Document:

SUBSCRIPTION AGREEMENT

         This  Subscription  Agreement  ("Agreement"),  dated as of  November 3,
2004,  between  Mountains  West  Exploration,  Inc.  ,  ("MWEX")  a  New  Mexico
Corporation, and Sky Blue Ventures, LLC (the "Buyer").

                              W I T N E S S E T H:

     A. WHEREAS,  MWEX is a  corporation  duly  organized  under the laws of the
State of New Mexico and Seller is the principal shareholder and creditor.

     B. WHEREAS,  Buyers wish to purchase an aggregate of  12,980,729  shares of
common  stock from MWEX from MWEX (the  "Shares"),  and MWEX desires to sell the
Shares to Buyers pursuant to this agreement.

         NOW, THEREFORE, it is agreed among the parties as follows:

                                   ARTICLE I

                                The Consideration

     1.1 Subject to the conditions  set forth herein,  MWEX shall sell to Buyers
and Buyers shall  purchase post reverse split (post reverse split) common shares
from Seller. The aggregate purchase price for the shares to be paid by Buyers to
Seller is $25,000 (the  "Consideration")  of which  $25,000 is herewith  paid as
full consideration for the purchase of the shares.

                                   ARTICLE II

                         Closing and Issuance of Shares

     2.1 The  subscription  for New  Shares is  granted  by MWEX for  12,980,729
shares to Buyers upon deposit of the  consideration of $25,000 in escrow for the
subscription. The New Shares are hereby subscribed are to be issued immediately.

     2.2 Closing hereunder shall be completed by release from escrow of the cash
consideration, the loan proceeds and share certificates on or before November 4,
2004 at 5:00 p.m. MDT ("Closing  Date") subject to satisfaction of the terms and
conditions set forth herein.  Consideration  may be delivered by Federal Express
or wire  transfers,  and any closing  documents  may be delivered by  facsimile,
Federal Express or other appropriate means.

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                                  ARTICLE III

               Representations, Warranties and Covenants of MWEX

     MWEX and Seller  hereby,  represents,  warrants and  covenants to Buyers as
follows:

     3.1 MWEX is a  corporation  duly  organized,  validly  existing and in good
standing under the laws of the State of New Mexico,  and has the corporate power
and  authority  carry  on  its  business.  The  Articles  of  Incorporation  and
Amendments and Bylaws of MWEX, which will be delivered to Buyers at closing, are
complete and accurate,  and the minute books of MWEX,  copies of which have also
been  delivered to Buyers,  contain a record,  which is complete and accurate in
all  material  respects,  of all  meetings,  and all  corporate  actions  of the
shareholders and Board of Directors of MWEX.

     3.2 The authorized  capital stock of MWEX consists of 50,000,000  shares of
common stock.  There are 37,019,271  shares  (approximately)  of Common Stock of
MWEX  issued and  outstanding  as of date  hereof and will be prior to. All such
shares of capital stock of MWEX are validly issued,  fully paid,  non-assessable
and free of preemptive rights. MWEX has no outstanding warrants, or other rights
to  purchase,  or  subscribe  to,  or  other  securities   convertible  into  or
exchangeable  for  any  shares  of  capital  stock  of  MWEX,  or  contracts  or
arrangements  of any kind  relating  to the  issuance,  sale or  transfer of any
capital stock or other equity  securities of MWEX.  This Agreement has been duly
authorized,  validly executed and delivered on behalf of MWEX and is a valid and
binding  agreement  and  obligation of MWEX  enforceable  against the parties in
accordance  with its terms,  subject to  limitations  on  enforcement by general
principles of equity and by bankruptcy or other laws  affecting the  enforcement
of creditors' rights generally,  and MWEX has complete and unrestricted power to
enter into and to consummate the transactions contemplated by this Agreement.

