Document:

THIRD AMENDED AND RESTATED MARKETING AGREEMENT

    
      

    
EXHIBIT
    10.1
    THIRD
      AMENDED AND RESTATED MARKETING AGREEMENT

    

    This
      THIRD AMENDED AND RESTATED MARKETING AGREEMENT (the "Agreement") is entered
      into
      as of the 28th
      day of
      August, 2006 by and between SunnComm International, Inc., a Nevada corporation
      with a principal place of business at 668 North 44th Street, Suite 248, Phoenix,
      Arizona 85008 ("SunnComm") and MediaMax Technology Corporation, a Nevada
      corporation with a principal place of business at 668 North 44th Street, Suite
      241, Phoenix, Arizona 85008 ("MM"). 

    

    WHEREAS,
      the parties hereto are parties to a Marketing Agreement regarding the subject
      matter hereof dated February 2, 2004 (the "Original Agreement") and a First
      Amended and Restated Exclusive Marketing Agreement regarding the subject matter
      hereof dated June 11, 2005 (the "First Amendment") and a Second Amended and
      Restated Exclusive Marketing Agreement regarding the subject matter hereof
      dated
      September 21, 2005 (the "Second Amendment");

    

    WHEREAS,
      the parties have agreed to amend and restate the Original Agreement, as amended
      and restated by the First and Second Amendments, in its entirety as set forth
      herein, provided that this Agreement shall become retroactively effective as
      of
      July 1, 2006;

    

    WHEREAS,
      SunnComm has created certain products known as MediaMax, MediaCloQ, MusicMail,
      Perfect Placement, CDMX, IPT (InMOD Powered by TranzByte), OctiPod and
      All«Play,
      as
      more fully described herein, which are proprietary to SunnComm;

    

    WHEREAS,
      in furtherance of the marketing of SunnComm's products, SunnComm desires
      to engage MM to provide SunnComm with the marketing services described
herein,
      and MM desires to provide such services to MM; and

    

    WHEREAS,
      the parties have executed an Agreement and Plan of Merger (the "Merger
      Agreement") on June 11, 2005,

    

    NOW,
      THEREFORE, in consideration of the anticipated MM revenue associated with the
      sale of SunnComm’s newest products and in consideration of their mutual promises
      set forth below and other valuable consideration, the parties agree as
      follows:

    

    

    1.
      Definitions. For purposes of this Agreement, the following terms shall have
      the
      meanings set forth below:

    

    (a)
      "Customers" shall mean those persons and entities who license one or
more
      Products from SunnComm or MM.

    

    (b)
      "Products" shall mean the object code version of the products described
on
      Schedule A to this Agreement and any other products which at any time and
from
      time
      to time after the date hereof SunnComm owns, develops or otherwise has
the
      right
      to license in the manner provided herein, with all documentation provided
      with the products and any updates or enhancements to the products that
SunnComm
      generally releases to its customers.

    

    (c)
      "Trademarks" shall mean the trademarks and service marks listed on Schedule
      B to this Agreement and any other names, designations, trademarks, and
service
      marks used from time to time by SunnComm in connection with the
      Products.

    

    (d)
      Any
      other capitalized terms used herein and not defined herein shall have
      the
      meanings assigned to them in the Merger Agreement.

    

    2.
      Effectiveness. This Agreement shall become effective as of July 1, 2006. The
      terms, conditions, rights and obligations set forth in the Original Agreement,
      as amended by the First and Second Amendments, shall be superseded by this
      Agreement.

    
      
        
        

      

      
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    3.
      Appointment; Licenses.

    

    3.1
      Appointment. Subject to the terms and conditions of this Agreement, SunnComm
      hereby appoints MM, and MM hereby accepts such appointment and agrees
to
      act,
      as the marketing representative of the Products throughout the
      world.

    

    3.2
      Grant
      and Term of License to MM. Subject to the terms and conditions of this
      Agreement, SunnComm hereby grants to MM, and MM hereby accepts, the following
      nontransferable licenses:

    

    (a)
      an
      irrevocable worldwide license to promote and market the Products, including
      any
      and all modifications, corrections, improvements and enhancements of the
      Products and any materials and documentation provided for use in connection
      with
      the Products for a term of five years after the effective date of this Agreement
      (the date on which the entirety of this Agreement becomes effective
      pursuant to Section 2 hereof); and

    

    (b)
      a
      non-exclusive license to use the Products solely for the following purposes:
      (i) demonstrating the operation and capabilities of the Products to prospective
      Customers, and (ii) training MM's marketing and support personnel.

    

    3.3
      Covenants and Duties of MM.

    

    (a)
      Promotion of Products. MM will use its best efforts to promote and maximize
      the licensing and use of the Products throughout the world. In furtherance
      of, but without limiting the generality of the foregoing, MM agrees to:

    

    (i)
      diligently seek out prospective licensees for the Products;

    

    (ii)
      diligently conduct demonstrations of Products;

    

    (iii)
      assist SunnComm in conducting trade shows and sales promotional campaigns;

    

    (iv)
      assist SunnComm in assessing customer-requested modifications and improvements
      to the Products;

    

    (v)
      assist SunnComm in the design, development and production of English language
      advertising and marketing materials generally released by SunnComm relating
      to
      the Products;

    

    (vi)
      distribute advertising and marketing literature supplied by SunnComm
      in accordance with Section 3.4(a) of this Agreement;

    

    (vii)
      in
      all correspondence or other dealings relating to or concerned with
      the
      Products, clearly indicate that it is acting as marketing representative
      and not as author or developer of the Products; and

    

    (viii)
      inform SunnComm promptly of any information received by MM which is
      likely
      to be of interest, use or benefit to SunnComm relating to marketing,
      support or development of the Products.

    

    (b)
      Sales
      Approach; Agreements with Customers. MM will typically be responsible for making
      the initial presentation of Products to Customers. MM and SunnComm will
      determine by mutual agreement when it is appropriate for SunnComm personnel
      to
      participate in sales opportunities. In no event shall MM purport to, or
      represent itself as having the authority to, make commitments on behalf of
      SunnComm.

    
      
        
        

      

      
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    (c)
      Other
      Products. MM agrees that, during the term of this Agreement, it will not market,
      distribute or recommend products that are competitive with the Products
      ("Competing Products") or work with any other company with respect to
Competing
      Products.

    

    (d)
      Trial
      Licenses. MM shall not provide trial or evaluation copies of the Products
      to Customers or others without the prior written consent of SunnComm.
All
      trial
      or evaluation copies of the Products authorized by SunnComm shall be
provided
      in accordance with the terms of this Agreement.

    

    (e)
      Adverse Comments. MM agrees that during the term of this Agreement and
thereafter,
      MM shall not comment in a negative fashion about SunnComm or any of the
      Products or services provided hereunder.

    

    3.5
      Covenants and Duties of SunnComm.

    

    (a)
      Provision of Marketing Materials. SunnComm will provide to MM, at no
cost
      to
      MM, copies of English language advertising and marketing materials generally
      released by SunnComm relating to the Products ("Marketing Materials")
for
      distribution and use by MM in accordance herewith. MM may make and distribute
      a reasonable number of copies of the then-current versions of any Marketing
      Materials delivered to MM by SunnComm, provided that MM shall not use
or
      distribute any Marketing Materials identified as rescinded by SunnComm. MM
      may
      translate the Marketing Materials into any other language or languages as
necessary
      to effectively market the Products.

    

    (b)
      Provision of Products. Upon execution of this Agreement, SunnComm shall
provide
      to MM one copy of each of the Products for use in accordance with this
Agreement
      and shall provide to MM one copy of all additional Products at the time
      of
      development.

    

    (c)
      New
      Versions. SunnComm may from time to time and at its sole discretion release
      a
      new version (the "New Version") of any Product or Products, which new
version
      shall supersede the prior version (a "Superseded Version"). In the event
that
      SunnComm releases a New Version, SunnComm may cease to maintain or support
      the
      Superseded Version at any time after ninety (90) days following the release
      of
      the
      New Version. Upon notice to MM by SunnComm of the availability of the New
Version,
      MM may not market the Superseded Version without the prior written approval
      of SunnComm.

    

    (d)
      Updates; New Products. SunnComm shall promptly provide MM with all updates,
      corrections, enhancements, and new versions (each, a "New Version," which
      supersedes a "Superseded Version") of the Products for purposes of exploitation
      pursuant to the terms of this Agreement. In the event any Products become
      part of a "bundle," are "displaced" by a similar product, are packaged
with
      additional products such that such Product(s) are no longer offered as a
separate
      product, are renamed, or are unbundled into separate products, such new
or
      other
      products shall automatically be deemed to be Products covered by this
Agreement.
      In the event that SunnComm releases a New Version, SunnComm may cease
to
      maintain or support the Superseded Version at any time after ninety (90) days
      following
      the release of the New Version. Upon notice to MM by SunnComm of the
availability
      of the New Version, MM may not market the Superseded Version without
      the prior written approval of SunnComm. All new products developed by
SunnComm
      which are in any way related to the Products shall automatically be deemed
      "Products" hereunder without any further action by either party
      hereto.

