Document:

SECURITIES PURCHASE AGREEMENT

      THIS SECURITIES  PURCHASE AGREEMENT (this "Agreement") is made and entered
into as of December 20, 2004, by and between AGU Entertainment Corp., a Delaware
corporation  (the "Company"),  its Subsidiaries The Tube Music Network,  Inc., a
Florida corporation ("Tube Music"), and Pyramid Records  International,  Inc., a
Florida  corporation  ("Pyramid  Records"),   on  the  one  hand,  and  Mitchell
Entertainment  Company,  a Delaware limited liability company (the "Purchaser"),
on the other hand.

                                    RECITALS

      WHEREAS,  each  of  the  Company,  Tube  Music  and  Pyramid  Records  has
authorized the issuance and sale to the Purchaser of a Secured  Convertible Term
Note in the aggregate principal amount of Three Million Dollars ($3,000,000) (as
amended,  modified or supplemented from time to time, the "Note"), which Note is
convertible  into shares of the Company's  common stock,  no par value per share
(the "Common Stock") at an initial conversion price of $1.50 per share of Common
Stock ("Conversion Price");

      WHEREAS,  the Note and all obligations of the Company under this Agreement
and the Related  Agreements  (as  hereinafter  defined) will be secured by (a) a
second  mortgage on real  property to be acquired  concurrently  herewith by the
Company  between 31st Avenue and Summerset Drive in Lauderdale  Lakes,  Florida,
consisting of approximately  22.6 acres (the "Lauderdale Lakes  Property"),  and
(b) a security  interest in  substantially  all of the  remaining  assets of the
Company and its Subsidiaries, all as approved by the Purchaser;

      WHEREAS,  the  Company  wishes  to issue a  warrant  to the  Purchaser  to
purchase  up to  2,000,000  shares of the  Company's  Common  Stock  (subject to
adjustment as set forth therein) in connection with Purchaser's  purchase of the
Note;

      WHEREAS,  Purchaser  desires  to  purchase  the Note and the  Warrant  (as
defined in Section 2) on the terms and conditions set forth herein; and

      WHEREAS,  the  Company  desires to issue and sell the Note and  Warrant to
Purchaser on the terms and conditions set forth herein.

                                    AGREEMENT

      NOW, THEREFORE,  in consideration of the foregoing recitals and the mutual
promises,  representations,  warranties and covenants  hereinafter set forth and
for other good and valuable consideration,  the receipt and sufficiency of which
are hereby  acknowledged,  the parties hereto agree as follows:

<PAGE>

      1.  Agreement to Sell and Purchase.  Pursuant to the terms and  conditions
set forth in this Agreement,  on the Closing Date (as defined in Section 3), the
Company, Tube Music and Pyramid Records agree to sell to the Purchaser,  and the
Purchaser hereby agrees to purchase from such entities,  a Note in the aggregate
principal amount of $3,000,000  convertible in accordance with the terms thereof
into shares of the  Company's  Common Stock (the "Note  Shares").  A form of the
Note is annexed  hereto as Exhibit A. The Note will mature on the Maturity  Date
(as defined in the Note).  Collectively,  the Note and Warrant and Common  Stock
issuable  upon  conversion  of the Note and upon  exercise  of the  Warrant  are
referred to as the "Securities."

      2. Warrant and Fees. On the Closing  Date:

            (a) The Company will issue and deliver to the Purchaser a Warrant to
purchase  up to  2,000,000  shares of  Common  Stock (as  amended,  modified  or
supplemented from time to time, the "Warrant") pursuant to Section 1 hereof. The
Warrant be  delivered  on the  Closing  Date.  A form of the  Warrant is annexed
hereto  as  Exhibit   B.  All  the   representations,   covenants,   warranties,
undertakings,  and  indemnification,  and other rights made or granted to or for
the benefit of the Purchaser by the Company,  Tube Music and Pyramid Records are
hereby  also made and  granted  in  respect  of the  Warrant  and  shares of the
Company's  Common Stock  issuable  upon  exercise of the Warrant  (the  "Warrant
Shares").

            (b) The Company shall pay to Palmetto  Services,  Inc., an affiliate
of the Purchaser, a finders fee in an amount equal to $60,000. The foregoing fee
is referred to herein as the "Closing Payment."

            (c) The Company  shall  reimburse  the  Purchaser  for its costs and
expenses  (including legal fees) incurred in connection with the preparation and
negotiation of this Agreement and the Related  Agreements,  and the consummation
of the transactions  contemplated  thereby,  and expenses incurred in connection
with the  Purchaser's due diligence  review of the Company and its  Subsidiaries
and all related matters.

            (d)  The  Closing  Payment  and  the  expenses  referred  to in  the
preceding clause (c) (net of deposits previously paid by the Company) as well as
Borrower's  counsel  fees  shall  be paid  at  Closing  (as  defined  below)  in
accordance   with  a  disbursement   letter   prepared  by  the  Purchaser  (the
"Disbursement Letter").

      3. Closing, Delivery and Payment.

            3.1 Closing. Subject to the terms and conditions herein, the closing
of the transactions contemplated hereby (the "Closing"), shall take place on the
date  hereof,  at such time or place as the Company and  Purchaser  may mutually
agree (such date is hereinafter referred to as the "Closing Date").

            3.2 Delivery.  At the Closing on the Closing Date, the Company, Tube
Music and Pyramid  Records shall deliver to the  Purchaser,  among other things,
the Note and the Warrant and the Purchaser  shall deliver to the Company,  among
other  things,  the amounts set forth in the  Disbursement  Letter by  certified
funds or wire transfer.

                                       2
<PAGE>

      4.  Representations  and  Warranties of the Company and its  Subsidiaries.
Each of the  Company,  Tube Music and  Pyramid  Records  jointly  and  severally
represents and warrants to the Purchaser as follows (which  representations  and
warranties are supplemented by, and subject to, the Company's  filings under the
Securities  Exchange Act of 1934  (collectively,  the "Exchange  Act  Filings"),
copies of which are available to the Purchaser):

            4.1  Organization,  Good  Standing  and  Qualification.  Each of the
Company and its Subsidiaries is a corporation  duly organized,  validly existing
and in good standing under the laws of its jurisdiction of organization. Each of
the Company and each of its  Subsidiaries  has the corporate power and authority
to own and  operate  its  properties  and  assets,  to execute  and  deliver the
following  to which  it is a party  (i)  this  Agreement,  (ii) the Note and the
Warrant  to be  issued  in  connection  with this  Agreement,  (iii) the  Master
Security  Agreement  dated  as of the  date  hereof  between  the  Company,  its
Subsidiaries and the Purchaser (as amended,  modified or supplemented  from time
to time,  the "Security  Agreement"),  (iv) the  Registration  Rights  Agreement
relating to the  Securities  dated as of the date hereof between the Company and
the  Purchaser  (as amended,  modified or  supplemented  from time to time,  the
"Registration Rights Agreement"),  (v) the Mortgage Deed and Security Agreement,
Assignment  of Rents and Leases dated as of the date hereof  between the Company
and the Purchaser (as amended,  modified or supplemented  from time to time, the
"Mortgage"),  (vi) the  Environmental  Indemnity  Agreement dated as of the date
hereof  between  the  Company  and  the  Purchaser  (as  amended,   modified  or
supplemented from time to time, the  "Environmental  Indemnity  Agreement),  and
(vii) all other  agreements  related to this Agreement and the Note and referred
to herein (the preceding clauses (ii) through (vii), collectively,  the "Related
Agreements"),  to issue and sell the Note and the Note Shares, to issue and sell
the  Warrant  and the  Warrant  Shares,  to  carry  out the  provisions  of this
Agreement and the Related  Agreements  and to carry on its business as presently
conducted.  Each of the Company and its  Subsidiaries  is duly  qualified and is
authorized  to do business  and is in good  standing  as a foreign  corporation,
partnership  or  limited  liability  company,   as  the  case  may  be,  in  all
jurisdictions  in which the nature of its activities and of its properties (both
owned  and  leased)  makes  such  qualification  necessary,   except  for  those
jurisdictions  in which failure to do so has not had, or could not reasonably be
expected to have, individually or in the aggregate, a material adverse effect on
the  business,   assets,   liabilities,   condition  (financial  or  otherwise),
properties,  operations or prospects of the Company and it  Subsidiaries,  taken
individually and as a whole (a "Material Adverse Effect").

            4.2  Subsidiaries.  Each  direct  and  indirect  Subsidiary  of  the
Company,  the  direct  owner of such  Subsidiary  and its  percentage  ownership
thereof,  is set forth on Schedule  4.2.  For the purpose of this  Agreement,  a
"Subsidiary"  of any person or entity  means (i) a  corporation  or other entity
whose shares of stock or other ownership  interests having ordinary voting power
(other than stock or other ownership  interests having such power only by reason
of the happening of a contingency)  to elect a majority of the directors of such
corporation,  or other persons or entities performing similar functions for such
person or entity, are owned, directly or indirectly, by such person or entity or
(ii) a corporation or other entity in which such person or entity owns, directly
or indirectly, more than 50% of the equity interests at such time.

                                       3
<PAGE>

            4.3 Capitalization; Voting Rights.

            (a) The  authorized  capital  stock of the  Company,  as of the date
hereof consists of 110,000,000 shares, of which 100,000,000 are shares of Common
Stock, no par value, 23,355,076 shares of which are issued and outstanding,  and
10,000,000 are shares of preferred stock, no par value, of which zero shares are
issued and outstanding.  The authorized  capital stock of each Subsidiary of the
Company is set forth on Schedule 4.3.

            (b) Except as disclosed on Schedule 4.3,  other than: (i) the shares
reserved for issuance  under the Company's  stock option plans;  and (ii) shares
which may be granted  pursuant to this  Agreement  and the  Related  Agreements,
there are no outstanding  options,  warrants,  rights  (including  conversion or
preemptive rights and rights of first refusal), proxy or stockholder agreements,
or arrangements  or agreements of any kind for the purchase or acquisition  from
the Company of any of its  securities.  Except as  disclosed  on  Schedule  4.3,
neither the offer,  issuance or sale of any of the Note or the  Warrant,  or the
issuance of any of the Note Shares or Warrant  Shares,  nor the  consummation of
any  transaction  contemplated  hereby  will  result in a change in the price or
number of any  securities of the Company  outstanding,  under  anti-dilution  or
other similar provisions contained in or affecting any such securities.

            (c) All issued and outstanding shares of the Company's Common Stock:
(i) have  been  duly  authorized  and  validly  issued  and are  fully  paid and
nonassessable;  and (ii) were issued in compliance with all applicable state and
federal laws concerning the issuance of securities.

            (d) The rights,  preferences,  privileges  and  restrictions  of the
shares  of the  Common  Stock  are as stated  in the  Company's  Certificate  of
Incorporation (the "Charter"). The Note Shares and Warrant Shares have been duly
and validly reserved for issuance. When issued in compliance with the provisions
of this  Agreement and the Company's  Charter,  the  Securities  will be validly
issued,  fully  paid  and  nonassessable,  and  will  be free  of any  liens  or
encumbrances;   provided,  however,  that  the  Securities  may  be  subject  to
restrictions on transfer under state and/or federal securities laws as set forth
herein or as otherwise required by such laws at the time a transfer is proposed.

            4.4 Authorization;  Binding Obligations. All corporate action on the
part of the  Company  and each of its  Subsidiaries  (including  the  respective
officers and directors)  necessary for the  authorization  of this Agreement and
the Related  Agreements,  the  performance of all obligations of the Company and
its Subsidiaries hereunder and under the other Related Agreements at the Closing
and, the authorization,  sale, issuance and delivery of the Note and Warrant has
been taken or will be taken prior to the Closing. This Agreement and the Related
Agreements, when executed and delivered and to the extent it is a party thereto,
will  be  valid  and  binding  obligations  of  each  of  the  Company  and  its
Subsidiaries,  enforceable  against  each such person in  accordance  with their
terms, except:

                                       4
<PAGE>

            (a) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium  or  other  laws of  general  application  affecting  enforcement  of
creditors' rights; and

            (b) general  principles of equity that restrict the  availability of
equitable or legal remedies.

The sale of the Note and the subsequent  conversion of the Note into Note Shares
are not and will not be  subject  to any  preemptive  rights  or rights of first
refusal that have not been properly waived or complied with. The issuance of the
Warrant and the  subsequent  exercise of the Warrant for Warrant  Shares are not
and will not be subject to any preemptive rights or rights of first refusal that
have not been properly  waived or complied  with.

            4.5 Liabilities. Neither the Company nor any of its Subsidiaries has
any contingent liabilities,  except current liabilities incurred in the ordinary
course of business and liabilities disclosed in any Exchange Act Filings.

            4.6  Agreements;  Action.  Except as set forth on Schedule 4.6 or as
disclosed in any Exchange Act Filings:

            (a) there are no agreements, understandings, instruments, contracts,
proposed transactions,  judgments, orders, writs or decrees to which the Company
or any of its Subsidiaries is a party or by which it is bound which may involve:
(i)  obligations  (contingent  or otherwise)  of, or payments to, the Company in
excess of $100,000  (other  than  obligations  of, or  payments  to, the Company
arising from purchase or sale agreements  entered into in the ordinary course of
business);  or (ii) the  transfer  or license of any  patent,  copyright,  trade
secret or other  proprietary  right to or from the Company  (other than licenses
arising from the  purchase of "off the shelf" or other  standard  products);  or
(iii) provisions restricting the development, manufacture or distribution of the
Company's  products or  services;  or (iv)  indemnification  by the Company with
respect to infringements of proprietary rights.

            (b) Since  December  31,  2003,  neither  the Company nor any of its
Subsidiaries has: (i) declared or paid any dividends,  or authorized or made any
distribution  upon or with respect to any class or series of its capital  stock;
(ii)  incurred  any  indebtedness  for money  borrowed or any other  liabilities
(other than ordinary  course  obligations);  (iii) made any loans or advances to
any person not in excess,  individually or in the aggregate, of $100,000,  other
than ordinary course advances for travel  expenses;  or (iv) sold,  exchanged or
otherwise  disposed  of any of its assets or rights,  other than the sale of its
inventory in the ordinary course of business.

            4.7 Obligations to Related Parties.  Except as set forth on Schedule
4.7,  there are no  obligations  of the  Company or any of its  Subsidiaries  to
officers,  directors,  stockholders  or  employees  of the Company or any of its
Subsidiaries other than:

            (a) for  payment  of  salary in the  ordinary  course  for  services
rendered;

                                       5
<PAGE>

            (b) reimbursement for reasonable  expenses incurred on behalf of the
Company and its Subsidiaries;

            (c) for other standard employee benefits made generally available to
all employees  (including stock option  agreements  outstanding  under any stock
option plan approved by the Board of Directors of the Company); and

            (d)  obligations  listed  in  the  Company's  financial   statements
delivered to the Purchaser or disclosed in any of its Exchange Act Filings.

