Document:

Unassociated Document

    PROMISSORY
      NOTE

    

    
      	$1,100,000	
              August
                26,
                2004

            

    

     

    

    Platinum
      IT Consulting, Inc., a Delaware corporation (the "Maker"), with an address
      at c/o Anslow & Jaclin, LLP, 195
      Route
      9, Suite 204, Manalapan, NJ 07726, for value received, hereby promises to
pay
      to
      the order of Parker, Clark Data Processing, Inc., a New York corporation
("Parker")
      and Platinum LT. Consulting Inc., a New York corporation
      ("Platinum",
      together
      with Parker, the "Payees") or their designees in accordance with Schedule
A
      or, if
      different, the Payees' written
      instructions, the principal sum of One Million One Hundred Thousand Dollars
      and No Cents ($1,100,000), together with
      interest thereon accruing at a rate equal to ten percent (10%) per annum until
      all
      principal under this Note is paid in full. All
      principal and interest on this Note shall be payable in accordance with the
      payment
      schedule described on Schedule
      B and
      all
      amounts owing under this Note shall be
      payable in full on
      August 26,
      2008 (the "Maturity Date") or earlier, as hereinafter specified.
      Notwithstanding the foregoing, interest on
      all
      amounts owing under this Note after the Maturity Date or the occurrence
      of an Event of Default (as hereinafter defined), including, without
      limitation, after the occurrence of an Event of Default (as
      hereinafter defined) based on the filing of
      any
      petition in bankruptcy, or the commencement of any insolvency, reorganization
      or like proceeding (whether or not a claim for post filig
      or
      post-petition interest is allowed in such proceeding), shall
      accrue at a rate equal to the lesser of (a) the maximum rate permitted by
      applicable law
      and
      (b) fifteen percent (15%) per annum
      (the "Default Rate"). Interest on the principal balance of this Note from time
      to time
      outstanding shall be computed on the
      basis
      of a 360 day yearand
      actual days elapsed. If any payment of principal or interest or any other amount
      under this Note
      becomes
      due on a day other than a Business Day, such payment shall
      be
      made
      on the next succeeding Business Day, and such extensions
      shall be included in computing interest in connection with such payments.
For
      purposes of this Note, a "Business Day" shall mean any day, other than
      Saturdays, Sundays or other days on which commercial
      banks are required by law to be closed
      in
      the State of New York. All payments made by Maker under this Note shall
      be
      in immediately available funds and U.S.
      dollars. All interest accruing under this Note at the Default Rate shall be
      payable on
      demand. 

    

    Reference
      is made to the Security Agreement; dated as of even date herewith (as now or
      hereafter
      amended, restated, supplemented
      or otherwise modified from
      time
      to
      time, the "Security Agreement"), by Maker and Global IT Holdings, Inc.,
a
      Nevada
      corporation ("Parent"), in favor of Parker, as agent (the "Agent") for the
      Payees, which,
      among other things, secures all of
      Maker's obligations under this Note. Capitalized
      terms and phrases used in this Note without definition in this Note shall
      have
      the
      respective meanings set forth in the Security Agreement.

    

    The
      principal balance of this Note may be prepaid in whole or in
      part,
      at
      any time and from time to time, without premium
      or penalty, together with all accrued interest on the principal balance so
      prepaid.

    

    The
      principal balance of this Note shall, to the extent an adjustment is so provided
      for, be adjusted as set forth in Section
      13(a)(2) and (3) of the Asset Purchase Agreement dated as of May 26, 2004
(as
      now
      or hereafter amended, restated, supplemented
      or otherwise modified from time to time, the "Purchase Agreement") between
      Maker, Payees and Parent. Any such
      adjustment, if resulting in any increased Unadjusted Purchase Price, as
described
      in
      the
      Purchase Agreement, shall increase each
      remaining principal
      installment identified on Schedule B by an equal amount (e.g.,
      if
      the aggregate increase is by $100,000 and
      there
      are 4 remaining installments, each installment shall be increased by
      $25,000) and any such adjustment resulting in a decreased
      Unadjusted Purchase Price, as described in
      the
      Purchase Agreement, shall reduce each remaining installment by an equal
      amount (e.g,
      if
      the
      decrease is by $200,000 and there are 4 remaining installments, each
installment
      shall be decreased by $50,000)
      and interest shall accrue on such revised principal balance from the
date
      of
the
      adjustment until payment in full to the same
      extent as
      any
      other
      principal of this Note. No previously accrued and paid or unpaid interest
      or principal prior
      to
      such adjustment
      shall
      under any circumstances be refundable, even if the adjustment reduces the then
      principal
      balance of this Note, it
      being
      agreed that any such adjustment shall only be deemed prospective. At
      the
      Payees' request, Maker shall promptly provide
      Payees with a revised Note reflecting any adjustment to the payment schedule
      of
      this
      Note, as contemplated by this paragraph
      and Section 13(a)(2) and (3) of the Purchase Agreement, but the failure
      to execute such revised Note shall not adversely
      affect Payees' right to
      be
      paid all required amounts. The foregoing shall not limit or affect Payees'
      rights
      following an
      Event
      of Default (as hereinafter defined). 

