Document:

EXHIBIT 10.1

         

         

         

         

         

         

         

         

         

         

         

         

         

         

        PLAN AND AGREEMENT OF REORGANIZATION

        

        AMONG

        

        MACH ONE CORPORATION

         

        AND

        

        PACIFIC RIM FOODS, LTD.

         

        AND

        

        CERTAIN SHAREHOLDERS

        

        OF

        

        PACIFIC RIM FOODS, LTD.

         

         

         

         

         

         

         

         

        

        NOVEMBER 21, 2008

         

        

        

        
            

        

Table of Contents 

		
		
		
	PLAN AND AGREEMENT OF REORGANIZATION 	 	 	 	3	 
	 	 	 	 		 
	PLAN OF REORGANIZATION 	 	 	 	3 	 
	 	 	 	 		 
	Agreement 	 	 	 	3	 
	     Section 1 - Transfer of Shares	 	 	 	3	 
	     Section 2 - Issuance of Exchange Securities to Pacific Rim Shareholders	 	 	 	4	 
	     Section 3 - Other Matters	 	 	 	5	 
	     Section 4 - Closing	 	 	 	5	 
	     Section 5 - Representations and Warranties by Pacific Rim and Certain Shareholders	 	 	 	7	 
	     Section 6 - Representations and Warranties by Mach One	 	 	 	10	 
	     Section 7 - Access and Information	 	 	 	13	 
	     Section 8 - Covenants of Pacific Rim and Certain Shareholders	 	 	 	13	 
	     Section 9 - Covenants of Mach One	 	 	 	15	 
	     Section 10 - Additional Covenants of the Parties	 	 	 	16	 
	     Section 11 - Survival of Representations, Warranties and Covenants	 	 	 	17	 
	     Section 12 - Conditions Precedent to Obligations of Parties	 	 	 	17	 
	     Section 13 - Termination, Amendment, Waiver	 	 	 	20	 
	     Section 14 - Miscellaneous	 	 	 	21	 
	 	 	 	 		 
	EXHIBIT LIST 	 	 	 	25 	 
	 	 	 	 		 
	SCHEDULE LIST 	 	 	 	25 	 

        
            

        

        Plan And Agreement Of Reorganization

        

             This Plan and Agreement of Reorganization (“Agreement”) is entered into on this 21st day of November, 2008 by and between Mach One Corporation,
        a Nevada corporation (“Mach One”), and Pacific Rim Foods, Ltd., a Republic of Mauritius corporation (“Pacific Rim”), and those persons
        listed in Exhibit A hereto, being all of the shareholders of Pacific Rim who own individually at least ten percent (10%) of the outstanding stock of Pacific Rim and together hold over fifty percent (50%) of the outstanding stock of
        Pacific Rim as of the date this Agreement is executed.

         

         

        Plan Of Reorganization

        

             The transaction contemplated by this Agreement (“the Exchange Transaction”) is intended to be an exchange of stock reorganization. Mach One will acquire up to 100% of
        Pacific Rim’s issued and outstanding common stock, (no par value) in exchange for up to 28,000,000 shares of Mach One’s common stock, $.001 par value, subject to adjustment, (the “Exchange Stock”) and up to $1,500,000 5 year Zero Coupon Convertible Promissory Notes (the
        “Exchange Notes”) (collectively the “Exchange Securities”). Upon the consummation of the Exchange Transaction and the issuance and transfer of the Exchange Securities as set forth in Section 2 below, Pacific Rim Shareholders will hold approximately thirty three (33%) percent of the then-outstanding common stock of
        Mach One. The Exchange Transaction will result in Pacific Rim becoming a wholly-owned subsidiary of Mach One.

          

         

        Agreement

        

        Section 1

        Transfer of Shares

        

        1.1     All shareholders of Pacific Rim (the “Shareholders” or the “Pacific Rim Shareholders”), as of the
        date of Closing as such term is defined in Section 4 herein (the “Closing” or the “Closing Date”), shall transfer, assign, convey and deliver to Mach One on the Closing Date, certificates representing one hundred percent (100%) of the Pacific Rim Stock or such
        lesser percentage as shall be acceptable to Mach One, but in no event less than sixty percent (60%) of the Pacific Rim Stock, with an amount equal to no less than an additional forty (40%) of the Pacific Rim
        Stock being tendered within ninety (90) days after the Closing Date, it being the intention of the parties that Mach One ultimately hold no less than one hundred (100%) of the Pacific Rim Stock. To the extent that less than 100% of the Pacific Rim Stock is
        acquired, the number of Exchange Securities issuable to those Pacific Rim Shareholders who elected to participate in the Exchange Transaction shall decrease proportionately. The transfer of the Pacific Rim Stock shall be made free and clear of all liens, mortgages, pledges, encumbrances or charges, whether disclosed or undisclosed, except as the
        Pacific Rim Shareholders and Mach One shall have otherwise agreed in writing.

         

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        Section 2

        Issuance of Exchange Securities to Pacific Rim Shareholders

        

        2.1    As consideration for the transfer, assignment, conveyance and delivery of the Pacific Rim Stock hereunder, Mach One
        shall, at the Closing issue to the Pacific Rim Shareholders, pro rata in accordance with each Shareholder’s percentage ownership of Pacific Rim immediately prior to the Closing, certificates representing 28,000,000 shares of
        Mach One Common Stock, subject to adjustment, and $1,500,000 5 Year Zero Coupon Convertible Promissory Notes. The parties intend that the Exchange Shares and Exchange Notes being issued will be used to acquire all outstanding Pacific Rim Shares. To the extent that less than 100% of the
        Pacific Rim Stock is acquired, the number and amount of Securities issuable to those Pacific Rim Shareholders who have elected to participate in the exchange described in this Agreement (the “Exchange”) shall decrease proportionately. No fractional shares of
        Mach One common stock shall be issued. Each fractional share shall be rounded up to a whole share of Mach One common stock.

        

        2.2    The issuance of the Exchange Stock shall be made free and clear of all liens, mortgages, pledges, encumbrances or charges, whether disclosed or undisclosed, except as the Pacific Rim Shareholders and
        Mach One shall have otherwise agreed in writing. As provided herein, and immediately prior to the Closing, Mach One shall have issued and outstanding: (i) not more than 87,500,000 shares of Common Stock, (ii) not more than 2,940,000 shares of Preferred Stock and (iii) except as set forth
        in Section 6.1(b) no other securities issued and outstanding.

        

        2.3    In the event that as a result of the conversion of the Mach One Preferred Stock, the issued and outstanding Mach One Common Stock
        should exceed 100,000,000 shares, the Exchange Shares held by the Pacific Rim Shareholders, shall be proportionately increased to maintain, when combined with the potential shares to be issued upon conversion of the Exchange Notes, an ownership interest in Mach One of not less then thirty-five percent (35%).

        

        2.4    None of the Exchange Stock issued to the Pacific Rim Shareholders, nor any of the Pacific Rim Stock transferred to Mach One
        hereunder shall, at the time of Closing, be registered under federal securities laws but, rather, shall be issued pursuant to an exemption thereunder and be considered “restricted stock” within the meaning of Rule 144 promulgated under the Securities Act of 1933, as amended (the “Act”). All of such securities shall bear a legend worded substantially as follows:

        

        “The securities represented by this certificate and/or promissory note have not been registered under the Securities Act of 1933 (the “Act”) and are ‘restricted securities’ as that term is defined in Rule 144 under the Act. The shares may not be offered for sale, sold or otherwise transferred except pursuant to an exemption from registration under the Act, the availability of which is
        to be established to the satisfaction of the Company.”

         

             The respective transfer agents of Mach One and Pacific Rim shall annotate their records to reflect the restrictions on transfer
        embodied in the legend set

             forth above. There shall be no requirement that Mach One register the Exchange Stock under the Act.

         

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        Section 3

        Other Matters

         

        3.1     Transactions to be Completed Prior to Closing. 

        

        (a)     Prior to Closing, Mach One shall use its best efforts to renegotiate with the holders of its outstanding 12% Convertible Promissory Notes (the “12% Notes”) to revise and amend such 12% Notes to reflect the same
        terms and conditions as the Exchange Notes.

        

        (b)     Prior to Closing, Mach One shall force conversion, repurchase or cancellation of not less than 50% of its issued and outstanding Series A Convertible Preferred Stock.

        

        (c)     Prior to Closing, Mach One shall prepare revised compensation agreements, approved by Pacific
        Rim, to be executed by its executive employees.

        

        3.2     Appointment of New Director. At the Closing the then existing three (3) directors of Mach One shall take
        those steps necessary to expand the current Board of Directors to five (5) directors and immediately nominate and elect to the Board of Directors of Mach One, Tad M. Ballantyne and one other director to be mutually
        agreed upon by Tad M. Ballantyne and the existing directors.

        

        Section 4

        Closing

        

        4.1     Closing of Transaction. Subject to the fulfillment or waiver of the conditions precedent set forth in Section 12 hereof, the Closing shall take place on the Closing Date at the offices of Pacific Rim in Kenosha, Wisconsin at
        10:00 A.M., local time, or at such other time on the Closing Date as Pacific Rim and Mach One may mutually agree in writing.

        

        4.2     Closing Date. The Closing Date of the Exchange shall take place on a date chosen by mutual agreement of Pacific Rim and
        Mach One within forty-five (45) days from the date of this Agreement, or such later date upon which Pacific Rim and Mach One may mutually agree in writing, or as extended pursuant to
        subsection 13.1(b) below.

        

        4.3       Deliveries at Closing.

        

        (a)     Pacific Rim shall deliver or cause to be delivered to Mach One at Closing:

        

        (1)     certificates representing all shares, or an amount of shares acceptable to Mach One, of the Pacific Rim Stock as described in
        Section 1, each endorsed in blank by the registered owner;

        

        (2)     an agreement from each Shareholder surrendering his or her shares agreeing to a restriction on the transfer of the Exchange Stock as described in Section 2 hereof;

         

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        (3)     a copy of a consent of Pacific Rim’s board of directors authorizing Pacific Rim to take the necessary steps toward
        Closing the transaction described by this Agreement in the form set forth in Exhibit B;

        

        (4)     a copy of a Certificate of Good Standing for Pacific Rim issued not more than ten (10) days prior to Closing by the Republic of Mauritius;

        

        (5)     Articles of Incorporation and Bylaws of Pacific Rim certified as of the Closing Date by the President and Secretary of Pacific
        Rim;

        

        (6)     such other documents, instruments or certificates as shall be reasonably requested by Mach One or its counsel.

