Requested
      Documents” shall have the meaning assigned to that term in Section
      1.03(ii).

     

    “SEC
      Reports” shall have the meaning assigned to that term in Section
      1.03(ii).

     

    “Securities”
      includes the Shares and shares of Common Stock issuable upon the conversion
      thereof.

     

    “Securities
      Act” means the Securities Act of 1933, as amended, or any similar federal
      statute, and the rules and regulations of the Commission (or of any other
      federal agency then administering the Securities Act) thereunder, all as the
      same shall be in effect at the time.

     

    “Series
      B
      Preferred Stock” means the Company’s Series B Preferred Stock, $.001 par value,
      as authorized on the date of this Agreement.

     

    “Subsidiary”
      or “Subsidiaries” means, with respect to any person, any corporation, limited
      liability company, joint venture or partnership of which such person (a)
      beneficially owns, either directly or indirectly, more than 50% of (i) the
      total
      combined voting power of all classes of voting securities of such entity, (ii)
      the total combined equity interests, or (iii) the capital or profit interests,
      in the case of a partnership; or (b) otherwise has the power to vote or to
      direct the voting of sufficient securities to elect a majority of the board
      of
      directors or similar governing body.

     

    “Survival
      Period” shall have the meaning assigned to that term in

     

    Section
      5.01.

     

    “Taxes”
      means all foreign, federal, state or local taxes, charges, fees, levies,
      imposts, duties and other assessments, as applicable, including, but not limited
      to, any income, alternative minimum or add-on, estimated, gross income, gross
      receipts, sales, use, transfer, transactions, intangibles, ad valorem,
      value-added, franchise, registration, title, license, capital, paid-up capital,
      profits, withholding, payroll, employment, unemployment, excise, severance,
      stamp, occupation, premium, real property, recording, personal property, federal
      highway use, commercial rent, environmental (including, but not limited to,
      taxes under Section 59A of the Code) or windfall profit tax, custom, duty or
      other tax, governmental fee or other like assessment or charge of any kind
      whatsoever, together with any interest, penalties or additions to tax with
      respect to any of the foregoing; and “Tax” means any of the foregoing
      Taxes.

     

    “Tax
      Return” means any return, declaration, report, claim for refund or credit,
      information return, statement or other similar document filed with any
      Governmental authority with respect to Taxes, including any schedule or
      attachment thereto, and including any amendment thereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Transaction
      Documents” means, collectively, this Agreement and all agreements, instruments
      and other documents to be executed and delivered in connection with the
      transactions contemplated by this Agreement.

     

    “U.S.”
      means the United States of America.

     

    “U.S.
      Person” has the meaning set forth in Regulation S.

     

    6.02  Accounting
      Terms. All accounting terms not specifically defined herein or in any of the
      Transaction Documents shall be construed in accordance with generally accepted
      accounting principles as applied in the United States of America (“GAAP”)
      consistently applied, and all financial data submitted pursuant to this
      Agreement shall be prepared in accordance with such principles.

     

    ARTICLE
      VII

     

    MISCELLANEOUS

     

    7.01  No
      Waiver: Cumulative Remedies. No failure or delay on the part of any party to
      this Agreement in exercising any right, power or remedy hereunder shall operate
      as a waiver thereof; nor shall any single or partial exercise of any such right,
      power or remedy preclude any other or further exercise thereof or the exercise
      of any other right, power or remedy hereunder. The remedies herein provided
      are
      cumulative and not exclusive of any remedies provided by law.

     

    7.02  Amendments.
      Waivers and Consents. Any provision in the Agreement to the contrary
      notwithstanding, and except as hereinafter provided, changes in, termination
      or
      amendments of or additions to this Agreement may be made, and compliance with
      any covenant or provision set forth herein may be omitted or waived, if the
      Company (i) shall obtain consent thereto in writing from the holder or holders
      of at least a majority in interest of the Shares and (ii) shall deliver copies
      of such consent in writing to any holders who did not execute such consent;
      provided that no consents shall be effective to reduce the percentage in
      interest of the Shares the consent of the holders of which is required under
      this Section 9.02. Any waiver or consent may be given subject to satisfaction
      of
      conditions stated therein and any waiver or consent shall be effective only
      in
      the specific instance and for the specific purpose for which given.