    

    (e)
      Marketing Support. SunnComm will provide reasonable assistance to support
      MM's marketing efforts. Without limiting the generality of the foregoing,
      SunnComm will (i) attend sales calls and/or presentations with MM as
reasonably
      requested by MM and agreed to by SunnComm in connection with the presentation
      of Products; (ii) provide reasonable support and aid in any response
      to a request for a proposal to which a response is prepared by MM involving
      one or more Products; (iii) provide reasonable support and assistance
with
      any
      field trial of one or more Products; and (iv) keep MM reasonably informed
      of the status of significant product enhancements or new
      products.

    
      
        
        

      

      
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    3.6
      Installation, Training and Support. SunnComm shall be responsible for
installation
      of all Products, training of the Customer, maintenance of Products and
      systems used in connection with the products, and support for the Products.
      SunnComm
      shall deal directly with each Customer for purposes of providing and
supporting
      the Products from and after the time a Customer Agreement is reached
with
      each
      such Customer.

    

    3.7
      Prices, Licensing Fees and Royalties.

    

    (a)
      Price. Each Customer Agreement shall provide for prices for Products as
determined
      by SunnComm.

    

    (b)
      Licensing Fees and Royalties. 

    

    (i)
      Initial License Fee. MM has previously paid to SunnComm an initial 
license
      fee in the amount of $2,030,000 pursuant to the Original Agreement.

    

    (ii)
      Amount of Royalty Payments. SunnComm shall pay royalties to MM in an amount
      equal to 40% of the Gross Licensing Revenues, (determined in accordance with
      Generally Accepted Accounting Principles consistently applied) realized on
      any
      and all sales or sublicenses of any Products or future developments thereto.
      

    

    (iii)
      Minimum Monthly Royalty. Effective July 1, 2006 MM shall not be required to
      pay
      a minimum monthly royalty to SunnComm. MM will pay SunnComm a monthly
      administrative support fee of Twelve Thousand Dollars ($12,000). 

    

    (c)
      Payment. Each Customer Agreement shall provide for payment by the Customer
      to
      SunnComm. SunnComm shall be responsible for collection of all fees from
      Customers. SunnComm shall remit royalties due to MM monthly and reconcile with
      MM on a quarterly basis, within thirty (30) days after the end of each calendar
      quarter, with a detailed accounting of the calculation of the amounts
      remitted.

    

    3.8
      Records, Right to Audit.

    

    (a)
      SunnComm Reports. SunnComm shall report to MM the following
      information:

    

    (i)
      within thirty (30) days after the end of each calendar  quarter,
      a list of all Products licensed to Customers And the Gross Licensing 
Revenues
      received during the preceding quarter;

    

    (ii)
      on a
      quarterly basis, a rolling forecast of orders for each Product;
      and

    

    (iii)
      such other information relating to the marketing of the Products
      as MM shall reasonably request from time to time.

    

    (b)
      Business Records; Right to Audit and Copy. During the term of this Agreement
      and for a period of two (2) years thereafter, SunnComm shall maintain
accurate
      records relating to its performance of its obligations under this Agreement
      ("Business Records"). During the later of five (5) years thereafter or
until
      SunnComm's obligation to MM is paid in full, MM or its designee shall have
      the
      right, at its own expense and under reasonable conditions of time and place,
      to
      from
      time to time audit the Business Records. In the event of judicial or
governmental
      order or decree, SunnComm shall immediately make copies of the Business
      Records available to MM either at SunnComm's principal place of business
      or by forwarding such copies to MM, as instructed by MM.

    
      
        
        

      

      
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    3.8
      Assignment of Revenues. In consideration of the mutual covenants contained
      herein, SunnComm hereby assigns to MM in accordance with Section 3.7
of
      this
      Agreement, in perpetuity, all revenues derived from the following:

    

    (a)
      that
      certain Software Licensing Agreement dated January 12, 2004, by and
      between SunnComm, as Licensor and Immediatek, Inc. as Licensee; and

    

    (b)
      other
      Agreements or contracts for revenue which SunnComm has or may obtain through
      the
      direct or indirect efforts of MM, until its obligations under Section 3.7 (c)
      are fulfilled.

    

    4.
      Previous Agreements Superseded. Upon effectiveness, this Agreement shall amend
      and restate in its entirety the Exclusive Marketing Agreement dated February
      2,
      2004 between the parties hereto, which shall be superseded hereby. Upon
      execution, this Agreement supersedes the First Amended and Restated Marketing
      Agreement dated June 11, 2005. Upon execution, this Agreement supersedes the
      Second Amended and Restated Marketing Agreement dated September 21,
      2005.

    

    5.
      Confidentiality; Publicity.

    

    5.1
      Confidential Information. The confidentiality provisions of this Section
      5
      shall apply to all confidential and proprietary information disclosed
by
      the
      parties to each other orally or in writing, including information disclosed
      prior to the date hereof, with respect to their respective businesses,
operations
      and proprietary technologies ("Confidential Information"); provided,
however,
      that for purposes of this Agreement, Confidential Information shall be
deemed
      not to include information which at the time of disclosure or thereafter
(a)
      is
      generally available to the public (other than as a result of a disclosure
by
      the
      receiving party), (b) is available to the receiving party on a non-confidential
      basis from a source other than the disclosing party, provided such
      source is not and was not bound by a confidentiality agreement with the
disclosing
      party or otherwise prohibited from transmitting such information to

    the
      receiving party by a contractual, legal or fiduciary obligation, (c) has
been
      independently developed by the receiving party, as evidenced by its written
      records,
      or (d) which at the time of disclosure, and with respect to such disclosure
      only, is required to be disclosed pursuant to a requirement of law.

    

    5.2
      Nondisclosure. Each party agrees, in addition to all the other protections
      provided in this Agreement, to limit disclosure of competitively 
sensitive
      information to those members of its senior management team and those
Representatives
      (as hereinafter defined) whose evaluation or knowledge of such information
      is reasonably required with respect to the potential business transaction(s).
      MM and SunnComm mutually agree to hold each other's Confidential Information
      in strict confidence, to use it only for the purpose of pursuing a potential
      business transaction between them, and not to disclose such Confidential
      Information to any third party, except as provided herein, and to use
      its
      best efforts to protect such onfidential Information. MM and SunnComm
may
      disclose each other's Confidential Information to their respective employees,
      accountants, financial advisors, outside counsel and other representatives
      with a bona fide need to know (collectively, "Representatives"), provided
      that prior to disclosing Confidential Information or any information
described
      in Section 5.3 below to a Representative, MM or SunnComm, as the case
may
      be,
      shall inform such Representative of the requirements of this Agreement
and
      obtain from such Representative his or her agreement to be bound thereby.

    
5.3
      Nondisclosure of Negotiations. Without the prior written consent of the
other
      party, and subject to Section 5.4 below, MM and SunnComm will not, and
will
      direct their respective Representatives not to, disclose to any third party
      (other
      than a Representative in accordance with Section 5.2 above or to potential
      investors in MM or SunnComm in connection with an offering of securities
      of such company) either the fact that any investigations, discussions
or
      negotiations are taking place concerning a potential business transaction
between
      them, or that each of them has requested or received information from
the
      other
      party, or any of the terms, conditions or other facts with respect to
any
      such
      potential business transaction, including the status
      thereof.

    
      
        
        

      

      
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    5.4
      Required Disclosures. If MM or SunnComm or any of their respective Representatives
      is required by law to disclose any of the other party's Confidential
      Information or any of the terms, conditions or other facts with respect
      to the potential business transaction between MM and SunnComm, the party
required
      to make such disclosure will promptly notify the other party of such
requirement
      prior to making the disclosure. MM and SunnComm will then confer and
use
      reasonable, good faith efforts to agree on a form and terms of disclosure
reasonably
      acceptable to both MM and SunnComm in light of the circumstances under
      which the disclosure is required to be made, provided that if following
such
      notice and conferring MM and SunnComm are unable to agree on a mutually
acceptable
      form and terms of disclosure, then the party making the disclosure shall
      have no liability to the other party to the extent such disclosure is
required
      by law provided such party makes reasonable efforts to obtain an appropriate
      protective order or other reliable assurance that confidential

    treatment
      will be accorded the other party's Confidential Information by the tribunal
      requiring disclosure.

    

    5.5
      No
      Representations. MM and SunnComm understand and acknowledge that neither
      party is making any representations or warranties, express or implied,
as
      to the
      accuracy or completeness of the Confidential Information, and neither
MM,
      SunnComm nor the officers, directors, employees, stockholders, owners,
affiliates
      or agents of either will have any liability to the party receiving Confidential
      Information resulting from such party's use of or reliance on the Confidential
      Information. Only those representations or warranties that are made in
      a
      definitive agreement between MM and SunnComm when, as, and if it is executed,
      and subject to such limitations and restrictions as may be specified
in
      such
      agreement, will have any legal effect.

