Document:

Unassociated Document

    Void
      after 5:00 p.m., New York Time on June 30, 2008

    Warrant
      to Purchase 475,000 Shares of Common Stock

     

    

    WARRANT
      TO PURCHASE COMMON STOCK

     

    OF

     

    GLOBAL
      IT HOLDINGS, INC.

     

    

    

    THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE PURSUANT TO THIS WARRANT HAVE
      NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND ARE BEING ISSUED PURSUANT TO RULE 504 OF REGULATION D
      PROMULGATED UNDER THE SECURITIES ACT.

     

    FOR
      VALUE RECEIVED, Global
      IT
      Holdings, Inc., a corporation organized under the laws of Nevada (the
“Company”), grants the following rights to Highgate House, LLC, a Minnesota
      limited liability company and/or its assigns (the “Holder”):

     

    

     

    ARTICLE 1.
      DEFINITIONS

     

    Capitalized
      terms used and not otherwise defined herein shall have the meanings given such
      terms in the Convertible Debenture Purchase Agreement by and between the Company
      and the Holder and entered into on June 30, 2005 (the “Purchase Agreement”). As
      used in this Agreement, the following terms shall have the following
      meanings:

     

    “Corporate
      Office” shall mean the office of the Company (or its successor) at which at any
      particular time its principal business shall be administered.

     

    “Exercise
      Date” shall mean any date on which the Holder gives the Company a Notice of
      Exercise in compliance with the terms of Exhibit E to the Purchase
      Agreement.

     

    “Exercise
      Price” shall mean the Fixed Price per share of Common Stock, subject to
      adjustment as provided herein.

     

    “Expiration
      Date” shall mean 5:00 p.m. (New York time) on June 29, 2008.

     

    “Fair
      Market Value” shall have the meaning set forth in Section 2.2(b).

    

    “Fixed
      Price” shall mean US$0.001.

    

    “Market
      Value” shall have the meaning set forth in Section 2.2(b).

    

    “SEC”
      shall mean the United States Securities and Exchange Commission.

     

    “Warrant
      Shares” shall mean the shares of the Common Stock issuable upon exercise of this
      Warrant.

     

    
      
        
        

      

      
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    ARTICLE 2.
      EXERCISE AND AGREEMENTS

     

    2.1 Exercise
      of Warrant; Sale of Warrant and Warrant Shares.
      (a)
      This Warrant shall entitle the Holder to purchase, at the Exercise Price,
      475,000 shares of Common Stock. This Warrant shall be exercisable at any time
      and from time to time from the date hereof and prior to the Expiration Date
      (the
“Exercise Period”). This Warrant and the right to purchase Warrant Shares
      hereunder shall expire and become void on the Expiration Date. 

    

    2.2 Manner
      of Exercise.

     

    (a) The
      Holder may exercise this Warrant at any time and from time to time during the
      Exercise Period, in whole or in part (but not in denominations of fewer than
      10,000 Warrant Shares, except upon an exercise of this Warrant with respect
      to
      the remaining balance of Warrant Shares purchasable hereunder at the time of
      exercise), by delivering to the Escrow Agent pursuant to the Escrow Agreement
      incorporated herein by reference (i) a duly executed Notice of Exercise in
      substantially the form attached as Appendix I hereto, (ii) the
      certificate representing the Warrants, (iii) a bank cashier’s or certified
      check for the aggregate Exercise Price of the Warrant Shares being purchased,
      and (iv) a bank cashier’s or certified check or wire transfer of $400 to
      the Escrow Agent for the exercise fee pursuant to the Escrow
      Agreement.

     

    (b) The
      Holder may, at its option, in lieu of paying cash for the Warrant Shares,
      exercise this Warrant by an exchange, in whole or in part (a “Warrant
      Exchange”), by delivery to the Escrow Agent of (i) a duly executed Notice of
      Exercise electing a Warrant Exchange, (ii) the certificate representing this
      Warrant, and (iii) a bank cashier’s or certified check or wire transfer for $400
      to the Escrow Agent as and for the exercise fee pursuant to the Escrow
      Agreement. In connection with any Warrant Exchange, the Holder shall be deemed
      to have paid for the Warrant Shares an amount equal to the Fair Market Value
      of
      each Warrant delivered, and the Warrants shall be deemed exercised for the
      amount so paid. For this purpose, the Fair Market Value of each Warrant is
      the
      difference between the Market Value of a share of Common Stock and the Exercise
      Price on the Exercise Date. Market Value shall mean the average Per Share Market
      Value of a share of Common Stock during the ten (10) Trading Days ending on
      the
      Exercise Date. In no event shall the Holder be entitled to receive more than
      the
      total number of Warrant Shares granted hereunder.

    

    2.3 Termination.
      All
      rights of the Holder in this Warrant, to the extent they have not been
      exercised, shall terminate on the Expiration Date.

    

    2.4 No
      Rights Prior to Exercise.
      This
      Warrant shall not entitle the Holder to any voting or other rights as a
      stockholder of the Company.

    

    2.5 Fractional
      Shares.
      No
      fractional shares shall be issuable upon exercise of this Warrant, and the
      number of Warrant Shares to be issued shall be rounded up to the nearest whole
      number. If, upon exercise of this Warrant, the Holder hereof would be entitled
      to receive any fractional share, the Company shall issue to the Holder one
      additional share of Common Stock in lieu of such fractional share.

     

    
      
        
        

      

      
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    2.6 Escrow.
      The
      Company agrees to enter into the Escrow Agreement and to deposit with the Escrow
      Agent thereunder stock certificates registered in the name of the Holder,
      without any restrictions and freely tradable upon resale pursuant to Rule 504
      of
      Regulation D under the Securities Act, and each representing a number of shares
      of Common Stock (in denominations specified by the Purchaser) equal, in the
      aggregate, to the total number of Warrant Shares for which this Warrant is
      exercisable, assuming exercise of this Warrant in full on the date hereof.
      The
      Company shall deposit additional certificates for Warrant Shares upon request
      by
      the Escrow Agent pursuant to the Escrow Agreement.

    

    2.7 Adjustments
      to Exercise Price and Number of Securities.

    

    (a) Computation
      of Adjusted Exercise Price.
      In case
      the Company shall at any time after the date hereof and until this Warrant
      is
      fully exercised issue or sell any shares of Common Stock (other than the
      issuances or sales referred to in Section 2.7 (f) hereof), including shares
      held
      in the Company’s treasury and shares of Common Stock issued upon the exercise of
      any options, rights or warrants to subscribe for shares of Common Stock and
      shares of Common Stock issued upon the direct or indirect conversion or exchange
      of securities for shares of Common Stock (excluding shares of Common Stock
      issuable upon exercise of options, warrants or conversion rights granted as
      of
      the date hereof), for a consideration per share less than the Exercise Price
      on
      the date immediately prior to the issuance or sale of such shares, or without
      consideration, then forthwith upon such issuance or sale, the Exercise Price
      shall (until another such issuance or sale) be reduced to the price equal to
      the
      quotient derived by dividing (A) an amount equal to the sum of (X) the
      product of (a) the Exercise Price on the date immediately prior to the
      issuance or sale of such shares, multiplied by (b) the total number of
      shares of Common Stock outstanding immediately prior to such issuance or sale
      plus, (Y) the aggregate of the amount of all consideration, if any,
      received by the Company upon such issuance or sale, by (B) the total number
      of shares of Common Stock outstanding immediately after such issuance or sale;
      provided, however, that in no event shall the Exercise Price be adjusted
      pursuant to this computation to an amount in excess of the Exercise Price in
      effect immediately prior to such computation, except in the case of a
      combination of outstanding shares of Common Stock, as provided by Section 2.7
      (c) hereof.

     

    For
      the
      purposes of any computation to be made in accordance with this Section 2.7(a),
      the following provisions shall be applicable:

     

    (i) In
      case
      of the issuance or sale of shares of Common Stock for a consideration part
      or
      all of which shall be cash, the amount of cash consideration therefor shall
      be
      deemed to be the amount of cash received by the Company for such shares (or,
      if
      shares of Common Stock are offered by the Company for subscription, the
      subscription price, or if either of such securities shall be sold to
      underwriters or dealers for public offering without a subscription offering,
      the
      initial public offering price) before deducting therefrom any compensation
      paid
      or discount allowed in the sale, underwriting or purchase thereof by
      underwriters or dealers or others performing similar services, or any expenses
      incurred in connection therewith.

     

    
      
        
        

      

      
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    (ii) In
      case
      of the issuance or sale (otherwise than as a dividend or other distribution
      on
      any stock of the Company) of shares of Common Stock for a consideration part
      or
      all of which shall be other than cash, the amount of the consideration therefor
      other than cash shall be deemed to be the value of such consideration as
      determined in good faith by the Board of Directors of the Company.

     

    (iii) Shares
      of
      Common Stock issuable by way of dividend or other distribution on any stock
      of
      the Company shall be deemed to have been issued immediately after the opening
      of
      business on the day following the record date for the determination of
      stockholders entitled to receive such dividend or other distribution and shall
      be deemed to have been issued without consideration.

