Document:

Unassociated Document

     

    SERIES
      B WARRANT

     

    THE
      SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM REASONABLY
      SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
      SAID
      ACT. NOTWITHSTANDING THE FOREGOING, THIS WARRANT MAY BE PLEDGED IN CONNECTION
      WITH A BONA FIDE MARGIN ACCOUNT.

     

     

    GLOBAL
      IT HOLDINGS, INC.

     

     

    Series
      B Warrant To Purchase Common Stock

     

    
      
        	 Warrant No.: GITH-1-2	
                 Number
                  of Shares:
                  1,500,000

              

      

    

    

    Date
      of
      Issuance: August 25, 2006

    

    Global
      IT
      Holdings, Inc., a Nevada corporation (the “Company”),
      hereby certifies that, for good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, Cornell
      Capital Partners, LP
      (the
“Holder”),
      the
      registered holder hereof or its permitted assigns, is entitled, subject to
      the
      terms set forth below, to purchase from the Company upon surrender of this
      Warrant, at any time or times on or after the date hereof, but not after
      11:59 P.M. Eastern Time on the Expiration Date (as defined herein) one
      million, five hundred thousand (1,500,000) fully paid and nonassessable shares
      of Common Stock (as defined herein) of the Company (the “Warrant
      Shares”)
      at the
      exercise price per share provided in Section 1(b) below or as subsequently
      adjusted; provided, however, that in no event shall the holder be entitled
      to
      exercise this Warrant for a number of Warrant Shares in excess of that number
      of
      Warrant Shares which, upon giving effect to such exercise, 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 exercise, except within sixty (60) days of the Expiration Date
      (however, such restriction may be waived by Holder (but only as to itself and
      not to any other holder) upon not less than 65 days prior notice to the
      Company). For purposes of the foregoing proviso, the aggregate number of shares
      of Common Stock beneficially owned by the holder and its affiliates shall
      include the number of shares of Common Stock issuable upon exercise of this
      Warrant with respect to which the determination of such proviso is being made,
      but shall exclude shares of Common Stock which would be issuable upon
      (i) exercise of the remaining, unexercised Warrants beneficially owned by
      the holder and its affiliates and (ii) exercise or conversion of the
      unexercised or unconverted portion of any other securities of the Company
      beneficially owned by the holder and its affiliates (including, without
      limitation, any convertible notes or preferred stock) subject to a limitation
      on
      conversion or exercise analogous to the limitation contained herein. Except
      as
      set forth in the preceding sentence, for purposes of this paragraph, beneficial
      ownership shall be calculated in accordance with Section 13(d) of the Securities
      Exchange Act of 1934, as amended. For purposes of this Warrant, in determining
      the number of outstanding shares of Common Stock a holder may rely on the number
      of outstanding shares of Common Stock as reflected in (1) the Company’s most
      recent Form 10-QSB or Form 10-KSB, as the case may be, (2) a more recent public
      announcement by the Company or (3) any other notice by the Company or its
      transfer agent setting forth the number of shares of Common Stock outstanding.
      Upon the written request of any holder, the Company shall promptly, but in
      no
      event later than one (1) Business Day following the receipt of such notice,
      confirm in writing to any such holder the number of shares of Common Stock
      then
      outstanding. In any case, the number of outstanding shares of Common Stock
      shall
      be determined after giving effect to the exercise of Warrants (as defined below)
      by such holder and its affiliates since the date as of which such number of
      outstanding shares of Common Stock was reported.

     

    
      
         

      

      
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    Section
      1.  

     

    (a)  This
      Warrant is the common stock purchase warrant (the “Warrant”)
      issued
      pursuant to the Securities Purchase Agreement (“Securities
      Purchase Agreement”)
      dated
      the date hereof between the Company and the Buyers listed on Schedule I
      thereto.

     

    (b)  Definitions.
      The
      following words and terms as used in this Warrant shall have the following
      meanings:

     

    (i)  “Approved
      Stock Plan”
means
      any employee benefit plan which has been approved by the Board of Directors
      of
      the Company, pursuant to which the Company’s securities may be issued to any
      employee, officer or director for services provided to the Company.

     

    (ii)  “Business
      Day”
means
      any day other than Saturday, Sunday or other day on which commercial banks
      in
      the City of New York are authorized or required by law to remain
      closed.

     

    (iii)  “Closing
      Bid Price”
means
      the closing bid price of Common Stock as quoted on the Principal Market (as
      reported by Bloomberg Financial Markets (“Bloomberg”)
      through its “Volume at Price” function).

     

    (iv)  “Common
      Stock”
means
      (i) the Company’s common stock, par value $.001 per share, and
      (ii) any capital stock into which such Common Stock shall have been changed
      or any capital stock resulting from a reclassification of such Common
      Stock.

     

    (v)  “Event
      of Default”
means
      an event of default under the Securities Purchase Agreement, the Convertible
      Debentures issued in connection therewith or the Investor’s Registration Rights
      Agreement dated the date hereof.

     

    (vi)  “Excluded
      Securities”
means,
      provided such security is issued at a price which is greater than or equal
      to
      the arithmetic average of the Closing Bid Prices of the Common Stock for the
      ten
      (10) consecutive trading days immediately preceding the date of issuance, any
      of
      the following: (a) any issuance by the Company of securities in connection
      with
      a strategic partnership or a joint venture (the primary purpose of which is
      not
      to raise equity capital), (b) any issuance by the Company of securities as
      consideration for a merger or consolidation or the acquisition of a business,
      product, license, or other assets of another person or entity and (c) options
      to
      purchase shares of Common Stock, provided (I) such options are issued after
      the
      date of this Warrant to employees of the Company within thirty (30) days of
      such
      employee’s starting his employment with the Company, and (II) the exercise price
      of such options is not less than the Closing Bid Price of the Common Stock
      on
      the date of issuance of such option.

     

    
      
         

      

      
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    (vii)  “Expiration
      Date”
means
      the date four (4) years from the Issuance Date of this Warrant or, if such
      date
      falls on a Saturday, Sunday or other day on which banks are required or
      authorized to be closed in the City of New York or the State of New York or
      on
      which trading does not take place on the Principal Exchange or automated
      quotation system on which the Common Stock is traded (a “Holiday”),
      the
      next date that is not a Holiday.

     

    (viii)  “Issuance
      Date”
means
      the date hereof.

     

    (ix)  “Options”
means
      any rights, warrants or options to subscribe for or purchase Common Stock or
      Convertible Securities. 

     

    (x)  “Other
      Securities”
means
      (i) those options and warrants of the Company issued prior to, and
      outstanding on, the Issuance Date of this Warrant, (ii) the shares of Common
      Stock issuable on exercise of such options and warrants, provided such options
      and warrants are not amended after the Issuance Date of this Warrant and
      (iii) the shares of Common Stock issuable upon exercise of this Warrant.

     

    (xi)  “Person”
means
      an individual, a limited liability company, a partnership, a joint venture,
      a
      corporation, a trust, an unincorporated organization and a government or any
      department or agency thereof.

     

    (xii)  “Principal
      Market”
means
      the New York Stock Exchange, the American Stock Exchange, the Nasdaq National
      Market, the Nasdaq SmallCap Market, whichever is at the time the principal
      trading exchange or market for such security, or the over-the-counter market
      on
      the electronic bulletin board or Pink Sheets Electronic Quotation Service for
      such security as reported by Bloomberg or, if no bid or sale information is
      reported for such security by Bloomberg, then the average of the bid prices
      of
      each of the market makers for such security as reported in the “pink sheets” by
      the National Quotation Bureau, Inc.

     

    (xiii)  “Securities
      Act”
means
      the Securities Act of 1933, as amended. 

     

    (xiv)  “Warrant”
means
      this Warrant and all Warrants issued in exchange, transfer or replacement
      thereof. 

     

    (xv)  “Warrant
      Exercise Price”
shall
      be equal to either the lesser of (a) eighty percent (80%) of the lowest Closing
      Bid Price for the Company’s common stock for the five (5) trading days prior to
      the Closing or (b) seventy five percent (75%) of the lowest Closing Bid
      Price of the Common Stock on the exercise date; or as subsequently adjusted
      as
      provided in Section 8 hereof. 

     

    
      
         

      

      
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    (xvi)  “Warrant
      Shares”
means
      the shares of Common Stock issuable at any time upon exercise of this Warrant.
      

     

    (c)  Other
      Definitional Provisions. 

     

    (i)  Except
      as
      otherwise specified herein, all references herein (A) to the Company shall
      be deemed to include the Company’s successors and (B) to any applicable law
      defined or referred to herein shall be deemed references to such applicable
      law
      as the same may have been or may be amended or supplemented from time to time.
      

     

    (ii)  When
      used
      in this Warrant, the words “herein”,
      “hereof”,
      and
“hereunder”
      and
      words of similar import, shall refer to this Warrant as a whole and not to
      any
      provision of this Warrant, and the words “Section”,
      “Schedule”,
      and
“Exhibit”
shall
      refer to Sections of, and Schedules and Exhibits to, this Warrant unless
      otherwise specified. 

     

    (iii)  Whenever
      the context so requires, the neuter gender includes the masculine or feminine,
      and the singular number includes the plural, and vice versa. 

     

    Section
      2.  Exercise
      of Warrant.
      

     

    (a)  Subject
      to the terms and conditions hereof, this Warrant may be exercised by the holder
      hereof then registered on the books of the Company, pro rata as hereinafter
      provided, at any time on any Business Day on or after the opening of business
      on
      such Business Day, commencing with the first day after the date hereof, and
      prior to 11:59 P.M. Eastern Time on the Expiration Date (i) by delivery of
      a written notice, in the form of the subscription notice attached as
Exhibit
      A
      hereto
      (the “Exercise
      Notice”),
      of
      such holder’s election to exercise this Warrant, which notice shall specify the
      number of Warrant Shares to be purchased, payment to the Company of an
      amount equal to the Warrant Exercise Price(s) applicable to the Warrant Shares
      being purchased, multiplied by the number of Warrant Shares (at the
      applicable Warrant Exercise Price) as to which this Warrant is being
      exercised (plus any applicable issue or transfer taxes) (the “Aggregate
      Exercise Price”)
      in
      cash or wire transfer of immediately available funds and the surrender of this
      Warrant (or an indemnification undertaking with respect to this Warrant in
      the
      case of its loss, theft or destruction) to a common carrier for overnight
      delivery to the Company as soon as practicable following such date
      (“Cash
      Basis”)
      or
      (ii) if at the time of exercise, the Warrant Shares are not subject to an
      effective registration statement or if an Event of Default has occurred, by
      delivering an Exercise Notice and in lieu of making payment of the Aggregate
      Exercise Price in cash or wire transfer, elect instead to receive upon such
      exercise the “Net Number” of shares of Common Stock determined according to the
      following formula (the “Cashless
      Exercise”):
      

     

    Net
      Number = (A
      x
      B) - (A x C)

                B

    

    For
      purposes of the foregoing formula: 

     

    
      
         

      

      
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    A
      = the
      total number of Warrant Shares with respect to which this Warrant is then being
      exercised. 