     3.3 Neither the making of nor the compliance  with the terms and provisions
of this Agreement and  consummation of the transactions  contemplated  herein by
MWEX will  conflict  with or result in a breach or  violation of the Articles of
Incorporation or Bylaws of MWEX, or of any material provisions of any indenture,
mortgage,  deed of trust or other material agreement or instrument to which MWEX
is a party, or of any material provision of any law, statute,  rule, regulation,
or any existing  applicable decree,  judgment or order by any court,  federal or
state regulatory body,  administrative agency, or other governmental body having
jurisdiction  over MWEX, or any of its material  properties  or assets,  or will
result in the creation or imposition of any material lien, charge or encumbrance
upon any  material  property  or  assets  of MWEX  pursuant  to the terms of any
agreement or  instrument  to which MWEX is a party or by which MWEX may be bound
or to which any of MWEX property is subject and no event has occurred with which
lapse of time or action by a third  party could  result in a material  breach or
violation of or default by MWEX.

     3.4   There  is  no  claim,   legal   action,   arbitration,   governmental
investigation or other legal or administrative proceeding, nor any order, decree
or judgment in progress,  pending or in effect, or to the best knowledge of MWEX
threatened  against  or  relating  to  MWEX  or  affecting  any of  its  assets,
properties,  business or capital  stock  (except  lawsuits  with forced  pooling
parties).  There is no  continuing  order,  injunction  or decree of any  court,

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arbitrator or  governmental  authority to which MWEX is a party or by which MWEX
or its assets, properties, business or capital stock are bound.

     3.5 MWEX has accurately prepared and filed all federal, state and other tax
returns  required by law,  domestic and  foreign,  to be filed by it through its
fiscal  2003 year and has paid or made  provisions  for the payment of all taxes
shown to be due and all additional  assessments,  and adequate  provisions  have
been and are reflected in the financial statements of MWEX for all current taxes
and other  charges to which MWEX is subject and which are not  currently due and
payable. None of the Federal income tax returns of MWEX have been audited by the
Internal Revenue Service or other foreign  governmental tax agency.  MWEX has no
knowledge of any additional assessments, adjustments or contingent tax liability
(whether  federal or state)  pending or threatened  against MWEX for any period,
nor of any basis for any such assessment, adjustment or contingency.

     3.6 MWEX has delivered to Buyers  unaudited  financial  statements  for the
period ended June 30, 2004. All such  statements,  herein sometimes called "MWEX
Financial  Statements"  are complete and correct in all material  respects  and,
together  with the  notes to these  financial  statements,  present  fairly  the
financial  position and results of operations of MWEX for the periods  indicated
within the knowledge of MWEX and/or  Seller.  All  financial  statements of MWEX
have been prepared in accordance with generally accepted accounting principles.

     3.7  As of  the  date  hereof,  MWEX,  represents  and  warrants  that  all
outstanding  indebtedness  of  MWEX  is as  shown  on the  financial  statements
attached  hereto (the updated  statements),  except debts shown in June 30, 2004
financial statements, and accruals since December 31, 2003. Any and all accruals
to  officers  and  directors  shall be waived and  released  by each  officer or
director, in writing at closing.

     3.8 Since the dates of the updated MWEX  Financial  Statements,  there have
not been any material adverse changes in the business or condition, financial or
otherwise,  of MWEX within the  knowledge of MWEX and/or  Seller.  MWEX does not
have any liabilities, commitments or obligations, secured or unsecured except as
shown  on  updated  financials   (whether  accrued,   absolute,   contingent  or
otherwise),  and except for accruals, for legal fees and costs,  consulting fees
and costs of this transaction.

     3.9 MWEX is not a party to any contract performable in the future.

     3.10 The  representations  and  warranties of MWEX and Seller shall be true
and correct as of the date hereof.

     3.11 MWEX has delivered to Buyers,  all of its corporate  books and records
for review, and will turn over all original corporate records at closing

     3.12 MWEX has no employee benefit plan in effect at this time.

     3.13 No representation or warranty by MWEX or the Seller in this Agreement,
or any certificate  delivered pursuant hereto contains any untrue statement of a
material  fact or  omits to state  any  material  fact  necessary  to make  such
representation or warranty not misleading.

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     3.14 Buyer has received  copies of Form 10KSB as filed with the  Securities
and  Exchange  Commission  ("SEC")  which  included  audits  for the year  ended
December 31, 2003 and each of its other reports to  shareholders  filed with the
SEC through the period of June 30, 2004. MWEX is a registered  company under the
Securities Exchange Act of 1934, as amended and is current in its filings.

