GLOBAL PAYMENT TECHNOLOGIES INC
EX-10.2
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<TYPE>EX-10
<SEQUENCE>3
<FILENAME>secutermnote.htm
<DESCRIPTION>EX-10.2
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        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt" align="right"><b><font size="2">Exhibit
        10.2</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: center">
        <u><b><font size="2">SECURED TERM NOTE</font></b></u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">FOR VALUE RECEIVED, GLOBAL PAYMENT TECHNOLOGIES, INC., a Delaware
        corporation (the
        &ldquo;</font><b><font size="2">Borrower</font></b><font size="2">&rdquo;), hereby promises
        to pay to GLOBAL PAYMENT TECHNOLOGIES AUSTRALIA PTY. LTD., an Australian company (the
        &ldquo;</font><b><font size="2">Holder</font></b><font size="2">&rdquo;) the sum of FOUR
        HUNDRED FORTY THOUSAND 00/100 UNITED STATES DOLLARS (US$440,000) (the
        &ldquo;</font><b><font size="2">Principal Amount</font></b><font size="2">&rdquo;),
        together with accrued and unpaid interest hereon, on January 15, 2009 (the
        &ldquo;</font><b><font size="2">Maturity Date</font></b><font size="2">&rdquo;) if not
        sooner paid. Capitalized terms not defined herein shall have the meaning ascribed to them
        in the Security Agreement between the parties of even date with this Note.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <font size="2"><strong>ARTICLE I</strong></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: center">
        <b><font size="2">INTEREST &amp; PAYMENT</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">1.1</font><font size="1">&nbsp;&nbsp;&nbsp;</font>
        <u><font size="2">Interest and Principal</font></u><font size="2">. Subject to Section 3.1
        hereof, interest payable on this Note shall accrue at a rate per annum (the
        &ldquo;</font><b><font size="2">Interest Rate</font></b><font size="2">&rdquo;) equal to
        the &ldquo;prime rate&rdquo; published in</font> <u><font size="2">The Wall Street
        Journal</font></u> <font size="2">from time to time, plus three percent (3.0%). The prime
        rate shall be increased or decreased as the case may be for each increase or decrease in
        the prime rate in an amount equal to such increase or decrease in the prime rate; each
        change to be effective as of the day of the change in such rate. The Interest Rate shall
        not be less than nine percent (9.00%). Interest only shall be payable monthly in arrears
        commencing on February 15, 2008, and on the first day of each consecutive calendar month
        thereafter (each, a &ldquo;</font><b><font size="2">Repayment
        Date</font></b><font size="2">&rdquo;), and on the Maturity Date, whether by acceleration
        or otherwise. On the Maturity Date, the Principal Amount and all accrued but unpaid
        interest shall be due and payable in full.&nbsp; Upon an Event of Default, and so long as
        that Event of Default continues, an interest rate of eighteen percent (18.00%) per annum
        shall apply. All payments hereunder shall be applied first to the payment of interest and
        then to the outstanding Principal Amount. The Note is issued pursuant to the Securities
        Purchase Agreement dated as of this date by and among Holder, Exfair Pty. Ltd. and the
        Company (the
        &ldquo;</font><b><font size="2">Agreement</font></b><font size="2">&rdquo;).</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
        <u><font size="2">Payment Date</font></u><font size="2">. If any payment of the Principal
        Amount or interest becomes due on a Saturday, Sunday or any other day which is not a
        business day, such payment shall be deferred to, and shall be payable on, the next business
        day.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
        <u><font size="2">Prepayment</font></u><font size="2">. This Note may be prepaid in whole
        or in part without premium or penalty, any time.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">1.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> <u><font size="2">Use
        of Proceeds</font></u><font size="2">. The Company shall notify Holder in writing of any
        outstanding expense or payment to be paid by the Company following the date of this Note in
        excess of $1,000. The Company shall not make any such payment in excess of $1,000 or
        payments in the aggregate of more than $5,000 without Holder&rsquo;s prior written
        approval. The Company agrees that any breach of this Section 1.4 constitutes a material
        breach under this Note.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
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        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <font size="2"><strong>ARTICLE II</strong></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: center">
        <b><font size="2">SECURED INDEBTEDNESS; EVENTS OF DEFAULT</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
        <u><font size="2">Secured Indebtedness</font></u><font size="2">. The indebtedness
        represented by this Note is secured pursuant to the Security Agreement of even date hereof
        in favor of Holder.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
        <u><font size="2">Events of Default</font></u><font size="2">. The entire unpaid principal
