f8k0702ex10_ea3megamedia.htm


    


     

     

    THE
SECURITIES EVIDENCED HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT"), OR UNDER ANY APPLICABLE STATE SECURITIES LAW
AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, ANY APPLICABLE STATE
SECURITIES LAWS, OR AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY
THAT SUCH REGISTRATION STATEMENT IS NOT REQUIRED UNDER THE SECURITIES ACT AND
THE RULES AND REGULATIONS PROMULGATED THEREUNDER OR UNDER ANY APPLICABLE STATE
SECURITIES LAWS.

     

    MEGA
MEDIA GROUP, INC.

     

    9%
CONVERTIBLE PROMISSORY NOTE

     

    Amount                      $100,000.00

     

    Issuance
Date            July
1,
2008

     

    
      	
              1)  

            	
              MEGA
      MEDIA GROUP, INC., a Nevada corporation (the "Company") for value
      received, hereby promises to pay to Jaworek Capital LLC. or its registered
      assigns (the "Holder"), on the earlier of: (1) the closing by the Company
      of a private placement offering of its securities, or an underwritten
      public offering by the Company of its securities; or June 30th,
      2009 (the "Maturity Date") at the principal offices of the Company, the
      principal sum of $100,000.00  in
      such coin or currency of the United States of America as at the time of
      payment shall
      be legal tender for the payment of public and private debts and to
      pay interest on the outstanding principal balance at the Maturity Date as
      hereinafter provided.

            


    

     

    
      	
               
      

            	
              i)

            	
              As
      further consideration, the Company grants to the Holder the right to
      purchase 500,000 of the Company's

            


    

     

    
      	
               
      

            	
              common
      shares at $0.11 per share (the "Option"). The common shares underlying the
      option shall have no registration rights, and no "piggy back" registration
      rights. The option shall expire on June 26,
  2009.

            


    

     

    
      	
              2)  

            	
              Interest

            


    

     

    
      	
                             
      i)

            	
              Interest
      accrued during the term of this Note in its entirety on or within five (5)
      calendar days of the Maturity Date. Accrued interest maybe be converted
      into shares based on the same conversion rate as the principal amount as
      listed below in section 2. The Note will bear interest at the rate of nine
      percent (9%) per annum on the principal balance until this Note shall be
      paid in full.

            


    

     

      
3)    Conversion

     

    
      	
              a)        

            	
              Conversion.
      The Holder shall have the right from time to time, and at any time
      on or prior to the Maturity Date to convert all or any part of the
      outstanding and unpaid principal amount of this Note into fully paid and
      non-assessable shares of Common Stock, $.001 par value per share. The
      number of shares of Common Stock to be issued upon each conversion of this
      Note shall be determined by dividing the amount of principal and accrued
      interest to be converted ("Conversion Amount") by the applicable
      Conversion Price then in effect on the date specified in the notice of
      conversion, in the form attached hereto as Exhibit A (the "Notice of
      Conversion"). The Conversion Price shall be equal
      to
      the average closing bid price of the Common Stock (as reported by
      Bloomberg L.P.) on the OTC Bulletin Board for the ten (10)
      trading days prior
      to the date of the Conversion Notice (the "Conversion Date")
      multiplied by .80 provided that the Notice of Conversion is submitted by
      facsimile (or by other means resulting in, or reasonably expected to
      result in, notice) to the Company before 6:00 p.m., New York, New York
      time on such Conversion
Date.

            


    

     

    b)       Conversion
Price Limit. Notwithstanding
the provisions in Section 2(a), the Conversion Price shall not exceed $.40.


     

    c)       Method
of Conversion.

     

    
      	
               
      

            	
               i)
      Mechanics
      of Conversion. This Note may be converted by the Holder in whole or
      in part at any time from time to time after the Note is issued to the
      Holder, by (A) submitting to the Company a Notice of Conversion (by
      facsimile or other reasonable means of communication dispatched on the
      Conversion Date prior to 6:00 p.m., New York, New York time) and (B)
      surrendering this Note at the principal office of the
    Company.

            


    

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     

     

    
      	
               
      

            	
              ii)
      Delivery
      of Common Stock Upon Conversion. Upon receipt by the Company from
      the Holder of a facsimile transmission (or other reasonable means of
      communication) of a Notice of Conversion, the Company shall issue and
      deliver or cause to be issued and delivered to or upon the order of the
      Holder certificates for the Common Stock issuable upon such conversion
      within five (5) business days after such receipt (and, solely in the case
      of conversion of the entire unpaid principal amount hereof, surrender of
      this Note).