Except as described  above or set forth on Schedule  4.7,  none of the officers,
directors  or,  to the  best  of  the  Company's  knowledge,  key  employees  or
stockholders  of the Company or any  members of their  immediate  families,  are
indebted to the Company,  individually or in the aggregate, in excess of $50,000
or have any direct or indirect  ownership  interest  in any firm or  corporation
with which the  Company is  affiliated  or with which the Company has a business
relationship,  or any firm or corporation which competes with the Company, other
than passive  investments in publicly traded companies  (representing  less than
one percent (1%) of such company) which may compete with the Company.  Except as
described  above, no officer,  director or  stockholder,  or any member of their
immediate  families,  is,  directly or  indirectly,  interested  in any material
contract  with  the  Company  and  no  agreements,  understandings  or  proposed
transactions are contemplated between the Company and any such person. Except as
set forth on Schedule  4.7, the Company is not a guarantor or  indemnitor of any
indebtedness of any other person, firm or corporation.

            4.8 Changes.  Since  December  31, 2003,  except as disclosed in any
Exchange  Act  Filing  or in any  Schedule  to this  Agreement  or to any of the
Related Agreements,  there has not been:

            (a) any  change  in the  business,  assets,  liabilities,  condition
(financial or otherwise),  properties, operations or prospects of the Company or
any of its  Subsidiaries,  which  individually  or in the  aggregate has had, or
could  reasonably  be  expected to have,  individually  or in the  aggregate,  a
Material Adverse Effect;

            (b) any  resignation or termination of any officer,  key employee or
group of employees of the Company or any of its Subsidiaries;

            (c) any material change,  except in the ordinary course of business,
in the contingent  obligations of the Company or any of its  Subsidiaries by way
of guaranty, endorsement, indemnity, warranty or otherwise;

            (d) any  damage,  destruction  or loss,  whether  or not  covered by
insurance,  has had, or could reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect;

            (e)  any  waiver  by the  Company  or any of its  Subsidiaries  of a
valuable right or of a material debt owed to it;

                                       6
<PAGE>

            (f) any direct or  indirect  loans made by the Company or any of its
Subsidiaries to any stockholder, employee, officer or director of the Company or
any of its  Subsidiaries,  other than  advances  made in the ordinary  course of
business;

            (g) any material change in any compensation arrangement or agreement
with any employee, officer, director or stockholder of the Company or any of its
Subsidiaries;

            (h) any declaration or payment of any dividend or other distribution
of the assets of the Company or any of its Subsidiaries;

            (i) any labor organization activity related to the Company or any of
its Subsidiaries;

            (j)  any  debt,   obligation  or  liability  incurred,   assumed  or
guaranteed  by  the  Company  or  any  of its  Subsidiaries,  except  those  for
immaterial amounts and for current  liabilities  incurred in the ordinary course
of business;

            (k) any sale,  assignment  or transfer of any  patents,  trademarks,
copyrights, trade secrets or other intangible assets owned by the Company or any
of its Subsidiaries;

            (l) any change in any material agreement to which the Company or any
of its  Subsidiaries  is a party or by which  either  the  Company or any of its
Subsidiaries is bound which either  individually or in the aggregate has had, or
could  reasonably  be  expected to have,  individually  or in the  aggregate,  a
Material Adverse Effect;

            (m) any other  event or  condition  of any  character  that,  either
individually  or in the aggregate,  has had, or could  reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect; or

            (n) any  arrangement  or  commitment  by the  Company  or any of its
Subsidiaries  to do any of the acts  described  in  subsection  (a)  through (m)
above.

            4.9 Title to Properties and Assets;  Liens, Etc. Except as set forth
on  Schedule  4.9,  each  of the  Company  and its  Subsidiaries  has  good  and
marketable  title to its properties and assets,  and good title to its leasehold
estates, in each case subject to no mortgage,  pledge, lien, lease,  encumbrance
or charge,  other than:

            (a) those resulting from taxes which have not yet become delinquent;

            (b) minor liens and  encumbrances  which do not  materially  detract
from the  value  of the  property  subject  thereto  or  materially  impair  the
operations of the Company or any of its Subsidiaries; and

            (c) those  that have  otherwise  arisen  in the  ordinary  course of
business.

All facilities,  machinery,  equipment,  fixtures, vehicles and other properties
owned,  leased or used by the Company and its Subsidiaries are in good operating
condition  and repair and are  reasonably  fit and usable for the  purposes  for
which they are being used.  Except as set forth on Schedule 4.9, the Company and
its  Subsidiaries  are in  compliance  with all material  terms of each lease or
license  to  which  it is a  party  or is  otherwise  bound.

                                       7
<PAGE>

      4.10 Intellectual Property.

      (a) Except as set forth on Schedule 4.10,  each of the Company and each of
its  Subsidiaries  owns or  possesses  sufficient  legal  rights to all patents,
trademarks,  service marks, trade names,  copyrights,  trade secrets,  licenses,
information  and  other  proprietary  rights  and  processes  necessary  for its
business as now conducted and to the Company's knowledge,  as presently proposed
to be conducted (the "Intellectual Property"), without any known infringement of
the rights of others. There are no outstanding  options,  licenses or agreements
of any kind relating to the foregoing  proprietary rights, nor is the Company or
any of  its  Subsidiaries  bound  by or a  party  to any  options,  licenses  or
agreements of any kind with respect to the patents,  trademarks,  service marks,
trade  names,  copyrights,  trade  secrets,  licenses,   information  and  other
proprietary  rights and  processes of any other person or entity other than such
licenses or agreements  arising from the purchase of "off the shelf" or standard
products.

      (b) Except as set forth on Schedule  4.10,  neither the Company nor any of
its  Subsidiaries has received any  communications  alleging that the Company or
any of its  Subsidiaries  has violated any of the patents,  trademarks,  service
marks,  trade names,  copyrights or trade secrets or other proprietary rights of
any other person or entity,  nor is the Company or any of its Subsidiaries aware
of any basis therefor.

      (c) The Company does not believe it is or will be necessary to utilize any
inventions,  trade secrets or  proprietary  information  of any of its employees
made prior to their employment by the Company or any of its Subsidiaries, except
for  inventions,  trade  secrets  or  proprietary  information  that  have  been
rightfully assigned to the Company or any of its Subsidiaries.

      4.11 Compliance with Other Instruments. Neither the Company nor any of its
Subsidiaries  is in  violation  or  default  of (x) any term of its  Charter  or
Bylaws,  or (y) of any  provision  of  any  indebtedness,  mortgage,  indenture,
contract,  agreement or  instrument to which it is party or by which it is bound
or of any judgment,  decree,  order or writ, which violation or default,  in the
case of this  clause  (y),  has had,  or could  reasonably  be expected to have,
either  individually  or in  the  aggregate,  a  Material  Adverse  Effect.  The
execution,  delivery and  performance of and compliance  with this Agreement and
the Related  Agreements to which it is a party, and the issuance and sale of the
Note by the Company and the other Securities by the Company each pursuant hereto
and thereto,  will not, with or without the passage of time or giving of notice,
result in any such  material  violation,  or be in conflict with or constitute a
default  under any such term or  provision,  or  result in the  creation  of any
mortgage,  pledge,  lien,  encumbrance  or charge upon any of the  properties or
assets of the Company or any of its Subsidiaries or the suspension,  revocation,
impairment,  forfeiture or nonrenewal of any permit,  license,  authorization or
approval  applicable to the Company or any of its Subsidiaries,  its business or
operations or any of its assets or properties.

                                       8
<PAGE>

      4.12 Litigation.  Except as set forth on Schedule 4.12 hereto, there is no
action,  suit,   proceeding  or  investigation  pending  or,  to  the  Company's
knowledge,  currently  threatened against the Company or any of its Subsidiaries
that  prevents the Company or any of its  Subsidiaries  from  entering into this
Agreement or the other Related Agreements, or from consummating the transactions
contemplated  hereby  or  thereby,  or which  has had,  or could  reasonably  be
expected to have,  either  individually or in the aggregate,  a Material Adverse
Effect or any change in the current  equity  ownership  of the Company or any of
its Subsidiaries, nor is the Company aware that there is any basis to assert any
of the foregoing.  Neither the Company nor any of its Subsidiaries is a party or
subject to the provisions of any order, writ, injunction,  judgment or decree of
any court or government  agency or  instrumentality.  There is no action,  suit,
proceeding or investigation by the Company or any of its Subsidiaries  currently
pending or which the  Company or any of its  Subsidiaries  intends to  initiate.

      4.13  Tax  Returns  and  Payments.  Each of the  Company  and  each of its
Subsidiaries  has  timely  filed all tax  returns  (federal,  state  and  local)
required  to be filed by it.  All  taxes  shown  to be due and  payable  on such
returns,  any  assessments  imposed,  and all other taxes due and payable by the
Company or any of its  Subsidiaries on or before the Closing,  have been paid or
will be paid prior to the time they  become  delinquent.  Except as set forth on
Schedule 4.13, neither the Company nor any of its Subsidiaries has been advised:

      (a) that any of its  returns,  federal,  state or other,  have been or are
being audited as of the date hereof; or

      (b) of any  deficiency in assessment or proposed  judgment to its federal,
state or other taxes.

The Company has no knowledge of any  liability of any tax to be imposed upon its
properties  or assets as of the date of this  Agreement  that is not  adequately
provided for.

      4.14 Employees.  Except as set forth on Schedule 4.14, neither the Company
nor any of its Subsidiaries has any collective bargaining agreements with any of
its employees.  There is no labor union  organizing  activity pending or, to the
Company's  knowledge,  threatened  with  respect  to the  Company  or any of its
Subsidiaries.  Except as  disclosed  in the  Exchange Act Filings or on Schedule
4.14,  neither the Company nor any of its Subsidiaries is a party to or bound by
any currently effective employment contract,  deferred compensation arrangement,
bonus plan,  incentive plan, profit sharing plan,  retirement agreement or other
employee compensation plan or agreement. To the Company's knowledge, no employee
of the  Company or any of its  Subsidiaries,  nor any  consultant  with whom the
Company or any of its Subsidiaries  has contracted,  is in violation of any term
of any  employment  contract,  proprietary  information  agreement  or any other
agreement  relating to the right of any such individual to be employed by, or to
contract with, the Company or any of its  Subsidiaries  because of the nature of
the business to be conducted by the Company or any of its  Subsidiaries;  and to
the Company's  knowledge  the continued  employment by the Company or any of its
Subsidiaries of its present employees,  and the performance of the Company's and
its Subsidiaries' contracts with its independent contractors, will not result in
any such  violation.  Neither the Company nor any of its  Subsidiaries  is aware
that any of its employees is obligated under any contract  (including  licenses,

                                       9
<PAGE>

covenants or  commitments of any nature) or other  agreement,  or subject to any
judgment,  decree or order of any court or  administrative  agency,  that  would
interfere with their duties to the Company or any of its  Subsidiaries.  Neither
the Company nor any of its  Subsidiaries  has received any notice  alleging that
any such  violation  has  occurred.  Except  for  employees  who have a  current
effective  employment  or  consulting  agreement  with the Company or any of its
Subsidiaries,  no employee of the  Company or any of its  Subsidiaries  has been
granted  the  right  to  continued  employment  by  the  Company  or  any of its
Subsidiaries or to any material compensation following termination of employment
with the  Company or any of its  Subsidiaries.  Except as set forth on  Schedule
4.14,  the  Company  is not aware that any  officer,  key  employee  or group of
employees  intends to terminate his, her or their employment with the Company or
any of its Subsidiaries,  nor does the Company or any of its Subsidiaries have a
present  intention to terminate the  employment of any officer,  key employee or
group of employees.

      4.15  Registration  Rights  and  Voting  Rights.  Except  as set  forth on
Schedule  4.15 and except as  disclosed  in Exchange  Act  Filings,  neither the
Company nor any of its  Subsidiaries  is  presently  under any  obligation,  and
neither  the  Company nor any of its  Subsidiaries  has  granted any rights,  to
register  any  of  the  Company's  or its  Subsidiaries'  presently  outstanding
securities or any of its securities that may hereafter be issued.  Except as set
forth on Schedule  4.15 and except as disclosed in Exchange Act Filings,  to the
Company's  knowledge,  no stockholder of the Company or any of its  Subsidiaries
has entered into any agreement  with respect to the voting of equity  securities
of the Company or any of its Subsidiaries.

      4.16  Compliance  with Laws;  Permits.  Neither the Company nor any of its
Subsidiaries is in violation of any applicable statute, rule, regulation,  order
or restriction of any domestic or foreign  government or any  instrumentality or
agency thereof in respect of the conduct of its business or the ownership of its
properties  which has had,  or could  reasonably  be  expected  to have,  either
individually or in the aggregate,  a Material  Adverse  Effect.  No governmental
orders,  permissions,  consents,  approvals or authorizations are required to be
obtained  and no  registrations  or  declarations  are  required  to be filed in
connection  with the  execution  and  delivery  of this  Agreement  or any other
Related Agreement and the issuance of any of the Securities,  except such as has
been duly and validly  obtained or filed,  or with  respect to any filings  that
must be made after the Closing, as will be filed in a timely manner. Each of the
Company and its Subsidiaries has all material franchises,  permits, licenses and
any similar  authority  necessary  for the conduct of its  business as now being
conducted  by it,  the  lack  of  which  could,  either  individually  or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

      4.17  Environmental  and Safety  Laws.  Neither the Company nor any of its
Subsidiaries  is in  violation  of any  applicable  statute,  law or  regulation
relating  to the  environment  or  occupational  health and  safety,  and to its
knowledge,  no material  expenditures are or will be required in order to comply
with any such  existing  statute,  law or  regulation.  Except  as set  forth on
Schedule  4.17, no Hazardous  Materials (as defined below) are used or have been
used,  stored,  or disposed of by the Company or any of its  Subsidiaries or, to
the Company's  knowledge,  by any other person or entity on any property  owned,
leased or used by the Company or any of its  Subsidiaries.  For the  purposes of
the preceding sentence, "Hazardous Materials" shall mean:

                                       10
<PAGE>

      (a)  materials  which are listed or otherwise  defined as  "hazardous"  or
"toxic" under any  applicable  local,  state,  federal  and/or  foreign laws and
regulations  that  govern  the  existence  and/or  remedy  of  contamination  on
property,  the protection of the environment from contamination,  the control of
hazardous wastes, or other activities involving hazardous substances,  including
building materials; or

      (b) any petroleum products or nuclear materials.

      4.18 Valid  Offering.  Assuming  the accuracy of the  representations  and
warranties of the Purchaser  contained in this  Agreement,  the offer,  sale and
issuance  of  the  Note  and  Warrant  will  be  exempt  from  the  registration
requirements of the Securities Act of 1933, as amended (the  "Securities  Act"),
and will have been registered or qualified (or are exempt from  registration and
qualification) under the registration,  permit or qualification  requirements of
all applicable state securities laws.

