Document:

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                                                                    Exhibit 10.4

                          AMERICAN PULP EXCHANGE, INC.

                                       AND

                            PH CAPITAL HOLDINGS, LLC

                                WARRANT AGREEMENT

                          DATED AS OF NOVEMBER 9, 2002
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                                WARRANT AGREEMENT

         This WARRANT AGREEMENT (this "AGREEMENT") is made and entered into as
of November 9, 2002, by and between American Pulp Exchange, Inc., a Florida
corporation (the "COMPANY"), and PH Capital Holdings, LLC, a California limited
liability company (the "HOLDER").

         The Company and the Holder hereby agree as follows:

SECTION 1. ISSUANCE OF THE WARRANT. Subject to the terms and conditions of this
Agreement, the Company hereby agrees to issue to the Holder a warrant
substantially in the form attached hereto as Exhibit A (the "WARRANT") to
purchase up to an aggregate of Five Hundred Seventy-Five Thousand (575,000)
shares of common stock, par value $0.0025 per share, of the Company (the "COMMON
STOCK"), at the Exercise Price (as defined in Section 2.3 below). The shares of
fully paid, duly authorized and non-assessable Common Stock issuable upon
exercise of the Warrant are referred to herein as the "WARRANT SHARES."

SECTION 2.   TERM OF THE WARRANT; EXERCISE OF THE WARRANT;
             RESTRICTIONS ON EXERCISE; EXERCISE PRICE.

         2.1 TERM OF THE WARRANT. Subject to the terms and conditions of this
Agreement, the Holder shall have the right to purchase the Warrant Shares from
the Company. The Holder's right to purchase the Warrant Shares (a) may be
exercised, in whole or in part, at any time on or after the first business day
following the payment in full of all indebtedness under the Series C Notes in a
Qualified Refinancing and (b) shall expire at 5:00 p.m., Pacific time, on the
earlier of (x) the fifth anniversary of the day on which the Warrant first
becomes exercisable under clause (a) of this Section 2.1 or (y) if the Warrant
does not become exercisable on or before the maturity date of the Series C
Notes, the maturity date of the Series C Notes (the "EXPIRATION DATE"). If the
Warrant is not exercised on or prior to the Expiration Date, then the Warrant
shall become void, and all rights thereunder in respect thereof under this
Agreement shall cease at such time. For purposes of this Agreement, "BUSINESS
DAY" means any day, other than a Saturday, Sunday, or a day on which commercial
banks are required or permitted to be closed for business, "QUALIFIED
REFINANCING" means any equity or debt financing transaction completed by GM and
originated or arranged by the Holder, the net proceeds of which are sufficient,
and are used, to pay in full all indebtedness under the Series C Notes on or
before the maturity date thereof, "SERIES C NOTES" means the Series C 15% Senior
Secured Notes of GM, and "GM" means General Media, Inc., a Delaware corporation.

         2.2 EXERCISE OF THE WARRANT. The Holder may exercise the Warrant upon
surrender to the Company, at its principal office, of the Warrant, together with
a completed and duly executed subscription form in substantially the form
attached hereto as Exhibit B (the "SUBSCRIPTION FORM"), and payment of the
aggregate Exercise Price (as defined in and determined in accordance with
Section 2 hereof) for the number of Warrant Shares in respect of which such
Warrant is then exercised. The aggregate Exercise Price shall be an amount equal
to the product obtained by multiplying (a) the number of Warrant Shares to be
purchased by the Holder by (b) the Exercise Price (as adjusted pursuant to
Section 6 of this Agreement). Unless the Holder has exercised its Net Exercise
Right (as defined in Section 2.4 below), payment of the
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aggregate Exercise Price shall be made wire transfer of funds or by check
payable to the Company's order in the amount of such aggregate Exercise Price.
The Exercise Price will be considered to have been paid only upon clearance of
the wire transfer or check; provided that if the Holder has exercised its Net
Exercise Right, the Surrendered Warrant Shares (as defined in Section 2.4 below)
shall be deemed to satisfy the payment of the Exercise Price.

         A stock certificate representing the Warrant Shares subscribed for will
be issued and delivered as soon as practicable after the conditions set forth in
this Section 2.2 have been satisfied.

         2.3 EXERCISE PRICE. The price per share at which the Warrant Shares
shall be purchasable upon exercise of the Warrant shall be One Cent ($0.01) per
share of Common Stock, subject to adjustment as provided in Section 6 hereof
(the "EXERCISE PRICE").

         2.4 CASHLESS/NET EXERCISE. The Holder may exercise its right (the "NET
EXERCISE RIGHT"), prior to and including the Expiration Date, to receive Warrant
Shares on a net basis, such that, without the payment of cash, the Holder
receives that number of Warrant Shares otherwise issuable (or payable) upon
exercise of the Warrant less that number of Warrant Shares having an aggregate
fair market value (as defined below) at the time of exercise equal to the
aggregate Exercise Price that would otherwise have been paid by the Holder of
the Warrant Shares. The Holder may not exercise a Net Exercise Right unless the
fair market value of the Warrant Shares receivable upon exercise of the Warrant
(the "SURRENDERED WARRANT SHARES") is sufficient to satisfy the payment of the
Exercise Price in full. The number of Warrant Shares to be issued pursuant to
the Holder's exercise of the Net Exercise Right shall be computed using the
following formula:
                      Y(A-B)
                  X= ----------
                        A
where:

                X =    the number of Warrant Shares to be issued to the Holder
                       pursuant to this Section 2.4.

                Y =    the number of Warrant Shares as to which the Net Exercise
                       Right is being exercised.

                A =    the fair market value of one Warrant Share, as
                       determined in good faith by the Company's Board of
                       Directors (the "BOARD"), as at the time the Net
                       Exercise Right is exercised pursuant to this Section
                       2.4.

                B =    the Exercise Price (as adjusted pursuant to Section 6
                       hereof).

         For purposes of this Section 2.4, "fair market value" per Warrant Share
will be the last reported closing price of the Common Stock, which shall be (i)
if the Common Stock is listed or admitted to trading on the New York Stock
Exchange, the closing price on the NYSE-Composite Tape (or any successor
composite tape reporting transactions on the New York Stock Exchange) or, if
such a composite tape shall not be in use or shall not report transactions in
the Common
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Stock, or if the Common Stock shall be listed on a stock exchange other than the
New York Stock Exchange , the last reported sales price regular way or, in case
no such reported sale takes place on such day, the average of the closing bid
and asked prices regular way for such day, in each case on the principal
national securities exchange on which the shares of Common Stock are listed or
admitted to trading (which shall be the national securities exchange on which
the greatest number of shares of the Common Stock have been traded during such
thirty (30) consecutive trading days), or (ii) if the Common Stock is not listed
or admitted to trading on a stock exchange, closing price of the Common Stock as
reported by The Nasdaq Stock Market or a comparable system or, if the Common
Stock is not admitted for quotation in the Nasdaq Stock Market or a comparable
system, the average of the closing bid and asked prices for the then most recent
day on which trading in the Common Stock had occurred, as furnished by the
Nasdaq OTC Bulletin Board. In the absence of one or more such closing prices,
the fair market value per Warrant Share shall be determined reasonably and in
good faith by the Board as of the date of any such exercise.

         2.5 RESTRICTIONS ON EXERCISE. The Warrant may not be exercised if the
issuance of the Warrant Shares upon such exercise would constitute a violation
of any applicable federal or state securities laws or other laws or regulations.
As a condition to the exercise of the Warrant, the Holder shall execute the
Subscription Form, confirming and acknowledging that the representations and
warranties of the Holder set forth in Section 10 hereof are true and correct as
of the date of exercise.

         2.6 PARTIAL EXERCISE. In event that the Warrant is exercised in respect
of fewer than all of the Warrant Shares issuable on such exercise at any time
prior to the Expiration Date, a new Warrant evidencing the remaining Warrant
Shares will be issued.

SECTION 3. PAYMENT OF TAXES. The Company will pay all documentary stamp taxes
attributable to any issuance of the Warrant Shares upon the exercise of the
Warrant; provided, however, that the Company shall not be required to pay any
tax or taxes which may be payable in respect of any transfer involved in the
issue of the Warrant or any certificates for Warrant Shares in a name other than
that of the registered holder of the Warrant surrendered upon the exercise of
the Warrant, and the Company shall not be required to issue or deliver any such
securities unless or until the person or persons requesting the issuance thereof
shall have paid to the Company the amount of such tax or shall have established
to the reasonable satisfaction of the Company that such tax has been paid.

