Document:

EXHIBIT 4.2
                                                                     -----------

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

              NONNEGOTIABLE 2% SECURED CONVERTIBLE PROMISSORY NOTE
              ----------------------------------------------------

$125,000                                                 Ridgefield, Connecticut
May 12, 2005

     FOR VALUE RECEIVED, the undersigned, Global Matrechs, Inc., a Delaware
corporation (the "Maker"), hereby promises to pay to Southridge Partners LP (the
"Payee") the principal sum of one hundred twenty five thousand dollars
($125,000) in one installment due on May 12, 2007 (the "Maturity Date") together
with interest from and after the date hereof at the rate of two percent (2%) per
annum computed on the unpaid principal balance on the basis of a 360-day year.
All payments made hereunder shall be made in immediately available funds. By
acceptance of this Note, the Payee represents, warrants, covenants and agrees
that it will abide by and be bound by its terms. Capitalized terms not otherwise
defined herein shall have the meaning set forth in that certain Securities
Purchase Agreement dated January 31, 2005 by and between the Maker and the
Payee.

     1.       Conversion. The Payee shall have the option at any time to convert
all or a portion of the outstanding principal and interest on this Note into a
number of shares of common stock, $0.001 par value per share (the "Common
Stock") equal to a fraction, the numerator of which shall be the amount of
principal and interest being so converted and the denominator of which shall be
equal to the Conversion Price (the "Conversion Shares"). The "Conversion Price"
shall be $0.02.

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

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

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

              (a)       Manner of Adjustment.

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

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

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

                                       2
<PAGE>

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

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

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

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

     5.       Miscellaneous.

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

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

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

                                       3
<PAGE>

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

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

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

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

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

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

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

                                       4
<PAGE>

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

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

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

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

     10.      Notices.

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

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

                                       5
<PAGE>

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

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

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

     IN WITNESS WHEREOF, the Maker, by its appropriate officers thereunto duly
authorized, has executed this Note as of this 12th day of May, 2005.

                                       GLOBAL MATRECHS, INC.

                                       By:      /s/ Michael Sheppard
                                           ----------------------------------
                                       Name:        Michael Sheppard
                                             --------------------------------
                                       Title:       President
                                              -------------------------------

                                       Address: 90 Grove Street, Suite 201
                                               ------------------------------
                                                Ridgefield, Connecticut 06877
                                               ------------------------------

                                       6EXHIBIT 10.1
                                                                    ------------

                          SECURITIES PURCHASE AGREEMENT

     THIS SECURITIES PURCHASE AGREEMENT (the "Agreement") is made this 12th day
of May, 2005, by and between Global Matrechs, Inc. (the "Company"), a Delaware
corporation, and Southridge Partners LP (the "Purchaser").

     WHEREAS, the Purchaser purchased from the Company, a nonnegotiable 2%
secured convertible promissory note in the amount of $250,000 (the "First Note")
and a warrant (the "Warrant") on or about October 19th, 2004, with an option to
purchase an additional promissory note and warrant of the Company on the same
terms and conditions; Purchaser purchased from the Company, a second
nonnegotiable 2% secured convertible promissory note in the amount of $250,000
(the "Second Note") and a warrant (the "Warrant") on or about January 31st, 2005
on the same terms and conditions; Purchaser purchased from the Company, a third
nonnegotiable 2% secured convertible promissory note in the amount of $175,000
(the "Third Note") and a warrant (the "Warrant") on or about March 1, 2005 on
the same terms and conditions, a forth nonnegotiable 2% secured convertible
promissory note in the amount of $125,000 (the "Fourth Note") and a warrant (the
"Warrant") on or about April 12, 2005 on the same terms and conditions

     WHEREAS, the Purchaser wishes to exercise its option to purchase from the
Company, and the Company wishes to sell to the Purchaser, a Fifth Note in the
principal amount of $125,000 substantially in the form of Exhibit A attached
hereto, and a warrant (the "Warrant") to purchase shares of common stock, par
value $0.0001 per share (the "Common Stock"), of the Company, substantially in
the form of Exhibit B attached hereto (the "Warrant Shares"), and to amend the
option to purchase a Additional Principal Amount and warrant from the Company as
follows.

     NOW, THEREFORE, in consideration of the mutual covenants contained in this
Agreement, the parties agree as follows:

     SECTION 1 Sale of Securities.

     1.1.     Authorization of Sale of the Securities. Subject to the terms and
conditions of this Agreement, the Company has authorized the sale and issuance
to the Purchaser of the Notes and Warrant (the "Securities").