      4.19 Full Disclosure. Each of the Company and each of its Subsidiaries has
provided  the  Purchaser  with all  information  requested  by the  Purchaser in
connection  with its decision to purchase the Note and  Warrant,  including  all
information the Company and its Subsidiaries  believe is reasonably necessary to
make such investment decision.  Neither this Agreement,  the Related Agreements,
the exhibits and schedules  hereto and thereto nor any other document  delivered
by the Company or any of its  Subsidiaries  to  Purchaser  or its  attorneys  or
agents in connection herewith or therewith or with the transactions contemplated
hereby or thereby,  contain any untrue  statement of a material fact nor omit to
state a material fact necessary in order to make the statements contained herein
or  therein,  in  light  of the  circumstances  in  which  they  are  made,  not
misleading.  Any  financial  projections  and other  estimates  provided  to the
Purchaser by the Company or any of its Subsidiaries  were based on the Company's
and its Subsidiaries'  experience in the industry and on assumptions of fact and
opinion as to future events which the Company or any of its Subsidiaries, at the
date  of  the  issuance  of  such  projections  or  estimates,  believed  to  be
reasonable.

      4.20  Insurance.  Each of the  Company  and each of its  Subsidiaries  has
general commercial, product liability, fire and casualty insurance policies with
coverages  which the Company  believes are  customary  for  companies  similarly
situated to the Company and its  Subsidiaries  in the same or similar  business.

      4.21 SEC Reports.  Except as set forth on Schedule  4.21,  the Company has
filed all proxy statements,  reports and other documents required to be filed by
it under the Securities  Exchange Act 1934, as amended (the "Exchange Act"). The
Company has furnished the  Purchaser  with copies of: (i) its Annual  Reports on
Form 10-KSB for its fiscal years ended  December 31, 2003 and 2002; and (ii) its
Quarterly  Reports on Form 10-QSB for its fiscal quarters ended in 2004, and the
Form  8-K  filings  which  it has  made  during  the  fiscal  year  2004 to date
(collectively,  the "SEC  Reports").  Except as set forth on Schedule 4.21, each
SEC Report was, at the time of its filing,  in substantial  compliance  with the
requirements  of its  respective  form  and  none  of the SEC  Reports,  nor the
financial  statements (and the notes thereto) included in the SEC Reports, as of
their respective filing dates, contained any untrue statement of a material fact
or omitted to state a material fact  required to be stated  therein or necessary
to make the statements  therein,  in light of the circumstances under which they
were made, not misleading.

                                       11
<PAGE>

      4.22  No  Integrated  Offering.  Neither  the  Company,  nor  any  of  its
Subsidiaries  or affiliates,  nor any person acting on its or their behalf,  has
directly or indirectly made any offers or sales of any security or solicited any
offers to buy any security under  circumstances that would cause the offering of
the Securities pursuant to this Agreement or any of the Related Agreements to be
integrated  with prior  offerings by the Company for purposes of the  Securities
Act which would prevent the Company from selling the Securities pursuant to Rule
506 under the  Securities  Act, or any applicable  exchange-related  stockholder
approval  provisions,  nor  will  the  Company  or  any  of  its  affiliates  or
Subsidiaries  take any  action or steps  that would  cause the  offering  of the
Securities to be integrated with other offerings.

      4.23 Stop Transfer.  The  Securities  are restricted  securities as of the
date of this  Agreement.  Neither the Company nor any of its  Subsidiaries  will
issue any stop transfer  order or other order  impeding the sale and delivery of
any of the  Securities  at  such  time as a  registration  statement  under  the
Securities  Act  registering  the  Securities is effective or an exemption  from
registration  is available,  except as required by state and federal  securities
laws.

      4.24 Dilution.  The Company specifically  acknowledges that its obligation
to issue the shares of Common Stock upon  conversion of the Note and exercise of
the  Warrant is binding  upon the  Company  and  enforceable  regardless  of the
dilution such issuance may have on the ownership interests of other shareholders
of the Company.

      4.25  Patriot Act. The Company  certifies  that,  to the best of Company's
knowledge,  neither the Company nor any of its Subsidiaries has been designated,
and is not  owned or  controlled,  by a  "suspected  terrorist"  as  defined  in
Executive Order 13224. The Company hereby  acknowledges that the Purchaser seeks
to comply with all  applicable  laws  concerning  money  laundering  and related
activities.  In  furtherance of those  efforts,  the Company hereby  represents,
warrants and agrees that:  (i) none of the cash or property  that the Company or
any of its Subsidiaries will pay or will contribute to the Purchaser has been or
shall be derived from, or related to, any activity that is deemed criminal under
United States law; and (ii) no  contribution or payment by the Company or any of
its  Subsidiaries  to the  Purchaser,  to the  extent  that they are  within the
Company's  and/or its  Subsidiaries'  control shall cause the Purchaser to be in
violation of the United States Bank Secrecy Act, the United States International
Money Laundering  Control Act of 1986 or the United States  International  Money
Laundering Abatement and Anti-Terrorist Financing Act of 2001. The Company shall
promptly notify the Purchaser if any of these representations  ceases to be true
and  accurate  regarding  the  Company or any of its  Subsidiaries.  The Company
agrees to provide the Purchaser any additional information regarding the Company
or any of its  Subsidiaries  that the Purchaser deems necessary or convenient to
ensure  compliance  with all applicable  laws  concerning  money  laundering and
similar activities. The Company understands and agrees that if at any time it is
discovered  that  any of the  foregoing  representations  are  incorrect,  or if
otherwise  required by applicable law or regulation  related to money laundering
similar  activities,  the Purchaser may undertake  appropriate actions to ensure
compliance  with  applicable  law or  regulation,  including  but not limited to
segregation and/or redemption of the Purchaser's  investment in the Company. The
Company  further  understands  that  the  Purchaser  may  release   confidential
information  about the Company and its  Subsidiaries  and,  if  applicable,  any
underlying  beneficial  owners, to proper  authorities if the Purchaser,  in its
sole discretion, determines that it is in the best interests of the Purchaser in
light of relevant rules and  regulations  under the laws set forth in subsection
(ii) above.

                                       12
<PAGE>

      5.  Representations and Warranties of the Purchaser.  The Purchaser hereby
represents  and  warrants  to the  Company,  Tube Music and  Pyramid  Records as
follows  (such  representations  and  warranties  do not lessen or  obviate  the
representations and warranties of the Company set forth in this Agreement):

      5.1 No Shorting.  The Purchaser or any of its  affiliates  and  investment
partners has not, will not and will not cause any person or entity,  directly or
indirectly,  to engage in "short sales" of the Company's Common Stock as long as
the Note shall be outstanding.

      5.2  Organization;  Requisite  Power and  Authority.  The  Purchaser  is a
limited liability company, duly organized, validly existing and in good standing
under  the laws of its  jurisdiction  of  organization.  The  Purchaser  has all
necessary power and authority under all applicable  provisions of law to execute
and deliver this  Agreement  and the Related  Agreements  and to carry out their
provisions.  All corporate  action on  Purchaser's  part required for the lawful
execution and delivery of this Agreement and the Related Agreements have been or
will be  effectively  taken  prior to the  Closing.  Upon  their  execution  and
delivery,  this Agreement and the Related  Agreements  will be valid and binding
obligations of Purchaser, enforceable in accordance with their terms, except:

      (a) as  limited  by  applicable  bankruptcy,  insolvency,  reorganization,
moratorium  or  other  laws of  general  application  affecting  enforcement  of
creditors' rights; and

      (b)  as  limited  by  general  principles  of  equity  that  restrict  the
availability of equitable and legal remedies.

      5.3 Investment Representations.  Purchaser understands that the Securities
are being offered and sold pursuant to an exemption from registration  contained
in the Securities Act based in part upon Purchaser's  representations  contained
in this  Agreement,  including,  without  limitation,  that the  Purchaser is an
"accredited  investor"  within the meaning of Regulation D under the  Securities
Act. The  Purchaser  confirms that it has received or has had full access to all
the  information,   including  the  SEC  Reports,   it  considers  necessary  or
appropriate to make an informed investment decision with respect to the Note and
the Warrant to be purchased by it under this  Agreement  and the Note Shares and
the  Warrant  Shares  acquired  by it upon  the  conversion  of the Note and the
exercise of the Warrant,  respectively.  The Purchaser  further confirms that it
has had an  opportunity  to ask questions  and receive  answers from the Company
regarding the Company's and its Subsidiaries' business, management and financial
affairs and the terms and  conditions  of the offering of the Note,  the Warrant
and the  Securities  and to obtain  additional  information  (to the  extent the
Company  possessed  such  information  or could acquire it without  unreasonable
effort  or  expense)  necessary  to  verify  any  information  furnished  to the
Purchaser or to which the Purchaser had access.

                                       13
<PAGE>

      5.4  Purchaser   Bears  Economic  Risk.  The  Purchaser  has   substantial
experience in  evaluating  and investing in private  placement  transactions  of
securities  in  companies  similar  to the  Company  so  that it is  capable  of
evaluating  the merits and risks of its  investment  in the  Company and has the
capacity to protect its own interests. The Purchaser must bear the economic risk
of this  investment  until the Securities are sold pursuant to: (i) an effective
registration  statement  under the  Securities  Act; or (ii) an  exemption  from
registration is available with respect to such sale.

      5.5 Acquisition  for Own Account.  The Purchaser is acquiring the Note and
Warrant  and the Note  Shares and the  Warrant  Shares for the  Purchaser's  own
account for  investment  only, and not as a nominee or agent and not with a view
towards or for resale in connection with their distribution. Notwithstanding the
foregoing,  the  Purchaser  shall have the right to  distribute or assign all or
part of the principal  amount of the Note, the Warrant,  the Note Shares and the
Warrant Shares to a lineal descendant(s) of Edward D. and Anna Mitchell,  or any
person or entity  controlled  by any such lineal  descendant(s),  provided  such
distributee  or  assignee  is an  accredited  investor  within  the  meaning  of
Regulation D under the Securities Act.

      5.6 Purchaser Can Protect Its Interest.  The Purchaser  represents that by
reason of its, or of its management's,  business and financial  experience,  the
Purchaser has the capacity to evaluate the merits and risks of its investment in
the Note,  the Warrant and the  Securities  and to protect its own  interests in
connection with the transactions  contemplated in this Agreement and the Related
Agreements.  Further,  Purchaser is aware of no publication of any advertisement
in connection with the transactions contemplated in the Agreement or the Related
Agreements.

      5.7 Accredited Investor. The Purchaser represents that it is an accredited
investor within the meaning of Regulation D under the Securities Act.

      5.8 Legends.

      (a) The Note shall bear substantially the following legend:

      "THIS NOTE AND THE COMMON  SHARES  ISSUABLE  UPON  CONVERSION OF THIS NOTE
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR
      ANY  APPLICABLE  STATE  SECURITIES  LAWS.  EXCEPT AS  CONTEMPLATED  BY THE
      SECURITIES  PURCHASE  AGREEMENT AMONG AGU ENTERTAINMENT  CORP., ITS DIRECT
      AND INDIRECT  SUBSIDIARIES AND THE ORIGINAL HOLDER OF THIS NOTE, THIS NOTE
      AND THE COMMON  SHARES  ISSUABLE  UPON  CONVERSION OF THIS NOTE MAY NOT BE
      SOLD,  OFFERED  FOR SALE,  PLEDGED OR  HYPOTHECATED  IN THE  ABSENCE OF AN
      EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE OR SUCH UNDERLYING SHARES
      OF COMMON STOCK UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR
      AN OPINION OF COUNSEL REASONABLY  SATISFACTORY TO AGU ENTERTAINMENT  CORP.
      THAT SUCH REGISTRATION IS NOT REQUIRED."

                                       14
<PAGE>

      (b) The Note Shares and the Warrant  Shares,  if not issued by DWAC system
(as hereinafter  defined),  shall bear a legend which shall be in  substantially
the  following  form until such shares are covered by an effective  registration
statement filed with the SEC:

      "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES
      LAWS.  EXCEPT AS CONTEMPLATED BY THE SECURITIES  PURCHASE  AGREEMENT AMONG
      AGU  ENTERTAINMENT  CORP.,  ITS DIRECT AND INDIRECT  SUBSIDIARIES  AND THE
      ORIGINAL HOLDER OF THIS WARRANT, THESE SHARES MAY NOT BE SOLD, OFFERED FOR
      SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE  REGISTRATION
      STATEMENT  UNDER  SUCH  SECURITIES  ACT AND  APPLICABLE  STATE  LAWS OR AN
      OPINION OF COUNSEL REASONABLY SATISFACTORY TO AGU ENTERTAINMENT CORP. THAT
      SUCH REGISTRATION IS NOT REQUIRED."

      (c) The Warrant shall bear substantially the following legend:

      "THIS  WARRANT AND THE SHARES OF COMMON STOCK  ISSUABLE  UPON  EXERCISE OF
      THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED,  OR ANY STATE  SECURITIES  LAWS.  EXCEPT AS  CONTEMPLATED  BY THE
      SECURITIES  PURCHASE  AGREEMENT AMONG AGU ENTERTAINMENT  CORP., ITS DIRECT
      AND INDIRECT  SUBSIDIARIES  AND THE ORIGINAL HOLDER OF THIS WARRANT,  THIS
      WARRANT AND THE COMMON STOCK  ISSUABLE  UPON  EXERCISE OF THIS WARRANT MAY
      NOT BE SOLD,  OFFERED FOR SALE,  PLEDGED OR HYPOTHECATED IN THE ABSENCE OF
      AN EFFECTIVE  REGISTRATION  STATEMENT AS TO THIS WARRANT OR THE UNDERLYING
      SHARES OF COMMON STOCK UNDER SAID ACT AND ANY APPLICABLE  STATE SECURITIES
      LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO AGU ENTERTAINMENT
      CORP. THAT SUCH REGISTRATION IS NOT REQUIRED."

                                       15
<PAGE>

            5.9 Transfer or Resale.  The  Purchaser  understands  that except as
provided  in this  Agreement  and the  Registration  Rights  Agreement:  (i) the
Securities have not been and are not being registered under the Act or any state
securities laws, and may not be offered for sale, sold,  assigned or transferred
unless (A)  subsequently  registered  thereunder,  or (B)  Purchaser  shall have
delivered to the Company an opinion of counsel, in a generally  acceptable form,
to the effect that such  securities to be sold,  assigned or transferred  may be
sold,  assigned or transferred  pursuant to an exemption from such  registration
requirements;  and (ii) any sale of such securities made in reliance on Rule 144
under the Securities Act (or a successor rule thereto)  ("Rule 144") may be made
only in  accordance  with the terms of Rule 144 and further,  if Rule 144 is not
applicable,  any  resale of such  securities  under  circumstances  in which the
seller  (or the  person  through  whom the sale is made)  may be deemed to be an
underwriter  (as  that  term is  defined  in the  Securities  Act)  may  require
compliance  with the some other  exemption under the Securities Act or the rules
and regulations of the SEC thereunder.