     

    (iv) The
      reclassification of securities of the Company other than shares of the Common
      Stock into securities including shares of Common Stock shall be deemed to
      involve the issuance of such shares of Common Stock for a consideration other
      than cash immediately prior to the close of business on the date fixed for the
      determination of security holders entitled to receive such shares, and the
      value
      of the consideration allocable to such shares of Common Stock shall be
      determined as provided in subsection (ii) of this
      Section 2.7(a).

     

    (v) The
      number of shares of Common Stock at any one time outstanding shall include
      the
      aggregate number of shares issued or issuable (subject to readjustment upon
      the
      actual issuance thereof) upon the exercise of options, rights, warrants and
      upon
      the conversion or exchange of convertible or exchangeable securities; provided,
      however, that shares issuable upon the exercise of the Warrants shall not be
      included in such calculation.

     

    (b) Options,
      Rights, Warrants and Convertible and Exchangeable Securities.
      In case
      the Company shall at any time after the date hereof and until this Warrant
      is
      fully exercised issue options, rights or warrants to subscribe for shares of
      Common Stock, or issue any securities convertible into or exchangeable for
      shares of Common Stock, for a consideration per share less than the Exercise
      Price immediately prior to the issuance of such options, rights or warrants
      (excluding shares of Common Stock issuable upon exercise of options, warrants
      or
      conversion rights granted as of the date hereof and shares of Common Stock
      issuable upon exercise of stock options at or above the closing market price
      per
      share of Common Stock under any stock option plan of the Company), or such
      convertible or exchangeable securities, or without consideration, the Exercise
      Price in effect immediately prior to the issuance of such options, rights or
      warrants, or such convertible or exchangeable securities, as the case may be,
      shall be reduced to a price determined by making a computation in accordance
      with the provision of Section 2.7(a) hereof, provided that:

     

    (i) The
      aggregate maximum number of shares of Common Stock, as the case may be, issuable
      under such options, rights or warrants shall be deemed to be issued and
      outstanding at the time such options, rights or warranties were issued, and
      for
      a consideration equal to the minimum purchase price per share provided for
      in
      such options, rights or warrants at the time of issuance, plus the consideration
      (determined in the same manner as consideration received on the issue or sale
      of
      shares in accordance with the terms of the Warrants), if any, received by the
      Company for such options, rights or warrants.

     

    
      
        
        

      

      
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    (ii) The
      aggregate maximum number of shares of Common Stock issuable upon conversion
      or
      exchange of any convertible or exchangeable securities shall be deemed to be
      issued and outstanding at the time of issuance of such securities, and for
      a
      consideration equal to the consideration (determined in the same manner as
      consideration received on the issue or sale of shares of Common Stock in
      accordance with the terms of the Warrants) received by the Company for such
      securities, plus the minimum consideration, if any, receivable by the Company
      upon the conversion or exchange thereof.

     

    (iii) If
      any
      change shall occur in the price per share provided for in any of the options,
      rights or warrants referred to in subsection (a) of this Section 2.7, or in
      the
      price per share at which the securities referred to in subsection (b) of this
      Section 2.7 are convertible or exchangeable, such options, rights or warrants
      or
      conversion or exchange rights, as the case may be, shall be deemed to have
      expired or terminated on the date when such price change became effective in
      respect of shares not theretofore issued pursuant to the exercise or conversion
      or exchange thereof, and the Company shall be deemed to have issued upon such
      date new options, rights or warrants or convertible or exchangeable securities
      at the new price in respect of the number of shares issuable upon the exercise
      of such options, rights or warrants or the conversion or exchange of such
      convertible or exchangeable securities.

     

    (iv) If
      any
      options, rights or warrants referred to in subsection (a) of this
      Section 2.7, or any convertible or exchangeable securities referred to in
      subsection (b) of this Section 2.7, expire or terminate without exercise or
      conversion, as the case may be, then the Exercise Price of the remaining
      outstanding Warrant shall be readjusted as if such options, rights or warrants
      or convertible or exchangeable securities, as the case may be, had never been
      issued.

     

    (c) Subdivision
      and Combination.
      In case
      the Company shall at any time subdivide or combine the outstanding shares of
      Common Stock, the Exercise Price shall forthwith be proportionately decreased
      in
      the case of subdivision or increased in the case of combination.

     

    (d) Adjustment
      in Number of Securities.
      Upon
      each adjustment of the Exercise Price pursuant to the provisions of this
      Section 2.7, the number of Warrant Shares issuable upon the exercise of
      each Warrant shall be adjusted to the nearest whole number by multiplying a
      number equal to the Exercise Price in effect immediately prior to such
      adjustment by the number of Warrant Shares issuable upon exercise of the
      Warrants immediately prior to such adjustment and dividing the product so
      obtained by the adjusted Exercise Price.

     

    
      
        
        

      

      
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    (e) Merger
      or Consolidation.
      In case
      of any consolidation of the Company with, or merger of the Company with, or
      merger of the Company into, another corporation (other than a consolidation
      or
      merger which does not result in any reclassification or change of the
      outstanding Common Stock), the corporation formed by such consolidation or
      merger shall execute and deliver to the Holder a supplemental warrant agreement
      providing that the Holder of each Warrant then outstanding or to be outstanding
      shall have the right thereafter (until the expiration of such Warrant) to
      receive, upon exercise of such Warrant, the kind and amount of shares of stock
      and other securities and property (except in the event the property is cash,
      then the Holder shall have the right to exercise the Warrant and receive cash
      in
      the same manner as other stockholders) receivable upon such consolidation or
      merger, by a holder of the number of shares of Common Stock of the Company
      for
      which such warrant might have been exercised immediately prior to such
      consolidation, merger, sale or transfer. Such supplemental warrant agreement
      shall provide for adjustments which shall be identical to the adjustments
      provided in Section 2.7. The foregoing provisions of this paragraph (e) shall
      similarly apply to successive consolidations or mergers.

     

    (f) No
      Adjustment of Exercise Price in Certain Cases.
      No
      adjustment of the Exercise Price shall be made upon the issuance of the Warrant
      Shares or upon the exercise of any options, rights, or warrants outstanding
      as
      of the date of the Purchase Agreement and disclosed in Section 3.1(c) therein.
      

     

    (g) Dividends
      and Other Distributions.
      In the
      event that the Company shall at any time prior to the exercise of all Warrants
      declare a dividend (other than a dividend consisting solely of shares of Common
      Stock) or otherwise distribute to its stockholders any assets, property, rights,
      evidences of indebtedness, securities (other than shares of Common Stock),
      whether issued by the Company or by another, or any other thing of value, the
      Holders of the unexercised Warrants shall thereafter be entitled, in addition
      to
      the shares of Common Stock or other securities and property receivable upon
      the
      exercise thereof, to receive, upon the exercise of such Warrants, the same
      property, assets, rights, evidences of indebtedness, securities or any other
      thing of value that they would have been entitled to receive at the time of
      such
      dividend or distribution as if the Warrants had been exercised immediately
      prior
      to such dividend or distribution. At the time of any such dividend or
      distribution, the Company shall make appropriate reserves to ensure the timely
      performance of the provisions of this subsection 2.7 (g). Nothing contained
      herein shall provide for the receipt or accrual by a Holder of cash dividends
      prior to the exercise by such Holder of the Warrants.

     

    

    ARTICLE 3.
      REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE
      COMPANY

    

    3.1 Representations
      and Warranties.
      The
      Company hereby represents and warrants to the Holder as follows:

    

    (a) All
      shares which may be issued upon the exercise of the purchase right represented
      by this Warrant shall, upon issuance, (i) be duly authorized, validly
      issued, fully-paid and non-assessable, (iii) free and clear of all liens,
      claims and encumbrances, (iii) not be subject to any pre-emptive rights,
      and (iv) be issued without any restrictions and be freely tradable upon resale
      pursuant to Rule 504 of Regulation D under the Securities Act.

     

    
      
        
        

      

      
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    (b) The
      Company is a corporation duly organized and validly existing under the laws
      of
      the State of Nevada, and has the full power and authority to issue this Warrant
      and to comply with the terms hereof. The execution, delivery and performance
      by
      the Company of its obligations under this Warrant, including, without
      limitation, the issuance of the Warrant Shares upon any exercise of the Warrant,
      have been duly authorized by all necessary corporate action. This Warrant has
      been duly executed and delivered by the Company and is a valid and binding
      obligation of the Company, enforceable in accordance with its terms, except
      (i) as enforcement may be limited by applicable bankruptcy, insolvency,
      reorganization or similar laws affecting enforceability of creditors’ rights
      generally and (ii) as the availability of the remedy of specific
      enforcement, injunctive relief or other equitable relief may be subject to
      the
      discretion of any court before which any proceeding therefor may be
      brought.