        

        (b)     Mach One shall deliver or cause to be delivered to Pacific Rim at Closing:

        

        (1)     a copy of a consent of Mach One’s board of directors authorizing Mach One to take the necessary steps toward Closing
        the transaction described by this Agreement in the form set forth in Exhibit C;

        

        (2)     a copy of a Certificate of Good Standing for Mach One issued not more than ten (10) days prior to Closing by the Secretary of State of Nevada;

        

        (3)     all of Mach One’s corporate records;

        

        (4)     stock certificate(s) or a computer listing from Mach One’s transfer agent representing the Exchange Stock to be newly issued together with the issuance of the Exchange Notes, by Mach One
        under this Agreement, which certificates and notes shall be in the names of the appropriate Pacific Rim Shareholders, each in the appropriate denomination as described in Section 2; and

        

        (5)     such other documents, instruments or certificates as shall be reasonably requested by Pacific Rim or its counsel.

        

        4.4     Filings; Cooperation.

         

        (a)     Prior to the Closing, the parties shall proceed with due diligence and in good faith to make such filings and take such other actions as may be necessary to satisfy the conditions precedent set forth in Section 12 below.

        

        (b)     On and after the Closing Date, Mach One, Pacific Rim and the Shareholders set forth in Exhibit A shall, on request and
        without further consideration, cooperate with one another by furnishing or using their best efforts to cause others to furnish any additional information and/or executing and delivering or using their best efforts to cause others to execute and deliver any additional documents and/or instruments, and doing or using their best efforts to cause others to do any and all such other things as may be reasonably required by the parties or their counsel to consummate or otherwise implement the
        transactions contemplated by this Agreement.

         

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        Section 5

        Representations and Warranties by Pacific Rim and Certain Shareholders

        

        5.1     Subject to the schedule of exceptions, attached hereto and incorporated herein by this reference, (which schedules shall be acceptable to Mach One), Pacific
        Rim and those Shareholders listed on Exhibit A represent and warrant to Mach One as follows:

        

        (a)     Organization and Good Standing of Pacific Rim. The Articles of Incorporation of Pacific Rim
        and all Amendments thereto as presently in effect, certified by the Republic of Mauritius, and the Bylaws of Pacific Rim as presently in effect, certified by the President and Secretary of Pacific Rim, have been delivered to
        Mach One and are complete and correct and since the date of such delivery, there has been no amendment, modification or other change thereto.

        

        (b)     Capitalization. The laws of the Republic of Mauritius allow Pacific Rim to issue ordinary shares in any amount (“Pacific Rim Common
        Stock”), subject to shareholder approval, of which 14,630 shares are issued and outstanding prior to the Closing Date, and held of record by approximately thirty (30) persons. All of such outstanding shares are validly issued, fully paid and non-assessable. There are no outstanding options and warrants for Pacific Rim Common Stock. All securities issued by
        Pacific Rim as of the date of this Agreement have been issued in compliance with all applicable state and federal laws. Except as set forth in Schedule 5.1(b), no other equity securities or debt obligations of Pacific Rim are authorized, issued or outstanding.

        

        (c)     Subsidiaries. Other than as set forth in Schedule 5.1 (c), Pacific Rim has no subsidiaries and no other investments, directly or indirectly, or
        other financial interest in any other corporation or business organization, joint venture or partnership of any kind whatsoever.

        

        (d)     Financial Statements. Pacific Rim will deliver to Mach
        One, prior to Closing, a copy of Pacific Rim’s audited financial statements for the years ended December 31, 2007 and 2006, and unaudited financial statements for the nine (9) months ended September 30, 2008, which will be true and complete and will have been prepared in conformity with generally accepted accounting principles. Other than changes
        in the usual and ordinary conduct of the business since September 30, 2008, there have been and, at the Closing Date, there will be no material adverse changes in such financial statements.

        

        (e)     Absence of Undisclosed Liabilities. Other than as set forth in Schedule 5.1 (e), Pacific Rim has no liabilities which are not adequately reflected
        or reserved against in the Pacific Rim Financial Statements or otherwise reflected in this Agreement and Pacific Rim shall not have as of the Closing Date, any liabilities (secured or unsecured and whether accrued, absolute, direct, indirect or otherwise) which were incurred after September
        30, 2008, and would be individually or in the aggregate, material to the results of operations or financial condition of Pacific Rim as of the Closing Date.

         

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        (f)     Litigation. Except as disclosed in Schedule 5.1(f), there are no outstanding orders, judgments, injunctions, awards or decrees of any court, governmental or regulatory body or arbitration tribunal against
        Pacific Rim or its properties. Except as disclosed in Schedule 5.1(f), there are no actions, suits or proceedings pending, or, to the knowledge of Pacific Rim, threatened against or affecting Pacific Rim
        or its affiliated companies, any of its officers or directors relating to their positions as such, or any of its properties, at law or in equity, or before or by any federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, in connection with the business, operations or affairs of Pacific Rim
        or its affiliated company which might result in any material adverse change in the operations or financial condition of Pacific Rim, or which might prevent or materially impede the consummation of the transactions under this Agreement.

        

        (g)     Compliance with Laws. To the best of its knowledge, the operations and affairs of Pacific Rim do not violate any law, ordinance, rule or
        regulation currently in effect, or any order, writ, injunction or decree of any court or governmental agency, the violation of which would substantially and adversely affect the business, financial conditions or operations of Pacific Rim.

        

        (h)     Absence of Certain Changes. Except as set forth in Schedule 5.1(h), or otherwise disclosed in writing to Mach One, since September 30,
        2008,

        

        (1)     Pacific Rim has not entered into any material transaction;

        

        (2)     there has been no change in the condition (financial or otherwise), business, property, prospects, assets or liabilities of Pacific Rim as shown on the Pacific Rim Financial Statement,
        other than changes that both individually and in the aggregate do not have a consequence that is materially adverse to such condition, business, property, prospects, assets or liabilities;

        

        (3)     there has been no damage to, destruction of or loss of any of the properties or assets of Pacific Rim (whether or not covered by insurance) materially and adversely affecting the condition (financial or otherwise), business, property, prospects, assets or liabilities of
        Pacific Rim;

        

        (4)     Pacific Rim has not declared, or paid any dividend or made any distribution on its capital stock, redeemed, purchased or otherwise acquired any of its capital stock, granted any options to purchase shares of its stock, or issued any shares of its capital stock except in conjunction with
        the private placement described in Schedule 5.1(h);

        

        (5)     there has been no material change, except in the ordinary course of business, in the contingent obligations of Pacific Rim by way of guaranty, endorsement, indemnity, warranty or otherwise; and

        

        (6)     there has been no other event or condition of any character, which might reasonably be expected either to result in a material and adverse change in the condition (financial or otherwise), business, property, prospects, assets or liabilities of Pacific Rim or to impair materially the
        ability of Pacific Rim to conduct the business now being conducted.

         

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        (i)      Employees. There are, except as disclosed in Schedule 5.1(i), no collective bargaining, bonus, profit sharing, compensation, or other plans, agreements or arrangements between
        Pacific Rim and any of its directors, officers or employees and there is no employment, consulting, severance or indemnification arrangements, agreements or understandings between Pacific Rim on the one hand, and any current or former directors, officers or employees of
        Pacific Rim on the other hand.

        

        (j)      Assets. All of the assets reflected on the September 30, 2008, Pacific Rim Financial Statements or acquired and held as of the Closing Date, will
        be owned by Pacific Rim on the Closing Date. Except as set forth in Schedule 5.1(j), Pacific Rim owns outright and has good and marketable title, or holds valid and enforceable leases, to all of such assets.

        

        (k)     Tax Matters. Other than as set forth in Schedule 5.1 (k), all federal, foreign, state and local tax returns, reports and information statements required to be filed by or with respect to the activities of
        Pacific Rim have been timely filed. Such returns, reports and information statements are true and correct in all material respects insofar as they relate to the activities of Pacific Rim. On the date of this Agreement, Pacific
        Rim is not delinquent in the payment of any such tax or assessment, and no deficiencies for any amount of such tax have been proposed or assessed.

        

        (l)      Continuation of Key Management. To the best knowledge of Pacific Rim, all key management personnel of
        Pacific Rim intend to continue their employment with Pacific Rim after the Closing. For purposes of this subsection 5.1(m), “key management personnel” shall include Tad M. Ballantyne.

        

        (m)     Books and Records. The books and records of Pacific Rim are complete and correct, are maintained in accordance with good business practice and
        accurately present and reflect, in all material respects, all of the transactions therein described, and there have been no transactions involving Pacific Rim which properly should have been set forth therein and which have not been accurately so set forth.

        

        (n)     Authority to Execute Agreement. The Board of Directors of Pacific Rim, pursuant to the power and authority legally vested in it, has duly
        authorized the execution and delivery by Pacific Rim of this Agreement, and has duly authorized each of the transactions hereby contemplated. Pacific Rim has the power and authority to execute and deliver this Agreement, to consummate the transactions hereby contemplated and to take all
        other actions required to be taken by it pursuant to the provisions hereof. Pacific Rim has taken all actions required by law, its Articles of Incorporation, as amended, or otherwise to authorize the execution and delivery of this Agreement. This Agreement is valid and binding upon Pacific Rim
        and those Shareholders listed in Exhibit A hereto in accordance with its terms.

         

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        (o)     Contracts. Except for commitments to pay for legal and accounting services relating to the Exchange Transaction, Pacific Rim is not a party to any written or oral commitment for capital expenditures except as contemplated by this Agreement. Pacific Rim is not a party to, nor is its
        property bound by any written or oral, express or implied, agreement, contract or other contractual obligation including, without limitation, any real or personal property leases, any employment agreements, any consulting agreements any personal services agreements or any other agreements that require Pacific Rim to pay any money or deliver any assets or services. Pacific Rim has in all material respects performed all obligations required to be performed by it to date and is not in
        default in any material respect under any agreements or other documents to which it was a party.

        

        (p)     Finder’s Fees. Pacific Rim is not, and on the Closing Date will not be liable or obligated to pay any finder’s, agent’s or
        broker’s fee arising out of or in connection with this Agreement or the transactions contemplated by this Agreement.

        

        5.2     Disclosure. At the date of this Agreement, Pacific Rim and those Shareholders listed in Exhibit A have, and at the Closing Date they will
        have, disclosed all events, conditions and facts materially affecting the business and prospects of Pacific Rim. Pacific Rim and such Shareholders have not now and will not have at the Closing Date, withheld knowledge of any such events, conditions or facts which they know, or have
        reasonable grounds to know, may materially affect Pacific Rim’s business and prospects.