            5.10 No  Governmental  Review.  The  Purchaser  understands  that no
United States  federal or state agency or any other  government or  governmental
agency has passed on or made any recommendation or endorsement of the Securities
or the fairness or suitability of the investment in the Securities nor have such
authorities  passed  upon  or  endorsed  the  merits  of  the  offering  of  the
Securities.

      6.  Covenants  of the Company and its  Subsidiaries.  Each of the Company,
Tube Music and  Pyramid  Records  covenants  and agrees  with the  Purchaser  as
follows:

            6.1  Stop-Orders.  The Company will advise the  Purchaser,  promptly
after it receives  notice of issuance by the Securities and Exchange  Commission
(the "SEC"), any state securities  commission or any other regulatory  authority
of any stop order or of any order  preventing or suspending  any offering of any
securities  of the Company,  or of the  suspension of the  qualification  of the
Common  Stock of the Company for  offering or sale in any  jurisdiction,  or the
initiation of any proceeding for any such purpose.

            6.2  Listing.  The Company  shall use its best efforts to secure the
listing of the shares of Common Stock  issuable upon  conversion of the Note and
upon the exercise of the Warrant on the NASD OTC Bulletin Board (the  "Principal
Market") and shall  maintain  such listing so long as any other shares of Common
Stock shall be so listed.  The Company  will  maintain the listing of its Common
Stock on the Principal Market, and will comply in all material respects with the
Company's  reporting,  filing and other obligations under the bylaws or rules of
the National  Association of Securities Dealers ("NASD") and such exchanges,  as
applicable.

            6.3 Market  Regulations.  The Company shall notify the SEC, NASD and
applicable  state  authorities,  in accordance with their  requirements,  of the
transactions  contemplated by this Agreement, and shall take all other necessary
action and  proceedings as may be required and permitted by applicable law, rule
and  regulation,  for the legal  and valid  issuance  of the  Securities  to the
Purchaser and promptly  provide copies  thereof to the Purchaser.

            6.4  Reporting  Requirements.  The Company will timely file with the
SEC all reports  required to be filed  pursuant to the  Exchange Act and refrain
from  terminating  its status as an issuer  required by the Exchange Act to file
reports  thereunder  even  if  the  Exchange  Act or the  rules  or  regulations
thereunder would permit such termination.

                                       16
<PAGE>

            6.5 Use of Funds.  The Company  agrees that it will use the proceeds
of the  sale of the  Note  and the  Warrant  only  for  the  acquisition  of the
Lauderdale  Lakes Property and general working capital  purposes.

            6.6 Access to Facilities  and  Information.  Each of the Company and
each of its  Subsidiaries  will  permit any  representatives  designated  by the
Purchaser (or any successor of the Purchaser), upon reasonable notice and during
normal  business   hours,  at  such  person's   expense  and  accompanied  by  a
representative of the Company, to:

            (a) visit and inspect any of the properties of the Company or any of
its Subsidiaries;

            (b) examine the corporate  and  financial  records of the Company or
any of its  Subsidiaries  (unless such  examination is not permitted by federal,
state  or  local  law or by  contract)  and  make  copies  thereof  or  extracts
therefrom; and

            (c) discuss the affairs, finances and accounts of the Company or any
of its Subsidiaries with the directors,  officers and independent accountants of
the Company or any of its Subsidiaries.

The Company shall  provide the Purchaser  with copies of all financial and other
information  affecting the Company and its  Subsidiaries  made  available to the
Company's  board  of  directors.  Such  information  shall  be  provided  to the
Purchaser on a monthly basis.

            6.7 Taxes.  Each of the  Company and each of its  Subsidiaries  will
promptly pay and  discharge,  or cause to be paid and  discharged,  when due and
payable,  all  lawful  taxes,  assessments  and  governmental  charges or levies
imposed  upon the income,  profits,  property or business of the Company and its
Subsidiaries;  provided, however, that any such tax, assessment,  charge or levy
need not be paid if the validity  thereof  shall  currently be contested in good
faith by appropriate proceedings and if the Company and/or such Subsidiary shall
have set  aside  on its  books  adequate  reserves  with  respect  thereto,  and
provided,  further,  that the  Company  and its  Subsidiaries  will pay all such
taxes,  assessments,  charges  or  levies  forthwith  upon the  commencement  of
proceedings to foreclose any lien which may have attached as security therefor.

            6.8 Insurance.  Each of the Company and its  Subsidiaries  will keep
its assets which are of an insurable  character insured by financially sound and
reputable  insurers  against loss or damage by fire,  explosion  and other risks
customarily  insured against by companies in similar business similarly situated
as the Company and its  Subsidiaries;  and the Company and its Subsidiaries will
maintain, with financially sound and reputable insurers, insurance against other
hazards and risks and liability to persons and property to the extent and in the
manner  which the Company  reasonably  believes is  customary  for  companies in
similar business  similarly  situated as the Company and its Subsidiaries and to
the extent available on commercially  reasonable terms. The Company, and each of
its Subsidiaries  will jointly and severally bear the full risk of loss from any
loss  of any  nature  whatsoever  with  respect  to the  assets  pledged  to the
Purchaser  as  security  for its  obligations  hereunder  and under the  Related

                                       17
<PAGE>

Agreements.  At the  Company's and each of its  Subsidiaries'  joint and several
cost  and  expense  in  amounts  and  with  carriers  reasonably  acceptable  to
Purchaser,  the  Company  and each of its  Subsidiaries  shall  (i) keep all its
insurable  properties and properties in which it has an interest insured against
the hazards of fire, flood, sprinkler leakage, those hazards covered by extended
coverage insurance and such other hazards, and for such amounts, as is customary
in the case of companies  engaged in businesses  similar to the Company's or the
respective Subsidiary's including business interruption insurance; (ii) maintain
a bond in such  amounts  as is  customary  in the case of  companies  engaged in
businesses  similar to the  Company's or the  respective  Subsidiary's  insuring
against larceny,  embezzlement or other criminal  misappropriation  of insured's
officers and  employees who may either singly or jointly with others at any time
have  access to the assets or funds of the  Company  or any of its  Subsidiaries
either directly or through governmental  authority to draw upon such funds or to
direct  generally the  disposition  of such assets;  (iii)  maintain  public and
product  liability  insurance  against  claims  for  personal  injury,  death or
property damage suffered by others; (iv) maintain all such worker's compensation
or  similar  insurance  as may be  required  under  the  laws  of any  state  or
jurisdiction  in which the Company or the  respective  Subsidiary  is engaged in
business; and (v) furnish Purchaser with (x) copies of all policies and evidence
of the  maintenance  of such  policies  at least  thirty  (30) days  before  any
expiration  date,  (y)  excepting the Company's  workers'  compensation  policy,
endorsements  to such policies  naming  Purchaser as "co-insured" or "additional
insured"  and  appropriate  loss  payable  endorsements  in form  and  substance
satisfactory to Purchaser, naming Purchaser as loss payee, and (z) evidence that
as to Purchaser the insurance  coverage  shall not be impaired or invalidated by
any act or neglect of the Company or any Subsidiary and the insurer will provide
Purchaser  with at least  thirty (30) days  notice  prior to  cancellation.  The
Company and each  Subsidiary  shall instruct the insurance  carriers that in the
event of any loss  thereunder,  the carriers shall make payment for such loss to
the Company and/or the Subsidiary and Purchaser jointly. In the event that as of
the date of receipt of each loss recovery upon any such insurance, the Purchaser
has not declared an event of default  with  respect to this  Agreement or any of
the  Related  Agreements,  then the  Company  and/or  such  Subsidiary  shall be
permitted  to direct  the  application  of such loss  recovery  proceeds  toward
investment in property,  plant and equipment  that would  comprise  "Collateral"
secured by Purchaser's  security  interest  pursuant to its security  agreement,
with any surplus funds to be applied  toward  payment of the  obligations of the
Company to Purchaser. In the event that Purchaser has properly declared an event
of default with respect to this Agreement or any of the Related Agreements, then
all loss recoveries received by Purchaser upon any such insurance thereafter may
be applied to the  obligations  of the Company  hereunder  and under the Related
Agreements, in such order as the Purchaser may determine. Any surplus (following
satisfaction of all Company obligations to Purchaser) shall be paid by Purchaser
to the Company or applied as may be otherwise  required by law.  Any  deficiency
thereon  shall be paid by the  Company  or the  Subsidiary,  as  applicable,  to
Purchaser, on demand.

            6.9  Intellectual  Property.  Each of the  Company  and  each of its
Subsidiaries  shall maintain in full force and effect its existence,  rights and
franchises and all licenses and other rights to use Intellectual  Property owned
or possessed by it and  reasonably  deemed to be necessary to the conduct of its
business.

            6.10  Properties.  Each of the Company and each of its  Subsidiaries
will keep its properties in good repair, working order and condition, reasonable
wear and tear  excepted,  and from  time to time  make all  needful  and  proper
repairs, renewals, replacements, additions and improvements thereto; and each of
the  Company  and each of its  Subsidiaries  will at all times  comply with each
provision  of all  leases  to which it is a party  or  under  which it  occupies
property if the breach of such provision  could,  either  individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

                                       18
<PAGE>

            6.11  Confidentiality.  The  Company and its  Subsidiaries  will not
disclose,  and will not  include  in any  public  announcement,  the name of the
Purchaser,  unless expressly agreed to by the Purchaser or unless and until such
disclosure  is required by law or  applicable  regulation,  and then only to the
extent of such  requirement.  Notwithstanding  the  foregoing,  the  Company may
disclose Purchaser's identity and the terms of this Agreement to its current and
prospective debt and equity financing  sources and Purchaser  acknowledges  that
the  Company  will file a Form 8K  within  four  days of the  execution  of this
Agreement  disclosing  all material  terms of this Agreement and the name of the
Purchaser.  This Agreement will also be filed with the  registration  statement.

            6.12 Required  Approvals.  For so long the  principal  amount of the
Note is outstanding, the Company and its Subsidiaries, without the prior written
consent of the Purchaser, shall not:

            (a) (i) directly or indirectly  declare or pay any  dividends  other
than to the Company or a 100% owned  Subsidiary  of the Company,  (ii) issue any
preferred stock or (iii) redeem or repurchase any of its securities;

            (b) liquidate,  dissolve or effect a material reorganization (unless
the Company or the applicable Subsidiary is the surviving entity);

            (c) become  subject to  (including,  without  limitation,  by way of
amendment to or modification  of) any agreement or instrument which by its terms
would  (under  any   circumstances)   restrict  the  Company's  or  any  of  its
Subsidiaries  right to perform the  provisions  of this  Agreement,  any Related
Agreement or any of the agreements contemplated hereby or thereby;

            (d)  materially  alter or change  the scope of the  business  of the
Company and its Subsidiaries taken as a whole;

            (e) (i) create,  incur,  assume or suffer to exist any  indebtedness
whether  secured or unsecured  other than (x) the Company's  indebtedness to the
Purchaser,  (y)  indebtedness  set forth on Schedule 6.12(e) attached hereto and
made a part hereof and any refinancings or replacements thereof on terms no less
favorable to the Purchaser than the  indebtedness  being refinanced or replaced,
and (z) any debt  incurred  in  connection  with the  purchase  of assets in the
ordinary course of business,  or any  refinancings  or  replacements  thereof on
terms no less favorable to the Purchaser than the indebtedness  being refinanced
or  replaced;  (ii)  cancel  any debt  owing to it in excess of  $50,000  in the
aggregate  during  any 12 month  period;  (iii)  assume,  guarantee,  endorse or
otherwise  become  directly  or  contingently  liable  in  connection  with  any
obligations  of  any  other  Person,   except  the   endorsement  of  negotiable
instruments by the Company for deposit or collection or similar  transactions in
the  ordinary  course  of  business  or  guarantees  of  indebtedness  otherwise
permitted  to be  outstanding  pursuant to this  clause  (e);  and

                                      19
<PAGE>

            (f) create or acquire any  Subsidiary  after the date hereof  unless
(i) such  Subsidiary is a  wholly-owned  Subsidiary of the Company and (ii) such
Subsidiary  becomes  party to the  Security  Agreement,  (either by  executing a
counterpart  thereof or an assumption or joinder  agreement in respect  thereof)
and, to the extent  required by the Purchaser,  satisfies each condition of this
Agreement and the Related  Agreements as if such Subsidiary were a Subsidiary on
the Closing Date.

            6.13  Reissuance  of  Securities.  The  Company  agrees  to  reissue
certificates  representing  the  Securities  without  the  legends  set forth in
Section  5.8 above at such time as:

            (a) the holder  thereof is permitted  to dispose of such  Securities
pursuant to Rule 144(k) under the Securities Act; or

            (b) upon resale subject to an effective registration statement after
such Securities are registered under the Securities Act.

The Company  agrees to  cooperate  with the  Purchaser  in  connection  with all
resales pursuant to Rule 144 and provide legal opinions  necessary to allow such
resales  provided  the  Company  and its counsel  receive  reasonably  requested
representations from the selling Purchaser and broker, if any.

            6.14 Opinion.  On the Closing Date,  the Company will deliver to the
Purchaser an opinion  reasonably  acceptable to the Purchaser from the Company's
external legal counsel. The Company will provide, at the Company's expense, such
other legal  opinions in the future as are deemed  reasonably  necessary  by the
Purchaser (and  reasonably  acceptable to the Purchaser) in connection  with the
conversion  of the Note and exercise of the Warrant;  provided  that the Company
and its counsel receive reasonably requested representations from the Purchaser.

            6.15 Margin  Stock.  Neither the  Company  nor any  Subsidiary  will
permit any of the  proceeds  of the Note or the  Warrant to be used  directly or
indirectly  to  "purchase" or "carry"  "margin  stock" or to repay  indebtedness
incurred to "purchase" or "carry" "margin stock" within the respective  meanings
of each of the quoted terms under  Regulation U of the Board of Governors of the
Federal Reserve System as now and from time to time hereafter in effect.

      7. Covenants of the Purchaser. The Purchaser covenants and agrees with the
Company,  Tube Music and Pyramid Records as follows:

            7.1 Confidentiality.  The Purchaser agrees that it will not disclose
or use, and will not include in any public announcement, the name of the Company
or any information  concerning the Company,  unless  expressly  agreed to by the
Company or unless and until such  disclosure  is required  by law or  applicable
regulation,  and then only to the extent of such requirement and after providing
written notice to the Company so it may seek a protective order.

                                       20
<PAGE>

            7.2 Non-Public  Information.  The Purchaser agrees not to effect any
sales in the  shares  of the  Company's  Common  Stock  while in  possession  of
material,  non-public  information  regarding  the  Company if such sales  would
violate applicable securities law.