     3.15  MWEX has not made to  Buyers  any  general  solicitation  or  general
advertising regarding the shares of MWEX common stock.

     3.16 MWEX has  incurred  no  liabilities  except as shown on the  financial
statements  or  referenced  in 3.7  hereof  and fees in  conjunction  with  this
transaction.

     3.17 It is a requirement that the New Share Purchase proceeds shall be used
to pay on going reporting and maintenance costs.

                              Procedure for Closing

     4.1 On August 15, the subscription  shall be consummated after satisfaction
of all  conditions  precedent  set forth in Article V and VIII,  and MWEX common
stock certificates for the 12,980,729  Purchase Shares shall be delivered,  upon
receipt of the  Consideration  for the  Subscription,  together with issuance or
delivery of all other items,  agreements,  warranties,  and  representations set
forth in this Agreement.

                                    ARTICLE V

                           Conditions Precedent to the
                          Consummation of the Purchase

     The following are conditions precedent to the consummation of the Agreement
on or before the Closing Date:

     5.1 MWEX shall  have  performed  and  complied  with all of its  respective
obligations  hereunder  which are to be complied  with or performed on or before
the Closing Date.

     5.2 No action,  suit or proceeding shall have been instituted or shall have
been  threatened  before any court or other  governmental  body or by any public
authority to restrain,  enjoin or prohibit the transactions contemplated herein,
or which might subject any of the parties hereto or their  directors or officers
to any material liability,  fine,  forfeiture or penalty on the grounds that the
transactions  contemplated  hereby,  the parties  hereto or their  directors  or
officers, have violated any applicable law or regulation or have otherwise acted
improperly in connection  with the  transactions  contemplated  hereby,  and the
parties  hereto  have been  advised  by  counsel  that,  in the  opinion of such
counsel,  such action, suit or proceeding raises substantial questions of law or
fact which could  reasonably  be decided  adversely  to any party  hereto or its
directors or officers.

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     5.3 The representations and warranties made by MWEX in this Agreement shall
be true as though such  representations and warranties had been made or given on
and as of the Closing Date, except to the extent that such  representations  and
warranties may be untrue on and as of the Closing Date because of changes caused
by transactions suggested or approved in writing by the Buyers.

                                   ARTICLE VI

                           Termination and Abandonment

     6.1 Anything  contained in this Agreement to the contrary  notwithstanding,
the  Agreement  may be  terminated  and abandoned at any time prior to or on the
Closing Date:

     (a)  By mutual consent of parties;

     (b)  By either party,  if any condition set forth in Article V or any other
          Article  relating  to the other party has not been met or has not been
          waived;

     (c)  By Buyers,  if any suit,  action, or other proceeding shall be pending
          or threatened by the federal or a state government before any court or
          governmental agency, in which it is sought to restrain,  prohibit,  or
          otherwise  affect the  consummation of the  transactions  contemplated
          hereby;

     (d)  By Buyers, if there is discovered any material error,  misstatement or
          omission in the representations and warranties of another party;

     (e)  By MWEX,  if the  Subscription  payment  does not  occur,  through  no
          failure to act by MWEX,  on  November 4, 2004,  or if Buyers  fails to
          deliver the consideration required herein;

     (f)  If all of the  outstanding  liabilities  fees and  accruals  cannot be
          settled at closing;

     6.2 Any of the terms or conditions  of this  Agreement may be waived at any
time by the party which is entitled to the benefit  thereof,  by action taken by
its Board of Directors provided;  however,  that such action shall be taken only
if, in the  judgment of the Board of  Directors  taking the action,  such waiver
will not have a materially  adverse  effect on the benefits  intended under this
Agreement to the party waiving such term or condition.

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<PAGE>

                                   ARTICLE VII

                         Continuing Representations and
                            Warranties and Covenants

     7.1  The  respective  representations,  warranties,  and  covenants  of the
parties  hereto and  agreements  of the parties  hereto shall  survive after the
closing under this  Agreement for a period of two years  hereafter in accordance
with the terms thereof.

                                  ARTICLE VIII

                                  Miscellaneous

     8.1 This Agreement  embodies the entire agreement between the parties,  and
there have been and are no agreements,  representations  or warranties among the
parties other than those set forth herein or those  provided for herein,  except
that a companion  document,  the  Reorganization  Agreement,  has been  executed
concurrently which contains numerous warranties and representations.