    

    B
      = the
      Closing Bid Price of the Common Stock on the date of exercise of the
      Warrant.

    

    C
      = the
      Warrant Exercise Price then in effect for the applicable Warrant Shares at
      the
      time of such exercise. 

    

    In
      the
      event of any exercise of the rights represented by this Warrant in compliance
      with this Section 2, the Company shall on or before the fifth (5th)
      Business Day following the date of receipt of the Exercise Notice, the Aggregate
      Exercise Price and this Warrant (or an indemnification undertaking with respect
      to this Warrant in the case of its loss, theft or destruction) and the receipt
      of the representations of the holder specified in Section 6 hereof, if requested
      by the Company (the “Exercise
      Delivery Documents”),
      and
      if the Common Stock is DTC eligible, credit such aggregate number of shares
      of
      Common Stock to which the holder shall be entitled to the holder’s or its
      designee’s balance account with The Depository Trust Company; provided, however,
      if the holder who submitted the Exercise Notice requested physical delivery
      of
      any or all of the Warrant Shares, or, if the Common Stock is not DTC eligible
      then the Company shall, on or before the fifth (5th)
      Business Day following receipt of the Exercise Delivery Documents, issue and
      surrender to a common carrier for overnight delivery to the address specified
      in
      the Exercise Notice, a certificate, registered in the name of the holder, for
      the number of shares of Common Stock to which the holder shall be entitled
      pursuant to such request. Upon delivery of the Exercise Notice and Aggregate
      Exercise Price referred to in clause (i) or (ii) above the holder of this
      Warrant shall be deemed for all corporate purposes to have become the holder
      of
      record of the Warrant Shares with respect to which this Warrant has been
      exercised. In the case of a dispute as to the determination of the Warrant
      Exercise Price, the Closing Bid Price or the arithmetic calculation of the
      Warrant Shares, the Company shall promptly issue to the holder the number of
      Warrant Shares that is not disputed and shall submit the disputed determinations
      or arithmetic calculations to the holder via facsimile within one (1) Business
      Day of receipt of the holder’s Exercise Notice. 

     

    (b)  If
      the
      holder and the Company are unable to agree upon the determination of the Warrant
      Exercise Price or arithmetic calculation of the Warrant Shares within one (1)
      day of such disputed determination or arithmetic calculation being submitted
      to
      the holder, then the Company shall immediately submit via facsimile (i) the
      disputed determination of the Warrant Exercise Price or the Closing Bid Price
      to
      an independent, reputable investment banking firm or (ii) the disputed
      arithmetic calculation of the Warrant Shares to its independent, outside
      accountant. The Company shall cause the investment banking firm or the
      accountant, as the case may be, to perform the determinations or calculations
      and notify the Company and the holder of the results no later than forty-eight
      (48) hours from the time it receives the disputed determinations or
      calculations. Such investment banking firm’s or accountant’s determination or
      calculation, as the case may be, shall be deemed conclusive absent manifest
      error.

     

    (c)  Unless
      the rights represented by this Warrant shall have expired or shall have been
      fully exercised, the Company shall, as soon as practicable and in no event
      later
      than five (5) Business Days after any exercise and at its own expense, issue
      a
      new Warrant identical in all respects to this Warrant exercised except it shall
      represent rights to purchase the number of Warrant Shares purchasable
      immediately prior to such exercise under this Warrant exercised, less the number
      of Warrant Shares with respect to which such Warrant is exercised.

     

    
      
         

      

      
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    (d)  No
      fractional Warrant Shares are to be issued upon any pro rata exercise of this
      Warrant, but rather the number of Warrant Shares issued upon such exercise
      of
      this Warrant shall be rounded up or down to the nearest whole
      number.

     

    (e)  If
      the
      Company or its Transfer Agent shall fail for any reason or for no reason to
      issue to the holder within ten (10) days of receipt of the Exercise
      Delivery Documents, a certificate for the number of Warrant Shares to which
      the
      holder is entitled or to credit the holder’s balance account with The Depository
      Trust Company for such number of Warrant Shares to which the holder is entitled
      upon the holder’s exercise of this Warrant, the Company shall, in addition to
      any other remedies under this Warrant or the Placement Agent Agreement or
      otherwise available to such holder, pay as additional damages in cash to such
      holder on each day the issuance of such certificate for Warrant Shares is not
      timely effected an amount equal to 0.025% of the product of (A) the sum of
      the
      number of Warrant Shares not issued to the holder on a timely basis and to
      which
      the holder is entitled, and (B) the Closing Bid Price of the Common Stock for
      the trading day immediately preceding the last possible date which the Company
      could have issued such Common Stock to the holder without violating this
      Section 2.

     

    (f)  If
      within
      ten (10) days after the Company’s receipt of the Exercise Delivery Documents,
      the Company fails to deliver a new Warrant to the holder for the number of
      Warrant Shares to which such holder is entitled pursuant to Section 2 hereof,
      then, in addition to any other available remedies under this Warrant, or
      otherwise available to such holder, the Company shall pay as additional damages
      in cash to such holder on each day after such tenth (10th)
      day
      that such delivery of such new Warrant is not timely effected in an amount
      equal
      to 0.25% of the product of (A) the number of Warrant Shares represented by
      the portion of this Warrant which is not being exercised and (B) the
      Closing Bid Price of the Common Stock for the trading day immediately preceding
      the last possible date which the Company could have issued such Warrant to
      the
      holder without violating this Section 2.

     

    (g)  Commencing
      one hundred fifty (150) days from the date hereof, the Holder in its sole
      discretion shall have the option to put the Warrant Shares back to the Company
      for a price equal to $.15 per share. 

     

    Section
      3.  Covenants
      as to Common Stock.
      The
      Company hereby covenants and agrees as follows:

     

    (a)  This
      Warrant is, and any Warrants issued in substitution for or replacement of this
      Warrant will upon issuance be, duly authorized and validly issued.

     

    (b)  All
      Warrant Shares which may be issued upon the exercise of the rights represented
      by this Warrant will, upon issuance, be validly issued, fully paid and
      nonassessable and free from all taxes, liens and charges with respect to the
      issue thereof.

     

    (c)  During
      the period within which the rights represented by this Warrant may be exercised,
      the Company will at all times have authorized and reserved at least one hundred
      percent (100%) of the number of shares of Common Stock needed to provide for
      the
      exercise of the rights then represented by this Warrant and the par value of
      said shares will at all times be less than or equal to the applicable Warrant
      Exercise Price. If at any time the Company does not have a sufficient number of
      shares of Common Stock authorized and available, then the Company shall call
      and
      hold a special meeting of its stockholders within sixty (60) days of that
      time for the sole purpose of increasing the number of authorized shares of
      Common Stock.

     

    
      
         

      

      
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    (d)  If
      at any
      time after the date hereof the Company shall file a registration statement,
      the
      Company shall include the Warrant Shares issuable to the holder, pursuant to
      the
      terms of this Warrant and shall maintain, so long as any other shares of Common
      Stock shall be so listed, such listing of all Warrant Shares from time to time
      issuable upon the exercise of this Warrant; and the Company shall so list on
      each national securities exchange or automated quotation system, as the case
      may
      be, and shall maintain such listing of, any other shares of capital stock of
      the
      Company issuable upon the exercise of this Warrant if and so long as any shares
      of the same class shall be listed on such national securities exchange or
      automated quotation system.

     

    (e)  The
      Company will not, by amendment of its Articles of Incorporation or through
      any
      reorganization, 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 by
      it
      hereunder, but will at all times in good faith assist in the carrying out of
      all
      the provisions of this Warrant and in the taking of all such action as may
      reasonably be requested by the holder of this Warrant in order to protect the
      exercise privilege of the holder of this Warrant against dilution or other
      impairment, consistent with the tenor and purpose of this Warrant. The Company
      will not increase the par value of any shares of Common Stock receivable upon
      the exercise of this Warrant above the Warrant Exercise Price then in effect,
      and (ii) will take all such actions as may be necessary or appropriate in
      order that the Company may validly and legally issue fully paid and
      nonassessable shares of Common Stock upon the exercise of this
      Warrant.

     

    (f)  This
      Warrant will be binding upon any entity succeeding to the Company by merger,
      consolidation or acquisition of all or substantially all of the Company’s
      assets.

     

    Section
      4.  Taxes.
      The
      Company shall pay any and all taxes, except any applicable withholding, which
      may be payable with respect to the issuance and delivery of Warrant Shares
      upon
      exercise of this Warrant.

     

    Section
      5.  Warrant
      Holder Not Deemed a Stockholder.
      Except
      as otherwise specifically provided herein, no holder, as such, of this Warrant
      shall be entitled to vote or receive dividends or be deemed the holder of shares
      of capital stock of the Company for any purpose, nor shall anything contained
      in
      this Warrant be construed to confer upon the holder hereof, as such, any of
      the
      rights of a stockholder of the Company or any right to vote, give or withhold
      consent to any corporate action (whether any reorganization, issue of stock,
      reclassification of stock, consolidation, merger, conveyance or otherwise),
      receive notice of meetings, receive dividends or subscription rights, or
      otherwise, prior to the issuance to the holder of this Warrant of the Warrant
      Shares which he or she is then entitled to receive upon the due exercise of
      this
      Warrant. In addition, nothing contained in this Warrant shall be construed
      as
      imposing any liabilities on such holder to purchase any securities (upon
      exercise of this Warrant or otherwise) or as a stockholder of the Company,
      whether such liabilities are asserted by the Company or by creditors of the
      Company. Notwithstanding this Section 5, the Company will provide the holder
      of
      this Warrant with copies of the same notices and other information given to
      the
      stockholders of the Company generally, contemporaneously with the giving thereof
      to the stockholders.

     

    
      
         

      

      
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    Section
      6.  Representations
      of Holder.
      The
      holder of this Warrant, by the acceptance hereof, represents that it is
      acquiring this Warrant and the Warrant Shares for its own account for investment
      only and not with a view towards, or for resale in connection with, the public
      sale or distribution of this Warrant or the Warrant Shares, except pursuant
      to
      sales registered or exempted under the Securities Act; provided, however, that
      by making the representations herein, the holder does not agree to hold this
      Warrant or any of the Warrant Shares for any minimum or other specific term
      and
      reserves the right to dispose of this Warrant and the Warrant Shares at any
      time
      in accordance with or pursuant to a registration statement or an exemption
      under
      the Securities Act. The holder of this Warrant further represents, by acceptance
      hereof, that, as of this date, such holder is an “accredited investor” as such
      term is defined in Rule 501(a)(1) of Regulation D promulgated by the
      Securities and Exchange Commission under the Securities Act (an “Accredited
      Investor”).
      Upon
      exercise of this Warrant the holder shall, if requested by the Company, confirm
      in writing, in a form satisfactory to the Company, that the Warrant Shares
      so
      purchased are being acquired solely for the holder’s own account and not as a
      nominee for any other party, for investment, and not with a view toward
      distribution or resale and that such holder is an Accredited Investor. If such
      holder cannot make such representations because they would be factually
      incorrect, it shall be a condition to such holder’s exercise of this Warrant
      that the Company receive such other representations as the Company considers
      reasonably necessary to assure the Company that the issuance of its securities
      upon exercise of this Warrant shall not violate any United States or state
      securities laws.

