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Unassociated Document

     

    ______________________________________

    

    CERTIFICATE
      OF DESIGNATION

    

    OF

    

    GENERAL
      COMPONENTS, INC.

    

    Pursuant
      to Section 78.1955 of the 

    

    Nevada
      Revised Statutes

    

    ______________________________________

    

    SERIES
      B PREFERRED STOCK 

    

    General
      Components, Inc., a Nevada corporation (the “Corporation”),
      hereby certifies that the following resolution has been duly adopted by the
      board of directors of the Corporation (the “Board”):

    

    RESOLVED,
      that pursuant to the authority granted to and vested in the Board by the
      provisions of the certificate of amendment to the articles of incorporation
      of
      the Corporation (the “Articles
      of Incorporation”),
      there
      hereby is created, out of the ten million (10,000,000) shares of preferred
      stock, par value $.001 per share, of the Company authorized by Article FOURTH
      of
      the Articles of Incorporation (“Preferred
      Stock”),
      Series B Preferred Stock, consisting of three hundred (300) shares, which series
      shall have the following powers, designations, preferences and relative
      participating, optional and other special rights, and the following
      qualifications, limitations and restrictions:

    

    The
      specific powers, preferences, rights and limitations of the Series B Preferred
      Stock are as follows:

    

    1. Designation;
      Rank.
      This
      series of Preferred Stock shall be designated and known as “Series B Preferred
      Stock”. The number of shares constituting the Series B Preferred Stock shall be
      three hundred (300) shares. Except as otherwise provided herein, the Series
      B
      Preferred Stock shall, with respect to dividend rights and rights on
      liquidation, winding up and dissolution, rank senior to the common stock, par
      value $.001 per share (the “Common
      Stock”),
      and
      all classes and series of stock of the Corporation now or hereafter authorized,
      issued or outstanding which by their terms do not expressly provide that they
      are senior to, or on parity with, the Series B Preferred Stock (collectively,
      “Junior
      Securities”).

    

    2. Dividends.

    

    (a) The
      holders of shares of the Series B Preferred Stock (each, a “Holder”
and
      collectively, the “Holders”)
      shall
      be entitled to receive, when, as and if declared by the Board of Directors,
      out
      of assets of the Corporation legally available therefor, cumulative dividends
      at
      the annual rate of 6% on the Stated Value thereof. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Such
      dividends shall be payable semi-annually on January 1 and July 1 beginning
      with
      the first such date after February 8, 2007 (the “Original
      Issue Date”)
      and
      any Optional Conversion Date (“Dividend
      Payment Date”)
      in
      cash or shares of Common Stock as set forth in this Section 2(b), or a
      combination thereof (the amount to be paid in shares of Common Stock, the
“Dividend
      Share Amount”).
      Shares of Common Stock may be issued in payment of any such Dividend Share
      Amount only so long as they constitute “Registrable Securities” under the
      Registration Rights Agreement entered into by the Company for the benefit of
      the
      holders of the Series B Preferred Stock (the “Registration
      Rights Agreement”)
      and
      are entitled to be registered for resale under the Securities Act of 1933,
      as
      amended (the “Act”) pursuant to the provisions thereof. The Dividend Share
      Amount shall be determined by reference to the average VWAP of the Common Stock
      for the 5 trading day period immediately prior to the Dividend Payment Date.
      “VWAP”
means,
      for any date, the price determined by the first of the following clauses that
      applies: (a) if the Common Stock is then listed or quoted on a national
      securities exchange, the daily volume weighted average price of the Common
      Stock
      for such date (or the nearest preceding date) on the national securities
      exchange on which the Common Stock is then listed or quoted as reported by
      Bloomberg Financial L.P. (based on a trading day from 9:30 a.m. Eastern Time
      to
      4:00 p.m. Eastern Time); (b) if the Common Stock is not then listed or quoted
      on
      a national securities exchange and if prices for the Common Stock are then
      quoted on the OTC Bulletin Board, the volume weighted average price of the
      Common Stock for such date(or the nearest preceding date) on the OTC Bulletin
      Board; (c) if the Common Stock is not then listed or quoted on the OTC Bulletin
      Board and if prices for the Common Stock are then reported in the “Pink Sheets”
published by the Pink Sheets, LLC (or a similar organization or agency
      succeeding to its functions of reporting prices), the most recent bid price
      per
      share of the Common Stock so reported; or (d) in all other cases, the fair
      market value of a share of Common Stock as determined by the Board of Directors
      of the Company, acting in good faith (any such price, the “Market
      Price”).