SECTION 4. MUTILATED OR MISSING WARRANT. In case the Warrant shall be mutilated,
lost, stolen or destroyed, the Company may in its discretion issue and deliver
in exchange and substitution for and upon cancellation of the mutilated Warrant,
or in lieu of and substitution for the Warrant lost, stolen or destroyed, a new
Warrant of like tenor; but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction of such Warrant and an
agreement to indemnify the Company, if requested, also reasonably satisfactory
to the Company. Applicants for such substitute Warrant shall also comply with
such other reasonable regulations and pay such other reasonable charges as the
Company may prescribe.

SECTION 5. RESERVATION OF WARRANT SHARES. The Company shall at all times
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reserve and keep available, out of its authorized and unissued shares of Common
Stock, that number of shares of Common Stock sufficient to provide for the full
exercise of the Warrant. The Company or, if appointed, the transfer agent for
the Common Stock (the "TRANSFER AGENT") and every subsequent transfer agent for
any shares of the Company's capital stock issuable upon the exercise of any of
the rights of purchase aforesaid will be irrevocably authorized and directed at
all times to reserve such number of authorized shares as shall be required for
such purpose. The Company will keep a copy of this Agreement on file with the
Transfer Agent and with every subsequent transfer agent for any shares of the
Company's capital stock issuable upon the exercise of the rights of purchase
represented by the Warrant.

SECTION 6. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The
Exercise Price and the number of Warrant Shares issuable upon the exercise of
the Warrant are subject to adjustment from time to time upon the occurrence of
the events enumerated in this Section 6. For purposes of this Section 6, "Common
Stock" means shares now or hereafter authorized of any class of common stock of
the Company and any other stock of the Company, however designated, that has the
right (subject to any prior rights of any class or series of preferred stock) to
participate in any distribution of the assets or earnings of the Company without
limit as to per share amount.

                  (a) Adjustment for Change in Capital Stock.

         If the Company:

                        (i) pays a dividend or makes a distribution on its
Common Stock in shares of its Common Stock;

                        (ii) subdivides its outstanding shares of Common Stock
into a greater number of shares;

                        (iii) combines its outstanding shares of Common Stock
into a smaller number of shares;

                        (iv) makes a distribution on its Common Stock in shares
of its capital stock other than Common Stock; or

                        (v) issues by reclassification of its Common Stock any
shares of its capital stock (including any such reclassification in connection
with a consolidation or merger in which the Company is the surviving entity);

         then the Exercise Price in effect immediately prior to such action
shall be proportionately adjusted so that the Holder of the Warrant thereafter
exercised may receive the aggregate number and kind of shares of capital stock
of the Company which such Holder would have owned immediately following such
action if such Warrant had been exercised immediately prior to such action.

         The adjustment shall become effective immediately after the record date
in the case of a dividend or distribution and immediately after the effective
date in the case of a subdivision, combination or reclassification.
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         Such adjustment shall be made successively whenever any event listed
above shall occur.

                  (b) Adjustment for Other Distributions.

         If the Company distributes to all holders of its Common Stock any of
its assets or debt securities or any rights or warrants to purchase debt
securities, assets or other securities of the Company, the Exercise Price shall
be adjusted in accordance with the formula:

                                      E-F
                              E'=Ex --------
                                       E
where:
                  E' =     the adjusted Exercise Price.

                  E =      the current Exercise Price.

                  F =      the fair market value on the record date mentioned
                           below of the assets, securities, rights or warrants
                           distributable to shareholders per share of
                           outstanding Common Stock. The Board shall determine
                           the fair market value reasonably and in good faith.

         The adjustment shall be made successively whenever any such
distribution is made and shall become effective immediately after the record
date for the determination of shareholders entitled to receive the distribution.
The adjusted Exercise Price may never be less than zero. In the event that "F"
exceeds greater than one-half of "E" for any transaction or series of related
transactions, then no adjustment in "E" shall be made pursuant to the formula
contained in this clause (b) and, instead, the Company shall provide that the
Holder shall be entitled upon exercise of the Warrant, without duplication, to
its proportionate share of the assets, debt securities or such rights or
warrants as it would have been entitled to had it exercised the Warrant at the
latest time necessary to be entitled, as Warrant Share holders, to such
distribution directly.

                  (c) When De Minimis Adjustment May Be Deferred.

         No adjustment in the Exercise Price need be made unless the adjustment
would require an increase or decrease of at least one percent (1%) in the
Exercise Price.

         All calculations under this Section shall be made to the nearest cent
or to the nearest 1/100th of a share, as the case may be.

                  (d) When No Adjustment Required.

         No adjustment need be made for a transaction referred to in subsections
(a) or (b) of this Section 6 if the Holder is able to participate in the
transaction on a basis and with notice that the Board determines to be fair and
appropriate in light of the basis and notice on which holders of Common Stock
participate in the transaction.

         No adjustment need be made for rights to purchase Common Stock pursuant
to a Company plan for reinvestment of dividends or interest.
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         To the extent the Warrant becomes exercisable for cash, no adjustment
need be made thereafter as to the cash. Interest will not accrue on the cash.

                  (e) Notice of Adjustment.

         Whenever the Exercise Price is adjusted, the Company shall provide the
notices required by Section 9 hereof.

                  (f) Notice of Certain Transactions.

         If:

                        (i) the Company takes any action that would require an
adjustment to the Exercise Price pursuant to subsections (a) or (b) of this
Section 6 and if the Company does not arrange for the Holder to participate
pursuant to subsection (d) of this Section 6;

                        (ii) the Company takes any action that would require a
supplemental Warrant Agreement pursuant to subsection (g) of this Section 6; or

                        (iii) there is a liquidation or dissolution of the
Company,

         the Company shall mail to the Holder a notice stating the proposed
record date for a dividend or distribution or the proposed effective date of a
subdivision, combination, reclassification, consolidation, merger, transfer,
lease, liquidation or dissolution. The Company shall mail the notice at least
fifteen (15) days before such date. Failure to mail the notice or any defect in
it shall not affect the validity of the transaction.

                  (g) Reorganization of Company.

         In case of any consolidation of the Company with or merger of the
Company into another entity, the Company or such successor entity shall execute
and deliver to the Holder an agreement that the Holder shall have the right
thereafter, and until the Expiration Date, upon payment of the applicable
Exercise Price in effect immediately prior to such action (after giving effect
to any applicable adjustments under subsections (a) and (b) of this Section 6)
to purchase upon exercise of the Warrant the kind and amount of shares and other
securities and property (including cash) that such Holder would have owned or
have been entitled to receive after the happening of such consolidation or
merger had such Warrant been exercised immediately prior to such action. The
Company shall at its sole expense mail by first class mail, postage prepaid, to
the Holder notice of the execution of any such agreement. Such agreement shall
provide for adjustments, which shall be substantially identical to the
adjustments provided for in this Section 6. In addition, the Company shall not
merge or consolidate with or into, any other entity unless the successor entity
(if not the Company), shall expressly assume, by supplemental Warrant Agreement
reasonably satisfactory in form and substance to the Holder in its sole judgment
and executed and delivered to the Holder, the due and punctual performance and
observance of each and every covenant and condition of this Agreement to be
performed and observed by the Company. The provisions of this subsection (g)
shall similarly apply to successive consolidations or mergers. Any transfer,
sale or lease of all or substantially all of the
<PAGE>
assets of the Company for a consideration consisting primarily of equity
securities shall be deemed a consolidation or merger for the foregoing purposes.

         If the issuer of securities deliverable upon exercise of the Warrant
under the supplemental Warrant Agreement is an affiliate of the formed,
surviving, transferee or lessee entity, that issuer shall join in the
supplemental Warrant Agreement.

         If this subsection (g) applies, subsections (a) and (b) of this Section
6 do not apply.

                  (h) Company Determination Final.

         Any determination that the Company or the Board must make pursuant to
subsection (a), (b), (c) or (e) of this Section 6 is conclusive if made
reasonably and in good faith.

(i)      Adjustment in Number of Shares.