     8.2  To  facilitate  the  execution  of  this  Agreement,   any  number  of
counterparts  hereof may be executed,  and each such counterpart shall be deemed
to  be  an  original  instrument,  but  all  such  counterparts  together  shall
constitute but one instrument.

     8.3 All parties to this  Agreement  agree that if it becomes  necessary  or
desirable to execute further instruments or to make such other assurances as are
deemed  necessary,  the party  requested  to do so will use its best  efforts to
provide such executed  instruments or do all things necessary or proper to carry
out the purpose of this Agreement.

     8.4 This  Agreement  may not be amended  except by written  consent of both
parties.

     8.5 Any notices,  requests,  or other communications  required or permitted
hereunder shall be delivered  personally or sent by overnight  courier  service,
prepaid, addressed as follows:

To MWEX:          Mountains West Exploration, Inc.
                  P.O. Box 754
                  Trinidad, CO  81082

To Seller:        Mountains West Exploration, Inc.
                  P.O. Box 754
                  Trinidad, CO  81082

To Buyer:         Skye Blue Ventures, LLC
                  2000 Wadsworth Blvd., #179
                  Lakewood, CO 80214

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<PAGE>

or such other  addresses as shall be furnished in writing by any party,  and any
such notice or  communication  shall be deemed to have been given as of the date
received.

     8.6 No press  release or public  statement  will be issued  relating to the
transactions contemplated by this Agreement without prior approval of the Buyers
and  Sellers.  However,  MWEX may issue at any time any press  release  or other
public  statement  it believes on the advice of its counsel it is  obligated  to
issue to avoid liability  under the law relating to  disclosures,  but the party
issuing such press release or public statement shall make a reasonable effort to
give the other party prior  notice of and  opportunity  to  participate  in such
release or statement.

     8.7 This  Agreement  shall be governed by and construed in accordance  with
and  enforced  under  the  laws  of the  state  of  Colorado  applicable  to all
agreements  made  hereunder.  Venue  and  jurisdiction  for  any  legal  actions
hereunder shall be District Court in and for Jefferson County, Colorado.

     8.8 In the event of a breach or  default  of this  Agreement  or any of the
continuing  covenants  hereunder  which  results  in a  party  or  any  effected
shareholder  who  is  a  beneficiary  of a  surviving  or  continuing  covenant,
commencing  legal  action,  the  prevailing  party in such legal action shall be
entitled  to an award of all legal  fees and costs of the  action,  against  the
non-prevailing party.

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     IN WITNESS  WHEREOF,  the parties have executed this Agreement this 3rd day
of November, 2004.

MOUNTAINS WEST EXPLORATION, INC.

By: _________________________________

Name: _______________________________

Title: ________________________________

BUYERS:

Skye Blue Ventures, LLC

By:________________________________

                                       8EXHIBIT 4.1
                                                                     -----------

NEITHER THIS NOTE NOR THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE BEEN
THE SUBJECT OF REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
UNDER THE SECURITIES LAWS OF ANY STATE, AND THE SAME HAVE BEEN (OR WILL BE, WITH
RESPECT TO THE SECURITIES ISSUABLE UPON CONVERSION HEREOF) ISSUED IN RELIANCE ON
EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. NEITHER
THIS NOTE NOR THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE SOLD,
TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT AS PERMITTED
UNDER SUCH SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.

              NONNEGOTIABLE 2% SECURED CONVERTIBLE PROMISSORY NOTE

$____________                                            Ridgefield, Connecticut
_____________ __, 2004

         FOR VALUE RECEIVED, the undersigned, Global Matrechs, Inc., a Delaware
corporation (the "Maker"), hereby promises to pay to ___ (the "Payee") the
principal sum of _____ dollars ($_____) in one installment due on _________ __,
2006 (the "Maturity Date") together with interest from and after the date hereof
at the rate of two percent (2%) per annum computed on the unpaid principal
balance on the basis of a 360-day year. All payments made hereunder shall be
made in immediately available funds. By acceptance of this Note, the Payee
represents, warrants, covenants and agrees that it will abide by and be bound by
its terms. Capitalized terms not otherwise defined herein shall have the meaning
set forth in that certain Securities Purchase Agreement dated November ., 2004
by and between the Maker and the Payee.