     

    Section
      7.  Ownership
      and Transfer.

     

    (a)  The
      Company shall maintain at its principal executive offices (or such other office
      or agency of the Company as it may designate by notice to the holder hereof),
      a
      register for this Warrant, in which the Company shall record the name and
      address of the person in whose name this Warrant has been issued, as well as
      the
      name and address of each transferee. The Company may treat the person in whose
      name any Warrant is registered on the register as the owner and holder thereof
      for all purposes, notwithstanding any notice to the contrary, but in all events
      recognizing any transfers made in accordance with the terms of this
      Warrant.

     

    Section
      8.  Adjustment
      of Warrant Exercise Price and Number of Shares.
      The
      Warrant Exercise Price and the number of shares of Common Stock issuable upon
      exercise of this Warrant shall be adjusted from time to time as
      follows:

     

    (a)  Adjustment
      of Warrant Exercise Price and Number of Shares upon Issuance of Common
      Stock.
      If and
      whenever on or after the Issuance Date of this Warrant, the Company issues
      or
      sells, or is deemed to have issued or sold, any shares of Common
      Stock (other than (i) Excluded Securities, (ii) shares of Common Stock
      which are issued or deemed to have been issued by the Company in connection
      with
      an Approved Stock Plan, or (iii) the Other Securities) for a consideration
      per
      share less than a price (the “Applicable
      Price”)
      equal
      to the Warrant Exercise Price in effect immediately prior to such issuance
      or
      sale, then immediately after such issue or sale the Warrant Exercise Price
      then
      in effect shall be reduced to an amount equal to such consideration per share.
      Upon each such adjustment of the Warrant Exercise Price hereunder, the number
      of
      Warrant Shares issuable upon exercise of this Warrant shall be adjusted to
      the
      number of shares determined by multiplying the Warrant Exercise Price in effect
      immediately prior to such adjustment by the number of Warrant Shares issuable
      upon exercise of this Warrant immediately prior to such adjustment and dividing
      the product thereof by the Warrant Exercise Price resulting from such
      adjustment.

     

    
      
         

      

      
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    (b)  Effect
      on Warrant Exercise Price of Certain Events.
      For
      purposes of determining the adjusted Warrant Exercise Price under Section 8(a)
      above, the following shall be applicable:

     

    (i)  Issuance
      of Options.
      If
      after the date hereof, the Company in any manner grants any Options and the
      lowest price per share for which one share of Common Stock is issuable upon
      the
      exercise of any such Option or upon conversion or exchange of any convertible
      securities issuable upon exercise of any such Option is less than the Applicable
      Price, then such share of Common Stock shall be deemed to be outstanding and
      to
      have been issued and sold by the Company at the time of the granting or sale
      of
      such Option for such price per share. For purposes of this Section 8(b)(i),
      the
      lowest price per share for which one share of Common Stock is issuable upon
      exercise of such Options or upon conversion or exchange of such Convertible
      Securities shall be equal to the sum of the lowest amounts of consideration
      (if
      any) received or receivable by the Company with respect to any one share of
      Common Stock upon the granting or sale of the Option, upon exercise of the
      Option or upon conversion or exchange of any convertible security issuable
      upon
      exercise of such Option. No further adjustment of the Warrant Exercise Price
      shall be made upon the actual issuance of such Common Stock or of such
      convertible securities upon the exercise of such Options or upon the actual
      issuance of such Common Stock upon conversion or exchange of such convertible
      securities.

     

    (ii)  Issuance
      of Convertible Securities.
      If the
      Company in any manner issues or sells any convertible securities and the lowest
      price per share for which one share of Common Stock is issuable upon the
      conversion or exchange thereof is less than the Applicable Price, then such
      share of Common Stock shall be deemed to be outstanding and to have been issued
      and sold by the Company at the time of the issuance or sale of such convertible
      securities for such price per share. For the purposes of this
      Section 8(b)(ii), the lowest price per share for which one share of Common
      Stock is issuable upon such conversion or exchange shall be equal to the sum
      of
      the lowest amounts of consideration (if any) received or receivable by the
      Company with respect to one share of Common Stock upon the issuance or sale
      of
      the convertible security and upon conversion or exchange of such convertible
      security. No further adjustment of the Warrant Exercise Price shall be made
      upon
      the actual issuance of such Common Stock upon conversion or exchange of such
      convertible securities, and if any such issue or sale of such convertible
      securities is made upon exercise of any Options for which adjustment of the
      Warrant Exercise Price had been or are to be made pursuant to other provisions
      of this Section 8(b), no further adjustment of the Warrant Exercise Price shall
      be made by reason of such issue or sale. 

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (iii)  Change
      in Option Price or Rate of Conversion.
      If the
      purchase price provided for in any Options, the additional consideration, if
      any, payable upon the issue, conversion or exchange of any convertible
      securities, or the rate at which any convertible securities are convertible
      into
      or exchangeable for Common Stock changes at any time, the Warrant Exercise
      Price
      in effect at the time of such change shall be adjusted to the Warrant Exercise
      Price which would have been in effect at such time had such Options or
      convertible securities provided for such changed purchase price, additional
      consideration or changed conversion rate, as the case may be, at the time
      initially granted, issued or sold and the number of Warrant Shares issuable
      upon
      exercise of this Warrant shall be correspondingly readjusted. For purposes
      of
      this Section 8(b)(iii), if the terms of any Option or convertible security
      that
      was outstanding as of the Issuance Date of this Warrant are changed in the
      manner described in the immediately preceding sentence, then such Option or
      convertible security and the Common Stock deemed issuable upon exercise,
      conversion or exchange thereof shall be deemed to have been issued as of the
      date of such change. No adjustment pursuant to this Section 8(b) shall be
      made if such adjustment would result in an increase of the Warrant Exercise
      Price then in effect.

     

    (c)  Effect
      on Warrant Exercise Price of Certain Events.
      For
      purposes of determining the adjusted Warrant Exercise Price under
      Sections 8(a) and 8(b), the following shall be applicable:

     

    (i)  Calculation
      of Consideration Received.
      If any
      Common Stock, Options or convertible securities are issued or sold or deemed
      to
      have been issued or sold for cash, the consideration received therefore will
      be
      deemed to be the net amount received by the Company therefore. If any Common
      Stock, Options or convertible securities are issued or sold for a consideration
      other than cash, the amount of such consideration received by the Company will
      be the fair value of such consideration, except where such consideration
      consists of marketable securities, in which case the amount of consideration
      received by the Company will be the market price of such securities on the
      date
      of receipt of such securities. If any Common Stock, Options or convertible
      securities are issued to the owners of the non-surviving entity in connection
      with any merger in which the Company is the surviving entity, the amount of
      consideration therefore will be deemed to be the fair value of such portion
      of
      the net assets and business of the non-surviving entity as is attributable
      to
      such Common Stock, Options or convertible securities, as the case may be. The
      fair value of any consideration other than cash or securities will be determined
      jointly by the Company and the holders of Warrants representing at least
      two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants
      then
      outstanding. If such parties are unable to reach agreement within ten (10)
      days after the occurrence of an event requiring valuation (the “Valuation
      Event”),
      the
      fair value of such consideration will be determined within five (5) Business
      Days after the tenth (10th)
      day
      following the Valuation Event by an independent, reputable appraiser jointly
      selected by the Company and the holders of Warrants representing at least
      two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants
      then
      outstanding. The determination of such appraiser shall be final and binding
      upon
      all parties and the fees and expenses of such appraiser shall be borne jointly
      by the Company and the holders of Warrants.

     

    (ii)  Integrated
      Transactions.
      In case
      any Option is issued in connection with the issue or sale of other securities
      of
      the Company, together comprising one integrated transaction in which no specific
      consideration is allocated to such Options by the parties thereto, the Options
      will be deemed to have been issued for a consideration of $.01.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (iii)  Treasury
      Shares.
      The
      number of shares of Common Stock outstanding at any given time does not include
      shares owned or held by or for the account of the Company, and the disposition
      of any shares so owned or held will be considered an issue or sale of Common
      Stock.

     

    (iv)  Record
      Date.
      If the
      Company takes a record of the holders of Common Stock for the purpose of
      entitling them (1) to receive a dividend or other distribution payable in
      Common Stock, Options or in convertible securities or (2) to subscribe for
      or purchase Common Stock, Options or convertible securities, then such record
      date will be deemed to be the date of the issue or sale of the shares of Common
      Stock deemed to have been issued or sold upon the declaration of such dividend
      or the making of such other distribution or the date of the granting of such
      right of subscription or purchase, as the case may be.

     

    (d)  Adjustment
      of Warrant Exercise Price upon Subdivision or Combination of Common
      Stock.
      If the
      Company at any time after the date of issuance of this Warrant subdivides (by
      any stock split, stock dividend, recapitalization or otherwise) one or more
      classes of its outstanding shares of Common Stock into a greater number of
      shares, any Warrant Exercise Price in effect immediately prior to such
      subdivision will be proportionately reduced and the number of shares of Common
      Stock obtainable upon exercise of this Warrant will be proportionately
      increased. If the Company at any time after the date of issuance of this Warrant
      combines (by combination, reverse stock split or otherwise) one or more classes
      of its outstanding shares of Common Stock into a smaller number of shares,
      any
      Warrant Exercise Price in effect immediately prior to such combination will
      be
      proportionately increased and the number of Warrant Shares issuable upon
      exercise of this Warrant will be proportionately decreased. Any adjustment
      under
      this Section 8(d) shall become effective at the close of business on the
      date the subdivision or combination becomes effective.