     

    (c) The
      Company is not subject to or bound by any provision of any certificate or
      articles of incorporation or by-laws, mortgage, deed of trust, lease, note,
      bond, indenture, other instrument or agreement, license, permit, trust,
      custodianship, other restriction or any applicable provision of any law,
      statute, rule, regulation, judgment, order, writ, injunction or decree of any
      court, governmental body, administrative agency or arbitrator which could
      prevent or be violated by or under which there would be a default (or right
      of
      termination) as a result of the execution, delivery and performance by the
      Company of this Warrant.

     

    (d) The
      Company is not subject to the reporting requirements of Section 13 or Section
      15(d) of the Securities Exchange Act of 1934, as amended. The Company is
      eligible to issue the Warrant and the Warrant Shares pursuant to Rule 504 of
      Regulation D promulgated under the Securities Act. There are no restrictions
      on
      the resale or transfer of the Warrant and Warrant Shares under federal
      securities laws.

     

    

    ARTICLE 
      4.  SHELF REGISTRATION

     

    If
      any of
      the Warrant Shares required to be reserved for purposes of exercise of the
      Warrant require registration with or approval of any governmental authority
      under any federal (including but not limited to the Securities Act or similar
      federal statute then in force) or state law, or listing on any national
      securities exchange, before the Warrant Shares may be resold or transferred
      without any restrictions on their resale or transfer for reasons including,
      but
      not limited to, a material change in Rule 504 of Regulation D promulgated under
      the Securities Act or a change to the exemption for sales made to Accredited
      Investors in the state in which the Holder resides, the Company will, at its
      expense, (a) as expeditiously as possible cause the Warrant Shares to be duly
      registered or approved or listed on the relevant national securities exchange,
      as the case may be, and (b) keep such registration, approval or listing, as
      the
      case may be, continuously effective until the earlier of (i) the date on which
      all of the Warrant Shares have been sold, (ii) five (5) years from the effective
      date of any such registration, or (iii) the date on which all of the Warrant
      Shares may be sold without restriction pursuant to Rule 144 of the Securities
      Act. 

     

    
      
        
        

      

      
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    ARTICLE 
      5.  CHANGES TO FEDERAL AND STATE SECURITIES LAWS

     

    (a)
       So
      long
      as the Holder and /or its assigns owns any of the Warrant or the Warrant Shares
      and the Warrant Shares would not be freely transferable without registration,
      the Company agrees not to file a registration statement with the SEC, other
      than
      on Form 10, Form S-4 (except for a public reoffering or resale) or Form S-8
      without first having registered the Warrant Shares for resale with the SEC
      and
      for resale in such states of the United States as the Holders thereof shall
      reasonably request.

    

    (b)
       If
      the
      Company shall propose to file with the SEC any registration statement other
      than
      a Form 10, Form S-4 (except for a public reoffering or resale) or Form S-8
      which
      would cause, or have the effect of causing, the Company to become a Reporting
      Issuer or to take any other action, other than the issuance of the Warrant
      to
      the Holder, the effect of which would be to cause the Warrant Shares to be
      restricted securities (as such term is defined in Rule 144 promulgated under
      the
      Securities Act), the Company agrees to give written notification of such to
      the
      Holders of the Warrant and Warrant Shares then outstanding at least two weeks
      prior to such filing or taking of the proposed action. If any of the Warrant
      or
      Warrant Shares are then outstanding, the Company agrees to include in such
      registration statement the Warrant Shares unless the Warrant Shares would be
      freely transferable upon exercise of the Warrant without such registration,
      so
      as to permit the public resale thereof. 

     

    If
      the
      registration of which the Company gives notice is for a registered public
      offering involving an underwriting, the Company will so advise the Holders.
      In
      such event, these registration rights shall be conditioned upon such Holder's
      participation in such underwriting and the inclusion of such Holder's
      Registrable Securities in the underwriting to the extent provided herein. All
      Holders proposing to distribute their Registrable Securities through such
      underwriting shall enter into an underwriting agreement in customary form with
      the underwriter selected by the Company. In the event that the lead or managing
      underwriter in its good faith judgment determines that material adverse market
      factors require a limitation on the number of shares to be underwritten, the
      underwriter may limit the number of Registrable Securities. In such event,
      the
      Company shall so advise all holders of securities requesting registration,
      and
      the number of shares of securities that are entitled to be included in the
      registration and underwriting shall be allocated pro
      rata
      among
      all holders and other participants, including the Company, in proportion, as
      nearly as practicable, to the respective amounts of Registrable Securities
      and
      other securities which they had requested to be included in such registration
      statement at the time of filing the registration statement. If any Holder
      disapproves of the terms of any such underwriting, he may elect to withdraw
      there from by written notice to the Company and the underwriter, provided such
      notice is delivered within sixty (60) days of full disclosure of such terms
      to
      such Holder, without thereby affecting the right of such Holder to participate
      in subsequent offerings hereunder.

     

    
      
        
        

      

      
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    (c)
       Notwithstanding
      the foregoing, if the Company for any reason shall have taken any action, other
      than the issuance of the Warrant to the Holder, the effect of which would be
      to
      cause the Warrant Shares to be restricted securities (as such term is defined
      in
      Rule 144 promulgated under the Securities Act), the Company agrees to
      immediately file with the SEC and cause to become effective a registration
      statement which would permit the public resale of the Warrant Shares under
      the
      Securities Act and in such states of the United States as the Holders thereof
      shall reasonably request. 

    

    (d)
       The
      Company agrees to keep any registration required pursuant to this Article 5
      continuously effective under the Securities Act and with such states of the
      United States as the Holders thereof shall reasonably request until the earlier
      of (i) the date on which all of the Registrable Securities covered by any such
      registration have been sold, (ii) five (5) years from the effective date of
      any
      such registration, or (iii) the date on which all of the Warrant Shares may
      be
      sold without restriction pursuant to Rule 144 of the Securities Act. All costs
      and expenses of any registration required by the Company under this Warrant
      and
      related Blue Sky filings and maintaining continuous effectiveness of such
      registration and filings shall be borne by the Company.

     

    

    ARTICLE 6.  MISCELLANEOUS

     

    6.1 Transfer.
      This
      Warrant may not be offered, sold, transferred, pledged, assigned, hypothecated
      or otherwise disposed of, in whole or in part, at any time, except in compliance
      with applicable federal and state securities laws by the transferor and the
      transferee (including, without limitation, the delivery of an investment
      representation letter and a legal opinion reasonably satisfactory to the
      Company).

    

    6.2 Transfer
      Procedure.
      Subject
      to the provisions of Section 6.1, the Holder may transfer or assign this Warrant
      by giving the Company notice setting forth the name, address and taxpayer
      identification number of the transferee or assignee, if applicable (the
“Transferee”), and surrendering this Warrant to the Company for reissuance to
      the Transferee and, in the event of a transfer or assignment of this Warrant
      in
      part, the Holder. (Each of the persons or entities in whose name any such new
      Warrant shall be issued are herein referred to as a “Holder”).

    

    6.3 Loss,
      Theft, Destruction or Mutilation.
      If this
      Warrant shall become mutilated or defaced or be destroyed, lost or stolen,
      the
      Company shall execute and deliver a new Warrant in exchange for and upon
      surrender and cancellation of such mutilated or defaced Warrant or, in lieu
      of
      and in substitution for such Warrant so destroyed, lost or stolen, upon the
      Holder filing with the Company an affidavit that such Warrant has been so
      mutilated, defaced, destroyed, lost or stolen. However, the Company shall be
      entitled, as a condition to the execution and delivery of such new Warrant,
      to
      demand reasonably acceptable indemnity to it and payment of the expenses and
      charges incurred in connection with the delivery of such new Warrant. Any
      Warrant so surrendered to the Company shall be canceled.

     

    
      
        
        

      

      
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    6.4 Notices.
      All
      notices and other communications from the Company to the Holder or vice versa
      shall be deemed delivered and effective when given personally, by facsimile
      transmission with confirmation sheet at such address and/or facsimile number
      as
      may have been furnished to the Company or the Holder, as the case may be, in
      writing by the Company or the Holder from time to time.

    

    6.5 Waiver.
      This
      Warrant and any term hereof may be changed, waived, or terminated only by an
      instrument in writing signed by the party against which enforcement of such
      change, waiver, discharge or termination is sought.

    

    6.6 Governing
      Law.
      This
      Warrant shall be governed by and construed in accordance with the laws of the
      State of New York, without giving effect to its principles regarding conflicts
      of law. Any action to enforce the terms of this Warrant shall be exclusively
      heard in the county, state and federal Courts of New York and Country of the
      United States of America.

    

    6.7 Signature.
      In the
      event that any signature on this Warrant is delivered by facsimile transmission,
      such signature shall create a valid and binding obligation of the party
      executing (or on whose behalf such signature is executed) the same, with the
      same force and effect as if such facsimile signature page were an original
      thereof.