    

    (c) Each
      fractional share of Series B Preferred Stock outstanding shall be entitled
      to a
      ratably proportionate amount of any dividends or other distributions made with
      respect to each outstanding share of Series B Preferred Stock, and all such
      distributions shall be payable in the same manner and at the same time as
      distributions on each outstanding share of Series B Preferred
      Stock.

    

    3. Liquidation
      Preference.

    

    (a) In
      the
      event of any dissolution, liquidation or winding up of the Corporation, whether
      voluntary or involuntary, the holders of Series B Preferred Stock shall be
      entitled to receive out of the assets of the Corporation, for each one (1)
      share
      of Series B Preferred Stock, before any payment or distribution shall be made
      in
      respect of any Junior Securities, cash in an amount equal to $50,000 (the
“Stated
      Value”),
      plus
      an amount equal to all accrued but unpaid dividends thereon to the date of
      such
      payment.

    

    
      
        
        

      

      
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    (b) If
      the
      assets of the Corporation available for distribution to the holders of Series
      B
      Preferred Stock upon any dissolution, liquidation or winding up of the
      Corporation, whether voluntary or involuntary, shall be insufficient to pay
      the
      full preferential amount to which holders of the Series B Preferred Stock are
      entitled pursuant to Section 3(a) of this certificate of designation, (this
      “Designation”),
      no
      distribution shall be made in respect of any shares of any other class or series
      of stock ranking on parity with the Series B Preferred Stock upon liquidation,
      unless the distribution is made pro rata,
      so that
      the ratio of the amount distributed per share on the Series B Preferred Stock
      to
      the amount distributed per share on each such other class or series of stock
      shall be the same as the ratio of the amount of the liquidation preference
      per
      share of the Series B Preferred Stock to the amount of the liquidation
      preference per share of each such other class or series of stock.

    

    (c) If
      upon
      any dissolution, liquidation or winding up of the Corporation, whether voluntary
      or involuntary, payment shall have been made to the holders of Series B
      Preferred Stock of the full preferential amount to which they shall be entitled
      pursuant to Section 3(a) of this Designation, the entire remaining assets,
      if
      any, of the Corporation available for distribution to stockholders shall be
      distributed to the holders of Common Stock pro rata,
      treating the Series B Preferred Stock as if converted into shares of Common
      Stock.

    

    (d) The
      Corporation shall give each holder of Series B Preferred Stock written notice
      of
      any dissolution, liquidation or winding up not later than fifteen (15) days
      prior to any meeting of stockholders to approve such dissolution, liquidation
      or
      winding up or, if no meeting is to be held, not later than thirty (30) days
      prior to the date of such dissolution, liquidation or winding up.

    

    4. Optional
      Conversion of Series B Preferred Stock.
      The
      holders of Series B Preferred Stock shall have conversion rights as
      follows:

    

    (a) Conversion
      Right.
      Each
      share of Series B Preferred Stock shall be convertible at the option of the
      holder thereof and without the payment of additional consideration by the holder
      thereof, at any time, into 500,000 shares of Common Stock (the “Conversion
      Rate”)
      on the
      Optional Conversion Date (as hereinafter defined). Correspondingly, the
“Conversion
      Price”
as
      used
      herein shall equal the Stated Value divided by the Conversion Rate.

    

    
      
        
        

      

