Document:

Dated:
      February 20, 2007

     

    NEITHER
      THIS DEBENTURE NOR THE SECURITIES INTO WHICH THIS DEBENTURE IS 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.

     

    
      	
              No.
                CCP-3

            	
              $35,000.00

            

    

     

    HEADLINERS
      ENTERTAINMENT GROUP, INC.

     

    Secured
      Convertible Debenture

     

     

    Due:
      February 20, 2010

     

    This
      Secured Convertible Debenture (the “Debenture”)
      is
      issued by HEADLINERS
      ENTERTAINMENT GROUP, INC., a
      Delaware corporation (the “Obligor”),
      to
CORNELL
      CAPITAL PARTNERS, LP
      (the
“Holder”),
      pursuant to that certain Agreement (the “Agreement”)
      of
      even date herewith. 

     

    FOR
      VALUE RECEIVED,
      the
      Obligor hereby promises to pay to the Holder or its successors and assigns
      the
      principal sum of Thirty Five Thousand Dollars ($35,000) together with accrued
      but unpaid interest on or before February 20, 2010 (the “Maturity
      Date”)
      in
      accordance with the following terms:

     

    Interest.
      Interest shall accrue on the outstanding principal balance hereof at an annual
      rate equal to twelve percent (12%). Interest shall be calculated on the basis
      of
      a 365-day year and the actual number of days elapsed, to the extent permitted
      by
      applicable law. Interest hereunder will be paid to the Holder or its assignee
      (as defined in Section
      4)
      in
      whose name this Debenture is registered on the records of the Obligor regarding
      registration and transfers of Debentures (the “Debenture
      Register”).

     

    Right
      of Redemption.
      The
      Obligor at its option shall have the right, with three (3) business days advance
      written notice (the “Redemption
      Notice”),
      to
      redeem a portion or all amounts outstanding under this Debenture prior to the
      Maturity Date provided that the Closing Bid Price of the of the Obligor’s Common
      Stock, as reported by Bloomberg, LP, is less than the Fixed Price at the time
      of
      the Redemption Notice. The Obligor shall pay an amount equal to the principal
      amount being redeemed plus a redemption premium (“Redemption
      Premium”)
      equal
      to twenty percent (20%) of the principal amount being redeemed, and accrued
      interest, (collectively referred to as the “Redemption
      Amount”).
      The
      Obligor shall deliver to the Holder the Redemption Amount on the third
      (3rd)
      business day after the Redemption Notice. Notwithstanding the foregoing in
      the
      event that the Obligor has elected to redeem a portion of the outstanding
      principal amount and accrued interest under this Debenture the Holder shall
      still be entitled to effectuate Conversions as contemplated hereunder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    Security
      Agreements.
      . This
      Debenture is secured by the Amended and Restated Security Agreement (the
“Security
      Agreement”)
      between the Obligor and the Holder and an Amended and Restated Pledge and Escrow
      Agreement (the “Pledge
      Agreement”)
      between the Obligor, the Holder, and the Escrow Agent, each dated November
      18,
      2005. 

     

    Consent
      of Holder to Sell Capital Stock or Grant Security Interests.
      So
      long
      as any of the principal amount or interest on this Debenture remains unpaid
      and
      unconverted, the Obligor shall not, without the prior consent of the Holder,
      (i) issue or sell any common stock or preferred stock without
      consideration or for a consideration per share less than the Closing Bid Price
      of the Common Stock determined immediately prior to its issuance,
      (ii) issue or sell any preferred stock, warrant, option, right, contract,
      call, or other security or instrument granting the holder thereof the right
      to
      acquire common stock without consideration or
      for a
      consideration less than such Common Stock’s Closing Bid Price determined
      immediately prior to it’s issuance,
      (iii)
      enter into any security instrument granting the holder a security interest
      in
      any of the assets of the Obligor, or
      (iv)
      file any
      registration statements on Form S-8.

     

    This
      Debenture is subject to the following additional provisions:

     

    Section
      1. This
      Debenture is exchangeable for an equal aggregate principal amount of Debentures
      of different authorized denominations, as requested by the Holder surrendering
      the same. No service charge will be made for such registration of transfer
      or
      exchange.

     

    Section
      2. Events
      of Default.

     

    (a) An
      “Event
      of Default”,
      wherever used herein, means any one of the following events (whatever the reason
      and whether it shall be voluntary or involuntary or effected by operation of
      law
      or pursuant to any judgment, decree or order of any court, or any order, rule
      or
      regulation of any administrative or governmental body):

     

    (i) Any
      default in the payment of the principal of, interest on or other charges in
      respect of this Debenture, free of any claim of subordination, as and when
      the
      same shall become due and payable (whether on a Conversion Date or the Maturity
      Date or by acceleration or otherwise);

     

    (ii) The
      Obligor shall fail to observe or perform any other covenant, agreement or
      warranty contained in, or otherwise commit any breach or default of any
      provision of this Debenture (except as may be covered by Section
      2(a)(i)
      hereof),
      the Agreement, or any Transaction Document (as defined in Section
      4),
      which
      is not cured with in the time prescribed;

     

    
      
        
        

      

      
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    (iii) The
      Obligor or any subsidiary of the Obligor shall commence, or there shall be
      commenced against the Obligor or any subsidiary of the Obligor under any
      applicable bankruptcy or insolvency laws as now or hereafter in effect or any
      successor thereto, or the Obligor or any subsidiary of the Obligor commences
      any
      other proceeding under any reorganization, arrangement, adjustment of debt,
      relief of debtors, dissolution, insolvency or liquidation or similar law of
      any
      jurisdiction whether now or hereafter in effect relating to the Obligor or
      any
      subsidiary of the Obligor or there is commenced against the Obligor or any
      subsidiary of the Obligor any such bankruptcy, insolvency or other proceeding
      which remains undismissed for a period of 61 days; or the Obligor or any
      subsidiary of the Obligor is adjudicated insolvent or bankrupt; or any order
      of
      relief or other order approving any such case or proceeding is entered; or
      the
      Obligor or any subsidiary of the Obligor suffers any appointment of any
      custodian, private or court appointed receiver or the like for it or any
      substantial part of its property which continues undischarged or unstayed for
      a
      period of sixty one (61) days; or the Obligor or any subsidiary of the Obligor
      makes a general assignment for the benefit of creditors; or the Obligor or
      any
      subsidiary of the Obligor shall fail to pay, or shall state that it is unable
      to
      pay, or shall be unable to pay, its debts generally as they become due; or
      the
      Obligor or any subsidiary of the Obligor shall call a meeting of its creditors
      with a view to arranging a composition, adjustment or restructuring of its
      debts; or the Obligor or any subsidiary of the Obligor shall by any act or
      failure to act expressly indicate its consent to, approval of or acquiescence
      in
      any of the foregoing; or any corporate or other action is taken by the Obligor
      or any subsidiary of the Obligor for the purpose of effecting any of the
      foregoing;

     

    (iv) The
      Obligor or any subsidiary of the Obligor shall default in any of its obligations
      under any other debenture or any mortgage, credit agreement or other facility,
      indenture agreement, factoring agreement or other instrument under which there
      may be issued, or by which there may be secured or evidenced any indebtedness
      for borrowed money or money due under any long term leasing or factoring
      arrangement of the Obligor or any subsidiary of the Obligor in an amount
      exceeding $100,000, whether such indebtedness now exists or shall hereafter
      be
      created and such default shall result in such indebtedness becoming or being
      declared due and payable prior to the date on which it would otherwise become
      due and payable;