        

        Section 6

        Representations and Warranties by Mach One

        

        6.1     Subject to the schedule of exceptions, attached hereto and incorporated herein by this reference, (which schedules shall be acceptable to Pacific Rim), Mach
        One represents and warrants to Pacific Rim and those Shareholders listed in Exhibit A as follows:

        

        (a)     Organization and Good Standing. Mach One is currently a corporation duly organized, validly existing and in good standing under the laws of the
        State of Nevada and has full corporate power and authority to own or lease its properties and to carry on its business as now being conducted and as proposed to be conducted. Mach One is qualified to conduct business as a foreign corporation in no other jurisdiction, and the failure to so qualify in any other jurisdiction does not materially, adversely affect the ability of
        Mach One to carry on its business as most recently conducted. The Articles of Incorporation of Mach One and all amendments thereto as presently in effect, certified by the Secretary of State of Nevada, and the Bylaws of Mach One
        as presently in effect, certified by the President and Secretary of Mach One, have been delivered to Pacific Rim and are complete and correct and since the date of such delivery, there has been no amendment, modification or other change thereto.

        

        (b)     Capitalization. Mach One’s authorized capital stock consists of 250,000,000 consisting of (i) 239, 000,000 shares of $.001 par value Common stock
        (“Mach One Common Stock”), of which not more than 85,000,000 will be issued and outstanding, prior to Closing Date and held of record by approximately 300 shareholders and (ii) 10,500,000 shares of $0.05 par value Preferred Stock (“Mach One Preferred Stock”) of which not more than 1,000,000 shares will be issued and outstanding prior to the Closing Date and held of
        record by approximately one shareholder. Except as set forth in Schedule 6.1(b), no other equity securities or debt obligations of Mach One are authorized, issued or outstanding and as of the Closing, there will be no other outstanding options, warrants, agreements, contracts, calls, commitments or demands of any character, preemptive or otherwise, other than this Agreement, relating
        to any of the Mach One Common Stock, and there will be no outstanding security of any kind convertible into Mach One Common Stock. The shares of Mach One Common Stock are free and clear of
        all liens, charges, claims, pledges, restrictions and encumbrances whatsoever of any kind or nature that would inhibit prevent or otherwise interfere with the transactions contemplated hereby. All of the outstanding Mach One Common Stock is validly issued, fully paid and nonassessable and there are no voting trust agreements or other contracts, agreements or arrangements restricting or
        affecting voting or dividend rights or transferability with respect to the outstanding shares of Mach One Common Stock.

         

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        (c)     Issuance of Exchange Securities. All of the Mach One Exchange Stock and Exchange Notes to be issued to or transferred to
        Pacific Rim Shareholders pursuant to this Agreement, when issued, transferred and delivered as provided herein, will be duly authorized, validly issued, fully paid and nonassessable, and will be free and clear of all liens, charges, claims, pledges, restrictions and encumbrances whatsoever of any kind or nature, except those restrictions imposed by State or Federal corporate and securities
        regulations.

        

        (d)     No Violation. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby nor compliance by Mach One
        with any of the provisions hereof will:

        

        (1)     violate or conflict with, or result in a breach of any provisions of, or constitute a default ( or an event which, with notice or lapse of time or both, would constitute a default) under, any of the terms, conditions or provisions of the Articles of Incorporation or Bylaws of
        Mach One or any note, bond, mortgage, indenture, deed of trust, license, agreement or other instrument to which Mach One is a party, or by which it or its properties or assets may be bound or affected; or

        

        (2)     violate any order, writ, injunction or decree, or any statute, rule, permit, or regulation applicable to Mach One or any of its properties or assets.

        

        (e)     Subsidiaries. Except as set forth in Schedule 6.1(e), Mach One has no subsidiaries and no investments, directly or indirectly, or other financial
        interest in any other corporation or business organization, joint venture or partnership of any kind whatsoever.

        

        (f)      Financial Statements. Mach One will deliver to Pacific Rim
        prior to Closing, copies of all of Mach One’s audited and unaudited financial statements through September 30, 2008, all of which are true and complete and have been prepared in accordance with generally accepted accounting principles.

        

        (g)     SEC Filings. Mach One will deliver to Pacific Rim prior to Closing, copies of all
        of Mach One's recent filings made with the Securities and Exchange Commission (“SEC”), including Forms 10-KSB and 10-QSB and any proxy material).

         

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        (h)     Absence of Certain Changes. Since September 30, 2008 there has been no material change in Mach One’s financial conditions, assets or
        liabilities, except as set forth in Schedule 6.1(h).

        

        (i)      Absence of Undisclosed Liabilities. Except as disclosed in Mach One’s Financial Statements,
        Mach One did not have, as of the Closing Date, any liabilities (secured or unsecured and whether accrued, absolute, direct, indirect or otherwise) which were incurred after September 30, 2008, and would be individually or in the aggregate, material to the results of operation or financial condition of Mach
        One.

        

        (j)     Litigation. Except as disclosed in Schedule 6.1(j) there are no outstanding orders, judgments, injunctions, awards or decrees of any court, governmental or regulatory body or arbitration tribunal against Mach One
        or its properties. Except as disclosed in Schedule 6.1(j) there are no actions, suits or proceedings pending, or, to the knowledge of Mach One, threatened against or relating to Mach One. Mach
        One is not, and on the Closing Date will not be, in default under or with respect to any judgment, order, writ, injunction or decree of any court or of any federal, state, municipal or other governmental authority, department, commission, board, agency or other instrumentality; and Mach One has, and on the Closing Date will have, complied in all
        material respects with all laws, rules, regulations and orders applicable to it, if any.

        

        (k)     Contracts. Mach One is not a party to any written or oral commitment for capital expenditures except as contemplated by this Agreement.
        Mach One is not a party to, nor is its property bound by any written or oral, express or implied, agreement, contract or other contractual obligation including, without limitation, any real or personal property leases, any employment agreements, any consulting agreements any personal services agreements or any other agreements that require
        Mach One to pay any money or deliver any assets or services. Mach One has in all material respects performed all obligations required to be performed by it to date and is not in default in any material respect under any agreements or other documents to which it was a party.

        

        (l)     Tax Matters. Except as set forth in Schedule 6.1(l), all federal, foreign, state and local tax returns, reports and information statements required to be filed by or with respect to the activities of
        Mach One have been filed for all the years and periods for which such returns and statements were due, including extensions thereof. Such returns, reports and information statements are true and correct in all material respects insofar as they relate to the activities of Mach One. On the date of
        this Agreement, Mach One is not delinquent in the payment of any such tax or assessment, and no deficiencies for any amount of such tax have been proposed or assessed.

        

        (m)     Authority to Execute Agreement. The Board of Directors of Mach One, pursuant to the power and authority legally vested in it, has duly authorized
        the execution and delivery by Mach One of this Agreement and the Exchange Stock, and has duly authorized each of the transactions hereby contemplated. Mach One has the power and authority to execute and deliver this Agreement, to consummate the transactions hereby contemplated and to take
        all other actions required to be taken by it pursuant to the provisions hereof. Mach One has taken all the actions required by law, its Certificate of Incorporation, as amended, its Bylaws, as amended, applicable state law or otherwise to authorize the execution and delivery of the Exchange Stock pursuant to the provisions hereof. This Agreement is valid and binding upon
        Mach One in accordance with its terms.

         

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        (n)     Finder’s Fees. Mach One is not, and on the Closing Date, will not be liable or obligated to pay any finder’s, agent’s or
        broker’s fee arising out of or in connection with this Agreement or the transactions contemplated by this Agreement.

        

        (o)     Books and Records. The books and records of Mach One are complete and correct, are maintained in accordance with good business practice and accurately present and reflect in all
        material respects, all of the transactions therein described and there have been no transactions involving Mach One which properly should have been set forth therein and which have not been accurately so set forth.

        

        6.2     Disclosure. Mach One has and at the Closing Date it will have, disclosed all events, conditions and facts materially affecting the business and
        prospects of Mach One. Mach One has not now and will not have at the Closing Date, withheld knowledge of any such events, conditions and facts which it knows, or has reasonable grounds to know, may materially affect Mach
        One’s business and prospects.

        

        Section 7

        Access and Information

        

        7.1     As to Pacific Rim. Subject to the protections provided by subsection 10.4 herein, Pacific Rim
        shall give to Mach One and to Mach One’s counsel, accountants and other representatives full access during normal business hours throughout the period prior to the Closing, to all of Pacific
        Rim’s properties, books, contracts, commitments, and records, including information concerning products and customer base, and patents held by, or assigned to, Pacific Rim, and furnish Mach One during such period with all such information
        concerning Pacific Rim’s affairs as Mach One reasonably may request.

        

        7.2     As to Mach One. Subject to the protections provided by subsection 10.4 herein, Mach One shall give
        to Pacific Rim, the Pacific Rim Shareholders and their counsel, accountants and other representatives, full access, during normal business hours throughout the period prior to the Closing, to all of Mach
        One’s properties, books, contracts, commitments, and records, if any, and shall furnish Pacific Rim and the Pacific Rim Shareholders during such period with all such information concerning
        Mach One’s affairs as Pacific Rim and the Pacific Rim Shareholders reasonably may request.

         

        Section 8

        Covenants of Pacific Rim and Certain Shareholders

        

        8.1     No Solicitation. For a period of forty-five (45) days from the date of this Agreement, Pacific Rim and those Shareholders listed on
        Exhibit A, to the extent within each Shareholder’s control, will use their best efforts to cause its officers, employees, agents and representatives not, directly or indirectly, to solicit, encourage, or initiate any discussions with, or indirectly to solicit, encourage, or initiate any discussions with, to, any person or entity other than Mach One and its officers, employees,
        and agents, concerning any merger, sale of substantial assets, or similar transaction involving Pacific Rim, or any sale of any of its capital stock or of the capital stock held by such Shareholders in excess of fifty percent (50%) of such Shareholder’s current stock holdings except as otherwise disclosed in this Agreement.
        Pacific Rim will notify Mach One immediately upon receipt of an inquiry, offer, or proposal relating to any of the foregoing. None of the foregoing shall prohibit providing information to others in a manner in keeping with the ordinary conduct of
        Pacific Rim’s business, or providing information to government authorities.

