Document:

exhibit103.htm

    SECURED & COLLATERALIZED
PROMISSORY NOTE

     

    $1,800,000 PLUS INTEREST DUE &
PAYABLE

     

    DOCUMENT C-01152008

     

     

     

    THIS NOTE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED. THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT OR
APPLICABLE EXEMPTION OR SAFE HARBOR PROVISION.

     

     

     

    FOR VALUE RECEIVED, on the Effective Date, as
defined below, JMJ Financial (the "Borrower,” or “Writer”), hereby promises to
pay to the Lender (“Lender” or “ Holder”), as defined below, the Principal Sum,
as defined below, along with the Interest Rate, as defined below, according to
the terms herein. 

     

     

     

     

     

    
      	
               

               

              The "Effective Date"
      shall be: 

               

            	
               

               

              January 15,
      2008

               

            
	
               

               

              The "Holder" shall
      be: 

               

            	
               

               

              Auriga Laboratories
      Inc.

               

            
	
               

               

              The "Principal Sum"
      shall be: 

               

            	
              
$1,800,000 (one
      million eight hundred thousand US Dollars); Subject to the following:
      accrued, unpaid interest shall be added to the Principal Sum.

               

            
	
               

               

              The “Consideration”
      shall be:

               

               

               

            	
               

               

              $1,800,000 (one
      million eight hundred thousand) dollars in the form of this $1,800,000
      Secured & Collateralized Promissory Note as memorialized and evidenced
      by the attached Exhibit A Collateral and Security Agreement.

               

            
	
               

               

              The "Interest Rate"
      shall be: 

               

            	
               

               

              12% one-time
      interest charge on the Principal Sum.   No interest or principal
      payments are required until the Maturity Date, but both principal and
      interest may be prepaid prior to maturity date.  

               

            
	
               

               

              The “Recourse” terms
      shall be:

               

            	
              
This is a full
      recourse Note such that, for example, if the Writer defaults on the
      payment of this Note, forcing the Holder to foreclose on the
      security/collateral and there is a deficiency between (1) the outstanding
      principal and interest amount and (2) the foreclosure liquidation amount;
      then the Holder has the right to pursue additional claims against the
      Writer for that deficiency.

               

               

               

            
	
               

               

              The “Collateral” or
      “Security” shall be:

               

               

               

            	
              
$1,800,000 WORTH
      OF A-1 MONEY MARKET FUND, as memorialized and evidenced by the attached
      Exhibit A Collateral and Security Agreement.

               

               

               

            
	
               

               

              The "Maturity Date"
      is the date upon which the Principal Sum of this Note, as well as any
      unpaid interest shall be due and payable, and that date shall be:

               

               

               

            	
              

               

              January 15,
      2012

               

            
	
               

               

              The “Prepayment
      Terms” shall be:

               

            	
               

               

              Prepayment is
      permitted at any time by payment in the form of  any of the
      following: (1) cash, or (2) other negotiated form of payment mutually
      agreed to in writing, or (3) by surrender of the Convertible Promissory
      Note Document B-01152008, or (4) by surrender of the of the Collateral or
      Security with which this Promissory Note is secured.

               

            

    

    ARTICLE 1 PAYMENT-RELATED PROVISIONS

     

     

     

    1.1
Loan Payment Schedule. While no principal or interest payments are required
until the Maturity Date, unless otherwise adjusted by Writer with written notice
to Holder, or unless otherwise prepaid as set forth above whereby prepayment is
permitted at any time by payment of cash, or other mutually agreed and
negotiated payment, or by surrender of the Convertible Promissory Note Document
B-01152008, or by surrender of the Collateral or Security related hereto;
provided that all conversions are honored as set forth under Convertible
Promissory Note Document B-01152008 and provided that Rule 144 is available to
remove the restrictive legend from those shares obtained in those conversions
and such that the shares effectively become immediately freely tradable, Writer
will plan to make monthly payments of $100,000 beginning 210 days from the
execution of this agreement.  Writer reserves the right to (1) make
payments prior to 210 days from the execution of this agreement, and (2) to make
payments in amounts in excess of $100,000, and (3) to adjust this payment
schedule and payment amounts with written notice to Holder.

     

     

     

               
1.2 Interest Rate.  Interest payable on this Note will accrue interest at
the Interest Rate and shall be applied to the Principal Sum.