    

    5.6
      Return or Destroy. Upon the written request of the other party, MM or
SunnComm,
      as the case may be, shall return to the disclosing party, within ten
days,
      all
      Confidential Information and all copies thereof if in written or other
tangible
      form. Where impractical to return copies, such copies shall be destroyed.
      Within such ten-day period, if requested by the disclosing party, an
affidavit
      of the receiving party, duly sworn by an officer of such party, shall
be
      delivered to the disclosing party attesting to the return and destruction of
      all
      Confidential Information.

    

    5.7
      Publicity. Except to the extent required by applicable securities laws,
neither
      MM nor SunnComm shall, except with the prior written consent of the other
      party hereto, make any public announcement regarding the execution of this
      Agreement
      or make use of or mention of SunnComm or MM's or any of their respective
      clients' name, logo, or other trademarks, including, but not limited
to,
      in
      any press release, marketing materials, website, or any other communications
      written or otherwise.

    

    6.
      SunnComm Warranties. SunnComm represents and warrants to MM that:

    

    (a)
      Rights. SunnComm has the right to enter into this Agreement and grant
to
      MM the
      rights granted herein.

    

    (b)
      Non-Infringement. SunnComm warrants that the Products, as delivered by
SunnComm,
      do not infringe on any copyright, patent, or trade secret, and that SunnComm
      possesses full and sufficient right to license the use of the Products
under
      this Agreement.

    

     

    
      
        
        

      

      
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    (c)
      Limited Warranty. For a period of thirty (30)
      days from the date of delivery
      to the Customer the Products will perform substantially in accordance
with
      the
      functional specifications set forth in the documentation provided with
such
      Products. SunnComm's entire liability and the Customer's sole remedy under
      this
      warranty shall be to require SunnComm to use reasonable efforts to repair
or
      replace the nonconforming Product. Any replacement Products will be warranted
      for
      the
      remainder of the original warranty period or thirty (30) days from the
date
      of
      receipt by the Customer, whichever is longer. SunnComm shall have no
obligation
      under this limited warranty unless a written claim for breach of warranty is
      received by SunnComm within ten (14) days after the end of the applicable
      warranty period.

    

    7.
      Limitation of Liability.

    

    In
      no
      event shall SunnComm be liable for special, incidental, consequential or
punitive
      damages, including, without limitation, any damages resulting from loss
of
      data,
      loss of profits, loss of business or loss of goodwill arising out of or
in
      connection with this Agreement or the performance of the Products, whether
      or
not
      SunnComm or its licensors has been advised of the possibility of such
damages.

    

    8.
      Indemnification.

    

    8.1
      Indemnification by MM. MM shall indemnify and hold harmless SunnComm
and
      its
      officers, directors, employees and agents, from and against any and all
claims,
      demands, liabilities, losses, costs and expenses (including reasonable
attorneys
      fees and any fees of consulting professionals) of any kind whatsoever
levied
      against or incurred by SunnComm, its officers, directors, employees or
agents,
      arising directly or indirectly out of conduct of MM outside the scope of
this
      Agreement or MM's failure to perform any of its obligations under this
Agreement.

    

    8.2
      Indemnification by SunnComm. SunnComm shall indemnify and hold harmless
MM
      and
      its officers, managers, members, employees and agents, from and against
any
      and
      all claims, demands, liabilities, losses, costs and expenses (including
reasonable
      attorneys fees and any fees of consulting professionals) of any kind
whatsoever
      levied against or incurred by MM, its officers, directors, employees
or
      agents, arising directly or indirectly out of conduct of SunnComm outside the
      scope
      of
      this Agreement or SunnComm's failure to perform any of its obligations
under
      this Agreement.

    

    8.3
      Infringement Indemnity. Each party hereto shall immediately notify the
other
      party of any infringements of rights in the Products which come to their
attention.
      SunnComm shall defend or, at its option, settle, any claim, action or
proceeding
      brought against MM that any Product infringes any United States patent,
      copyright or trade secret, and shall indemnify MM against all damages
and
      costs
      finally awarded against MM in any such action or proceeding which results
      from any such claim. SunnComm shall have no liability under this Section
8.3
      unl
      ess MM (a) promptly notifies SunnComm in writing of the claim, action or
proceeding,
      (b) gives SunnComm full authority, information and assistance to defend
      such claim, action or proceeding, and (c) gives SunnComm sole control of
the
      defense and settlement of such claim, action or proceeding and all negotiations
      relating thereto. MM retains the right to be present and represented
      by counsel, at its own expense, at all times during the litigation and/or
      other discussions related to the proceedings. If a Product or any part
thereof
      becomes, or in SunnComm's opinion is likely to become, the subject of a
valid
      claim of infringement or the like under any United States patent, copyright
      or trade secret law, SunnComm shall have the right, at its option and
expense,
      either to obtain a license permitting the continued use of the Product
or
      such
      part, to replace or modify it so that it becomes non-infringing, or to
terminate
      the license granted herein to market the Product. SunnComm shall have
no
      liability hereunder for any costs incurred or settlement entered into without
      its
      prior
      written consent. SunnComm shall have no liability hereunder with respect
      to any claim based upon (a) the combination of the Product with other
products
      not furnished by SunnComm or (b) any addition or modification to the
Product
      by any person or entity other than SunnComm.

    
      
        
        

      

      
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    9.
      Term
      and Termination.

    

    9.1
      Term.
      The term and effectiveness of this Agreement shall commence upon the effective
      date of July 1, 2006 and shall continue for a term of five years after the
      effective date of this Agreement (the date on which the entirety of this
      Agreement becomes effective pursuant to Section 2 hereof), unless earlier
      terminated in accordance with this Section 9 (the "Term") (and the parties
      hereby acknowledge that the following termination provisions apply only from
      and
      after the date of effectiveness of this Agreement). 

    

    9.2
      Termination for Default. Either party may, at its option, terminate this
      Agreement effective upon written notice to the other party if the other party
      has materially breached any provision of this Agreement and has failed to cure
      the breach within thirty (30) days after receipt of written notice of the
      breach. Notwithstanding the foregoing, if either party shall fail to fulfill
      any
      of its material obligations hereunder and the other party has previously sent
      two notifications to such party pursuant to this Section 9.2 of a failure to
      fulfill the same or similar obligations, the other party may, despite any remedy
      or cure of such breaches in the past by the defaulting party, terminate this
      Agreement by giving written notice of termination to the defaulting party,
      effective immediately upon its sending. 

    

    9.3
      Termination for Insolvency. SunnComm may terminate this Agreement upon
written
      notice to MM if MM is liquidated or dissolved, or becomes insolvent, or
suffers
      a
      receiver, administrator or trustee to be appointed for it or any of its
      undertakings or assets, or is deemed to be unable to pay its debts or shall
      cease
      to
      carry on business, or makes a general assignment for the benefit of its
creditors
      or institutes or has instituted against it any proceeding under any law
      relating to bankruptcy or insolvency or the reorganization or relief of
debtors.

    

    9.4
      Effect of Termination. Upon termination of this Agreement for any reason,
      MM shall immediately cease (i) marketing the Products, and (ii) using
the
      Marketing Materials. The termination of this Agreement shall not affect or
      terminate the SunnComm’s payment obligations as set forth in Section 3.7(c) of
      this Agreement.

    

    9.5
      Effect of Termination on Customers. Any termination of this Agreement
shall
      not
      affect any Customer Agreement, as long as the Customer is not in breach
      of
      such Agreement.

    

    9.6
      Return of Promotional Material and Confidential Information. Within five
      days
      after expiration or termination of this Agreement, MM shall promptly
submit
      a
      current sales report to SunnComm a report for the period from the date of the
      last such report through the date of expiration or termination, (ii) return
      to
      SunnComm all copies of any Products, Confidential Information and Marketing
      Materials, (iii) to the extent any such Products, Confidential Information
      or
      Marketing Material can not be returned to SunnComm, erase or destroy all copies
      of such Products, Confidential Information and Marketing materials under MM's
      control, including all copies that are fixed or running in machines controlled
      by MM, and (iv) have an authorized representative of MM certify in writing
      to
      SunnComm that MM has complied with the requirements of this
      paragraph.

    

    10.
      Dispute Resolution.

    

    10.1
      Matters Covered. Any dispute, controversy or claim between the parties
arising
      out of this Agreement, including any dispute as to the existence,  construction,
      validity, interpretation, enforceability or breach of this Agreement
      (the "Dispute"), shall be exclusively and finally resolved as set forth
      hereafter.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    10.2
      Meeting; Mediation. In the event of any such Dispute, a meeting (the
"Meeting")
      shall be held in Phoenix, Arizona promptly between the parties, attended
      by individuals with decision-making authority regarding the Dispute to
attempt
      in good faith to negotiate a resolution of the Dispute. If within thirty
(30)
      days
      after such Meeting the parties have not succeeded in resolving the Dispute,
      then the parties shall initiate non-binding mediation proceedings and
submit
      the Dispute to a mutually acceptable third-party mediator in Phoenix,
Arizona
      who is acquainted with dispute resolution methods. The parties will participate
      in good faith in the mediation and the mediation process. The mediation
      process shall be completed within sixty (60) days after the date of the
      Meeting.