         

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        8.2     Conduct of Business Pending the Transaction. Pacific Rim and those Shareholders listed on Exhibit A, to the extent within each Shareholder’s control, covenant and agree
        with Mach One that, prior to the consummation of the transaction called for by this Agreement, and Closing, or the termination of this Agreement pursuant to its terms, unless Mach One shall otherwise consent in writing, and except as otherwise contemplated by this Agreement,
        Pacific Rim and those Shareholders listed on Exhibit A, to the extent within each Shareholder’s control, will comply with each of the following:

        

        (a)     Its business shall be conducted only in the ordinary and usual course. Pacific Rim shall use reasonable efforts to keep intact its business organization and good will, keep available the services of its respective officers and
        employees, and maintain good relations with suppliers, creditors, employees, customers, and others having business or financial relationships with it, and it shall immediately notify Mach One of any event or occurrence which is material to, and not in the ordinary and usual course of business of Pacific
        Rim.

        

        (b)     It shall not (i) amend its Articles of Incorporation or Bylaws or (ii) split, combine, or reclassify any of its outstanding securities, or declare, set aside, or pay any dividend or other distribution on, or make or agree or commit to make any exchange for or redemption of any such securities payable in cash, stock
        or property.

        

        (c)     It shall not (i) issue or agree to issue any additional shares of, or rights of any kind to acquire any shares of, its capital stock of any class, or (ii) enter into any contract, agreement, commitment, or arrangement with respect to any of the foregoing, except as set forth in this Agreement.

        

        (d)     It shall not create, incur, or assume any long-term or short-term indebtedness for money borrowed or make any capital expenditures or commitment for capital expenditures, except in the ordinary course of business and consistent with past practice.

        

        (e)     It shall not (i) adopt, enter into, or amend any bonus, profit sharing, compensation, stock option, warrant, pension, retirement, deferred compensation, employment, severance, termination or other employee benefit plan, agreement, trust fund, or arrangement for the benefit or welfare of any officer, director, or
        employee, or (ii) agree to any material (in relation to historical compensation) increase in the compensation payable or to become payable to, or any increase in the contractual term of employment of, any officer, director or employee except, with respect to employees who are not officers or directors, in the ordinary course of business in accordance with past practice, or with the written approval of Mach
        One.

        

         

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        (f)     It shall not sell lease, mortgage, encumber, or otherwise dispose of or grant any interest in any of its assets or properties except for: (i) sales, encumbrances, and other dispositions or grants in the ordinary course of business and consistent with past practice; (ii) liens for taxes not yet due; (iii) liens
        or encumbrances that are not material in amount or effect and do not impair the use of the property, or (iv) as specifically provided for or permitted in this Agreement.

        

        (g)     It shall not enter into any material agreement, commitment, or understanding, whether in writing or otherwise, with respect to any of the matters referred to in subparagraphs (a) through (f) above.

        

        (h)     It will continue properly and promptly to file when due all federal, state, local, foreign, and other tax returns, reports, and declarations required to be filed by it, and will pay, or make full and adequate provision for the payment of, all taxes and governmental charges due from or payable by it.

        

        (i)     It will comply with all laws and regulations applicable to it and its operations.

        

        Section 9

        Covenants of Mach One

        

        9.1    No Solicitation. For a period of forty-five (45) days from the date of this Agreement, Mach One will not discuss or negotiate with any other
        corporation, firm or other person or entertain or consider any inquiries or proposals relating to the possible disposition of its shares of capital stock, or its assets, and will conduct business only in the ordinary course. Notwithstanding the foregoing, Mach One shall be free to engage in activities mentioned in the preceding sentence, which are designed to further the mutual interests
        of the parties to this Agreement.

        

        9.2     Conduct of Mach One Pending Closing. Mach One covenants and agrees
        with Pacific Rim that, prior to the consummation of the transactions called for by this Agreement, and Closing, or the termination of this Agreement pursuant to its terms, unless Pacific Rim shall otherwise consent in writing, and except as otherwise contemplated by this Agreement,
        Mach One will comply with each of the following.

        

        (a)     No change will be made in Mach One’s Certificate of Incorporation or Bylaws or in Mach One’s authorized or issued
        shares of stock, except as contemplated in this Agreement or as may be first approved in writing by Pacific Rim.

        

        (b)     No dividends shall be declared, no stock options granted and no employment agreements shall be entered into with officers or directors in Mach One, except as may be first approved in writing by Pacific
        Rim.

        

        (c)     It shall not (i) issue or agree to issue any additional shares of, or rights of any kind to acquire any shares of, its capital stock of any class, or (ii) enter into any contract, agreement, commitment, or arrangement with respect to any of the foregoing, except as set forth in this Agreement.

         

        15

         

        
            

        

         

        

        (d)     It shall not create, incur, or assume any long-term or short-term indebtedness for money borrowed or make any capital expenditures or commitment for capital expenditures, except in the ordinary course of business and consistent with past practice.

        

        (e)     It shall not (i) adopt, enter into, or amend any bonus, profit sharing, compensation, stock option, warrant, pension, retirement, deferred compensation, employment, severance, termination or other employee benefit plan, agreement, trust fund, or arrangement for the benefit or welfare of any officer, director, or
        employee, or (ii) agree to any material (in relation to historical compensation) increase in the compensation payable or to become payable to, or any increase in the contractual term of employment of, any officer, director or employee except, with respect to employees who are not officers or directors, in the ordinary course of business in accordance with past practice, or with the written approval of Pacific
        Rim.

        

        (f)     It shall not sell lease, mortgage, encumber, or otherwise dispose of or grant any interest in any of its assets or properties except for: (i) sales, encumbrances, and other dispositions or grants in the ordinary course of business and consistent with past practice; (ii) liens for taxes not yet due; (iii) liens
        or encumbrances that are not material in amount or effect and do not impair the use of the property, or (iv) as specifically provided for or permitted in this Agreement.

        

        (g)     It shall not enter into any material agreement, commitment, or understanding, whether in writing or otherwise, with respect to any of the matters referred to in subparagraphs (a) through (f) above.

        

        (h)     It will continue properly and promptly to file when due all federal, state, local, foreign, and other tax returns, reports, and declarations required to be filed by it, and will pay, or make full and adequate provision for the payment of, all taxes and governmental charges due from or payable by it.

        

        (i)     It will comply with all laws and regulations applicable to it and its operations.

        

        Section 10

        Additional Covenants of the Parties

        

        10.1   Cooperation. Both Pacific Rim and Mach One will
        cooperate with each other and their respective counsel, accountants and agents in carrying out the transaction contemplated by this Agreement, and in delivering all documents and instruments deemed reasonably necessary or useful by the other party. Furthermore, both Pacific Rim and Mach One
        shall collaborate on the preparation and dissemination of an offer, which the Board of Directors of Pacific Rim shall approve and recommend, to the Pacific Rim Stockholders, to exchange their outstanding shares of
        Pacific Rim Common Stock for shares of Mach One Common Stock and Promissory Notes.

        

        10.2  Expenses. Each of the parties hereto shall pay all of its respective costs and expenses (including attorneys’ and accountants’ fees, costs and expenses) incurred in connection with this Agreement and the consummation of the transactions contemplated herein.

         

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        10.3  Publicity. Prior to the Closing, any written news releases or public disclosure by either party pertaining to this Agreement shall be submitted to the other party for its review and approval prior to such release or disclosure, provided, however, that (a) such approval shall not be
        unreasonably withheld, and (b) such review and approval shall not be required of disclosures required to comply, in the judgment of counsel, with federal or state securities or corporate laws or policies.

        

        10.4  Confidentiality. While each party is obligated to provide access to and furnish information in accordance with Section 6 herein, it is understood and agreed that such disclosure and information subsequently obtained as a result of such disclosures are proprietary and confidential in nature. Each
        party agrees to hold such information in confidence and not to reveal any such information to any person who is not a party to this Agreement, or an officer, director or key employee thereof, and not to use the information obtained for any purpose other than assisting in its due diligence inquiry in conjunction with the transaction contemplated by this Agreement. Upon request of any party, a confidentiality agreement, acceptable to the disclosing party, will be executed by any person
        selected to receive such proprietary information, prior to receipt of such information.

        

        Section 11

        Survival of Representations, Warranties and Covenants

        

        11.1  The representations, warranties and covenants of Pacific Rim and those Shareholders listed in Exhibit A contained herein shall survive the execution and delivery of this Agreement for a period of one (1) year from the Closing Date. The
        representations, warranties and covenants of Mach One contained herein shall survive the execution and delivery of this Agreement for a period of one (1) year from the Closing Date.

        

        Section 12

        Conditions Precedent to Obligations of Parties

        

        12.1  Conditions to Obligations of the Parties. The obligations of Mach One, Pacific Rim
        and those Shareholders listed in Exhibit A under this Agreement shall be subject to the fulfillment, on or prior to the Closing, of all conditions elsewhere herein set forth, including, but not limited to, receipt by the appropriate party of all deliveries required by Sections 5 and 6 herein, and fulfillment, prior to Closing, of each of the following conditions:

        

        (a)     All representations and warranties made by Pacific Rim Shareholders listed in Exhibit A and Mach One in this Agreement
        shall be true and correct in all material respects on and as of the Closing Date with the same effect as if such representations and warranties had been made on and as of the Closing Date.

        

        (b)     Pacific Rim Shareholders listed in Exhibit A and Mach One shall have performed or complied with all covenants, agreements
        and conditions contained in this Agreement on their part required to be performed or complied with at or prior to the Closing.

         

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        (c)     All material authorizations, consents or approvals of any and all governmental regulatory authorities necessary in connection with the consummation of the transactions contemplated by this Agreement shall have been obtained and be in full force and effect.

        

        (d)     The Closing shall not violate any permit or order, decree or judgment of any court or governmental body having competent jurisdiction and there shall not have been instituted any legal or administrative action or proceeding to enjoin the transaction contemplated hereby or seeking damages from any party with respect
        thereto.

        

        12.2           Conditions to Obligations of Mach One. The obligations of
        Mach One to consummate the transactions contemplated herein are subject to satisfaction (or waiver by it) of the following conditions:

        

        (a)     Each Pacific Rim Shareholder acquiring Exchange Stock will be required, at Closing, to submit an agreement confirming that all the Exchange Stock received will be acquired for investment and not with a view to, or for sale in
        connection with, any distribution thereof, and agreeing not to transfer any of the Exchange Stock for a period of six months from the date of the Closing, except for those transfers falling within the exemption from registration under the Securities Act of 1933 and any applicable state securities laws, which transfers do not constitute a public distribution of securities, and in which the transferees execute an investment letter in form and substance satisfactory to counsel for
        Mach One. The foregoing provision shall not prohibit the registration of those shares at any time following the Closing. Each Pacific Rim Shareholder acquiring Exchange Stock will be required to transfer to Mach One
        at the Closing his/her respective Pacific Rim Shares, free and clear of all liens, mortgages, pledges, encumbrances or changes, whether disclosed or undisclosed.