     1.2.     Agreement to Sell and Purchase the Securities. At the Closing, the
Company will issue and sell to the Purchaser and the Purchaser will buy from the
Company the Securities upon the terms and conditions hereinafter set forth.
Subject to and in reliance upon all of the representations, warranties,
covenants, terms and conditions of this Agreement, any such closing hereunder
shall take place at the offices of Foley Hoag LLP, 155 Seaport Boulevard,
Boston, Massachusetts, 02210 at 10:00 a.m., local time, on the dates set forth
below, or at such other location, date and time as many be agreed upon between
the Purchaser and the Company.

     1.3.     Closing. At the closing of the sale and purchase of the Fifth Note
(the "Fifth Closing"), the Company shall issue and sell, and the Purchaser shall
purchase, the Fifth Note, which shall be in principal amount of $125,000 (the
"Fifth Principal Amount") and the Warrant
<PAGE>

to purchase 5,000,000 shares of Common Stock, against payment by the Purchaser
of the Fifth Principal Amount.

     1.4.     Optional Closing. If, at any time prior to July 1, 2005, the
Purchaser shall deliver notice to the Company of its election to purchase an
Additional Note, then there shall be an additional closing (the "Optional
Closing"), at which Optional Closing the Company shall issue and sell, and the
Purchaser shall purchase, an Additional Note, which shall be in principal amount
of not more than $1,500,000 (the "Additional Principal Amount") and
substantially in the form of Exhibit A attached hereto, against payment by the
Purchaser of the Additional Principal Amount.

     SECTION 2. Grant of Security Interest. The Company hereby grants to the
Purchaser, to secure the payment of the Notes, a security interest in and so
pledges and assigns to the Purchaser a security interest in all of its right,
title and interest to the following:

     2.1.     presently existing and hereafter arising accounts, contract
rights, and all other forms of obligations owing to the Company arising out of
the sale or lease of goods or the rendition of services by the Company, whether
or not earned by performance, and any and all credit insurance, guaranties, and
other security therefor, as well as all merchandise returned to or reclaimed by
the Company and the Company's Books relating to any of the foregoing
(collectively, "Accounts");

     2.2.     present and future general intangibles and other personal property
(including choses or things in action, goodwill, patents, trade names,
trademarks, servicemarks, copyrights, blueprints, drawings, purchase orders,
customer lists, monies due or recoverable from pension funds, route lists,
monies due under any royalty or licensing agreements, infringement claims,
computer programs, computer discs, computer tapes, literature, reports, catalogs
deposit accounts, insurance premium rebates, tax refunds, and tax refund claims)
other than goods and Accounts, and the Company's Books relating to any of the
foregoing (collectively, "General Intangibles");

     2.3.     present and future letters of credit, notes, drafts, instruments,
certificated and uncertificated securities, documents, leases, and chattel
paper, and the Company's Books relating to any of the foregoing (collectively,
"Negotiable Collateral");

     2.4.     present and future inventory in which the Company has any
interest, including goods held for sale or lease or to be furnished under a
contract of service and all of the Company's present and future raw materials,
work in process, finished goods, and packing and shipping materials, wherever
located, and any documents of title representing any of the above, and the
Company's Books relating to any of the foregoing (collectively, "Inventory");

     2.5.     books and records including: ledgers; records indicating,
summarizing, or evidencing the Company's assets or liabilities, or the
collateral; all information relating to the Company's business operations or
financial condition; and all computer programs, disc or tape files, printouts,
funds or other computer prepared information, and the equipment containing such
information (collectively, "Company's Books");

                                      -2-
<PAGE>

     2.6.     substitutions, replacements, additions, accessions, proceeds,
products to or of any of the foregoing, including, but not limited to, proceeds
of insurance covering any of the foregoing, or any portion thereof, and any and
all Accounts, General Intangibles, Negotiables, Collateral, Inventory, money,
deposits, accounts, or other tangible or intangible property resulting from the
sale or other disposition of the accounts, General Intangibles, Negotiable
Collateral, Inventory or any portion thereof or interest therein and the
proceeds thereof.

     SECTION 3. Registration Rights.

     3.1.     Request for Registration. If the Company proposes to register any
of its securities under the Securities Act of 1933, as amended ("Act") (except
for registrations on Forms S-8 or S-4 or their equivalent), it will give written
notice by registered mail, at least twenty (20) days prior to the filing of each
such registration statement, to the Purchaser of its intention to do so. If the
Purchaser notifies the Company within ten (10) days after receipt of any such
notice of its desire to include any of the Warrant Shares or Conversion Shares
(together, the "Underlying Shares"), the Company shall afford the Purchaser the
opportunity to have any such Underlying Shares registered under such
registration statement at the Company's sole cost and expense; provided,
however, that the Purchaser shall not have any registration rights with respect
to that certain registration on Form SB-2 to be filed with the Securities and
Exchange Commission with respect to the Private Equity Credit Agreement entered
into by the Company on January 31, 2005, or any amendments thereto.

