Document:

Baotou
      Steel - General Steel 

    Special
      Steel Pipe 

    Joint
      Venture Agreement

     (Amendment)

    

     

     

    
 

     

    

    

    BAOTOU
      IRON & STEEL GROUP CO., LTD.

    TIANJIN
      DAQIUZHUANG METAL SHEET CO., LTD.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    JOINT
      VENTURE AGREEMENT

    

    

    1.
      GENERAL PROVISIONS

    

    
      	
              1.1
                

            	
              In
                accordance with the Laws of the People’s Republic of China on Joint
                Ventures Using Chinese and Foreign Investment (“Joint Venture Law”) and
                other relevant published laws and regulations of China, the following
                Parties hereby enter this initial joint venture agreement (“Agreement”)
                with the intention of forming a joint venture
                enterprise.

            

    

     

    2.
      PARTIES TO THE JOINT VENTURE

    

    
      	2.1   	
              Parties
                to this Agreement are as follows:

            

    

    

    Party
      A:
      Tianjin Daqiuzhuang Metal Sheet Co., Ltd. (Daqiuzhuang Metal)

    Located
      at Daqiuzhuang, Jinghai county, Tianjin city, China;

    Legal
      Representative Yu,
      Zuo Sheng
      (Nationality: Chinese)

    

    Party
      B:
      Baotou Iron & Steel Group Co., Ltd. (Baotou Steel) 

    Located
      at River West Industrial Area, Kundulun District, Baotou city, Inner Mongolia,
      China; 

    Legal
      Representative:
      Li, Ren Ming
      (Nationality: Chinese)

    

    3.
      ESTABLISHMENT OF THE JOINT VENTURE

    

    
      	3.1   	
              In
                accordance with the Joint Venture Law and other relevant published
                laws
                and regulations of the People’s Republic of China, the Parties herein
                hereby agree to establish a Joint Venture Limited Liability Company
                (hereinafter referred to as "Joint Venture" or “JV”) in Inner Mongolia,
                China.

            

    

    

    
      	
              3.2
                

            	
              The
                name in English of the Joint Venture will be: Baotou Steel - General
                Steel
                Special Steel Pipe Joint Venture Company Limited. The legal address
                of the
                Joint Venture will be Kundulun District, Baotou city, Inner Mongolia,
                China.

            

    

     

    
      	
              3.3

            	
              The
                form of organization of the Joint Venture shall be a limited liability
                company. The liability of each Party herein is limited to the capital
                contribution to the registered capital in accordance with Section
                5.2 of
                this Agreement; including increases and decreases in each Party's
                share of
                ownership interest made in compliance with the regulations and laws
                of the
                People’s Republic of China.

            

    

    

    4:
      PURPOSES, SCOPE AND SCALE OF PRODUCTION AND BUSINESS

     

    
      
         

      

      
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          1
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      	4.1   	
              The
                purposes of the Joint Venture will be, in conformity with the mutual
                desire of each Party herein of strengthening economic cooperation
                and
                technical exchanges, to improve the product quality and the production
                capacity, to develop new products and gain competitiveness in both
                domestic and international markets in terms of quality, variety and
                price
                by adopting advanced technology in the production of steel products,
                and
                the adoption of advanced management methods, so as to constantly
                raise
                economic results and ensure satisfactory economic benefits for each
                Party.

            

    

    

    
      	4.2   	
              The
                products of the Joint Venture shall be those classified as special
                steel.
                At the first stage of JV, the products are special steel pipes. The
                products shall be sold in both domestic and international markets.
                The
                total production scale of the Joint Venture will be 600,000 metric
                tons a
                year. 

            

    

    

    5:
      TOTAL INVESTMENT, REGISTERED CAPITAL AND OWNERSHIP

    

    
      	5.1   	
              The
                total amount of investment is 50,000,000 RMB (approximately $6,400,000
                USD). 

            

    

    

    
      	
              5.2
                

            	
              The
                registered capital is 50,000,000 RMB (approximately $6,400,000
                USD).

            

    

    

    Party
      A
      shall contribute 40,000,000 RMB (approximately $5,130,000 USD).

    Party
      A
      shall have 80% ownership interest.

    The
      investment shall be used for purchasing equipment necessary to create four
      pipe
      production lines and working capital.

    

    Party
      B
      shall contribute 10,000,000 RMB (approximately $1,270,000 USD).

    Party
      B
      shall have 20% ownership interest.

    The
      investment shall be used for purchasing land, setting up new workshops and
      buildings, establishing power and water systems and creating an accessing
      road.

    

    
      	
              5.3

            	
              Scope
                of Investment:

            

    

    Party
      A:
      The payments to be made by Party A toward the registered capital of the Joint
      Venture must be paid as follows:

    

    a.
      20,000,000 RMB (approximately $2,558,000 USD) of its capital contribution used
      to purchase equipment necessary to create the four production lines at the
      date
      of approval of Joint Venture; 

    b.
      8,000,000 RMB (approximately $1,023,000 USD) of its capital contribution at
      the
      date 30 days from the approval of the Joint Venture;

     

    
      
         

      

      
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          2
          -

        
          

        

      

      
         

      

       

    

    c.
      8,000,000 RMB (approximately $1,023,000 USD) of its capital contribution at
      the
      date 3 months from the approval of the Joint Venture; and

    d.
      The
      remainder of its capital contribution at the date 6 months from the approval
      of
      the Joint Venture.

    

    Party
      B:
      The full payment of its contribution must be paid at the date of the approval
      of
      Joint Venture. 

    

    

    
      	
              5.4

            	
              After
                the registered capital is paid in full by both Parties herein, an
                accounting firm registered in China appointed by both Parties will
                verify
                that all contributions cited in this Agreement have been made in
                accordance with the terms and conditions of this Agreement. The accounting
                firm will issue a verification report stating that all contributions
                according to this Agreement Parties have been made in full by both
                Parties
                herein. Based on the verification report, the Joint Venture shall
                issue an
                investment certificate to each Party herein. This report will be
                signed by
                both the Chairman of the Board of Directors and the Vice Chairman
                of the
                Board of Directors of the Joint
                Venture.

            

    

    

    
      	5.5   	
              Should
                either Party herein desire to assign all or part of its interest
                in the
                Joint Venture to a third Party, written approval must be obtained
                from the
                following entities: the other Party herein, the Joint Venture Board
                of
                Directors; and the appropriate government approval authority. In
                the event
                of a transfer of interest by either Party herein in this Agreement,
                the
                other Party herein will have a preemptive right over the shares to
                be
                transferred. If a transfer is made to a third party, the terms for
                the
                transfer shall not be superior to those for the Parties herein. Any
                transfer deviating from the specifications of this Agreement shall
                be
                deemed invalid. Any transfer of interest must be reported to the
                appropriate local government authority for approval.
                

            

    

     

    6:
      RESPONSIBILITIES OF THE PARTIES

    

    
      	6.1   	
              Responsibilities
                of the Party A:

            

    

    

    

    a.
      Making
      capital contributions in accordance with term 5.2, 5.3;

    

    b.
      Assisting Party B to obtain the business approval, registration and business
      license;

    

    
      
         

      

      
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          3
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    c.
      Assisting Party B to obtain the various government related benefits eligible
      to
      companies qualified to participate in the “Advantages of Developing the Western
      Territory” government program; and

    

    d.
      Preparing all relevant documents for local government approval.

     

    
      	6.2   	
              Responsibilities
                of Party B:

            

    

    

    a.
      Making
      capital contributions in accordance with term 5.2. 5.3;

    

    b.
      Assisting Party A to obtain the business approval, registration and business
      license;

    

    c.
      Providing sufficient raw materials, water, electricity, gas, transportation
      and
      other services for the Joint Venture (A contract with respect to the supply
      of
      raw materials, air, water, electricity and gas shall be signed separately by
      the
      both Parties herein.); 

    

    d.
      Providing sufficient land for the JV operation (A land lease agreement for
      20
      years shall be signed by both parties.). 

    

    

    7.
      PRODUCTION AND SALES OF PRODUCTS

    

    
      	7.1   	
              Party
                A will provide the equipment necessary for creating four special
                pipe
                production lines;

            

    

    

    
      	7.2   	
              Party
                A will provide the production technology and the government production
                permission approval by the relevant authority;

            

    

    

    
      	7.3   	
              The
                products of the Joint Venture will be sold primarily in the domestic
                market. Each Party herein will assist in a good faith effort to expand
                sales to the international market. 

            

    

    

    

    

    8:
      BOARD OF DIRECTORS

    

    
      
        	8.1   	
                The
                  Board of Directors will be established at the date of issuance
                  of the
                  business license. 

              

      

    

    

    
      
        	8.2   	
                The
                  Board of Directors will consist of seven ( 7) directors of which
                  five (5)
                  will be appointed by Party A and two ( 2 ) shall be appointed by
                  Party B.
                  The Chairman of Board will be appointed by Party A. The Vice Chairman
                  of
                  the Board shall be appointed by Party B. The term of the directors
                  is four
                  (4) years. This term of office may be renewed upon reappointment
                  by the
                  appointing Party herein.

              

      

    

     

    
      
         

      

      
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        	8.3   	
                The
                  highest authority of the Joint Venture shall be its Board of Directors.
                  It
                  will decide all important issues concerning the Joint Venture.
                  In handling
                  all important matters, the Board of Directors will reach its decision
                  through consultation among the participants in the principle of
                  equality
                  and mutual benefit. All issues of the Joint Venture brought before
                  the
                  Board of Directors for consideration and vote will require a two-thirds
                  majority assent for approval.

              

      

    

    

    
      
        	8.4   	
                The
                  following important issues will require the unanimous approval
                  of the
                  Board of Directors:

              

      

    

    

    a.
      Amendment of the Articles of Incorporation of the Joint Venture;

    b.
      Termination and dissolution of the Joint Venture;

    c.
      An
      increase of the registered capital of the Joint Venture and any

    transfer
      of ownership interest by any Party herein; and

    d.
      Merger
      of the Joint Venture with another economic organization.

    

    
      
        	8.5   	
                The
                  Chairman of the Board is the legal representative of the Joint
                  Venture. If
                  the Chairman of the Board is unable to exercise his or her
                  responsibilities, he or she will authorize the Vice Chairman of
                  the Board
                  of Directors to be the legal represent the Joint
                  Venture.

              

      

    

    

    
      
        	8.6   	
                The
                  Board of Directors will convene at least two (2) meetings each
                  year. The
                  meetings shall be called and presided over by the Chairman of the
                  Board.
                  The General Manager of the Joint Venture and the Vice General Managers
                  of
                  the Joint Venture may attend the meetings, but have no voting rights.
                  The
                  meetings can be held at a site mutually agreed upon by the Parties
                  herein.
                  The Chairman of the Board may convene interim meetings based on
                  proposal
                  made by more than one third of the directors. The minutes of all
                  meetings
                  will be kept on file. The directors will have the right to be represented
                  by a designated representative. One (1) union representative can
                  attend
                  the meetings, but has no voting
                  rights.

              

      

    

    

    
      
        	8.7   	
                A
                  decision signed by all the members of the Board of Directors has
                  the same
                  validity as a decision made during an official Board of Directors
                  meeting.

              

      

    

     

    9:
      BUSINESS MANAGEMENT ORGANIZATION

    

    
      	9.1   	
              The
                Joint Venture shall establish a management office which will be
                responsible for the daily operation and management of the entity.
                The
                management office shall have one (1) General Manager, three (3) Vice
                General Managers and one (1) Chief Financial Officer.
                

            

    

     

    
      
         

      

      
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    Party
      A
      will appoint the General Manager;

    Party
      A
      will appoint the Chief Financial Officer;

    Party
      A
      will appoint two (2) Vice General Mangers; and 

    Party
      B
      will appoint one (1) Vice General Manager.

    

    
      	9.2   	
              The
                office is authorized by Board of Directors. The term of office shall
                be
                four (4) years. 

            

    

    

    
      	9.3   	
              The
                responsibilities of the General Manager will be to carry out the
                decisions
                of the Board of Directors and to organize and direct the daily management
                of the Joint Venture in accordance with the provisions of this Agreement
                and the Articles of Incorporation. 