     

     

     

    1.3
Application of Payment.  Unless otherwise specified in writing by Writer,
all payments made on this Note will be first applied to the Principal Sum.

     

     

     

               

     

     

     

    ARTICLE 2 MISCELLANEOUS 

     

     

     

               
2.1. Notices. Any notice required or permitted hereunder must be in writing and
be either personally served, sent by facsimile or email transmission, or sent by
overnight courier.  Notices will be deemed effectively delivered at the
time of transmission if by facsimile or email, and if by overnight courier the
business day after such notice is deposited with the courier service for
delivery.

     

     

     

               
2.2. Amendment Provision. The term "Note" and all reference thereto, as used
throughout this instrument, means this instrument as originally executed, or if
later amended or supplemented, then as so amended or supplemented. 

     

     

     

               
2.3. Assignability. This Note will be binding upon the Writer and its successors
and permitted assigns, and will inure to the benefit of the Holder and its
successors and permitted assigns, and may be assigned by the Holder only with
written consent by Writer. 

     

     

     

               
2.4. Governing Law. This Note will be governed by, and construed and enforced in
accordance, with the laws of the State of Florida, without regard to the
conflict of laws principles thereof. 

     

     

     

               
2.5. Maximum Payments. Nothing contained herein may be deemed to establish or
require the payment of a rate of interest or other charges in excess of the
maximum permitted by applicable law. In the event that the rate of interest
required to be paid or other charges hereunder exceed the maximum permitted by
such law, any payments in excess of such maximum will be credited against
amounts owed by the Borrower to the Holder and thus refunded to the Writer.

     

     

     

    2.6.
Attorney Fees. In the event any attorney is employed by either party to this
Note with regard to any legal or equitable action, arbitration or other
proceeding brought by such party for the enforcement of this Note or because of
an alleged dispute, breach, default or misrepresentation in connection with any
of the provisions of this Note, the prevailing party in such proceeding will be
entitled to recover from the other party reasonable attorneys' fees and other
costs and expenses incurred, in addition to any other relief to which the
prevailing party may be entitled. 

     

     

     

    2.7.
No Public Announcement. No public announcement may be made regarding this Note,
payments, or conversions without written permission by both Writer and
Holder.

     

     

     

    2.8.
Transfer, Pledge, Sale, Collateral, Offer.  Holder may not transfer,
pledge, sell, use as collateral, offer, or hypothecate this Note to any third
party without written approval from Writer.  

     

     

     

    2.9.
Effective Date.  This Note will become effective only upon occurrence of
the three following events: the Effective Date of January 15, 2008 has been
reached, execution by both parties, delivery of Document B-01152008 by the
Writer.  

     

     

     

     

     

     

     

     

     

     

     

    HOLDER:                                                     
           
WRITER:

     

                                                   

     

     

     

               
                                                                       
/s/ JMJ Financial

     

    ____________________________
                          
____________________________ 

     

    Frank
Greico               
                                               
JMJ Financial / Its Principal

     

    CEO & CFO

     

    Auriga Laboratories
Inc.

     

    
Dated:
________________________                        
Dated: ________________________

     

     

     

     

     

     

     

    EXHIBIT A

     

    COLLATERAL & SECURITY
AGREEMENT

     

     

     

     

     

    1.
Security
Interest. Writer hereby grants to Holder a security interest in the
following described property (“Security” or “Collateral” or “Security
Interest”):

     

     

     

    $1,800,000
WORTH OF A-1 MONEY MARKET FUND

     

     

     

    This
Collateral and security interest will secure the payment and performance of the
Writer’s Secured & Collateralized Promissory Note Document C-01152008 in the
amount of $1,800,000 (one million eight hundred thousand).

     

     

     

     

     

               
2. Warranties and
Covenants of Writer.  Writer makes the following warranties and
covenants to Holder:

     

     

     

    (A) Writer is the
sole owner of the Collateral free from any lien, security interest, or
encumbrance, and Writer will defend the Collateral against all claims and
demands of all parties at any time claiming interest therein.

     

     

     

    (B) This Collateral
has not been pledged, assigned, or hypothecated for any other purpose, and no
financing statement is on file in any local, state, or federal institution,
bureau, government, or public office.

     

     

     

    (C) While the
principal and interest balance of the Secured & Collateralized Promissory
Note Document C-01152008 remains outstanding, Writer will not transfer, sell,
offer to sell, assign, pledge, liquidate, spend, or otherwise transfer to any
party an amount of the Collateral equal to or greater than the outstanding
balance of the Secured & Collateralized Promissory Note Document
C-01152008.