            


    

     

    
      
        	
                4)  

              	
                

                  Concerning
      the Shares. The shares of Common Stock issuable upon conversion of
      this Note may not be sold or transferred unless (i) such shares are sold
      pursuant to an effective registration statement under the Act or (ii) the
      Borrower or its transfer agent shall have been furnished with an opinion
      of counsel (which opinion shall be in form, substance and scope customary
      for opinions of counsel in comparable transactions) to the effect that the
      shares to be sold or transferred may be sold or transferred pursuant to an
      exemption from such registration or (iii) such shares are sold or
      transferred pursuant to Rule 144 under the Act (or a successor rule) ("Rule
      144"). Until such time as the shares of Common Stock issuable upon
      conversion of this Debenture have been registered under the Act or
      otherwise may be sold pursuant to Rule 144 without any restriction as to
      the number of securities as of a particular date that can then be
      immediately sold, each certificate for shares of Common Stock issuable
      upon conversion of this Debenture that has not been so included in an
      effective registration statement or that has not been sold pursuant to an
      effective registration statement or an exemption that permits removal of
      the legend, shall bear a legend substantially in the following form, as
      appropriate:

                

              


      

    

     

    "THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED
OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE
CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION
IS NOT REQUIRED UNDER SAID ACT UNLESS SOLD PURSUANT TO RULE 144 OR REGULATION S
UNDER SAID ACT."

     

    The
legend set forth above shall be removed and the Borrower shall issue to the
Holder a new certificate therefor free of any transfer legend if (i) the
Borrower or its transfer agent shall have received an opinion of counsel, in
form, substance and scope customary for opinions of counsel in comparable
transactions, to the effect that a public sale or transfer of such Common Stock
may be made without registration under the Act and the shares are so sold or
transferred, (ii) such Holder provides the Borrower or its transfer agent with
reasonable assurances that the Common Stock issuable upon conversion of this
Debenture (to the extent such securities are deemed to have been acquired on the
same date) can be sold pursuant to Rule 144 or (iii) in the case of the Common
Stock issuable upon conversion of this Debenture, such security is registered
for sale by the Holder under an effective registration statement filed under the
Act or otherwise may be sold pursuant to Rule 144 without any restriction as to
the number of securities as of a particular date that can then be immediately
sold. Nothing in this Debenture shall (i) limit the Borrower's obligation under
the Registration Rights Agreement or (ii) affect in any way the Holder's
obligations to comply with applicable prospectus delivery requirements upon the
resale of the securities referred to herein.

     

    
      
        	
                5)  

              	
                

                  Transfers
      of Note to Comply with the Securities Act of 1933. As Amended. The
      Holder agrees that the Note may not be sold, transferred, pledged,
      hypothecated or otherwise disposed of except as follows: (i) to a person
      who, in the opinion of counsel to the Company, is a person to whom the
      Note may legally be transferred without registration and without the
      delivery of a current prospectus under the Securities Act of 1933, as
      amended, and then only against receipt of any agreement of such person to
      comply with the provisions of this Section 3 with respect to any resale or
      other disposition of the Note; or (ii) to any person upon delivery of a
      prospectus then meeting the requirements of the Securities Act of 1933, as
      amended, relating to such Note and the offering thereof for such sale or
      disposition, and thereafter to all successive
      assignees;

                

              


      

       

      
        
          
            	
                    6)  

                  	
                    

                            
                        Prepayment.
      The principal amount of this Note with interest due thereon to the
      date of prepayment may be prepaid by the Company, in whole or in part,
      without premium or penalty, at any
      time.

                      

                    

                  


          

           

        

      

      
        
          
            	
                    7)  

                  	
                    

                            
                              
                          Events
      of
      Default.

                        

                      

                    

                  


          

           

        

      

    

    
      	
              a)  

            	
              This
      Note shall become and be due and payable upon written demand made by the
      Holder hereof if one or more of the following events, herein called
      "events of default", shall happen and be continuing and such default shall
      not be cured by the Company within 30 days of written notice of such
      default:

            


    

     

    
      	
              b)  

            	
              Default
      in the payment of the principal and interest on this Note when and as the
      same shall become due and payable, whether by acceleration or
      otherwise;

            


    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    
      	
              c)  

            	
              Application
      for, or consent to, the appointment of a receiver, trustee or liquidator
      of the Company or of its property;

            


    

     

     d)  
General
assignment by the Company for the benefit of creditors;

     

    
      	
              e)  

            	
              Filing
      by the Company of voluntary petition in bankruptcy or a petition or an
      answer seeking reorganization or an arrangement with creditors;
      or

            


    

     

    
      	
              f)  

            	
              Entering
      against the Company of a court order approving a petition filed against it
      under the Federal bankruptcy laws, which order shall not have been vacated
      or set aside or otherwise terminated within 120
  days.