            

    

    

    
      	9.4   	
              The
                Vice General Managers will assist the General Manager in his or her
                duties. 

            

    

    

    
      	9.5   	
              The
                department managers will be responsible for the work in the respective
                departments of production, technology, business operation, finance
                and
                administration. Department managers will handle matters delegated
                by the
                General Manager and the Vice General Managers and will be accountable
                to
                them. The General Manager will prepare and present for approval to
                the
                Board of Directors a yearly budget, including proposed appointments
                of
                department managers as well as their remunerations.
                

            

    

    

    
      	9.6   	
              The
                General Manager and Vice General Managers will not serve as employees
                of
                other entities, and will not serve or act on behalf of other economic
                entities in competition with the Joint Venture except that they may
                be an
                officer, director or employee of their respective Party herein.
                

            

    

    

    
      	9.7   	
              The
                Board of Directors will have the power to dismiss the General Manager
                and
                the Vice General Managers in the event of behavior in violation of
                the
                laws of the People’s Republic of China or serious dereliction of
                duty.

            

    

     

    10:
      LABOR MANAGEMENT

    

    
      	
              10.1
                

            	
              Policies
                relating to matters such as, but not limited to, the total number
                of
                employees, recruitment, dismissal, wages, welfare, benefits, labor
                insurance, bonuses and labor discipline will be determined by the
                management office in accordance with “Labor Management Laws and Provisions
                of Foreign Invested Enterprises Provisions Laws of People’s Republic of
                China”, and other regulations and policies stipulated by the Board of
                Directors of the Joint Venture.

            

    

     

    
      
         

      

      
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              10.2
                

            	
              The
                Joint Venture shall have the right to recruit and hire employees
                directly
                from any available sources in the Baotou Steel Union You Yi Alloy
                Rod
                Mill. In all cases, the Joint Venture will employ only those employees
                who
                are sufficiently qualified for employment, as determined through
                tests
                and/or examinations.

            

    

    

    
      	
              10.3

            	
              The
                Joint Venture, acting through the General Manager, will sign individual
                labor agreements with each employee. Each labor agreement, according
                to
                the framework duly approved by the Board of Directors, will include
                the
                type of work, the technical requirements and the wages of the employee.
                The labor agreement for each employee will be filed for reference
                at the
                local labor management department. 

            

    

    

    
      	
              10.4

            	
              The
                labor agreements of employees who will likely in the course of their
                routine work responsibilities have access to or receive confidential
                information and/or particular training from the Joint Venture or
                from
                Party B will include, confidentiality clauses and non-competition
                clauses
                pursuant to which the employee will not be permitted to work for
                an
                enterprise or organization in the same field of operation as the
                Joint
                Venture for a period of two (2) years after leaving the employment
                of the
                Joint Venture. 

            

    

    

    
      	
              10.5

            	
              The
                employees of the Joint Venture will have the right to establish a
                labor
                union in accordance with relevant laws and regulations of People’s
                Republic of China.

            

    

     

    11:
      TAXES, FINANCE, AUDIT AND PROFIT DISTRIBUTION

    

    
      	
              11.1
                

            	
              The
                Joint Venture will pay various taxes in accordance with relevant
                laws and
                regulations of the People’s Republic of
                China.

            

    

    

    
      	
              11.2
                

            	
              The
                Joint Venture will prepare financial statements at the end of each
                fiscal
                year and at times as may be required by the Board of Directors. The
                Joint
                Venture will conduct inspections and verification according to the
                related
                laws and regulations of foreign invested enterprises in the People’s
                Republic of China. Unless otherwise requested by the Board of Directors,
                the fiscal year financial statements should be submitted to both
                Parties
                herein for review within the duration of April 1st
                to
                May 1st
                of
                each year.

            

    

    

    
      	
              11.3

            	
              Each
                Party herein has the right to engage a professional outside entity
                for the
                purpose of auditing the financial records of the Joint Venture. The
                costs
                for the services of such outside entity are solely the responsibility
                of
                the initiating Party herein. The Joint Venture will not withhold
                unreasonably cooperation from the outside
                entity.

            

    

    
       

      
        
           

        

        
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                11.4

              	
                
                  After
                    the Joint Venture distributes the after-tax profit of the current
                    year, it
                    will put ten percent (10%) of the profit into a legal accumulation
                    fund
                    and five percent (5%) of the profit into public welfare fund.
                    

                

              

      

    

    

    When
      the
      Joint Venture operates at a financial loss, it must first cover the loss from
      any profit of the previous year before it takes any money from the legal
      accumulation fund and public welfare fund to cover its loss. 

    
      
         

      

    

    
      
        
          	
                  11.5

                	
                  
                    Any
                      after-tax profit that exists after the above cited required
                      contributions
                      to the legal accumulation fund and the social welfare fund
                      will be
                      distributed to the Parties herein in proportion to the capital
                      contribution made by each Party
                      herein.

                  

                

        

      

    

    

    
      	
              11.6

            	
              The
                two Parties herein may also negotiate other profit distribution
                methods.

            

    

     

    12:
      DURATION OF THE JOINT VENTURE

    

    
      	12.1        	
              The
                duration of the Joint Venture will be 20 years. The date of establishment
                of the Joint Venture will be the date of issuance of the business
                license.
                The duration of the Joint Venture can be prolonged if either Party
                herein
                submits a written proposal to the Board of Directors before six (6)
                months
                of the expiring date of the Agreement and it is approved by the Board
                of
                Directors.

            

    

    

    

    13:
      DISPOSAL OF ASSETS UPON LIQUIDATION OF THE JOINT VENTURE 

     

    
      	13.1        
              	
              Upon
                termination of the Joint Venture, liquidation of all assets will
                be
                carried out according to relevant laws and regulations of the People’s
                Republic of China. 

            

    

    

    
      	13.2        
              	
              The
                Board of Directors will form a Liquidation Committee comprised of
                members
                representing both Parties herein. The Liquidation Committee will
                conduct
                all liquidation procedures in accordance with the relevant laws and
                regulations of the People’s Republic of China.

            

    

    

    
      	13.3        
              	
              The
                liquidated assets will be distributed, upon the discharge of all
                liabilities of the Joint Venture, to the Parties herein in proportion
                to
                the capital contribution made by both Parties herein.
                

            

    

     

    
      
         

      

      
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      	13.4        
              	
              Fees
                incurred during the liquidation and the salaries for the Liquidation
                Committee will be deducted from the residual
                equity.

            

    

    

    
      	13.5        
              	
              All
                original copies of documents, files, contracts and books and records
                of
                the Joint Venture will be kept by Party A after the
                liquidation.

            

    

    

    14:
      INSURANCE

    

    
      	14.1        
              	
              The
                types, value and duration of insurance will be decided by the Board
                of
                Directors in accordance with the relevant laws and regulations of
                the
                People’s Republic of China.

            

    

    

    

    15.
      AMENDMENT, ALTERATION AND TERMINATION OF AGREEMENT

     

    

    
      	
              15.1
                

            	
              Any
                amendment to this Agreement or its appendices will come into force
                only by
                written agreement signed by both Parties herein and approved by the
                original government examination and approval
                authority.

            

    

    

    
      	
              15.2
                

            	
              Should
                it become impossible to fulfill this Agreement as a result of force
                majeure, or should it become impossible to continue the operations
                of the
                Joint Venture as a result of heavy losses sustained by the Joint
                Venture
                in successive years, the Joint Venture and this Agreement may be
                terminated prior to the date of expiration if unanimously decided
                by the
                Board of Directors and approved by the original government examination
                and
                approval authority. The Joint Venture may be terminated prior to
                its
                expiration date in the event that both Parties herein agree that
                termination of the Joint Venture is the mutual and the best interest
                of
                the Parties herein. The registration of the Joint Venture must then
                be
                canceled at the original government registration
                office.

            

    

    

    
      	
              15.3
                

            	
              If
                due to any one Party herein being unable to fulfill the obligations
                of
                this Agreement and the Articles of Incorporation, and if for that
                reason
                the Joint Venture cannot continue its normal business or cannot reach
                its
                target mentioned in the Agreement, then the Agreement would be deemed
                to
                have been stopped by the Party herein who made the violation. The
                other
                Party herein has the right to claim damages and to apply for the
                termination of the Agreement. If the other Party herein agrees to
                continue
                the business, the Party which committed the violation should compensate
                the economic damage. The other Party would have in that case a buying
                option for the shares owned by the defaulting Party.
                

            

    

     

    16:
      FORCE MAJEURE

     

    
      
         

      

      
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      	16.1         
              	
              Should
                the performance of this Agreement be directly affected or should
                it become
                impossible to perform this Agreement in accordance with the prescribed
                terms as a result of a force majeure event such as earthquake, typhoon,
                flood, fire, war, civil disorder, unforeseeable events where the
                occurrences and consequences are unpreventable and unavoidable without
                limitation, the Party herein affected by such event will notify the
                other
                Party herein by telegram or facsimile without any delay and, within
                ten
                (10) days thereafter, provide the detailed information of such event
                and a
                valid certification document giving reasons for such Party's inability
                to
                perform all or part of this Agreement or its delay of the
                performance.

            

    

    

    
      	
              16.2
                

            	
              If
                possible, the said document will be issued by a notary public office
                at
                the location where the force majeure event occurs. The Parties herein
                will
                decide through consultations whether to terminate this Agreement
                or to
                waive part of the obligations to be performed under this Agreement
                or to
                delay the performance of this Agreement according to the effects
                of the
                force majeure event on the performance of this
                Agreement.

            

    

     

    17:
      DISPUTE RESOLUTION

     

    
      	
              17.1
                

            	
              Any
                dispute arising from the execution of or in connection with this
                Agreement
                shall first be settled through friendly consultations between the
                Parties
                herein. In the event that no settlement can be reached through
                consultations, the disputes will be submitted to the China International
                Economic and Trade Arbitration Commission for arbitration. The
                arbitration fees and related expenses occurred will be borne by the
                losing
                Party.

            

    

     

    
      	17.2        
              	
              When
                the dispute, controversy or claim arising out of or in connection
                with
                this Agreement are being resolved either through friendly consultation
                or
                through arbitration, the Parties herein should take the interest
                of the
                whole into account and shall not hinder or affect the performance
                of the
                provisions other than in dispute, so as to guarantee the smooth operation
                of the Joint Venture to the extent
                possible.

            

    

     

    18:
      EFFECTIVENESS OF CONTRACT 

    

    
      	18.1        
              	
              The
                following appendices formulated in accordance with the principles
                of this
                Agreement shall be integral part of this Agreement:
                

            

    

     

    
      
         

      

      
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          10
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    Appendix
      1:  Copies
      of
      business licenses of the Parties herein;

    Appendix
      2:  Credit
      certificates of the Parties herein;

    Appendix
      3:  Identification
      certificated of the legal representatives  or
      authorized persons of the Parties herein; 

    Appendix
      4:  Authorization
      Proxy executed by the representatives  of
      each
      Party herein;

    Appendix
      5:  Board
      of
      Directors resolution for approval of the JV Agreement;

    Appendix
      6:  Raw
      Materials Contract; and

    Appendix
      7:  Water,
      Electricity, Gas and Transportation contracts.

     

    
      	
              18.2
                

            	
              This
                Agreement and its appendices will become effective subject to successful
                purchase of the equipment necessary to create the four production
                lines
                and upon approval by the original government examination and approval
                authority. The same applies in event of
                amendment.

            

    

    

    
      	
              18.3
                

            	
              The
                Parties herein will take all such efforts to carry out the purposes
                of
                this Agreement and its appendices. Neither Party herein will take
                any
                action that might have an adverse competitive effect or adverse
                consequence on the operation of the Joint
                Venture.

            

    

     

    19:
      Others

     

    
      	19.1        
              	
              Any
                amendment to this Agreement will be approved by Board of Directors
                and
                submitted to the original government examination and approval
                authority.

            

    

    

    
      	19.2        
              	
              This
                contract is in eight (8) originals, each Party herein receiving two
                (2)
                originals, the rest will be used for government authority approval
                and
                registration of the Joint Venture.

            

    

    

    
      	19.3        
              	
              In
                witness whereof, the Parties herein have signed this Agreement on
                ________
                by their duly authorized representatives in Inner Mongolia,
                China.