    

    10.3
      Arbitration. If the Dispute is not resolved by mediation, then either
party
      may
      initiate a binding arbitration action conducted in accordance with the
Commercial
      Arbitration Rules (the "Rules") of the American Arbitration Association
      ("AAA"). The parties shall attempt to select a single neutral arbitrator
      to hear the Dispute. Such arbitrator need not be affiliated with the
AAA.
      If
      the parties fail to agree on a single neutral arbitrator within ten (10)
days
      of
      the filing of the demand for arbitration, then three neutral arbitrators
shall
      be
      appointed in accordance with the Rules. The arbitration award shall be
in
      writing and shall specify the factual and legal basis for the award. The
arbitration
      shall be conducted in Phoenix, Arizona, and judgment upon the award rendered
      by the arbitrator(s) may be entered in any court having jurisdiction
thereof.
      Neither party shall be entitled to seek or recover punitive damages in
considering
      or fixing any award under these proceedings.

    

    10.4
      Costs. The costs of the mediation and arbitration, including any mediator's
      fees, AAA administration fee, the arbitrator's fee, and costs for the
use
      of
      facilities during the hearings, shall be borne equally by the parties.
Attorneys'
      fees may be awarded to the prevailing or most prevailing party at the
discretion
      of the arbitrator(s).

    

    10.5
      Other. Any dispute relating to or in connection with the enforceability
      of these dispute resolution provisions shall be brought only in a court
      in
      Phoenix, Arizona for that purpose.

    

    11.
      General.

    

    11.1
      Independent Contractors. The relationship of SunnComm and MM shall be
that
      of
      independent contractors and not employees, agents, joint venturers or
partners.
      MM shall be solely responsible to determine the method, details and means
      of
      performing its services hereunder. MM assumes full and sole responsibility
      for the payment of all compensation and expenses of its employees and
      for
      all of their state and federal income tax, unemployment insurance, Social
      Security and other applicable employee withholdings. MM shall not hold
itself
      out as an agent of SunnComm nor shall MM contract or otherwise make any
commitments
      to any third party on SunnComm's behalf without SunnComm's prior consent.

    

    11.2
      Entire Agreement. This Agreement (including any and all attachments hereto),
      constitutes the entire understanding and agreement between the parties 
with
      respect to the subject matter hereof, supersedes all prior oral and written
      communications
      between the parties with respect to the subject matter hereof, and
      may
      be amended, modified or changed only in writing when signed by both parties.

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    11.3
      Assignment. This Agreement may be assigned in
      whole or in part by MM pursuant to any merger, consolidation or other
      reorganization involving MM, with the
      prior
      express written consent of SunnComm, which will not be unreasonably withheld.
      SunnComm may not assign or transfer this Agreement, in whole or in part, without
      the prior express written consent of MM. This Agreement shall be binding upon,
      and shall inure to the benefit of, SunnComm and MM and each of their legal
      representatives, successors and permitted assigns.

    

    11.4
      Waiver; Consent. No term of this Agreement will be deemed waived, and no breach
      of this Agreement excused, unless the waiver or consent is in writing signed
      by
      the party granting such waiver or consent.

    

    11.5
      Governing Law. This Agreement, its construction and enforcement shall be
      governed by the laws of the State of Arizona, without giving effect to conflict
      of law principles. 

    

    11.6
      Severability. If any term or provision of this Agreement shall be found
      by
      a court of competent jurisdiction to be invalid, illegal or otherwise
unenforceable,
      the same shall not affect the other provisions hereof or the whole
      of
      this Agreement, but such terms or provisions shall be deemed modified
to
      the
      extent necessary in the court's opinion to render such terms or provisions
      enforceable, and the rights and obligations of the parties shall be construed
      and enforced accordingly, preserving to the fullest permissible extent
the
      intent and agreements of the parties herein set forth.

    

    11.7
      Force Majeure. Neither party shall be liable to the other for any failure
      or delay in performance of its obligations hereunder on account of terrorist
      attacks, strikes, shortages, riots, insurrections, fires, floods, storms,
      explosions, earthquakes, acts of God, war, governmental action or any
other
      cause which is beyond the reasonable control of such party.

    

    11.8
      Notices. All notices, requests and other communications permitted or
required
      under this Agreement must be in writing, and shall deemed to have been
given
      if
      faxed (with transmission acknowledgement received), delivered personally
      or by overnight courier service, sent by electronic mail or mailed by
certified
      or registered mail (return receipt requested) as follows:

    

    To
      SunnComm: SunnComm International, Inc.

        668
      North
      44th Street, Suite 248

        Phoenix,
      Arizona 85008

        Facsimile:
      (602)267-7400

        Email:
      peter@sunncomm.com

        Attention:
      Mr. Peter Jacobs

    

    With
      a
      copy to: Wees Law Firm, L.L.C.

        2600
      N.
      Central Ave., Suite 635

        Phoenix,
      AZ
      85004

        Facsimile:
      (602) 288-1692

        Email:
      jweeslawfirm@cox.net

        Attention:
      James F. Wees

    

    To
      MM:
      MediaMax Technology Corporation

        668
      North
      44th Street, Suite 241

        Phoenix,
      Arizona 85008

        Facsimile:
      

        Email:
      scott@mediamaxtechnology.com

        Attention:
      Scott Stoegbauer

    

    or
      to
      such other address, fax number or electronic mail address of which any
party
      may
      notify the other parties as provided above. Notices shall be deemed given
      as
      of the date of any fax transmission acknowledgement, upon personal delivery
      or delivery by overnight courier service, receipt of any reply e-mail
confirming
      delivery of such e-mail or five days after deposit of any certified or
      registered letter in the mail.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the date first
      written above.

    

    

      

    

    

    

    

    

    
      	 SUNNCOMM INTERNATIONAL, INC.	 MEDIAMAX TECHNOLOGY
              CORPORATION	 
	 	 	 
	
              By ______________________________ 

              Name: Peter H. Jacobs

              Title: President 

            	
              By___________________________

              Name:
                Scott Stoegbauer

              Title:
                President

            	 

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

    Description
      of Products

    

    TranzByte
      CD and DVD multimedia enhancement software enables extra features like music
      videos, lyrics, biographies, photo galleries, banner and other online viral
      advertising, games, internet links and much more. It allows you to copy songs
      to
      a computer or portable player with the record labels approval. You can also
      share songs with family and friends using the MusicMail feature. 

    

    CDMX
      is a
      multi-media CD enhancement technology is housed entirely on the CD itself and
      does not require the loading of any software components in order to access
      the
      music and bonus content. 

    

    IPT
      is an
      enabling technology that was designed to offer companies an innovative
      alternative to traditional marketing media. Housed on a digitally-enhanced
      CD,
      I.PT provides branding, viral marketing, advertising and revenue-generating
      opportunities. 

    

    OctiPod
      provides an environment and interface to include additional digital content
      on a
      Video DVD. The most common application might be a movie soundtrack or other
      audio content included on the same DVD as a movie.

    

    All«Play
      allows the use of electronic, optical and digital content across multiple
      applications, and more specifically, allows both content owners and end users
      to
      control how and where they can access content. For example, the delivery of
      music from an online music store to multiple destinations in multiple formats.
      

    

    DVD
      copy
      management, content protection and enhancement technology. This technology
      provides an alternative, authorized process to play, move and share content
      from
      Video-based (Movie) DVDs in a legally approved and controlled process. It
      provides a compromise solution that delivers limited rights and enhanced
      features to DVD buyers without allowing freedom to steal content from
the
      producer, or studio.

    

    Perfect
      Placement is a product / service offering available through a graphic user
      interface. It is a centrally-served direct response marketing environment which
      provides a mechanism for the record labels, artists and movie studios to
      advertise their back catalogs, merchandise, web sites and take advantage of
      cross-promotional opportunities. Perfect Placement also allows record labels
      and
      Movie studios to generate third-party ad revenue based on targeted advertising
      and sponsorships available through the user interface.

    

    MusicMail
      is a software product that allows the owner of a SunnComm enhanced CD or DVD
      to
      legally share available music with a friend by providing the recipient with
      a
      song that can be downloaded and listened to for a limited number of days, a
      limited number of plays or with a specific expiration date or no expiration
      at
      all.

    

    Other
      products currently under development include, but are not limited to: MediaMax
      used in conjunction with a Music Kiosk that creates "enhanced CDs", MediaMax
      for
      CD+G (Karaoke CDs), MediaMax customized for confidential corporate audio/video
      content on CDs & DVDs. 