     

    (e)  Distribution
      of Assets.
      If the
      Company shall declare or make any dividend or other distribution of its assets
      (or rights to acquire its assets) to holders of Common Stock, by way of return
      of capital or otherwise (including, without limitation, any distribution of
      cash, stock or other securities, property or options by way of a dividend,
      spin
      off, reclassification, corporate rearrangement or other similar transaction)
      (a
“Distribution”),
      at
      any time after the issuance of this Warrant, then, in each such
      case:

     

    (i)  any
      Warrant Exercise Price in effect immediately prior to the close of business
      on
      the record date fixed for the determination of holders of Common Stock
      entitled to
      receive the Distribution shall be reduced, effective as of the close of business
      on such record date, to a price determined by multiplying such Warrant Exercise
      Price by a fraction of which (A) the numerator shall be the Closing Sale Price
      of the Common Stock on the trading day immediately preceding such record date
      minus the value of the Distribution (as determined in good faith by the
      Company’s Board of Directors) applicable to one share of Common Stock, and (B)
      the denominator shall be the Closing Sale Price of the Common Stock on the
      trading day immediately preceding such record date; and

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (ii)  either
      (A) the number of Warrant Shares obtainable upon exercise of this Warrant shall
      be increased to a number of shares equal to the number of shares of Common
      Stock
      obtainable immediately prior to the close of business on the record date fixed
      for the determination of holders of Common Stock entitled to receive the
      Distribution multiplied by the reciprocal of the fraction set forth in the
      immediately preceding clause (i), or (B) in the event that the Distribution
      is
      of common stock of a company whose common stock is traded on a national
      securities exchange or a national automated quotation system, then the holder
      of
      this Warrant shall receive an additional warrant to purchase Common Stock,
      the
      terms of which shall be identical to those of this Warrant, except that such
      warrant shall be exercisable into the amount of the assets that would have
      been
      payable to the holder of this Warrant pursuant to the Distribution had the
      holder exercised this Warrant immediately prior to such record date and with
      an
      exercise price equal to the amount by which the exercise price of this Warrant
      was decreased with respect to the Distribution pursuant to the terms of the
      immediately preceding clause (i).

     

    (f)  Certain
      Events.
      If any
      event occurs of the type contemplated by the provisions of this Section 8
      but not expressly provided for by such provisions (including, without
      limitation, the granting of stock appreciation rights, phantom stock rights
      or
      other rights with equity features), then the Company’s Board of Directors will
      make an appropriate adjustment in the Warrant Exercise Price and the number
      of
      shares of Common Stock obtainable upon exercise of this Warrant so as to protect
      the rights of the holders of the Warrants; provided, except as set forth in
      section 8(d),that no such adjustment pursuant to this Section 8(f) will increase
      the Warrant Exercise Price or decrease the number of shares of Common Stock
      obtainable as otherwise determined pursuant to this Section 8.

     

    (g)  Notices.

     

    (i)  Immediately
      upon any adjustment of the Warrant Exercise Price, the Company will give written
      notice thereof to the holder of this Warrant, setting forth in reasonable
      detail, and certifying, the calculation of such adjustment.

     

    (ii)  The
      Company will give written notice to the holder of this Warrant at least ten
      (10)
      days prior to the date on which the Company closes its books or takes a record
      (A) with respect to any dividend or distribution upon the Common Stock,
      (B) with respect to any pro rata subscription offer to holders of Common
      Stock or (C) for determining rights to vote with respect to any Organic
      Change (as defined below), dissolution or liquidation, provided that such
      information shall be made known to the public prior to or in conjunction with
      such notice being provided to such holder.

     

    (iii)  The
      Company will also give written notice to the holder of this Warrant at least
      ten
      (10) days prior to the date on which any Organic Change, dissolution or
      liquidation will take place, provided that such information shall be made known
      to the public prior to or in conjunction with such notice being provided to
      such
      holder.

     

    Section
      9.  Purchase
      Rights; Reorganization, Reclassification, Consolidation, Merger or
      Sale.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (a)  In
      addition to any adjustments pursuant to Section 8 above, if at any time the
      Company grants, issues or sells any Options, Convertible Securities or rights
      to
      purchase stock, warrants, securities or other property pro rata to the record
      holders of any class of Common Stock (the “Purchase
      Rights”),
      then
      the holder of this Warrant will be entitled to acquire, upon the terms
      applicable to such Purchase Rights, the aggregate Purchase Rights which such
      holder could have acquired if such holder had held the number of shares of
      Common Stock acquirable upon complete exercise of this Warrant immediately
      before the date on which a record is taken for the grant, issuance or sale
      of
      such Purchase Rights, or, if no such record is taken, the date as of which
      the
      record holders of Common Stock are to be determined for the grant, issue or
      sale
      of such Purchase Rights.

     

    (b)  Any
      recapitalization, reorganization, reclassification, consolidation, merger,
      sale
      of all or substantially all of the Company’s assets to another Person or other
      transaction in each case which is effected in such a way that holders of Common
      Stock are entitled to receive (either directly or upon subsequent liquidation)
      stock, securities or assets with respect to or in exchange for Common Stock
      is
      referred to herein as an “Organic
      Change.”
Prior
      to the consummation of any (i) sale of all or substantially all of the Company’s
      assets to an acquiring Person or (ii) other Organic Change following which
      the
      Company is not a surviving entity, the Company will secure from the Person
      purchasing such assets or the successor resulting from such Organic Change
      (in
      each case, the “Acquiring
      Entity”)
      a
      written agreement (in form and substance satisfactory to the holders of Warrants
      representing at least two-thirds (iii) of the Warrant Shares issuable upon
      exercise of the Warrants then outstanding) to deliver to each holder of Warrants
      in exchange for such Warrants, a security of the Acquiring Entity evidenced
      by a
      written instrument substantially similar in form and substance to this Warrant
      and satisfactory to the holders of the Warrants (including an adjusted warrant
      exercise price equal to the value for the Common Stock reflected by the terms
      of
      such consolidation, merger or sale, and exercisable for a corresponding number
      of shares of Common Stock acquirable and receivable upon exercise of the
      Warrants without regard to any limitations on exercise, if the value so
      reflected is less than any Applicable Warrant Exercise Price immediately prior
      to such consolidation, merger or sale). Prior to the consummation of any other
      Organic Change, the Company shall make appropriate provision (in form and
      substance satisfactory to the holders of Warrants representing a
      majority of
      the
      Warrant Shares issuable upon exercise of the Warrants then outstanding) to
      insure that each of the holders of the Warrants will thereafter have the right
      to acquire and receive in lieu of or in addition to (as the case may be) the
      Warrant Shares immediately theretofore issuable and receivable upon the exercise
      of such holder’s Warrants (without regard to any limitations on exercise),
      such shares of stock, securities or assets that would have been issued or
      payable in such Organic Change with respect to or in exchange for the number
      of
      Warrant Shares which would have been issuable and receivable upon the exercise
      of such holder’s Warrant as of the date of such Organic Change (without taking
      into account any limitations or restrictions on the exercisability of this
      Warrant).

     

    Section
      10.  Lost,
      Stolen, Mutilated or Destroyed Warrant.
      If this
      Warrant is lost, stolen, mutilated or destroyed, the Company shall promptly,
      on
      receipt of an indemnification undertaking (or, in the case of a mutilated
      Warrant, the Warrant), issue a new Warrant of like denomination and tenor as
      this Warrant so lost, stolen, mutilated or destroyed.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

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

     

    
      	
              If
                to Holder:

            	
              Cornell
                Capital Partners, LP

            
	 	
              101
                Hudson Street - Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Attention: Mark
                A. Angelo

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile: (201)
                985-8266

            
	 	 
	
              With
                Copy to:

            	
              David
                Gonzalez, Esq.

            
	 	
              101
                Hudson Street - Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile: (201)
                985-8266

            
	 	 
	 	 
	
              If
                to the Company, to:

            	
              Global
                IT Holdings, Inc.

            
	 	
              589
                8th
                Avenue, 18th
                Floor

            
	 	
              New
                York, NY 10018

            
	 	
              Attn:
                Ralph Tuzzolo

            
	 	
              Telephone:
                (212) 983-5630

            
	 	
              Facsimile:
                (212) 687-4347

            
	 	 
	
              With
                a copy to:

            	
              Anslow
                & Jaclin, LLP 

            
	 	
              195
                Route 9 South, Suite 204

            
	 	
              Manalapan,
                NJ 07726

            
	 	
              Attention: Gregg
                E. Jaclin, Esq.

            
	 	
              Telephone: (732)
                409-1212

            
	 	
              Facsimile: (732)
                577-1188

            

    

    

    If
      to a
      holder of this Warrant, to it at the address and facsimile number set forth
      on
Exhibit C
      hereto,
      with copies to such holder’s representatives as set forth on Exhibit C,
      or at
      such other address and facsimile as shall be delivered to the Company upon
      the
      issuance or transfer of this Warrant. Each party shall provide five days’ prior
      written notice to the other party of any change in address or facsimile number.
      Written confirmation of receipt (A) given by the recipient of such notice,
      consent, facsimile, waiver or other communication, (or (B) provided by a
      nationally recognized overnight delivery service shall be rebuttable evidence
      of
      personal service, receipt by facsimile or receipt from a nationally recognized
      overnight delivery service in accordance with clause (i), (ii) or (iii) above,
      respectively.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    Section
      12.  Date.
      The
      date of this Warrant is set forth on page 1 hereof. This Warrant, in all
      events, shall be wholly void and of no effect after the close of business on
      the
      Expiration Date, except that notwithstanding any other provisions hereof, the
      provisions of Section 8(b) shall continue in full force and effect after
      such date as to any Warrant Shares or other securities issued upon the exercise
      of this Warrant.

     

    Section
      13.  Amendment
      and Waiver.
      Except
      as otherwise provided herein, the provisions of the Warrants may be amended
      and
      the Company may take any action herein prohibited, or omit to perform any act
      herein required to be performed by it, only if the Company has obtained the
      written consent of the holders of Warrants representing at least two-thirds
      of
      the Warrant Shares issuable upon exercise of the Warrants then outstanding;
      provided that, except for Section 8(d), no such action may increase the Warrant
      Exercise Price or decrease the number of shares or class of stock obtainable
      upon exercise of any Warrant without the written consent of the holder of such
      Warrant.

     

    Section
      14.  Descriptive
      Headings; Governing Law.
      The
      descriptive headings of the several sections and paragraphs of this Warrant
      are
      inserted for convenience only and do not constitute a part of this Warrant.
      The
      corporate laws of the State of Nevada shall govern all issues concerning the
      relative rights of the Company and its stockholders. All other questions
      concerning the construction, validity, enforcement and interpretation of this
      Agreement shall be governed by the internal laws of the State of New Jersey,
      without giving effect to any choice of law or conflict of law provision or
      rule
      (whether of the State of New Jersey or any other jurisdictions) that would
      cause
      the application of the laws of any jurisdictions other than the State of New
      Jersey. Each party hereby irrevocably submits to the exclusive jurisdiction
      of
      the state and federal courts sitting in Hudson County and the United States
      District Court for the District of New Jersey, for the adjudication of any
      dispute hereunder or in connection herewith or therewith, or with any
      transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any suit, action or proceeding, any claim
      that it is not personally subject to the jurisdiction of any such court, that
      such suit, action or proceeding is brought in an inconvenient forum or that
      the
      venue of such suit, action or proceeding is improper. Each party hereby
      irrevocably waives personal service of process and consents to process being
      served in any such suit, action or proceeding by mailing a copy thereof to
      such
      party at the address for such notices to it under this Agreement and agrees
      that
      such service shall constitute good and sufficient service of process and notice
      thereof. Nothing contained herein shall be deemed to limit in any way any right
      to serve process in any manner permitted by law. 