    

    6.8 Legal
      Fees.
      In the
      event any Person commences a legal action or proceeding to enforce its rights
      under this Warrant, the non-prevailing party to such action or proceeding shall
      pay all reasonable and necessary costs and expenses (including reasonable and
      necessary attorney’s fees) incurred in enforcing such rights.

    

    6.9 Attorney-in-Fact.
      To
      effectuate the terms and provisions of the Purchase Agreement, the Escrow
      Agreement, the Debenture A and this Warrant, the Company hereby agrees to grant
      a power of attorney to the Attorney-in-Fact substantially in the form of
      Exhibit H to the Purchase Agreement (the “Power of Attorney”). All acts
      done under the Power of Attorney are hereby ratified and approved and neither
      the Attorney-in-Fact nor any designee or agent thereof shall be liable for
      any
      acts of commission or omission, for any error of judgment or for any mistake
      of
      fact or law, as long as the Attorney-in-Fact is acting within the scope of
      the
      Power of Attorney and within the scope of, and in accordance with, this Warrant,
      the Purchase Agreement, the Debenture A, and the Escrow Agreement. The Power
      of
      Attorney, being coupled with an interest, shall be irrevocable while any portion
      of this Warrant remains unexercised, any of the Debenture A remains unconverted
      or any provision of the Purchase Agreement or the Escrow Agreement remains
      unsatisfied. In addition, the Company shall deliver to the Attorney-in-Fact
      a
      copy of resolutions duly adopted by the Board of Directors of the Company,
      as
      certified by the Chief Executive Officer of the Company, (a) authorizing
      transfers of the Warrant and the Debenture A, (b) future issuances of shares
      of
      Common Stock upon exercise of this Warrant and conversion of the Debenture
      A and
      (c) stating that such resolutions are irrevocable while any of the
      Debenture A remains unconverted, any portion of this Warrant remains unexercised
      or any provision of the Purchase Agreement or the Escrow Agreement remains
      unsatisfied.

    

    
      
        
        

      

      
        B-10

        
          

        

      

      
        
        

      

    

     

    
      	Date: June 30, 2005 	 	 	 
	 	 	 	 
	GLOBAL
              IT HOLDINGS, INC.	 	 	 
	 	 	 	 
	 	 	 	 
	By:	 	 	 
	
              
                

              

              Name:
                Craig Press

            	 	 	
            
	
              Title:
                Chairman and Senior Vice President

            	 	 	 
	 	 	 	 
	Attest:	 	 	 
	 	 	 	 
	
              
                
Name:

            	 	 	 
	Title 	 	 	 

    

     

    
      
        
        

      

      
        B-11

        
          

        

      

      
        
        

      

    

    
 

    APPENDIX
      I

     

    NOTICE
      OF EXERCISE

     

    
      	
              1.

            	
              The
                undersigned hereby elects (please check the appropriate box and fill
                in
                the blank spaces):

            

    

     

    □
      to
      purchase ______ shares of Common Stock, $.001 par value per share of Global
      IT
      Holdings, Inc. at $.001 per share for a total of $ _________ and pursuant to
      the
      terms of the attached Warrant, and tenders herewith payment of the aggregate
      Exercise Price of such Warrant Shares in full; or

     

    □
      to
      purchase _______ shares of Common Stock, $.001 par value per share, of Global
      IT
      Holdings, Inc. pursuant to the cashless exercise provision under Section 2.2
      (b)
      of the attached Warrant, and tenders herewith the number of Warrant Shares
      to
      purchase such Warrant Shares based upon the formula set forth in Section 2.2
      (b).

     

    
      	
              2.

            	
              Please
                issue a certificate or certificates representing said Warrant Shares
                in
                the name of the undersigned or in such other name as is specified
                below:

            

    

     

    

     

    
      	 	 	 
	 	
            
	 
 	 
 	 
 
	Dated: 	By:  	/s/ 
	 	
              
Name:
	 	Title 

    

    
 

    
      
        
        

      

      
        B-12Unassociated Document

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (this “Agreement”)
      dated
      as of June 30, 2005, by and between Global IT Holdings, Inc., a corporation
      organized under the laws of Nevada (the “Company”),
      and
      Highgate House, LLC, whose address is 8400 Normandale Lake Blvd., Suite 920,
      Minneapolis, Minnesota 55237 (the “Purchaser”).

    

    On
      or
      prior to the date hereof, (i) the Company issued certain a Secured Convertible
      Debenture (the “Debenture
      A”)
      to the
      Purchaser on the date hereof that may be converted to common stock, par value
      $.001 (the “Common
      Stock”)
      of the
      Company (the “Underlying
      Shares”)
      and
      (ii) the Company has issued Common Stock Purchase Warrants (the “Warrants”)
      that
      are exercisable into Common Stock (the “Warrant
      Shares”),
      all
      as more particularly provided therein.

    

    The
      Company and the Holder hereby agree as follows:

    

    1. Definitions.
      As used
      in this Agreement, the following terms shall have the following
      meanings:

    

    “Affiliate”
means,
      with respect to any Person, any other Person that directly or indirectly
      controls or is controlled by or under common control with such Person. For
      the
      purposes of this definition only, the term “control,”
when
      used with respect to any Person, means the possession, direct or indirect,
      of
      the power to direct or cause the direction of the management and policies of
      such Person, whether through the ownership of voting securities, by contract
      or
      otherwise; and the terms “affiliated,”
      “controlling”
and
      “controlled”
have
      meanings correlative to the foregoing.

    

    “Business
      Day”
means
      any day except Saturday, Sunday and any day which shall be a legal holiday
      or a
      day on which banking institutions in the State of New York are authorized or
      required by law or other government actions to close between the hours of 9:30
      a.m. and 5:00 p.m. New York Time.

    

    “Commission”
means
      the United States Securities and Exchange Commission.

    

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

    

    “Holder”
or
      “Holders”
means
      the Purchaser and any other holder or holders, as the case may be, from time
      to
      time of Registrable Securities.

    

    “Indemnified
      Party”
shall
      have the meaning set forth in Section
      5(c)
      hereof.

    

    “Indemnifying
      Party”
shall
      have the meaning set forth in Section
      5(c)
      hereof.

    

    “Inspectors”
shall
      have the meaning set forth in Section
      4(a)(ix)
      hereof.

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    
 

    “Losses”
shall
      have the meaning set forth in Section
      5(a)
      hereof.

    

    “New
      York Courts”
shall
      have the meaning set forth in Section
      9(e)
      hereof.

    

    “Person”
means
      an individual or a corporation, partnership, trust, incorporated or
      unincorporated association, joint venture, limited liability company, joint
      stock company, government (or an agency or political subdivision thereof) or
      other entity of any kind.

    

    “Proceeding”
means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

    

    “Prospectus”
means
      the prospectus included in a Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by such Registration Statement,
      and all other amendments and supplements to the prospectus, including
      post-effective amendments, and all material incorporated by reference or deemed
      to be incorporated by reference in such prospectus.

    

    “Registrable
      Securities”
means
      the Underlying Shares, the Warrant Shares and any other shares of Common Stock
      issued as (or issuable upon the conversion or exercise of any warrant, right,
      or
      other security which is issued as) a dividend or other distribution with respect
      to, or in exchange for or in replacement of the Debenture A, the Warrants,
      Underlying Shares or the Warrant Shares, excluding in all cases, however, any
      Registrable Securities sold by a Person in a transaction in which the seller’s
      rights under this Agreement are not assigned.

    

    “Registration”
shall
      have the meaning set forth in Section 2(a) hereof.

    

    “Registration
      Expenses”
means
      all expenses incurred in effecting any registration pursuant to this Agreement,
      including, without limitation, all registration, qualification, and filing
      fees,
      printing expenses, escrow fees, fees and disbursements of counsel for the
      Company, blue sky fees and expenses, and expenses of any regular or special
      audits incident to or required by any such registration, but shall not include
      selling expenses, fees and disbursements of counsel for the Holders and the
      compensation of regular employees of the Company, which shall be paid in any
      event by the Company.

    

    “Registration
      Statement”
means
      each registration statement, contemplated by Section 2(a) hereof, including
      the
      Prospectus, amendments and supplements to such registration statement or
      Prospectus, including pre- and post-effective amendments, all exhibits thereto,
      and all material incorporated by reference or deemed to be incorporated by
      reference in such registration statement.

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

    
 

    “Rule
      144"
      means
      Rule 144 promulgated by the Commission under the Securities Act, as such rule
      may be amended from time to time, or any similar rule or regulation hereafter
      adopted by the Commission having substantially the same effect as such
      rule.

    

    “Rule
      144A”
means
      Rule 144A promulgated by the Commission under the Securities Act, as such rule
      may be amended from time to time, or any similar rule or regulation hereafter
      adopted by the Commission having substantially the same effect as such
      rule..

    

    “Rule
      415"
      shall
      mean Rule 415 promulgated by the Commission under the Securities Act, as such
      rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      rule.

    

    “Securities
      Act”
means
      the Securities Act of 1933, as amended.

    

    “Selling
      Holders”
means
      each Holder any of whose Registrable Securities are being registered pursuant
      to
      a Registration Statement.