    

    All
      prepayments and the other payments under this Note shall be applied
      first to the Payee's costs of collection, including,
      without limitation, attorneys' fees and expenses, then to accrued but
      unpaid interest, and then to the unpaid principal balance,
      until all principal and accrued interest under this Note have been paid in
      full,
      and then to any other obligations under this
      Note
      in such order as shall be
      selected by Payees.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    If
      any of
      the following events, acts or circumstances shall occur for any reason
      whatsoever (and whether such occurrence
      shall be voluntary or involuntary or come about or be affected by operation
      of
      law or otherwise) (each, an "Event of Default")

    

    1.
      if
      the
      Maker shall fail to make any payment required under this Note within five (5)
      days of when due; or

    

    2.
      if
      any
      representation or, warranty made by the Maker or' Parent in the Security
      Agreement, the Purchase Agreement
      or any Ancillary Document shall have been untrue or incorrect as of the time
      made or furnished; or

    

    3.
      if the
      Maker or Parent fails to perform or observe any of its covenants or agreements
      contained in this Note, the Security Agreement, the Purchase Agreement or any
      Ancillary Document (except for nonperformance described in Event of Default
      1 or 2 above) within 10 days of when performance is required by the applicable
      documents; or

    

    4.
      if
      the
      Maker or Parent shall (a) be dissolved, (b) apply for or consent to the
      appointment of, or the taking of possession
      by, a receiver, custodian, trustee or liquidator of itself of all or a
      substantial part of its property, (c) admit in writing
      its inability, or be
      generally unable, to pay its
      debts
as such debts
      become due, (d) make a general assignmenf foT the benefit
      o
      its of h s-creditors,
      (e) commence a voTuntary'cise under
      Title
      I I
      of the United States Bankruptcy Code or any successor
      thereto (the `Bankruptcy Code"), any state bankruptcy law or any law similar
      to
      any of the foregoing, (f) file a petition
      seeking to take advantage of any law relating to bankruptcy, insolvency,
      reorganization, winding up, or composition or
      readjustment of debts, (g) fail to controvert in a timely and appropriate
      manner, or acquiesce in writing to, any petition filed against Maker or Parent
      in an involuntary case
      under the Bankruptcy Code, any state bankruptcy law or any law with a
purpose
      or otherwise similar to any of the foregoing, or (h))
      take
      any
      action for the purpose of effecting any of the foregoing; or

    

    5.
      if
      a
      proceeding or case shall be commenced in any court of competent jurisdiction,
      seeking (a) the liquidation, reorganization,
      dissolution, winding-up, or the composition or readjustment of debts of the
      Maker or Parent, or (b) the appointment
      of a trustee, receiver, custodian, liquidator or the like for Maker or Parent
      under any law relating to bankruptcy,
      insolvency, reorganization, winding-up, or composition or adjustment of debts,
      or a warrant of attachment, execution
      or similar process shall be issued against property of the Maker or Parent
      and
      such proceeding, case, warrant or process shall
      continue
      undismissed, or
      any
order,
      judgment or decree approving or ordering any of the foregoing shall be
entered
      and continue unstayed and in effect,
      for
      a
      period of thirty (30) days or more days, or any order for relief against the
      Maker
      or
      Parent shall be entered in an involuntary case under the Bankruptcy Code, any
      state bankruptcy law or any law similar to any of the foregoing; or

    

    6.
      if
      the
      Parent shall cease to" own at least 51% of the issued and outstanding stock
      of
      Maker; or

    

    7.
      if
      the
      Security Agreement shall be invalidated or cease to be in full force and effect
      or cease to create a valid and
      perfected lien on any collateral granted or purported to be granted thereby
      or
      any Person shall terminate or send a notice or
      otherwise attempt to terminate any such document; or

    

    8.
      if
      the
      Maker or the Parent shall fail to make any payment in respect of any Debt (with
      respect to which the then outstanding
      principal amount is in excess of one hundred thousand dollars ($100,000)),
      when
      and as the same shall become due
      and
      payable (after giving effect to any applicable grace period); or

    

    9.
      if
      any
      event or condition occurs that results in any Debt of Maker or the Parent (with
      respect to which the then outstanding
      principal amount is in excess of one hundred thousand dollars ($100,000))
      becoming due prior to its scheduled maturity or that enables or permits (after
      the passage of any applicable grace period) the holder or holders of any such
      Debt or any trustee or agent on its or their behalf to cause any such Debt
      to
      become due, or to require the prepayment, repurchase, redemption
      or defeasance of any amount constituting such Debt, prior to its scheduled
      maturity or prepayment date, as applicable
      (in each case after giving effect to any applicable grace period), or if any
      "event of default" or "default" occurs under
      any
      document evidencing or relating to Debt of Maker or Parent or any other
      factoring or financing arrangement of any
      kind
      of Maker or Parent; or

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    10.
      if at
      any time, a judgment in excess of $10,000 shall be rendered against Maker
or
      the
      Parent; provided, however, that
      if
      such Maker or Parent appeals said judgment and (A) such appeal
      (1) is timely filed, (2) is
      diligently
      pursued,
      (3) is permitted by law and (4) has the effect of staying any action on such
      judgment, (B)
      such
      Maker or the Parent posts
      any
      security required by law or reasonably required by Agent in respect of such
      judgment, (C)
      such
      judgment does not subject
      Agent or either of Payees or the assets of Maker or the Parent to any civil
      or
      criminal penalties or risk of forfeiture and
      (D)
      such judgment is not a Lien on any collateral provided to secure this Note,
      then
      it
      shall not be an Event of Default hereunder
      until such judgment is final and non-appealable;