      8. Covenants Regarding Indemnification.

            8.1 Company  Indemnification.  Each of the  Company,  Tube Music and
Pyramid  Records  jointly and  severally  agrees to  indemnify,  hold  harmless,
reimburse and defend the Purchaser,  each of the Purchaser's members,  officers,
directors,  agents,  affiliates,  control persons,  and principal  shareholders,
against  any  claim,  cost,  expense,  liability,  obligation,  loss  or  damage
(including reasonable legal fees) of any nature, incurred by or imposed upon the
Purchaser   which   results,   arises  out  of  or  is  based   upon:   (i)  any
misrepresentation  by the  Company or any of its  Subsidiaries  or breach of any
warranty by the Company or any of its Subsidiaries in this Agreement,  any other
Related Agreement or in any exhibits or schedules attached hereto or thereto; or
(ii) any breach or default in performance by Company or any of its  Subsidiaries
of  any  covenant  or  undertaking  to be  performed  by  Company  or any of its
Subsidiaries hereunder, under any other Related Agreement or any other agreement
entered  into  by the  Company  and/or  any of its  Subsidiaries  and  Purchaser
relating hereto or thereto.

            8.2 Purchaser's Indemnification. Purchaser agrees to indemnify, hold
harmless,  reimburse and defend the Company,  Tube Music and Pyramid Records and
each of  their  respective  officers,  directors,  agents,  affiliates,  control
persons  and  principal  shareholders,  at all times  against  any claim,  cost,
expense, liability, obligation, loss or damage (including reasonable legal fees)
of any nature, incurred by or imposed upon any of them which results, arises out
of or is based upon:  (i) any  misrepresentation  by  Purchaser or breach of any
warranty by  Purchaser  in this  Agreement  or any Related  Agreement  or in any
exhibits or  schedules  attached  hereto or any Related  Agreement;  or (ii) any
breach or default in  performance by Purchaser of any covenant or undertaking to
be performed  by Purchaser  hereunder,  or any other  agreement  entered into by
Purchaser relating hereto.

      9. Conversion of Convertible Note.

            9.1 Mechanics of Conversion.

            (a)  Provided  the   Purchaser  has  notified  the  Company  of  the
Purchaser's  intention  to sell the Note Shares and the Note Shares are included
in an effective registration statement or are otherwise exempt from registration
when sold:  (i) upon the  conversion  of the Note or part  thereof,  the Company
shall,  at its own cost and expense,  take all necessary  action  (including the
issuance  of an  opinion  of  counsel  reasonably  acceptable  to the  Purchaser
following  a request by the  Purchaser)  to assure that the  Company's  transfer
agent  shall  issue  shares  of the  Company's  Common  Stock in the name of the
Purchaser  (or its nominee) or such other persons as designated by the Purchaser
in  accordance  with  Section  9.1(b)  hereof  and in such  denominations  to be
specified  representing the number of Note Shares issuable upon such conversion;
and (ii) except as provided in the Registration  Rights  Agreement,  the Company
warrants that no instructions other than these instructions have been or will be
given to the  transfer  agent of the  Company's  Common Stock and that after the
Effectiveness  Date (as defined in the Registration  Rights  Agreement) the Note
Shares issued will be freely  transferable  subject to the  prospectus  delivery
requirements  of the Securities Act and the  provisions of this  Agreement,  and
will not contain a legend  restricting the resale or transferability of the Note
Shares.

                                       21
<PAGE>

            (b) Purchaser will give notice of its decision to exercise its right
to convert the Note or part thereof by  telecopying  or otherwise  delivering an
executed  and  completed  notice of the number of shares to be  converted to the
Company  (the "Notice of  Conversion").  The  Purchaser  will not be required to
surrender the Note until the  Purchaser  receives a credit to the account of the
Purchaser's   prime  broker   through  the  DWAC  system  (as  defined   below),
representing  the Note Shares or until the Note has been fully  satisfied.  Each
date on which a Notice of  Conversion  is telecopied or delivered to the Company
in accordance  with the provisions  hereof shall be deemed a "Conversion  Date."
Pursuant  to the terms of the  Notice of  Conversion,  the  Company  will  issue
instructions  to the transfer agent  accompanied by an opinion of counsel within
three (3) business days of the date of the delivery to the Company of the Notice
of Conversion  and shall cause the transfer  agent to transmit the  certificates
representing the Conversion Shares to the Holder by crediting the account of the
Purchaser's  prime broker with the Depository  Trust Company ("DTC") through its
Deposit  Withdrawal Agent  Commission  ("DWAC") system within three (3) business
days after  receipt by the Company of the Notice of  Conversion  (the  "Delivery
Date").

            (c) The Company understands that a delay in the delivery of the Note
Shares in the form  required  pursuant to Section 9 hereof  beyond the  Delivery
Date  could  result in  economic  loss to the  Purchaser.  In the event that the
Company  fails to direct its  transfer  agent to deliver  the Note Shares to the
Purchaser via the DWAC system within the time frame set forth in Section  9.1(b)
above and the Note Shares are not  delivered  to the  Purchaser  by the Delivery
Date, as  compensation to the Purchaser for such loss, the Company agrees to pay
late  payments to the Purchaser for late issuance of the Note Shares in the form
required  pursuant to Section 9 hereof upon conversion of the Note in the amount
equal to the greater of: (i) $500 per business day after the Delivery  Date;  or
(ii) the Purchaser's actual damages from such delayed delivery.  Notwithstanding
the  foregoing,  the Company will not owe the Purchaser any late payments if the
delay in the delivery of the Note Shares  beyond the Delivery Date is solely out
of the control of the  Company  and the  Company is actively  trying to cure the
cause of the delay.  The  Company  shall pay any  payments  incurred  under this
Section  9(c) in  immediately  available  funds upon  demand and, in the case of
actual damages,  accompanied by reasonable  documentation  of the amount of such
damages.  Such documentation shall show the number of shares of Common Stock the
Purchaser  is forced  to  purchase  (in an open  market  transaction)  which the
Purchaser anticipated receiving upon such conversion, and shall be calculated as
the  amount  by  which  (A) the  Purchaser's  total  purchase  price  (including
customary  brokerage  commissions,  if any) for the  shares of  Common  Stock so
purchased  exceeds (B) the aggregate  principal  and/or  interest  amount of the
Note, for which such Conversion Notice was not timely honored.

Nothing  contained herein or in any document  referred to herein or delivered in
connection  herewith  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. In the event that the rate of interest or charges required to be
paid or other charges hereunder exceed the maximum amount permitted by such law,
any payments in excess of such maximum shall be credited against amounts owed by
the Company to a Purchaser  and thus refunded to the Company.

                                       22
<PAGE>

10. Registration Rights.

            10.1  Registration   Rights  Granted.   The  Company  hereby  grants
registration rights to the Purchaser pursuant to a Registration Rights Agreement
dated as of even date  herewith  between  the Company  and the  Purchaser.

            10.2 Offering  Restrictions.  Except as previously  disclosed in the
SEC Reports or in the Exchange Act Filings, or stock or stock options granted to
employees or directors of the Company (these exceptions  hereinafter referred to
as the "Excepted  Issuances"),  neither the Company nor any of its  Subsidiaries
will  issue any  securities  with a  continuously  variable/floating  conversion
feature  which  are or could be (by  conversion  or  registration)  free-trading
securities (i.e. common stock subject to a registration  statement) prior to the
full  repayment or conversion of the Note  (together with all accrued and unpaid
interest and fees related thereto) (the "Exclusion Period").

      11. Miscellaneous.

            11.1 Governing Law. THIS AGREEMENT AND EACH RELATED  AGREEMENT SHALL
BE  GOVERNED  BY AND  CONSTRUED  IN  ACCORDANCE  WITH THE  LAWS OF THE  STATE OF
FLORIDA,  WITHOUT  REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. ANY ACTION BROUGHT
BY EITHER PARTY AGAINST THE OTHER  CONCERNING THE  TRANSACTIONS  CONTEMPLATED BY
THIS  AGREEMENT  AND EACH RELATED  AGREEMENT  SHALL BE BROUGHT ONLY IN THE STATE
COURTS OF FLORIDA,  COUNTY OF BROWARD,  OR IN THE FEDERAL  COURTS LOCATED IN THE
SOUTHERN  DISTRICT  OF THE STATE OF FLORIDA.  ALL  PARTIES  AND THE  INDIVIDUALS
EXECUTING  THIS  AGREEMENT  AND THE RELATED  AGREEMENTS ON BEHALF OF THE COMPANY
AGREE TO SUBMIT TO THE  JURISDICTION  OF SUCH COURTS AND WAIVE TRIAL BY JURY. IN
THE  EVENT  THAT  ANY  PROVISION  OF THIS  AGREEMENT  OR ANY  RELATED  AGREEMENT
DELIVERED  IN  CONNECTION   HEREWITH  IS  INVALID  OR  UNENFORCEABLE  UNDER  ANY
APPLICABLE  STATUTE  OR  RULE  OF LAW,  THEN  SUCH  PROVISION  SHALL  BE  DEEMED
INOPERATIVE  TO THE EXTENT THAT IT MAY  CONFLICT  THEREWITH  AND SHALL BE DEEMED
MODIFIED TO CONFORM WITH SUCH STATUTE OR RULE OF LAW. ANY SUCH  PROVISION  WHICH
MAY PROVE INVALID OR  UNENFORCEABLE  UNDER ANY LAW SHALL NOT AFFECT THE VALIDITY
OR  ENFORCEABILITY  OF ANY OTHER  PROVISION  OF THIS  AGREEMENT  OR ANY  RELATED
AGREEMENT.

            11.2  Survival.  The  representations,   warranties,  covenants  and
agreements made herein shall survive any investigation made by the Purchaser and
the  closing of the  transactions  contemplated  hereby to the  extent  provided
therein.  All statements as to factual  matters  contained in any certificate or
other  instrument  delivered by or on behalf of the Company and its Subsidiaries
pursuant hereto in connection with the transactions contemplated hereby shall be
deemed to be representations  and warranties by the Company and its Subsidiaries
hereunder solely as of the date of such certificate or instrument.

                                       23
<PAGE>

            11.3 Successors.  Except as otherwise expressly provided herein, the
provisions  hereof  shall  inure to the  benefit  of, and be binding  upon,  the
successors,  heirs, executors and administrators of the parties hereto and shall
inure to the benefit of and be  enforceable by each person who shall be a holder
of the  Securities  from time to time,  other than the  holders of Common  Stock
which  has been  sold by the  Purchaser  pursuant  to Rule  144 or an  effective
registration statement.

            11.4  Entire  Agreement.  This  Agreement  (including  the  recitals
hereto),  the Related Agreements,  the exhibits and schedules hereto and thereto
and the other documents delivered pursuant hereto constitute the full and entire
understanding  and  agreement  between the parties  with regard to the  subjects
hereof  and no party  shall be liable or bound to any other in any manner by any
representations, warranties, covenants and agreements except as specifically set
forth herein and therein.

            11.5  Severability.  In case any provision of the Agreement shall be
invalid, illegal or unenforceable,  the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

            11.6 Amendment and Waiver.

            (a) This  Agreement may be amended or modified only upon the written
consent of all parties hereto.

            (b) The  obligations  of the  Company and its  Subsidiaries  and the
rights of the Purchaser under this Agreement may be waived only with the written
consent of the Purchaser.

            (c) The  obligations  of the Purchaser and the rights of the Company
and its  Subsidiaries  under this  Agreement may be waived only with the written
consent of the Company.

            11.7 Delays or Omissions.  It is agreed that no delay or omission to
exercise  any right,  power or remedy  accruing  to any party,  upon any breach,
default or  noncompliance  by another party under this  Agreement or the Related
Agreements,  shall  impair  any such  right,  power or  remedy,  nor shall it be
construed to be a waiver of any such breach,  default or  noncompliance,  or any
acquiescence  therein, or of or in any similar breach,  default or noncompliance
thereafter occurring. All remedies, either under this Agreement, the Note or the
Related  Agreements,  by law  or  otherwise  afforded  to any  party,  shall  be
cumulative and not alternative.

            11.8 Notices.  All notices required or permitted  hereunder shall be
in writing and shall be deemed effectively given:

            (a) upon personal delivery to the party to be notified;

                                       24
<PAGE>

            (b) when sent by confirmed  facsimile if sent during normal business
hours of the recipient, if not, then on the next business day;

            (c) three (3) business  days after having been sent by registered or
certified mail, return receipt requested, postage prepaid; or

            (d) one (1) day after deposit with a nationally recognized overnight
courier, specifying next day delivery, with written verification of receipt.

All communications shall be sent as follows:

         If to the Company, to              AGU Entertainment Corp.
         and any Subsidiary:                3200 West Oakland Park Boulevard
                                            Lauderdale Lakes, Florida 33311
                                            Attention:  Chief Financial Officer
                                            Facsimile: (954) 714-8500

                                            with a copy to:

                                            Bruce C. Rosetto, Esq.
                                            Blank Rome LLP
                                            1200 North Federal Highway
                                            Suite 417
                                            Boca Raton, Florida  33432
                                            Facsimile:  (561)417-8186

         If to the Purchaser, to:           Mitchell Entertainment Company
                                            7220 NW 36th Street, Suite 100
                                            Miami, Florida  33166
                                            Attention: Jonathan E. Mitchell
                                            Facsimile: (305) 591-9657

         with a copy to:

                                            Mitchell Entertainment Company
                                            11601 Wilshire Boulevard, Suite 2400
                                            Los Angeles, California 90025
                                            Attention: Jonathan E. Mitchell
                                            Facsimile: (310) 473-0076

                                            Robert S. Barry, Jr., Esq.
                                            Loeb & Loeb LLP
                                            10100 Santa Monica Boulevard
                                            Suite 2200
                                            Los Angeles, California  90067
                                            Facsimile:  (310) 282-2200

or at such  other  address as the  Company or the  Purchaser  may  designate  by
written  notice to the other parties hereto given in accordance  herewith.

                                       25
<PAGE>

            11.9  Attorneys'  Fees.  In the  event  that any suit or  action  is
instituted to enforce any provision in this Agreement,  the prevailing  party in
such dispute shall be entitled to recover from the losing party all fees,  costs
and  expenses  of  enforcing  any right of such  prevailing  party under or with
respect to this Agreement,  including,  without limitation, such reasonable fees
and  expenses  of  attorneys  and  accountants,  which  shall  include,  without
limitation, all fees, costs and expenses of appeals.

            11.10  Titles  and  Subtitles.   The  titles  of  the  sections  and
subsections of this Agreement are for  convenience of reference only and are not
to be considered in  construing  this  Agreement.

            11.11  Facsimile  Signatures;  Counterparts.  This  Agreement may be
executed by  facsimile  signatures  and in any number of  counterparts,  each of
which shall be an  original,  but all of which  together  shall  constitute  one
instrument.