     

    (v) The
      Common Stock shall cease to be quoted for trading or listing for trading on
      any
      of (a) the American Stock Exchange, (b) New York Stock Exchange, (c) the Nasdaq
      National Market, (d) the Nasdaq Capital Market, or (e) the Nasdaq OTC Bulletin
      Board (“OTC”)
      (each,
      a “Primary
      Market”)
      and
      shall not again be quoted or listed for trading on any Primary Market within
      five (5) Trading Days of such delisting;

     

    (vi) The
      Obligor or any subsidiary of the Obligor shall be a party to any Change of
      Control Transaction (as defined in Section
      4);
      

     

    (vii) The
      Obligor shall fail for any reason to deliver Common Stock certificates to a
      Holder prior to the fifth (5th)
      Trading
      Day after a Conversion Date or the Obligor shall provide notice to the Holder,
      including by way of public announcement, at any time, of its intention not
      to
      comply with requests for conversions of this Debenture in accordance with the
      terms hereof; 

     

    (viii) The
      Obligor shall fail for any reason to deliver the payment in cash pursuant to
      a
      Buy-In (as defined herein) within three (3) days after notice is claimed
      delivered hereunder; 

     

    
      
        
        

      

      
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    (b) During
      the time that any portion of this Debenture is outstanding, if any Event of
      Default has occurred, the full principal amount of this Debenture, together
      with
      interest and other amounts owing in respect thereof, to the date of acceleration
      shall become at the Holder's election, immediately due and payable in cash,
      provided
      however,
      the
      Holder may request (but shall have no obligation to request) payment of such
      amounts in Common Stock of the Obligor. In addition to any other remedies,
      the
      Holder shall have the right (but not the obligation) to convert this Debenture
      at any time after (x) an Event of Default or (y) the Maturity Date at the
      Conversion Price then in-effect. The Holder need not provide and the Obligor
      hereby waives any presentment, demand, protest or other notice of any kind,
      and
      the Holder may immediately and without expiration of any grace period enforce
      any and all of its rights and remedies hereunder and all other remedies
      available to it under applicable law. Such declaration may be rescinded and
      annulled by Holder at any time prior to payment hereunder. No such rescission
      or
      annulment shall affect any subsequent Event of Default or impair any right
      consequent thereon. Upon an Event of Default, notwithstanding any other
      provision of this Debenture or any Transaction Document, the Holder shall have
      no obligation to comply with or adhere to any limitations, if any, on the
      conversion of this Debenture or the sale of the Underlying Shares. 

     

    Section
      3. Conversion.

     

    (a) (i) Conversion
      at Option of Holder.

     

    (A) This
      Debenture shall be convertible into shares of Common Stock at the option of
      the
      Holder, in whole or in part at any time and from time to time, after the
      Original Issue Date (as defined in Section 4) (subject to the limitations on
      conversion set forth in Section
      3(a)(ii)
      hereof).
      The number of shares of Common Stock issuable upon a conversion hereunder equals
      the quotient obtained by dividing (x) the outstanding amount of this Debenture
      to be converted by (y) the Conversion Price (as defined in Section
      3(c)(i)).
      The
      Obligor shall deliver Common Stock certificates to the Holder prior to the
      Fifth
      (5th)
      Trading
      Day after a Conversion Date.

     

    (B) Notwithstanding
      anything to the contrary contained herein, if on any Conversion Date: (1) the
      number of shares of Common Stock at the time authorized, unissued and unreserved
      for all purposes, or held as treasury stock, is insufficient to pay principal
      and interest hereunder in shares of Common Stock; (2) the Common Stock is not
      listed or quoted for trading on the OTC or on a Subsequent Market; or (3) the
      Obligor has failed to timely satisfy its conversion, then, at the option of
      the
      Holder, the Obligor, in lieu of delivering shares of Common Stock pursuant
      to
Section
      3(a)(i)(A),
      shall
      deliver, within three (3) Trading Days of each applicable Conversion Date,
      an
      amount in cash equal to the product of the outstanding principal amount to
      be
      converted plus any interest due therein divided by the Conversion Price and
      multiplied by the highest closing price of the stock from date of the conversion
      notice till the date that such cash payment is made.

     

    Further,
      if the Obligor shall not have delivered any cash due in respect of conversion
      of
      this Debenture or as payment of interest thereon by the fifth (5th)
      Trading
      Day after the Conversion Date, the Holder may, by notice to the Obligor, require
      the Obligor to issue shares of Common Stock pursuant to Section
      3(c),
      except
      that for such purpose the Conversion Price applicable thereto shall be the
      lesser of the Conversion Price on the Conversion Date and the Conversion Price
      on the date of such Holder demand. Any such shares will be subject to the
      provisions of this Section.

     

    
      
        
        

      

      
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    (C) The
      Holder shall effect conversions by delivering to the Obligor a completed notice
      in the form attached hereto as Exhibit A (a “Conversion
      Notice”).
      The
      date on which a Conversion Notice is delivered is the “Conversion
      Date.”
Unless
      the Holder is converting the entire principal amount outstanding under this
      Debenture, the Holder is not required to physically surrender this Debenture
      to
      the Obligor in order to effect conversions. Conversions hereunder shall have
      the
      effect of lowering the outstanding principal amount of this Debenture plus
      all
      accrued and unpaid interest thereon in an amount equal to the applicable
      conversion. The Holder and the Obligor shall maintain records showing the
      principal amount converted and the date of such conversions. In the event of
      any
      dispute or discrepancy, the records of the Holder shall be controlling and
      determinative in the absence of manifest error.

     

    (ii) Certain
      Conversion Restrictions.

     

    (A) The
      Company shall not effect any conversions of this Debenture and the Holder shall
      not have the right to convert any portion of this Debenture or receive shares
      of
      Common Stock as payment of interest hereunder to the extent that after giving
      effect to such conversion or receipt of such interest payment, the Holder,
      together with any affiliate thereof, would beneficially own (as determined
      in
      accordance with Section 13(d) of the Exchange Act and the rules promulgated
      thereunder) in excess of 4.99% of the number of shares of Common Stock
      outstanding immediately after giving effect to such conversion or receipt of
      shares as payment of interest. Since the Holder will not be obligated to report
      to the Company the number of shares of Common Stock it may hold at the time
      of a
      conversion hereunder, unless the conversion at issue would result in the
      issuance of shares of Common Stock in excess of 4.99% of the then outstanding
      shares of Common Stock without regard to any other shares which may be
      beneficially owned by the Holder or an affiliate thereof, the Holder shall
      have
      the authority and obligation to determine whether the restriction contained
      in
      this Section will limit any particular conversion hereunder and to the extent
      that the Holder determines that the limitation contained in this Section
      applies, the determination of which portion of the principal amount of this
      Debenture is convertible shall be the responsibility and obligation of the
      Holder. If the Holder has delivered a Conversion Notice for a principal amount
      of this Debenture that, without regard to any other shares that the Holder
      or
      its affiliates may beneficially own, would result in the issuance in excess
      of
      the permitted amount hereunder, the Company shall notify the Holder of this
      fact
      and shall honor the conversion for the maximum principal amount permitted to
      be
      converted on such Conversion Date in accordance with the periods described
      in
Section
      4(a)(i)
      and, any
      principal amount tendered for conversion in excess of the permitted amount
      hereunder shall remain outstanding under this Debenture. The provisions of
      this
      Section may be waived by a Holder (but only as to itself and not to any other
      Holder) upon not less than 65 days prior notice to the Company. Other Holders
      shall be unaffected by any such waiver.