            

    

    

    
      	19.4        
              	
              The
                right of interpretation belongs to the Board of Directors of the
                Joint
                Venture. 

            

    

     

    
      
         

      

      
        -
          11
          -

        
          

        

      

      
         

      

    

     

    Party
      A:
      Tianjin Daqiuzhuang Metal Sheet Co., Ltd. (Daqiuzhuang Metal)

    Legal
      representative: 

    Date:

     

    

    

     

    

    Party
      B:
      Baotou Iron & Steel Group Co., Ltd. (Baotou Steel) 

    Legal
      representative:

    Date:

     

    
      
         

      

      
        -
          12
          -NOTE
      PURCHASE AND WARRANT AGREEMENT

     

    THIS
      NOTE PURCHASE AND WARRANT AGREEMENT
      (this
“Agreement”), dated as of February 28, 2007, by and among AskMeNow, Inc., a
      Delaware corporation (the “Company”), and the Purchasers identified on the
      signature page hereto (each a “Purchaser” and collectively
“Purchasers”).

     

    WHEREAS,
      the
      Company and the Purchasers are executing and delivering this Agreement in
      reliance upon an exemption from securities registration afforded by the
      provisions of Section 4(2), Section 4(6) and/or Regulation D (“Regulation D”) as
      promulgated by the United States Securities and Exchange Commission (the “SEC”)
      under the Securities Act of 1933, as amended (the “1933 Act”, collectively the
“Offering Exemption”); 

     

    WHEREAS,
      the
      parties desire that, upon the terms and subject to the conditions contained
      herein, the Company shall issue and sell (the “Bridge Loan”) to the Purchasers,
      as provided herein, and the Purchasers, in the aggregate, shall purchase on
      a
“best-efforts” no minimum basis, up to $3,000,000 principal amount of 12% Senior
      Promissory Notes (“Notes”), due and payable ninety (90) days from the date of
      issuance unless extended by the Company for up to an additional 90 days. An
      aggregate of 12,000,000 Common Stock Purchase Warrants (the “Warrants”) will be
      issued by the Company if the full $3,000,000 Bridge Loan is completed. The
      Company will issue Warrants to purchase four (4) shares of Common Stock for
      every $1.00 principal amount of Notes issued. The Notes and Warrants are in
      the
      forms included as Exhibits
      A and B
      to this
      Agreement. The Notes and Warrants Shares are collectively referred to herein
      as
      the “Securities;” and

     

    WHEREAS,
      pursuant to the Term Sheet for Bridge Loan dated February 13, 2007, Halpern
      Capital (“HC”) shall act as selling agent for the Bridge Loan and (i) receive
      Warrants to purchase up to 1,200,000 shares of Common Stock of the Company
      in
      connection with the Bridge Loan if the entire Bridge Loan is completed, or
      a
      proportionately smaller number of warrants if less money is loaned on the same
      terms as the Warrants issued in the Bridge Loan; (ii) Warrants to purchase
      an
      equal number of shares of Common Stock as the Warrants issued to HC under
      Subsection (i) above (e.g., 1,200,000 Warrants if the entire $3,000,000 Bridge
      Loan is completed) exercisable at $.01 per share; (iii) be reimbursed its
      reasonable out-of-pocket expenses including legal fees and disbursements not
      to
      exceed $15,000; and (iv) be granted a one-year right of first refusal, subject
      to the existing rights of Vertical Capital Partners (n/k/a Arjent, Ltd.) which
      the Company claims are in default and will indemnify the selling agent for
      any
      claims made by Arjent, Ltd.

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and other agreements contained in this
      Agreement the Company and the Purchasers hereby agree as follows:

     

    1. Purchase
      and Sale of Notes and Warrants.
      Upon
      the terms and subject to the satisfaction (or waiver) of the terms and
      conditions of this Agreement, the Company agrees to sell and each Purchaser
      hereby irrevocably agrees to purchase the full amount of Securities designated
      on the signature page hereto executed by each Purchaser for the Purchase Price
      indicated on the signature page hereto. The Purchase price for the Securities
      purchased by each Purchaser shall equal the aggregate principal amount of the
      Notes being purchased by such Purchaser.

     

    2. Escrow
      Arrangements; Form of Payment.
      Upon
      the execution of this Agreement, each Purchaser agrees to make the deliveries
      required of such Purchaser as set forth in this Agreement and the Company agrees
      to make the deliveries required of the Company as set forth in this Agreement.
      Each Purchaser shall send the subscription either by wire transfer or by check
      in accordance with the following instructions:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    

    
      	
              —
                Wire
                Funds

            	
              Wire
                the funds to AskMeNow, Inc. to
                the following account:

            
	 	 
	 	
              Bank
                of America

            
	 	
              Branch
                FL-333-01-01

            
	 	
              1500
                Hwy A1A

            
	 	
              Vero
                Beach, FL 32963

            
	 	
              Tel:
                (772) 234-6550

            
	 	
              Aba
                No. 026009593

            
	 	
              Acct.
                No. 005494402837

            
	 	
              Acct.
                Name:  AskMeNow, Inc.

            
	 	 
	 	 
	
              —
                Check

            	
              Make
                your check payable to “ASKMENOW, INC.” (Put Account No.
                005484598337 on check)

            

    

     

    3. Securities.

     

    (a) Notes.
      The
      Company is offering up to $3,000,000 principal amount of senior promissory
      Notes. Interest on the Notes shall accrue at the rate of 12% per annum. Interest
      shall be payable upon Maturity. The Maturity Date of the Notes shall be 90
      days
      from the date of issuance unless extended by the Company for up to an additional
      90 days. Interest on the Notes shall accrue at the rate of 14% per annum from
      the original Maturity Date until paid.

    

    (b) Warrant
      Exercise Period and Price.
      Each
      Warrant may be exercised to purchase four Warrant Shares at an Exercise Price
      per Warrant Share equal to $0.50 per share for every $1.00 of Notes issued.
      The
      Warrants shall be exercisable commencing upon issuance for a five (5) year
      period ending February 28, 2012.

    

    4.1 Closing.
      There
      shall be one or more closings (the “Closing”) of the purchase and sale of the
      Securities. The Purchasers shall purchase, severally and not jointly, and the
      Company shall sell and issue, in the aggregate, up to $3,000,000 principal
      amount of the Securities. Each Purchaser shall purchase from the Company, and
      the Company shall issue and sell to each Purchaser, such principal amount of
      Notes equal to such Purchaser’s Purchase Amount. The Closing will be deemed to
      occur at the offices of Phillips Nizer LLP, 666 Fifth Avenue, 28th
      Floor,
      New York, NY 10103, Attn: Elliot H. Lutzker, or such other time and/or location
      as the parties shall mutually agree when
      (A)
      this Agreement and the other Transaction Documents (as defined below) have
      been
      executed and delivered by the Company and, to the extent applicable, by each
      Purchaser, (B) each of the conditions to the Closing described in Section
      4.2 and Section 4.3
      hereof
      has been satisfied or waived by the Company or each Purchaser, as appropriate,
      and (C) each Purchaser shall have delivered the Purchase Price payable by it
      to
      the Company by wire transfer of immediately available funds against physical
      delivery of duly executed certificates representing the Notes and Warrants
      being
      purchased by such Purchaser. The date on which the Closing occurs is referred
      to
      herein as the “Closing
      Date”.

    

    4.2 Closing
      Conditions.
      Each
      Purchaser’s obligations to effect the Closing, including without limitation its
      obligation to purchase the Notes and Warrants at the Closing, are conditioned
      upon the fulfillment (or waiver by such Purchaser in its sole and absolute
      discretion) of each of the following events as of the Closing Date, and the
      Company shall use commercially reasonably efforts to cause each of such
      conditions to be satisfied:

     

    (a) At
      Closing, the Company shall deliver or cause to be delivered to each
      Purchaser:

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (i)a
      copy of
      this Agreement and the Registration Rights Agreement duly executed by the
      Company;

     

    (ii)a
      Note,
      duly executed by the Company, evidencing a principal amount equal to such
      Purchaser’s Purchase Amount at Closing registered in the name of such Purchaser;
      and

     

    (iii)a
      Warrant, each duly executed by the Company, registered in the name of such
      Purchaser, pursuant to which such Purchaser shall have the right to acquire
      up
      to four (4) shares of Common Stock for every $1.00 of the Purchaser’s Purchase
      Price.

     

    (b) the
      representations and warranties of the Company set forth in this Agreement and
      in
      the other transaction agreements (the “Transaction Agreements”) shall be true
      and correct in all material respects as of the Closing Date as if made on such
      date (except that to the extent that any such representation or warranty relates
      to a particular date, in which case such representation or warranty shall be
      true and correct in all material respects as of that particular
      date);

    

    (c) the
      Company shall have complied with or performed in all material respects all
      of
      the agreements, obligations and conditions set forth in this Agreement
      or
      the
      other Transaction Agreements that are required to be complied with or performed
      by the Company on or before such date;

    

    (d) the
      first
      Closing Date shall occur not later than 45 days from the date of this Agreement,
      unless extended for up to an additional 30 days;

    

    (e) the
      Common Stock shall be quoted on the OTC Bulletin Board maintained by the NASD
      or
      any National Securities Exchange and from
      the
      date hereof to the Closing Date , trading in the Common Stock shall not have
      been suspended by the Commission and, at any time prior to Closing, trading
      in
      securities generally as reported by Bloomberg Financial Markets shall not have
      been suspended or limited, or minimum prices shall not have been established
      on
      securities whose trades are reported by such service, or on any Trading Market,
      nor shall a banking moratorium have been declared either by the United States
      or
      New York State authorities;

    

    (f) the
      Company shall have authorized and reserved for issuance not less than the sum
      of
      (A) one hundred percent (100%) of the number of Warrant Shares issuable upon
      exercise of all of the Warrants issuable at the Closing, in each case without
      regard to any limitation on such conversion or exercise that may otherwise
      exist; 

    

    (g)
       there
      shall be no injunction, restraining order or decree of any nature of any court
      or government authority of competent jurisdiction that is in effect that
      restrains or prohibits the consummation of the transactions contemplated hereby
      or by the other Transaction Agreements.

    

    4.3 Conditions
      to Company’s Obligations at the Closing.
      The
      Company’s obligations to effect the Closing with each Purchaser are conditioned
      upon the fulfillment (or waiver by the Company in its sole and absolute
      discretion) of each of the following events as of the Closing Date:

    

    (a) At
      Closing each Purchaser shall deliver or cause to be delivered to the Company
      the
      following:

     

    (i)this
      Agreement and the Registration Rights Agreement, duly executed by such
      Purchaser;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (ii)such
      Purchaser’s Subscription Amount by wire transfer or check to escrow pursuant to
      the attached wiring instructions provided to the Purchasers by the Company;
      and

     

    (iii)an
      executed and properly completed copy of the appropriate Confidential Purchaser
      Questionnaire.

     

    (b) the
      representations and warranties of such Purchaser set forth in this Agreement
      and
      in the other Transaction Agreements shall be true and correct in all material
      respects as of such date as if made on such date (except that to the extent
      that
      any such representation or warranty relates to a particular date, in which
      case
      such representation or warranty shall be true and correct in all material
      respects as of that particular date); 

    

    (c) such
      Purchaser shall have complied with or performed all of the agreements,
      obligations and conditions set forth in this Agreement and in the other
      Transaction Agreements that are required to be complied with or performed by
      such
      Investor
      on or
      before the Closing Date; and

    

    (d) there
      shall be no injunction, restraining order or decree of any nature of any court
      or government authority of competent jurisdiction that is in effect that
      restrains or prohibits the consummation of the transactions contemplated hereby
      or by the other Transaction Agreements.