     

     

     

    (D) Writer will pay
promptly when due all taxes, expenses, and assessments upon the
Collateral.

     

     

     

     

     

    3.
Perfection.
Holder has the right, upon its election, to perfect the Collateral and security
and this Collateral and Security Agreement by filing a financing statement or
like instrument with its proper local, state, or federal institution, bureau,
government, or public office.  Holder is encouraged to perfect this
instrument, and Writer will reasonably assist in Holder’s doing so.

     

     

     

     

     

    4.
Remedies Upon
Default. In the event of Writer’s default on the Secured &
Collateralized Promissory Note Document C-01152008, Holder may declare all
obligations secured hereby immediately due and payable and shall have the
remedies of a secured party, including without limitation the right to take
immediate and exclusive possession of the Collateral or any part thereof, or to
obtain a court order to do so; and the Writer must surrender the security and
Collateral to the Holder within 5 (five) business days of receiving written
notice that Holder is taking possession of the Collateral as remedy of
default.

     

     

     

    5.
Normal Course of
Business.  Provided that no default has occurred on the Secured
& Collateralized Promissory Note Document C-01152008, Writer will use and
possess the Collateral in the normal course of business.  Further, Writer
may liquidate, transfer, or exchange the Collateral into another viable
investment vehicle with equal or greater market value, such as liquidation of
money market fund into cash, or liquidation of money market fund for purposes of
investing in other viable investment vehicles including but not limited to
bonds, other money market funds, mutual funds, or stocks.  However, any
liquidation, transfer, or exchange into another viable investment vehicle will
not affect Holder’s security, rights, or claims to the underlying Collateral. At
any time upon Holder’s request, Writer will promptly provide update on the
investment vehicle placement of this Collateral.

     

               

     

               

     

               
6. Termination of
Security.  At the time of prepayment or payoff of the Secured &
Collateralized Promissory Note Document C-01152008 to Holder by Writer, Holder’s
security interest in this Collateral shall automatically terminate.  In the
event that the Collateral and security interest were perfected by Holder as set
forth in Section 3, upon termination of security as set forth in this section 6,
the Holder will withdraw any and all perfection instruments on the collateral
and security within 5 (five) business days.

     

     

     

     

     

    7.
Governing Law.
This agreement will be governed by, and construed and enforced in accordance,
with the laws of the State of Florida, without regard to the conflict of laws
principles thereof. 

     

     

     

     

     

    8.
No Public
Announcement. No public announcement may be made regarding this
Collateral & Security Agreement without written permission by both Writer
and Holder.  In the event that any
securities law requires this document to be filed publicly, all information
regarding description of the Collateral that is considered personal financial
information shall be struck out with X and listed as
follows:

     

     

     

    $1,800,000
WORTH OF A-1 MONEY MARKET FUND

     

     

     

     

     

    9.
Effective
Date.  This agreement will become effective as set forth in Section
2.9 of Secured & Collateralized Promissory Note Document C-01152008.

     

     

     

     

     

     

     

    HOLDER/SECURED
PARTY:                               
WRITER:

     

                                                   

     

     

     

               
                                                                       
/s/ JMJ Financial

     

    ____________________________
                          
____________________________ 

     

    Frank
Greico   
                                                           
JMJ Financial / Its Principal

     

    CEO & CFO

     

    Auriga Laboratories
Inc.

     

    
Dated:
________________________                        
Dated: ________________________ex10_1.htm

    
      

    

    Exhibit
10.1

     

    PROMISSORY
NOTE

     

    
      	
              February
      11, 2008

            	
              $300,000

            

    

    

     

    For Value
Received, Bridgetech Holdings International, Inc., a Delaware corporation
(“Maker”),
hereby promises to pay to Bridgetech China Limited, a British Virgin Island
corporation (“Payee” or
the “Company”),
in lawful money of the United States of America, the principal amount of Three
Hundred Thousand Dollars ($300,000) (the “Principal”)
plus simple interest thereon calculated from the date hereof (the “Issue
Date”) until paid at the rate of eight percent (8%) per annum, payable in
cash.