     

    “Underwritten
      Offering”
means
      a
      registration in connection with which securities of the Company are sold to
      an
      underwriter for sale to the public pursuant to an effective registration
      statement.

    

    2. “Piggy-back”
      Registrations.

    

    (a) If
      the
      Company decides to register any of its Common Stock or securities convertible
      into or exchangeable for Common Stock under the Securities Act (a “Registration”)
      on a
      form that is suitable for an offering of shares of Common Stock by the Company
      or by third parties and that is not a registration solely to implement an
      employee benefit plan on Commission Form S-8, a registration statement on
      Commission Form S-4 (or successor form) or a transaction to which Rule 145
      or
      any other similar rule of the Commission is applicable (such form, a
“Registration
      Statement”),
      the
      Company shall give written notice to the Holders of its intention to effect
      such
      a Registration. Subject to Section
      2(b)
      below,
      the Company shall use all reasonable efforts to effect Registration under the
      Securities Act of all Registrable Securities that the Holders request be
      included in such Registration by a written notice delivered to the Company
      within thirty (30) days after the notice given by the Company. Each of the
      Holders agrees that any Registrable Securities which such Holder requests to
      be
      included in a Registration pursuant to this Section
      2
      shall be
      included by the Company on the same form of Registration Statement as selected
      for the Registration.

    

    (b) If
      a
      Registration involves an Underwritten Offering, the Company shall not be
      required to register securities in excess of the amount that the principal
      underwriter reasonably and in good faith recommends in writing for inclusion
      in
      such offering (a “Cutback”),
      a
      copy of which recommendation, and supporting reasoning, shall be delivered
      to
      each Holder. If such a Cutback occurs, the number of shares that are entitled
      to
      be included in the Registration and underwriting shall be allocated in the
      following manner: (i) first, to the Company for any securities it proposes
      to
      sell for its own account, (ii) second, to any Person with demand registration
      rights requiring such registration, and (iii) third, to the Holders and other
      holders of Company securities with piggy-back registration rights requesting
      inclusion in the Registration, pro
      rata
      among
      the respective holders thereof on the basis of the number of shares for which
      each such requesting holder has requested registration.

     

    
      
        
        

      

      
        C-3

        
          

        

      

      
        
        

      

    

    
 

    (c) If
      the
      Registration of which the Company gives notice is for an underwritten public
      offering, the Company shall so advise the Holders as a part of the written
      notice given pursuant to Section
      2(a).
      In such
      event, the right of any Holder to have its Registrable Securities included
      in
      the Registration pursuant to this Section
      2
      shall be
      conditioned upon such Holder’s participation in such underwriting and the
      inclusion of such Holder’s Registrable Securities in the underwriting to the
      extent provided herein. All Holders proposing to distribute their securities
      through such underwriting shall (together with the Company and its other
      security holders with registration rights to participate therein distributing
      their securities through such underwriting) enter into an underwriting agreement
      in customary form with the representative of the underwriters or the managing
      underwriter selected by the Company.

    

    (d) If
      the
      Company elects to terminate any Registration after a Registration Statement
      for
      such Registration shall have been filed, the Company will have no obligation
      to
      register the Registrable Securities that the Holders sought to have included
      in
      such Registration. The Company shall bear all Registration Expenses of the
      Holders in connection with any Registration.

    

    3. Representations
      and Warranties.

    

    (a) 
      The
      Company hereby makes the following representations and warranties to the
      Purchaser:

    

    (i) The
      Company has the requisite corporate power and authority to enter into, execute
      and deliver this Agreement, and to consummate the transactions contemplated
      hereby and to carry out its obligations hereunder. The execution and delivery
      of
      this Agreement by the Company and the consummation by it of the transactions
      contemplated hereby have been duly authorized by all necessary action on the
      part of the Company. This Agreement has been duly executed and delivered by
      the
      Company and constitutes a valid and binding obligation of the Company
      enforceable against the Company in accordance with its terms, except as such
      enforceability may be limited by applicable bankruptcy, insolvency, fraudulent
      transfer, reorganization, moratorium, liquidation or similar laws relating
      to,
      or affecting generally the enforcement of, creditors’ rights or by other
      equitable principles of general application;

    

    (ii) The
      Warrants and Debenture A are validly issued, fully paid and non-assessable.
      The
      Underlying Shares and the Warrant Shares have been duly authorized for issuance,
      offer and sale, and when issued and delivered, in accordance with the Warrants
      or Debenture A, respectively, shall be validly issued, fully paid and
      non-assessable;

     

    
      
        
        

      

      
        C-4

        
          

        

      

      
        
        

      

    

    
 

    (iii) The
      Company has and at all times while Warrants and the Debenture A remain
      outstanding will continue to maintain an adequate reserve of shares of Common
      Stock to enable it to perform its obligations under this Agreement, the
      Debenture A and the Warrants;

    

    (iv) The
      execution, delivery and performance of this Agreement, and the consummation
      by
      the Company of the transactions contemplated hereby do not and will not (i)
      conflict with or violate any provision of its or any of its subsidiaries’s
      articles of incorporation, resolutions or bylaws or (ii) require the consent
      of
      any third party, conflict with, or constitute a default (or an event which
      with
      notice or lapse of time or both would become a default) under, or give to others
      any rights of termination, amendment, acceleration or cancellation of, any
      agreement, indenture or instrument to which the Company is a party, or (iii)
      result in a violation of any law, rule, regulation, order, judgment, injunction,
      decree or other restriction of any court or governmental authority to which
      the
      Company is subject (including federal and state securities laws and
      regulations), or by which any property or assets of the Company or any of its
      Subsidiaries is bound or affected, except in the case of each of clauses (ii)
      and (iii), such conflicts, defaults, terminations, amendments, accelerations,
      cancellations and violations as would not, individually or in the aggregate,
      have a material adverse effect on the Company; 

    

    (v) Neither
      the Company nor any of its subsidiaries is required to obtain any consent,
      permit, waiver, authorization or order of, or make any filing or registration
      with, any court or other federal, state, local or other governmental authority
      or other Person in connection with the execution, delivery and performance
      by
      the Company of this Agreement;

    

    (vi) Neither
      the Company nor any of its subsidiaries (i) is in default under or in violation
      of any indenture, loan or credit agreement or any other agreement or instrument
      to which it is a party or by which it or any of its properties is bound, except
      such conflicts or defaults as do not have a material adverse effect on the
      Company, (ii) is in violation of any order of any court, arbitrator or
      governmental body, except for such violations as do not have a material adverse
      effect on the Company, or (iii) is in violation of any statute, rule or
      regulation of any governmental authority which could (individually or in the
      aggregate) (x) adversely affect the legality, validity or enforceability of
      this
      Agreement, (y) have a material adverse effect on the Company or (z) adversely
      impair the Company’s ability or obligation to perform fully on a timely basis
      its obligations under this Agreement;

    

    (b) 
      The
      Purchaser hereby represents and warrants to the Company as follows:

     

    
      
        
        

      

      
        C-5

        
          

        

      

      
        
        

      

    

    
 

    (i) Such
      Purchaser has the requisite capacity or, as the case may be, authority to enter
      into and to consummate the transactions contemplated hereby and otherwise to
      carry out its obligations hereunder. The execution and delivery of this
      Agreement have been duly authorized by all necessary action or corporate action,
      as the case may be, on the part of such Purchaser. This Agreement has been
      duly
      executed and delivered by such Purchaser or on its behalf and constitutes the
      valid and legally binding obligation of such Purchaser, enforceable against
      it
      in accordance with its terms; except as such enforceability may be limited
      by
      applicable bankruptcy, insolvency, liquidation, fraudulent transfer,
      reorganization, moratorium laws and remedies or by other equitable principles
      of
      general application or similar laws relating to or affecting generally the
      enforcement of creditors’ rights. 

    

    (iii) 
      Purchaser is acquiring the Debenture A, the Warrant, the Warrant Shares and
      Underlying Shares for its own account for investment purposes only and without
      a
      view toward the resale or distribution thereof, without prejudice, however,
      to
      the Purchaser’s right, subject to the provisions of this Agreement, at all times
      to sell or otherwise dispose of all or any part of such Debenture A, Warrant,
      Warrant Shares or Underlying Shares in compliance with applicable federal and
      state securities laws.