     

    5. Purchaser’s
      Representations and Warranties.
      Each
      Purchaser hereby represents and warrants as of the date hereof and as of the
      Closing, to and agrees with the Company as to such Purchaser and no other
      Purchaser that:

     

    (a) Information
      on Company.
      The
      Purchaser has been furnished, prior to the Closing Date of this Agreement,
      with
      information regarding the business, operations and financial condition of the
      Company, including without limitation, the Company’s Form 10-KSB for the year
      ended December 31, 2005, as amended, and filed with the Securities and Exchange
      Commission (the “Commission”) together with all filed Forms 10-QSB, 8-K, and any
      amendments thereto, filed subsequent to the Form 10-KSB, including any exhibits
      filed with such Forms 10-QSB, and/or 8-K, and filings made with the Commission
      available at the EDGAR website (hereinafter referred to collectively as the
      “Reports”). In addition, the Purchaser has received such other information
      concerning the Company’s operations, financial condition and other matters as
      the Purchaser has requested in writing (such other information is collectively,
      the “Other Written Information”), and considered all factors the Purchaser deems
      material in deciding on the advisability of investing in the Securities.
The
      Company has, prior to the Closing Date hereof, granted to such Purchaser the
      opportunity to ask questions of and receive satisfactory answers from
      representatives of the Company, its officers, directors, employees and agents
      concerning the Company and materials relating to the terms and conditions of
      the
      purchase and sale of the Securities hereunder, and based thereon believes it
      can
      make an informed decision with respect to its investment in the Securities.
      Neither such information nor any other investigation conducted by such Purchaser
      or its representatives shall modify, amend or otherwise affect such Purchaser’s
      right to rely on the Company’s representations and warranties contained in this
      Agreement.

     

    (b) Accredited
      Investor.
      The
      Purchaser is, and will be at the time of the Closing, an “accredited investor”
as defined in Rule 501(a) of Regulation D promulgated under the 1933 Act. Such
      Purchaser is not required to be registered as a broker-dealer under Section
      15
      of the Securities Exchange Act of 1934, as amended (the “1934 Act”); is
      experienced in investments and business matters, has made investments of a
      speculative nature; understands that an investment in the Securities involves
      a
      high degree of risk, and has purchased securities of United States
      publicly-owned companies in private placements in the past and, with its
      representatives, has such knowledge and experience in financial, tax and other
      business matters as to enable the Purchaser to utilize the information made
      available by the Company to evaluate the merits and risks of and to make an
      informed investment decision with respect to the proposed purchase, which
      represents a speculative investment. The Purchaser has the authority and is
      duly
      and legally qualified to purchase and own the Securities. The Purchaser is
      able
      to bear the risk of such investment for an indefinite period and to afford
      a
      complete loss thereof. The information set forth on the signature page hereto
      regarding the Purchaser is accurate. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (c) Purchase
      of Notes and Warrants.
      At
      Closing, the Purchaser will purchase the Notes and Warrants as principal for
      its
      own account for investment only and not as a nominee or agent and not with
      a
      view towards or for resale in connection with the distribution of the
      Securities, except
      pursuant to sales that are registered under, or are exempt from the registration
      requirements of, the Securities Act; provided,
      however,
      that,
      in making such representation, such Purchaser does not agree to hold the
      Securities for any minimum or specific term and reserves the right to sell,
      transfer or otherwise dispose of the Securities at any time in accordance with
      the provisions of this Agreement and with Federal and state securities laws
      applicable to such sale, transfer or disposition. 

     

    (d) Compliance
      with Securities Act.
      The
      Purchaser understands and agrees that the Securities are “restricted securities”
and have not been registered under the 1933 Act or any applicable state
      securities laws, by reason of their issuance in a transaction that does not
      require registration under the 1933 Act (based in part on the accuracy of the
      representations and warranties of Purchaser contained herein), and that such
      Securities must be held indefinitely unless a subsequent disposition is
      registered under the 1933 Act or any applicable state securities laws or is
      exempt from such registration.

     

    (e) Note
      Legend.
      Such
      Purchaser understands that the certificates representing the Notes may bear
      at
      issuance the following or similar legend:

     

    “THE
      SECURITIES REPRESENTED BY THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED. THESE SECURITIES MAY NOT BE SOLD, OFFERED
      FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT UNDER SUCH SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAW
      OR AN
      OPINION OF COUNSEL REASONABLY SATISFACTORY TO ASKMENOW, INC. THAT SUCH
      REGISTRATION IS NOT REQUIRED.”

     

    (f) Warrants
      Legend.
      Such
      Purchaser understands that the certificates representing the Warrants may bear
      at issuance the following or similar legend: 

     

    “THIS
      WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
      AND
      THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED
      FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT AS TO THIS WARRANT UNDER SAID ACT OR ANY APPLICABLE STATE SECURITIES
      LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO ASKMENOW, INC. THAT
      SUCH
      REGISTRATION IS NOT REQUIRED.”

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (g) Communication
      of Offer.
      The
      offer to sell the Securities was directly communicated to the Purchaser by
      the
      Company. At no time was the Purchaser presented with or solicited by any
      leaflet, newspaper or magazine article, radio or television advertisement,
      or
      any other form of general advertising, or solicited or invited to attend a
      promotional meeting otherwise than in connection and concurrently with such
      communicated offer.

     

    (h) Organization;
      Authority.
      If an
      entity, such Purchaser is duly organized, validly existing and in good standing
      under the laws of the jurisdiction of its organization with full right,
      corporate or partnership power and authority to enter into and to consummate
      the
      transactions contemplated by the Offering and otherwise to carry out its
      obligations thereunder.

     

    (i) Authority;
      Enforceability.
      This
      Agreement and other agreements delivered together with this Agreement or in
      connection herewith have been duly authorized, executed and delivered by the
      Purchaser and are valid and binding agreements enforceable in accordance with
      their terms, subject to bankruptcy, insolvency, fraudulent transfer,
      reorganization, moratorium and similar laws of general applicability relating
      to
      or affecting creditors’ rights generally and to general principles of equity;
      and Purchaser has full corporate power and authority necessary to enter into
      this Agreement and such other agreements and to perform its obligations
      hereunder and under all other agreements entered into by the Purchaser relating
      hereto.

     

    (j) Correctness
      of Representations.
      Such
      Purchaser understands that the Securities are being offered and sold to it
      in
      reliance upon specific exemptions from the registration requirements of federal
      and state securities laws and that the Company is relying upon the truth and
      accuracy of the representations and warranties of such
      Purchaser
      set
      forth in this Section
      5
      in order
      to determine the availability of such exemptions and the eligibility of
such
      Investor
      to
      acquire the Securities. Each Purchaser represents that the foregoing
      representations and warranties are true and correct as of the date hereof and,
      unless a Purchaser otherwise notifies the Company prior to the Closing, shall
      be
      true and correct as of Closing. The foregoing representations and warranties
      shall survive the Closing Date for a period of three (3) years.

    

    (k) No
      Tax
      or Legal Advice.
      Such
      Purchaser understands that nothing in this Agreement, any other agreement or
      any
      other materials presented to such Purchaser in connection with the purchase
      and
      sale of the Securities constitutes legal, tax or investment advice. Such
      Purchaser has consulted such legal, tax and investment advisors as it, in its
      sole discretion, has deemed necessary or appropriate in connection with its
      purchase of Units. Circular
      230 Disclosure:
      Pursuant to U.S. Treasury Department Regulations, we are required to
advise
      you that, unless otherwise expressly indicated, any federal tax advice contained
      in this Agreement, is not intended or written to be used, and may not be used,
      for the purpose of (i) avoiding tax-related penalties under the Internal Revenue
      Code or (ii) promoting, marketing or recommending to another party any
      tax-related matters addressed herein.

    

    6. Company
      Representations and Warranties.
      The
      Company represents and warrants to and agrees with each Purchaser as follows
      and
      acknowledges that such Purchaser is relying on the representations,
      acknowledgments and agreements made by the Company in this Article 6 and
      elsewhere in this Agreement in making investing, trading and other decisions
      concerning the Company’s securities:

    

    (a) Due
      Incorporation.
      The
      Company is duly organized, validly existing and in good standing under the
      laws
      of its state of incorporation and has the requisite corporate power to own
      its
      properties and to carry on its business as now being conducted. The Company
      is
      duly qualified as a foreign corporation to do business and is in good standing
      in each jurisdiction where the nature of the business conducted or property
      owned by it makes such qualification necessary, where the failure to be so
      qualified or in good standing, as the case may be, would not have or reasonably
      be expected to result in (i) a material adverse effect on the legality, validity
      or enforceability of this Agreement or any other document in connection with
      the
      Offering, (ii) a material adverse effect on the results of operations, assets,
      business or financial condition of the Company and each subsidiary, taken as
      a
      whole, or (iii) a material adverse effect on the Company’s ability to perform in
      any material respect on a timely basis its obligations under this Agreement
      (any
      of (i), (ii) or (iii), a “Material
      Adverse Effect”).
      

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    (b)  Outstanding
      Stock.
      All of
      the issued and outstanding shares of capital stock of the Company and each
      of
      its subsidiaries have been duly authorized and validly issued and are fully
      paid
      and non-assessable. As of January 31, 2007, there were 32,994,887 shares of
      $0.01 par value common stock outstanding and approximately 70,000,000 Shares
      on
      a fully diluted basis. All
      outstanding shares of capital stock of the Company have been validly issued,
      fully paid and nonassessable and free and clear of all Liens. All outstanding
      shares of capital stock of the Company were issued, sold and delivered in full
      compliance with all applicable Federal and state securities laws and the similar
      laws of other foreign jurisdictions as may be applicable.

     

    (c) Due
      Execution; Enforceability.
      This
      Agreement and the Notes, Warrants and Registration Rights Agreement and such
      other agreements entered into in connection with the Offering constituting
      the
      Transaction Agreements, have been duly authorized, executed and delivered by
      the
      Company and are valid and binding agreements enforceable in accordance with
      their terms, subject to bankruptcy, insolvency, fraudulent transfer,
      reorganization, moratorium and similar laws of general applicability relating
      to
      or affecting creditors’ rights generally and to general principles of equity;
      and the Company has full corporate power and authority necessary to enter into
      this Agreement and the other Transaction Agreements and to perform its
      obligations hereunder and under all other Transaction Agreements entered into
      by
      the Company relating hereto.

     

    (d) Authorization;
      Consents.
      The
      Company has the requisite corporate power and authority to enter into and
      perform its obligations under this Agreement and the other Transaction
      Agreements, including without limitation its obligations to issue and sell
      the
      Securities and to issue the Warrant Shares upon exercise of the Warrants. All
      corporate action on the part of the Company by its officers, directors and
      stockholders necessary for the authorization, execution and delivery of, and
      the
      performance by the Company of its obligations under this Agreement and the
      other
      Transaction Agreements has been taken. No
      further consent, approval, authorization or order of any court, governmental
      agency or body or arbitrator having jurisdiction over the Company, or any of
      its
      affiliates, the American Stock Exchange, the NASD, Inc., Nasdaq, the OTC
      Bulletin Board nor the Company’s Shareholders or Board of Directors is required
      for execution of or full performance under this Agreement and the other
      Transaction Agreement (other than such approval as may be required under the
      Securities Act and applicable state securities laws in respect of the
      Registration Rights Agreement), other than if then listed on Nasdaq fifteen
      (15)
      days prior notification to Nasdaq of the Closing and the Company filing a
      listing application with Nasdaq and all other agreements entered into by the
      Company relating thereto, including, without limitation, the issuance and sale
      of the Securities, and the performance of the Company’s obligations hereunder
      and under all such other Transaction Agreements. The Board of Directors of
      the
      Company has determined, at a duly convened meeting or pursuant to a unanimous
      written consent, that the issuance and sale of the Securities, and the
      consummation of the transactions contemplated by this Agreement and the other
      Transaction Agreements are in the best interests of the Company.