        

        (b)     All schedules, prepared by Pacific Rim shall be current or updated as necessary as of the Closing Date.

        

        (c)     If shareholders, who in the aggregate own forty percent (40%) or more of the Pacific Rim shares of Common Stock, dissent from the proposed share exchange, or are unable or for any reason refuse to transfer any or all of
        their Pacific Rim shares of Common Stock to Mach One in accordance with Section 1 of this Agreement, Mach One, at its option, may terminate this Agreement.

        

        (d)     Each party shall have satisfied itself that since the date of this Agreement the business of the other party has been conducted in the ordinary course. In addition, each party shall have satisfied itself that no withdrawals of cash or other assets have been made and no indebtedness has been incurred since the date of this
        Agreement, except in the ordinary course of business or with respect to services rendered or expenses incurred in connection with the Closing of this Agreement, unless said withdrawals or indebtedness were either authorized by the terms of this Agreement or subsequently consented to in writing by the parties.

         

        18

         

        
            

        

         

        

        (e)     Each party covenants that, to the best of its knowledge, it has complied in all material respects with all applicable laws, orders and regulations of federal, state, municipal and/or other governments and/or any instrumentality thereof, domestic or foreign, applicable to their assets, to the business conducted by them and to
        the transactions contemplated by this Agreement.

        

        12.3           Conditions to Obligation of Pacific Rim and the Pacific Rim
        Shareholders. The obligations of Pacific Rim and the Pacific Rim Shareholders listed in Exhibit A to consummate the transactions contemplated herein are subject to satisfaction (or waiver by them) of the following
        conditions:

        

        (a)     Mach One shall have provided to Pacific Rim through September 30, 2008, all unaudited financial statements prepared in
        accordance with generally accepted accounting principles by independent accountants of Mach One. Mach One shall also provide, as of a date within thirty days of Closing, an update on any material change in the aforementioned financial statements.

        

        (b)     Each party shall have granted to the other party (acting through its management personnel, counsel, accountants or other representatives designated by it) full opportunity to examine its books and records, properties, plants and equipment, proprietary rights and other instruments, rights and papers of all kinds in accordance
        with Sections 5 and 6 hereof, and each party shall be satisfied to proceed with the transactions contemplated by this Agreement upon completion of such examination and investigation.

        

        (c)     The Exchange shall be approved by the shareholders of Mach One, if deemed necessary or appropriate by counsel Mach One, within
        thirty (30) days following execution of this Agreement. If such meeting is deemed necessary, the management of Mach One agrees to recommend approval to its shareholders and to solicit proxies in support of the same. Any proxy material to be provided to the Mach One Shareholders shall be
        prepared and filed with the SEC as required by their SEC proxy Rules and Regulations.

        

        (d)     Mach One and Pacific Rim shall agree to indemnify each other party against any liability to any broker or finder to which that
        party may become obligated.

        

        (e)     The Exchange shall be approved by the Board of Directors of both Pacific Rim and Mach One. Furthermore, the Exchange shall be
        approved by the shareholders of Pacific Rim, if deemed necessary or appropriate by counsel for the same, within thirty (30) days following execution of this Agreement. If such a meeting is deemed necessary, the management of Pacific Rim and
        Mach One agree to recommend approval to their respective Shareholders and to solicit proxies in support of the same.

        

        (f)     Mach One and Pacific Rim and their respective legal counsel shall have received copies of all such certificates and other
        documents and instruments as each party or its legal counsel may reasonably request pursuant to this Agreement or otherwise in connection with the consummation of the transactions contemplated hereby, and all such certificates, opinions and other documents and instruments received by each party shall be reasonably satisfactory, in form and substance, to each party and its legal counsel.

         

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        (g)     Both Pacific Rim and Mach One shall have the right to waive any or all of the conditions precedent to its obligations hereunder not otherwise legally required; provided, however, that no
        waiver by a party of any condition precedent to its obligations hereunder shall constitute a waiver by such party of any other condition.

        

        (h)     Mach One shall have obtained all necessary Blue Sky approvals or exemptions for the issuance of the Exchange Securities the required prior to the Closing Date.

        

        (i)     Completion of the (i) renegotiated Mach One Notes Payable, (ii) cancellation, conversion or repurchase of the Mach One Preferred Stock, and (iii) executive compensation agreements, as set forth in Section 3.

        

        Section 13

        Termination, Amendment, Waiver

        

        13.1  This Agreement may be terminated at any time prior to the Closing, and the contemplated transactions abandoned, without liability to either party, except with respect to the obligations of Mach One,
        Pacific Rim and those Pacific Rim Shareholders listed in Exhibit A under Section 10.4 hereof:

        

        (a)     By mutual agreement of Mach One and Pacific Rim;

        

        (b)     If the Closing (as defined in Section 4) has not have taken place within forty-five (45) days from the date of this Agreement can be terminated upon written notice given by Mach One or
        Pacific Rim which is not in material default;

        

        (c)     By Mach One, if in its reasonable believe there has been a material misrepresentation or breach of warranty on the part of any Shareholder listed in Exhibit A in the representations and warranties set forth in the
        Agreement.

        

        (d)     By Pacific Rim or a majority of those Shareholders listed in Exhibit A (as measured by their equity interest) if, in the reasonable belief of Pacific
        Rim or any such Shareholders, there has been a material misrepresentation or breach of warranty on the part of Mach One in the representations and warranties set forth in the Agreement;

        

        (e)     By Mach One if, in its opinion or that of its counsel, the Exchange does not qualify for exemption from registration under applicable federal and state securities laws, or qualification, if obtainable, cannot be accomplished
        in Mach One’s opinion or that of its counsel, without unreasonable expense or effort;

        

        (f)     By Mach One or by a majority of those Shareholders listed in Exhibit A (as measured by their equity interest) if either party shall determine in its sole discretion that the Exchange has become inadvisable or impracticable
        by reason of the institution or threat by state, local or federal governmental authorities or by any other person of material litigation or proceedings against any party [it being understood and agreed that a written request by a governmental authority for information with respect to the Exchange, which information could be used in connection with such litigation or proceedings, may be deemed to be a threat of material litigation or proceedings regardless of whether such request is
        received before or after the signing of this Agreement];

         

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        (g)     By Mach One if the business or assets or financial condition of Pacific Rim, taken as a whole, have been materially and
        adversely affected, whether by the institution of litigation or by reason of changes or developments or in operations in the ordinary course of business or otherwise; or, by a majority of those Shareholders listed in Exhibit A (as measured by their equity interest) if the business or assets or financial condition of Mach One, taken as a whole, have been materially and adversely
        affected, whether by the institution of litigation or by reason of changes or developments or in operations in the ordinary course of business or otherwise;

        

        (h)     By Mach One if holders of forty percent (40%) or more of the Pacific Rim Shares fail to tender their stock at the Closing of
        the Exchange;

        

        (i)     By Mach One or Pacific Rim if, in the opinion of Mach
        One’s independent accountants, it should appear that the combined entity will not be auditable to SEC accountants standards;

        

        (j)     By Pacific Rim if Mach One fails to perform material conditions set forth in Sub-Section 12.1 and 12.3 herein;

        

        (k)     By Pacific Rim if examination of Mach One’s books and records pursuant to Section 6 herein uncovers a material
        deficiency;

        

        (l)     By Mach One if Pacific Rim fails to perform material conditions set forth in Sub-Section 12.1 and 12.2 herein;
        and

        

        (m)     By Mach One if examination of Pacific Rim’s books and records pursuant to Section 5 herein uncovers a material
        deficiency.

        

        13.2     No modification or amendment of any provision of this Agreement shall be effective unless specifically made in writing and duly signed by the party to

                    be bound.

        

        Section 14

        Miscellaneous

        

        14.1     Entire Agreement. This Agreement (including the Exhibits and Schedules hereto) contains the entire agreement between the parties with respect to the  

                   transactions contemplated hereby, and supersedes all negotiations, representations, warranties, commitments, offers, contracts, and writings prior to the

                   date hereof. No waiver and no modification or amendment of any provision of this Agreement shall be effective unless specifically made in writing and duly 

                   signed by the party to be bound thereby.

        

        14.2     Binding Agreement.

        

        (a)     This Agreement shall become binding upon the parties when, but only when, it shall have been signed on behalf of all parties.

         

        21

         

        
            

        

         

        

        (b)     Subject to the condition stated in subsection (a), above, this Agreement shall be binding upon, and inure to the benefit of, the respective parties and their legal representatives, successors and assigns. This Agreement, in all of its particulars, shall be enforceable by the means set forth in subsection 14.9
        for the recovery of damages or by way of specific performance and the terms and conditions of this Agreement shall remain in full force and effect subsequent to Closing and shall not be deemed to be merged into any documents conveyed and delivered at the time of Closing. In the event that subsection 14.9 is found to be unenforceable as to any party for any reason or is not invoked by any party, and any person is required to initiate any action at law
        or in equity for the enforcement of this Agreement, the prevailing party in such litigation shall be entitled to recover from the party determined to be in default, all of its reasonable costs incurred in said litigation, including attorneys’ fees.

        

        14.3  Shareholders Owning at Least Ten Percent (10%) of the Outstanding Common Stock of Pacific Rim. The Shareholders owning at least 10% of the outstanding common stock of
        Pacific Rim (see Exhibit A hereto) are only executing this Agreement with respect to Sections 4.4, 5, 8, 10.4, 11, 12.1 and 12.3, 13.1(d and f), 14.2, 14.3, 14.4, 14.8, 14.9 and 14.10.

        

        14.4  Counterparts. This Agreement may be signed in counterparts by facsimile, which shall be deemed the same as an original signature and may be used for all purposes as if it were an original, and when said counterparts have been exchanged between the parties, they shall be of full force and
        effect.

        

        14.5   Severability. If any provisions hereof are to be held invalid or unenforceable by any court of competent jurisdiction or as a result of future legislative action, such holding or action shall be strictly construed and shall not affect the validity or effect or any other provision
        hereof.

        

        14.6  Assignability. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto; provided that neither this Agreement nor any right hereunder shall be assignable by Pacific Rim
        or Mach One without prior written consent of the other party.

        

        14.7  Captions. The captions of the various Sections of this Agreement have been inserted only for convenience of reference and shall not be deemed to modify, explain, enlarge or restrict any of the provisions of this Agreement.

        

        14.8  Governing Law. The validity, interpretation and effect of this Agreement shall be governed exclusively by the laws of the State of Wisconsin.