    
12Exhibit 10.30

 

Dated:  July 13, 2006

NEITHER THIS DEBENTURE NOR THE SECURITIES INTO WHICH THIS DEBENTURE IS 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 THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

	
            No. MEP-3
 	
            $300,000
 

CONNECTED MEDIA TECHNOLOGIES, INC.

Secured Convertible Debenture

 

Due October 13, 2007

This Secured Convertible Debenture (the “Debenture”) is issued by CONNECTED MEDIA TECHNOLOGIES, INC., a Delaware corporation (the “Obligor”), to MONTGOMERY EQUITY PARTNERS, LTD. (the “Holder”), pursuant to that certain Securities Purchase Agreement (the “Securities Purchase Agreement”) dated January 31, 2006. 

FOR VALUE RECEIVED, the Obligor hereby promises to pay to the Holder or its successors and assigns the principal sum of Three Hundred Thousand Dollars ($300,000) together with accrued but unpaid interest on or before October 13, 2007 (the “Maturity Date”) in accordance with the following terms:

Interest. Interest shall accrue on the outstanding principal balance hereof at an annual rate equal to fourteen percent (14%). Interest shall be calculated on the basis of a 365-day year and the actual number of days elapsed, to the extent permitted by applicable law. Interest hereunder will be paid to the Holder or its assignee  (as defined in Section 5) in whose name this Debenture is registered on the records of the Obligor regarding registration and transfers of Debentures (the “Debenture Register”).

Right of Redemption. The Obligor at its option shall have the right, with thirty (30) business days advance written notice (the “Redemption Notice”), to redeem a portion or all amounts outstanding under this Debenture prior to the Maturity Date. The Obligor shall pay an amount equal to the principal amount being redeemed plus a redemption premium (“Redemption Premium”) equal to twenty five percent (25%) of the principal amount being redeemed, and accrued interest, (collectively referred to as the “Redemption Amount”). The Obligor shall deliver to the Holder the Redemption Amount on the thirtieth (30th) business day after the
Holder’s receipt of the Redemption Notice. 

 

1

 

Exhibit 10.30

 

 

Notwithstanding the foregoing in the event that the Obligor has elected to redeem a portion of the outstanding principal amount and accrued interest under this Debenture the Holder shall be permitted to convert all or any portion of this Debenture following receipt of the Redemption Notice. 

Security Agreements. This Debenture is secured by an Amended and Restated Pledge and Escrow Agreement (the “Pledge Agreement”) dated January 31, 2006 among the Obligor, the Holder, the Escrow Agent, and an Amended and Restated Security Agreement (the “Security Agreement”) dated January 31, 2006 between the Obligor and the Holder.

Consent  of Holder to Sell Capital Stock or Grant Security Interests. So long as any of the principal amount or interest on this Debenture remains unpaid and unconverted, the Obligor shall not, without the prior consent of the Holder, (i) issue or sell any shares of Common Stock or preferred stock without consideration or for consideration per share less than the Closing Bid Price of the Common Stock determined immediately prior to its issuance, (ii) issue or sell any preferred stock, warrant, option, right, contract, call, or other security or instrument granting the holder thereof the right to acquire Common Stock without consideration or for consideration per share less than the Closing Bid Price of the Common Stock determined immediately prior to its issuance, (iii) enter into any security instrument granting the
holder a security interest in any of the assets of the Obligor, or (iv) file any registration statements on Form S-8.

Rights of First Refusal. So long as any portion of this Debenture is outstanding (including principal or accrued interest), if the Obligor intends to raise additional capital by the issuance or sale of capital stock of the Obligor, including without limitation shares of any class of Common Stock, any class of preferred stock, options, warrants or any other securities convertible or exercisable into shares of Common Stock (whether the offering is conducted by the Obligor, underwriter, placement agent or any third party) the Obligor shall be obligated to offer to the Holder such issuance or sale of capital stock, by providing in writing the principal amount of capital it intends to raise and outline of the material terms of such capital raise, prior to the offering such issuance or sale of capital stock  to any third parties including, but not limited
to, current or former officers or directors, current or former shareholders and/or investors of the obligor, underwriters, brokers, agents or other third parties. The Holder shall have ten (10) business days from receipt of such notice of the sale or issuance of capital stock to accept or reject all or a portion of such capital raising offer.

This Debenture is subject to the following additional provisions:

Section 1.         This Debenture is exchangeable for an equal aggregate principal amount of Debentures of different authorized denominations, as requested by the Holder surrendering the same. No service charge will be made for such registration of transfer or exchange.

	
            Section 2.
 	
            Events of Default.
 

(a)        An “Event of Default”, wherever used herein, means any one of the following events (whatever the reason and whether it 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):

 

2

 

Exhibit 10.30

 

 

(i)         Any default in the payment of the principal of, interest on or other charges in respect of this Debenture, or any other Debenture issued on the date hereof, free of any claim of subordination, as and when the same shall become due and payable (whether on a due date, a Conversion Date or the Maturity Date or by acceleration or otherwise);

(ii)        The Obligor shall fail to observe or perform any other covenant, agreement or warranty contained in, or otherwise commit any breach or default of any provision of this Debenture (except as may be covered by Section 2(a)(i) hereof) or any Transaction Document (as defined in Section 5) which is not cured with in the time prescribed;

(iii)       The Obligor or any subsidiary of the Obligor shall commence, or there shall be commenced against the Obligor or any subsidiary of the Obligor under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Obligor or any subsidiary of the Obligor 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 Obligor or any subsidiary of the Obligor or there is commenced against the Obligor or any subsidiary of the Obligor any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 61 days; or the Obligor or any subsidiary of the Obligor is adjudicated insolvent or bankrupt; or any order of
relief or other order approving any such case or proceeding is entered; or the Obligor or any subsidiary of the Obligor suffers any appointment of any custodian, private or court appointed receiver or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of sixty one (61) days; or the Obligor or any subsidiary of the Obligor makes a general assignment for the benefit of creditors; or the Obligor or any subsidiary of the Obligor shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the Obligor or any subsidiary of the Obligor shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or the Obligor or any subsidiary of the Obligor shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by
the Obligor or any subsidiary of the Obligor for the purpose of effecting any of the foregoing;

(iv)       The Obligor or any subsidiary of the Obligor shall default in any of its obligations under any other debenture or any mortgage, credit agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement of the Obligor or any subsidiary of the Obligor in an amount exceeding $100,000, 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;

(v)        The Common Stock shall cease to be quoted for trading or listed for trading on either the Nasdaq OTC Bulletin Board (“OTC”), Nasdaq Capital Market, New York Stock Exchange, American Stock Exchange or the Nasdaq National Market (each, a “Subsequent Market”) and shall not again be quoted or listed for trading thereon within five (5) Trading Days of such delisting;

 

3

 

Exhibit 10.30

 

 

(vi)       The Obligor or any subsidiary of the Obligor shall be a party to any Change of Control Transaction other than as contemplated in the Stock Purchase Agreement between the Company and Natcom Marketing International, Inc. (as defined in Section 5); 

(vii)      The Obligor shall fail to file the Underlying Shares Registration Statement (as defined in Section 5) with the Commission (as defined in Section 5), or the Underlying Shares Registration Statement shall not have been declared effective by the Commission, in each case within the time periods set forth in the Investor Registration Rights Agreement (“Registration Rights Agreement”) dated January 31, 2006 and as amended on the date hereof between the Obligor and the Holder;

(viii)     If the effectiveness of the Underlying Shares Registration Statement lapses for any reason or the Holder shall not be permitted to resell the shares of Common Stock underlying this Debenture under the Underlying Shares Registration Statement, in either case, for more than five (5) consecutive Trading Days or an aggregate of eight Trading Days (which need not be consecutive Trading Days);

(ix)       The Obligor shall fail for any reason to deliver Common Stock certificates to a Holder prior to the fifth (5th) Trading Day after a Conversion Date or the Obligor shall provide notice to the Holder, including by way of public announcement, at any time, of its intention not to comply with requests for conversions of this Debenture in accordance with the terms hereof; 

(x)        The Obligor shall fail for any reason to deliver the payment in cash pursuant to a Buy-In (as defined herein) within three (3) days after notice is claimed delivered hereunder; 

 (b)       During the time that any portion of this Debenture is outstanding, if any Event of Default has occurred, the full principal amount of this Debenture, together with interest and other amounts owing in respect thereof, to the date of acceleration shall become at the Holder’s election, immediately due and payable in cash, provided however, the Holder may request (but shall have no obligation to request) payment of such amounts in Common Stock of the Obligor. If an uncured Event of Default shall occur the Conversion Price shall be permanently reduced to $0.0001 (the “Default Conversion Price”). Notwithstanding the foregoing, the Default Conversion Price shall not be applicable to Section 2(a) (viii) relating to the effectiveness of the Underlying Shares Registration Statement provided that the Obligor (i) files the Underlying Shares Registration Statement within the time period set forth in the Registration Rights Agreement (and as amended on the date hereof) and (ii) the Obligor files timely responses to SEC comments, which shall be no later than ten (10) business days from receipt of each comment letter from the SEC. In addition to any other remedies, the Holder shall have the right (but not the obligation) to convert this Debenture at any time after (x) an Event of Default or (y) the Maturity Date at the Conversion Price then in-effect. The Holder need not provide and the Obligor hereby waives any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without expiration of any 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 Holder at any time prior to payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default or impair any right 

 

4

 

Exhibit 10.30

 

consequent thereon. Upon an Event of Default, notwithstanding any other provision of this Debenture or any Transaction Document, the Holder shall have no obligation to comply with or adhere to any limitations, if any, on the conversion of this Debenture or the sale of the Underlying Shares. 