     

    (b) (i) Nothing
      herein shall limit a Holder's right to pursue actual damages or declare an
      Event
      of Default pursuant to Section
      2
      herein
      for the Obligor 's failure to deliver certificates representing shares of Common
      Stock upon conversion within the period specified herein and such Holder shall
      have the right to pursue all remedies available to it at law or in equity
      including, without limitation, a decree of specific performance and/or
      injunctive relief, in each case without the need to post a bond or provide
      other
      security. The exercise of any such rights shall not prohibit the Holder from
      seeking to enforce damages pursuant to any other Section hereof or under
      applicable law. 

     

    
      
        
        

      

      
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    (ii) In
      addition to any other rights available to the Holder, if the Obligor fails
      to
      deliver to the Holder such certificate or certificates pursuant to Section
      3(a)(i)(A)
      by the
      fifth (5th)
      Trading
      Day after the Conversion Date, and if after such fifth (5th)
      Trading
      Day the Holder purchases (in an open market transaction or otherwise) Common
      Stock to deliver in satisfaction of a sale by such Holder of the Underlying
      Shares which the Holder anticipated receiving upon such conversion (a
“Buy-In”),
      then
      the Obligor shall (A) pay in cash to the Holder (in addition to any remedies
      available to or elected by the Holder) the amount by which (x) the Holder's
      total purchase price (including brokerage commissions, if any) for the Common
      Stock so purchased exceeds (y) the product of (1) the aggregate number of shares
      of Common Stock that such Holder anticipated receiving from the conversion
      at
      issue multiplied by (2) the market price of the Common Stock at the time of
      the
      sale giving rise to such purchase obligation and (B) at the option of the
      Holder, either reissue a Debenture in the principal amount equal to the
      principal amount of the attempted conversion or deliver to the Holder the number
      of shares of Common Stock that would have been issued had the Obligor timely
      complied with its delivery requirements under Section
      3(a)(i)(A).
      For
      example, if the Holder purchases Common Stock having a total purchase price
      of
      $11,000 to cover a Buy-In with respect to an attempted conversion of Debentures
      with respect to which the market price of the Underlying Shares on the date
      of
      conversion was a total of $10,000 under clause (A) of the immediately preceding
      sentence, the Obligor shall be required to pay the Holder $1,000. The Holder
      shall provide the Obligor written notice indicating the amounts payable to
      the
      Holder in respect of the Buy-In. 

     

    (c) (i) The
      Holder is entitled, at its option, to convert, and sell on the same day, at
      any
      time, until payment in full of this Debenture, all or any part of the principal
      amount of the Debenture, plus accrued interest, into shares of the Company’s
      common stock, no par value per share, at the price per share equal to the lesser
      of (a) $0.0013
      (the
“Fixed
      Price”)
      or
      (b) an amount equal to eighty percent (80%) of the lowest Closing Bid
      Price of the Common Stock for the five (5) trading days immediately preceding
      the Conversion Date Subparagraphs (a) and (b) above are individually
      referred to as a “Conversion
      Price”
and
      may
      be adjusted pursuant to the other terms of this Debenture. 

     

    (ii) If
      the
      Obligor, at any time while this Debenture is outstanding, shall (a) pay a
      stock dividend or otherwise make a distribution or distributions on shares
      of
      its Common Stock or any other equity or equity equivalent securities payable
      in
      shares of Common Stock, (b) subdivide outstanding shares of Common Stock into
      a
      larger number of shares, (c) combine (including by way of reverse stock split)
      outstanding shares of Common Stock into a smaller number of shares, or (d)
      issue
      by reclassification of shares of the Common Stock any shares of capital stock
      of
      the Obligor, then the Conversion Price shall be multiplied by a fraction of
      which the numerator shall be the number of shares of Common Stock (excluding
      treasury shares, if any) outstanding before such event and of which the
      denominator shall be the number of shares of Common Stock outstanding after
      such
      event. Any adjustment made pursuant to this Section shall become effective
      immediately after the record date for the determination of stockholders entitled
      to receive such dividend or distribution and shall become effective immediately
      after the effective date in the case of a subdivision, combination or
      re-classification.

     

    
      
        
        

      

      
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    (iii) If
      the
      Obligor, at any time while this Debenture is outstanding, shall issue rights,
      options or warrants to all holders of Common Stock (and not to the Holder)
      entitling them to subscribe for or purchase shares of Common Stock at a price
      per share less than the Conversion Price, then the Conversion Price shall be
      multiplied by a fraction, of which the denominator shall be the number of shares
      of the Common Stock (excluding treasury shares, if any) outstanding on the
      date
      of issuance of such rights or warrants (plus the number of additional shares
      of
      Common Stock offered for subscription or purchase), and of which the numerator
      shall be the number of shares of the Common Stock (excluding treasury shares,
      if
      any) outstanding on the date of issuance of such rights or warrants, plus the
      number of shares which the aggregate offering price of the total number of
      shares so offered would purchase at the Conversion Price. Such adjustment shall
      be made whenever such rights or warrants are issued, and shall become effective
      immediately after the record date for the determination of stockholders entitled
      to receive such rights, options or warrants. However, upon the expiration of
      any
      such right, option or warrant to purchase shares of the Common Stock the
      issuance of which resulted in an adjustment in the Conversion Price pursuant
      to
      this Section, if any such right, option or warrant shall expire and shall not
      have been exercised, the Conversion Price shall immediately upon such expiration
      be recomputed and effective immediately upon such expiration be increased to
      the
      price which it would have been (but reflecting any other adjustments in the
      Conversion Price made pursuant to the provisions of this Section after the
      issuance of such rights or warrants) had the adjustment of the Conversion Price
      made upon the issuance of such rights, options or warrants been made on the
      basis of offering for subscription or purchase only that number of shares of
      the
      Common Stock actually purchased upon the exercise of such rights, options or
      warrants actually exercised.

     

    (iv) If
      the
      Obligor or any subsidiary thereof, as applicable, at any time while this
      Debenture is outstanding, shall issue shares of Common Stock or rights,
      warrants, options or other securities or debt that are convertible into or
      exchangeable for shares of Common Stock (“Common
      Stock Equivalents”)
      entitling any Person to acquire shares of Common Stock, at a price per share
      less than the Conversion Price (if the holder of the Common Stock or Common
      Stock Equivalent so issued shall at any time, whether by operation of purchase
      price adjustments, reset provisions, floating conversion, exercise or exchange
      prices or otherwise, or due to warrants, options or rights per share which
      is
      issued in connection with such issuance, be entitled to receive shares of Common
      Stock at a price per share which is less than the Conversion Price, such
      issuance shall be deemed to have occurred for less than the Conversion Price),
      then, at the sole option of the Holder, the Conversion Price shall be adjusted
      to mirror the conversion, exchange or purchase price for such Common Stock
      or
      Common Stock Equivalents (including any reset provisions thereof) at issue.
      Such
      adjustment shall be made whenever such Common Stock or Common Stock Equivalents
      are issued. The Obligor shall notify the Holder in writing, no later than one
      (1) business day following the issuance of any Common Stock or Common Stock
      Equivalent subject to this Section, indicating therein the applicable issuance
      price, or of applicable reset price, exchange price, conversion price and other
      pricing terms. No adjustment under this Section shall be made as a result of
      issuances and exercises of options to purchase shares of Common Stock issued
      for
      compensatory purposes pursuant to any of the Obligor's stock option or stock
      purchase plans.