         1. Conversion. The Payee shall have the option at any time to convert
all or a portion of the outstanding principal and interest on this Note into a
number of shares of common stock, $0.0001 par value per share (the "Common
Stock") equal to a fraction, the numerator of which shall be the amount of
principal and interest being so converted and the denominator of which shall be
equal to the Conversion Price (the "Conversion Shares"). The "Conversion Price"
shall initially be $0.02.

         2. Restrictions on Conversion. Notwithstanding anything to the contrary
contained herein, the number of Conversion Shares that may be acquired by the
Payee upon any conversion of this Note (or otherwise in respect hereof) shall be
limited to the extent necessary to insure that, following such conversion, the
total number of shares of Common Stock then beneficially owned by such Payee and
its affiliates and any other persons whose beneficial ownership of Common Stock
would be aggregated with the Payee's for purposes of Section 13(d) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), does not
exceed 4.999% of the total number of issued and outstanding shares of Common
Stock (including for such purpose the shares of Common Stock issuable upon such
conversion). For such purposes, beneficial ownership shall be determined in
accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder.

<PAGE>

         3. Prepayment. If at any time the Market Price (as defined below) of
the Maker's Common Stock remains less than $0.03 cents for ten (10) consecutive
trading days, then at the written election of the Payee provided not later than
the 10th calendar day following the last day of such 10 trading day period, the
Maker shall within 60 days of the receipt of such election prepay the principal
amount outstanding at the time of such prepayment plus a premium (a "Prepayment
Premium") equal to 40% of the principal amount being prepaid plus accrued
interest in cash. For the purposes of this Section 3, the "Market Price" shall
equal the closing price per share of the Common Stock on such date as reported
by a nationally recognized stock exchange price determined by the first of the
following clauses that applies: (a) if the Common Stock is then listed or quoted
on the New York Stock Exchange, the American Stock Exchange, the Nasdaq National
Market, the Nasdaq SmallCap Market or the OTC Bulletin Board, the bid price per
share of the Common Stock on the primary market or exchange on which the Common
Stock is then listed or quoted; (b) if prices for the Common Stock are then
reported in the "Pink Sheets" published by the National Quotation Bureau
Incorporated (or a similar organization or agency succeeding to its functions of
reporting prices), the most recent bid price per share of the Common Stock so
reported; or (c) in all other cases, the fair market value of a share of Common
Stock as determined by an independent qualified appraiser selected in good faith
and paid for by the Payee.

         4. Adjustment for Dividends, Distributions, Subdivisions, Combinations,
Mergers, Consolidations or Sale of Assets.

         (a) Manner of Adjustment.

         (i) Stock Dividends, Distributions or Subdivisions. In the event the
Maker shall issue shares of Common Stock in a stock dividend, stock distribution
or subdivision, the Conversion Price in effect immediately before such stock
dividend, stock distribution or subdivision shall, concurrently with the
effectiveness of such stock dividend, stock distribution or subdivision, be
proportionately decreased and the number of shares of Common Stock issuable upon
conversion of this Note shall be proportionately increased.

         (ii) Combinations or Consolidations. In the event the outstanding
shares of Common Stock shall be combined or consolidated, by reclassification or
otherwise, into a lesser number of shares of Common Stock, the Conversion Price
in effect immediately prior to such combination or consolidation shall,
concurrently with the effectiveness of such combination or consolidation, be
proportionately increased and the number of shares of Common Stock issuable upon
conversion of this Note shall be proportionately decreased.

         (iii) Adjustment for Reclassification, Exchange or Substitution. In the
event that the class of securities issuable upon the conversion of this Note
shall be changed into the same or a different number of shares of any class or
classes of stock, whether by capital reorganization, reclassification or
otherwise, then and in each such event the Payee shall have the right thereafter
to convert this Note for the kind and amount of shares of stock and other
securities and property receivable upon such reorganization, reclassification,
or other change, by Payees of the number of shares of the class of securities
into which such Note might have been

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<PAGE>

convertible for immediately prior to such reorganization, reclassification, or
change, all subject to further adjustment as provided herein.