     

    (e) No
      Violation or Conflict.
      Neither
      the execution and delivery of this Agreement nor the issuance and sale of the
      Securities nor the performance of the Company’s obligations under this Agreement
      and all other Transaction Agreements entered into by the Company relating
      thereto by the Company will:

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (i) violate,
      conflict with, result in a material breach of, or constitute a default (or
      an
      event which with the giving of notice or the lapse of time or both would be
      reasonably likely to constitute a default) or gives to others any rights of
      termination, amendment, acceleration or cancellation under (A) the articles
      of
      incorporation, charter or bylaws of the Company, (B) any decree, judgment,
      order, law, treaty, rule, regulation or determination applicable to the Company
      of any court, governmental agency or body, or arbitrator having jurisdiction
      over the Company or any of its affiliates (including federal and state
      securities laws and regulations) or over the properties or assets of the Company
      or any of its affiliates, (C) the terms of any bond, debenture, note or any
      other evidence of indebtedness, or any agreement, stock option or other similar
      plan, indenture, lease, mortgage, deed of trust or other instrument to which
      the
      Company or any of its affiliates is a party, by which the Company or any of
      its
      affiliates is bound or affected, or to which any of the properties or assets
      of
      the Company or any of its affiliates is subject, or (D) the terms of any
“lock-up” or similar provision of any underwriting or similar agreement to which
      the Company, or any of its affiliates is a party except the violation, conflict,
      breach, or default of which would not have a Material Adverse Effect on the
      Company; or

     

    (ii) result
      in
      the creation or imposition of any lien, charge or encumbrance upon the
      securities or any of the assets of the Company, its subsidiaries or any of
      its
      affiliates.

     

    (f) The
      Securities.
      The
      Notes, Warrants and Warrant Shares (collectively the “Securities”) upon
      issuance:

    

    (i) are,
      or
      will be, free and clear of any security interests, liens, claims or other
      encumbrances, subject to restrictions upon transfer under the 1933 Act and
      any
      applicable state securities laws;

    

    (ii) assuming
      the accuracy of each Purchaser’s representations in this Agreement, will be
      issued, sold and delivered in compliance with all applicable Federal and state
      securities laws;

    

    (iii) have
      been, or will be, duly and validly authorized and on the date of issuance,
      and
      upon exercise of the Warrants, the shares of Common Stock issuable thereunder
      will be duly and validly issued, fully paid and nonassessable (and if registered
      pursuant to the 1933 Act, and resold pursuant to an effective registration
      statement will be free trading and unrestricted, provided that each Purchaser
      complies with the prospectus delivery requirements of the 1933 Act and any
      state
      securities laws);

     

    (iv) will
      not
      have been issued or sold in violation of any preemptive or other similar rights
      of the holders of any securities of the Company; and 

     

    (v) will
      not
      subject the holders thereof to personal liability by reason of being such
      holders.

     

    (g) Litigation.
      Except
      as disclosed in the Reports, there is not pending against the Company or any
      subsidiary, nor, to the best knowledge of the Company, there are no actions,
      suits, proceeding inquiries, notices of violation, or investigations threatened
      against the Company or any subsidiary by or before any court, governmental
      or
      administrative agency or regulatory body (federal, state, county, local or
      foreign), or arbitrator having jurisdiction over the Company, or any of its
      affiliates. Except as disclosed in the Reports, there is no pending or, to
      the
      best knowledge of the Company, threatened action, suit, proceeding or
      investigation before any court, governmental agency or body, or arbitrator
      having jurisdiction over the Company, its subsidiaries, or any of its
      affiliates, which litigation or proceeding, if adversely determined could have
      a
      Material Adverse Effect on the Company. The Company is
      not a
      party to or subject to the provisions of, any order, writ, injunction, judgment
      or decree of any court or governmental authority which has had or would
      reasonably be expected to have a Material Adverse Effect.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (h) Reporting
      Company.
      The
      Company is subject to reporting obligations pursuant to Sections 15(d) and
      13 of
      the 1934 Act and has a class of common stock, par value $.01, registered
      pursuant to Section 12(g) of the 1934 Act. Pursuant to the provisions of the
      1934 Act, the Company has filed all reports and other materials required to
      be
      filed thereunder with the Commission during the preceding two years,
although
      the Company has disclosed to Purchaser outstanding SEC comments.
      Other
      than the transactions effected hereby, the Company is not aware of any event
      occurring or expected to occur on or prior to the Closing Date that would
      require the filing of, or with respect to which the Company intends to file,
      a
      Current Report on Form 8-K after the Closing. Each Report, as of the date of
      the
      filing thereof with the Commission, complied in all material respects with
      the
      requirements of the Securities Act or Exchange Act, as applicable, and the
      rules
      and regulations promulgated thereunder, although the Company has disclosed
      to
      Purchaser outstanding SEC comments which render the existing Reports deficient
      and, as of the date of such filing (or if amended or superseded by a filing
      prior to the Closing Date, then on the date of such amending or superseding
      filing). All documents required to be filed as exhibits to the Reports have
      been
      filed as required. 

     

    (i) No
      Market Manipulation.
      The
      Company has not taken, and will not take, directly or indirectly, any action
      designed to, or that might reasonably be expected to, cause or result in
      stabilization or manipulation of the price of the common stock of the Company
      to
      facilitate the sale or resale of the Securities or affect the price at which
      the
      Securities may be issued or resold.

    

    (j) Information
      Concerning Company; Financial Statements.
      The
      Reports since June 6, 2005, contain all material information relating to the
      Company and its operations and financial condition as of their respective dates
      which information is required to be disclosed therein. Since the date of the
      financial statements included in the Reports, there has been no Material Adverse
      Effect in the Company’s business, financial condition or affairs not disclosed
      in the Reports. The Reports since June 6, 2005 do not contain any untrue
      statement of a material fact or omit to state a material fact required to be
      stated therein or necessary to make the statements therein not misleading in
      light of the circumstances when made. The Company has not incurred any
      liabilities (contingent or otherwise) other than (A) trade payables and accrued
      expenses incurred in the ordinary course of business consistent with past
      practice and (B) liabilities not required to be reflected in the Company’s
      financial statements pursuant to GAAP or required to be disclosed in filings
      made with the Commission. The Company has not altered its method of accounting
      or any policies or practices related thereto. The Company has not declared
      or
      made any dividend or distribution of cash or other property to its stockholders
      or purchased, redeemed or made any agreements to purchase or redeem any shares
      of its capital stock. The Company does not have pending before the Commission
      any request for confidential treatment of information other than with respect
      to
      its software license agreement with Expert System, S.p.A.

    

    (k) SEC
      Action; Stop Transfers.
      There
      has not been, and to the Company’s best knowledge there has not been, there is
      not pending or contemplated, any investigation by the Commission involving
      the
      Company.  The Commission has not issued any stop order or other order
      suspending the effectiveness of any registration statement filed by the Company
      or any subsidiary under the 1933 Act or the 1934 Act. The Securities, when
      issued, will be restricted securities. The Company will not issue any stop
      transfer order or other order impeding the sale, resale or delivery of any
      of
      the Securities, except as may be required by any applicable federal or state
      securities laws. Except as described in this Agreement, the Company will not
      issue any stop transfer or other order impeding the sale, resale or delivery
      of
      the Securities unless contemporaneous notice of such instruction is given to
      the
      Purchaser.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (l) Defaults;
      Permits.
      The
      Company is not in violation of its Articles of Incorporation or ByLaws. The
      Company is (i) not in default (including the occurrence of any event that with
      the passage of time will become a default) under or in violation of any other
      material agreement or instrument to which it is a party or by which it or any
      of
      its properties are bound or affected, which default or violation would have
      a
      material adverse effect on the Company, (ii) not in default with respect to
      any
      order of any court, arbitrator or governmental body or subject to or party
      to
      any order of any court or governmental authority arising out of any action,
      suit
      or proceeding under any statute or other law respecting antitrust, monopoly,
      restraint of trade, unfair competition or similar matters, except as alleged
      by
      Pioneer Credit Recovery and as publicly disclosed, or (iii) to its knowledge
      in
      violation of any statute, rule or regulation of any governmental authority
      which
      violation would have a material adverse effect on the Company. The
      Company possesses all material certificates, authorizations and permits issued
      by the appropriate federal, state or foreign regulatory authorities necessary
      to
      conduct its business, other than where the failure to possess such certificates,
      authorizations or permits, individually or in the aggregate, has not had and
      would not reasonably be expected to have a Material Adverse Effect. Neither
      the
      Company nor any of its Subsidiaries has received any notice or otherwise become
      aware of any proceedings, inquiries or investigations relating to the revocation
      or modification of any such certificate, authorization or permit.

     

    (m) No
      Integration or General Solicitation.
      Neither
      the Company, nor any of its affiliates, nor to the Company’s knowledge, any
      person acting on its or their behalf, has directly or indirectly made any offers
      or sales of any security or solicited any offers to buy any security that would
      cause the offer of the Securities pursuant to this Agreement to be integrated
      with prior offerings by the Company for purposes of the 1933 Act or any
      applicable stockholder approval provisions. The Company or any of its affiliates
      will not take any action or steps that would cause the offer of the Securities
      to be integrated with other offerings if such integration would eliminate the
      Offering Exemption. The Company will not conduct any offering other than the
      transactions contemplated hereby that will be integrated with the offer or
      issuance of the Securities, unless otherwise advised by Nasdaq or the
      Commission. Neither
      the Company nor its Affiliates, nor to the Company’s knowledge, any person
      acting on its or their behalf, has engaged in any form of general solicitation
      or general advertising (within the meaning of Regulation D) in connection with
      the offer or sale of the Securities. 

     

    (n) Listing.
      The
      Company’s common stock is listed for trading on the OTC Bulletin Board (“OTCBB”)
      maintained by the NASD. Except for prior notices which, as of the date hereof,
      have been satisfied and as provided for in Section 11(b) below, the Company
      has
      not received any oral or written notice that its common stock will be delisted
      from the OTCBB nor that its common stock does not meet all requirements for
      the
      continuation of such quotation and the Company satisfies the requirements for
      the continued listing of its common stock on the OTCBB. The Company has taken
      no
      action designed to, or which, to the knowledge of the Company, may have the
      effect of, terminating the Company’s reporting obligation under the Exchange Act
      or the removal of the Common Stock from the OTCBB.

     

    (o) No
      Undisclosed Liabilities.
      The
      Company has no liabilities, debt or other obligations which are material,
      individually or in the aggregate, since June 6, 2005, which are not disclosed
      in
      the Reports and/or Other Written Information (and in which case have been
      publicly announced), other than (i) those incurred in the ordinary course of
      the
      Company’s businesses since June 6, 2005 and which, individually or in the
      aggregate, would not reasonably be expected to have a Material Adverse Effect
      on
      the Company’s financial condition.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (p) No
      Undisclosed Events or Circumstances.
      Since
      June 5, 2005, no event or circumstance has occurred or exists with respect
      to
      the Company or its businesses, properties, operations or financial condition,
      that may have a Material Adverse Effect or, under applicable law, rule or
      regulation, requires public disclosure or announcement prior to the date hereof
      by the Company but which has not been so publicly announced or disclosed in
      the
      Reports.

     

    (q) Capitalization.
      The
      capitalization of the Company, since June 6, 2005 and as of the date hereof,
      including its authorized capital stock, the number of shares issued and
      outstanding and the number of shares issuable and reserved for issuance pursuant
      to the Company’s stock option plans is disclosed in the Reports.

     

    (r) Correctness
      of Representations.
      The
      Company represents that the foregoing representations and warranties are true
      and correct as of the date hereof in all material respects. The foregoing
      representations and warranties shall survive until one year after the Closing
      Date.

     

    (s) Title
      to Assets. 
      Except as disclosed in the Reports, the Company has good and marketable title
      in
      fee simple to all real property owned by them that is material to the business
      of the Company and each subsidiary, taken as a whole, and good and marketable
      title in all personal property owned by them that is material to the business
      of
      the Company and each subsidiary, taken as a whole, in each case free and clear
      of all liens, charges, security interests, encumbrances, rights of first
      refusal, or other restrictions (collectively “Liens”) except for Liens as do not
      materially affect the value of such property and do not materially interfere
      with the use made and proposed to be made of such property by the Company and
      each subsidiary and Liens for the payment of federal, state or other taxes,
      the
      payment of which is neither delinquent nor subject to penalties.  Any real
      property and facilities held under lease by the Company is held by the Company
      under valid, subsisting and enforceable leases with which the Company and each
      subsidiary is in material compliance.

     

    (t) Application
      of Takeover Protections. 
      The Company and its Board of Directors have taken all necessary action, if
      any,
      in order to render inapplicable any control share acquisition, business
      combination, poison pill (including any distribution under a rights agreement)
      or other similar anti-takeover provision under the Company’s Certificate of
      Incorporation (or similar charter documents) or the laws of its state of
      incorporation that is or could become applicable to the Purchasers as a result
      of the Purchasers and the Company fulfilling their obligations or exercising
      their rights under the Offering, including without limitation the Company’s
      issuance of the Units and the Purchasers’ ownership of the underlying
      securities.