     

    
      
        
        

      

      
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    (v) If
      the
      Obligor, at any time while this Debenture is outstanding, shall distribute
      to
      all holders of Common Stock (and not to the Holder) evidences of its
      indebtedness or assets or rights or warrants to subscribe for or purchase any
      security, then in each such case the Conversion Price at which this Debenture
      shall thereafter be convertible shall be determined by multiplying the
      Conversion Price in effect immediately prior to the record date fixed for
      determination of stockholders entitled to receive such distribution by a
      fraction of which the denominator shall be the Closing Bid Price determined
      as
      of the record date mentioned above, and of which the numerator shall be such
      Closing Bid Price on such record date less the then 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.

     

    (vi) In
      case
      of any reclassification of the Common Stock or any compulsory share exchange
      pursuant to which the Common Stock is converted into other securities, cash
      or
      property, the Holder shall have the right thereafter to, at its option, (A)
      convert the then outstanding principal amount, together with all accrued but
      unpaid interest and any other amounts then owing hereunder in respect of this
      Debenture into the shares of stock and other securities, cash and property
      receivable upon or deemed to be held by holders of the Common Stock following
      such reclassification or share exchange, and the Holder of this Debenture shall
      be entitled upon such event to receive such amount of securities, cash or
      property as the shares of the Common Stock of the Obligor into which the then
      outstanding principal amount, together with all accrued but unpaid interest
      and
      any other amounts then owing hereunder in respect of this Debenture could have
      been converted immediately prior to such reclassification or share exchange
      would have been entitled, or (B) require the Obligor to prepay the outstanding
      principal amount of this Debenture, plus all interest and other amounts due
      and
      payable thereon. The entire prepayment price shall be paid in cash. This
      provision shall similarly apply to successive reclassifications or share
      exchanges.

     

    (vii) The
      Obligor shall maintain a share reserve of not less than one hundred percent
      (100%) of the shares of Common Stock issuable upon conversion of this Debenture;
      and within three (3) Business Days following the receipt by the Obligor of
      a
      Holder's notice that such minimum number of Underlying Shares is not so
      reserved, the Obligor shall promptly reserve a sufficient number of shares
      of
      Common Stock to comply with such requirement.

     

    (viii) All
      price
      calculations under this Section
      3
      shall be
      rounded to the nearest $0.0001.

     

    (ix) Whenever
      the Conversion Price is adjusted pursuant to Section
      3
      hereof,
      the Obligor shall promptly mail to the Holder a notice setting forth the
      Conversion Price after such adjustment and setting forth a brief statement
      of
      the facts requiring such adjustment.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

     

    (x) If
      (A)
      the Obligor shall declare a dividend (or any other distribution) on the Common
      Stock; (B) the Obligor shall declare a special nonrecurring cash dividend on
      or
      a redemption of the Common Stock; (C) the Obligor shall authorize the granting
      to all holders of the Common Stock rights or warrants to subscribe for or
      purchase any shares of capital stock of any class or of any rights; (D) the
      approval of any stockholders of the Obligor shall be required in connection
      with
      any reclassification of the Common Stock, any consolidation or merger to which
      the Obligor is a party, any sale or transfer of all or substantially all of
      the
      assets of the Obligor, of any compulsory share exchange whereby the Common
      Stock
      is converted into other securities, cash or property; or (E) the Obligor shall
      authorize the voluntary or involuntary dissolution, liquidation or winding
      up of
      the affairs of the Obligor; then, in each case, the Obligor shall cause to
      be
      filed at each office or agency maintained for the purpose of conversion of
      this
      Debenture, and shall cause to be mailed to the Holder at its last address as
      it
      shall appear upon the stock books of the Obligor, at least twenty (20) calendar
      days prior to the applicable record or effective date hereinafter specified,
      a
      notice stating (x) the date on which a record is to be taken for the purpose
      of
      such dividend, distribution, redemption, rights or warrants, or if a record
      is
      not to be taken, the date as of which the holders of the Common Stock of record
      to be entitled to such dividend, distributions, redemption, rights or warrants
      are to be determined or (y) the date on which such reclassification,
      consolidation, merger, sale, transfer or share exchange is expected to become
      effective or close, and the date as of which it is expected that holders of
      the
      Common Stock of record shall be entitled to exchange their shares of the Common
      Stock for securities, cash or other property deliverable upon such
      reclassification, consolidation, merger, sale, transfer or share exchange,
      provided, that the failure to mail such notice or any defect therein or in
      the
      mailing thereof shall not affect the validity of the corporate action required
      to be specified in such notice. The Holder is entitled to convert this Debenture
      during the 20-day calendar period commencing the date of such notice to the
      effective date of the event triggering such notice.

     

    (xi) In
      case
      of any (1) merger or consolidation of the Obligor or any subsidiary of the
      Obligor with or into another Person, or (2) sale by the Obligor or any
      subsidiary of the Obligor of more than one-half of the assets of the Obligor
      in
      one or a series of related transactions, a Holder shall have the right to (A)
      exercise any rights under Section
      2(b),
      (B)
      convert the aggregate amount of this Debenture then outstanding into the shares
      of stock and other securities, cash and property receivable upon or deemed
      to be
      held by holders of Common Stock following such merger, consolidation or sale,
      and such Holder shall be entitled upon such event or series of related events
      to
      receive such amount of securities, cash and property as the shares of Common
      Stock into which such aggregate principal amount of this Debenture could have
      been converted immediately prior to such merger, consolidation or sales would
      have been entitled, or (C) in the case of a merger or consolidation, require
      the
      surviving entity to issue to the Holder a convertible Debenture with a principal
      amount equal to the aggregate principal amount of this Debenture then held
      by
      such Holder, plus all accrued and unpaid interest and other amounts owing
      thereon, which such newly issued convertible Debenture shall have terms
      identical (including with respect to conversion) to the terms of this Debenture,
      and shall be entitled to all of the rights and privileges of the Holder of
      this
      Debenture set forth herein and the agreements pursuant to which this Debentures
      were issued. In the case of clause (C), the conversion price applicable for
      the
      newly issued shares of convertible preferred stock or convertible Debentures
      shall be based upon the amount of securities, cash and property that each share
      of Common Stock would receive in such transaction and the Conversion Price
      in
      effect immediately prior to the effectiveness or closing date for such
      transaction. The terms of any such merger, sale or consolidation shall include
      such terms so as to continue to give the Holder the right to receive the
      securities, cash and property set forth in this Section upon any conversion
      or
      redemption following such event. This provision shall similarly apply to
      successive such events.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

     

    (d) The
      Obligor covenants that it will at all times reserve and keep available out
      of
      its authorized and unissued shares of Common Stock solely for the purpose of
      issuance upon conversion of this Debenture and payment of interest on this
      Debenture, each as herein provided, free from preemptive rights or any other
      actual contingent purchase rights of persons other than the Holder, not less
      than such number of shares of the Common Stock as shall (subject to any
      additional requirements of the Obligor as to reservation of such shares set
      forth in this Debenture) be issuable (taking into account the adjustments and
      restrictions of Sections
      2(b) and 3(c))
      upon
      the conversion of the outstanding principal amount of this Debenture and payment
      of interest hereunder. The Obligor covenants that all shares of Common Stock
      that shall be so issuable shall, upon issue, be duly and validly authorized,
      issued and fully paid, nonassessable and, if the Underlying Shares Registration
      Statement has been declared effective under the Securities Act, registered
      for
      public sale in accordance with such Underlying Shares Registration
      Statement.