    

    11.
      if
      Maker shall fail to pay when due any payroll taxes or pension or profit sharing
      contributions;
      or 

     

    12.
      if
      any amount is not paid when due or required in respect of or constituting the
      Initial Paid in
      Capital;

    

    then,
      and
      upon the occurrence of
      any
      Event
      of Default, the Payees and/or the Agent may, without notice, presentment, demand
      or
      protest, all of which are hereby
      waived by the Maker, take any, certain, or all of the following actions:
(1)
      declare the principal
      of
      and
      any accrued interest and other amounts in respect of this Note to be due and
      payable, whereupon
      the same shall become
      accelerated
      and forthwith
      due
      and
payable
      without
      presentment; demand, protest or other notice of any kind, all of
      which
      are
      hereby
      waived by the Maker,
      (2) proceed
      to enforce or cause to be enforced any remedies provided under the Security
      Agreement, this Note and/or any Ancillary Documents, and (3) exercise
      any other
      remedies available
      at
      law or
      in equity,
      either by
      suit
in
      equity
      or
      by
      action at law, or both, whether far specific performance of any covenant or
      other agreement
      contained
      in this Note, the Security Agreement and/or any Ancillary Documents or in aid
      of
      the
      exercise of any power granted in
      this
      Note, the Security Agreement and/or any Ancillary
      Documents;
      provided, that upon the occurrence of any Event of Default
      referred to in Paragraph 4 or 5 in the Event of Default section of this Note,
      then
      automatically, without notice, demand or
      any
      other act by the Payees, the principal and any
      accrued
      interest in respect of this Note, and all other amounts payable under
      this Note shall become immediately
      due and payable without presentment, demand, protest or other notice
of
      any
      kind, all of
      which
      are hereby expressly waived by the Maker. No
      remedy
      conferred in this Note, the Security Agreement and/or any Ancillary
      Documents upon Payees is intended to be exclusive of any other remedy,
and
      each
      and every such remedy shall be cumulative
      and shall be in addition to every other remedy conferred herein or now or
      hereinafter existing
      at law or in equity
      or
by
      statute or otherwise. Nothing contained in this Note shall be construed to
      extend any payment date
      beyond the Maturity Date or
      require any notice for payment on the Maturity Date or any other installment
      payment date.

    

    The
      failure by the Payees at any time to exercise any right shall not be deemed
      a
      waiver
      thereof; nor shall it bar the exercise
      of any such right at a later date. Each and
      every
      right and remedy of the Payees may be exercised by the Payees from time to
      time
      and as often as may be necessary in the sole and absolute discretion
of
      the
      Payees. Any right or remedy of Payees under
      this Note may be exercised by either or both Payees.

    

    Except
      as
      otherwise
      specified pursuant to this Note, any notice, request, information or
      other
      document to be given pursuant
      to this Note, shall be in writing and shall be given by hand delivery,
      telecopier, certified
      or registered U.S. mail
      or
      a
reputable
      overnight courier service which provides evidence of its receipt as part
of
      its
      service, as follows:

    

    
      	 	If to Maker to:	 	
              c/o Anslow & Jaclin, LLP 

              195
                Route 9, Suite 204 

              Manalapan,
                NJ 07726 

              Attention:
                Greg Jaclin, Esq.

            
	 	 	 	 
	 	If to Payees:	 	
              c/o
                Tannenbaum Helpem Syracuse & Hirschtritt LLP 

              900
                Third Avenue 

              New
                York, NY 10022-4775 

              Attention:
                Joel A Klarreich, Esq. 

              Telecopier
                No.: (212) 371-1084

            

    

    

    Maker
      or
      Payees may change the address or telecopier number towhich notices hereunder
      are
      to be
      sent to it by giving written notice of such change as herein provided.
Any
      notice given hereunder shall be deemed given on the date of hand delivery,
      transmission by telecopier, deposit with the U.S. postal service or delivery
      to
      a
      courier service, as
      appropriate.

    Maker
      hereby consents to the non-exclusive jurisdiction of any state or federal court
      located within the state of New
      York
      or
      New Jersey. Maker waives any objection that it may have to the conduct of
any
      action
      or
      proceeding in any such court
      based on improper venue or forum non conveniens, waives personal service of
      any
      and all process upon it, and consents that all service of process may be made
      by
      mail or courier service directed to it at the address set forth in this Note
      and
      that service so made shall be deemed to be completed upon the earlier of actual
      receipt or ten (10) days after the same shall have been
      posted or dispatched. Nothing contained in this Section shall affect
the
      right
      of
      Payee to enforce any judgment obtained in
      a New
      York court in any other court or serve legal process in any other manner
      permitted by law.