            11.12 Broker's Fees. Each party hereto  represents and warrants that
except as contemplated by this Agreement no agent,  broker,  investment  banker,
person or firm acting on behalf of or under the  authority  of such party hereto
is or will be entitled to any broker's or finder's  fee or any other  commission
directly or indirectly in connection with the transactions  contemplated herein.
Each party hereto  further  agrees to indemnify each other party for any claims,
losses  or   expenses   incurred  by  such  other  party  as  a  result  of  the
representation in this Section 11.12 being untrue.

            11.13  Construction.  Each party acknowledges that its legal counsel
participated  in the  preparation of this  Agreement and the Related  Agreements
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 Agreement to favor any party against the other.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                       26
<PAGE>

         IN WITNESS  WHEREOF,  the parties  hereto have executed the  SECURITIES
PURCHASE AGREEMENT as of the date set forth in the first paragraph hereof.

<TABLE>
<CAPTION>
COMPANY AND SUBSIDIARIES:                                    PURCHASER:

<S>                                                          <C>
AGU Entertainment Corp., a Delaware corporation              Mitchell Entertainment Company, a Delaware limited
                                                             liability company

By:      /s/ David C. Levy                                   By:      /s/ Jonathan E. Mitchell
         --------------------------------------------                 ------------------------
Name:    David C. Levy                                       Name:    Jonathan E. Mitchell
Title:   President and Secretary                             Title:   Manager

The Tube Music Network, Inc., a Florida corporation

By:      /s/ David C. Levy
         -------------------------------------------
Name:    David C. Levy
Title:   President and Secretary

Pyramid Records International, Inc., a Florida corporation

By:      /s/ David C. Levy
         -------------------------------------------
Name:    David C. Levy
Title:   President and Secretary
</TABLE>

                                       27EXHIBIT 10.2

Tax Folio Nos. 19230 12 00100, 19230 12 00200, 19230 19 00200 & 19230 19 00300

-------------------------------------------------------------------------------
PREPARED  BY/RECORD AND RETURN TO: Howard L. Friedberg,  Esquire,  Katz, Barron,
Squitero,  Faust, Brecker,  Terzo,  Friedberg & Grady, P.A.; 2699 South Bayshore
Drive, 7th Floor Miami, Florida 33133; Telephone: (305) 856-2444.
-------------------------------------------------------------------------------

                      MORTGAGE DEED AND SECURITY AGREEMENT

      THIS MORTGAGE  DEED AND SECURITY  AGREEMENT is made and entered into as of
the 20th day of  December,  2004,  by and between  AGU  ENTERTAINMENT  CORP.,  a
Delaware  corporation  ("Mortgagor"),  whose  address is 3200 West  Oakland Park
Boulevard,  Lauderdale Lakes, Florida 33311, and Mitchell Entertainment Company,
a Delaware limited liability company  ("Mortgagee"),  7220 NW 36th Street, Suite
100, Miami, Florida 33166, its successors and assigns.

                              W I T N E S S E T H :

      WHEREAS, Mortgagor has, simultaneously herewith, executed and delivered to
Mortgagee a Secured Convertible Term Note (the "Note") of even date herewith, in
the  principal  amount of Three  Million  and  00/100  Dollars  ($3,000,000.00),
payable in accordance  with the terms and provisions as  particularly  stated in
said Note, on or before the maturity  date set forth in the Note,  which Note by
reference is made a part hereof as though set out in full herein.

      NOW THEREFORE,  to secure the  performance and observance of all covenants
and  conditions in the Note and in this Mortgage,  and in all other  instruments
securing  the Note,  and as security  for any and all other sums,  indebtedness,
obligations and liabilities of any and every kind, now or hereafter,  during the
term  hereof,  owing and to become due from  Mortgagor to  Mortgagee,  or to the
holder of the Note, or to the assignees  thereof,  howsoever the indebtedness is
created, incurred, evidenced or acquired and whether said indebtedness is direct
or indirect,  absolute or contingent,  sole or joint,  primary or secondary,  or
evidenced by promissory  notes,  open  accounts or otherwise;  and all renewals,
modifications  or  extensions  of all or any of the  foregoing,  and  for and in
consideration of the sum of Ten and 00/100 Dollars ($10.00) paid by Mortgagee to
Mortgagor  this date,  and for other  valuable  considerations,  the receipt and
sufficiency  of which are hereby  acknowledged,  Mortgagor  does  hereby  grant,
bargain,  sell, alien, remise,  release,  convey,  assign,  transfer,  mortgage,
hypothecate,  pledge, deliver, set over, warrant and confirm unto Mortgagee, its
successors and assigns forever, certain lands lying and being situate in Broward
County, Florida, more particularly described as follows:

<Page>
                       SEE EXHIBIT "A" APPENDED HERETO AND
                      MADE A PART HEREOF (the "Property"),

      TOGETHER WITH all buildings,  structures and  improvements of every nature
whatsoever  now  or  hereafter  situated  on the  Property,  and  all  fixtures,
machinery,  appliances,  equipment,  furniture  and  property  of  every  nature
whatsoever,  now or  hereafter  owned by  Mortgagor  and  located  in or on,  or
attached to, or used, or intended to be used,  in connection  with the operation
of the Property, buildings,  structures, or other improvements, such as, without
limitation, all apparatus, machinery, appliances,  equipment, radiators, ranges,
refrigerators, awnings, shades, blinds, incinerating equipment, power equipment,
engines, pipes, pumps, tanks, motors, conduits, switchboards, lifting, cleaning,
fire prevention,  fire extinguishing,  ventilating and communications apparatus,
boilers, vacuum cleaning systems,  elevators,  escalators,  screens, storm doors
and  windows,   stoves,  wall  beds,  attached  cabinets,   partitions,   ducts,
compressors, rugs and carpets, draperies, furniture and furnishings;

      TOGETHER  WITH all  building  materials  and  equipment  now or  hereafter
delivered to the Property and intended to be installed  therein  including,  but
not limited to, lumber, plaster, cement, shingles, roofing, plumbing,  fixtures,
pipe, lath, wall-heaters,  screens, window frames, glass doors, flooring, paint,
lighting fixtures, and unattached refrigerating,  cooking, heating,  ventilating
and air  conditioning  ducts,  appliances  and  equipment,  goods,  tools,  lawn
equipment, floor coverings, and elevators;

      TOGETHER  WITH all right,  title and  interest of  Mortgagor in and to the
minerals,  soil, flowers, shrubs, crops, trees, timber, and other emblements now
or hereafter on the Property,  or under or above the same, or any part or parcel
thereof;

      TOGETHER  WITH  all  easements,  rights-of-way,   streets,  ways,  alleys,
passages,  sewer rights,  waters,  water courses,  water rights and powers,  and
sanitary and storm sewer systems,  now or hereafter owned by the Mortgagor which
are now or hereafter located by, over, and/or upon the Property, or any part and
parcel  thereof,  and which  water  system  includes  all water  mains,  service
laterals,  hydrants,  valves and appurtenances,  and which sewer system includes
all  sanitary   sewer  lines,   including   mains,   laterals,   manholes,   and
appurtenances;  and all paving for streets, roads, walkways or entrance ways now
or hereafter  owned by Mortgagor  and which are now or hereafter  located on the
Property,  or any part or  parcel  thereof,  and all  estates,  rights,  titles,
interests,  privileges,  liberties, tenements,  hereditaments, and appurtenances
whatsoever,  in  any  way  belonging,  relating  or  appertaining  to any of the
property  hereinabove  described,  or which  hereafter  shall in any way belong,
relate or be  appurtenant  thereto,  whether now owned or hereafter  acquired by
Mortgagor,  and the reversion and reversions,  remainder and remainders,  rents,
issues  and  profits  thereof,  and  all the  estate,  right,  title,  interest,
property, possession, claim and demand whatsoever, at law, as well as in equity,
of  Mortgagor  of,  in,  and to the same,  including,  but not  limited  to, all
judgments,  awards of damages and  settlements  hereafter  made  resulting  from
condemnation  proceedings or the taking of the Mortgaged  Property,  or any part
thereof, under the power of eminent domain, or for any damage (whether caused by
such taking or otherwise) to the Mortgaged Property,  or any part thereof, or to
any rights  appurtenant  thereto.  Also,  all  architectural  building plans and
specifications and all abstracts of title relating to the Mortgaged Property;

                                       2
<PAGE>

      TOGETHER WITH all of  Mortgagor's  right,  title and interest as lessor in
and to all leases or rental  arrangements of the Property,  or any part thereof,
heretofore  made  and  entered  into,  and  in  and  to  all  leases  or  rental
arrangements  hereafter  made and  entered  into by or on behalf  of  Mortgagor,
together with all rents and payments in lieu of rents, together with any and all
guarantees of such leases or rental  arrangements  and including all present and
future security deposits and advance rentals;

      TOGETHER WITH all of  Mortgagor's  right,  title and interest as seller in
and to all  agreements for the sale of the Property,  the Mortgaged  Property or
any part  thereof,  heretofore  made and  entered  into,  and in and to all sale
agreements  hereafter  made and  entered  into,  by or on behalf  of  Mortgagor,
together with all deposits and payments in connection  therewith,  together with
any and all guarantees of such agreements, together with any and all receivables
now or hereafter due Mortgagor with respect to such agreements;

      TOGETHER WITH all of Mortgagor's  right,  title and interest in and to all
unearned  premiums accrued,  accruing,  or to accrue under any and all insurance
policies now or hereafter provided pursuant to the terms of security agreements,
and all  proceeds or sums  payable for the loss of or damage to (a) the Property
or personal property, or (b) rents,  revenues,  income, profits or proceeds from
service agreements or contracts, leases, franchises,  concessions or licenses of
or on any part of the Property;

      TOGETHER WITH all contracts and contract  rights and accounts of Mortgagor
now or  hereafter  arising  from  contracts  now or  hereafter  entered  into in
connection  with  development,  construction  upon, or operation of the Property
(including,  without limitation,  all warranties or guaranties by third parties,
all deposits held by or on behalf of Mortgagor,  and all management,  franchise,
license  and  service  agreements  related  to the  business  now  or  hereafter
conducted by Mortgagor on the Property);

      TOGETHER WITH all accounts, contract rights, goods, inventory,  intangible
personal  property,   permits,  licenses,  liquor  licenses,  and  all  personal
property,  whether  actually or  constructively  attached to, connected with, or
associated with the Property;

      TOGETHER WITH all of the right,  title and interest of Mortgagor in and to
any trademarks,  trade names,  names of businesses,  or fictitious  names of any
kind used in conjunction  with the operation of any business or endeavor located
on the Property;

      TOGETHER WITH all of Mortgagor's interest in all utility security deposits
or bonds on the Property or any part or parcel thereof;

      TOGETHER  WITH all  instruments,  documents,  chattel  papers and  general
intangibles relating to or arising from the foregoing  collateral,  and all cash
and non-cash proceeds and products thereof; and

                                       3
<PAGE>

      TOGETHER  WITH  all  products,  proceeds,  additions,   improvements,  and
accessions  thereto and  replacements,  renewals,  accessions,  or substitutions
thereto, in and to any of the items hereinabove set forth.

      Mortgagor hereby grants to Mortgagee a security  interest in all fixtures,
rights in action and personal  property  described  herein.  This  Mortgage is a
self-operative  security  agreement with respect to such  property,  even though
Mortgagor   agrees  to  execute  and  deliver  on  demand  such  other  security
agreements,  financing statements and other instruments as Mortgagee may request
in order to perfect  its  security  interest  or to impose the lien  hereof more
specifically upon any of such property. Mortgagor additionally hereby authorizes
Mortgagee  to  record  and file from  time to time  such  financing  statements,
amendment  statements,  continuation  statements  and such other  instruments as
Mortgagee  shall  require,  in its sole  discretion,  in order  to  perfect  its
security  interest provided  hereunder.  Mortgagee shall have all the rights and
remedies  in  addition to those  specified  herein of a secured  party under the
Uniform  Commercial Code (the "Code").  Mortgagor  shall,  from time to time, on
request of Mortgagee, deliver to the Mortgagee an inventory of all such articles
of personal property in reasonable  detail.  Mortgagor  covenants and represents
that all such  personal  property  now is,  and that all  replacements  thereof,
substitutions  therefor  and  additions  thereto,   unless  Mortgagee  otherwise
consents,  will be free and clear of superior  liens,  encumbrances  or security
interests of others.  Furthermore,  in the event of default,  the parties  agree
that,  in the event the  Mortgagee  should elect to proceed with respect to said
properties  under the Code,  five (5) days notice of the sale  thereof  shall be
reasonable notice.

      Without the  necessity of any further act of Mortgagor or  Mortgagee,  the
lien of and  security  interest  created  by this  Mortgage  Deed  and  Security
Agreement  automatically  will extend to and  include:(i)  any and all renewals,
replacements,  substitutions,  accessions,  proceeds,  products,  additions  and
after-acquired  property of any nature whatsoever attached to, located in or on,
or used in the  operation  of the  Mortgaged  Property or any part  thereof (and
Mortgagor  covenants and warrants  that it will have good and absolute  title to
all of the aforesaid  after-acquired  property free of any lien or encumbrance),
and (ii) any and all monies, proceeds and other property that from time to time,
either by delivery to Mortgagor or by any  instrument  (including  this Mortgage
Deed and  Security  Agreement),  may be  subjected  to such  lien  and  security
interest by Mortgagor or by anyone on behalf of  Mortgagor,  or with the consent
of Mortgagor,  or which  otherwise may come into the  possession or otherwise be
subjected to the control of Mortgagee  or  Mortgagor  pursuant to this  Mortgage
Deed and Security Agreement or any associated loan document.

      Additionally,  Mortgagor  hereby  assigns to Mortgagee all of  Mortgagor's
rights  and  interests  as lessor in any leases now or  hereafter  existing  and
affecting the Property  described  herein  together  with all rents,  income and
profits  due and  becoming  due  therefrom,  which  leases  shall be subject and
subordinate  to this  Mortgage  in all  respects.  In the  event of any  default
occasioning  acceleration under this Mortgage or the Note,  Mortgagor authorizes
Mortgagee to demand and collect all rents  accruing from the Mortgaged  Property
and apply the same to the  outstanding  indebtedness  and any payments thus made
and  applied  shall not cure any  default  or impair  the  Mortgagee's  right to
proceed with any legal  action to collect its entire  mortgage  debt.  Mortgagor
hereby authorizes  Mortgagee to give notice in writing of this assignment at any
time to any  tenant  whose  lease is  assigned  to  Mortgagee  by virtue of this
provision.  Prior to the occurrence of an Event of Default, Mortgagor shall have
the right to collect  said rents;  provided  however,  that even before  default
occurs,  no advance rent (other than one (1) month's advance rent and a security
deposit) shall be collected. Mortgagor further agrees to take no other act which
would impair or destroy the rights and benefits of Mortgagee hereunder.