      
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    (b) Mechanics
      of Optional Conversion.
      To
      effect the optional conversion of shares of Series B Preferred Stock in
      accordance with Section 4(a) of this Designation, the holder of record thereof
      shall make a written demand for such conversion (for purposes of this
      Designation, a “Conversion
      Demand”)
      upon
      the Corporation at its principal executive offices setting forth therein (i)
      the
      number of shares so to be converted, (ii) the certificate or certificates
      representing such shares, and (iii) the proposed date of such conversion, which
      shall be a business day not less than fifteen (15) nor more than thirty (30)
      days after the date of such Conversion Demand (for purposes of this Designation,
      the “Optional
      Conversion Date”).
      Within five days of receipt of the Conversion Demand, the Corporation shall
      give
      written notice (for purposes of this Designation, a “Conversion
      Notice”)
      to
      such holder setting forth therein (i) the address of the place or places at
      which the certificate or certificates representing the shares so to be converted
      are to be surrendered; and (ii) whether the certificate or certificates to
      be
      surrendered are required to be endorsed for transfer or accompanied by a duly
      executed stock power or other appropriate instrument of assignment and, if
      so,
      the form of such endorsement or power or other instrument of assignment. The
      Conversion Notice shall be sent by first class mail, postage prepaid, to such
      holder at such holder’s address as may be set forth in the Conversion Demand or,
      if not set forth therein, as it appears on the records of the stock transfer
      agent for the Series B Preferred Stock, if any, or, if none, of the Corporation.
      On or before the Optional Conversion Date, the holder of the Series B Preferred
      Stock so to be converted shall surrender the certificate or certificates
      representing such shares, duly endorsed for transfer or accompanied by a duly
      executed stock power or other instrument of assignment, if the Conversion Notice
      so provides, to the Corporation at any place set forth in such notice or, if
      no
      such place is so set forth, at the principal executive offices of the
      Corporation. As soon as practicable after the Optional Conversion Date and
      the
      surrender of the certificate or certificates representing such shares, the
      Corporation shall issue and deliver to such holder, or its nominee, at such
      holder’s address as it appears on the records of the stock transfer agent for
      the Series B Preferred Stock, if any, or, if none, of the Corporation a
      certificate or certificates for the number of whole shares of Common Stock
      issuable upon such conversion in accordance with the provisions
      hereof.

    

    (c) No
      Fractional Shares.
      No
      fractional shares of Common Stock or scrip shall be issued upon conversion
      of
      shares of Series B Preferred Stock. In lieu of any fractional share to which
      the
      holder would be entitled but for the provisions of this Section 4(c), based
      on
      the number of shares of Series B Preferred Stock held by such holder, the
      Corporation shall issue a number of shares to such holder rounded up to the
      nearest whole number of shares of Common Stock. No cash shall be paid to any
      holder of Series B Preferred Stock by the Corporation upon conversion of Series
      B Preferred Stock by such holder. 

    

    (d) Reservation
      of Stock.
      The
      Corporation shall, to the extent such shares are available, at all times when
      any shares of Series B Preferred Stock shall be outstanding, reserve and keep
      available out of its authorized but unissued stock, such number of shares of
      Common Stock as shall from time to time be sufficient to effect the conversion
      of all outstanding shares of Series B Preferred Stock.

    

    (e) Dividends;
      Rights.
      All
      outstanding shares of Series B Preferred Stock to be converted pursuant to
      the
      Conversion Notice shall, on the Optional Conversion Date, be converted into
      Common Stock for all purposes, notwithstanding the failure of the holder thereof
      to surrender any certificate representing such shares on or prior to such date.
      On and after the Optional Conversion Date, (i) no such share of Series B
      Preferred Stock to be converted pursuant to the Conversion Notice shall be
      deemed to be outstanding or be transferable on the books of the Corporation
      or
      the stock transfer agent, if any, for the Series B Preferred Stock, and (ii)
      the
      holder of such shares, as such, shall not be entitled to receive any dividends
      or other distributions, to receive notices or to vote such shares or to exercise
      or to enjoy any other powers, preferences or rights thereof, other than the
      right, upon surrender of the certificate or certificates representing such
      shares, to receive a certificate or certificates for the number of shares of
      Common Stock into which such shares to be converted pursuant to the Conversion
      Notice have been converted. On the Optional Conversion Date, all such shares
      shall be retired and canceled and shall not be reissued.

    

    
      
        
        

      

      
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    (f) Consolidation,
      Merger, Sale, Etc.
      In case
      the Corporation shall (a) effect a reorganization, (b) consolidate with or
      merge
      into any other person, or (c) transfer all or substantially all of its
      properties or assets to any other person under any plan or arrangement
      contemplating the dissolution of the Corporation, then, in each such case,
      as a
      condition to the consummation of such a transaction, proper and adequate
      provision shall be made whereby, subject to Section 3(a) of this Designation,
      each share of Series B Preferred Stock shall, after such transaction, be
      convertible into the kind and number of shares of stock or other securities
      or
      property of the Corporation or of the corporation resulting from such
      transaction, or to which assets shall have been sold in such transaction, to
      which the holder of shares of Series B Preferred Stock would have been entitled
      if it had held the Common Stock issuable upon the conversion of such shares
      of
      Series B Preferred Stock on the record date, or, if none, immediately prior
      to
      such transaction, at the Conversion Rate in effect on such date. The provisions
      of this Section 4(f) shall similarly apply to successive
      transactions.