     

     

    4. Procedures
      for Registration.
      

    

    (a) Whenever
      the Company is required to register Registrable Securities under this Agreement,
      it agrees to do the following at its sole cost and expense:

    

    (i) advise
      the underwriter(s), if any, and the Selling Holders promptly and, if requested
      by such Persons, to confirm such advice in writing: (A) when the Prospectus,
      or
      any Prospectus supplement or post-effective amendment has been filed, and,
      with
      respect to the Registration Statement or any post-effective amendment thereto,
      when the same has become effective; (B) of any request by the Commission for
      amendments to the Registration Statement or amendments or supplements to the
      Prospectus or for additional information relating thereto; (C) of the issuance
      by the Commission of any stop order suspending the effectiveness of the
      Registration Statement under the Securities Act or of the suspension by any
      state securities commission of the qualification of the Registrable Securities
      for qualification, offering or sale in any jurisdiction, or the initiation
      of
      any Proceeding for any of the preceding purposes; and (D) of the existence
      of
      any fact or the happening of any event that makes any statement of a material
      fact made in the Registration Statement, the Prospectus, any amendment or
      supplement thereto, or any document incorporated by reference therein untrue,
      or
      that requires the making of any additions to or changes in the Registration
      Statement or the Prospectus in order to make the statements therein not
      misleading. If, at any time, the Commission issues any stop order suspending
      the
      effectiveness of the Registration Statement or any state securities commission
      or other regulatory authority issues an order suspending the qualification
      or
      exemption from qualification of any Registrable Securities under state
      securities or blue sky laws, the Company shall use its best efforts to obtain
      the withdrawal or lifting of such order at the earliest possible
      time;

     

    
      
        
        

      

      
        C-6

        
          

        

      

      
        
        

      

    

    
 

    (ii) if
      requested by any Selling Holder or the underwriter(s), if any, incorporate
      in
      the Registration Statement or Prospectus, pursuant to a supplement or
      post-effective amendment if necessary, such information as such Selling Holder
      and the underwriter(s), if any, may reasonably request to have included therein,
      with respect to the number of Registrable Securities, if any, being sold to
      such
      underwriter(s), the purchase price being paid therefor and any other terms
      of
      the offering of the Registrable Securities to be sold in such offering, and
      the
      Company shall make all required filings of such Prospectus supplement or
      post-effective amendment as soon as practicable after the Company is notified
      of
      the matters to be incorporated in such Prospectus supplement or post-effective
      amendment;

    

    (iii) furnish
      to the Selling Holders and each of the underwriter(s), if any, without charge,
      before filing with the Commission, at least one copy of the Registration
      Statement, as first filed with the Commission, and of each amendment thereto,
      including the Prospectus and all documents incorporated by reference therein
      and
      all exhibits (including exhibits incorporated therein by
      reference);

    

    (iv) consult
      with the Selling Holders and the underwriter(s), if any, prior to the filing
      of
      such Registration Statement or Prospectus;

    

    (v) deliver
      to each of the Selling Holders and underwriter(s), if any, without charge,
      as
      many copies of the Prospectus (including each preliminary Prospectus) and any
      amendment or supplement thereto as such Persons may reasonably request, the
      Company hereby consenting to the use of the Prospectus and any amendment or
      supplement thereto by each of the Selling Holders and each of the
      underwriter(s), if any, in connection with the offering and the sale of any
      Registrable Securities covered by the Prospectus or any amendment or supplement
      thereto;

    

    (vi) use
      its
      best efforts, prior to any public offering of Registrable Securities, to
      register or qualify the Registrable Securities under the securities or blue
      sky
      laws of such jurisdictions as the Holder or underwriter(s), if any, may
      reasonably request and do any and all other acts or things necessary or
      advisable to enable the disposition in such jurisdictions of the Registrable
      Securities covered by the Registration Statement; provided,
      however,
      that
      the Company shall not be required to register or qualify as a foreign
      corporation where it is not now so qualified or to take any action that would
      subject it to the service of process in suits or to taxation, other than as
      to
      matters and transactions relating to the Registration Statement, in any
      jurisdiction where it is not now so subject;

    

    (vii) cooperate
      with the Selling Holders and the underwriter(s), if any, to facilitate the
      timely preparation and delivery of certificates representing Registrable
      Securities covered by a Registration Statement and not bearing any restrictive
      legends, except as required by law, and enable such Registrable Securities
      to be
      in such denominations and registered in such names as the Holders may request
      prior to any sale of Registrable Securities made by the underwriter(s), if
      any;

     

    
      
        
        

      

      
        C-7

        
          

        

      

      
        
        

      

    

    
 

    (viii) in
      connection with the preparation and filing of each Registration Statement under
      the Securities Act pursuant to this Agreement, the Company shall give Selling
      Holders, their underwriters, if any, and one counsel or firm of counsel and
      one
      accountant or firm of accountants representing all Selling Holders the
      opportunity to participate in the preparation of such Registration Statement,
      each Prospectus included therein or filed with the Commission, and each
      amendment thereof or supplement thereto.

    

    (ix) make
      available for inspection by the Selling Holders, any underwriter participating
      in any disposition pursuant to a Registration Statement, and any attorney,
      accountant or other agent retained by any Holder or underwriter (collectively,
      the “Inspectors”), all financial and other records, pertinent corporate
      documents and properties of the Company necessary to enable them to exercise
      their due diligence responsibility, and cause the Company’s officers, directors
      and employees to supply all information reasonably requested by any such
      Inspector in connection with such Registration Statement;

    

    (x) notify
      each seller of Registrable Securities covered by a Registration Statement at
      any
      time when a Prospectus relating thereto is required to be delivered under the
      Securities Act of the happening of any event as a result of which the Prospectus
      included in the Registration Statement, as then in effect, includes and untrue
      statement of a material fact or omits to state a material fact required to
      be
      stated therein or necessary to make the statements therein not misleading or
      incomplete in the light of the circumstances then existing, and, at the request
      of any such seller, prepare and furnish to such seller a reasonable number
      of
      copies of a supplement to be an amendment of such Prospectus as may be necessary
      so that, as thereafter delivered to the purchasers of any Registrable
      Securities, such Prospectus shall not include an untrue statement of a material
      fact or omit to state a material fact required to be stated therein or necessary
      to make the statements therein not misleading or incomplete in the light of
      the
      circumstances then existing;

    

    (xi) keep
      such
      registration effective for a period of one hundred eighty (180) days or until
      the Selling Holders have completed the distribution described in any
      Registration Statement relating thereto, whichever first occurs; provided,
      however,
      that
      (A) such 180-day period shall be extended for a period of time equal to the
      longer of (1) the period the Holder refrains from selling any securities
      included in such registration at the request of an underwriter of securities
      of
      the Company and (2) the period ending on the date on which Rule 144(k) first
      becomes available for transfers of Registrable Securities and (B) in the case
      of
      any Registration of Registrable Securities on Form S-3 which are intended to
      be
      offered on a continuous or delayed basis, such 180-day period shall be extended,
      if necessary, to keep the Registration Statement effective until all such
      Registrable Securities are sold, however in no event longer than one year from
      the Effective Date of the Registration Statement and provided that Rule 415
      permits an offering on a continuous or delayed basis;

     

    
      
        
        

      

      
        C-8

        
          

        

      

      
        
        

      

    

    
 

    (xii) cause
      all
      such Registrable Securities registered hereunder to be listed on each securities
      exchange on which similar securities issued by the Company are then
      listed;

    

    (xiii) provide
      a
      transfer agent and registrar for all Registrable Securities registered pursuant
      to a Registration Statement and a CUSIP number for all such Registrable
      Securities, in each case not later than the effective date of such Registration
      Statement;

    

    (xiv) otherwise
      use its best efforts to comply with all applicable rules and regulations of
      the
      Commission, and make available to its security holders, as soon as reasonably
      practicable, an earnings statement covering the period of at least 12 months,
      but not more than 18 months, beginning with the first month after the effective
      date of the Registration Statement, which earnings statement shall satisfy
      the
      provisions of Section 11(a) of the Securities Act; and

    

    (xv) at
      such
      time as a Registration Statement covering a resale of any Registrable Securities
      has been declared effective by the Commission, cause its counsel to deliver
      to
      the transfer agent for the Common Stock an opinion, subject to the making by
      Selling Holders of such representations and warranties to Company counsel as
      it
      may reasonably require, certifying that such Registrable Securities may be
      sold
      by the Selling Holders pursuant to such Registration Statement with the
      purchasers thereof receiving share certificates without restrictive legend,
      which opinion shall remain effective so long as such Registration Statement
      remains in full force and effect;

    

    (b) Each
      Selling Holder shall, upon receipt of notice from the Company of the occurrence
      of any event of the kind described in Section
      4(a)(x),
      forthwith discontinue disposition of Registrable Securities following the
      effective date of a Registration Statement covering Registrable Securities
      until
      such Holder’s receipt of copies of the Prospectus supplement and/or
      post-effective amendment or until it is advised in writing by the Company that
      the use of the applicable Prospectus may be resumed and, in either case, has
      received copies of any additional or supplemental filings that are incorporated
      or deemed to be incorporated by reference in such Prospectus or Registration
      Statement.

    

    (c) Each
      Holder covenants and agrees that (i) it will not offer or sell any Registrable
      Securities being registered pursuant to any Registration Statement until such
      Holder shall have received copies of the related Prospectus and notice from
      the
      Company that such Registration Statement has become effective and (ii) such
      Holder and its officers, directors and Affiliates, if any, will comply with
      the
      Prospectus delivery requirements of the Securities Act as applicable to them
      in
      connection with sales of Registrable Securities pursuant to any Registration
      Statement.