	
            Section 3.
 	
            Conversion.
 	
             

	
            (a)
 	
            Conversion at Option of Holder.
 
				

(i)         This Debenture shall be convertible into shares of Common Stock at the option of the Holder, in whole or in part at any time and from time to time, after the Original Issue Date (as defined in Section 5) (subject to the limitations on conversion set forth in Section 3(b) hereof). The number of shares of Common Stock issuable upon a conversion hereunder equals the quotient obtained by dividing (x) the outstanding amount of this Debenture to be converted by (y) the Conversion Price (as defined in Section 3(c)(i)). The Obligor shall deliver Common Stock certificates to the Holder prior to the Fifth (5th) Trading Day after a Conversion Date.

(ii)        Notwithstanding anything to the contrary contained herein, if on any Conversion Date:  (1) the number of shares of Common Stock at the time authorized, unissued and unreserved for all purposes, or held as treasury stock, is insufficient to pay principal and interest hereunder in shares of Common Stock; (2) the Common Stock is not listed or quoted for trading on the OTC or on a Subsequent Market; (3) the Obligor has failed to timely satisfy its conversion; or (4) the issuance of such shares of Common Stock would result in a violation of Section 3(b), then, at the option of the Holder, the Obligor, in lieu of delivering shares of Common Stock pursuant to Section 3(a)(i), shall deliver, within three (3) Trading Days of each applicable Conversion
Date, an amount in cash equal to the product of the outstanding principal amount to be converted plus any interest due therein divided by the Conversion Price, chosen by the Holder, and multiplied by the highest closing price of the stock from date of the conversion notice till the date that such cash payment is made.

Further, if the Obligor shall not have delivered any cash due in respect of conversion of this Debenture or as payment of interest thereon by the fifth (5th) Trading Day after the Conversion Date, the Holder may, by notice to the Obligor, require the Obligor to issue shares of Common Stock pursuant to Section 3(c), except that for such purpose the Conversion Price applicable thereto shall be the lesser of the Conversion Price on the Conversion Date and the Conversion Price on the date of such Holder demand. Any such shares will be subject to the provisions of this Section.

(iii)       The Holder shall effect conversions by delivering to the Obligor a completed notice in the form attached hereto as Exhibit A (a “Conversion Notice”). The date on which a Conversion Notice is delivered is the “Conversion Date.” Unless the Holder is converting the entire principal amount outstanding under this Debenture, the Holder is not required to physically surrender this Debenture to the Obligor in order to effect conversions. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Debenture plus all accrued and unpaid interest thereon in an amount equal to the applicable conversion. The Holder and the Obligor shall maintain records showing the principal amount 

 

5

 

Exhibit 10.30

 

converted and the date of such conversions. In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error.

	
            (b)
 	
            Certain Conversion Restrictions.
 

(i)         A Holder may not convert this Debenture or receive shares of Common Stock as payment of interest hereunder to the extent such conversion or receipt of such interest payment would result in the Holder, together with any affiliate thereof, beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder) in excess of 4.9% of the then issued and outstanding shares of Common Stock, including shares issuable upon conversion of, and payment of interest on, this Debenture held by such Holder after application of this Section. Since the Holder will not be obligated to report to the Obligor the number of shares of Common Stock it may hold at the time of a conversion hereunder, unless the conversion at issue would result in the issuance of shares of Common Stock in excess of 4.9% of
the then outstanding shares of Common Stock without regard to any other shares which may be beneficially owned by the Holder or an affiliate thereof, the Holder shall have the authority and obligation to determine whether the restriction contained in this Section will limit any particular conversion hereunder and to the extent that the Holder determines that the limitation contained in this Section applies, the determination of which portion of the principal amount of this Debenture is convertible shall be the responsibility and obligation of the Holder. If the Holder has delivered a Conversion Notice for a principal amount of this Debenture that, without regard to any other shares that the Holder or its affiliates may beneficially own, would result in the issuance in excess of the permitted amount hereunder, the Obligor shall notify the Holder of this fact and shall honor the conversion for the maximum principal amount permitted to be converted on such Conversion Date in accordance
with the periods described in Section 3(a)(i) and, at the option of the Holder, either retain any principal amount tendered for conversion in excess of the permitted amount hereunder for future conversions or return such excess principal amount to the Holder. The provisions of this Section may be waived by a Holder (but only as to itself and not to any other Holder) upon not less than 65 days prior notice to the Obligor. Other Holders shall be unaffected by any such waiver.    

	
            (c)
 	
            Conversion Price and Adjustments to Conversion Price.
 

(i)        The conversion price in effect on any Conversion Date shall be equal to the lesser of (a) $0.016 (the “Fixed Conversion Price”) or (b) seventy five percent (75%) of the Closing Bid Price of the Common Stock during the ten (10) trading days immediately preceding the Conversion Date as quoted by Bloomberg, LP (the “Market Conversion Price”). The Fixed Conversion Price and the Market Conversion Price are collectively referred to as the “Conversion Price.”  The Conversion Price may be adjusted pursuant to the other terms of this Debenture.

 (ii)       If the Obligor, at any time while this Debenture is outstanding, shall (a) pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock, (b) subdivide outstanding shares of Common Stock into a larger number of shares, (c) combine (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (d) issue by reclassification of shares of the Common Stock any 

 

6

 

Exhibit 10.30

 

shares of capital stock of the Obligor, then the Fixed Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding before such event and of which the denominator shall be the number of shares of Common Stock outstanding after such event. Any adjustment made pursuant to this Section 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 re-classification.

(iii)       If the Obligor, at any time while this Debenture is outstanding, shall issue rights, options or warrants to all holders of Common Stock (and not to the Holder) entitling them to subscribe for or purchase shares of Common Stock at a price per share less than the Fixed Conversion Price, then the Fixed Conversion Price shall be multiplied by a fraction, of which the denominator shall be the number of shares of the Common Stock (excluding treasury shares, if any) outstanding on the date of issuance of such rights or warrants (plus the number of additional shares of Common Stock offered for subscription or purchase), and of which the numerator shall be the number of shares of the Common Stock (excluding treasury shares, if any) outstanding on the date of issuance of such rights or warrants, plus the number of shares which the aggregate offering
price of the total number of shares so offered would purchase at the Fixed Conversion Price. Such adjustment shall be made whenever such rights or warrants are issued, and shall become effective immediately after the record date for the determination of stockholders entitled to receive such rights, options or warrants. However, upon the expiration of any such right, option or warrant to purchase shares of the Common Stock the issuance of which resulted in an adjustment in the Fixed Conversion Price pursuant to this Section, if any such right, option 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 Fixed Conversion Price made pursuant to the provisions of this Section after the issuance of such rights or warrants) had the adjustment of the Fixed Conversion
Price made upon the issuance of such rights, options or warrants been made on the basis of offering for subscription or purchase only that number of shares of the Common Stock actually purchased upon the exercise of such rights, options or warrants actually exercised.

(iv)       If the Obligor or any subsidiary thereof, as applicable, at any time while this Debenture is outstanding, shall issue shares of Common Stock or rights, warrants, options or other securities or debt that are convertible into or exchangeable for shares of Common Stock (“Common Stock Equivalents”) entitling any Person to acquire shares of Common Stock, at a price per share less than the Fixed Conversion Price (if the holder of the Common Stock or Common Stock Equivalent so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which is issued in connection with such issuance, be entitled to receive shares of Common Stock at a price per share
which is less than the Fixed Conversion Price, such issuance shall be deemed to have occurred for less than the Fixed Conversion Price), then, at the sole option of the Holder, the Fixed Conversion Price shall be adjusted to mirror the conversion, exchange or purchase price for such Common Stock or Common Stock Equivalents (including any reset provisions thereof) at issue. Such adjustment shall be made whenever such Common Stock or Common Stock Equivalents are issued. The Obligor shall notify the Holder in writing, no later than one (1) business day following the 

 

7

 

Exhibit 10.30

 

issuance of any Common Stock or Common Stock Equivalent subject to this Section, indicating therein the applicable issuance price, or of applicable reset price, exchange price, conversion price and other pricing terms. No adjustment under this Section shall be made as a result of issuances and exercises of options to purchase shares of Common Stock issued for compensatory purposes pursuant to any of the Obligor’s stock option or stock purchase plans.