         (iv) Adjustment for Merger, Consolidation or Sale of Assets. In the
event that the Maker shall merge or consolidate with or into another entity or
sell all or substantially all of its assets, this Note shall thereafter be
convertible for the kind and amount of shares of stock or other securities or
property to which a Payee of the number of shares of Common Stock of the Maker
deliverable upon conversion of this Note would have been entitled upon such
consolidation, merger or sale; and, in such case, appropriate adjustment (as
determined in good faith by the Maker's Board of Directors) shall be made in the
application of the provisions set forth in this Section 4 with respect to the
rights and interest thereafter of the Payee of this Note, to the end that the
provisions set forth in this Section 4 shall thereafter be applicable, as nearly
as reasonably may be, in relation to any shares of stock or other property
thereafter deliverable upon the conversion of this Note.

         (b) Certificate as to Adjustments. Upon the occurrence of each
adjustment or readjustment of the Conversion Price pursuant to this Section 4,
the Maker at its expense shall promptly compute such adjustment or readjustment
in accordance with the terms hereof and furnish to the Payee a certificate
setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based.

         (c) Closing of Books. The Maker shall at no time close its transfer
books against the transfer of any shares of Common Stock issued or issuable upon
the conversion of this Note in any manner which interferes with the timely and
proper issuance of such shares.

         5. Miscellaneous.

         (a) Restricted Securities. By acceptance hereof, the Payee understands
and agrees that this Note is a "restricted security" under the federal
securities laws inasmuch as it is being acquired from the Maker in a transaction
not involving a public offering and has not been the subject of registration
under the Securities Act and that under such laws and applicable regulations
such securities may be resold in the absence of registration under the
Securities Act only in certain limited circumstances. The Payee hereby
represents that it is familiar with Rule 144, as promulgated by the Securities
and Exchange Commission under the Securities Act, as currently in effect, and
understands the resale limitations imposed thereby and by the Securities Act.

         (b) Legends. It is understood that this Note shall bear the legend (in
addition to any legends which may be required, in the opinion of the Maker's
counsel, by the securities laws of the state where the Payee is located) set
forth on the first page of this Note.

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<PAGE>

         6. The following shall constitute an "Event of Default":

         a.   The Maker shall default in the payment of principal or interest
              on this Note and same shall continue for a period of twenty (20)
              days; or

         b.   The Maker shall (1) make an assignment for the benefit of
              creditors or commence proceedings for its dissolution; or (2)
              apply for or consent to the appointment of a trustee, liquidator
              or receiver for its or for a substantial part of its property or
              business; or

         c.   A trustee, liquidator or receiver shall be appointed for the
              Maker or for a substantial part of its property or business
              without its consent and shall not be discharged within sixty (60)
              days after such appointment; or

         d.   Any governmental agency or any court of competent jurisdiction at
              the instance of any governmental agency shall assume custody or
              control of the whole or any substantial portion of the properties
              or assets of the Maker and shall not be dismissed within sixty
              (60) days thereafter; or

         e.   Except for any judgments, settlements or related litigations or
              actions disclosed in the Maker's Annual Report on Form 10-K for
              the year ended December 31, 2003, any money judgment, writ or
              warrant of attachment, or similar process in excess of One
              Hundred Fifty Thousand ($150,000) Dollars in the aggregate shall
              be entered or filed against the Maker or any of its properties or
              other assets and shall remain unpaid, unvacated, unbonded or
              unstayed for a period of sixty (60) days; or

         f.   Bankruptcy, reorganization, insolvency or liquidation proceedings
              or other proceedings for relief under any bankruptcy law or any
              law for the relief of debtors shall be instituted by or against
              the Maker and, if instituted against the Maker, shall not be
              dismissed within sixty (60) days after such institution or the
              Maker shall by any action or answer approve of, consent to, or
              acquiesce in any such proceedings or admit the material
              allegations of, or default in answering a petition filed in any
              such proceeding;