    

    (g) Stock
      Dividends, Splits, Combinations and Reclassifications.
      If the
      Corporation shall (i) declare a dividend or other distribution payable in
      securities, (ii) split its outstanding shares of Common Stock into a larger
      number, (iii) combine its outstanding shares of Common Stock into a smaller
      number, or (iv) increase or decrease the number of shares of its capital stock
      in a reclassification of the Common Stock (including any such reclassification
      in connection with a merger, consolidation or other business combination in
      which the Corporation is the continuing entity)(any such corporate event, an
      “Event”),
      then
      in each instance the Conversion Rate shall be adjusted such that the number
      of
      shares issued upon conversion of one share of Series B Preferred Stock will
      equal the number of shares of Common Stock that would otherwise (but for the
      provisions of this Section 4(g)) be issuable on such conversion multiplied
      by a
      fraction of which (a) the numerator is the number of shares of Common Stock
      the
      holder of the Series B Preferred Stock would have held following such Event
      if
      it had held the number of shares of Common Stock issuable upon the conversion
      of
      one share of Series B Preferred Stock on the relevant record date relating
      to
      such Event, and (b) the denominator is the number of shares of Common Stock
      that
      would otherwise (but for the provisions of this Section 4(g)) be issuable upon
      the conversion of one share of Series B Preferred Stock.

    

    
      
        
        

      

      
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    (h) Subsequent
      Equity Sales.
      If the
      Corporation at any time while the Series B Preferred Stock is outstanding,
      shall
      offer, sell, grant any option to purchase or offer, sell or grant any right
      to
      reprice its securities, or otherwise dispose of or issue any Common Stock or
      any
      security entitling any Person to acquire shares of Common Stock, at an effective
      price per share less than the then Conversion Price (such issuances
      collectively, a “Dilutive
      Issuance”)
      (if
      the holder of the Common Stock or such security 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 are issued in connection with such issuance,
      be entitled to receive shares of Common Stock at an effective price per share
      which is less than the Conversion Price, such issuance shall be deemed to have
      occurred for less than the Conversion Price on such date of the adjustment
      of
      the Dilutive Issuance), then, the Conversion Rate shall be adjusted,
      concurrently with such issuance, such that the number of shares issued upon
      conversion of one share of Series B Preferred Stock will equal the number of
      shares of Common Stock that would otherwise (but for the provisions of this
      Section 4(h)) be issuable on such conversion multiplied by a fraction, the
      numerator of which shall be the number of shares of Common Stock outstanding
      immediately prior to such issuance plus the number of such additional shares
      of
      Common Stock so issued or as are issuable pursuant thereto, as the case may
      be
      and the denominator of which shall be the number of shares of Common Stock
      outstanding immediately prior to such issuance plus the number of shares of
      Common Stock which the aggregate consideration received by the Company for
      the
      total number of additional shares of Common Stock so issued or as are issuable
      pursuant thereto, as the case may be, would purchase at such Conversion Price.
      Such adjustment shall be made whenever such Common Stock or such securities
      are
      issued unless Common Stock is being issued pursuant to a security entitling
      any
      person to acquire shares of Common Stock for which an adjustment to the
      Conversion Rate has already been made under this Section 4(h).

    

    (i) No
      Impairment.
      The
      Corporation shall not, by amendment of its articles of incorporation or through
      any reorganization, sale, exchange or other disposition of assets, merger,
      consolidation, dissolution, issue or sale of securities, or any other voluntary
      action, avoid or seek to avoid the observance or performance of any of the
      terms
      to be observed or performed under this Section 4 by the Corporation, but will
      at
      all times in good faith carry out all the provisions of this Section 4 and
      take
      all such action as may be necessary or appropriate in order to protect the
      conversion rights of the holders of Series B Preferred Stock against
      impairment.

    

    (j) Certificate
      as to Adjustments.
      Upon
      the occurrence of each adjustment or readjustment of the Conversion Rate
      pursuant to this Section 4, the Corporation at its expense shall promptly
      compute such adjustment or readjustment in accordance with the terms hereof
      and
      cause its principal financial officer to verify such computation and prepare
      and
      furnish to each holder of Series B Preferred Stock a certificate setting forth
      such adjustment or readjustment and setting forth in reasonable detail the
      facts
      upon which such adjustment or readjustment is based. The Corporation shall,
      upon
      the written request at any time of any holder of Series B Preferred Stock,
      furnish or cause to be furnished to such holder a like certificate setting
      forth: (i) such adjustments and readjustments; (ii) the Conversion Rate in
      effect at such time for the Series B Preferred Stock; and (iii) the number
      of
      shares of Common Stock and the amount, if any, of other property that at such
      time would be received upon the conversion of the Series B Preferred
      Stock.