         Upon each adjustment of the Exercise Price pursuant to this Section 6,
the Warrant outstanding prior to the making of the adjustment in the Exercise
Price shall thereafter evidence the right to receive upon payment of the
adjusted Exercise Price that number of shares of Common Stock (calculated to the
nearest hundredth) obtained from the following formula:

                          E
                  N'=Nx  ----
                          E'

where:
                  N' =     the adjusted number of Warrant Shares issuable upon
                           exercise of the Warrant by payment of the adjusted
                           Exercise Price.

                  N  =     the number of Warrant Shares previously issuable
                           upon exercise of the Warrant by payment of the
                           Exercise Price prior to adjustment.

                  E' =     the adjusted Exercise Price.

                  E  =     the Exercise Price prior to adjustment.

SECTION 7. FRACTIONAL INTERESTS. No fractional shares may be issued upon any
exercise of the Warrant, and any fractions shall be rounded down to the nearest
whole number of shares. If upon any exercise of the Warrant, a fraction of a
share results, the Company will pay the cash value of any such fractional
shares, calculated on the basis of the Exercise Price.

SECTION 8. REDEMPTION OF WARRANTS. The Company shall be under no obligation
under this Agreement to redeem the Warrants, and the Warrants shall not be
redeemable at the Company's option.

SECTION 9. NOTICES TO WARRANT HOLDER. Upon any adjustment of the Exercise Price
pursuant to Section 6 hereof, the Company shall promptly thereafter give to the
Holder written notice of such adjustment(s). The notice shall set forth the
Exercise Price after such adjustment and a brief statement of the facts
requiring such adjustment and setting forth in
<PAGE>
reasonable detail the method of calculation and the number of Warrant Shares (or
portion thereof) issuable after such adjustment in the Exercise Price, upon
exercise of the Warrant and payment of the adjusted Exercise Price.

SECTION 10.  REPRESENTATION, WARRANTIES AND CERTAIN AGREEMENTS OF HOLDER.
             The Holder hereby represents and warrants to the Company that:

         10.1 AUTHORIZATION. This Agreement constitutes the Holder's valid and
legally binding obligation, enforceable in accordance with its terms except as
may be limited by (i) applicable bankruptcy, insolvency, reorganization or other
laws of general application relating to or affecting the enforcement of
creditors' rights generally and (ii) the effect of rules of law governing the
availability of equitable remedies. The Holder represents that such Holder has
full power and authority to enter into this Agreement.

         10.2 PURCHASE OF OWN ACCOUNT. The Warrant and the Warrant Shares
(collectively, the "SECURITIES") will be acquired for investment for such
Holder's own account, not as a nominee or agent, and not with a view to the
public resale or distribution thereof within the meaning of the Securities Act
of 1933, as amended (the "1933 Act"), and such Holder has no present intention
of selling, granting any participation in, or otherwise distributing the same.

         10.3 DISCLOSURE OF INFORMATION. Such Holder has received or has had
full access to all the information it considers necessary or appropriate to make
an informed investment decision with respect to the Securities. Such Holder
further has had an opportunity to ask questions and receive answers from the
Company regarding the terms and conditions of the offering of the Securities and
to obtain additional information (to the extent the Company possessed such
information or could acquire it without unreasonable effort or expense)
necessary to verify any information furnished to such Holder or to which such
Holder had access.

         10.4 INVESTMENT EXPERIENCE. Such Holder understands that the purchase
of the Securities involves substantial risk. Such Holder (i) has experience as
an investor in securities and acknowledges that such Holder is able to fend for
itself, can bear the economic risk of such Holder's investment in the Securities
and has such knowledge and experience in financial or business matters that such
Holder is capable of evaluating the merits and risks of this investment in the
Securities and protecting its own interest in connection with this investment
and/or (ii) has a preexisting personal or business relationship with the Company
and certain of its officers, directors or controlling persons of a nature and
duration that enables such Holder to be aware of the character, business acumen
and financial circumstances of such persons.

         10.5 ACCREDITED INVESTOR STATUS. Such Holder is an "accredited
investor" within the meaning of Regulation D promulgated under the 1933 Act.

         10.6 RESTRICTED SECURITIES. Such Holder understands that the Securities
are characterized as "restricted securities" under the 1933 Act and Rule 144
promulgated thereunder in as much as they are being acquired from the Company in
a transaction not involving a public offering, and that under the 1933 Act and
applicable regulations thereunder such securities may be resold without
registration under the 1933 Act only in certain limited circumstances. In this
<PAGE>
connection, such Holder is familiar with Rule 144, as presently in effect, and
understands the resale limitations imposed thereby and by the 1933 Act. Such
Holder understands that no public market now exists for any of the Securities
and that it is uncertain whether a public market will ever exist for the
Securities.

         10.7 NO SOLICITATION. At no time was the Holder presented with or
solicited by any publicly issued or circulated newspaper, mail, radio,
television or other form of general advertising or solicitation in connection
with the offer, sale and purchase of the Securities.

         10.8 MARKET STANDOFF. The Holder agrees in connection with any
registration of the Company's securities under the 1933 Act that, upon the
request of the Company or the underwriters managing any registered public
offering of the Company's securities, Holder will not sell or otherwise dispose
of any Warrant Shares or any other securities of the Company without the prior
written consent of the Company or such managing underwriters, as the case may
be, for a period of time (not to exceed one hundred eighty (180) days) after the
effective date of such registration requested by such managing underwriters
subject to all restrictions as the Company or the managing underwriters may
specify generally. Holder further agrees to enter into any agreement reasonably
required by the underwriters to implement the foregoing; provided that,
notwithstanding a request by the Company, Holder shall not be restricted under
this Section from selling or otherwise transferring or disposing of any Warrant
Shares or other shares of stock of the Company at any time prior to the
effective date of any registration statement.

         In order to enforce the foregoing covenant, the Company shall have the
right to place restrictive legends on the certificates representing the Warrant
Shares subject to this Section and to impose stop transfer instructions.

         10.9 LEGENDS. Holder acknowledges that neither the Warrant nor the
Warrant Shares have been qualified or registered under the 1933 Act or any state
securities laws, and therefore may not be sold or disposed of in the absence of
such registration or qualification only pursuant to an exemption from such
registration or qualification and in accordance with this Agreement. The Warrant
and/or the stock certificate(s) representing the Warrant Shares will bear
legends substantially similar to those set forth below in addition to any other
legend that may be required by applicable law or by any agreement between the
Company and the Holder:

         THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES
         LAWS OF APPLICABLE STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS
         ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD
         EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES
         LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. HOLDER SHOULD BE
         AWARE THAT IT MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS
         INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE
         SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE
         SATISFACTORY TO THE ISSUER
<PAGE>
         TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE
         WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

         10.10 TRANSFER RESTRICTIONS. Holder agrees not to sell, transfer or
otherwise dispose of the Warrant or Warrant Shares, in whole or in part, unless:

                  (a) a registration statement under the 1933 Act is in effect
with regard thereto; or

                  (b) such holder has notified the Company of the proposed
disposition and has furnished the Company with an opinion of counsel, reasonably
satisfactory to the Company, that such disposition will not require registration
of such securities under the 1933 Act.

         Notwithstanding the provisions of Section 10.10(a) and 10.10(b) above,
no such registration statement or opinion of counsel shall be required for any
transfer of the Warrant or the Warrant Shares in compliance with Rule 144
promulgated under the 1933 Act.

         In addition, the Warrant Shares, upon issuance by the Company, shall be
subject to the terms and conditions of the Shareholders' Agreement (the
"SHAREHOLDERS' AGREEMENT") dated as of November 7, 2002, by and among General
Media International, Inc., Vector Partners, LLC and the Holder. The Holder
agrees not to transfer the Warrants to any person or entity (i) unless and until
such transferee shall furnish the Company with written agreements, documents
and/or opinions, in form and substance reasonably acceptable to the Company and
its counsel, to be bound by and comply with all provisions of the Shareholders'
Agreement and (ii) other than in accordance with the Shareholders' Agreement.