     

    Section
      15.  Waiver
      of Jury Trial.
      AS
      A MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT, THE
      PARTIES HERETO HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
      RELATED IN ANY WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS
      ASSOCIATED WITH THIS TRANSACTION.

     

    

    REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Warrant to be signed as of the date first set forth
      above.

     

    
      	 	
              GLOBAL
                IT HOLDINGS, INC.

            
	 	 
	 	
              By:      

            
	 	
              Name: 
                Craig Press

            
	 	
              Title: Senior
                Vice President and CEO

            

    

     

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A TO WARRANT

     

    EXERCISE
      NOTICE

     

    TO
      BE EXECUTED 

    BY
      THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

     

    GLOBAL
      IT HOLDINGS, INC.

     

    The
      undersigned holder hereby exercises the right to purchase ______________ of
      the
      shares of Common Stock (“Warrant
      Shares”)
      of
      Global IT Holdings, Inc. (the “Company”),
      evidenced by the attached Warrant (the “Warrant”).
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Warrant.

     

    Specify
      Method of exercise by check mark:

     

    1.
      ___ Cash
      Exercise

     

    (a)
      Payment
      of Warrant Exercise Price.
      The
      holder shall pay the Aggregate Exercise Price of $______________ to the Company
      in accordance with the terms of the Warrant. 

     

    (b)
      Delivery
      of Warrant Shares.
      The
      Company shall deliver to the holder _________
      Warrant
      Shares in accordance with the terms of the Warrant. 

     

     

    2.
      ___ Cashless
      Exercise

     

    (a)
      Payment
      of Warrant Exercise Price.
      In lieu
      of making payment of the Aggregate Exercise Price, the holder elects to receive
      upon such exercise the Net Number of shares of Common Stock determined in
      accordance with the terms of the Warrant. 

     

    (b)
      Delivery
      of Warrant Shares.
      The
      Company shall deliver to the holder _________
      Warrant
      Shares in accordance with the terms of the Warrant. 

     

    

    Date:
      _______________ __, ______

    

    Name
      of
      Registered Holder

    

    By:     

    Name:     

    Title:     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    EXHIBIT
      B TO WARRANT

     

    FORM
      OF WARRANT POWER

     

    FOR
      VALUE RECEIVED,
      the
      undersigned does hereby assign and transfer to ________________, Federal
      Identification No. __________, a warrant to purchase ____________ shares of
      the capital stock of Global IT Holdings, Inc. represented by warrant certificate
      no. _____, standing in the name of the undersigned on the books of said
      corporation. The undersigned does hereby irrevocably constitute and appoint
      ______________, attorney to transfer the warrants of said corporation, with
      full
      power of substitution in the premises.

     

    
      	
              Dated:      

            	 
	 	 
	 	
              By:      

            
	 	
              Name:      

            
	 	
              Title:      

            
	 	 

    

    
 

    
      
         

      

      
        B-1Unassociated Document

    DEBENTURE
      A

     

    NEITHER
      THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
      HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
      SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
      REGISTRATION UNDER RULE 504 OF REGULATION D PROMULGATED UNDER THE U.S.
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND IN COMPLIANCE WITH
      APPLICABLE STATE SECURITIES LAWS.

    

    
      
        	 US $950,000	
                 June
                  30,
                  2005

              

      

    

     

    

    5%
      SECURED CONVERTIBLE DEBENTURE DUE JUNE 29, 2007

    

    THIS
      DEBENTURE of Global IT Holdings, Inc., a corporation organized under the laws
      of
      Nevada (the “Company”) in the aggregate principal amount of Nine Hundred Fifty
      Thousand Dollars (US $950,000), is designated as its $950,000, 5% Secured
      Convertible Debenture due June 29, 2007 (the “Debenture A”).

     

    FOR
      VALUE
      RECEIVED, except as otherwise provided herein, the Company promises to pay
      to
      Highgate House, LLC, a Minnesota limited liability company, or its registered
      assigns (the “Holder”), the principal sum of which Nine Hundred Fifty Thousand
      Dollars ($950,000), on or prior to June 29, 2007 (the “Maturity Date”) and to
      pay interest to the Holder on the principal sum at the rate of five percent
      (5%)
      per annum. Except as otherwise provided herein, interest shall accrue daily
      commencing on the Original Issuance Date (as defined in Section 1 below) in
      the form of cash or common stock of the Company selected by the Holder, until
      payment in full of the principal sum, together with all accrued and unpaid
      interest, has been made or duly provided for. If at any time after the Original
      Issuance Date an Event of Default has occurred and is continuing, interest
      shall
      accrue at the rate of fifteen percent (15%) per annum from the date of the
      Event
      of Default and the applicable cure period through and including the date of
      payment. Interest due and payable hereunder shall be paid to the person in
      whose
      name this Debenture A (or one or more successor Debentures) is registered on
      the
      records of the Company regarding registration and transfers of the Debenture
      A
      (the “Debenture Register”); provided,
      however,
      that
      the Company’s obligation to a transferee of this Debenture A shall arise only if
      such transfer, sale or other disposition is made in accordance with the terms
      and conditions hereof and of the Convertible Debenture Purchase Agreement (the
      “Purchase Agreement”) by and between the Company and the Purchaser (as such term
      is defined in the Purchase Agreement), dated as of June 30, 2005, as the same
      may be amended from time to time. A transfer of the right to receive principal
      and interest under this Debenture A shall be transferable only through an
      appropriate entry in the Debenture Register as provided herein.

     

    This
      Debenture A is secured by all of the assets and property of the Company as
      set
      forth in Exhibit A to the Security Agreement dated the date hereof between
      the
      Company and the Holder.

     

    This
      Debenture A is subject to the following additional provisions:

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

       

    

    Section
      1. Definitions.
      Capitalized terms used and not otherwise defined herein shall have the meanings
      given such terms in the Purchase Agreement. As used in this Agreement, the
      following terms shall have the following meanings:

     

    “Conversion
      Date” shall have the meaning set forth in Section 4(a) hereof. 

     

    “Conversion
      Ratio” means, at any time, a fraction, the numerator of which is the then
      outstanding principal amount represented by the Debenture A plus accrued but
      unpaid interest thereon, and the denominator of which is the conversion price
      at
      such time.

     

    “Fixed
      Conversion Price” shall have the meaning set forth in Section 4(c)i hereof.

     

    “Floating
      Conversion Price” shall have the meaning set forth in Section 4(c)i hereof.

     

    “Notice
      of Conversion” shall have the meaning set forth in Section 4(a) hereof.

     

    “Original
      Issuance Date” shall mean the date of the first issuance of this Debenture A
      regardless of the number of transfers hereof.

     

    Section
      2. Denominations
      of Debenture A.
      The
      Debenture A is exchangeable for an equal aggregate principal amount of
      Debentures of different authorized denominations, as requested by the Holder
      surrendering the same, but shall not be issuable in denominations of less than
      integral multiplies of One Thousand Dollars (US$1,000.00). No service charge
      to
      the Holder will be made for such registration of transfer or
      exchange.

     

    Section
      3. Events
      of Default and Remedies.

     

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

    

    (a) any
      default in the payment of the principal of or interest on this Debenture A
      as
      and when the same shall become due and payable either at the Maturity Date,
      by
      acceleration, conversion, or otherwise;

    

    (b) the
      Company shall fail to observe or perform any other covenant, agreement or
      warranty contained in, or otherwise commit any breach of, this Debenture A,
      and
      such failure or breach shall not have been remedied within five (5) Business
      Days of its receipt of notice of such failure or breach;

    

    (c) the
      occurrence of any material event or breach or default by the Company under
      the
      Purchase Agreement or any other Transaction Document and, if there is a cure
      period, such failure or breach shall not have been remedied within the cure
      period provided for therein; 

    

    (d) the
      Company or any of its Subsidiaries shall commence a voluntary case under the
      United States Bankruptcy Code as now or hereafter in effect or any successor
      thereto (the “Bankruptcy Code”); or an involuntary case is commenced against the
      Company under the Bankruptcy Code and the petition is not controverted within
      thirty (30) days, or is not dismissed within sixty (60) days, after commencement
      of the case; or a “custodian” (as defined in the Bankruptcy Code) is appointed
      for, or takes charge of, all or any substantial part of the property of the
      Company or the Company commences any other proceeding under any reorganization,
      arrangement, adjustment of debt, relief of debtors, dissolution, insolvency
      or
      liquidation or similar law of any jurisdiction whether now or hereafter in
      effect relating to the Company or there is commenced against the Company any
      such proceeding which remains undismissed for a period of sixty (60) days;
      or
      the Company is adjudicated insolvent or bankrupt; or any order of relief or
      other order approving any such case or proceeding is entered; or the Company
      suffers any appointment of any custodian or the like for it or any substantial
      part of its property which continues undischarged or unstayed for a period
      of
      thirty (30) days; or the Company makes a general assignment for the benefit
      of
      creditors; or the Company shall fail to pay, or shall state in writing that
      it
      is unable to pay its debts generally as they become due; or the Company shall
      call a meeting of its creditors with a view to arranging a composition or
      adjustment of its debts; or the Company shall by any act or failure to act
      indicate its consent to, approval of or acquiescence in any of the foregoing;
      or
      any corporate or other action is taken by the Company for the purpose of
      effecting any of the foregoing;

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

    (e) the
      Company shall default in any of its obligations under any mortgage, indenture
      or
      instrument under which there may be issued, or by which there may be secured
      or
      evidenced, any indebtedness of the Company in an amount exceeding One Hundred
      Thousand Dollars ($100,000.00), whether such indebtedness now exists or shall
      hereafter be created and such default shall result in such indebtedness becoming
      or being declared due and payable prior to the date on which it would otherwise
      become due and payable;

    

    (f) if
      the
      Common Stock of the Company becomes listed for trading on the OTCBB, the Company
      shall have its Common Stock deleted or delisted, as the case may be, from the
      OTCBB or other national securities exchange or market on which such Common
      Stock
      is listed for trading or suspended from trading thereon;

    

    (g) notwithstanding
      anything herein to the contrary, but subject to the limitations set forth in
      the
      Debenture A, the Company shall fail to deliver to the Escrow Agent share
      certificates representing the shares of Common Stock to be issued upon
      conversion of the Debenture A within three (3) Business Days after to the
      Company’s receipt of notice from the Escrow Agent to the Company that additional
      shares of Common Stock are required to be placed in escrow pursuant to
      Section 4.13 of the Purchase Agreement, Article 2 of the Escrow Agreement,
      and/or Section 4(b) of this Debenture A;

    

    (h) the
      Company shall issue a press release, or otherwise make publicly known, that
      it
      is not honoring a properly executed and duly delivered Notice of Conversion
      complying with the terms of this Debenture A, the Purchase Agreement and the
      Escrow Agreement, for any reason whatsoever; 

    

    (i) the
      Registration Statement which is the subject of the Registration Rights Agreement
      annexed as Exhibit C to the Purchase Agreement is no longer effective as
      required under the Registration Rights Agreement and the Company does not cause
      such Registration Statement to become effective within Twenty (20) Business
      Days
      of it not being effective; and 

     

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

     

    (j)
       the
      Company issues or enters into an agreement to issue any convertible security,
      any equity line of credit, or any security issued pursuant to Rule 504 of
      Regulation D promulgated under the Securities Act, other than to the Purchaser
      or any of their Affiliates or assigns, during the period commencing on the
      date
      hereof and ending on the earlier of (i) the two year anniversary of the
      Post-Closing Date or (ii) until the principal amount of this Debenture A is
      converted, redeemed or paid in full which ever comes first. 