     3.2.     Limitations on Registration.

              (a)       Termination of Registration Rights. These rights may be
exercised at any time on an unlimited number of occasions after the date hereof
until such time when all Underlying Shares may be sold without volume
restrictions pursuant to Rule 144(k) as determined by the counsel to the Company
pursuant to a written opinion letter to such effect, addressed and acceptable to
the Company's transfer agent and the Purchaser.

              (b)       Underwritten Offerings. In connection with any offering
involving an underwriting of shares being issued by the Company, the Company
shall not be required to include any Underlying Shares in such underwriting
unless such Purchaser accepts the terms of the underwriting as agreed upon
between the Company and the underwriters selected by it, and then only in such
quantity as will not, in the reasonable opinion of the underwriters, jeopardize
the success of the offering by the Company. If the underwriters reasonably
believe the total amount of Underlying Shares which the Purchaser requests to be
included in an underwritten offering pursuant to this Section 3, together with
any other shares of Common Stock for which registration has been requested by
holders with similar rights, exceeds the amount of securities that the
underwriters reasonably believe compatible with the success of the offering, the
Company shall only be required to include in the offering so many of the
Underlying Shares and such other shares of Common Stock as the underwriters
reasonably believe will not jeopardize the success of the offering, such shares
so included to be apportioned pro rata among the Purchaser and other holders
based on the number of shares for which registration was initially requested.

                                      -3-
<PAGE>

     SECTION 4. Expenses. Each party hereto will pay its own expenses in
connection with the transactions contemplated hereby, whether or not such
transactions shall be consummated.

     SECTION 5. Notices. All notices, requests, consents, and other
communications under this Agreement shall be in writing and shall be delivered
by hand, sent via overnight courier, sent by facsimile, or mailed by first class
certified or registered mail, return receipt requested, postage prepaid:

                  if to the Company, to:

                           Global Matrechs, Inc.
                           90 Grove Street, Suite 201
                           Ridgefield, Connecticut 06877
                           Attn:  Michael Sheppard
                           Facsimile: (203)431-6665

                  with a copy to:

                           Foley Hoag LLP
                           155 Seaport Boulevard
                           Boston, MA  022110
                           Attn:  David A. Broadwin, Esq.
                           Facsimile: (617) 832-7000

                  if to the Purchaser, to:

                           Southridge Partners LP

                           c/o Krieger & Prager LLP
                           39 Broadway, Suite 1440
                           New York, NY  10006
                           Attention:  Samuel Krieger
                           Facsimile:  212-363-2999

     SECTION 6. Severability. In case any provision contained in this Agreement
should be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein shall
not in any way be affected or impaired thereby.

     SECTION 7. Governing Law. This Agreement shall be governed by and
interpreted in accordance with the laws of the State of New York for contracts
to be wholly performed in such state and without giving effect to the principles
thereof regarding the conflict of laws. Each of the parties consents to the
exclusive jurisdiction of the federal courts whose districts encompass any part
of the County of New York or the state courts of the State of New York sitting
in the County of New York in connection with any dispute arising under this
Agreement or any of the other Transaction Agreements and hereby waives, to the
maximum extent permitted by law, any objection, including any objection based on
FORUM NON CONVENIENS, to the bringing of any such proceeding in such
jurisdictions. Each of the parties hereto expressly waives its right to a trial
by jury with respect to any adjudication arising between the parties pursuant to
this Agreement.

                                      -4-
<PAGE>

     SECTION 8. Entire Agreement. This Agreement contains the entire agreement
of the parties with respect to the subject matter hereof and supersedes and is
in full substitution for any and all prior oral or written agreements and
understandings between them related to such subject matter, and neither party
hereto shall be liable or bound to the other party hereto in any manner with
respect to such subject matter by any representations, indemnities, covenants or
agreements except as specifically set forth herein.

                  [Remainder of page intentionally left blank.]

                                      -5-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Securities
Purchase Agreement to be executed as of the date first above written by their
duly authorized representatives shown below:

                                       GLOBAL MATRECHS, INC.

                                       By:      /s/ Michael Sheppard
                                           -------------------------------
                                       Name: Michael Sheppard

                                       Title:   President

                                       SOUTHRIDGE PARTNERS LP

                                       By: Southridge Capital Management LLC

                                       Its: General Partner

                                       By: /s/ Stephen M. Hicks
                                           -------------------------------
                                       Title: General Partner and President

                                      -6-

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