         10.11 TRANSFER - GENERAL. Subject to the terms hereof, the Warrant
shall be transferable only on the books of the Company maintained at its
principal office upon delivery thereof duly endorsed by the Holder or by its
duly authorized attorney or representative, or accompanied by proper evidence of
succession, assignment or authority to transfer. In all cases of transfer, the
original power of attorney, duly approved, or a copy thereof, duly certified,
shall be deposited and remain with the Company. In case of transfer by
executors, administrators, guardians or other legal representatives, duly
authenticated evidence of their authority shall be produced, and may be required
to be deposited and to remain with the Company in its discretion. Upon any
registration of transfer, the person to whom such transfer is made shall receive
a new Warrant or Warrants as to the portion of the Warrant transferred, and the
Holder shall be entitled to receive a new Warrant or Warrants from the Company
as to the portion thereof retained. The designated transferee or transferees
will be recorded in the register maintained by the Company as the Holder(s) of
the new Warrant(s).

SECTION 11. NO RIGHTS AS STOCKHOLDER; NOTICES TO HOLDER. Nothing contained in
this Agreement or in the Warrant shall be construed as conferring upon the
Holder or its permitted transferees the right to vote or to receive dividends or
to consent to or receive notice as a stockholder in respect of any meeting of
stockholders for the election of directors of the Company or any other matter,
or any rights whatsoever as a stockholder of the Company;
<PAGE>
provided that this provision shall not limit the required notice as set forth in
Section 9 hereof.

SECTION 12. NOTICES. Any notices, requests and demands by the Holder to the
Company pursuant to this Agreement to be effective shall be in writing
(including by facsimile), and, unless otherwise expressly provided herein, shall
be deemed to have been duly given or made when delivered by hand, or three (3)
days after being deposited in the mail, postage prepaid, or, in the case of a
facsimile notice, when received, or, in the case of delivery by a nationally
recognized overnight courier, when received, addressed:

         If to the Company, to:

                                    American Pulp Exchange, Inc.
                                    11 Penn Plaza
                                    12th Floor
                                    New York, New York  10001
                                    Attention: President
                                    Fax:    (212) 702-6248

         With a copy to:

                                    Pachulski, Stang, Ziehl, Young & Jones P.C.
                                    461 Fifth Avenue
                                    25th Floor
                                    Attention:  Robert Feinstein, Esq.
                                    Fax:  (212) 561-7777

         Any notices, requests and demands by the Company to the Holder pursuant
to this Agreement to be effective shall be in writing (including by facsimile),
and, unless otherwise expressly provided herein, shall be deemed to have been
duly given or made when delivered by hand, or three (3) days after being
deposited in the mail, postage prepaid, or, in the case of a facsimile notice,
when received, or, in the case of delivery by a nationally recognized overnight
courier, when received, addressed to the Holder at its address as shown in the
stock record books of the Company. Each party hereto may from time to time
change the address to which notices to it are to be delivered or mailed
hereunder by notice in writing to the other party.

SECTION 13. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of California, without giving effect to
principles of conflict of laws thereof. The parties hereto agree to submit to
the jurisdiction of the courts of the State of New York in any action or
proceeding arising out of or relating to this Agreement. Venue for any such
actions shall be in the state or federal courts of New York, New York. In the
event of litigation, the prevailing party shall be entitled to reasonable
attorneys' fees and costs.

SECTION 14. SUCCESSORS. All the covenants and provisions of this Agreement by or
for the benefit of the Company shall bind and inure to the benefit of the
successors and assigns of the parties hereto.

SECTION 15. BENEFITS OF THIS AGREEMENT. Nothing in this Agreement shall be
construed to confer upon any person other than the Company and the Holder (and
their
<PAGE>
respective successors and assigns) any legal or equitable right, remedy or claim
under this Agreement and this Agreement shall be for the sole and exclusive
benefit of the Company and the Holder, and their respective assignees.

SECTION 16. CAPTIONS. The captions of the Sections of this Agreement have been
inserted for convenience only and shall have no substantive effect.

SECTION 17. COUNTERPARTS. This Agreement may be executed in any number of
counterparts each of which when so executed shall be deemed to be an original;
but such counterparts together shall constitute but one and the same instrument.

SECTION 18. AMENDMENT, WAIVER AND COURSE OF DEALING. No course of dealing or any
delay or failure to exercise any right hereunder on the part of any party
thereto shall operate as a waiver of such right or otherwise prejudice the
rights, powers or remedies of such party. This Agreement, the Warrant and any
term hereof and thereof, respectively, may be amended, waived or terminated only
by an instrument in writing signed by the party against which enforcement of
such change, waiver or termination is sought.

SECTION 19. FURTHER ASSURANCES. From and after the date of this Agreement, the
Company and the Holder shall execute and deliver such instruments, documents or
other writings as may be reasonably necessary or desirable to confirm and carry
out and to effectuate fully the intent and purposes of this Agreement.

SECTION 20. ENTIRE AGREEMENT. This Agreement and the documents referred to
herein constitute the entire agreement among the parties with respect to the
subject matter hereof and thereof and supersede all prior agreements and
understandings, both written and oral, among the parties with respect to the
subject matter hereof and thereof.
<PAGE>

         IN WITNESS WHEREOF, the Company and the Holder have caused this
Agreement to be duly executed as of the date first above written.

HOLDER:                                        THE COMPANY:

PH CAPITAL HOLDINGS, LLC,                       AMERICAN PULP EXCHANGE, INC.,
a California limited liability company          a Florida corporation

By:      s/s Charles Samel                      By:      s/s R. Guccione
         --------------------------------           ---------------------------

Name: Charles Samel                             Name:  Robert C. Guccione

Title:   Manager                                Title:  Chairman and President

                      [SIGNATURE PAGE TO WARRANT AGREEMENT]
<PAGE>
                                    EXHIBIT A

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR
UNDER THE SECURITIES LAWS OF APPLICABLE STATES. THESE SECURITIES ARE SUBJECT TO
RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD
EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS,
PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. HOLDER SHOULD BE AWARE THAT
THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION
OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT
ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE
STATE SECURITIES LAWS.

Warrant No. ____________                                        575,000 Shares

                        WARRANT TO PURCHASE COMMON STOCK

                              Void After 5:00 P.M.

                       Pacific Time on [January ___, 2008]

         THIS CERTIFIES THAT, for value received, PH Capital Holdings, LLC, or
registered assigns (the "HOLDER"), is the registered holder of this Warrant to
Purchase Common Stock (the "WARRANT") and is entitled to purchase from American
Pulp Exchange, Inc., a Florida corporation (the "COMPANY"), subject to the terms
and conditions of the Warrant Agreement dated as of November __, 2002, by and
between the Company and the Holder (the "WARRANT AGREEMENT"), at any time until
5:00 p.m., Pacific Time, on [January __, 2008] (the "EXPIRATION DATE"), Five
Hundred Seventy-Five Thousand (575,000) shares of the common stock of the
Company (the "COMMON STOCK") at a price of $0.01 per share (the "EXERCISE
PRICE"). The number of shares purchasable upon exercise of this Warrant and the
Exercise Price per share shall be subject to adjustment from time to time as set
forth in the Warrant Agreement.

         This Warrant is issued under and in accordance with the Warrant
Agreement and is subject to the terms and provisions contained in the Warrant
Agreement, all of which are incorporated herein by reference. All capitalized
terms used and not otherwise defined herein shall have the meanings given them
in the Warrant Agreement.

         This Warrant may be exercised in whole or in part by presentation of
this Warrant with the Subscription Form, the form of which is attached hereto,
duly executed and simultaneous payment of the Exercise Price (subject to
adjustment) at the principal office of the Company. Payment of such price shall
be payable at the option of the Holder hereof in cash made by wire transfer, by
check or by exercise of the Holder's Net Exercise Right as set forth in the
Warrant Agreement.
<PAGE>
         Upon partial exercise, a Warrant for the unexercised portion shall be
delivered to the Holder. No fractional shares will be issued upon the exercise
of this Warrant, but the Company shall pay the cash value of any fraction upon
the exercise of the Warrant.

         This Warrant does not entitle the Holder hereof to any of the rights as
a stockholder of the Company until such time as this Warrant is exercised in
accordance with the Warrant Agreement.
<PAGE>
         IN WITNESS WHEREOF, the Company and the Holder have caused this Warrant
to be duly executed as of the date first above written.

                                               AMERICAN PULP EXCHANGE, INC.,

                                               a Florida corporation

                                               By:
                                                      -------------------------

                                               Name     Robert C. Guccione

                                               Title:   Chairman and President

AGREED AND ACKNOWLEDGED:

PH CAPITAL HOLDINGS, LLC,
a California limited liability company

By:
   -----------------------------------

Name: Charles Samel

Title: Manager
<PAGE>
                                    EXHIBIT B

                                SUBSCRIPTION FORM

[INSERT DATE]

To:               AMERICAN PULP EXCHANGE, INC.