        amount and any interest accrued thereafter, if any, of this Note shall forthwith become
        and, at Holder&rsquo;s option, be due and payable if any one or more the following events
        (&ldquo;</font><u><b><font size="2">Events of Default</font></b></u><font size="2">&rdquo;)
        shall have occurred (for any reason whatsoever and whether such happening shall be
        voluntary or involuntary or be affected or come about by operation of law pursuant to or in
        compliance with any judgment, decree, or order of any court or any order, rule or
        regulation of any administrative or governmental body) and be continuing. An Event of
        Default shall occur:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 1in; TEXT-ALIGN: left">
        <font size="2">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if failure shall be made
        in the payment of the principal on the Note when and as the same shall become due and such
        failure shall continue for a period of five (5) business days after such payment is
        due;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 1in; TEXT-ALIGN: left">
        <font size="2">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if the Company shall violate
        or breach any of the representations, warranties and covenants contained in the Note or the
        Agreement and such violation or breach shall continue for thirty (30) days after written
        notice of such breach shall been received by the Company from the Holder (except for any
        violation or breach of Section 1.4 which shall immediately constitute an Event of
        Default);</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 1in; TEXT-ALIGN: left">
        <font size="2">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if the Company or any Significant
        Subsidiary (which term shall mean any subsidiary of the Company which would be considered a
        significant subsidiary, as defined in Rule 1-02 of Regulation S-X of the SEC) (with the
        consent of either Prior Director) shall consent to the appointment of a receiver, trustee
        or liquidator of itself or of a substantial part of its property, or shall admit in writing
        its inability to pay its debts generally as they become due, or shall make a general
        assignment for the benefit of creditors, or shall file a voluntary petition in bankruptcy,
        or an answer seeking reorganization in a proceeding under any bankruptcy law (as now or
        hereafter in effect) or an answer admitting the material allegations of a petition filed
        against the Company or any Significant Subsidiary, in any such proceeding, or shall by
        voluntary petition, answer or consent, seek relief under the provisions of any other now
        existing or future bankruptcy or other similar law providing for the reorganization or
        winding up of corporations, or an arrangement, composition, extension or adjustment with
        its or their creditors, or shall, in a petition in bankruptcy filed against it or them be
        adjudicated a bankrupt, or the Company or any Significant Subsidiary or their directors or
        a majority of its stockholders shall vote to dissolve or liquidate the Company or any
        Significant Subsidiary other than a liquidation involving a transfer of assets from a
        Subsidiary to the Company or another Subsidiary; or</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
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        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 1in; TEXT-ALIGN: left">
        <font size="2">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if an involuntary petition shall be
        filed against the Company or any Significant Subsidiary seeking relief against the Company
        or any Significant Subsidiary under any now existing or future bankruptcy, insolvency or
        other similar law providing for the reorganization or winding up of corporations, or an
        arrangement, composition, extension or adjustment with its or their creditors, and such
        petition shall not be vacated or set aside within thirty (30) days from the filing thereof;
        or</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 1in; TEXT-ALIGN: left">
        <font size="2">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if a court of competent
        jurisdiction shall enter an order, judgment or decree appointing, without consent of the
        Company or any Significant Subsidiary, a receiver, trustee or liquidator of the Company or
        any Significant Subsidiary, or of all or any substantial part of the property of the
        Company or any Significant Subsidiary, or approving a petition filed against the Company or
        any Significant Subsidiary seeking a reorganization or arrangement of the Company or any
        Significant Subsidiary under the Federal bankruptcy laws or any other applicable law or
        statute of the United States of America or any state thereof, or any substantial part of
        the property of the Company or any Significant Subsidiary shall be sequestered; and such
        order, judgment or decree shall not be vacated or set aside within thirty (30) days from
        the date of the entry thereof;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 1in; TEXT-ALIGN: left">
        <font size="2">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if, under the provisions of any law