     

    1.       
     Payments.

     

    1.1           Principal and
Interest.  The entire outstanding Principal (and any accrued
but unpaid interest thereon) shall be due and payable in arrears on the earliest
to occur of (i) 2 days after receipt of the payments due as a result of the
acquisition of Maker resulting in aggregate proceeds of $300,000 to Maker
payable; $100,000 at closing and four payments of  $50,000 per month
beginning with the February 29, 2008 payment , or (ii) the first
anniversary of the Issue Date (the “Maturity
Date”).  Interest on this Note shall commence accruing on the
Issue Date and shall be computed on the basis of a 365-day year and actual days
elapsed until all accrued and unpaid interest is paid in full upon the Maturity
Date.

     

    1.2           Prepayment.  Maker
shall have the right at any time to prepay the indebtedness evidenced by this
Note in whole or in part without penalty, premium or restriction.

     

    2.         
   Unsecured
Obligation.  This Note is an
unsecured obligation of Maker.

     

    3.     
       Event of
Default.

     

    3.1   Events of
Default.  Subject to the cure period set forth in Section 3.2 below,
the occurrence of any of the following shall constitute an “Event of
Default” under this Note:  (a) the failure of Maker to make any
payment of Principal or interest when due under this Note; or (b) the insolvency
or bankruptcy of Maker.

     

    3.2           Acceleration of Principal
and Interest.  Upon occurrence of an Event of Default that has
not been cured within thirty (30) days from the date of written notice by Payee,
Payee may, at Payee’s option and without notice, declare all Principal and
interest due under this Note to be due and payable immediately.  Payee
may waive any default before or after it occurs and may restore this Note in
full effect without impairing the right to declare it due for a subsequent
default.

     

    4.        
    General
Provisions.

     

    4.1           Notices.  All
notices required or permitted hereunder shall be in writing and shall be deemed
effectively given: (i) upon personal delivery to the party to be notified,
(ii) when sent by confirmed telex, facsimile or electronic transmission
(including e-mail) if sent during normal business hours of the recipient, if
not, then on the next business day; (iii) five days after having been sent
by registered or certified mail, return receipt requested, postage prepaid; or
(iv) one day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of
receipt.  All communications shall be sent to the address as set forth
on the signature page hereof or at such other address as such party may
designate by ten days advance written notice to the other parties
hereto.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.2           Severability;
Headings.  In case any provision of this Note shall be invalid,
illegal or unenforceable, validity, legality and enforceability of the remaining
provisions shall not in any way be effected or impaired thereby, unless to do so
would deprive Payee or Maker of a substantial part of its
bargain.  All headings used herein are used for convenience only and
shall not be used to construe or interpret this Note.

     

    4.3           Entire Agreement;
Change.  This Note contains the entire agreement between the
parties hereto superseding and replacing any prior agreement or understanding
relating to the subject matter hereof.  Neither this Note nor any term
hereof may be changed, waived, discharged or terminated orally but only by an
instrument in writing signed by the party against which enforcement of the
change, waiver, discharge or termination is sought.

     

    4.4           Law Governing. This
Agreement shall be governed by and construed in accordance with the laws of the
State of California without regard to the conflict of law provisions
thereof.  The parties agree that any action brought by either party to
interpret or enforce any provision of this Agreement shall be brought in, and
each party agrees to, and does hereby, submit to the exclusive jurisdiction and
venue of, the appropriate state or federal courts located in San Diego,
California.

     

    4.5           Counterparts.  This
Note may be executed by the parties hereto in separate counterparts, each of
which when so executed and delivered shall be an original, but all such
counterparts shall together constitute one and the same
instrument.  Delivery of an executed counterpart of the signature page
to this Note by facsimile shall be as effective as delivery of a manually
executed counterpart of this Note; provided, however, that any party so
delivering an executed counterpart by facsimile shall thereafter promptly
deliver a manually executed counterpart of this Note to the other parties, but
failure to deliver such manually executed counterpart shall not affect the
validity, enforceability and binding effect of this Note.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, Maker has caused this Note to be issued as of the date written
above.

     

    
      	 
      	
              Bridgetech
      Holdings International, INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	 
      
	 
      	
              Name:

            	 
      
	 
      	 
      
	 
      	
              Title:

            	 
      

    

    

     

    So
acknowledged and agreed:

     

    
      	
              Bridgetech
      China Limited

            	 
      
	 	 
	
              By:

            	 
      	 
      
	 
      	 
      
	
              Name:

            	 
      	 
      
	 
      	 
      
	
              Title:

            	 
      	 
      

    

    

    

    [SIGNATURE PAGE FOR PROMISSORY NOTE]

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