(v)        If the Obligor, at any time while this Debenture is outstanding, shall distribute to all holders of Common Stock (and not to the Holder) evidences of its indebtedness or assets or rights or warrants to subscribe for or purchase any security, then in each such case the Fixed Conversion Price at which this Debenture shall thereafter be convertible shall be determined by multiplying 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 of which the denominator shall be the Closing Bid Price determined as of the record date mentioned above, and of which the numerator shall be such Closing Bid Price on such record date 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 the Common Stock as determined by the Board of Directors in good faith. In either case the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above.

(vi)       In case of any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is converted into other securities, cash or property, the Holder shall have the right thereafter to, at its option,  (A) convert the then outstanding principal amount, together with all accrued but unpaid interest and any other amounts then owing hereunder in respect of this Debenture into the shares of stock and other securities, cash and property receivable upon or deemed to be held by holders of the Common Stock following such reclassification or share exchange, and the Holder of this Debenture shall be entitled upon such event to receive such amount of securities, cash or property as the shares of the Common Stock of the Obligor into which the then outstanding principal amount, together with all accrued but unpaid interest
and any other amounts then owing hereunder in respect of this Debenture could have been converted immediately prior to such reclassification or share exchange would have been entitled, or (B) require the Obligor to prepay the outstanding principal amount of this Debenture, plus all interest and other amounts due and payable thereon. The entire prepayment price shall be paid in cash. This provision shall similarly apply to successive reclassifications or share exchanges.

(vii)      The Obligor shall at all times reserve and keep available out of its authorized Common Stock the full number of shares of Common Stock issuable upon conversion of all outstanding amounts under this Debenture; and within three (3) Business Days following the receipt by the Obligor of a Holder’s notice that such minimum number of Underlying Shares is not so reserved, the Obligor shall promptly reserve a sufficient number of shares of Common Stock to comply with such requirement.

(viii)     All calculations under this Section 3 shall be rounded up to the nearest $0.001 or whole share.

 

8

 

Exhibit 10.30

 

 

(ix)       Whenever the Conversion Price is adjusted pursuant to Section 3 hereof, the Obligor shall promptly mail to the Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

(x)        If (A) the Obligor shall declare a dividend (or any other distribution) on the Common Stock; (B) the Obligor shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock; (C) the Obligor shall authorize the granting 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; (D) the approval of any stockholders of the Obligor shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Obligor is a party, any sale or transfer of all or substantially all of the assets of the Obligor, of any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property; or (E) the Obligor shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Obligor; then, in each case, the Obligor shall cause to be filed at each office or agency maintained for the purpose of conversion of this Debenture, and shall cause to be mailed to the Holder at its last address as it shall appear upon the stock books of the Obligor, 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 the 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 or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall
be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided, 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. The Holder is entitled to convert this Debenture during the 20-day calendar period commencing the date of such notice to the effective date of the event triggering such notice.

(xi)       In case of any (1) merger or consolidation of the Obligor or any subsidiary of the Obligor with or into another Person, or (2) sale by the Obligor or any subsidiary of the Obligor of more than one-half of the assets of the Obligor in one or a series of related transactions, a Holder shall have the right to (A) exercise any rights under Section 2(b), (B) convert the aggregate amount of this Debenture then outstanding into the shares of stock and other securities, cash and property receivable upon or deemed to be held by holders of Common Stock following such merger, consolidation or sale, and such Holder shall be entitled upon such event or series of related events to receive such amount of securities, cash and property as the shares of Common Stock into which such aggregate principal amount of this
Debenture could have been converted immediately prior to such merger, consolidation or sales would have been entitled, or (C) in the case of a merger or consolidation, require the surviving entity to issue to the Holder a convertible Debenture with a principal amount equal to the aggregate principal amount of this Debenture then held by such Holder, plus all accrued and unpaid interest and other amounts owing thereon, which such newly issued convertible Debenture shall have terms identical (including with respect to conversion) to the terms of this Debenture, and shall be entitled to all of the rights and privileges of the Holder of this Debenture set forth herein and the 

 

9

 

Exhibit 10.30

 

agreements pursuant to which this Debentures were issued. In the case of clause (C), the conversion price applicable for the newly issued shares of convertible preferred stock or convertible Debentures shall be based upon the amount of securities, cash and property that each share of Common Stock would receive in such transaction and the Conversion Price in effect immediately prior to the effectiveness or closing date for such transaction. The terms of any such merger, sale or consolidation shall include such terms so as to continue to give the Holder the right to receive the securities, cash and property set forth in this Section upon any conversion or redemption following such event. This provision shall similarly apply to successive such events.

	
            (d)
 	
            Other Provisions.
 

(i)         The Obligor covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock solely for the purpose of issuance upon conversion of this Debenture and payment of interest on this Debenture, each as herein provided, free from preemptive rights or any other actual contingent purchase rights of persons other than the Holder, not less than such number of shares of the Common Stock as shall (subject to any additional requirements of the Obligor as to reservation of such shares set forth in this Debenture) be issuable (taking into account the adjustments and restrictions of Sections 2(b) and 3(c)) upon the conversion of the outstanding principal amount of this Debenture and payment of interest hereunder. The Obligor covenants that all
shares of Common Stock that shall be so issuable shall, upon issue, be duly and validly authorized, issued and fully paid, nonassessable and, if the Underlying Shares Registration Statement has been declared effective under the Securities Act, registered for public sale in accordance with such Underlying Shares Registration Statement.

(ii)        Upon a conversion hereunder the Obligor shall not be required to issue stock certificates representing fractions of shares of the Common Stock, but may if otherwise permitted, make a cash payment in respect of any final fraction of a share based on the Closing Bid Price at such time. If the Obligor elects not, or is unable, to make such a cash payment, the Holder shall be entitled to receive, in lieu of the final fraction of a share, one whole share of Common Stock.

(iii)       The issuance of certificates for shares of the Common Stock on conversion of this Debenture shall be made without charge to the Holder thereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificate, provided that the Obligor 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 of such Debenture so converted and the Obligor 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 Obligor the amount of such tax or shall have established to the satisfaction of the Obligor that such tax has been paid.

(iv)       Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event of Default pursuant to Section 2 herein for the Obligor ‘s failure to deliver certificates representing shares of Common Stock upon conversion within the period specified herein and such Holder shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief, in 

 

10

 

Exhibit 10.30

 

each case without the need to post a bond or provide other security. The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law. 

(v)        In addition to any other rights available to the Holder, if the Obligor fails to deliver to the Holder such certificate or certificates pursuant to Section 3(a)(i) by the fifth (5th) Trading Day after the Conversion Date, and if after such fifth (5th) Trading Day the Holder purchases (in an open market transaction or otherwise) Common Stock to deliver in satisfaction of a sale by such Holder of the Underlying Shares which the Holder anticipated receiving upon such conversion (a “Buy-In”), then the Obligor shall (A) pay in cash to the Holder (in addition to any remedies available to or elected by the Holder) the amount by which (x) the
Holder’s total purchase price (including brokerage commissions, if any) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate number of shares of Common Stock that such Holder anticipated receiving from the conversion at issue multiplied by (2) the market price of the Common Stock at the time of the sale giving rise to such purchase obligation and (B) at the option of the Holder, either reissue a Debenture in the principal amount equal to the principal amount of the attempted conversion or deliver to the Holder the number of shares of Common Stock that would have been issued had the Obligor timely complied with its delivery requirements under Section 3(a)(i). For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted conversion of Debentures with respect to which the market price of the Underlying Shares on the date of conversion
was a total of $10,000 under clause (A) of the immediately preceding sentence, the Obligor shall be required to pay the Holder $1,000. The Holder shall provide the Obligor written notice indicating the amounts payable to the Holder in respect of the Buy-In.

Section 4.         Notices.          Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof 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 transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) trading 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 the Company, to:
 	
            Connected Media Technologies, Inc.
 
	
             
 	
            950 South Pine Island Road, Suite A150-1094
 
	
             
 	
            Plantation, Florida 33324
 
	
             
 	
            Attention:   Jeffrey Sass
 
	
             
 	
            Telephone:        (954) 727-8438
 
	
             
 	
            Facsimile:         (954) 727-8219
 
	
             
 	
             
 
	
            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
 

 

 

11

 

Exhibit 10.30

 

 

 

	
             
 	
             
 
	
            If to the Holder:
 	
            Montgomery Equity Partners, Ltd.
 
	
             
 	
            101 Hudson Street, Suite 3700
 
	
             
 	
            Jersey City, NJ  07303
 
	
             
 	
            Attention:          Mark Angelo
 
	
             
 	
            Telephone:        (201) 985-8300
 
	
             
 	
             
 
	
            With a copy to:
 	
            David Gonzalez, Esq. 
 