        for the relief or aid of debtors, any court of competent jurisdiction shall assume custody
        or control of the Company or any Significant Subsidiary or of all or any substantial part
        of the property of the Company or any Significant Subsidiary and such custody or control
        shall not be terminated within thirty (30) days from the date of assumption of such custody
        or control;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 1in; TEXT-ALIGN: left">
        <font size="2">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if the Company fails to file its Annual
        Report on Form 10-K with the Securities and Exchange Commission via EDGAR for its fiscal
        year ended September 30, 2007 which shall include audited financial statements in
        compliance with federal securities laws, on or prior to January 22, 2008.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Upon the
        occurrence of an Event of Default, the Holder shall have all of the rights and remedies
        contained in the Security Agreement, including, without limitation, the right, at its
        option, to declare all indebtedness, including principal, accrued interest and all other
        payments under this Note to be immediately due and payable.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <font size="2"><strong>ARTICLE III</strong></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: center">
        <b><font size="2">MISCELLANEOUS</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
        <u><font size="2">Maximum Payments</font></u><font size="2">. Nothing contained herein
        shall 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. Notwithstanding the provisions of
        this Note, if the rate of interest payable hereunder</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
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        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">is limited
        by law, the rate payable hereunder shall be the lesser of: (a)&nbsp;the rate set forth in
        this Note; or (b)&nbsp;the maximum rate permitted by law.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
        <u><font size="2">Waiver of Presentment and Notice</font></u><font size="2">. The Borrower
        and any endorser or other person liable under this Note (if any) expressly agree that (a)
        presentment, notice of dishonor, and protest, notice of protest and any and all demands or
        notices are hereby waived.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
        <u><font size="2">Assignment</font></u><font size="2">. This Note may not be assigned by
        Borrower without the prior written consent of the Holder. A merger or consolidation of the
        Borrower with or into any other corporation or other entity shall be deemed to be an
        assignment hereof, unless immediately after that event the stockholders of the Borrower
        immediately prior to any such transaction are holders of at least a majority of the voting
        power of the surviving corporation or entity, or of the acquiring corporation or entity or
        the entity controlling the surviving corporation.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
        <u><font size="2">Failure or Indulgence Not Waiver</font></u><font size="2">. No delay or
        omission by Holder in exercising any of its rights, remedies, powers or privileges
        hereunder or at law or in equity and no course of dealing between Holder and Borrower or
        any other person shall be deemed a waiver by Holder of any such rights, remedies, powers or
        privileges, even if such delay or omission is continuous or repeated, nor shall any single
        or partial exercise of any right, remedy, power or privilege preclude any other or further
        exercise thereof by Holder or the exercise of any other right, remedy, power or privilege
        by Holder. The rights and remedies of Holder described herein shall be cumulative and not
        restrictive of any other rights or remedies available under any other instrument, at law or
        in equity.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
        <u><font size="2">Notices</font></u><font size="2">. Any notices, consents, waivers or
        other communications required or permitted to be given under the terms of this Note must be
        in writing and will be deemed to have been delivered: (i) upon receipt, when delivered
        personally; or (ii) upon receipt, when sent by facsimile (provided confirmation of
        transmission is mechanically or electronically generated and kept on file by the sending
        party); in each case properly addressed to the party to receive the same. All
        communications shall be sent to the Borrower at the address provided in the Securities
        Purchase Agreement executed in connection herewith, with a copy to Edward Mandell, Esq.,
        Troutman Sanders LLP, 405 Lexington Avenue, New York, New York 10174, facsimile number
        (212) 704-6288, and to the Holder at the address provided in the Securities Purchase
        Agreement for such Holder, with a copy to David Crompton, Church &amp; Grace, Level 3, 65
        Martin Place, Sydney NSW 2000, GPO Box 4327 Sydney NSW 2001 facsimile number +61 2 9221
        6771 and Michael D. Donahue, Esq., Richardson &amp; Patel LLP, 10900 Wilshire Blvd., Suite