                                       4
<PAGE>

      The Property and all of the foregoing items are  collectively  referred to
as the "Mortgaged Property".

      TO HAVE  AND TO HOLD  the  same,  with the  tenements,  hereditaments  and
appurtenances thereunto belonging unto Mortgagee.

      PROVIDED,  HOWEVER,  that if Mortgagor  shall  promptly pay or cause to be
paid to  Mortgagee  all sums  payable  under the  Note,  at the times and in the
manner  stipulated  therein,  all without any  deductions or credit for taxes or
other similar charges paid by Mortgagor,  as well as all future advances and all
other  sums  and  indebtedness,  obligations  and  liabilities  for  which  this
instrument is security,  and shall keep,  perform and observe all other promises
in the Note and any renewals,  extensions,  or modifications  thereof,  and also
provided  that if Mortgagor  shall  promptly  keep,  perform and observe all the
covenants and  conditions  in this Mortgage Deed and Security  Agreement and any
extension or modifications  thereof,  and in all other instruments  securing the
Note, to be kept,  performed or observed by Mortgagor,  then this Mortgage,  and
all the properties,  interest, and rights hereby granted,  conveyed and assigned
shall cease and be void, but shall otherwise remain in full force and effect.

                                   ARTICLE ONE
                             COVENANTS OF MORTGAGOR

      Mortgagor covenants and agrees with Mortgagee as follows:

      1.01 Performance of Note,  Mortgage,  and other Loan Documents.  Mortgagor
shall  perform,  observe  and comply  with all  provisions  of the Note and will
promptly pay to Mortgagee the principal and interest  thereon and all other sums
required to be paid by Mortgagor  under the Note when payment  shall become due,
all  without  deduction  or credit for taxes or other  similar  charges  paid by
Mortgagor,  and Mortgagor shall perform,  observe and comply with all provisions
of this Mortgage,  together with all other documentation  executed in connection
herewith.

      1.02 Warranty of Title.  Mortgagor is indefeasibly seized of the Mortgaged
Property in fee simple; that Mortgagor has full power and lawful right to convey
the Mortgaged  Property in fee simple as aforesaid;  that it shall be lawful for
Mortgagee  at all times  hereafter  peaceably  and quietly to enter upon,  hold,
occupy and enjoy the Mortgaged  Property;  that the Mortgaged Property and every
part thereof is free from all liens and encumbrances except for (a) that certain
first  mortgage in favor of Charley  Zeches,  in her  capacity as Trust of LAKES
HOLDING  TRUST  U/A  dated  July 27,  2001,  having an  outstanding  balance  of
$7,000,000 ("Zeches  Mortgage"),  (b) 2005 and subsequent year's taxes which are
not  yet due  and  owing  and (c)  the  recorded  special  exceptions  expressly
identified in any mortgagee  title insurance  policy accepted by Mortgagee,  and
that Mortgagor will make such other and further  assurances to perfect the title
to the Mortgaged  Property in Mortgagee as may  hereafter be required;  and that
Mortgagor does hereby fully warrant the title to the Mortgaged Property and will
defend  the same  against  the  lawful  claims of all  persons  whomsoever.  For
purposes of this  Article,  record  notice of any title  defect shall not in any
manner  constitute   notice  to  Mortgagee  of  such  title  defect.   Mortgagor
acknowledges  that Mortgagee is acting in reliance upon the above warranties and
representations of Mortgagor concerning title to the Mortgaged Property.

                                       5
<PAGE>

      1.03 Zoning.  All  applicable  zoning  laws,  ordinances  and  regulations
affecting  the  Mortgaged  Property  permit the current use and occupancy of the
Mortgaged  Property and the intended  uses to be made by Mortgagor as relayed to
Mortgagee.

      1.04 Taxes and Liens, and Utility Charges.

            (a) Mortgagor shall pay promptly,  when and as due (and on or before
such date so as to obtain the  maximum  available  discount),  and  shall,  upon
Mortgagee's  request,  promptly exhibit to Mortgagee receipts for the payment of
all taxes,  assessments,  rates, dues,  charges,  fines and impositions of every
kind whatsoever now or hereafter imposed, levied or assessed upon or against the
Mortgaged Property or any part thereof,  or upon or against this Mortgage or the
indebtedness  or other sums secured  hereby,  or upon or against the interest of
Mortgagee in the Mortgaged  Property,  as well as all income taxes,  assessments
and other  governmental  charges  levied and  imposed  by the  United  States of
America or any state,  county,  municipality,  borough or other taxing authority
upon or against  Mortgagor or in respect of the  Mortgaged  Property or any part
thereof, and any charge which, if unpaid, would become a lien or charge upon the
Mortgaged  Property  before  they  become  delinquent  and before  any  interest
attaches or any penalty is incurred.

            (b)  Mortgagor   shall  not  permit  or  suffer  any   construction,
contractor's, mechanic's, laborer's, or materialmen's statutory or other lien to
be created or to remain a lien upon any of the Mortgaged Property, which lien is
not released or terminated within thirty (30) days of the filing thereof.

            (c) Notwithstanding any other provision of this Mortgage,  Mortgagor
shall  have the right to  contest  any  taxes,  liens and  charges  provided  it
proceeds with due diligence and gives  Mortgagee  adequate  assurance by bonding
such  disputed  liens or by  depositing  the amounts of such  disputed  taxes or
charges with Mortgagee,  which deposited amounts shall be returned to Mortgagor,
upon  resolution  of such  contest and  evidence  satisfactory  to  Mortgagee of
Mortgagor's compliance with any determination thereof.

            (d) In the event of the passage, after the date of this Mortgage, of
any law deducting from the value of the Mortgaged  Property,  for the purpose of
taxation, any lien thereon, or changing in any way the laws now in force for the
taxation  of  mortgages  or debts  secured  by  mortgages,  or the manner of the
collection of any such taxes, so as to affect this Mortgage, or imposing payment
of the whole or any portion of any taxes,  assessments or other similar  charges
against the Mortgaged Property upon Mortgagee,  the indebtedness  secured hereby
shall immediately  become due and payable at the option of Mortgagee;  provided,
however,  that if any such law shall impose a tax upon Mortgagee or increase any
tax now payable by Mortgagee, such election by Mortgagee shall be ineffective if
prior to the due date:  (i) Mortgagor is permitted by law and can become legally
obligated to pay such tax or the increased  portion  thereof (in addition to all
interest and charges payable  hereunder and under the Note); (ii) Mortgagor does
pay such tax or increased portion;  and (iii) Mortgagor agrees with Mortgagee in
writing to pay,  or  reimburse  Mortgagee  for the  payment  of, any such tax or
increased  portion  thereof  when  thereafter  levied or  assessed  against  the
Mortgaged  Property or any portion  thereof.  The obligations of Mortgagor under
such agreement shall be secured hereby.

                                       6
<PAGE>

      1.05 Insurance.  Mortgagor  shall obtain,  deliver to and maintain for the
benefit of Mortgagee  (and without  cost to  Mortgagee)  during the term of this
Mortgage,  with all  premiums  paid  thereon and without  notice or demand,  the
following insurance with respect to the Mortgaged Property:

            (a) If and as  applicable,  Mortgagor  shall obtain,  deliver to and
maintain for the benefit of Mortgagee an "all risks"  permanent hazard insurance
policy along with a flood insurance  policy,  if the Mortgaged  Property is in a
designated  flood  plain  area.  The policy or  policies  must be from a company
satisfactory to Mortgagee, must cover all risks (with full replacement coverage)
required to be covered by Mortgagee (such as, but not limited to, fire, extended
coverage,  windstorm,  sprinkler leakage coverage, if applicable,  theft, boiler
explosion  coverage,  if  applicable,  building  ordinance or law coverage,  and
vandalism coverage) and must be in an amount satisfactory to Mortgagee and in no
event  less  than the  amount  due under  the Note and  sufficient  to avoid the
application  of any  co-insurance  provisions,  must  include  provisions  for a
minimum thirty (30) day prior written notice to Mortgagee of any intended policy
cancellation  or  non-renewal,  and must designate  Mortgagee as a mortgagee and
loss payee.

            (b) Mortgagor shall obtain, deliver to, and maintain for the benefit
of Mortgagee (general comprehensive public) liability insurance (i.e. commercial
general  liability  insurance)  against  claims  for  bodily  injury,  death and
property damage occurring in, on or about the Mortgaged Property in such amounts
as may be required by Mortgagee but not less than Two Million and 00/100 Dollars
($2,000,000.00)  in the case of  bodily  injury  or death  to one  person,  Five
Million and 00/100  Dollars  ($5,000,000.00)  in any one  occurrence  and in the
annual aggregate, and Two Million and 00/100 Dollars ($2,000,000.00) in the case
of  property  damage.  The  general  comprehensive  public  liability  insurance
policies must be from a company  reasonably  satisfactory  to Mortgagee and must
include  provisions for a minimum of thirty (30) days advance  written notice to
Mortgagee of any intended policy  cancellation or non-renewal and must designate
Mortgagee as a mortgagee and an additional named insured.

            (c) If  required  by  Mortgagee,  and  otherwise  applicable  to the
business of Mortgagor,  Mortgagor shall obtain,  deliver to and maintain for the
benefit of Mortgagee,  Workers'  Compensation  Insurance in the statutory amount
naming Mortgagor as owner of the Mortgaged Property.

            (d) Mortgagor shall obtain,  deliver to and maintain for the benefit
of Mortgagee insurance coverage (and changes to the above  requirements)  during
the term of this  Mortgage  in such  amounts and to protect  against  such other
insurable  hazards,  casualties and  contingencies as may, from time to time, be
required by Mortgagee.

                                       7
<PAGE>

            (e) Notwithstanding anything contained in this Mortgage or the other
loan  documents  to the  contrary,  each  insurance  policy  required  hereunder
(liability,  casualty or builder's risk  insurance)  shall include  coverage for
acts  of  terrorism.  If  the  applicable  insurance  policy  excludes  acts  of
terrorism,  Mortgagor  shall be  required to purchase  separate  insurance  that
covers  acts  of  terrorism,  which  insurance  shall  be in  form  and  content
acceptable to Mortgagee, in its sole discretion.

      All  policies of insurance  required  hereunder  shall:  (a) be written by
carriers  which are licensed or authorized to transact  business in the State of
Florida and are rated  "B+"-Class XI or better according to the latest published
Best Key Rating Guide,  and which shall  otherwise be acceptable to Mortgagee in
all other  respects;  (b) provide that the Mortgagee  shall receive a minimum of
thirty  (30) days prior  written  notice  from the issuer  before  cancellation,
modification, material change or non-renewal of the policy; (c) provide for full
replacement;  (d) be written without a deductible provision and for such amounts
as are sufficient to prevent Mortgagor from becoming excessively self-insured or
a co-insurer thereunder; (e) contain no exclusion for acts of terrorism; and (f)
provide that Mortgagee be protected as a lien holder,  regardless of any actions
of  Mortgagor.  Mortgagor  shall  pay  promptly  when due any  premiums  on such
insurance policies and on any renewals thereof.  The form of such policies,  the
companies  issuing  them and the amount of coverage  which is required  shall be
acceptable to Mortgagee. Each policy, including policies for any amounts carried
in excess of the  required  minimum and policies  not  specifically  required by
Mortgagee,  shall be maintained in full force and effect, shall be assigned, and
the original policies delivered to Mortgagee with premiums prepaid. All policies
shall be endorsed  with a standard  mortgagee  clause in favor of  Mortgagee  as
first mortgagee, not subject to contribution or assessment.  If the insurance or
any part thereof  shall expire or be withdrawn or become void or  inadequate  by
Mortgagor's breach of any condition  thereof,  or become void or insufficient by
reason of the failure or  impairment  of the capital of any company in which the
insurance  may then be carried,  or if for any reason  whatsoever  the insurance
shall be unsatisfactory to Mortgagee, Mortgagor shall place new insurance on the
Mortgaged Property,  satisfactory to Mortgagee.  The original policies, with the
premiums  paid,  shall be delivered to Mortgagee  upon the execution  hereof and
renewal policies with the premiums paid shall be delivered to Mortgagee at least
thirty (30) days before  expiration of the old  policies.  In the event of loss,
Mortgagor will give immediate notice thereof to Mortgagee and Mortgagee may make
proof  of loss if not  made  promptly  by  Mortgagor  and  Mortgagee  is  hereby
appointed  attorney-in-fact for Mortgagor,  which appointment is coupled with an
interest,  to make  said  proof  of loss  and give a  receipt  for any  proceeds
collected  under such  policies.  Each  insurance  company  concerned  is hereby
authorized  and  directed  to make  payment  under such  insurance,  directly to
Mortgagee.  All such  policies  herein  are  hereby  assigned  to  Mortgagee  as
additional  security  for the payment of the  indebtedness  hereby  secured.  If
Mortgagee becomes the owner of the Mortgaged  Property,  or any part thereof, by
foreclosure or otherwise,  such  policies,  including all rights and interest of
the Mortgagor thereunder, shall become the absolute property of Mortgagee.

      The address of the  Mortgagee  under any  mortgagee  and loss payee clause
shall be set forth as follows:

                                       8
<PAGE>

                         Mitchell Entertainment Company
                         7220 NW 36th Street, Suite 100
                         Miami, Florida 33166

      After the  occurrence  of an Event of Default,  at the option of Mortgagee
and assuming the mortgagee under the Zeches Mortgage has not otherwise exercised
this option,  Mortgagor  shall pay to  Mortgagee,  together  with the  regularly
scheduled  payment due under the Note, a sum equal to one-twelfth  (1/12) of the
annual amount necessary to pay all insurance premiums so as to keep all required
insurance on the  Mortgaged  Property in full force and effect.  All monies thus
paid shall be held by  Mortgagee  without  interest and in  accordance  with the
terms and provisions of Paragraph  1.06 below,  subject to any prior exercise by
the mortgagee under the Zeches Mortgage.

      1.06 Escrow Account.  Mortgagor shall pay to Mortgagee,  together with and
in addition to the payment of  principal  and  interest  payable  under the Note
secured hereby, an amount  reasonably  sufficient (as estimated by Mortgagee) to
provide Mortgagee with funds to pay such taxes, assessments,  insurance premiums
(insurance  premiums  to  be  paid  only  if  required  by  Mortgagee  and  upon
notification from Mortgagee),  and other charges next due so that Mortgagee will
have  sufficient  funds on hand to pay the same at least thirty (30) days before
whichever of the following dates first occurs: (a) the date on which they become
past due; (b) the date on which there is any discount  loss;  or (c) the date on
which  there is  additional  interest  or  penalty  charged.  In no event  shall
Mortgagee  be liable for any  interest on any amount paid to it under any escrow
requirement herein (unless required by applicable law) and the money so received
may be held in a special  escrow  account  properly  designated for the purposes
designated above or may be commingled with the general funds of Mortgagee.  Upon
demand of Mortgagee,  Mortgagor shall deliver to Mortgagee,  within fifteen (15)
days after such demand, such additional sums of money as are necessary to enable
Mortgagee to pay the above noted impositions,  premiums and charges when due. In
the case of a default by  Mortgagor  hereunder,  Mortgagee  may apply any amount
under  this  paragraph  remaining  to  Mortgagor's  credit to the  reduction  of
principal or interest or any other charge due and owing hereunder, at such times
and in such a manner as  Mortgagee  shall  determine,  in its sole and  absolute
discretion.  Upon payment in full of the indebtedness  secured by this Mortgage,
the amount of any unused escrow funds shall be paid over to the person or entity
entitled to receive the same. This Section 1.06 shall be subject and subordinate
to the rights of the mortgagee under the Zeches Mortgage.