     

    (e) Upon
      a
      conversion hereunder the Obligor shall not be required to issue stock
      certificates representing fractions of shares of the Common Stock, but may
      if
      otherwise permitted, make a cash payment in respect of any final fraction of
      a
      share based on the Closing Bid Price at such time. If the Obligor elects not,
      or
      is unable, to make such a cash payment, the Holder shall be entitled to receive,
      in lieu of the final fraction of a share, one whole share of Common
      Stock.

     

    (f) The
      issuance of certificates for shares of the Common Stock on conversion of this
      Debenture shall be made without charge to the Holder thereof for any documentary
      stamp or similar taxes that may be payable in respect of the issue or delivery
      of such certificate, provided that the Obligor shall not be required to pay
      any
      tax that may be payable in respect of any transfer involved in the issuance
      and
      delivery of any such certificate upon conversion in a name other than that
      of
      the Holder of such Debenture so converted and the Obligor shall not be required
      to issue or deliver such certificates unless or until the person or persons
      requesting the issuance thereof shall have paid to the Obligor the amount of
      such tax or shall have established to the satisfaction of the Obligor that
      such
      tax has been paid.

     

    (g) Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms hereof must be in writing and will be deemed to have
      been
      delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
      when
      sent by facsimile (provided confirmation of transmission is mechanically or
      electronically generated and kept on file by the sending party); or (iii) one
      (1) trading day after deposit with a nationally recognized overnight delivery
      service, in each case properly addressed to the party to receive the same.
      The
      addresses and facsimile numbers for such communications shall be:

    

    

    
      	
              If
                to the Company, to:

            	
              Headliners
                Entertainment Group, Inc.

            
	 	
              501
                Bloomfield Avenue

            
	 	
              Montclair,
                New Jersey 07042

            
	 	
              Attention: Frank
                J Orlando

            
	 	
              Telephone: (973)
                685-5989

            
	 	
              Facsimile: (973)
                860-1164 

            
	 	 

    

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    
      	
              With
                a copy to:

            	
              Sichenzia
                Ross Friedman Ference LLP

              Tom
                Rose

            
	 	
              1065
                Avenue of the Americas

              New
                York, NY 10018

            
	 	
              Telephone: (212)
                930-9700 

            
	 	
              Facsimile: (212)
                930-9725

            
	 	 
	
              If
                to the Holder:

            	
              Cornell
                Capital Partners, LP

            
	 	
              101
                Hudson Street, Suite 3700

            
	 	
              Jersey
                City, NJ 07303

            
	 	
              Attention: Mark
                Angelo

            
	 	
              Telephone: (201)
                985-8300

            
	 	 
	
              With
                a copy to:

            	
              Troy
                Rillo, Esq. 

            
	 	
              101
                Hudson Street - Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile: (201)
                985-8266

            
	 	 

    

    

    or
      at
      such other address and/or facsimile number and/or to the attention of such
      other
      person as the recipient party has specified by written notice given to each
      other party three (3) business days prior to the effectiveness of such change.
      Written confirmation of receipt (i) given by the recipient of such notice,
      consent, waiver or other communication, (ii) mechanically or electronically
      generated by the sender's facsimile machine containing the time, date, recipient
      facsimile number and an image of the first page of such transmission or (iii)
      provided by a nationally recognized overnight delivery service, shall be
      rebuttable evidence of personal service, receipt by facsimile or receipt from
      a
      nationally recognized overnight delivery service in accordance with clause
      (i),
      (ii) or (iii) above, respectively.

     

    Section
      4. Definitions.
      For the
      purposes hereof, the following terms shall have the following
      meanings:

     

    “Business
      Day”
means
      any day except Saturday, Sunday and any day which shall be a federal legal
      holiday in the United States or a day on which banking institutions are
      authorized or required by law or other government action to close.

     

    “Change
      of Control Transaction”
means
      the occurrence of (a) an acquisition after the date hereof by an individual
      or
      legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the
      Exchange Act) of effective control (whether through legal or beneficial
      ownership of capital stock of the Obligor, by contract or otherwise) of in
      excess of fifty percent (50%) of the voting securities of the Obligor (except
      that the acquisition of voting securities by the Holder shall not constitute
      a
      Change of Control Transaction for purposes hereof), (b) a replacement at one
      time or over time of more than one-half of the members of the board of directors
      of the Obligor which is not approved by a majority of those individuals who
      are
      members of the board of directors on the date hereof (or by those individuals
      who are serving as members of the board of directors on any date whose
      nomination to the board of directors was approved by a majority of the members
      of the board of directors who are members on the date hereof), (c) the merger,
      consolidation or sale of fifty percent (50%) or more of the assets of the
      Obligor or any subsidiary of the Obligor in one or a series of related
      transactions with or into another entity, or (d) the execution by the Obligor
      of
      an agreement to which the Obligor is a party or by which it is bound, providing
      for any of the events set forth above in (a), (b) or (c).

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

     

    “Commission”
means
      the Securities and Exchange Commission.

     

    “Common
      Stock”
means
      the common stock, no par value, of the Obligor and stock of any other class
      into
      which such shares may hereafter be changed or reclassified.

     

    “Conversion
      Date”
shall
      mean the date upon which the Holder gives the Obligor notice of their intention
      to effectuate a conversion of this Debenture into shares of the Company’s Common
      Stock as outlined herein.

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended.

     

    “Original
      Issue Date”
shall
      mean the date of the first issuance of this Debenture regardless of the number
      of transfers and regardless of the number of instruments, which may be issued
      to
      evidence such Debenture.

     

    “Closing
      Bid Price”
means
      the price per share in the last reported trade of the Common Stock on the
      Primary Market or on the exchange which the Common Stock is then listed as
      quoted by Bloomberg, LP.

     

    “Person”
means
      a
      corporation, an association, a partnership, organization, a business, an
      individual, a government or political subdivision thereof or a governmental
      agency.

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder.

     

    “Trading
      Day”
means
      a
      day on which the shares of Common Stock are quoted on the Primary Market or
      the
      market on which the shares of Common Stock are then quoted or listed; provided,
      that in the event that the shares of Common Stock are not listed or quoted,
      then
      Trading Day shall mean a Business Day.

     

    “Transaction
      Documents”
means
      the Promissory Note Purchase Agreement dated January 25, 2005 between the
      Obligor and the Holder and any and all related documents, agreements and
      instruments thereto, the Security Agreement, the Pledge Agreement, the
      Irrevocable Transfer Agent Instructions with Interwest Stock Transfer Co. dated
      November 18, 2005; and the Registration Rights Agreement dated November 18,
      2005. 