        500, Los Angeles, CA. 90024, facsimile number (310) 208-1154, or at such other address as
        the Borrower or the Holder may designate by ten days advance written notice to the other
        parties hereto.</font></p>

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            &nbsp;
        </div>

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        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">3.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2"><u>Successors
        and Assigns</u><font size="2">. Subject to the exceptions specifically set forth in this
        Note, the terms and conditions of this Note shall inure to the benefit of and be binding
        upon the respective executors, administrators, heirs, successors and assigns of the
        parties.</font></font></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">3.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> <u><font size="2">Loss
        or Mutilation of Note</font></u><font size="2">. Upon receipt by Borrower of evidence
        satisfactory to Borrower of the loss, theft, destruction or mutilation of this Note,
        together with indemnity reasonably satisfactory to Borrower, in the case of loss, theft or
        destruction, or the surrender and cancellation of this Note, in the case of mutilation,
        Borrower shall execute and deliver to Holder a new promissory note of like tenor and
        denomination as this Note.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">3.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
        <u><font size="2">GOVERNING LAW; VENUE</font></u><font size="2">. ALL QUESTIONS CONCERNING
        THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE
        GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
        CALIFORNIA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. THE BORROWER AND THE HOLDER
        HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF NEW SOUTH WALES,
        AUSTRALIA AND COURTS HAVING JURISDICTION TO HEAR APPEALS FROM SUCH FOR THE ADJUDICATION OF
        ANY DISPUTE BROUGHT BY THE BORROWER OR THE HOLDER HEREUNDER, IN CONNECTION HEREWITH OR WITH
        ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN, AND HEREBY IRREVOCABLY WAIVE, AND
        AGREE NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING BROUGHT BY THE BORROWER OR THE
        HOLDER, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT,
        OR THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES
        PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION
        OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT
        DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO
        IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT
        SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN
        ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. THE BORROWER AND THE
        HOLDER HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">3.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
        <u><font size="2">Construction</font></u><font size="2">. Each party acknowledges that its
        legal counsel participated in the preparation of this Note and, therefore, stipulates that
        the rule of construction that ambiguities are to be resolved against the drafting party
        shall not be applied in the interpretation of this Note to favor any party against the
        other.</font></p>

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            &nbsp;
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        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2"><font size="2">3.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
        <font size="2"><u>Waiver and Amendment</u><font size="2">. Any term of this Note may be
        amended, waived or modified only with the written consent of Borrower and
        Holder.</font></font></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">3.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> <u><font size="2">Remedies; Costs
        of Collection; Attorneys&rsquo; Fees</font></u><font size="2">. If an Event of Default
        occurs, Borrower agrees to pay, in addition to the Principal Amount and Interest payable
        thereon, attorneys&rsquo; fees and any other costs incurred by Holder in connection with
        its pursuit of its remedies under this Note.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <b><font size="2">IN WITNESS WHEREOF</font></b><font size="2">, Borrower has caused this
        Note to be signed in its name this 15th day of January, 2008.</font></p>

        <div align="left">
            <table style="MARGIN-LEFT: 189.9pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="348" align="center" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="348">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <b><font size="2">GLOBAL PAYMENT TECHNOLOGIES, INC.</font></b></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="348">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <font size="2">By:</font> <u><font size="2">/s/ William
                        McMahon</font></u></p>
                    </td>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <font size="2">Name: William McMahon</font></p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <font size="2">Title: Chief Executive Officer</font></p>
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