    
 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
       

      EACH
        OF THE MAKER AND
        PAYEES HEREBY WAIVES, TO
        THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY
        HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION DIRECTLY OR
        INDIRECTLY ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, THIS NOTE, IT BEING
        AGREED THAT ALL SUCH
        TRIALS SHALL BE CONDUCTED SOLELY BY A JUDGE.
        EACH OF THE MAKER AND
        PAYEES CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY
        OF EITHER HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT
        THE OTHER WOULD NOT, IN THE
        EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS.
        EACH OF THE MAKER AND PAYEES AGREES AND
ACKNOWLEDGES THAT IT
        HAS BEEN REPRESENTED BY INDEPENDENT
        COUNSEL IN CONNECTION WITH THIS NOTE OR
BEEN ADVISED THAT IT
        SHOULD BE REPRESENTED BY
INDEPENDENT COUNSEL IN CONNECTION WITH THIS NOTE. IF MAKER
        OR PAYEES HAS DECIDED NOT TO BE REPRESENTED BY
        INDEPENDENT COUNSEL IN CONNECTION WITH THIS
        NOTE, IT IRREVOCABLY AND FOREVER WAIVES ANY
        AND ALL DEFENSES OR RIGHTS
ARISING OUT OF OR
        RELATED TO SAID
        DECISION.

       

    

    The
      Payees shall not, by any act, delay, omission or otherwise, be deemed
to
      have
      waived any of its rights and/or remedies
      hereunder. No change, amendment, modification, termination, waiver, or
      discharge, in whole or in part, of any provision
      of this Note shall be effective unless in
      writing
      and signed by the Payees, and with respect to a waiver or discharge so
given
      by
      the Payees, shall be effective only in the specific instance in which given.
      The
      Maker acknowledges that this Note and the
      Maker's obligations under this Note are, and shall at all times continue
to
      be,
      absolute and unconditional in all respects, and shall
      at
      all times be valid and enforceable. To
      the
      extent permitted by applicable law, the Maker hereby absolutely,unconditionally
      and
irrevocably forever
      waives any and all right to assert any defense, set-off, offset, counterclaim,
      crossclaim or
      claim
      of any nature whatsoever with respect to
      this
      Note
      or
      the
      Maker's obligations hereunder except as specifically permitted
      by Section 4.7(i) of the Purchase Agreement. Payees, at their discretion, may,
      by written notice to Maker, unilaterally offset
      any of their obligations to
      Maker
      by
      reducing any installments at any time payable under this Note.

    

    In
      the
      event any one or more of the provisions contained in this Note should be
      invalid, illegal or
      unenforceable
      in any respect,
      the validity, legality and enforceability of the remaining provisions contained
      herein shall not in any way be affected or impaired
      thereby.

    

    The
      Maker
      shall pay
      upon
      demand all of Payees' and Agent's costs in
      connection
      with the enforcement or collection of
      this
      Note
      and any of the Ancillary
      Documents,
      whether or not a lawsuit is brought, including, without limitation, reasonable
      attorneys'
      fees and costs. This includes, without limitation, all reasonable attorneys
      fees
      and costs in connection with
      any
      bankruptcy,
      insolvency or other proceedings.

    

    The
      Maker
      hereby waives presentment, demand for payment, protest and notice of dishonor
      in
      connection with the delivery, acceptance, performance, default, or enforcement
      of this Note.

    

    If, at
      any
      time,
      the
      rate of interest under this Note shall be deemed by any competent court of
      law,
      governmental agency,
      or tribunal to exceed the maximum rate of interest permitted by the laws of
      any
      applicable jurisdiction or the rules or regulations
      of any appropriate regulatory authority or agency, then during such time
as
      such
      rate of interest would be deemed excessive,
      that portion of each interest
      payment attributable to that portion of such interest rate that exceeds the
      maximum rate of
      interest so permitted shall be deemed a
      voluntary
      prepayment of principal or, if all principal has been paid, that portion of
      each
      interest payment attributable to that portion
      of such interest rate that exceeds the maximum rate of interest so permitted
      shall
      be
      promptly refunded to Maker.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    The
      term
      "Payees" as used herein shall be deemed to include the successors and assigns
      of
      each Payee. This Note binds
      the
      Maker and
      its
      successors and assigns, although Maker shall have no right to assign, transfer
      or delegate its rights or obligations
      under this Note, and this Note shall inure to the benefit of Payees and their
      successors and assigns and the Agent. This Note is freely assignable by each
      Payee without notice or consent.

    

    This
      Note
      shall be construed in accordance with and governed by the laws of the State
      of
      New York without giving effect
      to
      conflict of law principles.

     

    
      	 	  

    

    

    
      
        
        

      

      
        5Unassociated Document

     

    Exhibit
      4.20

     

    

      THIS
        NOTE
        AND
        THE
        STOCK INTO WHICH IT IS CONVERTIBLE HAVE
        NOT
        BEEN REGISTERED
        UNDER THE SECURITIES ACT
        OF
        1933, AS AMENDED,
        OF THE UNITED STATES
        OF
        AMERICA (THE "ACT") OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
        ("STATE ACT"). THIS
        NOTE
        HAS BEEN ACQUIRED FOR INVESTMENT AND
        NOT
        WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OF DISTRIBUTION THEREOF,
        AND MAY NOT BE
        OFFERED, SOLD, PLEDGED,
        HYPOTHECATED, OR
        OTHERWISE
        TRANSFERRED
        FOR
        VALUE,
        DIRECTLY OR
        INDIRECTLY, IN
        THE
ABSENCE
        OF AN EFFECTIVE REGISTRATION STATEMENT
        UNDER THE ACT AND COMPLIANCE
        WITH APPLICABLE STATE ACTS, OR
        PURSUANT TO AN EXAMPTION FROM
        REGISTRAITON UNDER THE ACT
        AND
        UNDER APPLICABLE STATE ACTS, THE AVAILABILITY
        OF
        WHICH
        ARE ESTABLISHED BY MEANS OF AN
        OPINION
        TO SUCH EFFECT
        IN
        FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY AND RENDERED BY
        LEGAL
        COUNSEL SATISFACTORY TO THE COMPANY.