     

    “Underlying
      Shares”
means
      the shares of Common Stock issuable upon conversion of this Debenture or as
      payment of interest in accordance with the terms hereof.

     

    Section
      5. Except
      as
      expressly provided herein, no provision of this Debenture shall alter or impair
      the obligations of the Obligor, which are absolute and unconditional, to pay
      the
      principal of, interest and other charges (if any) on, this Debenture at the
      time, place, and rate, and in the coin or currency, herein prescribed. This
      Debenture is a direct obligation of the Obligor. This Debenture ranks pari
      passu
      with all other Debentures now or hereafter issued under the terms set forth
      herein. As long as this Debenture is outstanding, the Obligor shall not and
      shall cause their subsidiaries not to, without the consent of the Holder, (i)
      amend its certificate of incorporation, bylaws or other charter documents so
      as
      to adversely affect any rights of the Holder; (ii) repay, repurchase or offer
      to
      repay, repurchase or otherwise acquire shares of its Common Stock or other
      equity securities other than as to the Underlying Shares to the extent permitted
      or required under the Transaction Documents; or (iii) enter into any agreement
      with respect to any of the foregoing. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

     

    Section
      6. This
      Debenture shall not entitle the Holder to any of the rights of a stockholder
      of
      the Obligor, including without limitation, the right to vote, to receive
      dividends and other distributions, or to receive any notice of, or to attend,
      meetings of stockholders or any other proceedings of the Obligor, unless and
      to
      the extent converted into shares of Common Stock in accordance with the terms
      hereof.

     

    Section
      7. If
      this
      Debenture is mutilated, lost, stolen or destroyed, the Obligor shall execute
      and
      deliver, in exchange and substitution for and upon cancellation of the mutilated
      Debenture, or in lieu of or in substitution for a lost, stolen or destroyed
      Debenture, a new Debenture for the principal amount of this Debenture so
      mutilated, lost, stolen or destroyed but only upon receipt of evidence of such
      loss, theft or destruction of such Debenture, and of the ownership hereof,
      and
      indemnity, if requested, all reasonably satisfactory to the
      Obligor.

     

    Section
      8. No
      indebtedness of the Obligor is senior to this Debenture in right of payment,
      whether with respect to interest, damages or upon liquidation or dissolution
      or
      otherwise. Without the Holder’s consent, the Obligor will not and will not
      permit any of their subsidiaries to, directly or indirectly, enter into, create,
      incur, assume or suffer to exist any indebtedness of any kind, on or with
      respect to any of its property or assets now owned or hereafter acquired or
      any
      interest therein or any income or profits there from that is senior in any
      respect to the obligations of the Obligor under this Debenture.

     

    Section
      9. This
      Debenture shall be governed by and construed in accordance with the laws of
      the
      State of New Jersey, without giving effect to conflicts of laws thereof. Each
      of
      the parties consents to the jurisdiction of the Superior Courts of the State
      of
      New Jersey sitting in Hudson County, New Jersey and the U.S. District Court
      for the District of New Jersey sitting in Newark, New Jersey in connection
      with
      any dispute arising under this Debenture and hereby waives, to the maximum
      extent permitted by law, any objection, including any objection based on
forum non conveniens
      to the
      bringing of any such proceeding in such jurisdictions. 

     

    Section
      10. If
      the
      Obligor fails to strictly comply with the terms of this Debenture, then the
      Obligor shall reimburse the Holder promptly for all fees, costs and expenses,
      including, without limitation, attorneys’ fees and expenses incurred by the
      Holder in any action in connection with this Debenture, including, without
      limitation, those incurred: (i) during any workout, attempted workout, and/or
      in
      connection with the rendering of legal advice as to the Holder’s rights,
      remedies and obligations, (ii) collecting any sums which become due to the
      Holder, (iii) defending or prosecuting any proceeding or any counterclaim to
      any
      proceeding or appeal; or (iv) the protection, preservation or enforcement of
      any
      rights or remedies of the Holder.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

     

    Section
      11. Any
      waiver by the Holder of a breach of any provision of this Debenture shall not
      operate as or be construed to be a waiver of any other breach of such provision
      or of any breach of any other provision of this Debenture. The failure of the
      Holder to insist upon strict adherence to any term of this Debenture on one
      or
      more occasions shall not be considered a waiver or deprive that party of the
      right thereafter to insist upon strict adherence to that term or any other
      term
      of this Debenture. Any waiver must be in writing.

     

    Section
      12. If
      any
      provision of this Debenture is invalid, illegal or unenforceable, the balance
      of
      this Debenture shall remain in effect, and if any provision is inapplicable
      to
      any person or circumstance, it shall nevertheless remain applicable to all
      other
      persons and circumstances. If it shall be found that any interest or other
      amount deemed interest due hereunder shall violate applicable laws governing
      usury, the applicable rate of interest due hereunder shall automatically be
      lowered to equal the maximum permitted rate of interest. The Obligor covenants
      (to the extent that it may lawfully do so) that it shall not at any time insist
      upon, plead, or in any manner whatsoever claim or take the benefit or advantage
      of, any stay, extension or usury law or other law which would prohibit or
      forgive the Obligor from paying all or any portion of the principal of or
      interest on this Debenture as contemplated herein, wherever enacted, now or
      at
      any time hereafter in force, or which may affect the covenants or the
      performance of this indenture, and the Obligor (to the extent it may lawfully
      do
      so) hereby expressly waives all benefits or advantage of any such law, and
      covenants that it will not, by resort to any such law, hinder, delay or impeded
      the execution of any power herein granted to the Holder, but will suffer and
      permit the execution of every such as though no such law has been
      enacted.

     

    Section
      13. Whenever
      any payment or other obligation hereunder shall be due on a day other than
      a
      Business Day, such payment shall be made on the next succeeding Business
      Day.

     

    Section
      14. THE
      PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY
      OF
      THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON
      OR
      ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION
      DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL
      OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT
      FOR
      THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.

     

    [SIGNATURE
      PAGE FOLLOWS; REMAINDER OF PAGE INTENTIONLLY BLANK]

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

     

    IN
      WITNESS WHEREOF,
      the
      Obligor has caused this Secured Convertible Debenture to be duly executed by
      a
      duly authorized officer as of the date set forth above.

     

    
      	 	
              HEADLINERS
                ENTERTAINMENT GROUP, INC. 

            
	 	 	 
	 	
              By:

            	/s/
              Frank J. Orlando 
	 	 	
              Name:
                Frank J. Orlando 

            
	 	 	
              Title:
                Chief Restructuring Officer

            

    

    

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

     

    EXHIBIT
      “A”

     

    CONVERSION
      NOTICE

     

    (To
      be executed by the Holder in order to Convert the
      Debenture)

     

    

    
      	
              TO:
                

            

    

    

    The
      undersigned hereby irrevocably elects to convert $__________________
of
      the
      principal amount of Debenture No. ETLS 3-1 into Shares of Common Stock of
HEADLINERS
      ENTERTAINMENT GROUP, INC.,
      according to the conditions stated therein, as of the Conversion Date written
      below.