    

    5. Indemnification.

     

    
      
        
        

      

      
        C-9

        
          

        

      

      
        
        

      

    

    
 

    (a) Indemnification
      by the Company.
      The
      Company shall, notwithstanding termination of this Agreement and without
      limitation as to time, indemnify and hold harmless each Holder, the officers,
      directors, agents (including any underwriters retained by the Holders in
      connection with the offer or sale of Registrable Securities), brokers,
      investment advisors and employees of each of them, each Person who controls
      any
      such Holder (within the meaning of Section 15 of the Securities Act or Section
      20 of the Exchange Act) and the officers, directors, agents and employees of
      each such controlling Person, from and against any and all losses, claims,
      damages, liabilities, costs (including, without limitation, costs of preparation
      and attorneys’ fees) and expenses (collectively, “Losses”),
      as
      incurred, arising out of or relating to any untrue or alleged untrue statement
      of a material fact contained in such Registration Statement, any Prospectus
      or
      any form of Prospectus or in any amendment or supplement thereto or in any
      preliminary Prospectus, or arising out of or relating to any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein (in the case of any Prospectus or form of Prospectus
      or
      amendment or supplement thereto, in light of the circumstances under which
      they
      were made) not misleading, except solely to the extent that (I) such untrue
      statements or omissions are based solely upon information regarding such Holder
      furnished in writing to the Company by or on behalf of such Holder expressly
      for
      use therein, which information was relied on by the Company for use therein
      or
      (ii) such information relates to such Holder or such Holder’s proposed method of
      distribution of Registrable Securities and was furnished in writing to the
      Company by or on behalf of such Holder expressly for use therein. The Company
      shall notify the Holders promptly of the institution, threat or assertion of
      any
      Proceeding of which the Company is aware in connection with the transactions
      contemplated by this Agreement.

    

    (b) Indemnification
      by Holders.
      In
      connection with each Registration Statement, each Selling Holder shall furnish
      to the Company in writing such information as the Company reasonably requests
      for use in connection with such Registration Statement or the related Prospectus
      and agrees, severally and not jointly, to indemnify and hold harmless the
      Company, their directors, officers, agents and employees, each Person who
      controls the Company (within the meaning of Section 15 of the Securities Act
      and
      Section 20 of the Exchange Act), and the directors, officers, agents or
      employees of such controlling Persons, to the fullest extent permitted by
      applicable law, from and against all Losses (as determined by a court of
      competent jurisdiction in a final judgment not subject to appeal or review)
      arising solely out of or based solely upon any untrue statement of a material
      fact contained in such Registration Statement, such Prospectus, or any form
      of
      Prospectus, or arising solely out of or based solely upon any omission of a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading solely to the extent that (I) such untrue statement
      or
      omission is contained in any information furnished in writing by such Holder
      to
      the Company specifically for inclusion in such Registration Statement or such
      Prospectus and such information was relied upon by the Company for use in such
      Registration Statement, such Prospectus or such form of Prospectus, or (ii)
      such
      information relates to such Holder or such Holder’s proposed method of
      distribution of Registrable Securities and was furnished in writing by or on
      behalf of such Holder to the Company specifically for inclusion in such
      Registration Statement or such Prospectus and such information was relied upon
      by the Company for use in such Registration Statement, such Prospectus or such
      form of Prospectus; provided,
      however,
      that
      anything contained herein to the contrary notwithstanding, no Holder shall
      be
      liable for any claims hereunder in an amount in excess of the net proceeds
      received by such Holder from the sale of its Registrable Securities pursuant
      to
      a Registration Statement. In addition, the foregoing shall not inure to the
      benefit of any Holder if a copy of such Prospectus (as then amended or
      supplemented) was furnished by the Company to such Holder and was not sent
      or
      given by or on behalf of such Holder to such Holder’s purchaser of Registrable
      Securities if required by law to have been so delivered.

     

    
      
        
        

      

      
        C-10

        
          

        

      

      
        
        

      

    

    
 

    (c) Conduct
      of Indemnification Proceedings.
      If any
      Proceeding is brought or asserted against any Person entitled to indemnity
      hereunder (an “Indemnified
      Party”),
      such
      Indemnified Party promptly shall notify the Person from whom indemnity is sought
      (the “Indemnifying
      Party”)
      in
      writing, and the Indemnifying Party shall assume the defense thereof, including
      the employment of counsel reasonably satisfactory to the Indemnified Party
      and
      the payment of all fees and expenses incurred in connection with defense
      thereof; provided that the failure of any Indemnified Party to give such notice
      shall not relieve the Indemnifying Party of its obligations or liabilities
      pursuant to this Agreement, except (and only) to the extent that it is finally
      determined by a court of competent jurisdiction (which determination is not
      subject to appeal or further review) that such failure shall have proximately
      and materially adversely prejudiced the Indemnifying Party.

    

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (I) the Indemnifying Party has agreed to pay such fees and expenses;
      or
      (ii) the Indemnifying Party shall have failed to assume promptly the defense
      of
      such Proceeding and to employ counsel reasonably satisfactory to such
      Indemnified Party in such Proceeding; or (iii) the named parties to any such
      Proceeding (including any impleaded parties) include both such Indemnified
      Party
      and the Indemnifying Party, and such Indemnified Party shall have been advised
      by counsel that a conflict of interest is likely to exist if the same counsel
      were to represent such Indemnified Party and the Indemnifying Party (in which
      case, if such Indemnified Party notifies the Indemnifying Party in writing
      that
      it elects to employ separate counsel at the expense of the Indemnifying Party,
      the Indemnifying Party shall not have the right to assume the defense of the
      claim against the Indemnified Party but shall retain the right to control the
      overall Proceedings out of which the claim arose, and counsel employed by the
      Indemnified Party shall be at the expense of the Indemnifying Party). The
      Indemnifying Party shall not be liable for any settlement of any such Proceeding
      effected without its written consent, which consent shall not be unreasonably
      withheld. No Indemnifying Party shall, without the prior written consent of
      the
      Indemnified Party, effect any settlement of any pending Proceeding in respect
      of
      which any Indemnified Party is a party, unless such settlement includes an
      unconditional release of such Indemnified Party from all liability on claims
      that are the subject matter of such Proceeding.

     

    
      
        
        

      

      
        C-11

        
          

        

      

      
        
        

      

    

    
 

    All
      fees
      and expenses of the Indemnified Party to which the Indemnified Party is entitled
      hereunder (including reasonable fees and expenses to the extent incurred in
      connection with investigating or preparing to defend such Proceeding in a manner
      not inconsistent with this Section) shall be paid to the Indemnified Party,
      as
      incurred, within ten (10) Business Days after the Indemnified Party gives
      written notice thereof to the Indemnifying Party.

    

    (d) Contribution.
      If a
      claim for indemnification under Section
      5(a)
      or
5(b)
      of this
      Agreement is unavailable to an Indemnified Party or is insufficient to hold
      such
      Indemnified Party harmless for any Losses in respect of which this Section
      would
      apply by its terms (other than by reason of exceptions provided in this
Section),
      then
      each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
      contribute to the amount paid or payable by such Indemnified Party as a result
      of such Losses, (i) in such proportion as is appropriate to reflect the relative
      benefits received by the Indemnifying Party on the one hand and the Indemnified
      Party on the other from the distribution of the Registrable Securities or (ii)
      if the allocation provided by clause (i) above in this paragraph is not
      permitted by applicable law, in such proportion as is appropriate to reflect
      not
      only the relative benefits referred to in such clause (i) but also the relative
      fault of the Indemnifying Party and Indemnified Party in connection with the
      actions, statements or omissions that resulted in such Losses as well as any
      other relevant equitable considerations. The relative fault of such Indemnifying
      Party and Indemnified Party shall be determined by reference to, among other
      things, whether any action in question, including any untrue or alleged untrue
      statement of a material fact or omission or alleged omission of a material
      fact,
      has been taken or made by, or relates to information supplied by, such
      Indemnifying Party or Indemnified Party, and the parties’ relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      action, statement or omission. The amount paid or payable by a party as a result
      of any Losses shall be deemed to include, subject to the limitations set forth
      in Section
      5(c)
      hereof,
      any attorneys’ or other fees or expenses incurred by such party in connection
      with any Proceeding to the extent such party would have been indemnified for
      such fees or expenses if the indemnification provided for in this Section was
      available to such party.

    

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section
      5(d)
      were
      determined by pro
      rata
      allocation or by any other method of allocation that does not take into account
      the equitable considerations referred to in the immediately preceding paragraph.
      Notwithstanding the provisions of this Section
      5(d),
      no
      Holder shall be required to contribute, in the aggregate, any amount in excess
      of the amount by which the proceeds actually received by such Holder from the
      sale of its Registrable Securities subject to the Proceeding exceeds the amount
      of any damages that such Holder has otherwise been required to pay by reason
      of
      such untrue or alleged untrue statement or omission or alleged omission. No
      Person guilty of fraudulent misrepresentation (within the meaning of Section
      11(f) of the Securities Act) shall be entitled to contribution from any Person
      who was not guilty of such fraudulent misrepresentation.