    

    (k) Notices
      of Record Date.
      In the
      event any record date is fixed for the purpose of (i) determining the holders
      of
      any class or series of stock or other securities who are entitled to receive
      any
      dividend or other distribution or (ii) any recapitalization or reorganization
      of
      the capital stock of the Corporation, any merger or consolidation of the
      Corporation, or any sale, exchange or other disposition of all or substantially
      all the assets of the Corporation or any voluntary or involuntary dissolution,
      liquidation or winding up of the Corporation, the Corporation shall mail to
      each
      holder of Series B Preferred Stock at least twenty (20) days prior to the record
      date set forth therein a notice setting forth: (A) such record date and a
      description of such dividend or distribution; (B) the date on which any such
      recapitalization, reorganization, merger, consolidation, disposition,
      dissolution, liquidation or winding up is expected to become effective; and
      (C)
      the time, if any is to be fixed, as to when the holders of record of Common
      Stock (or other securities) shall be entitled to exchange their shares of Common
      Stock (or other securities) for securities or other property deliverable upon
      such recapitalization, reorganization, merger, consolidation, disposition,
      dissolution, liquidation or winding up.

     

    (l) Issue
      Taxes.
      The
      Corporation shall pay any and all issue and other non-income taxes that may
      be
      payable in respect of any issue or delivery of shares of Common Stock on
      conversion of shares of Series B Preferred Stock.

    

    (m) Minimum
      Adjustment: No Increase.
      No
      adjustment of the Conversion Rate shall be made in an amount less than one
      per
      centum, provided that any adjustment which is not made by reason of this Section
      4(l) shall be carried forward and shall be taken into account in any subsequent
      adjustment. No adjustments of the Conversion Rate in accordance with Section
      4
      of this Designation shall have the effect of increasing the Conversion Rate
      above the Conversion Rate in effect immediately prior to such
      adjustment.

    

    
      
        
        

      

      
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    (n) Beneficial
      Ownership Limitation.
      The
      Corporation shall not effect any conversion of the Series B Preferred Stock,
      and
      a Holder shall not have the right to convert any portion of the Series B
      Preferred Stock to the extent that after giving effect to such conversion,
      such
      Holder (together with such Holder’s affiliates, and any other person or entity
      acting as a group together with such Holder or any of such Holder’s affiliates),
      as set forth on the applicable Conversion Notice, would beneficially own in
      excess of the Beneficial Ownership Limitation (as defined below).  For
      purposes of the foregoing sentence, the number of shares of Common Stock
      beneficially owned by such Holder and its affiliates shall include the number
      of
      shares of Common Stock issuable upon conversion of the Series B Preferred Stock
      with respect to which the determination of such sentence is being made, but
      shall exclude the number of shares of Common Stock which would be issuable
      upon
      (A) conversion of the remaining, nonconverted Stated Value of Series B Preferred
      Stock beneficially owned by such Holder or any of its affiliates and (B)
      exercise or conversion of the unexercised or nonconverted portion of any other
      securities of the Corporation subject to a limitation on conversion or exercise
      analogous to the limitation contained herein beneficially owned by such Holder
      or any of its affiliates.  Except as set forth in the preceding sentence,
      for purposes of this Section 4(n), beneficial ownership shall be calculated
      in
      accordance with Section 13(d) of the Exchange Act and the rules and regulations
      promulgated thereunder. To the extent that the limitation contained in this
      Section 4(n) applies, the determination of whether the Series B Preferred Stock
      is convertible (in relation to other securities owned by such Holder together
      with any affiliates) and of which shares of Series B Preferred Stock is
      convertible shall be in the sole discretion of such Holder, and the submission
      of a Conversion Notice shall be deemed to be such Holder’s determination of
      whether the shares of Series B Preferred Stock may be converted (in relation
      to
      other securities owned by such Holder) and which shares of the Series B
      Preferred Stock is convertible, in each case subject to such aggregate
      percentage limitations. To ensure compliance with this restriction, each Holder
      will be deemed to represent to the Corporation each time it delivers a
      Conversion Notice that such Conversion Notice has not violated the restrictions
      set forth in this paragraph and the Corporation shall have no obligation to
      verify or confirm the accuracy of such determination. In
      addition, a determination as to any group status as contemplated above shall
      be
      determined in accordance with Section 13(d) of the Securities Exchange Act
      of
      1934, as amended, and the rules and regulations promulgated thereunder.
For
      purposes of this Section 4(n), in determining the number of outstanding shares
      of Common Stock, a Holder may rely on the number of outstanding shares of Common
      Stock as reflected in the most recent of the following: (A) the Corporation’s
      most recent Form 10-Q or 10-QSB, or Form 10-K or 10-KSB, as the case may be,
      (B)
      a more recent public announcement by the Corporation or (C) any other notice
      by
      the Corporation or the Corporation’s transfer agent setting forth the number of
      shares of Common Stock outstanding.  Upon the written or oral request of a
      Holder, the Corporation shall within two trading days confirm orally and in
      writing to such Holder the number of shares of Common Stock then
      outstanding.  In any case, the number of outstanding shares of Common Stock
      shall be determined after giving effect to the conversion or exercise of
      securities of the Corporation, including the Series B Preferred Stock, by such
      Holder or its affiliates since the date as of which such number of outstanding
      shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall
      be 4.99% of the number of shares of the Common Stock outstanding immediately
      after giving effect to the issuance of shares of Common Stock issuable upon
      conversion of Preferred Stock held by the Holder. The Beneficial Ownership
      Limitation provisions of this Section 6(c) may be waived by such Holder, at
      the
      election of such Holder, upon not less than 61 days’ prior notice to the
      Corporation. The provisions of this paragraph shall be implemented in a manner
      otherwise than in strict conformity with the terms of this Section 4(n) to
      correct this paragraph (or any portion hereof) which may be defective or
      inconsistent with the intended Beneficial Ownership Limitation herein contained
      or to make changes or supplements necessary or desirable to properly give effect
      to such limitation.
      The
      limitations contained in this paragraph shall apply to a successor holder of
      Series B Preferred Stock.