     

    (u) Disclosure. 
      The Company confirms that, neither the Company nor any other person acting
      on
      its behalf has provided any of the Purchasers or their agents or counsel with
      any information that constitutes or might constitute material, non-public
      information.   The Company understands and confirms that the
      Purchasers will rely on the foregoing representations and covenants in effecting
      transactions in securities of the Company. All disclosure provided to the
      Purchasers regarding the Company, its business and the transactions contemplated
      hereby, including the Disclosure Schedules to this Agreement, furnished by
      or on
      behalf of the Company are true and correct and do not contain any untrue
      statement of a material fact or omit to state any material fact necessary in
      order to make the statements made therein, in light of the circumstances under
      which they were made, not misleading. 

     

    (v) Registration
      Rights.
      Except
      as disclosed in the Reports, since June 6, 2005, no
      person
      has any right to cause the Company to effect the registration under the 1933
      Act
      of any securities of the Company and the Company has not granted or agreed
      to
      grant to any person or entity any rights (including “piggy-back” registration
      rights) to have any securities of the Company registered with the Commission
      or
      any other governmental authority which has not been satisfied in full prior
      to
      the date hereof other than the holders of Series A, Series B and Series C
      Convertible Preferred Stock and various bridge loans.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (w) Intellectual
      Property.
      

    

    (i) The
      Company and/or its Subsidiaries own, free and clear of claims or rights of
      any
      other Person, with full right to use, sell, license, sublicense, dispose of,
      and
      bring actions for infringement of, or has acquired licenses or other rights
      to
      use, all Intellectual Property necessary for the conduct of its business as
      presently conducted (other than with respect to “off-the-shelf” software which
      is generally commercially available and open source software which may be
      subject to one or more “general public” licenses). All works that are used or
      incorporated into the Company’s or its Subsidiaries’ services, products or
      services or products actively under development and which is proprietary to
      the
      Company or its Subsidiaries was developed by or for the Company or its
      Subsidiaries by the current or former employees, consultants or independent
      contractors of the Company or its Subsidiaries or purchased by the Company
      or
      its Subsidiaries and are owned by the Company or its Subsidiaries, free and
      clear of claims and rights of any other Person. 

     

    (ii)  The
      business of the Company and its Subsidiaries as presently conducted and the
      production, marketing, licensing, use and servicing of any products or services
      of the Company and its Subsidiaries do not, to the Company’s knowledge, infringe
      or conflict with any patent, trademark, copyright, or trade secret rights of
      any
      third parties or any other Intellectual Property of any third parties. Neither
      the Company nor any of its Subsidiaries has received written notice from any
      third party other than AskAnything.com asserting that any Intellectual Property
      owned or licensed by the Company or its Subsidiaries, or which the Company
      or
      its Subsidiaries otherwise has the right to use, is invalid or unenforceable
      by
      the Company or its Subsidiaries, as the case may be, and, to the Company’s
      knowledge, there is no valid basis for any such claim (whether or not pending
      or
      threatened). No claim is pending or, to the Company’s knowledge, threatened
      against the Company or any of its Subsidiaries nor has the Company or any of
      its
      Subsidiaries received any written notice or other written claim from any Person
      other than AskAnything.com asserting that any of the Company’s or its
      Subsidiaries’ present or contemplated activities infringe or may infringe in any
      material respect any Intellectual Property of such Person, and the Company
      is
      not aware of any infringement by any other Person of any material rights of
      the
      Company or any of its Subsidiaries under any Intellectual Property
      Rights.

     

    (iii) All
      unexpired and in force licenses or other agreements under which the Company
      or
      any of its Subsidiaries is granted Intellectual Property (excluding licenses
      to
      use “off-the-shelf” software utilized in the Company’s or its Subsidiaries’
internal operations and which is generally commercially available) are in full
      force and effect and, to the Company’s knowledge, there is no material default
      by any party thereto. The Company has no reason to believe that the licensors
      under such licenses and other agreements do not have and did not have all
      requisite power and authority to grant the rights to the Intellectual Property
      purported to be granted thereby. All unexpired licenses or other agreements
      under which the Company or any of its Subsidiaries has granted rights to
      Intellectual Property to others (including all end-user agreements) are in
      full
      force and effect, there has been no material default by the Company or its
      Subsidiaries thereunder and, to the Company’s knowledge, there is no material
      default by any other party thereto. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (iv) Each
      of
      the Company and its Subsidiaries have taken all steps required in accordance
      with commercially reasonable business practice to establish and preserve its
      respective ownership in its owned Intellectual Property and to keep confidential
      all material technical information developed by or belonging to the Company
      or
      its Subsidiaries which has not been patented or copyrighted. To the Company’s
      knowledge, neither the Company nor any of its Subsidiaries is making unlawful
      use of any Intellectual Property of any other Person, including, without
      limitation, any former employer of any past or present employees of the Company
      or any of its Subsidiaries. Current and former employees, independent
      contractors or consultants of the Company and its Subsidiaries have executed
      agreements regarding confidentiality, proprietary information and assignment
      of
      inventions and copyrights to the Company or its Subsidiaries (as the case may
      be), and neither the Company nor any of its Subsidiaries has received written
      notice that any employee, consultant or independent contractor is in violation
      of any agreement or in breach of any agreement or arrangement with former or
      present employers relating to proprietary information or assignment of
      inventions. Without limiting the foregoing: (i) the Company and each of its
      Subsidiaries have taken reasonable security measures to guard against
      unauthorized disclosure or use of any of its Intellectual Property; and (ii)
      the
      Company has no reason to believe that any Person (including, without limitation,
      any former employee or consultant of the Company or its Subsidiaries) has
      unauthorized possession of any of its Intellectual Property, or any part
      thereof, or that any Person has obtained unauthorized access to any of its
      Intellectual Property. The
      consummation of the transactions contemplated by this Agreement and the other
      Transaction Agreements will not materially alter or impair, individually or
      in
      the aggregate, any of such rights of the Company
      or its
      Subsidiaries.
      

    

    (x) Foreign
      Corrupt Practices.
      Neither
      the Company, nor, to the Company’s knowledge, any director, officer, agent,
      employee or other person acting on behalf of the Company or any Subsidiary,
      since June 6, 2005, has (i) used any corporate funds for any unlawful
      contribution, gift, entertainment or other unlawful expenses relating to
      political activity, (ii) made any direct or indirect unlawful payment to any
      foreign or domestic government official or employee (including without
      limitation any bribe, rebate, payoff, influence payment, kickback or other
      unlawful payment), or (iii) violated any provision of the Foreign Corrupt
      Practices Act of 1977, as amended.

    

    (y) Employee
      Matters.
      There
      is no strike, labor dispute or union organization activities pending or, to
      the
      knowledge of the Company, threatened between it and its employees (or between
      any of its Subsidiaries and such Subsidiary’s employees). No employees of the
      Company belong to any union or collective bargaining unit. The Company has
      complied in all material respects with all applicable federal and state equal
      opportunity and other laws related to employment. 

     

    (z) Environment.
      To the
      Company’s knowledge, neither the Company nor any of its Subsidiaries has any
      current liability under any Environmental Law, nor, to the knowledge of the
      Company, do any factors exist that are reasonably likely to give rise to any
      such liability that, individually or in the aggregate, has
      had
      or would reasonably be expected to have a
      Material Adverse Effect. To the Company’s knowledge, neither the Company nor any
      of its Subsidiaries has violated any Environmental Law applicable to it now
      or
      previously in effect, other than such violations or infringements that,
      individually or in the aggregate, have not had and would not reasonably be
      expected to have a Material Adverse Effect.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (aa) Investment
      Company Status.
      The
      Company is not, and immediately after receipt of the Purchase Price for the
      Securities issued under this Agreement will not be, an “investment
      company”
or
      an
      entity “controlled”
by
      an
“investment
      company”
within
      the meaning of the Investment Company Act of 1940, as amended (the “Investment
      Company Act”),
      and
      the Company shall conduct its business in a manner so that it will not become
      subject to the Investment Company Act.

    

    (bb) Taxes.
      The
      Company and each of its Subsidiaries (i) have prepared in good faith and duly
      and timely filed all tax returns required to be filed by it or is on a current
      extension and such returns are complete and accurate in all material respects
      and (ii) have paid all taxes required to have been paid by it, except for taxes
      which it reasonably disputes in good faith or the failure of which to pay has
      not had or would not reasonably be expected to have a Material Adverse Effect.
      Neither the Company nor any of its Subsidiaries has any liability with respect
      to accrued taxes in excess of the amounts that are described as accrued in
      the
      most recent financial statements included in the Reports. No
      stock
      transfer or other taxes (other than income taxes) are required to be paid in
      connection with the issuance and sale of any of the Securities, other than
      such
      taxes for which the Company has established appropriate reserves and intends
      to
      pay in full on or before the Closing.

    

    (cc) Solvency.
      (i) The
      fair saleable value of the Company’s assets exceeds the amount that will be
      required to be paid on or in respect of the Company's existing Debt as such
      Debt
      matures or is otherwise payable; (ii) the Company's assets do not constitute
      unreasonably small capital to carry on its business for the current fiscal
      year
      as now conducted and as proposed to be conducted taking into account the current
      and projected capital requirements of the business conducted by the Company
      and
      projected capital availability; and (iii) the current cash flow of the Company,
      together with the proceeds the Company would receive upon liquidation of its
      assets, after taking into account all anticipated uses of such amounts, would
      be
      sufficient to pay all Debt when such Debt is required to be paid. The Company
      has no knowledge of any facts or circumstances which lead it to believe that
      it
      will be required to file for reorganization or liquidation under the bankruptcy
      or reorganization laws of any jurisdiction, and has no present intention to
      so
      file. 

    

    (dd) Transactions
      with Interested Person.
      No
      officer, director or employee of the Company or any of its Subsidiaries is
      or
      has taken any steps to become a party to any transaction with the Company or
      any
      Subsidiary (other than for services as employees, officers and directors),
      including any contract, agreement or other arrangement providing for the
      furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any officer,
      director or such employee or, to the knowledge of the Company, any entity in
      which any officer, director, or any such employee has a substantial interest
      or
      is an officer, director, trustee or partner.

    

    (ee)
       No
      Other Agreements.
      The
      Company has not, directly or indirectly, entered into any agreement with or
      granted any right to any Purchaser relating to the terms or conditions of the
      transactions contemplated by this Agreement or the Transaction Agreements except
      as expressly set forth therein.

     

    7. Regulation
      D Offering.
      This
      Offering is being made pursuant to the exemption from the registration
      provisions of the 1933 Act afforded by Section 4(2) or Section 4(6) of the
      1933
      Act and/or Rule 506 of Regulation D promulgated thereunder. The Company will
      provide, at the Company’s expense, such other legal opinions in the future as
      are reasonably necessary for the exercise of the Warrants, conversion of the
      Debentures and resale of the Underlying Shares. 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    8. Reissuance
      of Securities.
      The
      Company agrees to reissue certificates representing the Warrant Shares without
      the legends set forth in Sections 5(e) and 5(f) above at such time as (a) the
      holder thereof is permitted to and disposes of the Securities pursuant to Rule
      144(d) and/or Rule 144(k) under the 1933 Act in the opinion of counsel
      reasonably satisfactory to the Company, or (b) upon resale subject to an
      effective registration statement after the Shares and the Warrant Shares are
      registered under the 1933 Act. The Company agrees to cooperate with each
      Purchaser in connection with all resales pursuant to Rule 144(d) and Rule 144(k)
      and provide legal opinions at the Company’s expense necessary to allow such
      resales provided the Company and its counsel receive reasonably requested
      written representations from each Purchaser and selling broker, if any.

     

    9. Broker’s
      Compensation.

    

    The
      Company agrees to indemnify the Purchaser against and hold it harmless from
      any
      and all liabilities to any persons claiming brokerage commissions or Broker’s
      Commission on account of services purported to have been rendered on behalf
      of
      the indemnifying party in connection with this Agreement or the transactions
      contemplated hereby and arising out of such party’s actions. The Company
      represents that other than Halpern Capital there are no other parties entitled
      to receive fees, commissions, or similar payments in connection with the
      offering described in this Agreement and anyone else the Company, shall be
      responsible to pay.