        

        14.9  Jurisdiction and Venue. Each party hereto irrevocably consents to the jurisdiction and venue of the state or federal courts located in Ozaukee County,
        State of Wisconsin, in connection with any action, suit, proceeding or claim to enforce the provisions of this Agreement, to recover damages for breach of or default under this Agreement, or otherwise arising under or by reason of this Agreement. The prevailing party may recover costs and reasonable attorney’s fees.

         

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        14.10  Arbitration. Any dispute between the parties relating in any way to this Agreement or any of its terms and provisions shall be submitted to binding 

                  arbitration before a single arbitrator in Ozaukee County, Wisconsin, before JAMS and the prevailing party in such arbitration shall have the right to have 

                  any award made by arbitrators confirmed by a court of competent jurisdiction. The provisions of the Wisconsin Code of Civil Procedure, authorizing and 

                  taking of depositions and obtaining discovery are incorporated herein by this reference and shall be applicable to any such arbitration. Any such arbitration

                 shall be conducted in an expeditious manner. Any such arbitration shall be governed by the JAMS complex arbitration rules and the JAMS optional

                 arbitration appeal procedure.

        

        14.11     Notices. Any notice required or permitted to be given under this Agreement shall be delivered (a) by hand, (b) by registered or certified mail, postage

                      prepaid, return receipt requested, to the address of the other party first set forth above, or to such other address as a party may designate by written notice

                      in accordance with this Section 14.11, (c) by overnight courier, or (d) by fax with confirming letter mailed under
        the conditions  described in (b) above.

                     Notice so given shall be deemed effective when received, or if not      received by reason of fault of addressee, when delivered.

        

                    To Pacific Rim:

         

                       Tad M. Ballantyne, Chief Executive Officer

                       Pacific Rim Foods, Ltd.

                       3505 Chatham Street 

                       Racine, WI 53402

                       Fax (262) 652-3532

                       mrmodern@msn.com

         

                  With a Copy to:

         

                       William B. Barnett, Esq.

                       Law Offices of William B. Barnett

                       21550 Oxnard Street, Suite 200

                       Woodland Hills, California 91367

                       Fax (818) 999-2269

                       Email: wbarnett@wbarnettlaw.com

         

                  

                  To Mach One:

         

                       Monte B. Tobin, Chief Executive Officer

                       Mach One Corporation

                       6430 Congress Drive

                       West Bend, WI 53095

                       Fax (262) 675-0629

                       Email: MonteB@charter.net

         

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                  With a Copy to:

         

                       Steven L. Slaw PC

                       2175 Point Boulevard, Suite 125

                       Elgin, Illinois 60123

                       Fax (630) 982-6580

                       Email: steve@slawlaw.com

         

        

               Any party may from time to time change its address for the purpose of notices to that party by a similar notice specifying a new address, but no such change

              shall be deemed to have been given until it is actually received by the respective party hereto.

        

              All notices and other communications required or permitted under this Agreement which are addressed as provided in this Section 14.11 if delivered

              personally or by fax, shall be effective upon delivery; and, if delivered by mail, shall be effective three days following deposit in the United States mail, postage

              prepaid.

        

             In Witness Whereof, the parties hereto have executed this Agreement as of the date first written above.

        

        

        	 	
                    Mach One Corporation

                     

                     

                
	 	
                    By:  /s/ Monte B. Tobin

                    Monte B. Tobin, Chief Executive Officer

                
	 	 
	 	 
	 	
                    Pacific Rim Foods, Ltd.

                     

                     

                
	  	
                    By:  /s/ Tad M. Ballantyne

                    Tad M. Ballantyne, Chief Executive Officer

                

        

        

         

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        Exhibit List

        

        

        	
                    Exhibit A:

                	
                    Ten Percent Shareholders of Pacific Rim Foods, Ltd.

                     

                
	
                    Exhibit B:

                	
                    Consent of Board of Directors of Pacific Rim Foods, Ltd.

                     

                
	
                    Exhibit C:

                	
                    Consent of Board of Directors of Mach One Corporation

                     

                

        

        

        

        Schedule List

        

        

        	
                    Schedule 5.1(b):

                	
                    Common Stock, Options and Warrants Outstanding – Pacific Rim Foods, Ltd.

                     

                
	
                    Schedule 5.1(c):

                	
                    Subsidiaries – Pacific Rim Foods, Ltd.

                     

                
	
                    Schedule 5.1(e):

                	
                    Absence of Undisclosed Liabilities – Pacific Rim Foods, Ltd.

                     

                
	
                    Schedule 5.1(f):

                	
                    Litigation Involving Pacific Rim Foods, Ltd.

                     

                
	
                    Schedule 5.1(h):

                	
                    Absence of Certain Changes – Pacific Rim Foods, Ltd.

                     

                
	
                    Schedule 5.1(i):

                	
                    Employee Benefit Plans – Pacific Rim Foods, Ltd.

                     

                
	
                    Schedule 5.1(j):

                	
                    Asset Ownership Exceptions – Pacific Rim Foods, Ltd.

                     

                
	
                    Schedule 5.1(k):

                	
                    Tax Matters – Pacific Rim Foods, Ltd.

                     

                
	
                    Schedule 5.1(l):

                	
                    Operating Permits/Licenses – Pacific Rim Foods, Ltd.

                     

                
	
                    Schedule 5.1(m):

                	
                    Continuation of Key Management – Pacific Rim Foods, Ltd.

                     

                
	
                    Schedule 6.1(b):

                	
                    Common Stock, Options and Warrants Outstanding – Mach One Corporation

                     

                
	
                    Schedule 6.1(e):

                	
                    Subsidiaries – Mach One Corporation

                     

                
	
                    Schedule 6.1(h):

                	
                    Absence of Certain Changes – Mach One Corporation

                     

                
	
                    Schedule 6.1(j):

                	
                    Litigation Involving Mach One Corporation

                     

                
	
                    Schedule 6.1(l):

                	
                    Tax Matters – Mach One Corporation,

                     

                

        

        

         

        25

        

        

        
            

        

        Exhibit A

        

        Ten Percent Shareholders of Pacific Rim Foods, Ltd.

        

        

        	
                    Shareholder

                	
                    Number

                    of Shares

                	
                    PercentageExhibit 10.2

         

        THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933; THEY HAVE BEEN ACQUIRED BY THE HOLDER FOR INVESTMENT AND MAY NOT BE PLEDGED, HYPOTHECATED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT AS MAY BE AUTHORIZED UNDER THE SECURITIES ACT OF 1933 AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER.

        

        MACH ONE CORPORATION

        Zero Coupon Convertible Subordinated

        

        

        	
                    Promissory Note Due 2013

                    

                    Issue Price: $1,500,000                               Issue Date: December 12, 2008

                    Maturity Value: $1,914,420                         Maturity Date: December 12, 2013

                    Compounded Per Annum Yield: 5.0%

                

        

        

        For value received, MACH ONE CORPORATION, a Nevada corporation (the "Company"), hereby promises to pay to the order
        of______________________, (hereinafter referred to as the "Payee" and/or “Purchaser”), or registered assigns, on the Maturity Date the Maturity Value, subject to any right of redemption, as provided for herein, in lawful money of the United States of America, in immediately available funds,
        at ____________________________________________ (the “Principal Address” of the Payee) or at such other place as the legal holder may designate from time to time in writing to the
        Company, or upon earlier redemption of this Note, as set forth below, at the Issue Price plus the Compounded Per Annum Yield from the Issue Date.

        

        This Promissory Note is issued pursuant to and is entitled to the benefits of a certain Plan and Agreement of Reorganization, dated as of December 12, 2008, among the Company and certain Purchasers identified therein, as the same may be amended from time to time (the "Agreement"), and each holder of this Promissory Note, by its acceptance hereof, agrees to be bound by the provisions of the Agreement, a copy of
        which may be inspected by the legal holder hereof at the principal office of the Company. As provided herein, (i) this Promissory Note is subject to prepayment in Section 5.1 herein, (ii) the payment of this Promissory Note is subordinated to Senior Debt, as defined
        herein, and (iii) in case of an Event of Default as defined herein, this Promissory Note may become or may be declared due and payable in the manner and with the effect provided for herein. Except as expressly provided in Section 5.1
        herein, the Company has no right or power to prepay this Promissory Note.

        As further provided herein, upon surrender of this Promissory Note for transfer or exchange, a new Promissory Note or new Promissory Notes of the same tenor, dated the original date of the Promissory Note and in an aggregate Issue Price equal to the unpaid Issue Price, and in an aggregate Maturity Value equal to the Maturity Value less the portion so paid, of the Promissory Note so surrendered, will be issued to
        and registered in the name of the transferee or transferees. The Company may treat the person in whose name this Promissory Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes.

        1.1 Payments and Endorsements. Payment of principal and accrued Original Issue Discount on the Zero Coupon Notes shall be made directly by check duly mailed or delivered to the Payee at
        his/her/its Principal Address referred above, without any presentment or notation of payment.

        2.1. Conversion of Stated Principal Amount. This Promissory Note is convertible into shares of the Common Stock of the Company at the Applicable Conversion Value, as determined in Paragraph
        3.2 herein per share.

        3.1 Adjustments for Stock Splits, Consolidations, etc. The number and class of shares into which this Promissory Note is convertible shall at all times be equal to the number of shares that the Holder would have held if the Holder had
        received the Conversion Shares at the Issue Date and had continuously held those shares to the date of conversion.

        1

         

        
            

        

         

        3.2 Adjustments for Dilutive Issues.

        (a) Applicable Conversion Rate. The number of shares of Common Stock issuable upon conversion of this Promissory Note shall be the quotient obtained by dividing the portion of the Issue Price of this Note that is being converted by the Applicable Conversion Value, calculated as provided in Paragraph 2.2(b)
        below.                             

        

        (b) Applicable Conversion Value. The Applicable Conversion Value in effect from time to time, except as adjusted in accordance with Paragraph 2.2(c) hereof, shall be $.125.

        (c) Upon Sale of Common Stock. If the Company issues shares of its Common Stock for no consideration or at a price per share less than the then existing Applicable Conversion Value then a new Applicable Conversion Value shall be calculated by multiplying the then existing Applicable Conversion Value by the following fraction:

        A+ (C/Vp)

        A + N

        A = the number of shares outstanding immediately prior to the issuance if all convertible securities, warrants, options and rights were converted or exercised.

        C = consideration

        Vp = previous or then existing applicable conversion value

        N = number of shares of common stock issued; or in the event of a convertible security, the number of shares that security is convertible into.