     

    
      	
              Conversion
                Date:

            	 
	
              Amount
                to be converted:

            	
              $        

            
	
              Conversion
                Price:

            	
              $        

            
	
              Number
                of shares of Common Stock to be issued:

            	 
	
              Amount
                of Debenture

              Unconverted:

            	
              $          

            
	 	
                

            
	 	 
	
              Please
                issue the shares of Common Stock in the following name and to the
                following address:

            
	
              Issue
                to:

            	 
	 	 
	
              Authorized
                Signature:

            	 
	
              Name:

            	 
	
              Title:

            	 
	
              Broker
                DTC Participant Code:

            	 
	
              Account
                Number:SERIES
      A
      PREFERRED STOCK PURCHASE AGREEMENT

    

    Dated
      February 20, 2007

    

    by
      and
      between

    

    THE
      LAM
      OPPORTUNITY FUND, LTD

    

    and

    

    SEARCHHELP,
      INC.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      TABLE
        OF CONTENTS

    

    
       

      
        	 	 	
                Page 

              	 
	 	 	 	 
	
                ARTICLE
                  I DEFINITIONS

              	 	
                1

              	 
	
                1.1

              	 	 	
                Definitions

              	 	 	
                1

              	 
	
                1.2

              	 	 	
                Knowledge

              	 	 	
                3

              	 
	
                1.3

              	 	 	
                Interpretation

              	 	 	
                3

              	 
	
                ARTICLE
                  II CLOSING; PURCHASE AND SALE

              	 	
                4

              	 
	
                2.1

              	 	 	
                The
                  Closing

              	 	 	
                4

              	 
	
                2.2

              	 	 	
                Issuance
                  and Delivery of the Purchase Shares

              	 	 	
                4

              	 
	
                2.3

              	 	 	
                The
                  Purchase Price

              	 	 	
                4

              	 
	
                2.4

              	 	 	
                Delivery
                  of Purchase Price

              	 	 	
                4

              	 
	
                2.5

              	 	 	
                Use
                  of Proceeds

              	 	 	
                4

              	 
	
                ARTICLE
                  III REPRESENTATIONS AND WARRANTIES OF THE COMPANY

              	 	
                4

              	 
	
                3.1

              	 	 	
                Organization;
                  Good Standing

              	 	 	
                4

              	 
	
                3.2

              	 	 	
                Subsidiaries

              	 	 	
                5

              	 
	
                3.3

              	 	 	
                Authority;
                  Execution and Delivery; Enforceability

              	 	 	
                5

              	 
	
                3.4

              	 	 	
                Non-Contravention

              	 	 	
                5

              	 
	
                3.5

              	 	 	
                Corporate
                  Documents

              	 	 	
                6

              	 
	
                3.6

              	 	 	
                Capitalization;
                  Options

              	 	 	
                6

              	 
	
                3.7

              	 	 	
                Consents
                  and Approvals

              	 	 	
                7

              	 
	
                3.8

              	 	 	
                SEC
                  Reports and Financial Statements

              	 	 	
                7

              	 
	
                3.9

              	 	 	
                Litigation
                  and Claims

              	 	 	
                8

              	 
	
                3.10

              	 	 	
                No
                  Finder

              	 	 	
                8

              	 
	
                3.11

              	 	 	
                Exempt
                  Offering

              	 	 	
                8

              	 
	
                3.12

              	 	 	
                Agreements;
                  Action

              	 	 	
                8

              	 
	
                3.13

              	 	 	
                Related-Party
                  Transactions

              	 	 	
                8

              	 
	
                3.14

              	 	 	
                Title
                  to Property and Assets

              	 	 	
                9

              	 
	
                3.15

              	 	 	
                Employee
                  Benefit Plans

              	 	 	
                9

              	 
	
                3.16

              	 	 	
                Tax
                  Returns, Payments and Elections

              	 	 	
                9

              	 
	
                3.17

              	 	 	
                Insurance

              	 	 	
                9

              	 
	
                3.18

              	 	 	
                Disclosure

              	 	 	
                10

              	 
	
                ARTICLE
                  IV REPRESENTATIONS AND WARRANTIES OF THE BUYER

              	 	
                10

              	 
	
                4.1

              	 	 	
                Organization
                  and Good Standing

              	 	 	
                10

              	 
	
                4.2

              	 	 	
                Corporate
                  Authority; Execution and Delivery; Enforceability

              	 	 	
                10

              	 
	
                4.3

              	 	 	
                Non-Contravention

              	 	 	
                10

              	 
	
                4.4

              	 	 	
                Consents
                  and Approvals

              	 	 	
                10

              	 
	
                4.5

              	 	 	
                Litigation
                  and Claims

              	 	 	
                11

              	 
	
                4.6

              	 	 	
                No
                  Finder

              	 	 	
                11

              	 
	
                4.7

              	 	 	
                Investment
                  Representations

              	 	 	
                11

              	 
	
                4.8

              	 	 	
                Accredited
                  Investor

              	 	 	
                11

              	 
	
                4.9

              	 	 	
                Access
                  to Information

              	 	 	
                11

              	 
	
                ARTICLE
                  V COVENANTS

              	 	
                11

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                5.1

              	 	 	
                Restrictive
                  Legends

              	 	 	
                11

              	 
	
                5.2

              	 	 	
                Change
                  in Condition

              	 	 	
                12

              	 
	
                ARTICLE
                  VI CONDITIONS PRECEDENT TO OBLIGATIONS OF THE PARTIES

              	 	
                12

              	 
	
                6.1

              	 	 	
                Conditions
                  to obligations of the Buyer

              	 	 	
                12

              	 
	
                6.2

              	 	 	
                Conditions
                  to obligations of the Company

              	 	 	
                13

              	 
	
                ARTICLE
                  VII MISCELLANEOUS

              	 	
                13

              	 
	
                7.1

              	 	 	
                Survival;
                  Certain Other Matters

              	 	 	
                13

              	 
	
                7.2

              	 	 	
                Further
                  Assurances

              	 	 	
                14

              	 
	
                7.3

              	 	 	
                Expenses
                  of the Transaction

              	 	 	
                14

              	 
	
                7.4

              	 	 	
                Notices

              	 	 	
                14

              	 
	
                7.5

              	 	 	
                No
                  Modification Except in Writing

              	 	 	
                15

              	 
	
                7.6

              	 	 	
                Entire
                  Agreement

              	 	 	
                15

              	 
	
                7.7

              	 	 	
                Severability

              	 	 	
                15

              	 
	
                7.8

              	 	 	
                Assignment

              	 	 	
                15

              	 
	
                7.9

              	 	 	
                Governing
                  Law; Jurisdiction

              	 	 	
                16

              	 
	
                7.10

              	 	 	
                Captions

              	 	 	
                16

              	 
	
                7.11

              	 	 	
                Counterparts

              	 	 	
                16

              	 
	
                7.12

              	 	 	
                Delays
                  or Omissions

              	 	 	
                16

              	 

      

      
         

        Exhibit
          A
Certificate
          of Des

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

         

      

    

    SERIES
      A PREFERRED STOCK PURCHASE AGREEMENT

     

    SERIES
      A PREFERRED STOCK PURCHASE AGREEMENT
      (“Agreement”),
      made
      and entered into this 20th day of February, 2007, by and between THE LAM
      OPPORTUNITY FUND, LTD (“Buyer”),
      and
      SEARCHHELP, INC., a Delaware corporation (the “Company”).