     

    II.
      (a) If
      any
      Event of Default occurs, and continues beyond a cure period, if any, then the
      Holder may, by written notice to the Company, accelerate all of the payments
      due
      under this Debenture A by declaring all amounts so due under this Debenture
      A,
      whereupon the same shall become immediately due and payable without presentment,
      demand, protest or other notice of any kind, all of which are waived by the
      Company, notwithstanding anything contained herein to the contrary, and the
      Holder may immediately and without expiration of any additional grace period
      enforce any and all of its rights and remedies hereunder and all other remedies
      available to it under applicable law. Such declaration may be rescinded and
      annulled by the Holder at any time prior to payment hereunder. No such
      rescission or annulment shall affect any subsequent Event of Default or impair
      any right consequent thereon. This shall include, but not be limited to the
      right to temporary, preliminary and permanent injunctive relief without the
      requirement of posting any bond or undertaking.

    

    (b) The
      Holder may thereupon proceed to protect and enforce its rights either by suit
      in
      equity and/or by action at law or by other appropriate proceedings whether
      for
      the specific performance (to the extent permitted by law) of any covenant or
      agreement contained in this Debenture A or in aid of the exercise of any power
      granted in this Debenture A, and proceed to enforce the payment of any of the
      Debenture A held by it, and to enforce any other legal or equitable right of
      such Holder.

    

    (c) Except
      as
      expressly provided for herein, the Company specifically (i) waives all rights
      it
      may have (A) to notice of nonpayment, notice of default, demand,
      presentment, protest and notice of protest with respect to any of the
      obligations hereunder or the shares of Common Stock and (B) notice of
      acceptance hereof or of any other action taken in reliance hereon, notice and
      opportunity to be heard before the exercise by the Holder of the remedies of
      self-help, set-off, or other summary procedures and all other demands and
      notices of any type or description except for cure periods, if any; and (ii)
      releases the Holder, its officers, directors, agents, employees and attorneys
      from all claims for loss or damage caused by any act or failure to act on the
      part of the Holder, its officers, attorneys, agents, directors and employees
      except for gross negligence or willful misconduct. 

    

    (d) As
      a
      non-exclusive remedy, upon the occurrence of an Event of Default, the Holder
      may
      convert the remaining principal amount of the Debenture A and accrued interest
      thereon at the lesser of the Fixed Conversion Price or the Floating Conversion
      Price upon giving a Notice of Conversion to the Company. Except as otherwise
      provided herein, the Company shall not have the right to object to the
      conversion or the calculation of the applicable conversion price, absent
      manifest error and the Escrow Agent shall release the shares of Common Stock
      from escrow upon notifying the Company of the conversion.

     

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

     

    III. To
      effectuate the terms and provision of this Debenture A, the Holder may give
      notice of any default to the Attorney-in-Fact as set forth herein and give
      a
      copy of such notice to the Company and its counsel, simultaneously, and request
      the Attorney-in-Fact to comply with the terms of this Debenture A and the
      Purchase Agreement and all agreements entered into pursuant to the Purchase
      Agreement on behalf of the Company.

    

    Section
      4. Conversion.

     

    (a) Except
      as
      otherwise set forth herein or in the Purchase Agreement, the unpaid principal
      amount of this Debenture A shall be convertible into shares of Common Stock
      at
      the Conversion Ratio as defined above, and subject to the Limitation on
      Conversion described in Section 4.19 of the Purchase Agreement, at the option
      of
      the Holder, in whole or in part, at any time, commencing on the Original
      Issuance Date. Such shares of Common Stock shall be without any restriction
      and
      freely tradable pursuant to Rule 504 of Regulation D of the Securities Act
      and/or the Registration Rights Agreement. The Holder shall effect conversions
      by
      surrendering the Debenture to be converted to the Escrow Agent, together with
      the form of notice attached hereto as Appendix I (“Notice of Conversion”)
      in the manner set forth in Section 4(j) hereof. Each Notice of Conversion
      shall specify the principal amount of Debenture A to be converted and the date
      on which such conversion is to be effected (the “Conversion Date”) which date
      shall not be less than one (1) Business Day after the date on which the Notice
      of Conversion is delivered to the Escrow Agent. Subject to the last paragraph
      of
      Section 4(b) hereof, each Notice of Conversion, once given, shall be
      irrevocable. If the Holder is converting less than all of the principal amount
      represented by the Debenture tendered by the Holder in the Notice of Conversion,
      the Company shall deliver to the Holder a new Debenture for such principal
      amount as has not been converted within one (1) Business Day of the Conversion
      Date. In the event that the Escrow Agent holds the Debentures on behalf of
      the
      Holder, the Company agrees that in lieu of surrendering the Debentures upon
      every partial conversion, the Escrow Agent shall give the Company and the Holder
      written notice of the amount of the Debentures left unconverted. Upon conversion
      in full of the Debentures or upon the Maturity Date, the Escrow Agent shall
      return the Debentures and the Escrow Shares, if any, to the Company for
      cancellation.

    

    (b) Not
      later
      than one (1) Business Day after the Conversion Date, the Escrow Agent
      shall deliver to the Holder (i) a certificate or certificates representing
      the
      number of shares of Common Stock being acquired upon the conversion of the
      Debentures, and once the Debentures so converted in part shall have been
      surrendered to the Company, the Company shall deliver to the Holder Debentures
      in the principal amount of the Debentures not yet converted; provided,
      however,
      that
      the Company shall not be obligated to issue certificates evidencing the shares
      of Common Stock issuable upon conversion of the Debentures, until the Debentures
      are either delivered for conversion to the Escrow Agent or the Company or any
      transfer agent for the Debentures or Common Stock, or the Holder notifies the
      Company that such Debentures have been lost, stolen or destroyed and provides
      an
      affidavit of loss and an agreement reasonably acceptable to the Company
      indemnifying the Company from any loss incurred by it in connection with such
      loss, theft or destruction. In the case of a conversion pursuant to a Notice
      of
      Conversion, if such certificate or certificates are not delivered by the date
      required under this Section 4(b), the Holder shall be entitled, upon providing
      written notice to the Company at any time on or before its receipt of such
      certificate or certificates thereafter, to rescind such conversion, in which
      event, the Company shall immediately return the Debentures tendered for
      conversion.

     

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

     

    Subject
      to any limitations set forth in the Purchase Agreement, the Company agrees
      that
      at any time the conversion price of the Debentures are such that the number
      of
      Escrow Shares is less than 500% of the Full Conversion Shares, upon five (5)
      Business Days of the Company’s receipt of notice of such circumstance from the
      Purchaser and/or the Escrow Agent, the Company shall issue share certificates
      in
      the name of the Purchaser and deliver the same to the Escrow Agent, in such
      number that the new number of Escrow Shares is equal to 500% of the Full
      Conversion Shares.

    

    (c) (i) The
      conversion price for the Debenture A in effect on any Conversion Date shall
      be
      the lesser
      of (a)
      one hundred percent (100%) of the average closing bid price per share of the
      Common Stock for the five (5) Trading Days immediately preceding the Closing
      Date (as defined in the Purchase Agreement) (the “Fixed Conversion Price”)
and
      (b)
      seventy five percent (75%) of the lowest closing bid price of the Common Stock
      during the five (5) Trading Days immediately preceding the Conversion Date
      (the
“Floating Conversion Price”). For purposes of determining the closing bid price
      on any day, reference shall be to the closing bid price for a share of Common
      Stock on such date on the Pinksheets LLC (or such other exchange, market, or
      other system that the Common Stock is then traded on), as reported on Bloomberg,
      L.P. (or similar organization or agency succeeding to its functions of reporting
      prices).

     

    (ii) If
      the
      Company, at any time while any of the Debentures are outstanding, (a) shall
      pay a stock dividend or otherwise make a distribution or distributions on shares
      of its Common Stock payable in shares of its capital stock (whether payable
      in
      shares of its Common Stock or of capital stock of any class), (b) subdivide
      outstanding shares of Common Stock into a larger number of shares,
      (c) combine outstanding shares of Common Stock into a smaller number of
      shares, or (d) issue by reclassification any shares of capital stock of the
      Company, the Fixed Conversion Price as applied in Section 4(c)(i) shall be
      multiplied by a fraction, the numerator of which shall be the number of shares
      of Common Stock of the Company outstanding immediately before such event and
      the
      denominator of which shall be the number of shares of Common Stock outstanding
      immediately after giving effect to such event. Any adjustment made pursuant
      to
      this Section 4(c)(ii) shall become effective immediately after the record date
      for the determination of stockholders entitled to receive such dividend or
      distribution and shall become effective immediately after the effective date
      in
      the case of a subdivision, combination or reclassification, provided that no
      adjustment shall be made if the Company does not complete such dividend,
      distribution, subdivision, combination or reclassification.

     

    
      
        
        

      

      
        A-6

        
          

        

      

      
        
        

      

    

     

    (iii) If,
      at
      any time while any of the Debentures are outstanding, the Company issues or
      sells shares of Common Stock, or options, warrants or other rights to subscribe
      for or purchase shares of Common Stock (excluding shares of Common Stock
      issuable upon the conversion of the Debentures or upon the exercise of options,
      warrants or conversion rights granted prior to the date hereof) and at a price
      per share less than the Per Share Market Value (as defined in the Purchase
      Agreement) of the Common Stock at the issue date mentioned below, the Fixed
      Conversion Price shall be multiplied by a fraction, the numerator of which
      shall
      be the number of shares of Common Stock (excluding treasury shares, if any)
      outstanding on the date of issuance of such shares, options, warrants or rights
      plus the number of shares which the aggregate offering price of the total number
      of shares so offered would purchase at such Per Share Market Value, and the
      denominator of which shall be the number of shares of Common Stock (excluding
      treasury shares, if any) outstanding on the date of issuance of such options,
      rights or warrants plus the number of additional shares of Common Stock offered
      for subscription or purchase. Such adjustment shall be made whenever such
      options, rights or warrants are issued (and if such adjustment is made, no
      further adjustment will be made when such options, rights or warrants are
      exercised), and shall become effective immediately after the record date for
      the
      determination of stockholders entitled to receive such options, rights or
      warrants. However, upon the expiration of any options, right or warrant to
      purchase Common Stock, the issuance of which resulted in an adjustment in the
      conversion price designated in Section 4(c)(i) hereof pursuant to this Section
      4(c)(iii), if any such options, right or warrant shall expire and shall not
      have
      been exercised, the Fixed Conversion Price shall immediately upon such
      expiration be recomputed and effective immediately upon such expiration be
      increased to the price which it would have been (but reflecting any other
      adjustments in the conversion price made pursuant to the provisions of this
      Section 4 after the issuance of such rights or warrants) had the adjustment
      of
      the conversion price made upon the issuance of such options, rights or warrants
      been made on the basis of offering for subscription or purchase only that number
      of shares of Common Stock actually purchased upon the exercise of such options,
      rights or warrants actually exercised. There will be no adjustment under this
      Section 4(c)(iii) if Common Stock is issued due to the exercise of (x) employee
      stock options that were issued to such employee, or (y) other options, warrants
      or rights to subscribe for or purchase that, in any case, are issued at an
      exercise or subscription price equal to Per Share Market Value.