        Consideration means consideration received for issuance plus minimum consideration receivable upon exercise. If a portion of the consideration is other than cash, its value shall be fair market value as determined in good faith by the Board of Directors.

        

        The Company's issuance of shares of Common Stock or options to purchase Common Stock pursuant to any stock purchase, stock option, or incentive program approved by the Board of Directors, to the company's employees, directors, or officers, shall not result in any change to the Applicable Conversion Value.

        

        3.3 Reservation of Shares. The Company shall at all times during the period this Promissory Note is outstanding reserve and keep available such number of shares of Common Stock as will be sufficient to satisfy the requirements of this Promissory Note, shall pay all original issue and transfer taxes with respect to the issue and transfer of shares pursuant hereto and all
        other fees and expenses necessarily incurred by the Company in connection therewith, and will from time to time use its best efforts to comply with all laws and regulations, which, in the opinion of counsel for the Company, shall be applicable thereto.

        

        4.1 Method of Converting Promissory Notes. Subject to the terms and conditions of this Promissory Note, the Promissory Note may be converted by written notice to the Company, at its principal office in the State of Wisconsin, which presently is located at 6430
        Congress Drive, West Bend, Wisconsin 53095. Such notice shall state the election to convert the Promissory Note and the amount and the number of shares in respect of which it is being converted, and shall be signed by the person or persons so converting the Promissory Note. Such notice shall be accompanied by confirmation of cancellation of all or a portion of the Promissory Note. The Company shall deliver a certificate or certificates representing
        the shares subject to such conversion as soon as practicable after the notice shall be received. The certificate or certificates for the shares as to which the Promissory Note shall have been so converted shall be registered in the name of the person or persons so converting the Promissory Note, and shall be delivered, as provided above, to or upon the written order of the person or persons converting the Promissory Note. In the event the Promissory Note shall be exercised by any person
        or persons other than the Holder in accordance with the terms hereof, such notice shall be accompanied by appropriate proof of the right of such person or persons to convert the Promissory Note. All shares that shall be purchased upon the conversion of the Promissory Note as provided herein shall be fully paid and nonassessable. The holder of this Promissory Note shall not be entitled to the privileges of share ownership as to any shares of Common Stock not actually issued and delivered
        to it. The Holder hereby certifies that all shares of Common Stock in the Company purchased or to be purchased by it pursuant to the exercise of this Promissory Note are being, or are to be, acquired by it for investment, and not with a view to the distribution thereof. In addition, the person converting the Promissory Note shall execute and deliver to the Company, with the notice provided for above, a certificate substantially in the form attached hereto as Exhibit A.

        2

        
            

        

        5.1 Redemption of Notes.

        (a) Required Redemptions. Upon the earlier to occur of a merger or other change of control described in Section 4.02(a) or on the 12th day of December 2013, the
        Company shall pay, without premium, the Issue Price plus the accrued Original Issue Discount of the Zero Coupon Notes then outstanding.

        (b) Optional Redemption. In addition to the redemption of Notes required under subsection 5.1(a), in the event the Company closes a Qualified Public Offering the Company may, without premium, subject to the notice requirement of subsection
        5.1(c), redeem the outstanding Notes, in whole but not in part, in an amount equal to the Issue Price of, and all accrued Original Issue Discount on, the Zero Coupon Notes, to the extent such Notes remain outstanding.(c) Notice of Redemptions. Notice of optional redemptions pursuant to subsection 1.08(b) shall be given to all registered holders of
        the Notes at least thirty (30) days prior to the date of such redemption. The Company shall give all registered holders of the Notes at least ten (10) days prior written notice of the Company's intention to file a Registration Statement with the Securities and Exchange Commission for Any Public Offering.

        6.1 Registration, etc. The Company shall maintain at its principal office a register of the Notes and shall record the names and addresses of the holders of the Notes, which includes the address to which notices are to be sent and payments are to be made, and the particulars of
        all transfers, exchanges and replacements of Notes.

        

        7.1 Transfer and Exchange of Notes. The holder of any Note may surrender such Note at the principal office of the Company for transfer or exchange. The Company shall promptly make such exchange or transfer without expense to the holder (other than transfer taxes, if any) and shall issue in exchange therefore
        another Note for the same aggregate principal amount as the unpaid principal amount of the Note so surrendered.

        8.1 Replacement of Notes. Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of any Note and, if requested in the case of any such loss, theft or destruction, the Company will issue a new Note, of like tenor and amount and dated
        the date to which interest has been paid, in lieu of such lost, stolen, destroyed or mutilated Note.

        9.1 Subordination. The payment of the principal of each and all of the Notes shall be subordinated in right of payment, to the extent and in the manner hereinafter set forth, to the prior payment in full of all Senior Debt (as hereinafter defined) at any time
        outstanding.

        (a) No Payment on Notes Under Certain Conditions. In the event that:

        (i) any default occurs in the payment of the principal of or interest on any Senior Debt and during the continuance of such default until such payment has been made or such default has been cured or waived in writing by such holder of Senior Debt; or

        

        (ii) the maturity of any Senior Debt is accelerated by any holder thereof because of a default with respect thereto and until such acceleration has been rescinded or said Senior Debt has been paid; then and during the continuance of any of such events no payment of principal or interest on the Notes shall be made nor shall any property or assets be applied to the purchase or redemption of the Notes, whether voluntary or involuntary, by the Company or
        demanded or accepted by any holder of the Notes who has received notice from the Company or from a holder of Senior Debt of either of such events.

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        (b) Scope of Section. The provisions of this Section 9.1 are intended solely for the purpose of defining the relative rights of the holders of the Notes, on the one hand, and the holders of Senior Debt, on the other hand. Nothing contained in this Section 9.1 or elsewhere in this Agreement or the Notes is
        intended to or shall impair, as between the Company, its creditors, other than the holders of Senior Debt, and the holders of the Notes, the obligation of the Company, which is unconditional and absolute, to pay to the holders of the Notes the principal of the Notes, Original Issue Discount on the Zero Coupon Notes.,

        (c) Senior Debt Defined. The term "Senior Debt" shall mean all money borrowed from banks, including any extension or renewals thereof, whether outstanding on the date hereof or thereafter created or incurred, which is not
        by its terms subordinate and junior to or on parity with the Notes.

        10.1 Representations by the Purchasers.

        

        (a) Investment. Each Purchaser severally, and not jointly, represents that:

        (i) Such Purchaser has been advised that the Securities have not been registered under the Securities Act nor qualified under any state securities laws on the ground, among others, that no distribution or public offering of the Promissory Notes or the Conversion Shares is to be
        effected. It is Purchaser's intention to acquire the Securities for its own account for the purpose of investment and not with a view to distribution or resale thereof.

        

        (ii) The Purchaser acknowledges that the Notes and the certificates representing the Conversion Shares, when issued, shall contain the following legends:

        THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933; THEY HAVE BEEN ACQUIRED BY THE HOLDER FOR INVESTMENT AND MAY NOT BE PLEDGED, HYPOTHECATED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT AS MAY BE AUTHORIZED UNDER THE SECURITIES ACT OF 1933 AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER;

        

        (b) Authorization. Each Purchaser, severally, but not jointly, further represents that:

        

        (i) It has duly authorized, executed and delivered this Promissory Note and any other agreements and instruments executed in connection herewith.

        

        (ii) This Promissory Note and such other agreements and instruments constitute the valid and binding obligations of such Purchaser, enforceable against it in accordance with their respective terms.

        11. COVENANTS OF THE COMPANY AND PURCHASERS

        11.1 Affirmative Covenants of the Company Other Than Reporting Requirements. The Company covenants and agrees that, so long as any of the Notes are outstanding it will perform and observe the following covenants and provisions and will cause each Subsidiary to perform and
        observe the following covenants and provisions:

        

        (a) Punctual Payment. Redeem the Notes at the times and place and in the manner provided in the terms of the Notes, respectively; and pay the principal of, premium, if any, and interest on each of the Notes at the times and place and in the manner provided in the Notes and herein.

        11.2 Negative Covenants of the Company. The Company covenants and agrees that, until the Notes have been paid in full or converted, it will not take the actions contained in the following covenants and provisions, and will not permit any Subsidiary to take the actions contained
        in the following covenants and provisions:

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        (a) Mergers, Sale of Assets. Merge or consolidate with, or sell, assign, lease or otherwise dispose of or voluntarily part with the control of (whether in one transaction or in a series of transactions), all or substantially all of its property and assets to any Person, except for sales or other dispositions of assets in the ordinary course of business and except that the Company may merge any Person into it or otherwise acquire such Person so long as the holders of voting stock of the
        Company immediately prior to such merger are the holders of more than 50% of the voting stock of the resulting company immediately following such merger, such merger or acquisition does not result in the violation of any of the provisions of this Promissory Note, no such violation exists at the time of such merger or acquisition and the corporate structure does not change in a manner to substantially change the
        rights of Purchasers. If the Company elects to enter a transaction otherwise prohibited by this Section 11.2(a) it shall first give Purchasers thirty days prior written notice. In the event of a breach of the provisions of this subsection 11.2(a), Purchasers may resort to the remedies provided in Article
        __ of this Promissory Note.

        

        (b) Dealings with Affiliates and Others. Other than stock transactions, enter into any transaction with any officer, director or stockholder of the Company, or any member of their respective immediate families, or any corporation or other entity directly or indirectly controlled by one or more of such Persons, except in amounts less than $100,000 in any year in a single transaction or
        a series of similar transactions, unless such transaction is approved in advance by a majority of disinterested members of the Board of Directors.

        

        (c) Dividends. (i) Purchase any class of the Company's or any Subsidiary's capital stock above the appraised fair market value per share of such stock, (ii) purchase any such stock in violation of any existing shareholders or stockholders agreement, if applicable, (iii) pay any dividends on any capital stock if there is a default on the payment of the principal or interest on the Notes, or (iv) if the payment of the dividends or purchase of such stock would impair the capital of the
        Company.

        (d) Agreements with Employees for the Purchase of Securities. The Company shall not issue securities to employees, officers, directors or other parties at a price less than the fair market value of such securities, nor shall it grant options to purchase its securities at a price less than the then fair market value.