            


    

     

    
      	
              g)  

            	
              Upon
      receipt by the Company of evidence reasonably satisfactory to it of the
      loss, theft, destruction or mutilation of this Note, and (in the case of
      loss, theft or destruction) of reasonably satisfactory indemnification,
      and upon surrender and cancellation of this Note, if mutilated, the
      Company shall execute and deliver a new Note of like tenor and date. Any
      such new Note executed and delivered shall constitute an additional
      contractual obligation on the part of the Company, whether or not this
      Note so lost, stolen, destroyed or mutilated shall be at any time
      enforceable by anyone.

            


    

     

    
      	
              h)  

            	
              The
      Common Stock shall cease to be quoted for trading or listed for trading on
      either the Nasdaq OTC Bulletin Board ("OTC"), Nasdaq Capital Market, New
      York Stock Exchange, American Stock Exchange or the Nasdaq National Market
      (each, a "Subsequent
      Market") and shall not again be quoted or listed for trading
      thereon within five (5) Trading Days of such
  delisting;

            


    

     

    
      	
                       
      i)

            	
              The
      Company shall fail for any reason to deliver Common Stock certificates to
      a Holder prior to the fifth (5th) Trading
      Day after a Conversion Date or the Company shall provide notice to the
      Holder, including by way of public announcement, at any time, of its
      intention not to comply with requests for conversions of this Note in
      accordance with the terms hereof;

            


    

     

      
8)   Miscellaneous

     

    
      	
              a)  

            	
              The
      Company may consider and treat the person in whose name this Note shall be
      registered as the absolute owner thereof for all purposes whatsoever
      (whether or not this Note shall be overdue) and the Company shall not be
      affected by any notice to the contrary. The registered owner of this Note
      shall have the right to transfer it by assignment, subject to the
      provisions contained herein, and the transferee thereof shall, upon his
      registration as owner of this Note, become vested with all the powers and
      rights of the transferor. Registration of any new owner shall take place
      upon presentation of this Note to the Company at its principal offices. In
      case of transfer by operation of law, the transferee agrees to notify the
      Company of such transfer and of his address, and to submit appropriate
      evidence regarding the transfer so that this Note may be registered in the
      name of the transferee. This Note is transferable only on the books of the
      Company by the Holder hereof, in person or by his attorney, on the
      surrender hereof, duly endorsed. Communications sent to any registered
      owner shall be effective as against all holders or transferees of the Note
      not registered at the time of sending the
  communication.

            


    

     

    
      	
              b)  

            	
              Upon
      receipt by the Company of evidence reasonably satisfactory to it of the
      loss, theft, destruction or mutilation of this Note, and (in the case of
      loss, theft or destruction) of reasonably satisfactory indemnification,
      and upon surrender and cancellation of this Note, if mutilated, the
      Company shall execute and deliver a new Note of like tenor and date. Any
      such new Note executed and delivered shall constitute an additional
      contractual obligation on the part of the Company, whether or not this
      Note so lost, stolen, destroyed or mutilated shall be at any time
      enforceable by anyone.

            


    

     

    c)  This
Note shall be construed and enforced in accordance with the laws of the State of
Nevada.

     

    (Signature
Page Follows)

     

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

        IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed as of the
Issuance Date set out above.

     

    
      	 
      


    

    
      	
              MEGA
      MEDIA, INC

            
	 


    

    
      	
              By: /s/
      Alex Shvarts

              Name:
      Alex Shvarts

              Title:
      CEO

            


    

     

     

    Agreed
and accepted

     

    /s/
Michal Jaworek

    Michal
Jaworek

     

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    EXHIBIT
A

    MEGA
MEDIA GROUP, INC.

    CONVERSION
NOTICE

     

    Reference
is made to the Convertible Note (the "Note")
issued to the undersigned by MEGA MEDIA GROUP INC. (the "Company").
In accordance with and pursuant to the Note, the undersigned hereby
elects to convert the Conversion Amount (as defined in the Note) of the Note
indicated below into shares of Common Stock par value $0.001 per share (the
"Common
Stock") of the Company, as of the date specified below.