       

      GLOBAL
        IT HOLDINGS, INC.

      SERIES
        A 6.5% CONVERTIBLE PROMISSORY NOTE

       

      
        	$50,000.00 	
                New
                  York, New York

                
                  August
                    24,
                    2004

                

              

      

       

      
        	
                1. 

              	
                Promise
                  to Pay. FOR
                  VALUE RECEIVED, GLOBAL IT HOLDINGS, INC,
                  a Nevada corporation
                  (the "Company") promises
                  to pay, in lawful money of the United States of America, to the
                  order of
                  Lloyd Glick or assignee (the "Holder"), at
                  New York, NY or at such other place as Holder shall from time to
                  time
                  direct, on or before December 31, 2004,
                  the principal amount of Fifty
                  Thousand Dollars and no cents ($50,000.00) plus interest on the
                  unpaid principal balance thereof
                  at a rate of Six and one-half percent (6.5%) per year from the
                  date hereof
                  until paid
                  in full. Interest
                  on this note shall be computed on a 365/365 simple
                  interest basis, that is, by applying the ratio of the annual interest
                  rate
                  by the number of days in the
                  year times, outstanding principal balance
                  times the actual number of days that the principal balance is outstanding.
                  This
                  Note shall be payable interest-only, in arrears, on the last day
                  of each
                  calendar months, commencing
                  upon the first such date subsequent to the date of execution hereof,
                  and
                  due and payable in
                  full, principal and
                  interest, twenty-four months from the date hereof. At
                  the option of the Holder, the interest payable
                  may be paid in cash or convertible into common stock in
                  accordance with Section 3, herein
                  provided, however, that in no event shall the Holder be entitled
                  to
                  convert this Debenture for
                  a number of shares of Common Stock in excess of that number of
                  shares
                  of
                  Common Stock which,
                  upon giving effect to such conversion, would cause the aggregate
                  number of shares of Common
                  Stock beneficially owned by the Holder and its
                  affiliates to exceed 4.99% of the outstanding shares of the Common
                  Stock
                  following such conversion. All payments shall be applied
                  first to accrued, unpaid interest, next to any collection costs,
                  and
                  the remainder against principal.
                  The Company at its option shall have the right to redeem the Note
                  as set
                  forth
                  below.

              
	 	 
	
                2. 

              	
                Default.
                  The
                  Company shall be in default under this Note upon the occurrence
                  of any
                  of
                  the following
                  events:

              

      

      

      
        	
                2.1

              	
                The
                  Company fails to timely perform any of its obligations under, or
                  otherwise breaches any
                  covenants or warranties of this Note;

              
	 	 
	
                2.2
                  

              	
                Any
                  statement, representation, or warranty made by the Company or its
                  agents
                  to
                  Holder shall prove to have been false or materially misleading
                  when made;
                  and/or,

              
	 	 
	
                2.3
                  

              	
                The
                  Company shall become insolvent, or unable to meet its obligations
                  as
                  they become due,
                  or shall file or have filed against it, voluntarily or involuntarily,
                  a
                  petition under the United
                  States Bankruptcy Code or shall procure or suffer the appointment
                  of
                  a receiver for
                  any substantial portion of its properties, or shall make an assignment
                  for
                  benefit of creditors,
                  or shall initiate or have initiated against it, voluntarily or
                  involuntarily, any act, process,
                  or proceedings under any insolvency law or other statute or law
                  providing
                  for
                  the modifications
                  or adjustment of the rights of
                  creditors.

              

      

       

       

      
        
          
          

        

        
          -1-

          
            

          

        

        
          
          

        

      

      
         

        Upon
          any
          event of default, Holder may declare the entire unpaid principal balance
          of this Note
          and
          all accrued unpaid interest immediately due, without notice, and the Company
          agrees
          to
          pay such amount
          immediately in such event. In
          the
          event
of
          default, the Company agrees
          to
          pay all of Holder's costs of collection, including attorney's fees;
          this shall
          include
          legal
          expenses for
          the
          bankruptcy proceedings or insolvency proceedings (including efforts to
          modify
          or vacate
          any automatic
          stay or injunction), court costs, appeals, post-judgment collection expenses
          and
          any other amount provided by
          law.
          The parties
          intend this provision to
          be
          given the most liberal construction possible and to apply
          to
          any circumstances
          in which such
          party reasonably incurs expenses. No
          delay
          or omission on the part of any Holder hereof
          in
          exercising any right or option herein given to such Holder shall impair
          such right or option or be considered as a waiver thereof or acquiescence
          in
          any
          default hereunder. The
          Company hereby waives any applicable statue of limitations, presentment,
          demand
          for payment,
          protest and notice of dishonor.

      

      

      
        	
                3.
                  