     

    10. Covenants
      of the Company.
      The
      Company covenants and agrees with the Purchasers that from the Closing Date
      until two years from the Closing or such later date as is expressly set forth
      below, as follows:

     

    (a) Stop
      Orders.
      The
      Company will advise the Purchasers, promptly after it receives notice of
      issuance by the Commission, any state securities commission or any other
      regulatory authority of any stop order or of any order preventing or suspending
      any offering of any securities of the Company, or of the suspension of the
      qualification of the Common Stock of the Company for offering or sale in any
      jurisdiction, or the initiation of any proceeding for any such
      purpose.

     

    (b) Listing;
      Bluesky.
      If
      applicable, the Company shall use its reasonable best efforts to promptly secure
      the listing of the Underlying Shares upon each national securities exchange,
      or
      automated quotation system, if any, upon which shares of common stock are then
      listed (subject to official notice of issuance) and shall use its reasonable
      best efforts to maintain such listing so long as any Securities are outstanding.
      The Company shall use its reasonable best efforts to maintain the listing of
      its
      Common Stock on the American Stock Exchange, Nasdaq, OTC Bulletin Board, or
      New
      York Stock Exchange (whichever of the foregoing is at the time the principal
      trading exchange or market for the Common Stock (the “Principal Market”)), and
      will comply in all material respects with the Company’s reporting, filing and
      other obligations under the bylaws or rules of the Principal Market, as
      applicable. The Company will provide the Purchasers copies of all notices it
      receives notifying the Company of the threatened and actual delisting of the
      Common Stock from any Principal Market.

     

    (c) Market
      Regulations.
      If
      required, the Company shall notify the Commission, the Principal Market and
      applicable state authorities, in accordance with their requirements, if any,
      of
      the transactions contemplated by this Agreement, and shall take all other
      necessary action and proceedings as may be required and permitted by applicable
      law, rule and regulation, for the legal and valid issuance of the Securities
      to
      the Purchasers and promptly provide copies thereof to Purchaser.

     

    (d) Reporting
      Requirements.
      The
      Company will (i) cause its Common Stock to continue to be registered under
      Section 12(b) or 12(g) of the 1934 Act, (ii) comply in all respects with its
      reporting and filing obligations under the 1934 Act, (iii) comply with all
      reporting requirements that are applicable to an issuer with a class of shares
      registered pursuant to Section 12(b) or 12(g) of the 1934 Act, as applicable,
      and (iv) comply with all requirements related to any registration statement
      filed pursuant to this Agreement. The Company will not take any action or file
      any document (whether or not permitted by the 1933 Act or the 1934 Act or the
      rules thereunder) to terminate or suspend such registration or to terminate
      or
      suspend its reporting and filing obligations under said acts. Until the earlier
      of the resale of the Underlying Shares by each Purchaser or at least two (2)
      years after the Warrants have been exercised, the Company will use its best
      efforts to continue the listing or quotation of the Common Stock on the
      Principal Market and will comply in all respects with the Company’s reporting,
      filing and other obligations under the bylaws or rules of the Principal
      Market.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (e) Use
      of
      Proceeds.
      The
      Purchase Price will be used by the Company for general corporate purposes,
      including working capital. 

     

    (f) Reservation
      of Common Stock.
      The
      Company undertakes to reserve from its authorized but unissued common stock,
      at
      all times that Warrants remain outstanding, a number of common shares equal
      to
      the amount of Underlying Shares issuable upon exercise of the Warrants.
On
      or
      prior to the Closing Date, the Company shall execute and deliver irrevocable
      written instructions to the transfer agent for its Common Stock (the
“Transfer
      Agent”),
      and
      provide each Purchaser with a copy thereof, directing the Transfer Agent (i)
      to
      issue certificates representing Warrant Shares upon exercise of the Warrants
      and
      (ii) to deliver such certificates to such Purchaser no later than the close
      of
      business on the third (3rd) business day following the related date of
      conversion or exercise, as the case may be. 

     

    (g) Taxes.
      The
      Company will promptly pay and discharge, or cause to be paid and discharged,
      when due and payable, all lawful taxes, assessments and governmental charges
      or
      levies imposed upon the income, profits, property or business of the Company;
      provided, however, that any such tax, assessment, charge or levy need not be
      paid if the validity thereof shall currently be contested in good faith by
      appropriate proceedings and if the Company shall have set aside on its books
      adequate reserves with respect thereto, and provided, further, that the Company
      will pay all such taxes, assessments, charges or levies forthwith upon the
      commencement of proceedings to foreclose any lien which may have attached as
      security therefore.

     

    (h) Insurance.
      The
      Company is insured by insurers of recognized financial responsibility against
      such losses and risks and in such amounts as are prudent and customary in the
      businesses in which the Company and each subsidiary is engaged.  Neither
      the Company nor any subsidiary has any reason to believe that it will not be
      able to renew its existing insurance coverage as and when such coverage expires
      or to obtain similar coverage from similar insurers as may be necessary to
      continue its business without a significant increase in cost. The Company will
      keep its assets which are of an insurable character insured by financially
      sound
      and reputable insurers against loss or damage by fire, explosion and other
      risks
      customarily insured against by companies in the Company’s line of business, in
      amounts sufficient to prevent the Company from becoming a co-insurer and not
      in
      any event less than 100% of the insurable value of the property insured; and
      the
      Company will maintain, with financially sound and reputable insurers, insurance
      against other hazards and risks and liability to persons and property to the
      extent and in the manner customary for companies in similar businesses similarly
      situated and to the extent available on commercially reasonable
      terms.

     

    (i) Books
      and Records.
      The
      Company will keep true records and books of account in which full, true and
      correct entries will be made of all dealings or transactions in relation to
      its
      business and affairs in accordance with generally accepted accounting principles
      applied on a consistent basis.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (j) Governmental
      Authorities.
      The
      Company shall duly observe and conform in all material respects to all valid
      requirements of governmental authorities relating to the conduct of its business
      or to its properties or assets.

     

    (k) Good
      Standing; Stockholder Information.
      The
      Company and its Subsidiaries will maintain its corporate existence in good
      standing and provide each Purchaser with copies of all materials sent to its
      stockholders, in each such case at the same time as such materials are delivered
      to such stockholders.

     

    (l) Properties;
      Operations.
      The
      Company will keep its properties in good repair, working order and condition,
      reasonable wear and tear excepted, and from time to time make all needful and
      proper repairs, renewals, replacements, additions and improvements thereto;
      and
      the Company will at all times comply with each provision of all leases to which
      it is a party or under which it occupies property if the breach of such material
      provision could reasonably be expected to have a material adverse effect. The
      Company will further comply with all agreements, documents and instruments
      binding on it or affecting its business, including, without limitation, all
      material contracts, except for instances of noncompliance that would not
      reasonably be expected to have, individually or in the aggregate, a Material
      Adverse Effect. The Company shall maintain in full force and effect all rights
      and licenses necessary to conduct its business and to use Intellectual Property
      owned or possessed by it that is reasonably necessary to the conduct of its
      business. The
      Company shall refrain from taking any action or entering into any arrangement
      which in any way materially and adversely affects the provisions of this
      Agreement or any other Transaction Agreement.

     

    (m) Confidentiality.
      The
      Company agrees that it will not disclose publicly or privately the identity
      of
      the Purchasers unless expressly agreed to in writing by a Purchaser or only
      to
      the extent required by law; provided, however, the Purchasers consent to being
      named in the 8-K filed by the Company in connection with the sale of the
      Securities. 

     

    (n) Transactions
      with Affiliates.
      Any
      transaction or arrangement between it or any of its Subsidiaries and any
      Affiliate or employee of the Company or any of its Subsidiaries shall be
      effected only on an arms’ length basis and shall be approved by the Board of
      Directors, including a majority of the Company’s directors not having an
      interest in such transaction.

    

    11. Indemnification
      of Purchasers.
      The
      Company will indemnify and hold each Purchaser and its directors, managers,
      officers, shareholders, members, partners, employees and agents (each, a
“Purchaser
      Party”)
      harmless from any and all losses, liabilities, obligations, claims,
      contingencies, damages, costs and expenses, including all judgments, amounts
      paid in settlements, court costs and reasonable attorneys’ fees and costs of
      investigation that any such Purchaser Party may suffer or incur as a result
      of
      or relating to (a) any breach of any of the representations, warranties,
      covenants or agreements made by the Company in this Agreement or in the other
      Transaction Agreements or (b) any action instituted against a Purchaser, or
      any
      of them or their respective Affiliates, by any stockholder of the Company who
      is
      not an Affiliate of such Purchaser, with respect to any of the transactions
      contemplated by the Transaction Agreements (unless such action is based upon
      a
      breach by such Purchaser of its representations, warranties or covenants under
      the Transaction Agreements or any agreements or understandings such Purchaser
      may have with any such stockholder or any violations by such Purchaser of state
      or federal securities laws or any conduct by such Purchaser which constitutes
      fraud, gross negligence, willful misconduct or malfeasance).  If any action
      shall be brought against any Purchaser Party in respect of which indemnity
      may
      be sought pursuant to this Agreement, such Purchaser Party shall promptly notify
      the Company in writing, and the Company shall have the right to assume the
      defense thereof with counsel of its own choosing and to control any settlement
      of the claim; provided,
      however,
      that
      the Company will not settle any claim unless it first obtains the consent of
      the
      relevant Purchaser Parties, which consent shall not be unreasonably withheld
      if
      such settlement (i) does not require the Purchaser Parties to make any payment
      that is not indemnified under this Agreement, (ii) does not impose any
      non-financial obligations on the Purchaser Parties and (iii) does not require
      an
      acknowledgment of wrongdoing on the part of the Purchaser Parties.  Any
      Purchaser Party shall have the right to employ separate counsel in any such
      action and participate in the defense thereof, but the fees and expenses of
      such
      counsel shall be at the expense of such Purchaser Party except to the extent
      that (i) the employment thereof has been specifically authorized by the Company
      in writing, (ii) the Company has failed after a reasonable period of time to
      assume such defense and to employ counsel or (iii) in such action there is,
      in
      the reasonable opinion of such separate counsel, a material conflict on any
      material issue between the position of the Company and the position of such
      Purchaser Party.  The Company will not be liable to any Purchaser Party
      under this Agreement (i) for any settlement by an Purchaser Party effected
      without the Company’s prior written consent, which shall not be unreasonably
      withheld or delayed (it being agreed that it shall not be unreasonable for
      the
      Company to withhold or delay such consent if the Company (x) has acknowledged
      in
      writing its obligation to indemnify such Purchaser Party with respect to such
      matter, (y) the Company has assumed and is actively and in good faith pursuing
      the defense of such matter as herein provided, and (z) provided to such
      Purchaser Party reasonably acceptable evidence that the Company is able to
      comply with its indemnification obligations hereunder); or (ii) to the extent,
      but only to the extent that a loss, claim, damage or liability is attributable
      to such Purchaser Party’s wrongful actions or omissions, or gross negligence or
      to such Purchaser Party’s breach of any of the representations, warranties,
      covenants or agreements made by such Purchaser in this Agreement or in the
      other
      Transaction Agreements.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    12. Miscellaneous.

     

    (a) Notices.
      All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be in writing and, unless otherwise
      specified herein, shall be (i) personally served, (ii) deposited in the mail,
      registered or certified, return receipt requested, postage prepaid, (iii)
      delivered by reputable air courier service with charges prepaid, or (iv)
      transmitted by hand delivery, telegram, or facsimile, addressed as set forth
      below or to such other address as such party shall have specified most recently
      by written notice. Any notice or other communication required or permitted
      to be
      given hereunder shall be deemed effective (a) upon hand delivery or delivery
      by
      facsimile, with accurate confirmation generated by the transmitting facsimile
      machine, at the address or number designated below (if delivered on a business
      day during normal business hours where such notice is to be received), or the
      first business day following such delivery (if delivered other than on a
      business day during normal business hours where such notice is to be received)
      or (b) on the second business day following the date of mailing by express
      courier service, fully prepaid, addressed to such address, or upon actual
      receipt of such mailing, whichever shall first occur. The addresses for such
      communications shall be: (i) if to the Company, to: AskMeNow, Inc., 26 Executive
      Park, Suite 250, Irvine, CA 92614; telecopier number: (949) 861-2591, with
      a
      copy by telecopier only to: Phillips Nizer LLP, 666 Fifth Avenue, New York,
      NY
      10103, telecopier number: (212) 262-5152, Attn: Elliot Lutzker, and (ii) if
      to
      the Purchasers, to: the address and telecopier number indicated on the signature
      page hereto.