     

     

    
       

       

      
        	    Date
      of Conversion:	 	 
	    Aggregate
      Conversion Amount to be converted:	 	 
	 	 	 
	Please
      confirm the following information:	 	 
	    Conversion
      Price:	 	 
	    Number
      of shares of Common Stock to be
    issued:	 	 
	 	 	 
	Please
      issue the Common Stock into which the Note is being converted in the
      following name and to the following address:
	
                    Issue
      to:

              	 	 
	 	 	 
	 	 	 
	    Facsimile
      Number:	 	 
	    Authorization:	 	 
	        By:	 	 
	        Title:	 	 
	        Dated:	 	 
	    Account
      Number:	 	 
	    (if
      electronic book entry transfer)	 	 
	    Transaction
      Code Number:	 	 
	    (if
      electronic book entry transfer)	 	 


      

       

       

    

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Mega
Media Group, Inc

     

    BOARD
RESOLUTION APPROVING BORROWING

     

    WHEREAS,
this
Board of
Directors deems it desirable and in the best interests of this
corporation to borrow One Hundred Thousand dollars ($100,000.00) (the
"Loan") from Jaworek Capital LLC.("Jaworek").

     

    NOW,
THEREFORE, BE
IT RESOLVED, that this corporation borrow on or about July 1, 2008 the
amount of One Hundred Thousand dollars ($100,000.00) from Jaworek Capital LLC;
that the annual interest rate of the Loan shall be 9%; that the Loan shall
mature June 30th,
2009; that the Loan shall be due and payable in full at the end of such period;
and that the Loan shall be evidenced by a promissory note substantially in the
form attached hereto as Exhibit A (the "Note"). The corporation will further
issue an option to Jaworek Capital LLC to purchase 500,000 shares of its common
stock at a price of eleven cents ($0.11).

     

    RESOLVED
FURTHER, that the President or the Chief Financial Officer of this corporation
are hereby authorized, directed and empowered to execute, for and on behalf of
this corporation and in its name, any and all documents required in connection
with the Loan, including but not limited to the Note, substantially in the form
attached hereto as Exhibit A, with such changes thereto as the person executing
same shall approve, such approval to be conclusively evidenced by the execution
and delivery thereof.

     

    RESOLVED,
that the officers of this corporation are, and each acting alone is, hereby
authorized to do and perform any and all such acts, including execution of any
and all documents and certificates, as such officers shall deem necessary or
advisable, to carry out the purposes and intent of the foregoing
resolutions.

     

    RESOLVED
FURTHER, that any actions taken by such officers prior to the date of the
foregoing resolutions adopted hereby that are within the authority conferred
thereby are hereby ratified, confi iled and approved as the acts and deeds of
this corporation.

    Approved1,
2008 by:

     

    
       

       

      
        	/s/Aleksandr
      Shvarts	                             
      
	Aleksandr
      Shvarts	Elan
    Kaufman
	 	 
	/s/ Lev
      Paukman                                      
      	                                       
      
	Lev
Paukman	Kurt
      Dalmata
	 	 


      

       

       

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Mega
Media Group, Inc

     

    BOARD
RESOLUTION APPROVING BORROWING

     

    WHEREAS, this Board of
Directors deems it desirable and in the best interests of this corporation to
borrow One Hundred Thousand dollars ($100,000.00) (the "Loan") from Jaworek
Capital
LLC.("Jaworek").

     

    NOW, THEREFORE, BE IT
RESOLVED, that this corporation borrow on or about July 1, 2008
the amount of One Hundred Thousand dollars ($100,000.00) from Jaworek
Capitial
LLC; that the annual interest rate of the Loan shall be 9%; that the Loan shall
mature June 30 , 2009; that the Loan shall be due and payable in full at the end
of such period; and that the Loan shall be evidenced by a promissory note
substantially in the form attached hereto as Exhibit A (the "Note"). The
corporation will further issue an option to Jaworek Capital LLC to purchase
500,000 shares of its
common stock at a price of
eleven cents ($0.11).

     

    RESOLVED
FURTHER, that the President or the Chief Financial Officer of this
corporation are hereby authorized,
directed and empowered to execute,
for and on behalf of this corporation and in its
name, any and all documents required in connection with the Loan,
including but not limited to the Note, substantially in the form attached hereto
as Exhibit A, with such changes thereto as the person executing same shall
approve, such approval to be conclusively evidenced by the execution and
delivery thereof.

     

    RESOLVED,
that the officers of this corporation are, and each acting alone is, hereby
authorized to do and perform any and all such acts, including execution of any
and all documents and certificates, as such officers shall deem necessary or
advisable, to carry out the purposes and intent of the foregoing
resolutions.

     

    RESOLVED
FURTHER, that any actions taken by such officers prior to the date of the
foregoing
resolutions adopted hereby that are within the authority conferred
thereby are hereby ratified, confirmed and approved as the acts and deeds of
this corporation.

    Approved
July 1, 2008 by:

     

     

     

    
      	                                         
      	/s/Elan
      Kaufman
	Aleksandr
      Shvarts	Elan
    Kaufman
	 	 
	                                        
                                            
      	                                       
      
	Lev
Paukman	Kurt
      Dalmata