Document:

Unassociated Document

     

    Exhibit
      10.1

     

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

     

    2%
      SECURED CONVERTIBLE PROMISSORY NOTE

     

    
      	
              $80,000.00

            	
              Ridgefield,
                Connecticut

            
	
              December
                21, 2006

            	 

    

    

    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 eighty thousand dollars ($80,000) in one installment due on
      December 31, 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. 

     

    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 equal to eighty percent (80%) of the average of the five lowest closing
      bid
      prices for the ten (10) trading days immediately preceding the Conversion Date.
      The “Conversion Date” shall be defined as the date in which the Issuer receives
      written notice by Holder of its election to convert all or a portion of the
      Note
      pursuant to this Section 1.

     

    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.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    3. Prepayment The
      Maker
      shall have the right to redeem this Note at any time by providing written notice
      to the Payee by making a cash payment to the Payee of the outstanding principal
      amount of the Note multiplied by 120%, plus all accrued interest: Written notice
      to the Payee shall be received at least 5 business days prior to the date of
      redemption payment (“Redemption Date”). If the redemption payment is not made on
      or before the Redemption Date, the redemption notice shall be rendered null
      and
      void and the Payee thereafter shall have the right to convert any portion of
      the
      outstanding principal of the Note.

     

    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 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.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

     

    (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”:

    

    
      	 	
              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

            

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    

    
      	 	
              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;
                

            

    

    

    Upon
      the
      occurrence of an Event of Default, 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 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. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

     

    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.

     

    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. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

     

    IN
      WITNESS WHEREOF, the Maker, by its appropriate officers thereunto duly
      authorized, has executed this Note as of this 30th day of November,
      2006.

     

    
      	 	
              Global
                Matrechs, Inc. 

            
	 	 	 
	 	 	 
	 	
              By:

            	/s/
              Michael Sheppard
	 	 	
              Name:
                Michael Sheppard

            
	 	 	
              Title:
                President

            
	 	 	 
	 	 	
              Address:
                90 Grove Street, Suite 201

            
	 	
               

            	
               Ridgefield,
                Ct 06877

            

    

    

     

    

    
      
        
        

      

      
        6Unassociated Document

     

    Exhibit
      10.2

    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.

     

    2%
      SECURED CONVERTIBLE PROMISSORY NOTE

     

    
      	
              $30,000

            	
              Ridgefield,
                Connecticut

            
	
              January
                10, 2007

            	 

    

    

    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 thirty thousand dollars ($30,000) in one installment due on
      December 31, 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
      365-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. 

     

    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 equal to eighty percent (80%) of the average of the seven lowest closing
      bid
      prices for the ten (10) trading days immediately preceding the Conversion Date.
      The “Conversion Date” shall be defined as the date in which the Issuer receives
      written notice by Holder of its election to convert all or a portion of the
      Note
      pursuant to this Section 1.

     

    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.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    3. Prepayment The
      Maker
      shall have the right to redeem this Note at any time by providing written notice
      to the Payee by making a cash payment to the Payee of the outstanding principal
      amount of the Note multiplied by 120%, plus all accrued interest: Written notice
      to the Payee shall be received at least 5 business days prior to the date of
      redemption payment (“Redemption Date”). If the redemption payment is not made on
      or before the Redemption Date, the redemption notice shall be rendered null
      and
      void and the Payee thereafter shall have the right to convert any portion of
      the
      outstanding principal of the Note.

     

    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 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.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

     

    (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”:

    

    
      	 	
              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

            

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    
      	 	
              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,
                2005, 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;
                

            

    

    

    Upon
      the
      occurrence of an Event of Default, 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 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. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

     

    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.

     

    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. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

     

    IN
      WITNESS WHEREOF, the Maker, by its appropriate officers thereunto duly
      authorized, has executed this Note as of this 10th day of January
      2007.

     

    
      	 	
              Global
                Matrechs, Inc. 

            
	 	 	 
	 	 	 
	 	
              By:

            	/s/
              Michael Sheppard
	 	 	
              Name:
                Michael Sheppard

            
	 	 	
              Title:
                President

            
	 	 	 
	 	 	
              Address:
                90 Grove Street, Suite 201

            
	 	 	
               Ridgefield,
                CT 06877

            

    

    

     

    

    
      
        
        

      

      
        6

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