     

    7.03  Notices.
      All notices, consents, waivers, and other communications under this Agreement
      must be in writing and will be deemed to have been duly given when (a) delivered
      by hand (with written confirmation of receipt), (b) sent by telecopier (with
      written confirmation of receipt), or (c) when received by the addressee, if
      sent
      by a nationally recognized overnight delivery service (receipt requested),
      in
      each case to the appropriate addresses and telecopier numbers set forth below
      (or to such other addresses and telecopier numbers as a party may designate
      by
      written notice to the other parties):

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              If
                to the Company: 

              General
                Components, Inc. 

              Suite
                1503, Sino Plaza 255-257

              Gloucester
                Road, Causeway Bay, Hong Kong 

            	
              with
                a copy to:

              Loeb
                & Loeb LLP

              345
                Park Avenue

              New
                York, NY 10154

            
	 	 
	
              Attention:
                Mr. Ma Qing, Chief Financial Officer 

              Telephone
                No.: +852 2975 9809 

            	
              Attention:
                Mitchell S. Nussbaum, Esq.

              Telephone
                No.:212-407-4000

              Facsimile
                No.: 212-407-4990

            
	 	 
	
              If
                to the Purchasers: To the address set forth on the signature pages
                hereto

            	 

    

     

    7.04  Costs,
      Expenses and Taxes. Each of the parties hereto shall bear its own expenses
      with
      regard to the negotiation, drafting and completion of the Transaction Documents
      and all related matters and transactions. The Company shall pay any and all
      stamp, or other similar taxes payable or determined to be payable in connection
      with the execution and delivery of this Subscription Agreement, the issuance
      of
      any securities and the other instruments and documents to be delivered hereunder
      or thereunder, and agrees to save the Purchasers harmless from and against
      any
      and all liabilities with respect to or resulting from any delay in paying or
      omission to pay such taxes.

     

    7.05  Effectiveness:
      Binding Effect: Assignment. This Agreement shall be binding upon and inure
      to
      the benefit of the Company, the Purchasers and the respective successors and
      assigns. This Subscription Agreement may not be assigned by any party hereto
      without the written consent of the Company (in the event a Purchaser shall
      seek
      to assign its rights and duties hereunder) or all the Purchasers (in the event
      the Company shall seek to assign its rights and duties hereunder).

     

    7.06  Survival
      of Representations and Warranties. All representations and warranties made
      in
      the Transaction Documents, the Shares or any other instrument or document
      delivered in connection herewith or therewith, shall survive the execution
      and
      delivery hereof or thereof.

     

    7.07  Prior
      Agreements. The Transaction Documents executed and delivered in connection
      herewith constitute the entire agreement between the parties and supersede
      any
      prior understandings or agreements concerning the subject matter
      hereof.

     

    7.08  Severability.
      The provisions of the Transaction Documents are severable and, in the event
      that
      any court of competent jurisdiction shall determine that any one or more of
      the
      provisions or part of a provision contained therein shall, for any reason,
      be
      held to be invalid, illegal or unenforceable in any respect, such invalidity,
      illegality or unenforceability shall not affect any other provision or part
      of a
      provision of such Transaction Document and the terms of the Shares shall be
      reformed and construed as if such invalid or illegal or unenforceable provision,
      or part of a provision, had never been contained herein, and such provisions
      or
      part reformed so that it would be valid, legal and enforceable to the maximum
      extent possible.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7.09  Governing
      Law. This Agreement shall be governed by, and construed in accordance with,
      the
      internal laws of the State of New York, and without giving effect to choice
      of
      laws provisions.

     

    7.10  Headings.
      Article, section and subsection headings in this Agreement are included herein
      for convenience of reference only and shall not constitute a part of this
      Agreement for any other purpose.

     

    7.11  Counterparts.
      This Agreement may be executed in any number of counterparts, all of which
      taken
      together shall constitute one and the same instrument, and any of the parties
      hereto may execute this Agreement by signing any such counterpart.

     

    7.12  Further
      Assurances. From and after the date of this Agreement, upon the request of
      the
      Purchasers or the Company, the Company and the Purchasers shall execute and
      deliver such instruments, documents and other writings as may be reasonably
      necessary or desirable to confirm and carry out and to effectuate fully the
      intent and purposes of the Transaction Documents and the Shares.

     

    7.13  Transfer.
      Nothing in the Transaction Documents or the Shares shall restrict the right
      and
      ability of the Purchasers or its Affiliates to transfer, and the Purchasers
      are
      hereby granted the right to transfer any rights, power or privileges of or
      under
      the Transaction Documents or the Shares to its Affiliates. The foregoing is
      in
      addition to, and not in limitation of; all other rights, powers and privileges
      of the Purchasers.

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Subscription Agreement
      to
      be executed as of the date first above written.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    General
      Components, Inc.