              	
                Conversion.
                  The Holder shall have conversion rights
                  as
                  follows (the "Conversion Rights"):

              

      

      

      
        	
                3.1

              	
                Right
                  To Convert. Subject to subsection 3.3, this Note shall be convertible,
                  in
                  whole or in
                  part, at the option of the Holder, at any time after the date of
                  issuance
                  of this Note, and
                  from
                  time to time thereafter, at the office of the Company, into such
                  number of
                  fully paid
                  and
                  non-assessable shares of Common Stock of
                  the Company as is determined as follows:

              

      

       

      The
        Conversion Price per share shall be equal to the lesser of (1) the average
        of
        the lowest of three day trading prices during the five
        trading
        days immediately prior
        to
        the Conversion Date multiplied by .80, or (2) the average of the lowest of
        three
        day trading prices during the five trading days immediately prior to
the
        funding
        date(s).

      

      
        	
                3.2
                  

              	
                Mechanics
                  of Conversion. Before Holder shall he entitled to convert this
                  Note,
                  in
                  whole
                  or
                  in part, into shares of Common Stock, he shall surrender this Note
                  at the
                  office
                  of the Company,
                  and shall give written notice in person, or by facsimile, mail,
                  postage
                  prepaid,
                  to
                  the Company at its principal corporate office, of Holder's election
                  to
                  convert the
                  Note
                  and shall state therein the portion of the principal amount of
                  the Note to
                  be converted and
                  the name or names in which thecertificate
                  or certificates for shares of Common Stock are
                  to
                  be issued, the address of such persons to
                  be used for record purposes, and the address(es)
                  to which the certificate(s) should be delivered if
                  different from the record address.
                  Such
                  notice shall be on the form attached to this Note as Exhibit 'A'.
                  The
                  Company shall as soon as
                  practicable thereafter, issue and deliver to Holder, or to the
                  nominee
                  or nominees of Holder, a certificate or certificates for
                  the number of shares of Common
                  Stock to which Holder shall be entitled as
                  aforesaid
                  and, if less than the full principal
                  amount of the note is converted, a new
                  Note representing the uncoverted balance
                  which remains outstanding. Any interest accrued but unpaid on the
                  converted portion
                  of the Note shall be paid upon conversion; any interest accrued
                  but unpaid
                  on
                  the non-converted portion of the Note shall be paid in due course
                  under
                  the replacement Note.
                  Such conversion shall be deemed to have been made immediately prior
                  to
                  the
                  close of
                  business on the date of such surrender of the Note to be converted,
                  and
                  the person or
                  persons entitled to receive the shares of Common Stock issuable
                  upon such
                  conversion shall
                  be treated for all purposes as the record holder or holders of
                  such shares
                  of Common Stock
                  as of such
                  date.

              
	 	 
	
                3.3

              	
                No
                  Impairment. The
                  Company will not, by amendment of its Articles of Incorporation
                  or
                  through any reorganization, recapitalization, transfer of assets,
                  consolidation,
                  merger, dissolution, issue or sale of securities or any other voluntary
                  action, avoid or seek to avoid the observance or performance of
                  any of the
                  terms to be observed or performed hereunder
                  by the Company, but will at all times in good faith assist in the
                  carrying
                  out
                  of all the provisions of this Section 3 and in the taking of
                  all such action as may be necessary or appropriate in order to
                  protect the
                  Conversion Rights of the Holder against impairment.

              
	 	 
	
                3.4
                  

              	
                No
                  Fractional Shares and Certificates as to Conversion. No fractional
                  shares
                  shall be issued
                  upon conversion of the Note, and the number of shares of Common
                  Stock
                  to be issued
                  shall be rounded to the nearest whole
                  share.

              

      

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

      
        	
                3.5

              	
                Notices
                  of Record Date. In
                  the event of any taking by the Company of a record of the holders
                  of any class of securities for the purpose of determining the holders
                  thereof
                  who are
                  entitled to receive any dividend or other distribution, any
                  right to subscribe for, purchase
                  or otherwise acquire any shares of stock of any class or any other
                  securities or
                  property,
                  or to receive any other right, the Company shall mail to Holder,
                  at least
                  20 days
                  prior
                  to the date specified therein, a notice specifying the date on
                  which any
                  such record
                  is
                  to be taken for the purpose of such dividend, distribution, or
                  right, and
                  the
                  amount and character
                  of such dividend, distribution, or right. In
                  the case of rights to acquire any shares
                  of stock or any other class of securities or property, Company
                  shall grant
                  to Holder
                  the
                  same rights as if the Holder had converted his Note upon the Record
                  Date.

              
	 	 
	
                3.6

              	
                Reservation
                  of Stock Issuable Upon Conversion. The
                  Company shall at all times reserve
                  and keep available out of its authorized but unissued shares of
                  Common Stock solely
                  for the purpose of effecting the conversion of the Notes such number
                  of
                  shares of Common
                  Stock as shall from time to time be sufficient to effect the conversion
                  of
                  all outstanding
                  Notes; and if at any time the number of authorized but unissued
                  shares
                  of Common Stock shall not be sufficient to effect the conversion
                  of
                  all then-outstanding Notes,
                  in addition to such other remedies as shall
                  be available to the Holder, the Company will take such corporate
                  action as
                  may, in
                  the opinion of its counsel, be necessary
                  to increase its authorized but unissued shares
                  of Common Stock to such number
                  of shares as shall be sufficient for such purposes.

              
	 	 
	
                3.7
                  

              	
                Notices.
                  Any
                  notice required by the provisions of this Section 3 to
                  be given to the Holder
                  shall be deemed given if deposited in the United States mail, postage
                  prepaid and
                  certified,
                  return receipt requested and addressed to
                  Holder of record at his address appearing
                  on the books of the Company.