     

    (b) Entire
      Agreement; Amendment; Waivers; Assignment.
      This
      Agreement and other Transaction Agreements delivered in connection herewith
      represent the entire agreement between the parties hereto with respect to the
      subject matter hereof and may be amended only by a writing executed by the
      Company and the Purchaser holding a majority of the Underlying Shares.
      No
      provision hereof may be waived other than by a written instrument signed by
      the
      party against whom enforcement of any such waiver is sought. Any waver or
      consent shall be effective only in the specific instance and for the specific
      purpose for which given. Neither
      the Company nor the Purchasers have relied on any representations not contained
      or referred to in this Agreement and the documents delivered herewith. No right
      or obligation of either party shall be assigned by that party without prior
      notice to and the written consent of the other party; however, each
      Purchaser may assign its rights and obligations hereunder, in connection with
      any private sale or transfer of Notes or Warrants in accordance with the terms
      hereof, as long as, as a condition precedent to such transfer, the transferee
      executes an acknowledgment agreeing to be bound by the applicable provisions
      of
      this Agreement, in which case the term “Purchaser”
shall
      be deemed to refer to such transferee as though such transferee were an original
      signatory hereto.
      The
      terms
      and conditions of this Agreement shall inure to the benefit of and be binding
      upon the respective successors and permitted assigns of the
      parties.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (c) Execution.
      This
      Agreement may be executed by facsimile transmission, and in counterparts, each
      of which will be deemed an original.

     

    (d) Law
      Governing this Agreement.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of California without regard to principles of conflicts of laws. Any
      action brought by either party against the other concerning the transactions
      contemplated by this Agreement shall be brought only in the state courts of
      California or in the federal courts located in the state of California. Both
      parties and the individuals executing this Agreement and other agreements on
      behalf of the Company agree to submit to the jurisdiction of such courts and
      waive trial by jury. In the event that any provision of this Agreement or any
      other agreement delivered in connection herewith 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 any agreement.

     

    (e) Specific
      Enforcement, Consent to Jurisdiction.
      The
      Company and Purchaser acknowledge and agree that irreparable damage would occur
      in the event that any of the provisions of this Agreement were not performed
      in
      accordance with their specific terms or were otherwise breached. It is
      accordingly agreed that the parties shall be entitled to an injunction or
      injunctions to prevent or cure breaches of the provisions of this Agreement
      and
      to enforce specifically the terms and provisions hereof or thereof, this being
      in addition to any other remedy to which any of them may be entitled by law
      or
      equity. Subject to this Section 13(e) hereof, each of the Company and Purchaser
      hereby waives, and agrees not to assert in any such suit, action or proceeding,
      any claim that it is not personally subject to the jurisdiction of such court,
      that the suit, action or proceeding is brought in an inconvenient forum or
      that
      the venue of the suit, action or proceeding is improper. Nothing in this Section
      shall affect or limit any right to serve process in any other manner permitted
      by law.

     

    (f) Fees
      and Expenses.
      Each
      Purchaser and the Company shall pay the fees and expenses of its advisers,
      counsel, accountants and other experts, if any, and all other expenses incurred
      by such party incident to the negotiation, preparation, execution, delivery
      and
      performance of this Agreement and the Transaction Agreements. 

    

    (g) Survival;
      Severability.
      The
      representations, warranties, covenants and indemnities made by the parties
      herein and in the other Transaction Agreements shall survive the Closing
      notwithstanding any due diligence investigation made by or on behalf of the
      party seeking to rely thereon. In the event that any provision of this Agreement
      becomes or is declared by a court of competent jurisdiction to be illegal,
      unenforceable or void, this Agreement shall continue in full force and effect
      without said provision; provided,
      that in
      such case the parties shall negotiate in good faith to replace such provision
      with a new provision which is not illegal, unenforceable or void, as long as
      such new provision does not materially change the economic benefits of this
      Agreement to the parties.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    (h) Independent
      Nature of Purchaser’s Obligations and Rights.
      The
      obligations of each Purchaser hereunder are several and not joint with the
      obligations of the other Purchasers hereunder, and no Purchaser shall be
      responsible in any way for the performance of the obligations of any other
      Purchaser hereunder. Nothing contained herein or in any other Transaction
      Agreement, and no action taken by any Purchaser pursuant hereto or thereto,
      shall be deemed to constitute any Purchasers as a partnership, an association,
      a
      joint venture or any other kind of entity, or a “group” as described in Section
      13(d) of the Exchange Act, or create a presumption that any Investors are in
      any
      way acting in concert with respect to such obligations or the transactions
      contemplated by this Agreement. Each
      Purchaser has been represented by its own separate counsel in connection with
      the transactions contemplated hereby, shall be entitled to protect and enforce
      its rights, including without limitation rights arising out of this Agreement
      or
      the other Transaction Agreements, individually, and shall not be required to
      join any other Purchaser as an additional party in any proceeding for such
      purpose.

    

       (i) Limited
      Liability.
      Notwithstanding anything herein to the contrary, the Company acknowledges and
      agrees that the liability of a Purchaser rising directly or indirectly, under
      any Transaction Agreement of any and every nature whatsoever shall be satisfied
      solely out of the assets of such Purchaser, and that no trustee, officer, other
      investment vehicle or any other Affiliate of such Purchaser or any investor,
      shareholder or holder of shares of beneficial interest of such a Purchaser
      shall
      be personally liable for any liabilities of such Purchaser.

     

    13. Certain
      Definitions.
      When
      used
      herein, the following terms shall have the respective meanings
      indicated: 

    

    “Affiliate”
means
      any Person that, directly or indirectly through one or more intermediaries,
      controls or is controlled by or is under common control with a Person, as such
      terms are used in and construed under Rule 144.

    

    “Business
      Day”
      means
      any
      day other
      than a Saturday, a Sunday or a day on which the New York Stock Exchange or
      commercial banks located in Los Angeles, California are authorized or permitted
      by law to close.

    

    “Debt”
means,
      as to any Person at any time: (a) all indebtedness, liabilities and obligations
      of such Person for borrowed money; (b) all indebtedness, liabilities and
      obligations of such Person to pay the deferred purchase price of Property or
      services, except trade accounts payable of such Person arising in the ordinary
      course of business that are not past due by more than 60 days; (c) all capital
      lease obligations of such Person; (d) all indebtedness, liabilities and
      obligations of others guaranteed by such Person; (e) all indebtedness,
      liabilities and obligations secured by a Lien existing on Property owned by
      such
      Person, whether or not the indebtedness, liabilities or obligations secured
      thereby have been assumed by such Person or are non-recourse to such Person;
      (f)
      all reimbursement obligations of such Person (whether contingent or otherwise)
      in respect of letters of credit, bankers’ acceptances, surety or other bonds and
      similar instruments; and (g) all indebtedness, liabilities and obligations
      of
      such Person to redeem or retire shares of capital stock of such Person.

    

    “Intellectual
      Property”
means
      any U.S. or foreign patents, patent rights, patent applications, trademarks,
      trade names, service marks, brand names, logos and other trade designations
      (including unregistered names and marks), trademark and service mark
      registrations and applications, copyrights and copyright registrations and
      applications, inventions, invention disclosures, protected formulae,
      formulations, processes, methods, trade secrets, computer software, computer
      programs and source codes, manufacturing research and similar technical
      information, engineering know-how, customer and supplier information, assembly
      and test data drawings or royalty rights.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    “Key
      Person”
means
      the executive officers of the Company.

    

    “Lien”
means
      any lien, charge, encumbrance, security interest, right of first refusal or
      other restrictions of any kind.

    

    “Permitted
      Debt”
means
      the following:

    

    (a) Debt
      that
      is outstanding on the Closing Date and disclosed in the Reports; 

    

    (b) Non-convertible
      Debt consisting of revolving working capital credit facilities obtained from
      commercial lending institutions on commercially reasonable terms and secured
      only by the Company’s and/or its Subsidiaries’ accounts receivable and/or
      inventory; or

    

    (c) Debt
      consisting of capitalized lease obligations and purchase money indebtedness
      incurred in connection with acquisition of capital assets and obligations under
      sale-leaseback or similar arrangements provided in each case that such
      obligations are not secured by Liens on any assets of the Company or its
      Subsidiaries other than the assets so leased. 

    

    “Permitted
      Liens”
means
      the following:

    

       (a) encumbrances
      consisting of easements, rights-of-way, zoning restrictions or other
      restrictions on the use of real property or imperfections to title that do
      not
      (individually or in the aggregate) materially impair the ability of the Company
      or any of its Subsidiaries to use such Property in its businesses, and none
      of
      which is violated in any material respect by existing or proposed structures
      or
      land use;

    

       (b) Liens
      for
      taxes, assessments or other governmental charges that are not delinquent or
      which are being contested in good faith by appropriate proceedings, which
      proceedings have the effect of preventing the forfeiture or sale of the Property
      subject to such Liens, and for which adequate reserves (as determined in
      accordance with GAAP) have been established; and

    

       (c) Liens
      of
      mechanics, materialmen, warehousemen, carriers, landlords or other similar
      statutory Liens securing obligations that are not yet due and are incurred
      in
      the ordinary course of business or which are being contested in good faith
      by
      appropriate proceedings, which proceedings have the effect of preventing the
      forfeiture or sale of the Property subject to such Liens, for which adequate
      reserves (as determined in accordance with GAAP) have been established;

     

    (d) any
      interest or title of a lessor under any capitalized lease obligation provided
      that such Liens do not extend to any property or assets which is not leased
      property subject to such capitalized lease obligation; 

    

    (e)
       purchase
      money Liens to finance property or assets of the Company or any Subsidiary
      of
      the Company acquired in the ordinary course of business; provided,
      however,
      that
      (A) the related purchase money Debt shall not exceed the cost of such property
      or assets and (B) the Lien securing such purchase money Debt shall be created
      within ten (10) days of such acquisition, construction or improvement;
      and

    

    (f)
       Liens
      upon specific items of inventory or other goods and proceeds of any Person
      securing such Person's obligations in respect of bankers’ acceptances issued or
      created for the account of such Person to facilitate the purchase, shipment
      or
      storage of such inventory or other goods.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    “Person”
means
      any individual, corporation, trust, association, company, partnership, joint
      venture, limited liability company, joint stock company, Governmental Authority
      or other entity. 

    

    “Senior
      Securities”
means
      (i) any Debt issued or assumed by the Company and (ii) any securities of the
      Company which by their terms have a preference over the Notes in respect of
      payment of dividends, redemption or distribution upon liquidation. 

    

    “Subsidiary”
means,
      with respect to the Company, any "significant subsidiary" as defined in Rule
      1-02(w) of the Regulation S-X promulgated by the Commission under the Exchange
      Act. 

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    SIGNATURE
      PAGE TO SUBSCRIPTION AGREEMENT (A)

     

    Please
      acknowledge your acceptance of the foregoing Subscription Agreement by signing
      and returning a copy to the undersigned whereupon it shall become a binding
      agreement between us.

     

    
      	 	 	 
	 	
              ASKMENOW,
                INC.

            
	 	
              A
                Delaware corporation

            
	 
 	 
 	 
 
	
            	By:  	
               

              
                
Name:
                Darryl Cohen

            
	 	 	
              Title:
                CEO

            
	 	 	 
	 	
              Dated:
                _______ __, 2007

            

    

     

    

      
        	
                PURCHASER

              	
                PURCHASE
                  PRICE

              	
                WARRANTS

              
	
                 

                ________________________________________

                (Signature)

                 

                Name
                  and Address

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