    SIGNATURE
      PAGE TO

    SUBSCRIPTION
      AGREEMENT

     

    EXECUTION
      OF THIS AGREEMENT BY ANY PURCHASER SHALL ALSO BE DEEMED TO CONSTITUTE EXECUTION
      BY SUCH PURCHASER OF THE REGISTRATION RIGHTS AGREEMENT ANNEXED
      HERETO.

     

    (NOTE:
      to
      be completed by purchaser):

    

    Purchaser
      hereby elects to subscribe under the Subscription Agreement for a total of
      $__________ of Shares (Such Purchaser’s “Subscription Amount”)

    

    Date:
      _______________, 2007.

    

    If
      the
      purchaser is an INDIVIDUAL, or if the purchasers are INDIVIDUALS who have
      purchased as JOINT TENANTS, as JOINT TENANTS with RIGHT OF SURVIVORSHIP, as
      TENANTS IN COMMON, or as COMMUNITY PROPERTY:

    

    
      	
               

              ___________________________

              Print
                Names(s)

            	
               

              ___________________________

              Social
                Security Number(s)

            
	
               

              ___________________________

              Signature(s)
                of Investor(s)

            	
               

              ___________________________

              Joint
                Signature

            
	
               

               

              ___________________________

              Address

            	
               

              ___________________________

              Date

            

    

    

    If
      the
      purchaser is a PARTNERSHIP, CORPORATION, TRUST, LIMITED LIABILITY COMPANY or
      LIMITED LIABILITY PARTNERSHIP:

    

    
      	
              ___________________________

              Name
                of Partnership, Corporation,

              Trust,
                Limited Liability Company

              or
                Limited Liability Partnership

               

              Address:

               

               

            	
              ___________________________

              Federal
                Taxpayer

              Identification
                Number

            
	
               

              By:___________________________

            	
               

              ___________________________

            
	
              Name:
                ________________________

            	
              State
                of Organization

            
	
              Title:________________________

            	 

    

    

    

    Company
      Signature Page Follows

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    THE
      FOREGOING SUBSCRIPTION IS ACCEPTED AND AGREED TO this ___ day of ___________,
      2007 with respect to _____________ Shares.

    

    

    GENERAL
      COMPONENTS, INC.

    

    

    By:______________________________________________

    Name:
      Ma
      Qing

    Title:
      Chief Financial Officer

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ACKNOWLEDGEMENT
      OF CONVERTIBLE NOTE INVESTORS

    

    Each
      of
      the undersigned hereby acknowledges that the Convertible Promissory Note
      previously issued to it shall automatically convert into Series B Preferred
      Stock upon the consummation of the transactions contemplated by this Agreement
      and hereby waives any and all rights to the notice of conversion required
      pursuant to Section 5 of such Convertible Promissory Note. Each of the
      undersigned hereby releases and discharges the Company from and against all
      actions, proceedings, causes of action, claims for relief, demands, rights,
      titles, interest, damages, losses, costs, expenses, obligations, liabilities
      and
      other claims of every nature whatsoever arising out the performance of any
      obligations under such Convertible Promissory Note. Each of the undersigned
      hereby represents and warrants to the Company as to the same factual matters
      and
      to the same extent as a Purchaser represents and warrants to the Company in
      Section 1.03 of the Subscription Agreement as if it were deemed to be purchasing
      Shares upon the automatic conversion of such Convertible Promissory Note. In
      consideration of the foregoing representations and warranties on the part of
      the
      undersigned, the Company hereby represents and warrants to each of the
      undersigned as to the same factual matters and to the same extent the Company
      represents and warrants to a Purchaser in Article III of the Subscription
      Agreement as of the date of the automatic conversion of such Convertible
      Promissory Note.

    

    
      	
              COMTECH
                GLOBAL INVESTMENTS, INC.

               

              By:
                ___________________________

              Name:

              Title:

            
	
              BERRARD
                HOLDINGS LIMITED PARTNERSHIP

               

               

              By:
                ___________________________

              Name:
                

              Title:
                

            
	
              BLOOMING
                TECHNOLOGY INVESTMENTS LTD.