    

    WITNESSETH:

     

    WHEREAS,
      the
      Buyer desires to purchase and acquire from the Company, and the Company desires
      to issue and deliver to the Buyer, an aggregate of 30,534 shares of the
      Company’s Series A Convertible Series A Preferred Stock, par value $0.0001
      (“Series
      A Preferred Stock”),
      free
      and clear of all claims, liens, options, charges and encumbrances of any kind
      other than restrictions on transfer as provided under applicable securities
      laws
      (“Liens”)
      and a
      Warrant to purchase from Company 76,335 fully paid and non-assessable shares
      of
      Common Stock, $.0001 par value, at the Exercise Price of $0.26 per share (the
      “Purchase
      Shares”),
      on
      the terms and subject to the conditions hereinafter set forth; and

    

    

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

    

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

     

    
      	
              ARTICLE
                I 

            

    

     

    DEFINITIONS

     

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

     

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

    

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

    

    “Agreement”
has
      the
      meaning ascribed to such term in the Preamble.

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    “Buyer”
has
      the
      meaning ascribed to such term in the Preamble.

    

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

    

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

    

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

    

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

    

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

    

    “Company”
has
      the
      meaning ascribed to such term in the Preamble.

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

    “Lien”
has
      the
      meaning ascribed to such term in the Preamble.

    

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

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

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

    

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

    

    “SEC”
shall
      mean the Securities and Exchange Commission.

    

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

    

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

    

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

    

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

    

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

    

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

    

    “Warrant”
shall
      mean a five-year warrant entitling the holder to purchase 76,335 shares of
      common stock, par value $0.0001 per share, of the Company (the “Common Stock”)
      at the Exercise Price of $0.26 per share. 

    

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

     

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

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

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

     

    
      	
              ARTICLE
                II 

            

    

     

    CLOSING;
      PURCHASE AND SALE

     

    2.1
      The
      Closing.
      Subject
      to the terms and conditions of this Agreement, the closing (the “Closing”)
      of the
      transaction set forth in this Article II shall take place on or before February
      20, 2007, or at such other time or such other date as Buyer and the Company
      may
      agree, at the offices of Katten Muchin Rosenman LLP, 575 Madison Avenue, New
      York, New York (such date upon which the Closing occurs is referred to as the
      “Closing
      Date”).

     

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

     

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

    

     

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

    

     

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

    

     

    
      	
              ARTICLE
                III 

            

    

     

    REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

     

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

    

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

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

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

    

     

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

    

     

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

    

     

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

    

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

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

       

    

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

    

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

     

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

     

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

    

     

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

    

     

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

     

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

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

       

    

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

     

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

    

     

    
      3.8
        SEC
        Reports and Financial Statements.

    

     

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

     

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

     

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

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

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

    

     

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

    

     

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

    

     

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

    

     

    
      	
              ARTICLE
                IV

            

    

     

    REPRESENTATIONS
      AND WARRANTIES OF THE BUYER

     

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

     

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

    

     

    
      4.2
        Corporate
        Authority; Execution and Delivery; Enforceability.
        The
        Buyer has the requisite power and authority to execute and deliver this
        Agreement and the Transaction Documents to which it is a party and to consummate
        the transactions hereby and thereby contemplated. The execution and delivery
        by
        the Buyer of this Agreement and the Transaction Documents to which it is
        a party
        and the consummation by the Buyer of the transactions hereby and thereby
        contemplated have been authorized by all necessary action (corporate or
        otherwise). The Buyer has duly executed and delivered this Agreement and
        the
        Transaction Documents to which it is a party, and, assuming the due execution
        and delivery of this Agreement and the Transaction Documents by each party
        thereto (other than the Buyer), this Agreement and the Transaction Documents
        to
        which it is a party constitute valid and binding obligations of the Buyer
        and
        are enforceable against the Buyer in accordance with its and their respective
        terms, except as such enforceability may be limited by bankruptcy, insolvency,
        fraudulent conveyance, reorganization, moratorium or other similar laws relating
        to or affecting creditors’ rights generally or general equitable principles
        (whether considered in a proceeding at equity or in law).

       

      
        
           

        

        
          8

          
            

          

        

        
           

      

    

     

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

    

     

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

     

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

     

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

    

     

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

    

     

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

    

     

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

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

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

    

     

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

    

     

    
      	
              ARTICLE
                V

            

    

     

    COVENANTS

     

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

    

     

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

     

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

     

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

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
              ARTICLE
                VI 

            

    

     

    CONDITIONS
      PRECEDENT TO OBLIGATIONS OF THE PARTIES

     

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

     

    
      6.1
        Conditions
        to obligations of the
        Buyer.

    

     

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

     

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

     

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

     

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

     

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

     

    
      6.2
        Conditions
        to obligations of the Company.

    

     

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

     

    
      	
              ARTICLE
                VII 

            

    

     

    REGISTRATION
      RIGHTS

     

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

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    
      	
              ARTICLE
                VIII 

            

    

     

    MISCELLANEOUS

     

    
      8.1
        Survival;
        Certain Other Matters. 

    

     

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

     

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

     

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

     

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

       

      
        
           

        

        
          12

          
            

          

        

        
           

      

    

     

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

    

     

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

    

     

    If
      to the
      Buyer:

     

    The
      LAM
      Opportunity Fund, LTD

    45
      Rockefeller Plaza, Suite 2570

    New
      York,
      NY 10111

    Attention:
      Austin Lewis   

    Telecopy:__________________     

    Telephone:
      (212) 332-4450 

    

    With
      a
      copy to:

    

    Name:__________________     

    Address:__________________    

    Attention:__________________        

    Telecopy:__________________     

    Telephone:__________________      

    

    If
      to the
      Company to:

    

    SearchHelp,
      Inc. 

    6800
      Jericho Turnpike, Suite 208E

    Syosett,
      New York 11791

    Attention:
      CFO

    Telecopy:
      (516) 624-0638

    Telephone:
      (516) 922-4765

    

    With
      a
      copy to:

    

    Katten
      Muchin Rosenman LLP

    575
      Madison Avenue

    New
      York,
      New York 10022

    Attention:
      Paul J. Pollock, Esq.

    Telecopy:
      (212) 940-8776

    Telephone:
      (212) 940-8555

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

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

     

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

    

     

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

    

     

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

    

     

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

    

     

    
      8.9
        Governing
        Law; Jurisdiction.

    

     

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

     

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

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

       

    

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

     

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

    

     

    
      8.11
        Counterparts.
        This
        Agreement may be executed in one or more counterparts, each of which shall
        be
        deemed an original and all of which taken together shall constitute a single
        agreement.

    

     

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

    

    

    [Signature
      page follows]

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

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

     

    
      	 	 	 
	 	SEARCHHELP,
              INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
William
              J. Bozsnyak
	 	Chief
              Executive Officer

     

    
      	 	 	 
	 	THE
              LAM
              OPPORTUNITY FUND, LTD
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Austin
              Lewis

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SEARCHHELP,
      INC.

    PAYMENT
      INFORMATION

     ̈PAYMENT
      BY WIRE ̈

     

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

     

    HSBC
      BANK USA

    SearchHelp,
      Inc., IPO Account

    ABA
      # - 021001088

    Account
      # 945705107

    
      	(i)  	
               

            

    

     

     

    
      	
              IMPORTANT:

              1)          
                Please
                have your bank identify on the wire transfer the name of the intended
                investor. 

              2)          
                We
                recommend that your bank charge its wiring fees separately so that
                an even
                amount may be invested.

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