    

    
      
        
        

      

      
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    5. Mandatory
      Conversion of Series B Preferred Stock.

    

    (a) At
      the
      election of the Company, upon (i) the closing of a Qualified Sale or (ii) when
      the average of the Market Price of the Common Stock for at least 20 out of
      30
      consecutive trading days is not less than $2.00 and the daily trading volume
      during each of those 20 trading days exceeds 30,000 shares, each share of Series
      B Preferred Stock may automatically be converted into the number of shares
      of
      Common Stock into which such shares of Series B Preferred Stock would be
      converted on the date of the closing of such Qualified Sale or the
      20th
      business
      day following such election by the Company, as the case may be (the
“Forced
      Conversion Date”),
      in
      accordance with Section 4 of this Designation. For purposes of this Designation,
      “Qualified Sale” means the sale by the Company of shares of the Common Stock in
      a registered public offering raising at least $10 million in gross proceeds
      at
      an offering price per share of at least 125% of the Conversion Price then in
      effect. No mandatory conversion of the Series B Preferred Stock pursuant to
      this
      clause 5(a) shall take effect until at least 20 trading days after the
      effectiveness of the resale shelf registration statement the Company is
      obligated to file pursuant to the Registration Rights Agreement.

    

    (b) No
      fractional shares of Common Stock or scrip shall be issued upon conversion
      of
      shares of Series B Preferred Stock. In lieu of any fractional share to which
      the
      holder would otherwise be entitled but for the provisions of this Section 5(b),
      based on the number of shares of Series B Preferred Stock held by such holder,
      the Corporation shall issue a number of shares to such holder rounded up to
      the
      nearest whole number of shares of Common Stock. No cash shall be paid to any
      holder of Series B Preferred Stock by the Corporation upon conversion of Series
      B Preferred Stock by such holder.

     