Attention:        President

         [ ] The undersigned hereby elects to exercise the Warrant issued to it
by American Pulp Exchange, Inc., a Florida corporation (the "COMPANY"), pursuant
to the Warrant Agreement dated November ____, 2002 (the "WARRANT AGREEMENT"), by
and between the Company and PH Capital Holdings, LLC, a California limited
liability company, and to purchase thereunder ______________ (____________)
shares of Common Stock of the Company (the "SHARES") at a purchase price of
_______________ Dollars ($_______) per share or an aggregate purchase price of
_______________ Dollars ($_______) (the "PURCHASE PRICE").

         [ ] The undersigned hereby elects under the provision set forth in
Section 2.4 of the Warrant Agreement to make a net exercise of the Warrant as to
__________ shares.

         In exercising the Warrant, the undersigned hereby confirms and
acknowledges that the representations and warranties set forth in Section 10 of
the Warrant Agreement as they apply to the undersigned continue to be true and
correct as of this date.

         Please issue a certificate representing such Shares in the name
specified below.

_______________________________________
(Name)

_______________________________________
(Address)

_______________________________________
(City, State, Zip Code)

_______________________________________       __________________________________
(Date)                                               (Signature of Holder)<PAGE>
                                                                    Exhibit 10.5

                          REGISTRATION RIGHTS AGREEMENT

         Registration Rights Agreement, dated as of November 9, 2002 (the
"Agreement"), by American Pulp Exchange, Inc., a Florida corporation (the
"Company"), for the benefit of certain persons listed on the signature page
hereto (the "Holders").

                              W I T N E S S E T H :

         WHEREAS, the Holders are the holders of shares of the Company's common
stock, par value $.0025 per share (the "Common Stock");

         WHEREAS, the Company desires to enter into this Agreement to set forth
the terms and conditions of the registration rights of the Holders;

         NOW, THEREFORE, in consideration of the premises and the covenants
hereinafter contained, it is agreed as follows:

1. DEFINITIONS.

         Unless otherwise defined herein, capitalized terms used in this
Agreement shall have the meanings given to them in the plan. Each reference
herein to an agreement, document or instrument shall mean that agreement,
document or instrument as from time to time amended, modified or supplemented in
accordance with its terms, including in each case all exhibits, annexes and
schedules to such agreement, document or instrument, all of which are
incorporated by reference to such agreement, document or instrument.

         As used in this Agreement, the following capitalized terms shall have
the meanings ascribed to them below:

         "Business Day" means any day, other than a Saturday, Sunday, or a day
on which commercial banks are required or permitted to be closed for business in
the City of New York.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
or any similar federal statute then in effect, and a reference to a particular
section thereof shall be deemed to include a reference to the comparable
section, if any, of any such similar federal statute.

         "Prospectus" means the prospectus included in any Registration
Statement, as amended or supplemented by any prospectus supplement with respect
to the terms of the offering of any portion of the Registrable Securities
covered by such Registration Statement or any other amendments and supplements
to such prospectus, including without limitation any preliminary prospectus, any
pre-effective or post-effective amendment and all material incorporated by
reference in any prospectus.

         "Registrable Securities" means shares of Common Stock which are held by
any Holder as of the date hereof and any securities issued or issuable upon
exercise of the Warrants or in respect of or in exchange for any of such shares
of Common Stock by way of a stock dividend or other distribution, stock split,
reverse stock split or other combination of shares, recapitalization,
reclassification, merger, consolidation or exchange offer. As to any particular
Registrable
<PAGE>
Securities, once issued such securities shall cease to be Registrable Securities
when (i) a Registration Statement with respect to the sale of such securities
shall have become effective under the Securities Act and such securities shall
have been disposed of in accordance with such Registration Statement, (ii) such
securities shall have been sold to the public pursuant to Rule 144 (or any
successor provision) under the Securities Act, (iii) such securities shall have
been otherwise transferred or exchanged and new certificates for such securities
not bearing a legend restricting further transfer shall have been delivered by
the Company or (iv) such securities shall have ceased to be outstanding.

         "Registration Expenses" has the meaning set forth in Section 4.

         "Registration Statement" means any registration statement of the
Company which covers Registrable Securities pursuant to the provisions of this
Agreement, all amendments and supplements to such registration statement,
including post-effective amendments, and all exhibits and all material
incorporated by reference in such registration statement.

         "SEC" means the United States Securities and Exchange Commission or any
other federal agency at the time administering the Securities Act or the
Exchange Act.

         "Securities Act" means the Securities Act of 1933, as amended, or any
similar federal statute then in effect, and a reference to a particular section
thereof shall be deemed to include a reference to the comparable section, if
any, of any such similar federal statute.

         "Warrants" shall mean the Warrant to purchase Common Stock held by
Vector Partners, LLC, a Nevada limited liability company ("VP"), under the
Warrant Agreement dated November 8, 2002 between VP and the Company, and the
Warrant to purchase Common Stock held by PH Capital Holdings, LLC, a California
limited liability company, under the Warrant Agreement dated November 8, 2002
between PH Capital Holdings, LLC and the Company.

2. PIGGY-BACK REGISTRATIONS.

      A. Right to Include Registrable Securities. If at any time the Company
proposes to register any of its equity securities under the Securities Act,
whether or not for sale for its own account (other than a registration on Form
S-4 or Form S-8, or any successor or similar forms), in a manner that would
permit registration of Registrable Securities for sale to the public under the
Securities Act, it will each such time promptly give written notice to all
Holders: (i) of its intention to do so, (ii) of the registration form of the SEC
that has been selected by the Company and (iii) of rights of Holders under this
Section 2 (the "Section 2 Notice"). The Company will include in the proposed
registration all Registrable Securities that the Company is requested in
writing, within 15 days after the Section 2 Notice is given, to register by the
Holders thereof; provided, however, that (i) if, at any time after giving
written notice of its intention to register any equity securities and prior to
the effective date of the Registration Statement filed in connection with such
registration, the Company shall determine for any reason not to register all
such equity securities, the Company may, at its election, give written notice of
such determination to all Holders who so requested registration and, thereupon,
shall be relieved of its obligation to register any Registrable Securities in
connection with such abandoned registration, and (ii) in case of a determination
by the Company to delay registration of its equity securities,

                                      -2-
<PAGE>
the Company shall be permitted to delay the registration of such Registrable
Securities for the same period as the delay in registering such other equity
securities by the Company.

      B. Priority; Registration Form.

            (1) If the managing underwriter for a registration in which
Registrable Securities are proposed to be included pursuant to this Section 2
that involves an underwritten offering shall advise the Company that, in its
opinion, the inclusion of the amount of Registrable Securities to be sold for
the account of Holders would adversely affect the success of the offering, then
the number of Registrable Securities to be sold for the account of such Holders
shall be reduced (and may be reduced to zero) in accordance with the managing
underwriter's recommendation. In the event that the number of Registrable
Securities to be included in any registration is reduced (but not to zero), the
number of such Registrable Securities included in such registration shall be all
allocated pro rata among all requesting Holders and all other holders of Common
Stock having the right to include their shares of Common Stock in such
registration, on the basis of the relative number of shares of such Common Stock
each such Holder or other holder has requested to be included in such
registration. If, as a result of the proration provisions of this Section 2(B),
any Holder shall not be entitled to include all Registrable Securities in a
registration pursuant to this Section 2 that such Holder has requested be
included, such Holder may elect to withdraw its Registrable Securities from the
registration; provided, however, that such withdrawal election shall be
irrevocable and, after making a withdrawal election, a Holder shall no longer
have any right to include Registrable Securities in the registration as to which
such withdrawal election was made.

            (2) If the Company is using a Form S-3 to effectuate a registration
pursuant to this Section 2, but it would not be eligible to use such form for
the number of Registrable Securities to be included at the request of other
Holders, the Company may elect to not include such Registrable Securities in
such registration.