              

      

       

      
        	4.  	
                Redemption.
                  The
                  Company at its option shall have the right to redeem, with three
                  (3)
                  business days
                  advance
                  written notice (the "Redemption
                  Notice"), a
                  portion or all outstanding convertible debenture. The
                  redemption price shall be one hundred twenty percent (120%)
                  of the amount redeemed plus accrued
                  interest.

              
	 	 
	
                5.

              	
                Assignment.
                  Subject to the restrictions on transfer herein, the Holder may
                  transfer
                  this Note in whole or
                  in part, in the event of partial transfer(s), the Company will
                  exchange
                  this
                  Note for new Notes as instructed by the Holder equal to the total
                  of this
                  Note, by endorsement (by the Holder of this Note executing
                  the form of assignment attached to this Note as Exhibit 'B') and
                  delivery
                  in
                  the same manner as
                  any negotiable
                  instrument transferable by endorsement and delivery. Until
                  this Note is transferred on
                  the Company books, the Company may treat the registered Holder
                  of this
                  Note as the absolute owner
                  of this Note for all purposes, despite any notice to the
                  contrary. The Company's obligations hereunder
                  may not be transferred without prior written consent of the Holder;
                  any
                  attempt to transfer without
                  consent shall be void ab
                  initio.

              
	 	 
	
                6.
                  

              	
                Restrictions
                  on Transfer. This Note and the stock into which it is convertible
                  have
                  not been registered under the Securities act of 1933, as amended,
                  of the
                  United States
                  of America (the "Act") or the securities
                  laws of any sate of the United States ("State Act"). This
                  Note
                  and the stock into which it is convertible
                  have been acquired for investment and not with a view to, or in
                  connection
                  with,
                  the sale or distribution,
                  thereof, and may not be offered, sold, pledged, hypothecated. Or
                  otherwise transferred for value
                  directly or indirectly, in the absence of an effective registration
                  statement under the Act and compliance
                  with applicable State Acts, or pursuant to an exemption from
                  registration under the Act and
                  under applicable State Acts, the availability of which are established
                  by
                  means of an opinion to such
                  effect. In form and substance satisfactory to the Company and rendered
                  by
                  legal counsel .satisfactory
                  to the Company. Thecertificates
                  representing the shares into
                  which this Note is convertible
                  shall bear the foregoing legend.

              
	 	 
	
                7.

              	
                Registration
                  of Underlying Stock & Penalties. The
                  Company agrees that within ninety days of the date
                  of this Note, the Company shall file a registration statement with
                  the Securities and Exchange Commission
                  on Form SB-2 or other applicable form to register 250% of the then
                  shares to
                  be
                  issued upon conversion of the Notes. The
                  registrations statement shall call for, amongst other items more
                  fully
                  described therein, the Company to use its best efforts to have
                  such
                  registration statement declared effective
                  at the earliest possible time. Should
                  such registration statement not be deemed effective within
                  one hundred and eighty days from the date of the date of the funding
                  of
                  the Note, the Company shall
                  pay a penalty to the Holder in an amount equal to 2% of the principal
                  balance and any and all accrued
                  interest then outstanding per month or any part
                  thereof,
                  until such time as the registration statement
                  is declared effective. Company agrees to keep such registration
                  statement
                  effective until the maturity
                  of the Note. Should there come a time when the number of shares
                  that have
                  been registered is
                  less than 200% of the total number of shares to be issued upon
                  conversion,
                  the Company agrees that it will amend such registration statement
                  such
                  that a minimum of 200% of the shares to be issued upon conversion
                  are on such registration statement.

              

      

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      
        	
                8.
                  

              	
                Replacement.
                  On
                  receipt of evidence reasonably satisfactory to the Company of the
                  loss,
                  theft,
                  destruction
                  or mutilation of this Note and, in the event of such occurrence,
                  on
                  delivery of an indemnity agreement
                  or bond reasonably satisfactory in form and amount to the Company
                  or, in
                  the case of mutilation,
                  on surrender and cancellation of this Note, the Company at its
                  expense
                  will execute and deliver,
                  in lieu of this Note, a new Note of like tenor. On surrender of
                  this Note
                  for exchange and subject
                  to the provisions of this Note on compliance with the Securities
                  Act, the
                  Company, at its expense
                  will issue to or on the order of the Holder of this Note a new
                  Note or
                  Notes of like tenor, in the name
                  of that Holder or as that Holder (on payment by the Holder of any
                  applicable transfer taxes) may direct, in the same total principal
                  amount
                  as this Note.

              
	 	 
	
                9.

              	
                 Appointment
                  of Agent. The Company may, on written notice to the Holder of this
                  Note,
                  appoint an agent
                  for the purposes of issuing Common Stock or other securities on
                  the
                  conversion of this Note and of
                  replacing or exchanging this Note; and after that appointment occurs
                  any
                  such issuance, replacement,
                  or exchange shall be made at that office by that agent.

              
	 	 
	
                10.

              	
                Miscellaneous.

              

      

      

      
        	
                10.1

              	
                Amendment.
                  No supplement, modification, or amendment of this Note shall be
                  binding
                  unless executed in writing by all the parties hereto.