    

    (iv) If,
      at
      any time while Debenture A is outstanding, the Company distributes to all
      holders of Common Stock (and not to holders of Debenture A) evidences of Company
      indebtedness or assets, or rights or warrants to subscribe for or purchase
      any
      security (excluding those referred to in Section 4(c)(iii) hereof), then, in
      each such case, the conversion price at which each Debenture then outstanding
      shall thereafter be convertible shall be determined by multiplying (A) the
      Fixed Conversion Price in effect immediately prior to the record date fixed
      for
      determination of stockholders entitled to receive such distribution by a
      fraction, the numerator of which shall be the Per Share Market Value of the
      Common Stock determined as of the record date mentioned above less the then
      fair
      market value at such record date of the portion of such assets or evidence
      of
      indebtedness so distributed applicable to one outstanding share of Common Stock
      as determined by the Board of Directors in good faith and the denominator of
      which shall be the Per Share Market Value of the Common Stock on such record
      date; provided,
      however,
      that in
      the event of a distribution exceeding ten percent (10%) of the net assets of
      the
      Company, such fair market value shall be determined by a nationally recognized
      or major regional investment banking firm or firm of independent certified
      public accountants of nationally recognized standing (which may be the firm
      that
      regularly examines the financial statements of the Company) (an “Appraiser”)
      selected in good faith by the holders of a majority of the principal amount
      of
      the Debentures then outstanding; and provided,
      further,
      that
      the Company, after receipt of the determination by such Appraiser, shall have
      the right to select an additional Appraiser, in which case such fair market
      value shall be equal to the average of the determinations by each such
      Appraiser. In either case the adjustments shall be described in a statement
      provided to the Holder and all other holders of Debentures of the portion of
      assets or evidences of indebtedness so distributed or such subscription rights
      applicable to one share of Common Stock. Such adjustment shall be made whenever
      any such distribution is made and shall become effective immediately after
      the
      record date mentioned above. The Company shall pay all fees and expenses of
      any
      Appraiser selected under this Section 4(c)(iv).

     

    
      
        
        

      

      
        A-7

        
          

        

      

      
        
        

      

    

     

    (v) All
      calculations under this Section 4 shall be made to the nearest 1/1000th of
      a
      cent or the nearest 1/1000th of a share, as the case may be. Any calculation
      equal to or over .005 shall be rounded up to the next cent or share and any
      calculation less than .005 shall be rounded down to the previous cent or
      share.

    

    (vi) In
      the
      event the conversion price is not adjusted pursuant to Section 4(c)(ii) or
      (v),
      within one (1) Business Day following the occurrence of an event described
      therein and, in the case of Section 4(c)(iv), within three (3) Business Days
      following the determination of the fair market value by the Appraiser(s), the
      Holder shall have the right to require the Company to redeem the Debentures
      at
      125% of the Purchase Price and simultaneously pay such amount and all accrued
      interest and dividends to the Holder pursuant to the written instructions
      provided by the Holder. The Company will have one (1) Business Day to make
      the
      appropriate adjustment from the time the Company is provided with written notice
      from the Holder of a failure to comply with this Section 4.

    

    (vii) Whenever
      the Fixed Conversion Price is adjusted pursuant to Section 4(c)(ii),(iii) or
      (iv), the Company shall within one (1) Business Day after the determination
      of
      the new Fixed Conversion Price mail and fax (in the manner set forth in
      Section 4(j) hereof) to the Holder and to each other holder of Debentures,
      a notice (“Company Notice of Conversion Price Adjustment”) setting forth the
      Fixed Conversion Price after such adjustment and setting forth a brief statement
      of the facts requiring such adjustment.

    

    (viii) In
      case
      of any reclassification of the Common Stock, any consolidation or merger of
      the
      Company with or into another person, the sale or transfer of all or
      substantially all of the assets of the Company or any compulsory share exchange
      pursuant to which the Common Stock is converted into other securities, cash
      or
      property, then each holder of Debentures then outstanding shall have the right
      thereafter to convert such Debentures only into the shares of stock and other
      securities and property receivable upon or deemed to be held by holders of
      Common Stock following such reclassification, consolidation, merger, sale,
      transfer or share exchange (except in the event the property is cash, then
      the
      Holder shall have the right to convert the Debentures and receive cash in the
      same manner as other stockholders), and the Holder shall be entitled upon such
      event to receive such amount of securities or property as the holder of shares
      of the Common Stock into which such Debentures could have been converted
      immediately prior to such reclassification, consolidation, merger, sale,
      transfer or share exchange would have been entitled. The terms of any such
      consolidation, merger, sale, transfer or share exchange shall include such
      terms
      so as to continue to give to the Holder the right to receive the securities
      or
      property set forth in this Section 4(c)(viii) upon any conversion following
      such
      consolidation, merger, sale, transfer or share exchange. This provision shall
      similarly apply to successive reclassifications, consolidations, mergers, sales,
      transfers or share exchanges;

     

    
      
        
        

      

      
        A-8

        
          

        

      

      
        
        

      

    

     

    (ix) If:

    
       

      	(A)  	
              the
                Company shall declare a dividend (or any other distribution) on its
                Common
                Stock; or

            

       

       

      	(B)  	
              the
                Company shall declare a special non-recurring cash dividend redemption
                of
                its Common Stock; or

            

       

       

      	(C)  	
              the
                Company shall authorize the grant to all holders of the Common Stock
                rights or warrants to subscribe for or purchase any shares of capital
                stock of any class or of any rights; or

            

       

       

      	(D)  	
              the
                approval of any stockholders of the Company shall be required in
                connection with any reclassification of the Common Stock of the Company
                (other than a subdivision or combination of the outstanding shares
                of
                Common Stock), any consolidation or merger to which the Company is
                a
                party, any sale or transfer of all or substantially all of the assets
                of
                the Company, or any compulsory share exchange whereby the Common
                Stock is
                converted into other securities, cash or property;
                or

            

       

       

      	(E)  	
              the
                Company shall authorize the voluntary or involuntary dissolution,
                liquidation or winding-up of the affairs of the
                Company;

            

       

    

     

    then
      the
      Company shall cause to be filed at each office or agency maintained for the
      purpose of conversion of Debentures, and shall cause to be mailed and faxed
      to
      the Holder and each other holder of the Debentures at their last addresses
      and
      facsimile number set forth in the Debenture Register at least twenty (20)
      calendar days prior to the applicable record or effective date hereinafter
      specified, a notice stating (x) the date on which a record is to be taken
      for the purpose of such dividend, distribution, redemption, rights or warrants,
      or if a record is not to be taken, the date as of which the holders of Common
      Stock of record to be entitled to such dividend, distributions, redemption,
      rights or warrants are to be determined, or (y) the date on which such
      reclassification, consolidation, merger, sale, transfer, share exchange,
      dissolution, liquidation or winding-up is expected to become effective, and
      the
      date as of which it is expected that holders of Common Stock of record shall
      be
      entitled to exchange their shares of Common Stock for securities or other
      property deliverable upon such reclassification, consolidation, merger, sale,
      transfer, share exchange, dissolution, liquidation or winding-up; provided,
      however,
      that
      the failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice.

     

    
      
        
        

      

      
        A-9

        
          

        

      

      
        
        

      

    

     

    (d) If
      at any
      time conditions shall arise by reason of action or failure to act by the
      Company, which action or failure to act, in the opinion of the Board of
      Directors of the Company, is not adequately covered by the other provisions
      hereof and which might materially and adversely affect the rights of the Holder
      and all other holders of Debentures (different or distinguishable from the
      effect generally on rights of holders of any class of the Company’s capital
      stock), the Company shall, at least twenty (20) calendar days prior to the
      effective date of such action, mail and fax a written notice to each holder
      of
      Debentures briefly describing the action contemplated, and an Appraiser selected
      by the holders of majority in principal amount of the outstanding Debentures
      shall give its opinion as to the adjustment, if any (not inconsistent with
      the
      standards established in this Section 4 and the terms of the Purchase
      Agreement and the Debentures), of the conversion price (including, if necessary,
      any adjustment as to the securities into which Debentures may thereafter be
      convertible) and any distribution which is or would be required to preserve
      without diluting the rights of the holders of Debentures; provided,
      however,
      that
      the Company, after receipt of the determination by such Appraiser, shall have
      the right to select an additional Appraiser, in which case the adjustment shall
      be equal to the average of the adjustments recommended by each such Appraiser.
      The Company shall pay all fees and expenses of any Appraiser selected under
      this
      Section 4(d). The Board of Directors of the Company shall make the adjustment
      recommended forthwith upon the receipt of such opinion or opinions or the taking
      of any such action contemplated, as the case may be; provided,
      however,
      that no
      such adjustment of the conversion price shall be made which, in the opinion
      of
      the Appraiser(s) giving the aforesaid opinion or opinions, would result in
      an
      increase of the conversion price above the conversion price then in
      effect.

     

    (e) Subject
      to the terms and limitations set forth in the Debentures and the Purchase
      Agreement, including without limitation, Sections 4.14 thereof, the Company
      covenants and agrees that it shall, at all times, reserve and keep available
      out
      of its authorized and unissued Common Stock solely for the purpose of issuance
      upon conversion of the Debentures as herein provided, free from preemptive
      rights or any other actual contingent purchase rights of persons other than
      the
      Holder of the Debentures, two (2) times such number of shares of Common Stock
      as
      shall be issuable (taking into account the adjustments and restrictions of
      Section 4(c) and Section 4(d) hereof) upon the conversion of the aggregate
      principal amount of the outstanding Debentures. The Company covenants that,
      subject to the limitations set forth in this Section 4(e), all shares of Common
      Stock that shall be issuable upon conversion of the Debentures shall, upon
      issuance, be duly and validly authorized and issued and fully paid and
      non-assessable.

    

    (f) No
      fractional shares of Common Stock shall be issuable upon a conversion hereunder
      and the number of shares to be issued shall be rounded up to the nearest whole
      share. If a fractional share interest arises upon any conversion hereunder,
      the
      Company shall eliminate such fractional share interest by issuing to the Holder
      an additional full share of Common Stock.