      C. Merger, Consolidation, etc. Notwithstanding anything in this Section 2
to the contrary, Holders shall not have any right to include their Registrable
Securities in any distribution or registration of equity securities by the
Company, which is a result of a merger, consolidation, acquisition, exchange
offer, recapitalization, other reorganization, dividend reinvestment plan, stock
option plan or other employee benefit plan, or any similar transaction having
the same effect.

3.      REGISTRATION PROCEDURES.

      A. The Company to Use Best Efforts. In connection with the Company's
registration obligations pursuant to Section 2 hereof, the Company shall use its
best efforts to effect such registrations to permit the sale of such Registrable
Securities in accordance with the intended method or methods of disposition
thereof, and pursuant thereto the Company shall as expeditiously as possible:

            (1) prepare and file with the SEC a Registration Statement or
Registration Statements relating to the registration on any appropriate form
under the Securities Act, and to cause such Registration Statements to become
effective as soon as practicable and to remain

                                      -3-
<PAGE>
continuously effective for the time period required by this Agreement to the
extent permitted under the Securities Act; provided, however, that as soon as
practicable but in no event later than three Business Days before filing such
Registration Statement, any related Prospectus or any amendment or supplement
thereto, other than any amendment or supplement made solely as a result of
incorporation by reference of documents filed with the SEC subsequent to the
filing of such Registration Statement, the Company shall furnish to the Holders
of the Registrable Securities covered by such Registration Statement, their
counsel selected as provided in Section 4(vi) hereof and the underwriters, if
any, copies of all such documents proposed to be filed, which Holders, counsel
and underwriters shall be afforded a reasonable opportunity to review such
documents and comment thereon;

            (2) cause the Registration Statement and the related Prospectus to
be supplemented by any required Prospectus supplement, and as so supplemented to
be filed in accordance with the Securities Act and any rules and regulations
promulgated thereunder; and otherwise to comply with the provisions of the
Securities Act as may be necessary to facilitate the disposition of all
Registrable Securities covered by such Registration Statement in accordance with
the intended method or methods of disposition by the selling Holders thereof set
forth in such Registration Statement or such Prospectus or Prospectus
supplement;

            (3) notify the selling Holders and the managing underwriters, if
any, promptly if at any time (A) any Prospectus, Registration Statement or
amendment or supplement thereto is filed, (B) any Registration Statement, or any
post-effective amendment thereto, becomes effective, (C) the SEC requests any
amendment or supplement to, or any additional information in respect of, any
Registration Statement or Prospectus, (D) the SEC issues any stop order
suspending the effectiveness of a Registration Statement or initiates any
proceedings for that purpose, (E) the Company receives any notice that the
qualification of any Registrable Securities for sale in any jurisdiction has
been suspended or that any proceeding has been initiated for the purpose of
suspending such qualification, or (F) any event occurs which requires that any
changes be made in such Registration Statement or any related Prospectus so that
such Registration Statement or Prospectus will not contain any untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading; provided,
however, that in the case of this subclause (F), such notice need only state
that an event of such nature has occurred, without describing such event. The
Company hereby agrees to promptly reimburse any selling Holders for any
out-of-pocket losses and expenses incurred in connection with any uncompleted
sale of any Registrable Securities in the event that the Company fails to timely
notify such Holder that the Registration Statement then on file with the SEC is
no longer effective;

            (4) make every reasonable effort to obtain the withdrawal of any
order suspending the effectiveness of a Registration Statement, or the
qualification of any Registrable Securities for sale in any jurisdiction, at the
earliest possible moment;

            (5) if requested by the managing underwriters or any Holder of
Registrable Securities being sold in connection with an underwritten offering,
incorporate into a Prospectus supplement or a post-effective amendment to the
Registration Statement any information which the managing underwriters and such
Holder reasonably agree is required to be included therein relating to such sale
of Registrable Securities; and to file such supplement or post-effective

                                      -4-
<PAGE>
amendment as soon as practicable in accordance with the Securities Act and the
rules and regulations promulgated thereunder;

            (6) furnish to each selling Holder and each managing underwriter, if
any, one signed copy of the Registration Statement or Registration Statements
and any post-effective amendment thereto, including all financial statements and
schedules thereto, all documents incorporated therein by reference and all
exhibits thereto (including exhibits incorporated by reference) as promptly as
practicable after filing such documents with the SEC;

            (7) deliver to each selling Holder and each underwriter, if any, as
many copies of the Prospectus or Prospectuses (including each preliminary
Prospectus) and any amendment or supplement thereto as such Persons may
reasonably request; and to consent to the use of such Prospectus or any
amendment or supplement thereto by each such selling Holder and underwriter, if
any, in connection with the offering and sale of the Registrable Securities
covered by such Prospectus, amendment or supplement;

            (8) prior to any public offering of Registrable Securities, use its
best efforts to register or qualify, or to cooperate with the selling Holders,
the underwriters, if any, and their respective counsel in connection with the
registration or qualification of such Registrable Securities for offer and sale
under the securities or blue sky laws of such jurisdictions as may be requested
by the Holders of a majority of the Registrable Securities included in such
Registration Statement; and to do any and all other acts or things necessary to
enable the disposition in such jurisdictions of the Registrable Securities
covered by such Registration Statement; provided, however, that the Company will
not be required to qualify generally to do business in any jurisdiction where it
is not then so qualified or to take any action which would subject it to general
service in any jurisdiction where it is not then so subject;

            (9) to cooperate with the selling Holders and the underwriters, if
any, in the preparation and delivery of certificates representing the
Registrable Securities to be sold, such certificates to be in such denominations
and registered in such names as such selling Holders or managing underwriters
may request at least two Business Days prior to any sale of Registrable
Securities represented by such certificates;

            (10) upon the occurrence of any event described in subclause (F) of
clause (3) above, promptly to prepare and file a supplement or post-effective
amendment to the applicable Registration Statement or Prospectus or any document
incorporated therein by reference, and any other required documents, so that
such Registration Statement and Prospectus will not thereafter contain an untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein not misleading, and to cause such supplement or
post-effective amendment to become effective as soon as practicable;

            (11) to take all other actions in connection therewith as are
reasonably necessary or desirable in order to expedite or facilitate the
disposition of the Registrable Securities included in such Registration
Statement and, in the case of an underwritten offering: (A) to enter into an
underwriting agreement in customary form with the managing underwriter (such
agreement to contain standard and customary indemnities, representations,
warranties and other agreements of or from the Company); (B) to obtain opinions
of counsel to the Company

                                      -5-
<PAGE>
(which (if reasonably acceptable to the underwriters) may be the Company's
inside counsel) addressed to the underwriters, such opinions to be in customary
form; and (C) to obtain "comfort" letters from the Company's independent
certified public accountants addressed to the underwriters, such letters to be
in customary form;

            (12) make available for inspection by any seller of Registrable
Securities, any underwriter participating in any disposition pursuant to such
Registration Statement, and any attorney, accountant or other agent retained by
any such seller or underwriter all financial and other records, pertinent
corporate documents and properties of the Company, and cause the Company's
officers, directors, employees, attorneys and independent accountants to supply
all information reasonably requested by any such sellers, underwriters,
attorneys, accountants or agents in connection with such Registration Statement;
provided, however, that information which the Company determines, in good faith,
to be confidential shall not be disclosed by such persons unless (x) the
disclosure of such information is necessary to avoid or correct a misstatement
or omission in such Registration Statement, or (y) the release of such
information is ordered pursuant to a subpoena or other order from a court of
competent jurisdiction. Each seller of Registrable Securities agrees, on its own
behalf and on behalf of all its underwriters, accountants, attorneys and agents,
that the information obtained by it as a result of such inspections shall be
kept confidential by it and not disclosed by it, and shall not be used by it as
the basis for any market transactions in the securities of the Company, in each
case unless and until such information is made generally available to the public
other than by such seller. Each seller of Registrable Securities further agrees,
on its own behalf and on behalf of all its underwriters, accountants, attorneys
and agents, that it will, upon learning that disclosure of such information is
sought in a court of competent jurisdiction, give notice to the Company and
allow the Company, at its expense, to undertake appropriate action to prevent
disclosure of the information deemed confidential;

            (13) permit any selling Holder which, in its judgment, might be
deemed to be an underwriter or controlling person of the Company, to participate
in the preparation of such Registration Statement and to require the insertion
therein of material, furnished to the Company in writing, which in the
reasonable judgment of such Holder and such Holder's counsel should be included;
and

            (14) take all such other actions as the Holders of a majority of the
Registrable Securities being sold or the underwriters, if any, reasonably
request in order to expedite or facilitate the disposition of such Registrable
Securities.