     

    
      
        
        

      

      
        C-12

        
          

        

      

      
        
        

      

    

    
 

    (e) The
      indemnity and contribution agreements contained in this Section
      5
      and the
      representations and warranties of the Company set forth in this Agreement shall
      remain operative and in full force and effect, regardless of any investigation
      made by or on behalf of any Holder or any Person controlling Holder, the
      Company, its directors or officers or any Person controlling the
      Company.

    

    (f) No
      Indemnifying Party shall, without the prior written consent of the Indemnified
      Party, effect any settlement of any pending or threatened action, suit or
      proceeding in respect of which any Indemnified Party is or could have been
      a
      party and indemnity could have been sought hereunder by such Indemnified Party,
      unless such settlement includes an unconditional release of such Indemnified
      Party from all liability on claims that are the subject matter of such action,
      suit or proceeding.

    

    (g) The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties.

    

    6. Rule
      144.
      The
      Company shall file the reports required to be filed by it under the Securities
      Act and the Exchange Act in a timely manner and, if at any time the Company
      is
      not required to file such reports, it will, upon the request of any Holder,
      make
      publicly available other information for as long as necessary to permit sales
      of
      its securities pursuant to Rule 144. The Company further covenants that it
      will
      take such further action as any Holder may reasonably request, all to the extent
      required from time to time to enable such Holder to sell Registrable Securities
      without registration under the Securities Act within the limitation of the
      exemptions provided by Rule 144. Upon the request of any Holder, the Company
      shall deliver to such Holder a written certification of a duly authorized
      officer as to whether it has complied with such requirements.

    

    7. Rule
      144A.
      The
      Company agrees that, upon the request of a Holder or any prospective purchaser
      of Registrable Securities designated by a Holder, the Company shall promptly
      provide (but in any case within fifteen (15) days of a request) to such Holder
      or potential purchaser, the following information:

    

    (a) a
      brief
      statement of the nature of the business of the Company and any subsidiaries
      and
      the products and services each of them offers;

    

    (b) the
      most
      recent consolidated balance sheets and profit and losses and retained earnings
      statements, and similar financial statements of the Company for the two (2)
      most
      recent fiscal years (such financial information shall be audited, to the extent
      reasonably available); and

    

    (c) such
      other information about the Company, any subsidiaries, and their business,
      financial condition and results of operations as such Holder or purchaser of
      such Registrable Securities shall request in order to comply with Rule 144A,
      as
      amended, and in connection therewith the anti-fraud provisions of the federal
      and state securities laws.

     

    
      
        
        

      

      
        C-13

        
          

        

      

      
        
        

      

    

    
 

    The
      Company hereby represents and warrants to the Holders and any prospective
      purchaser of Registrable Securities from a Holder that the information provided
      by the Company pursuant to this Section
      7
      will, as
      of the dates of such information, not contain any untrue statement of a material
      fact or omit to state a material fact necessary in order to make the statements
      made, in light of the circumstances under which they were made, not
      misleading.

    

    8. Consent
      to be Bound; Assignability of Registration Rights.
      Each
      subsequent holder of Registrable Securities must consent in writing to be bound
      by the terms and conditions of this Agreement in order to acquire the rights
      granted pursuant to this Agreement. Subject to the foregoing sentence, the
      registration rights set forth in this Agreement are assignable to each assignee
      of Registrable Securities conveyed in accordance herewith who agrees in writing
      to be bound by the terms and conditions of this Agreement.

    

    9. Miscellaneous.

    

    (a) No
      amendment, modification, termination or cancellation of this Agreement shall
      be
      effective unless made in a writing signed by the Company and all of the Persons
      who are then Holders of Registrable Securities;

    

    (b) The
      Company and the Holders agree that the rights created by this Agreement are
      unique, and that the loss of any such right is not susceptible to monetary
      quantification. Consequently, the parties agree that an action for specific
      performance (including for temporary and/or permanent injunctive relief) of
      the
      obligations created by this Agreement is a proper remedy for the breach of
      the
      provisions of this Agreement, without the necessity of proving actual damages.
      If the parties hereto are forced to institute legal proceedings to enforce
      their
      rights in accordance with the provisions of this Agreement, the prevailing
      party
      shall be entitled to recover its reasonable expenses, including attorneys’ fees,
      in connection with any such action;

    

    (c) Except
      as
      otherwise specifically provided herein, all notices, requests, demands and
      other
      communications provided for hereunder shall be in writing and shall be deemed
      duly given to the Person for whom intended (i) upon receipt when personally
      delivered, (ii) one (1) day after being sent by a nationally recognized
      overnight courier for next day delivery or telecopy providing confirmation
      or
      receipt of delivery, or (iii) three (3) days after being sent by certified
      or
      registered mail, postage and certified or registered mail fees prepaid, return
      receipt requested, if sent to such Person at the address for such Person
      indicated below or to such other address as may be designated by such Person
      in
      writing sent by such Person in the manner required by this Section:

     

    
      
        
        

      

      
        C-14

        
          

        

      

      
        
        

      

    

     

    

      
        	
                If
                  to the Company:

              	
                Global
                  IT Holdings, Inc.

              
	 	
                589
                  8th Avenue, 18th Floor

              
	 	
                New
                  York, NY 10018

              
	 	
                Attn:
                  Ralph Clark

              
	 	
                Tel:
                  (212) 983-5630 

              
	 	
                Fax:
                  (212) 972-4012 

              
	
                With
                  copies to:

              	
                Anslow
                  & Jaclin, LLP

              
	 	
                195
                  Route 9 South, Suite 204

              
	 	
                Manalapan,
                  NJ 07726

              
	 	
                Attn:
                  Gregg E. Jaclin, Esq.

              
	 	
                Tel:
                  (732) 409-1212

              
	 	
                Fax:
                  (732) 577-1188

              
	 	 
	
                If
                  to the Holder: 

              	
                Highgate
                  House, LLC

              
	 	
                8400
                  Normandale Lake Blvd.

              
	 	
                Suite
                  920

              
	 	
                Minneapolis,
                  Minnesota 55437

              
	 	 
	
                With
                  a copy to:

              	
                Gottbetter
                  & Partners 

              
	 	
                488
                  Madison Avenue

              
	 	
                New
                  York, New York 10022

              
	 	
                Attn:
                  Adam S. Gottbetter

              
	 	
                Tel:
                  (212) 400-6900

              
	 	
                Fax:
                  (212) 400-6901

              

      

     

    (d) This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid and
      binding obligation of the party executing (or on whose behalf such signature
      is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof;

    (e) This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      state of New York without regard to principles thereof relating to the conflict
      of laws. Each of the Company and each Holder hereby irrevocably submits to
      the
      jurisdiction of any New York state court or any federal court sitting in the
      city and county of New York (collectively, the “New York Courts”) in respect of
      any Proceeding arising out of or relating to this Agreement and irrevocably
      accepts for itself and in respect of its property, generally and
      unconditionally, jurisdiction of the New York Courts. Each of the Company and
      each Holder irrevocably waives, to the fullest extent it may effectively do
      so
      under applicable law, any objection that it may now or hereafter have to the
      laying of the venue of any such Proceeding brought in any New York Court and
      any
      claim that any such Proceeding brought in any New York Court has been brought
      in
      an inconvenient forum;

    

    (f) The
      remedies provided herein are cumulative and not exclusive of one another or
      of
      any remedies provided by law;

     

    
      
        
        

      

      
        C-15

        
          

        

      

      
        
        

      

    

    
 

    (g) If
      any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their reasonable efforts to
      find and employ an alternative means to achieve the same or substantially the
      same result as that contemplated by such term, provision, covenant or
      restriction. It is hereby stipulated and declared to be the intention of the
      parties that they would have executed the remaining terms, provisions, covenants
      and restrictions without including any of such that may be hereafter declared
      invalid, illegal, void or unenforceable.

    

    (h) The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

    

    

    [Signatures
      on following page]

    
 

    
      
        
        

      

      
        C-16

        
          

        

      

      
        
        

      

    

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

     

    
      	 	 	
            
	 	COMPANY
	 	 
	 	GLOBAL IT HOLDINGS, INC. 
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
              Craig Press
	 	Title:
              Chairman and Senior Vice President

    

    
       

      
        	 	 	
              
	 	PURCHASER
	 	 
	 	HIGHGATE HOUSE, LLC 
	 
 	 
 	 
 
	 	By:  	HH Advisors, LLC, its managing
member
	 	 	 
	 	 	 
	 	 	By:  Spencer Investment Group, Inc.,
                its
                managing member
	 	 	 
	 	 	 
	 	By:  	 
	 	
                
Name:
                Adam S. Gottbetter
	 	Title: President

      

    

    

    
      
        
        

      

      
        C-17

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