    (c) The
      Corporation shall give to each holder of record of Series B Preferred Stock
      written notice of mandatory conversion at least ten (10) business days prior
      to
      the Forced Conversion Date, setting forth therein: (i) the Conversion Rate
      on
      the Forced Conversion Date or a reasonable estimate thereof; (ii) the number
      of
      shares of Common Stock into which such holder’s shares of Series B Preferred
      Stock are to be converted based on such Conversion Rate; (iii) that the
      conversion is to be effective on the Forced Conversion Date; (iv) the address
      of
      the place or places at which the certificate or certificates representing such
      holder’s shares of Series B Preferred Stock are to be surrendered; and (v)
      whether the certificate or certificates to be surrendered are required to be
      endorsed for transfer or accompanied by a duly executed stock power or other
      appropriate instrument of assignment and, if so, the form of such endorsement
      or
      power or other instrument of assignment. Such notice shall be sent by first
      class mail, postage prepaid, to each holder of record of Series B Preferred
      Stock at such holder’s address as it appears on the records of the stock
      transfer agent for the Series B Preferred Stock, if any, or, if none, of the
      Corporation. On or before the Forced Conversion Date, each holder of Series
      B
      Preferred Stock shall surrender the certificate or certificates representing
      all
      such holder’s shares, duly endorsed for transfer or accompanied by a duly
      executed stock power or other instrument of assignment, if the notice so
      provides, to the Corporation at any place set forth in such notice or, if no
      such place is so set forth, at the principal executive offices of the
      Corporation. As soon as practicable after the Forced Conversion Date and the
      surrender of the certificate or certificates representing shares of Series
      B
      Preferred Stock, the Corporation shall issue and deliver to each such holder,
      or
      its nominee, at such holder’s address as it appears on the records of the stock
      transfer agent for the Series B Preferred Stock, if any, or, if none, of the
      Corporation a certificate or certificates for the number of whole shares of
      Common Stock issuable upon such conversion in accordance with the provisions
      hereof.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (d) All
      outstanding shares of Series B Preferred Stock shall, on the Forced Conversion
      Date, be converted into Common Stock for all purposes, notwithstanding the
      failure of any holder or holders thereof to surrender any certificate
      representing such shares on or prior to such date. On and after the Forced
      Conversion Date, (i) no share of Series B Preferred Stock shall be deemed to
      be
      outstanding or be transferable on the books of the Corporation or the stock
      transfer agent, if any, for the Series B Preferred Stock, and (ii) each holder
      of Series B Preferred Stock, as such, shall not be entitled to receive any
      dividends or other distributions, to receive notices or to vote such shares
      or
      to exercise or to enjoy any other powers, preferences or rights in respect
      thereof, other than the right, upon surrender of the certificate or certificates
      representing such shares, to receive a certificate or certificates for the
      number of shares of Common Stock into which such shares shall have been
      converted. On the Forced Conversion Date, all such shares shall be retired
      and
      canceled and shall not be reissued.

    

    6. Voting.

    

    Except
      as
      otherwise required by applicable law, the holders of Series B Preferred Stock
      shall not be entitled to vote on any matters on which the holders of Common
      Stock shall be entitled to vote.

    

    7. Redemption;
      Sinking Fund.
      

    

    (a) Upon
      the
      occurrence of a Change of Control, each Holder shall (in addition to all other
      rights it may have hereunder or under applicable law) have the right,
      exercisable at the sole option of such Holder, to require the Company to redeem
      all of the Series B Preferred Stock then held by such Holder for a redemption
      price, in cash, equal to the Stated Value, plus all accrued but unpaid
      dividends. A “Change of Control” shall mean the occurrence after the date hereof
      of any of (i) 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 Corporation, by contract or otherwise) of
      in
      excess of 50% of the voting securities of the Corporation, or (ii) the
      Corporation merges into or consolidates with any other Person, or any Person
      merges into or consolidates with the Corporation and, after giving effect to
      such transaction, the stockholders of the Corporation immediately prior to
      such
      transaction own less than 50% of the aggregate voting power of the Corporation
      or the successor entity of such transaction. 

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (b) The
      Corporation shall not be required to make any payment to any sinking fund or
      otherwise to deposit or set aside any funds or other assets of the Corporation
      in respect of the Series B Preferred Stock.

    

    8. Amount
      of Noncash Dividends, Distributions or Consideration.
      Whenever a dividend or distribution provided for in Section 2 or 3 of this
      Designation (except as otherwise provided therein with respect to the payment
      of
      dividends in shares of Common Stock) is to be made in, or any consideration
      received or paid by the Corporation consists of securities or other property,
      other than cash, the amount of such dividend, distribution or consideration
      shall be the fair market value of such securities or other property as
      determined in good faith by the Board of Directors.