	
             
 	
            101 Hudson Street – Suite 3700
 
	
             
 	
            Jersey City, NJ 07302
 
	
             
 	
            Telephone:        (201) 985-8300
 
	
             
 	
            Facsimile:         (201) 985-8266
 
	
             
 	
             
 

 

or at such other address and/or facsimile number and/or to the attention of such other person as the recipient party has specified by written notice given to each other party three (3) business days prior to the effectiveness of such change. Written confirmation of receipt (i) given by the recipient of such notice, consent, waiver or other communication, (ii) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (iii) 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.

Section 5.         Definitions. For the purposes hereof, the following terms shall have the following meanings:

“Business Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday in the United States or a day on which banking institutions are authorized or required by law or other government action to close.

“Change of Control Transaction” means the occurrence of (a) an acquisition after the date hereof by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether through legal or beneficial ownership of capital stock of the Obligor, by contract or otherwise) of in excess of fifty percent (50%) of the voting securities of the Obligor (except that the acquisition of voting securities by the Holder shall not constitute a Change of Control Transaction for purposes hereof), (b) a replacement at one time or over time of more than one-half of the members of the board of directors of the Obligor which is not approved by a majority of those individuals who are members of the board of directors on the date hereof (or by those individuals who are serving
as members of the board of directors on any date whose nomination to the board of directors was approved by a majority of the members of the board of directors who are members on the date hereof), (c) the merger, consolidation or sale of fifty percent (50%) or more of the assets of the Obligor or any subsidiary of the Obligor in one or a series of related transactions with or into another entity, or (d) the execution by the Obligor of an agreement to which the Obligor is a party or by which it is bound, providing for any of the events set forth above in (a), (b) or (c).

 

12

 

Exhibit 10.30

 

 

“Commission” means the Securities and Exchange Commission.

“Common Stock” means the common stock, par value $0.0001, of the Obligor and stock of any other class into which such shares may hereafter be changed or reclassified.

“Conversion Date” shall mean the date upon which the Holder gives the Obligor notice of their intention to effectuate a conversion of this Debenture into shares of the Company’s Common Stock as outlined herein.

“Closing Bid Price” means the price per share in the last reported trade of the Common Stock on the OTC or on the exchange  which the Common Stock is then listed as quoted by Bloomberg, LP.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Original Issue Date” shall mean the date of the first issuance of this Debenture regardless of the number of transfers and regardless of the number of instruments, which may be issued to evidence such Debenture.

“Person” means a corporation, an association, a partnership, organization, a business, an individual, a government or political subdivision thereof or a governmental agency.

 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

“Trading Day” means a day on which the shares of Common Stock are quoted on the OTC or quoted or traded on such Subsequent Market on which the shares of Common Stock are then quoted or listed; provided, that in the event that the shares of Common Stock are not listed or quoted, then Trading Day shall mean a Business Day.

“Transaction Documents” means the Securities Purchase Agreement or any other agreement delivered in connection with the Securities Purchase Agreement, including, without limitation, Amended and Restated Security Agreement, the Pledge Agreement, the Irrevocable Transfer Agent Instructions, and the Registration Rights Agreement.

“Underlying Shares” means the shares of Common Stock issuable upon conversion of this Debenture or as payment of interest in accordance with the terms hereof.

“Underlying Shares Registration Statement” means a registration statement meeting the requirements set forth in the Registration Rights Agreement, covering among other things the resale of the Underlying Shares and naming the Holder as a “selling stockholder” thereunder.

Section 6.         Except as expressly provided herein, no provision of this Debenture shall alter or impair the obligations of the Obligor, which are absolute and unconditional, to pay the principal of, interest and other charges (if any) on, this Debenture at the time, place, and rate, and in the coin or currency, herein prescribed. This Debenture is a direct obligation of the Obligor. This Debenture ranks pari passu with all other Debentures now or hereafter issued under the terms set forth herein. As long as this Debenture is outstanding, the Obligor shall not and shall 

 

13

 

Exhibit 10.30

 

cause their subsidiaries not to, without the consent of the Holder, (i) amend its certificate of incorporation, bylaws or other charter documents so as to adversely affect any rights of the Holder; (ii) repay, repurchase or offer to repay, repurchase or otherwise acquire shares of its Common Stock or other equity securities other than as to the Underlying Shares to the extent permitted or required under the Transaction Documents; or (iii) enter into any agreement with respect to any of the foregoing. 

Section 7.         This Debenture shall not entitle the Holder to any of the rights of a stockholder of the Obligor, including without limitation, the right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of stockholders or any other proceedings of the Obligor, unless and to the extent converted into shares of Common Stock in accordance with the terms hereof.

Section 8.         If this Debenture is mutilated, lost, stolen or destroyed, the Obligor shall execute and deliver, in exchange and substitution for and upon cancellation of the 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 Debenture so mutilated, lost, stolen or destroyed but only upon receipt of evidence of such loss, theft or destruction of such Debenture, and of the ownership hereof, and indemnity, if requested, all reasonably satisfactory to the Obligor.

Section 9.         No indebtedness of the Obligor is senior to this Debenture in right of payment, whether with respect to interest, damages or upon liquidation or dissolution or otherwise. Without the Holder’s consent, the Obligor will not and will not permit any of their subsidiaries to, directly or indirectly, enter into, create, incur, assume or suffer to exist any indebtedness of any kind, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits there from that is senior in any respect to the obligations of the Obligor under this Debenture.

Section 10.       This Debenture shall be governed by and construed in accordance with the laws of the State of New Jersey, without giving effect to conflicts of laws thereof. Each of the parties consents to the jurisdiction of the Superior Courts of the State of New Jersey sitting in Hudson County, New Jersey and the U.S. District Court for the District of New Jersey  sitting in Newark, New Jersey in connection with any dispute arising under this Debenture and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non conveniens to the bringing of any such proceeding in such jurisdictions. 

Section 11.       If the Obligor fails to strictly comply with the terms of this Debenture, then the Obligor shall reimburse the Holder promptly for all fees, costs and expenses, including, without limitation, attorneys’ fees and expenses incurred by the Holder in any action in connection with this Debenture, including, without limitation, those incurred: (i) during any workout, attempted workout, and/or in connection with the rendering of legal advice as to the Holder’s rights, remedies and obligations, (ii) collecting any sums which become due to the Holder, (iii) defending or prosecuting any proceeding or any counterclaim to any proceeding or appeal; or (iv) the protection, preservation or enforcement of any rights or remedies of the Holder.

 

14

 

Exhibit 10.30

 

 

Section 12.       Any waiver by the Holder of a breach of any provision of this Debenture 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. The failure of the Holder to insist upon strict adherence to any term of this Debenture 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. Any waiver must be in writing.

Section 13.       If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder shall violate applicable laws governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest. The Obligor covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Obligor from
paying all or any portion of the principal of or interest on this Debenture as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this indenture, and the Obligor (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impeded the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

Section 14.       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 succeeding Business Day.

Section 15.       THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.

[REMAINDER OF PAGE INTENTIONLLY LEFT BLANK]

 

15

 

Exhibit 10.30

 

 

IN WITNESS WHEREOF, the Obligor has caused this Secured Convertible Debenture to be duly executed by a duly authorized officer as of the date set forth above.

	
             
 	
            CONNECTED MEDIA TECHNOLOGIES, INC. 
 
	
             
 	
             
 
	
             
 	
            By: /s/ Jeffrey W. Sass                                                                                                       
 
	
             
 	
            Name:  Jeffrey W. Sass
 
	
             
 	
            Title:    CEO
 

 

 

16

 

Exhibit 10.30

 

 

EXHIBIT “A”

NOTICE OF CONVERSION

(To be executed by the Holder in order to convert the Debenture)

 

	
            TO:
 	
             
 

 

The undersigned hereby irrevocably elects to convert $                                          
              of the principal amount of the above Debenture into Shares of Common Stock of Connected Media Technologies, Inc., according to the conditions stated therein, as of the Conversion Date written below.

	
            Conversion Date:
 	
                                                                                                                                                                                                                                                                                                                                                                                                            
 
	
            Applicable Conversion Price:
 	
                                                                                                                                                                                                                                                                                                                                                                                                            
 
	
            Signature:
 	
                                                                                                                                                                                                                                                                                                                                                                                                            
 
	
            Name:
 	
                                                                                                                                                                                                                                                                                                                                                                                                            
 
	
            Address:
 	
                                                                                                                                                                                                                                                                                                                                                                                                            
 
	
            Amount to be converted:
 	
            $  
 
	
            Amount of Debenture unconverted:
 	
            $ 
 
	
            Conversion Price per share: 
 	
            $  
 
	
            Number of shares of Common Stock to be issued:
 	
             
 
	
            Please issue the shares of Common Stock in the following name and to the following address:
 	
             
 
	
            Issue to:
 	
             
 
	
            Authorized Signature:
 	
             
 
	
            Name:
 	
             
 
	
            Title:
 	
             
 
	
            Phone Number:
 	
             
 
	
            Broker DTC Participant Code:
 	
             
 
	
            Account Number:

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