               

               

              By:
                ___________________________

              Name:
                

              Title:
                

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              LONGVIEW
                FUND

               

               

              By:
                ___________________________

              Name:
                

              Title:
                

            
	
               

               

               

              ____________________________________

              Michael
                Rapoport

            
	
               

               

               

              ____________________________________

              Shi
                Guo Hua

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Investor
      Certification

    

    NAME
      OF INVESTOR:

     

    Initial
      or Check the appropriate item(s)

     

    US
      INVESTORS - The undersigned further represents and warrants as indicated below
      by the undersigned’s initials:

     

    A. Individual
      investors:
      (Please
      initial one or more of the following statements)

     

    1._______I
      certify
      that I am an accredited investor because I have had individual income (exclusive
      of any income earned by my spouse) of more than $200,000 in each of the most
      recent two years and I reasonably expect to have an individual income in excess
      of $200,000 for the current year.

     

    2._______I
      certify
      that I am an accredited investor because I have had joint income with my spouse
      in excess of $300,000 in each of the most recent two years and reasonably expect
      to have joint income with my spouse in excess of $300,000 for the current
      year.

     

    3._______I
      certify
      that I am an accredited investor because I have an individual net worth, or
      my
      spouse and I have a joint net worth, in excess of $1,000,000.

     

    4._______I
      am a
      director or executive officer of General Components, Inc.

     

    5._______I
      have
      individual net worth or my spouse and I have joint net worth of over
      $5,000,000.

     

     

    
      	
              B.

            	
              Partnerships,
                corporations, trusts or other entities:
                (Please initial one of the following seven statements). The undersigned
                hereby certifies that it is an accredited investor because it
                is:

            

    

     

    
      	
              1._____

            	
              an
                employee benefit plan whose total assets exceed
                $5,000,000;

            

    

     

    
      	
              2._____

            	
              an
                employee benefit plan whose investments decisions are made by a plan
                fiduciary which is either a bank, savings and loan association or
                an
                insurance company (as defined in Section 3(a) of the Securities Act)
                or an
                investment adviser registered as such under the Investment Advisers
                Act of
                1940;

            

    

     

    
      	
              3._____

            	
              a
                self-directed employee benefit plan, including an Individual Retirement
                Account, with investment decisions made solely by persons that are
                accredited investors;

            

    

     

    
      	
              4._____

            	
              an
                organization described in Section 501(c)(3) of the Internal Revenue
                Code
                of 1986, as amended, not formed for the specific purpose of acquiring
                the
                Shares, with total assets in excess of
                $5,000,000;

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              5._____

            	
              a
                corporation, partnership, limited liability company, limited liability
                partnership, other entity or similar business trust, not formed for
                the
                specific purpose of acquiring the Shares, with total assets excess
                of
                $5,000,000;

            

    

     

    
      	
              6._____

            	
              a
                trust, not formed for the specific purpose of acquiring the Shares,
                with
                total assets exceed $5,000,000, whose purchase is directed by a person
                who
                has such knowledge and experience in financial and business matters
                that
                he is capable of evaluating the merits and risks of an investment
                in the
                Shares; or

            

    

     

    
      	
              7._____

            	
              an
                entity (including a revocable grantor trust but other than a conventional
                trust) in which each of the equity owners qualifies as an accredited
                investor.

            

    

     

    NON-US
      INVESTORS - The undersigned further represents and warrants as indicated below
      by the undersigned’s initials:
      

     

    A. Please
      initial the following statement:

     

    1._______I
      certify
      that I am not a “U.S. person” (as defined in Regulation S) or purchasing for the
      account or benefit of a “U.S. person” and am purchasing Shares in an “offshore
      transaction” in accordance with Regulation S.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
      3.02

     

    General
      Components, Inc. - Group Chart

     

    

    

    

    

    GCI :
      General
      Components, Inc., Nevada

    

    Magical :
      Magical
      Insight Investments Limited, British Virgin Islands

    

    HTW :
      Beihai
      Hi-Tech Wealth Technology Development Co. Ltd, China

    Euro
      Asia :
      Euro
      Asia Arbitrage Investment Limited, Hong Kong

    

    HEP :
      Beihai
      Hi-Tech Wealth Electronic Products Co. Ltd, China

    BJ
      MCT :
      Beijing
      Hi-Tech Wealth Mobile Communication Technology Co. Ltd, China 

    BJ
      HTS :
      Beijing
      Hi-Tech Wealth Software Technology Ltd, China

    

    Note:

    	1)  	
            On
              December 21, 2006 Magical invested US$3.6m into HTW enlarging its
              ownership in HTW from 90% to 92.29%. On January 31, 2007 Magical entered
              into an asset purchase agreement for the remaining interest in
              HTW.

          

    	2)  	
            HEP
              and BJ MCT are expected to be disposed of during the first quarter
              of
              2007. Currently, HEP and BJ MCT have limited assets, liabilities and
              operations.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]