    

    9. Definition
      of Certain Preferences.
      For
      purposes hereof, any class or series of stock of the Corporation shall be deemed
      to rank:

    

    (a) senior
      to
      the Series B Preferred Stock, either as to dividends or upon liquidation, if
      the
      holders of shares of that class or series of stock shall expressly be entitled
      to receive dividends or amounts distributable upon dissolution, liquidation
      or
      winding up of the Corporation, as the case may be, in preference or priority
      to
      the holders of Series B Preferred Stock;

    

    (b) on
      a
      parity with the Series B Preferred Stock, either as to dividends or upon
      liquidation, whether or not the dividend rates, dividend payment dates,
      redemption or liquidation prices per share or conversion or sinking fund
      provisions, if any, are different from those of the Series B Preferred Stock,
      if
      the holders of shares of that class or series of stock shall expressly be
      entitled to receive dividends or amounts distributable upon dissolution,
      liquidation or winding up of the Corporation, as the case may be, in proportion
      to their respective dividend preferences (whether based on their respective
      dividend rates or the respective amounts of accumulated and unpaid dividends
      thereon) or their respective liquidation preferences, without preference or
      priority, one over the other, as between the holders of shares of that class
      or
      series of stock and the holders of shares of the Series B Preferred Stock;
      and

     

    (c) junior
      to
      the Series B Preferred Stock, either as to dividends or upon liquidation, if
      the
      holders of shares of Series B Preferred Stock shall be entitled to receive
      dividends or amounts distributable upon dissolution, liquidation or winding
      up
      of the Corporation, as the case may be, in preference or priority to the holders
      of shares of that class or series of stock.

    

    [The
      next
      page is the signature page]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the undersigned have duly signed this Certificate of
      Designation as of this        day of
                ,
      2007.

     

    
      	 	 	 
	 	GENERAL
              COMPONENTS, INC.
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
              

            
	 	
              Name: Ma
                Qing

              Title: Chief
                Financial Officer

            

    

     

     

    
      
        
        

      

      
        11Unassociated Document

     

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

    

    Right
      to
      Purchase up to 16,375,000 Shares of Common Stock of

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

    

    COMMON
      STOCK PURCHASE WARRANT

    
      	
               

              No.
                BB 01

            	
               

              Issue
                Date: February 8, 2007

            

    

    

    General
      Components, Inc., a corporation organized under the laws of the State of Nevada
      (the “Company”), hereby certifies that, for value received, Broadband Capital
      Management LLC, or assigns (the “Holder”), is entitled, subject to the terms set
      forth below, to purchase from the Company (as defined herein) from and after
      the
      Issue Date and at any time or from time to time before 5:00 p.m., New York
      time,
      through the close of business on the date that is three (3) years from the
      Issue
      Date set forth above (the “Expiration Date”), up to sixteen million three
      hundred and seventy-five thousand (16,375,000) fully paid and nonassessable
      shares of Common Stock (as hereinafter defined), $0.001 par value per share,
      at
      the applicable Exercise Price per share (as defined below). The number and
      character of such shares of Common Stock and the applicable Exercise Price
      per
      share are subject to adjustment as provided herein.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

    

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

    

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

    

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

    

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

    

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

    

    1. Exercise
      of Warrant.

    

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

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2. Procedure
      for Exercise.

    

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

    

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

    

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

    

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

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

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

    

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

    

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

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

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

    

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

    

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

    

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

     

    
      
        
        

      

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

    

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

    

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

    

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

    

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

    

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

    

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

     

    
      
        
        

      

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

    

    [BALANCE
      OF PAGE INTENTIONALLY LEFT BLANK;

    SIGNATURE
      PAGE FOLLOWS]

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
 

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

     

    
       

      
        	 	 	 
	 	GENERAL
                COMPONENTS, INC.
	
                WITNESS:

              	 
 	 
 
	 	By:  	/s/ 
	 	
                

              
	 	
                Name: 

                Title: 

              

      

       

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

    

    FORM
      OF SUBSCRIPTION

    (To
      Be
      Signed Only On Exercise Of Warrant)

    
TO:        
General
      Components,
      Inc.

     

    Attention: Chief
      Financial Officer

    

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

    

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

    

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

    

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

     

    
      	 

              Dated: 

            	
               

               

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

            
	 	 	 	 	 
	 	 	 	
              Address: 

            	 
	 	 	 	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      B

    

    

    FORM
      OF ASSIGNMENT

    

    (To
      assign the foregoing warrant, execute

    this
      form
      and supply required information. 

    Do
      not
      use this form to exercise the warrant.)

    

    

    

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

    

    

    
      	 	 whose
              address is 
	 	 
	 	 
	
               Dated:

            	 

    

     

    
      
      

      
        	 Holder’s
                Signature:	 	 
	 Holder’s
                Address:	 	 

      

    

     

    
 

    
      	 Signature
              Guaranteed:	 

    

    

    
 

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

    
 

    
      
        
        

      

      
        B-1

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