    

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

     

    
      
        
        

      

      
        A-10

        
          

        

      

      
        
        

      

    

     

    (h) The
      Debentures converted into Common Stock shall be canceled upon
      conversion.

     

    (i) On
      the
      Maturity Date, the unconverted principal amount of the Debentures and all
      interest due thereon shall convert automatically into shares of Common Stock
      at
      the lesser of the Fixed Conversion Price and the Floating Conversion Price
      as
      set forth in Section 4(c)(i).

     

    (j) Each
      Notice of Conversion shall be given by facsimile or electronic mail to the
      Escrow Agent no later than 4:00 pm New York time on any Business Day. Upon
      receipt of such Notice of Conversion, the Escrow Agent shall forward such Notice
      of Conversion to the Company by facsimile or electronic mail by 6:00 p.m. New
      York time on the day on which the Escrow Agent receives the Notice of
      Conversion, at the facsimile telephone number or electronic mail address and
      address of the principal place of business of the Company. Any such notice
      shall
      be deemed given and effective upon the transmission of such facsimile or
      electronic mail at the facsimile telephone number or e-mail address, as the
      case
      may be, specified in the Purchase Agreement (with printed confirmation of
      transmission). In the event that the Escrow Agent receives the Notice of
      Conversion after 4:00 p.m. New York time or the Company receives the Notice
      of
      Conversion after 6:00 p.m. New York time on such day, or the Holder receives
      the
      Company Notice of Conversion Price Adjustment after 6:00 p.m. New York time,
      any
      such notice shall be deemed to have been given on the next Business Day.

    

    Section
      5. Redemption
      of Debentures.  (a)
      At any time after the Execution Date, so long as no Event of Default has
      occurred and, if a cure period is provided, has not been cured, the Company
      shall have the option to redeem all of the unconverted aggregate principal
      amount of the Debentures, in whole, upon exactly three (3) Trading Days written
      notice thereof given to the Holder (the “Redemption Notice”), at one hundred
      twenty five percent (125%) of the Fixed Price of the Debentures (the “Redemption
      Price”), provided,
      however,
      that
      such option shall only be exercised once by the Company even if such redemption
      fails to occur on the date contained in the Redemption Notice for any reason
      including the Company’s failure to deposit the Redemption Price within the time
      allotted in Section 5(b) hereof. 

     

    (b) By
      5:00
      pm New York time, two (2) Business Days prior to the date fixed for redemption
      in the Redemption Notice, the Company shall deposit the Redemption Price by
      wire
      transfer to the IOLA account of the Escrow Agent. Upon receipt of the Redemption
      Price, on such redemption date, the Escrow Agent shall release the Redemption
      Price to the Holder and return the remaining Debentures to the
      Company.

     

    (c) In
      the
      event that the Company fails to deposit the Redemption Price in the Escrow
      Agent’s IOLA account number within the time allocated in Section 5(b) hereof,
      then the redemption shall be declared null and void.

     

    Section
      6. Intentionally
      Omitted.

     

    Section
      7. Absolute
      Payment Obligation; Limitation on Prepayment.
      Except
      as expressly provided herein, no provision of this Debenture A shall alter
      or
      impair the obligation of the Company, which is absolute and unconditional,
      to
      pay the principal of, and interest on, this Debenture A at the time, place,
      and
      rate, and in the coin or currency, herein prescribed. This Debenture A is a
      direct obligation of the Company. This Debenture A ranks pari passu with all
      other Debentures now or hereafter issued under the terms set forth herein.
      The
      Company may not prepay any portion of the outstanding principal amount on the
      Debentures except in accordance with the Purchase Agreement or Sections 4(c)(i)
      or 5 hereof.

     

    
      
        
        

      

      
        A-11

        
          

        

      

      
        
        

      

    

     

    Section
      8. No
      Rights of Stockholders.
      Except
      as otherwise provided herein or in the Purchase Agreement, this Debenture A
      shall not entitle the Holder to any of the rights of a stockholder of the
      Company, including without limitation, the right to vote on or consent to any
      action, to receive dividends and other distributions, or to receive any notice
      of, or to attend, meetings of stockholders or any other proceedings of the
      Company, unless and to the extent converted into shares of Common Stock in
      accordance with the terms hereof.

    

    Section 9. Loss,
      Theft, Mutilation or Destruction.
      If this
      Debenture A shall be mutilated, lost, stolen or destroyed, the Company shall
      execute and deliver, in exchange and substitution for and upon cancellation
      of a
      mutilated Debenture, or in lieu of or in substitution for a lost, stolen or
      destroyed Debenture, a new Debenture for the principal amount of this First
      Debenture A so mutilated, lost, stolen or destroyed but only upon receipt of
      an
      affidavit of such loss, theft or destruction of such Debenture, and, if
      requested by the Company, an agreement to indemnity the Company in form
      reasonably acceptable to the Company.

    

    Section 10. Governing
      Law.
      This
      Debenture A shall be governed by and construed and enforced in accordance with
      the internal laws of the State of New York without regard to the principles
      of
      conflicts of law thereof. Any action to enforce the terms of this Debenture
      A,
      the Purchase Agreement or any other Transaction Document shall be exclusively
      brought in the state and/or federal courts in the state and county of New York.
      Service of process in any action by the Holder to enforce the terms of this
      Debenture A may be made by serving a copy of the summons and complaint, in
      addition to any other relevant documents, by commercial overnight courier to
      the
      Company at its address set forth in the Purchase Agreement.

    

    Section 11. Notices.
      Any
      notice, request, demand, waiver, consent, approval or other communication which
      is required or permitted to be given to any party hereunder shall be in writing
      and shall be deemed duly given only if delivered to the party personally or
      sent
      to the party by facsimile or electronic mail upon electronic confirmation
      receipt (promptly followed by a hard-copy delivered in accordance with this
      Section 11) or three days after being mailed by registered or certified mail
      (return receipt requested), with postage and registration or certification
      fees
      thereon prepaid, or if sent by nationally recognized overnight courier, one
      day
      after being mailed, addressed to the party at its address as set forth in
      Section 7.3 of the Purchase Agreement or such other address as may be designated
      hereafter by notice given pursuant to the terms of this Section 11.

    

    Section 12.
       Waiver.
      Any
      waiver by the Company or the Holder of a breach of any provision of this
      Debenture A shall not operate as or be construed to be a waiver of any other
      breach of such provision or of any breach of any other provision of this
      Debenture A. The failure of the Company or the Holder to insist upon strict
      adherence to any term of this Debenture A on one or more occasions shall not
      be
      considered a waiver or deprive that party of the right thereafter to insist
      upon
      strict adherence to that term or any other term of this Debenture A in any
      other
      occasion. Any waiver must be in writing.

     

    
      
        
        

      

      
        A-12

        
          

        

      

      
        
        

      

    

    
 

    Section 
      13. Invalidity.
      If any
      provision of this Debenture A is held to be invalid, illegal or unenforceable,
      the balance of this Debenture A shall remain in effect, and if any provision
      is
      held to be inapplicable to any person or circumstance, it shall nevertheless
      remain applicable to all other persons and circumstances.

     

    Section 14. Payment
      Dates.
      Whenever any payment or other obligation hereunder shall be due on a day other
      than a Business Day, such payment shall be made on the next following Business
      Day.

    

    Section 15.  Transfer;
      Assignment.
      This
      Debenture A may not be transferred or assigned, in whole or in part, at any
      time, except in compliance by the transferor and the transferee with applicable
      federal and state securities laws.

    

    Section
      16. Future
      Financing.
      If, at
      any time this Debenture A is outstanding, the Company, or its successors in
      interest due to mergers, consolidations and/or acquisitions (the
“Successors-in-Interest”), is funded an amount equal to or exceeding Five
      Million United States dollars ($5,000,000), the Company or the
      Successors-in-Interest, as the case may be, agrees to pay the Purchaser an
      amount equal to One Hundred Fifty Percent (150%) of the then outstanding
      Debenture (the “Lump Sum Payment”). Upon the Purchaser’s receipt of the Lump Sum
      Payment, any and all remaining obligations then outstanding between the Company
      or the Successors-in-Interest, as the case may be, and Purchaser in connection
      with the Purchase Agreement and this Debenture A shall be deem satisfied, and
      the Purchase Agreement and this Debenture A shall be terminated. This provision
      shall survive both Closing and Post-Closing.

    

    Section 17. Fees
      of Enforcement.
      In the
      event any Party commences legal action to enforce its rights under this
      Debenture A, the non-prevailing party shall pay all reasonable costs and
      expenses (including but not limited to reasonable attorney’s fees, accountant’s
      fees, appraiser’s fees and investigative fees) incurred in enforcing such
      rights.

    

 

    [Signature
      Page Follows]

     

     

    
      
        
        

      

      
        A-13

        
          

        

      

      
        
        

      

    

    
 

    IN
      WITNESS WHEREOF, the Company has caused this instrument to be duly executed
      by
      an officer thereunto duly authorized as of the date first above
      indicated.

     

    
      	 	 	 
	 	GLOBAL
              IT
              HOLDINGS, INC.
	 
 	 
 	 
 
	Attest: 	By:  	/s/ 
	 	
              
Name:
Craig
              Press 
	 	Title:  Chairman
              and Senior Vice President

    

     

     

    
      
        
        

      

      
        A-14

        
          

        

      

      
        
        

      

    

    
 

    APPENDIX
      I

    

    

    NOTICE
      OF CONVERSION

    AT
      THE ELECTION OF THE HOLDER

    

    (To
      be
      Executed by the Registered Holder

    in
      order
      to Convert the Debentures)

    

    Except
      as
      provided by Section 4(b) of the Debentures, the undersigned hereby irrevocably
      elects to convert the attached Debenture into shares of Common Stock, par value
      $0.001 per share (the “Common Stock”), of Global IT Holdings, Inc. (the
“Company”), according to the provisions hereof, as of the date written below. If
      shares are to be issued in the name of a person other than undersigned, the
      undersigned will pay all transfer taxes payable with respect thereto and is
      delivering herewith such certificates and opinions as reasonably requested
      by
      the Company in accordance therewith. A fee of $400 will be charged by the Escrow
      Agent to the Holder for each conversion. No other fees will be charged to the
      Holder, except for transfer taxes, if any.

    

    

      

      
        	
                Conversion
                  calculations:

              	 
	 	
                Date
                  to Effect Conversion

              
	 	 
	 	 
	 	
                Principal
                  Amount of Debentures to be Converted

              
	 	 
	 	 
	 	
                Interest
                  to be Converted or Paid

              
	 	 
	 	 
	 	
                Applicable
                  Conversion Price (Pursuant to Section 4(c)(v))

              
	 	 
	 	 
	 	
                Number
                  of Shares to be Issued Upon Conversion

              
	 	 
	 	 
	 	
                Signature
                  

              
	 	 
	 	 
	 	
                Name

              
	 	 
	 	 
	 	
                Address

              

      

      

    

     

    
      
        
        

      

      
        A-15

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