Then, or at any time thereafter, and in each and every such case, unless such
Event of Default shall have been waived in writing by the Payee (which waiver
shall not be deemed to be a waiver of any subsequent default) at the option of
the Payee and in the Payee's sole discretion, the Payee may consider all
obligations under this Note immediately due and payable, without presentment,
demand, protest or notice of any kind, all of which are hereby expressly waived
by the Company, anything herein or in any note or other instruments contained to
the contrary notwithstanding, and the Payee may immediately enforce any and all
of the Payee's rights and remedies provided herein or any other rights or
remedies afforded by law. Upon the occurrence of any Event of Default as set
forth herein and during any period that the Company shall have failed to make
payment of any principal or Interest due hereunder, at the option of Payee and
without notice to the Company, the Interest shall be added to the outstanding
principal balance hereof, and the

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<PAGE>

entire outstanding principal balance, as so adjusted, shall bear interest
thereafter until paid at an annual rate of eighteen percent (18%) (the "Default
Rate").

         7. Presentment. Except as set forth herein, the Maker waives
presentment, demand and presentation for payment, notice of nonpayment and
dishonor, protest and notice of protest and expressly agrees that this Note or
any payment hereunder may be extended from time to time by the Payee without in
any way affecting the liability of the Maker.

         8 . All provisions herein made are expressly limited so that in no
event whatsoever, whether by reason of advancement of proceeds hereof,
acceleration of maturity of the unpaid balance hereof or otherwise, shall the
amount paid or agreed to be paid to Payee for the use of the money advanced or
to be advanced hereunder exceed the maximum rate of interest allowed to be
charged under applicable law (the "Maximum Rate"), regardless of whether or not
there has been an acceleration of the payment of principal as set forth herein.
If, from any circumstances whatsoever, the fulfillment of any provision of this
Note or any other agreement or instrument now or hereafter evidencing, securing
or in any way relating to the indebtedness evidenced hereby shall involve the
payment of interest in excess of the Maximum Rate, then, ipso facto, the
obligation to pay interest hereunder shall be reduced to the Maximum Rate; and
if from any circumstance whatsoever, Payee shall ever receive interest, the
amount of which would exceed the amount collectible at the Maximum Rate, such
amount as would be excessive interest shall be applied to the reduction of the
principal balance remaining unpaid hereunder and not to the payment of interest.
This provision shall control every other provision in any and all other
agreements and instruments existing or hereafter arising between the Maker and
Payee with respect to the indebtedness evidenced hereby.

         9. In the event this Note is placed in the hands of an attorney for
collection, or if Payee incurs any costs incident to the collection of the
indebtedness evidenced hereby, the Maker agrees to pay to Payee an amount equal
to all such costs, including without limitation all reasonable attorneys' fees
and all court costs.

         10. Notices.

         (c) Notices to the Payee. Whenever any provision of this Note requires
a notice to be given or a request to be made to the Payee by the Maker, then and
in each such case, any such notice or request shall be in writing and shall be
sent by registered or certified mail, return receipt requested with postage
thereon fully prepaid to the Payee at its address set forth on the first page of
this Note or at such other address as the Payee may from time to time designate
in writing.

         (d) Notices to the Maker. Whenever any provision of this Note requires
a notice to be given or a request to be made to the Maker by the Payee, any such
notice or request shall be in writing and shall be sent by registered or
certified mail, return receipt requested with postage thereon fully prepaid to
the Maker at its address set forth on the signature page or at such other
address as the Maker may from time to time designate in writing.

                                        5
<PAGE>

         11. Construction; Governing Law. The validity and construction of this
Note and all matters pertaining hereto are to be determined in accordance with
the laws of the state of New York without regard to the conflicts of law
principles thereof.

         12. Amendments. Neither this Note nor any of its provisions may be
changed, waived or modified without the written consent of both the Maker and
the Payee.

         13. Successors. This Note shall be a binding obligation of any
successor of the Maker.

                                        6
<PAGE>

         IN WITNESS WHEREOF, the Maker, by its appropriate officers thereunto
duly authorized, has executed this Note as of this __ day of ___________, 2004.

                                         GLOBAL MATRECHS, INC.

                                         By: /s/ Michael Sheppard
                                            -------------------------------
                                         Name: Michael Sheppard
                                              -----------------------------
                                         Title: President
                                               ----------------------------
                                         Address: 90 Grove St., Suite 201
                                                 --------------------------
                                                  Ridgefield, CT 06877
                                                 --------------------------

                                        7

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