        11.3 Reporting Requirements. The Company will furnish the following to each holder who owns of record or beneficially or has the right to acquire from the Company any Conversion Shares, and to each holder
        of the Notes:

        

        (a) within five (5) days after the occurrence of each Event of Default or each event that, with the giving of notice or lapse of
time or both, would or could reasonably constitute an Event of Default, the statement of the chief executive officer of the
 Company setting forth details of such Event of Default or event and the action the Company proposes to take with respect thereto;

        

        (b) as soon as available, and in any event within ninety (90) days after the end of each fiscal year of the Company, a copy of the annual audit report for such year for the Company, including therein Consolidated, balance sheets of the Company as of the end of such fiscal year and Consolidated statements of income and retained earnings and of statements of cash flow of the
        Company, all duly certified by a nationally recognized independent public accounting firm chosen by the Board of Directors;

        11.4 Confidentiality. Any confidential information obtained by any holder of the Promissory Notes or Conversion Shares pursuant to this Agreement shall be treated as confidential and shall not be
        disclosed to a third party without the consent of the Board of Directors, except that such information shall not be deemed confidential for the purpose of enforcement of this Promissory Note.

        12. EVENTS OF DEFAULT

        Events of Default. If any of the following events ("Events of Default") shall occur and be continuing:

        

        (a) The Company shall fail to pay any installment of principal of any of the Notes when due; or

        (b) Any representation or warranty made by the Company or any Subsidiary in this Promissory Note or by the Company or any Subsidiary (or any officers of the Company or any Subsidiary) in any certificate, instrument
        or written statement contemplated by or made or delivered pursuant to or in connection with this Promissory Note, shall prove to have been materially incorrect; or

        (c) The Company shall fail to perform or observe any material term, covenant or agreement contained in this Promissory Note on its part to be performed or observed, and any such failure remains unremedied for
        thirty (30) days after written notice thereof has been given to the Company by any holder of the Notes or Conversion Shares; or

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        (d) The Company shall fail to pay any Indebtedness for borrowed money (other than as evidenced by the Promissory Notes) owing by the Company aggregating $100,000 or more, or any interest or premium thereon, when
        due (or, if permitted by the terms of the relevant document, within any applicable grace period); or

        

        (e) The Company shall be involved in financial difficulties as evidenced (i) by its admitting in writing its inability to pay its debts generally as they become due; (ii) by its commencement of a voluntary or involuntary case being filed against it under Title 11 of the United States Code as from time to time in effect, or under any applicable insolvency laws, or by its authorizing, by appropriate proceedings of
        its Board of Directors or other governing body, the commencement of such a voluntary case; or (iii) by its making an assignment for the benefit of its creditors, or appointing or consenting to the appointment of a receiver; or

        

        (f) Any judgment, writ, warrant of attachment or execution or similar process shall be issued or levied against the property of the Company and such judgment, writ, or similar process shall not be released, vacated or fully bonded within sixty (60) days after its issue or levy; or

        (g) The Company shall merge or consolidate with, or sell, assign, lease or otherwise dispose of or voluntarily part with the control of (whether in one transaction or in a series of transactions), all or substantially all of its property and assets (whether now owned or hereinafter
        acquired) to any Person, or permit any Subsidiary to do any of the foregoing; then, and in any such event, the Purchasers may, by notice to the Company, declare the entire unpaid Issue Price, plus all accrued Original Issue Discount, and all other amounts payable under this Promissory Note, to be forthwith due and payable, whereupon the Notes, all such accrued Original Issue
        Discount and interest and all such amounts shall become and be forthwith due and payable without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Company.

        13. DEFINITIONS AND ACCOUNTING TERMS

        13.1 Certain Defined Terms. As used in this Promissory Note, the following terms shall have the following meanings:

        

        "Any Public Offering" means and includes the closing of an underwritten public offering pursuant to an effective registration statement under the Securities Act covering the offer and sale of Common Stock for the account of the Company.

        

        "Board of Directors" shall mean the then present members of the Board of Directors of the Company.

        

        "Common Stock" includes (a) the Company's $.001 par value, and the Company's Preferred Stock, $.05 par value, as authorized on the date of this Agreement, (b) any other capital stock of any class or classes (however designated) of the Company, authorized on or after the date hereof, the holders of which shall have the right, without
        limitation as to amount, either to all or to a share of the balance of current dividends and liquidating dividends after the payment of dividends and distributions on any shares entitled to preference, and the holders of which shall ordinarily, in the absence of contingencies, be entitled to vote for the election of directors of the Company, and (c) any other securities into which or for which any of the securities described in (a) or (b) may be converted or exchanged pursuant to a plan
        of recapitalization, reorganization, merger, sale of assets or otherwise.

        

        "Consolidated" when used with reference to any term defined herein shall mean that term as applied to the accounts of the Company and its Subsidiaries consolidated in accordance with generally accepted accounting principles after eliminating intercompany items and minority interests.

        

        

        "Debt Securities" means and includes (i) any debt security of the Company that by its terms is convertible into or exchangeable for any equity security of the Company that is a combination of debt and equity, or (ii) any option, warrant or other right to subscribe for, purchase or otherwise acquire any such debt security of the Company.

        6

         

        
            

        

        

        "Exchange Act" means the Securities Exchange Act of 1934, or any similar federal statute, and the rules and regulations of the Securities and Exchange Commission (or of any other Federal Agency then administering the Exchange Act) thereunder, all as the same shall be in effect at the time.

        

        "Indebtedness" means all obligations, contingent and otherwise, which should, in accordance with generally accepted accounting principles consistently applied, be classified upon the obligor's balance sheet as liabilities, excluding any liabilities in respect of deferred federal or state income taxes.

        

        "Issue Price" means the original purchase price of the Zero Coupon Notes as set forth on the first page of this Promissory Note.

        

        "Maturity Value" means the amount payable on the Zero Coupon Notes on the stated date due, as set forth on the first page of this Promissory Note.

        

        "Original Issue Discount" shall mean herein and for federal income tax purposes the difference between the Issue Price and the Maturity Value.

        

        "Person" means an individual, corporation, partnership, joint venture, trust, or unincorporated organization, or. a government or any agency or political subdivision thereof.

        

        "Securities Act" means the Securities Act of 1933, as amended, or any similar Federal statute, and the rules and regulations of the Securities and Exchange Commission (or of any other Federal agency then administering The Securities Act) thereunder, all as the same shall be in effect at the time.

        

        "Subsidiary" or "Subsidiaries" any corporation, 50% or more of the outstanding voting stock of which shall at the time be owned by the Company or by one or more Subsidiaries, or any other entity or enterprise, 50% or more of the equity of which shall at the time be owned by the Company or by one or more Subsidiaries.

        

        "Wholly-Owned Subsidiary" or "Wholly-Owned Subsidiaries" means any corporation, 100% of the outstanding voting stock of which shall at the time be owned by the Company or by one or more Wholly-Owned Subsidiaries, or any other entity or enterprise, 100% of the equity of which shall at the time be owned by the Company or by one or more Wholly-Owned Subsidiaries.

        

        "Zero Coupon Notes" means the Company’s $1,500,000 Maturity Value Zero Coupon Convertible Subordinated Promissory Notes with the Maturity Value payable on November __, 2013.

        

        13.2 Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with generally accepted accounting principles, and all other financial data submitted pursuant to this Agreement shall be prepared and calculated in accordance with such principles.

        14. MISCELLANEOUS

        14.1 No Waiver; Cumulative Remedies. No failure or delay on the part of any Purchaser, or any other holder of the Notes, in exercising any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power or
        remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. The remedies herein provided are cumulative.

        14.2 Amendments, Waivers and Consents. Except as expressly provided herein, no changes in or additions to this Promissory Note may be made, nor compliance with any covenant or provision herein or therein
        set forth may be omitted or waived, unless the Company shall obtain consent thereto in writing from the party against whom enforcement of any such amendment, waiver or discharge is sought. Any waiver or consent may be given subject to satisfaction of conditions stated therein and any waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

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        14.3 Addresses for Notices, etc. All notices, requests, demands and other communications provided for hereunder shall be in writing (including telegraphic or facsimile communication) and mailed, by certified or registered mail, or
        telegraphed, sent by facsimile or delivered to the Company at the addresses indicated on the signature page hereto.

        

        If to the Purchaser: at the address or facsimile number set forth under their respective names on Exhibit 1.01A hereto, with a copy to Law Offices of William B. Barnett, 21550 Oxnard Street, Suite 200, Woodland Hills, California 91367, Attention: William B. Barnett, Esq., Facsimile:
        (818) 999-2269.

        

        If to any other holder of the Securities: at such holder's address for notice as set forth in the register maintained by the Company, or, as to each of the foregoing, at such other address as shall be designated by such Person in a written notice to the other party complying as to delivery with the terms of this Section. All such notices, requests, demands and other communications shall, when mailed or telegraphed, respectively, be effective when deposited in the mails or delivered to
        the telegraph company, respectively, addressed as aforesaid.

        14.4 Costs, Expenses and Taxes. The parties shall pay their own expenses, fees and costs incurred in connection with the investigation, preparation, execution and delivery of this Promissory Note and the
        transactions contemplated hereby. In the event of any controversy, claim or dispute among the parties hereto arising out of or relating to this Promissory Note, or breach hereof, the prevailing party shall be entitled to recover from the losing party reasonable attorneys' fees, expenses and costs.

        14.5 Binding Effect: Assignment. This Promissory Note shall be binding upon and inure to the benefit of the Company and the Purchasers and their respective successors and assigns.

        14.6 Survival of Representations and Warranties. All representations and warranties made herein shall survive the execution and delivery hereof.

        14.7 Severability. The invalidity or unenforceability of any provision hereto shall in no way affect the validity or enforceability of any other provision.

        14.8 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Wisconsin.

        14.9 Further Assurances. From and after the date of this Promissory Note, upon the request of the Purchasers, the Company and each Subsidiary shall execute and deliver such instruments, documents and
        other writings as may be necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes of this Promissory Note.

        The Company and all endorsers and guarantors of this Promissory Note hereby waive presentment, demand, notice of nonpayment, protest, and all other demands and notices in connection with the delivery, acceptance, performance or enforcement of this Promissory Note.

         MACH ONE CORPORATION

        

		
		

By: /s/ Monte B. Tobin 

    Monte B. Tobin, President & Secretary 

        

             [Corporate
Seal] 

         

        8

        
            

        

         

        EXHIBIT A

        TO PROMISSORY NOTE

        CERTIFICATE

        _______________, 20__

        I hereby certify that all of the shares of Common Stock, $..001 par value, of MACH ONE CORPORATION, purchased by the undersigned pursuant to the conversion on this date of the Zero Coupon Convertible
        Subordinated Promissory Note payable by MACH ONE CORPORATION, dated the 12th day of December, 2008, are being acquired by the undersigned for
        investment and not with a view to the distribution thereof.

        

        By: ____________________________

        

        

         

         

         

         

        9

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