      B. Holders' Obligation to Furnish Information. The Company may require
each Holder of Registrable Securities as to which any registration is being
effected to furnish to the Company such information regarding the distribution
of such Registrable Securities as the Company may from time to time reasonably
request.

      C. Suspension of Sales Pending Amendment of Prospectus. Each Holder agrees
that, upon receipt of any notice from the Company of the happening of any event
of the kind described in subclauses (C)-(F) of subsection A(3) above, such
Holder will suspend the disposition of any Registrable Securities covered by
such Registration Statement or Prospectus until such Holder's receipt of the
copies of a supplemented or amended Prospectus or until it is

                                      -6-
<PAGE>
advised in writing by the Company that the use of the applicable Prospectus may
be resumed, and, if so directed by the Company, such Holder will deliver to the
Company all copies, other than permanent file copies, then in such Holder's
possession of any Prospectus covering such Registrable Securities.

4. REGISTRATION EXPENSES.

         All expenses incident to the Company's performance of or compliance
with its obligations under this Agreement, including without limitation all (i)
registration and filing fees, (ii) fees and expenses of compliance with
securities or blue sky laws, (iii) printing expenses, (iv) fees and
disbursements of its counsel and its independent certified public accountants
(including the expenses of any special audit or "comfort" letters required by or
incident to such performance or compliance), (v) securities acts liability
insurance (if the Company elects to obtain such insurance), (vi) reasonable fees
and expenses of one counsel for the Holders of Registrable Securities covered by
each Registration Statement, with such counsel to be selected by Holders of a
majority of such Registrable Securities (all such expenses being herein referred
to as "Registration Expenses"), and (vii) the expenses and fees for listing
securities to be registered on each securities exchange on which shares of
Common Stock are then listed shall be borne by the Company; provided, however,
that Registration Expenses shall not include any underwriting discounts,
commissions or fees attributable to the sale of the Registrable Securities.

5. INDEMNIFICATION.

      A. Indemnification by the Company. In the event of any registration of any
securities of the Company under the Securities Act pursuant to Section 3 hereof,
the Company will, and hereby does, indemnify and hold harmless the seller of any
Registrable Securities covered by such Registration Statement, its affiliates,
general and limited partners, members and shareholders and each of its and their
directors, officers, managers, employees, attorneys, investment advisors and
agents, each other Person who participates as an underwriter, if any, in the
offering or sale of such securities and each other Person, if any, who controls
such seller or any such underwriter within the meaning of the Securities Act,
against any and all losses, claims, damages or liabilities, joint or several,
and expenses (including any amounts paid in any settlement effected with the
Company's consent, which consent shall not be unreasonably withheld) to which
such seller or other indemnified Person may become subject under the Securities
Act, common law or otherwise, insofar as such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) arise out of or are
based upon (i) any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement under which such securities were
registered under the Securities Act or the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading, (ii) any untrue statement or alleged untrue statement of a
material fact contained in any preliminary Prospectus, together with the
documents incorporated by reference therein (as amended or supplemented if the
Company shall have filed with the SEC any amendment thereof or supplement
thereto), if used prior to the effective date of such Registration Statement, or
contained in the Prospectus, together with the documents incorporated by
reference therein (as amended or supplemented if the Company shall have filed
with the SEC any amendment thereof or supplement thereto), or the omission or
alleged omission to state therein a material fact

                                      -7-
<PAGE>
required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading or (iii) any violation by the Company of any federal, state or common
law rule or regulation applicable to the Company and relating to action required
of or inaction by the Company in connection with any such registration, and the
Company will reimburse such seller and each other indemnified Person for any
legal or any other expenses reasonably incurred by any of them in connection
with investigating or defending any such loss, claim, liability, action or
proceeding; provided, however, that the Company shall not be liable to any such
seller or other indemnified Person in any such case to the extent that any such
loss, claim, damage, liability (or action or proceeding in respect thereof) or
expense arises out of or is based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in such Registration Statement or
amendment thereof or supplement thereto or in any such preliminary, final or
summary Prospectus in reliance upon and in conformity with written information
furnished to the Company by or on behalf of any such seller or other indemnified
Person, specifically for use in the preparation thereof; and provided, further,
that the Company will not be liable to any Person who participates as an
underwriter in any underwritten offering or sale of Registrable Securities, or
to any Person who is a seller in any non-underwritten offering or sale of
Registrable Securities, or any other Person, if any, who controls such
underwriter or seller within the meaning of the Securities Act, under the
indemnity agreement in this Section 5(A) with respect to any preliminary
Prospectus or the final Prospectus (including any amended or supplemented
preliminary or final Prospectus), as the case may be, to the extent that any
such loss, claim, damage or liability of such underwriter, seller or controlling
Person results from the act that such underwriter or seller sold Registrable
Securities to a person to whom there was not sent or given, at or prior to the
written confirmation of such sale, a copy of the final Prospectus as then
amended or supplemented, whichever is most recent, if the Company has previously
furnished copies thereof to such underwriter or seller and such final
Prospectus, as then amended or supplemented, has corrected any such misstatement
or omission. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of such seller or other indemnified
Person.

      B. Indemnification by the Sellers. In consideration of the Company's
including any Registrable Securities in any Registration Statement filed in
accordance with Section 3 hereof, each prospective seller (each, a "Holder
Indemnitor") of such Registrable Securities and any underwriter shall be deemed
to have agreed to indemnify and hold harmless (in the same manner and to the
same extent as set forth in Section 5(A) hereof) the Company and its directors
and officers and each person controlling the Company within the meaning of the
Securities Act (each, a "Company Indemnitee") against any and all losses,
claims, damages or liabilities, joint or several, and expenses (including any
amounts paid in any settlement effected with such Holder Indemnitor's consent,
which consent shall not be unreasonably withheld) to which the Company
Indemnitees may become subject under the Securities Act, common law or
otherwise, insofar as such losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) arise solely out of or are based solely upon any
statement or alleged statement in or omission or alleged omission from such
Registration Statement, any preliminary, final or summary Prospectus contained
therein, or any amendment or supplement, if such statement or alleged statement
or omission or alleged omission was made in reliance upon and in conformity with
written information furnished to the Company or its representatives by or on
behalf of such seller or underwriter specifically for use in the preparation of
such Registration Statement, preliminary, final or summary Prospectus or
amendment or supplement. Such indemnity shall remain in full

                                      -8-
<PAGE>
force and effect regardless of any investigation made by or on behalf of the
Company or any of its directors, officers or controlling Persons. The Company
may require as a condition to its including Registrable Securities in any
Registration Statement filed hereunder that the holder thereof acknowledge its
agreement to be bound by the provisions of this Agreement (including Section 5)
applicable to it.

      C. Notices of Claims. Promptly after receipt by an indemnified party
hereunder of written notice of the commencement of any action or proceeding with
respect to which a claim for indemnification may be made pursuant to this
Section 5, such indemnified party will, if a claim in respect thereof is to be
made against an indemnifying party, give written notice to the latter of the
commencement of such action; provided, however, that the failure of any
indemnified party to give notice as provided herein shall not relieve the
indemnifying party of its obligations under this Section 5, except to the extent
that the indemnifying party is actually prejudiced by such failure to give
notice. If any such claim or action shall be brought against an indemnified
party, and it shall notify the indemnifying party thereof, the indemnifying
party shall be entitled to participate therein, and, to the extent that it
wishes, jointly with any other similarly notified indemnifying party, to assume
the defense thereof with counsel reasonably satisfactory to the indemnified
party; provided, further, that if, in the indemnified party's reasonable
judgment, a conflict of interest between the indemnified party and the
indemnifying party exists in respect of such claim, then such indemnified party
shall have the right to participate in the defense of such claim and to employ
one firm of attorneys at the indemnifying party's expense to represent such
indemnified party. No indemnified party will consent to entry of any judgment or
enter into any settlement without the indemnifying party's consent to such
judgment or settlement, which shall not be unreasonably withheld.