              
	 	 
	
                10.2

              	
                Waiver.
                  No waiver of any of the provisions of this Note shall be deemed,
                  or shall
                  constitute,
                  a waiver of any other provision, whether or not similar, nor shall
                  any
                  waiver constitute
                  a continuing waiver. No waiver shall be binding unless executed
                  in writing
                  by the
                  party making the waiver. Neither the acceptance of any partial
                  or
                  delinquent payment by
                  the Holder nor the Holder's failure to exercise any of its rights
                  or
                  remedies on default by
                  the Company shall be a waiver by the Holder of any default or the
                  Company
                  obligations
                  under this Note, or a waiver of any subsequent default by the
                  Company.

              
	 	 
	
                10.3

              	
                Timeliness.
                  Time is of the essence of this Note and each and all of its
                  provisions.

              
	 	 
	
                10.4

              	
                Notices.
                  Notices
                  given under this Note shall be in writing and shall be delivered
                  personally,
                  by messenger, by certified U.S. mail, return receipt requested,
                  or by a
                  common
                  overnight carrier delivery service. Notices
                  shall be deemed received upon receipt of same. Notices to the Company
                  shall be addressed to 535 5th Avenue, Suite 1004,
                  New York, NY 10017. Notices to the Holder shall be directed to
                  Holder at
                  the Holder's
                  address of record on the Company's books. A party may change its
                  address
                  for notice
                  by giving written notice to the other party in accordance with
                  this
                  Section.

              
	 	 
	
                10.5

              	
                Governing
                  Law and Venue. This Note shall be construed in accordance with,
                  and
                  governed
                  by, the laws of the State of New York, and any action or proceeding,
                  including arbitration,
                  brought by any party in which this Note is a subject shall be brought
                  in
                  New York.

              
	 	 
	
                10.6

              	
                Effect
                  of Headings. The headings of the sections of this Note are included
                  for
                  purposes of convenience only, and shall not affect the construction
                  or
                  interpretation of any of its provisions.

              
	 	 
	
                10.7

              	
                Invalidity.
                  Any provision of this Note which is invalid, void, or illegal,
                  shall not
                  affect, impair,
                  or
                  invalidate
                  any other provision of this Note, and such other provisions of
                  this
                  Note
                  shall remain in full force and
                  effect.

              

      

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

      

        
          	
                  10.8

                	
                  Professional
                    Fees
                    and
                    Costs.
                    If
                    any legal or equitable action, arbitration, or other proceeding,
                    whether on the merits or on motion, are brought or undertaken,
                    or an
                    attorney is
                    retained to enforce this Note, or because of an alleged dispute,
                    breach,
                    default, or misrepresentation
                    in connection with any of the provisions of
                    this Note, then the successful
                    or prevailing party or parties in such undertaking (or the party
                    that
                    would prevail
                    if an action were brought) shall be entitled to recover reasonable
                    attorney's fees
                    and
                    other professional fees and other costs incurred
                    in such action, proceeding or discussions,
                    in addition to any other relief to which such party would be
                    entitled.
                    The
                    parties intend this provision be given the most liberal construction
                    possible and
                    to apply to
                    any circumstances in which such party reasonably incurs
                    expenses.

                

        

      

       

      
        	 	 	 
	 	Global
                It
                Holdings, Inc.
	 
 	 
 	 
 
	 	By:  	/s/ Lloyd
                Glick
	 	
                
Name:
                Lloyd Glick
	 	Title:
                President

 

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        'A'

       

      CONVERSION
        NOTICE

       

      
        	TO:	Global
                IT Holdings, Inc.
	 	535 5th
                Avenue,
                Suite 1004 
	 	New York, NY 10017
	 	Attn:      
                Corporate
                Secretary

      

       

      The
        undersigned owner of this 6.5%
        Convertible
        Note due December 31, 2004 (the "Note")
        issued by Global IT Holdings, Inc. (the "Company") hereby
        irrevocably exercises its option to convert
        $________  Principal
        Amount of the Note into shares of Common Stock in accordance with the
terms
        of
        the Note. The undersigned hereby instructs the Company to convert the portion
        of
        the Note specified
        above unto shares
        of
        Common Stock issued at Conversion in accordance with the
        provisions of Article 3 of the Note. Attached hereto is the undersigned's
        calculation for the Conversion Price.
        The
        undersigned directs that the Common Stock and certificates therefore deliverable
        upon conversion,
        the Note reissued in the Principal Amount not being surrendered for conversion
        hereby, together with any check in payment for fractional Common Stock, be
        registered in the name of and/or delivered to the undersigned unless a different
        name has been indicated below. All capitalized terms used and
        not
        defined herein have the respective meanings assigned to them in the Note.
        The
        conversion pursuant hereto shall be deemed to have been effected at the date
        and
        time specified below, and at such time
        the
        rights of the undersigned as a Holder of the Principal Amount of the Note
        set
        forth above shall cease
        and
        the Person or Persons in whose name or names the Common Stock issued at
        Conversion shall be registered
        shall be deemed to have become the holder or holders of record of the Common
        Shares represented
        thereby and all voting and other rights associated with the beneficial ownership
        of such Common
        Shares shall at such time vest with such Person or Persons.

      

      Date
        and
        time:

                                                                                            
        ______________________________

      Signature

      

      Fill
        in
        for registration of Note:

      

      Please
        print name and address 

      (including
        ZIP code number):

      _______________________

      _______________________

      _______________________

       

      
        
          
          

        

        
          -6-

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