      D. Contribution. If the indemnification provided for in this Section 5 is
unavailable or insufficient to hold harmless an indemnified party under this
Section 5, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of the losses, claims, damages or
liabilities referred to in this Section 5 in such proportion as is appropriate
to reflect the relative fault of the indemnifying party on the one hand and the
indemnified party on the other hand in connection with statements or omissions
which resulted in such losses, claims, damages or liabilities, as well as any
other relevant equitable considerations. The relative fault shall be determined
by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the indemnifying party or the
indemnified party and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statements or
omission. The Company agrees, and the Holders (in consideration of the Company's
including any Registrable Securities in any Registration Statement filed in
accordance with Section 3 hereof) shall be deemed to have agreed, that it would
not be just and equitable if contributions pursuant to this Section 5(D) were to
be determined by pro rata allocation or by any other method or allocation which
does not take account of the equitable considerations referred to in the first
sentence of this Section 5(D). The amount paid by an indemnified party as a
result of the losses, claims, damages or liabilities referred to in the first
sentence of this Section 5(D) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any action or claim (which shall be limited as
provided in Section 5(C) if the indemnifying party has assumed the defense of
any such action accordance with the provisions thereof) which is the subject of

                                      -9-
<PAGE>
this Section 5(D). No Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent
misrepresentation. Promptly after receipt by an indemnified party under this
Section 5(D) of notice of the commencement of any action against such party in
respect of which a claim for contribution made against an indemnifying party
under this Section 5(D), such indemnified party shall notify the indemnifying
party in writing of the commencement thereof if the notice specified in Section
5(C) has not been given with respect to such action; provided, however, that the
omission so to notify the indemnifying party shall not relieve the indemnifying
party from any liability which it may have to any indemnified party otherwise
under this Section 5(D), except to the extent that the indemnifying party is
actually prejudiced by such failure to give notice. Notwithstanding anything in
this Section 5(D) to the contrary, no indemnifying party (other than the
Company) shall be required pursuant to this Section 5(D) to contribute any
amount in excess of the proceeds received such by such indemnifying party from
the sale of Registrable Securities in the offering to which the losses, claims,
damages or liabilities of the indemnified parties relate.

6. RULE 144.

         The Company shall file the reports required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations promulgated
thereunder, so long as it is subject to such reporting requirements, all to the
extent required from time to time to enable the Holders to sell Registrable
Securities without registration under the Securities Act within the limitations
of the exemptions provided by Rule 144. Upon the request of any Holder, the
Company shall deliver to such Holder a written statement stating whether it has
complied with such requirements.

7. UNDERWRITTEN REGISTRATIONS.

         No Holder shall sell any of its Registrable Securities in any
underwritten offering pursuant to a registration hereunder unless such Holder
(i) agrees to sell such Registrable Securities on a basis provided in any
underwriting agreement in customary form and (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents required under the terms of such underwriting agreements or as
reasonably requested by the Company (whether or not such offering is
underwritten).

8. HOLDBACK AGREEMENTS.

      A. Restrictions on Public Sales by Holders. To the extent not inconsistent
with applicable law, each Holder that is timely notified in writing by the
managing underwriter or underwriters shall not effect any public sale or
distribution (including a sale pursuant to Rule 144) of any issue being
registered in an underwritten offering (other than pursuant to an employee stock
option, stock purchase, stock bonus or similar plan, pursuant to a merger, an
exchange offer or a transaction of the type specified in Rule 145(a) under the
Securities Act), any securities of the Company similar to any such issue or any
securities of the Company convertible into or exchangeable or exercisable for
any such issue or any similar issue, during the 7 day period prior to the
effective date of the applicable Registration Statement, if such date is known,
or during the period beginning on such effective date and ending on the later of
(i) the

                                      -10-
<PAGE>
completion of the distribution of such securities by the Company pursuant to
such offering and (ii) 90 days after such effective date, except as part of such
registration; provided that such restrictions shall apply not more than once
during any nine-month period.

      B. Restrictions on Public Sales by the Company. The Company shall not
effect any public sale or distribution of any issue of the same class or series
as Registrable Securities being registered in an underwritten offering (other
than pursuant to an employee stock option, stock purchase, stock bonus or
similar plan, pursuant to a merger, exchange offer or a transaction of the type
specified in Rule 145(a) under the Securities Act), if so requested by the
managing underwriter or underwriters, any securities of the Company similar to
any such issue or any securities of the Company convertible into or exchangeable
or exercisable for any such issue, during the 7 day period prior to the
effective date of the applicable registration statement, if such date is known,
or during the period beginning on such effective date and ending on the later of
(i) the completion of the distribution of such securities pursuant to such
offering and (ii) 180 days after such effective date, except as part of such
registration.

9. MISCELLANEOUS.

      A. Amendments and Waivers. This Agreement may be amended, and waivers or
consents to departures from the provisions hereof may be given, only by a
written instrument duly executed, in the case of an amendment, by all of the
parties hereto, or in the case of a waiver or consent, by the party against whom
the waiver or consent, as the case may be, is to be effective.

      B. Successors, Assigns and Transferees. This Agreement shall be binding
upon and shall inure to the benefit of the Company, the Holders and their
respective successors, assigns and transferees.

      C. Integration. This Agreement and the documents referred to herein or
delivered pursuant hereto that form a part hereof contain the entire
understanding of the Company and the Initial Holders with respect to its subject
matter. There are no restrictions, agreements, promises, representations,
warranties, covenants or undertakings with respect to the subject matter hereof
other than those expressly set forth herein. This Agreement supersedes all prior
agreements and understandings between the Company and the Initial Holders with
respect to its subject matter.

      D. Legend. Certificates evidencing Registrable Securities held by Initial
Holders may bear a legend substantially in the form below:

         THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT
         BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER
         THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION AND MAY NOT BE
         SOLD, OFFERED FOR SALE OR OTHERWISE TRANSFERRED UNLESS REGISTERED OR
         QUALIFIED UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS
         THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
         IT THAT SUCH REGISTRATION OR QUALIFICATION IS NOT REQUIRED.

                                      -11-
<PAGE>
      E. Notices. All notices and other communications provided for hereunder
shall be in writing and shall be sent by first class mail, telecopier or hand
delivery:

         If to the Company, to:

                  American Pulp Exchange, Inc.
                  11 Penn Plaza
                  New York City, New York  10001
                  Attention:
                  Telecopy No.:

         with a copy to:

                  Pachulski, Stang, Ziehl, Young & Jones P.C.
                  461 Fifth Avenue, 25th Floor
                  New York, NY  10017
                  Attention:  Robert Feinstein, Esq.
                  Telecopy No.:  (310) 201-0760

         If to any of the Holders, to the address of such Holders as shown in
the stock record books of the Company. All such notices and communications shall
be deemed to have been given or made (i) when delivered by hand, (ii) five
Business Days after being deposited in the mail, postage prepaid or (iii) when
telecopied, receipt acknowledged. The Company may change its address for receipt
of notices by notice of such change given in the manner contemplated hereby to
the Holders.

      F. Descriptive Headings. The headings in this Agreement are for
convenience of reference only and shall not limit, expand or otherwise affect
the meaning of the terms contained herein.

      G. Severability. In the event that any one or more of the provisions
hereof is held invalid, illegal or unenforceable in any respect for any reason,
the validity, legality and enforceability of any such provision, in every other
respect and of the remaining provisions hereof shall not be in any way impaired,
it being intended that all rights, powers and privileges of the Company and the
Holders shall be enforceable to the fullest extent permitted by law.

      H. Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of New York, without regard to
the principles thereof relating to conflict of laws.

                                      -12-
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed on the date set forth above.

                         AMERICAN PULP EXCHANGE, INC.,
                         A FLORIDA CORPORATION

                         By:  s/s Charles Samel
                              ------------------------------------------------
                              Charles Samel, Executive Vice President

                         PH CAPITAL HOLDINGS, LLC,
                         A CALIFORNIA LIMITED LIABILITY COMPANY

                         By:  s/s Charles Samel
                              ------------------------------------------------
                              Charles Samel, Manager

                         VECTOR PARTNERS, LLC,
                         A NEVADA LIMITED LIABILITY COMPANY

                         By   s/s Jason Galanis
                              ------------------------------------------------

                         Title:  Managing Member

                         GENERAL MEDIA INTERNATIONAL, INC.,
                         A NEW YORK CORPORATION

                         By   s/s R. Guccione
                              ------------------------------------------------
                              Robert Guccione, Chairman and President

                [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]

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