      1.07  Condemnation.  If all  or  any  substantial  part  of the  Mortgaged
Property shall be damaged or permanently taken through  condemnation (which term
when  used in this  Mortgage  shall  include  any such  damage  or  taking  by a
governmental  authority,  and any transfer by private sale in lieu thereof), the
entire  indebtedness  secured hereby shall,  at the option of Mortgagee,  become
immediately  due and payable.  Subject to the rights of the mortgagee  under the
Zeches  Mortgage,  Mortgagee shall be entitled to all  compensation,  awards and
other  payments  or relief  therefor.  All such  compensation,  awards and other
payments or relief  therefor  are hereby  assigned by  Mortgagor  to  Mortgagee.
Mortgagee may release any monies so received by it without affecting the lien of
the Mortgage or may apply the same in such manner as Mortgagee shall  determine,
to the reduction of the  indebtedness  secured by this Mortgage and then, if any
surplus remains after such application, such surplus shall be paid to Mortgagor.
Mortgagor  agrees to execute  such  further  assignments  of any  compensations,
awards and other payments or relief for any such  condemnation  as Mortgagee may
require.

                                       9
<PAGE>

      Notwithstanding  the foregoing,  however,  Mortgagee shall, at its option,
have the right to appear in and defend any condemnation suit in its own name.

      1.08 Care of Property/Restoration Upon Casualty or Condemnation.

            (a) Mortgagor shall preserve and maintain the Mortgaged  Property in
good  condition  and repair.  Mortgagor  shall not remove or demolish,  alter or
change the use of any  building,  structure  or other  improvement  presently or
hereafter  on the  Mortgaged  Property  without  the prior  written  consent  of
Mortgagee. Mortgagor shall not permit, commit or suffer any waste, impairment or
deterioration  of the Mortgaged  Property or of any part  thereof,  and will not
take any action which will materially  increase the risk of fire or other hazard
to the Mortgaged Property or to any part thereof.

            (b) Except as  otherwise  provided  in this  Mortgage,  no  fixture,
personal  property or other part of the Mortgaged  Property  shall be removed or
materially demolished without the prior written consent of Mortgagee.  Mortgagor
may  sell or  otherwise  dispose  of,  free  from  the  lien  of this  Mortgage,
furniture,  furnishings,  equipment, tools, appliances,  machinery,  fixtures or
appurtenances,   subject  to  the  lien  hereof,  which  may  become  worn  out,
undesirable  or obsolete  only if they are  replaced  concurrently  with similar
items of at least  equal value  which  shall,  without  further  action,  become
subject to the lien of this Mortgage.

            (c) Mortgagee  may enter upon and inspect the Mortgaged  Property at
any reasonable time during the term of this Mortgage.

            (d) Mortgagor will promptly comply with all present and future laws,
ordinances,  rules and regulations of any governmental  authority  affecting the
Mortgaged  Property or any part  thereof.  Mortgagor  reserves and maintains the
right if Mortgagor  deems any item referred to in this  Paragraph  1.08(d) to be
illegal,  improperly  applied or otherwise  inconsistent with the legal right of
Mortgagor,  to contest  and/or  litigate  such item so long as the  validity  is
contested by Mortgagor  with  diligence  and in good faith and with  appropriate
deposits,  if  required,  paid  in  escrow  with  the  Clerk  of the  Court,  if
appropriate,  so that  accumulation of penalties are avoided or, if not avoided,
an additional deposit  sufficient to cover all such penalties.  In the event any
payment  of the  whole of any  amount  due shall be  necessary  to  prevent  any
foreclosure on the Mortgaged Property, then Mortgagor shall pay all such amounts
in sufficient time to prevent any such foreclosure.

            (e) If the  Mortgaged  Property  or any part  thereof  is damaged or
destroyed by fire,  by  condemnation,  or any other cause,  Mortgagor  will give
immediate written notice of the same to Mortgagee.

            (f) Each property  insurance  policy shall provide that the proceeds
of  insurance  paid on  account of any damage or  destruction  to the  Mortgaged
Property,  or any part  thereof,  shall  be paid to  Mortgagee.  Mortgagor  also

                                       10
<PAGE>

acknowledges that all proceeds of condemnation (i.e.,  compensation,  awards and
other payment or relief  therefor)  have been assigned by Mortgagor to Mortgagee
(such  proceeds of  insurance  and  condemnation  are  hereinafter  collectively
referred to as the  "Proceeds").  Mortgagor shall promptly  deliver to Mortgagee
any Proceeds  which are paid  directly to  Mortgagor  by the casualty  insurance
carrier or by any governmental or quasi-governmental  authority. In the event of
damage or destruction to the Mortgaged Property or any portion thereof,  whether
insured  or  uninsured,  or if any  part  of the  Mortgaged  Property  shall  be
physically  damaged through  condemnation,  Mortgagor shall, as set forth above,
give immediate  written notice thereof to Mortgagee and Mortgagee shall have the
option,  in its sole  and  absolute  discretion,  to apply  any  portion  of the
Proceeds to the payment of the  indebtedness  evidenced by the Note, or to allow
all or any  portion of the  Proceeds to be used for the  restoration,  repair or
replacement  of the  Mortgaged  Property or  applicable  part thereof under such
conditions as may be established by Mortgagee.

      1.09 After Acquired Property. The lien of this Mortgage will automatically
attach,  without further act, to all after acquired  personal  property owned by
Mortgagor  located in or on, or  attached  to, or used or intended to be used in
connection  with,  the  Mortgaged  Property or any part  thereof.  It shall also
attach,  without  further act, to any real property now or hereafter  during the
term of this Mortgage  acquired by Mortgagee or its affiliates which is adjacent
or  reasonably  proximate  to  the  Mortgaged  Property  ("Adjacent  Property").
However,  Mortgagor agrees to execute and deliver to Mortgagee,  within ten (10)
days after  request,  any  documentation  reasonably  required by  Mortgagee  to
perfect the "spreading" of the lien of this Mortgage to such Adjacent Property.

      1.10 Expenses. Mortgagor shall pay, or reimburse Mortgagee, for all costs,
fees,  charges,  taxes (including,  without  limitation,  documentary stamp tax,
intangible  taxes  (recurring  and  nonrecurring))  and  expenses of every kind,
including the cost of an abstract of title to said lands, found to be convenient
or expedient in connection  with any suit for the  foreclosure of this Mortgage,
and also including  reasonable  attorneys' fees incurred or expended at any time
by Mortgagee because of the failure of Mortgagor to pay the Note as agreed or of
Mortgagor  to perform,  comply with,  and abide by all or any of the  covenants,
conditions  and  stipulations  of this Mortgage  and/or the other loan documents
evidencing or securing the Note, and in the  foreclosure of this Mortgage and in
collecting the amount due under the Note secured  hereby,  with or without legal
proceedings,  and to  reimburse  Mortgagee  for every  payment made for any such
purpose  with  interest  from date of every such payment at the Default Rate (as
defined in the Note);  such payments and  obligations,  with interest thereon as
aforesaid,  shall be  secured  by the lien  hereof.  Any  judgment  obtained  by
Mortgagee  against  Mortgagor  as to any  amounts  due  under  the  Note or this
Mortgage shall also bear interest at the Default Rate.

      1.11 Books and Records.  Mortgagor will keep complete books and records of
account in accordance with generally accepted accounting principles consistently
applied ("GAAP") covering and relating to the Mortgaged Property and will permit
Mortgagee  or  Mortgagee's  agents,  accountants  and  attorneys  to inspect the
Mortgaged  Property and examine  Mortgagor's books and records as they relate to
the  Mortgaged  Property,  at  such  reasonable  times  as may be  requested  by
Mortgagee, and at Mortgagee's sole cost.

                                       11
<PAGE>

      1.12 Mortgagor as Lessor. Mortgagor shall faithfully perform the covenants
and  agreements  of  Mortgagor  as lessor  under any present  and future  leases
affecting all or any portion of the Mortgaged  Property,  and neither neglect to
do, nor permit to be done, anything which may diminish or impair their value, or
the rents provided for therein or thereunder.  Mortgagor  agrees:  (a) that said
leases shall remain in full force and effect  irrespective  of any merger of the
interest of the lessor and lessee  thereunder  and that it will not  transfer or
convey the title to the Mortgaged  Property or any portion thereof to any of the
lessees; (b) not to enter into any new lease agreement,  with respect to a 5,000
square foot or greater  portion of the  Property or with respect to a portion of
the Property which is less than 5,000 square feet, unless the rent payable under
such lease  agreement  represents the fair market value for the lease of a space
of similar size and character to the space rented under such lease  agreement or
terminate or materially modify or amend said leases or any of the terms thereof,
or grant any concessions in connection  therewith,  either orally or in writing,
or to accept a surrender  thereof  without the written  consent of the Mortgagee
and  that  any  attempted  execution  of  any  new  lease  or  any  termination,
modification,  or amendment of any lease or leases without such written  consent
shall be null and void;  (c) not to collect any  advance  rents other than first
and last month's  advance rent and a security  deposit;  (d) not to discount any
future  accruing rents,  except in the ordinary  course of business;  (e) not to
execute any other assignments of any lease or any interest therein or any of the
rents thereunder;  (f) to perform all of Mortgagor's covenants and agreements as
lessor  under said  leases  and not to suffer or permit to occur any  release of
liability  of the lessees,  or any rights of the lessees to withhold  payment of
rent;  and to give prompt  notice to  Mortgagee  of any notice of default on the
part of Mortgagor  with respect to said leases  received  from the lessees;  (g)
that none of the rights or remedies of Mortgagee  under this  Mortgage  shall be
delayed  or in  any  way  prejudiced  by  assignment;  (h)  notwithstanding  any
variation  of the terms of this  Mortgage or any  extension  of time for payment
hereunder or any release of part or parts of the lands conveyed  hereunder,  the
leases and benefits  thereby  assigned shall continue as additional  security in
accordance with the terms hereof;  (i) not to alter,  modify or change the terms
of any guarantees  with respect to the leases without the prior written  consent
of Mortgagee,  except in the ordinary course of business;  (j) not to consent to
any assignment of any lease or leases, or any subletting thereunder,  whether or
not in  accordance  with  their  terms,  without  the prior  written  consent of
Mortgagee,  except in the  ordinary  course  of  business;  (k) not to  request,
consent to,  agree to, or accept a  subordination  of any lease or leases to any
mortgage or other encumbrance now or hereafter affecting the Mortgaged Property,
except for this  Mortgage if  requested  by  Mortgagee;  (l) not to exercise any
right  of  election,  whether  specifically  set  forth  in any  such  lease  or
otherwise,  which would in any way diminish  the lessee's  liability or have the
effect of shortening the stated term of the lease, except in the ordinary course
of business; (m) not to sell, transfer,  assign, or remove any personal property
now or hereafter located on the Mortgaged  Property,  unless such action results
in  substitution or replacement  with similar items,  owned by Mortgagor and not
otherwise  encumbered,  of equal  value,  without the prior  written  consent of
Mortgagee;  and (n) not to enter into any new lease agreement with any operating
dry  cleaner  or  gasoline  service  station  or any  similar  type or  types of
establishment  without first obtaining the written  consent of Mortgagee,  which
may be withheld by  Mortgagee,  in its sole and absolute  discretion.  Mortgagor
shall procure and deliver to Mortgagee at the time of executing the Mortgage, or
at any time within thirty (30) days after notice and demand, estoppel letters or
certificates from each lessee, tenant or occupant in possession of the Mortgaged
Property,  as required by, and in form and substance  satisfactory to, Mortgagee
and deliver to Mortgagee a recorded  assignment of all the lessor's  interest in
such leases, in form and substance

                                       12
<PAGE>

satisfactory  to Mortgagee (in addition to the assignment and mortgage  herein),
and proof of proper service of a copy of such assignment on each lessee,  either
personally or by prepaid certified mail, return receipt requested.  All forms of
lease,  rental or use  agreements  (and  amendments  thereto) for the  Mortgaged
Property, or any part thereof,  shall be submitted to Mortgagee for approval for
lending  purposes  prior  to  becoming  binding  upon  Mortgagor,   unless  this
requirement is waived in writing by Mortgagee.

      1.13 Environmental  Contamination/Hazardous  Wastes.  Mortgagor shall keep
and maintain the Mortgaged  Property in compliance  with, and shall not cause or
permit the Mortgaged Property to be in violation of, any federal, state or local
laws, ordinances or regulations,  including,  without limitation, those relating
to zoning,  building,  occupational safety and health,  industrial hygiene or to
the  environmental  conditions  on,  under  or  about  the  Mortgaged  Property,
including, but not limited to soil and ground water conditions.  Mortgagor shall
not use,  generate,  manufacture,  store or dispose  of, on,  under or about the
Mortgaged  Property or transport to or from the Mortgaged Property any flammable
explosives, radioactive materials, including, without limitation, any substances
defined as or included in the definition of "hazardous  substances,"  "hazardous
wastes,"  "hazardous  materials,"  and "toxic  substances"  under any applicable
federal or state laws or regulations (collectively, the "Hazardous Materials").

      Mortgagee,  at its sole option and at Mortgagor's  expense, may obtain, at
any time and from time to time  (but not more than once in any 12 month  period,
unless there exists reasonable  evidence of contamination of or at the Mortgaged
Property or in proximity thereof,  or the existence of Hazardous Materials at or
upon the Mortgaged  Property or in proximity  thereof) so long as any obligation
hereunder remains unsatisfied, an environmental assessment or audit certified to
Mortgagee from a reputable  environmental engineer of Mortgagee's choice for the
purpose of determining  whether the Mortgaged  Property has been or presently is
being  used  for the  handling,  storage,  transportation,  or  disposal  of any
Hazardous  Materials  and/or to determine the existence of any  contamination on
the Mortgaged  Property or violation of any  environmental  law at the Mortgaged
Property,  whether caused off-site or on-site and whether caused by Mortgagor or
a third party. Said  environmental  assessment or audit shall include a study of
the existing  surface and subsurface  conditions of the Property and an analysis
of the  soil,  including  sufficient  test  borings  to  determine  whether  any
contamination  exists.  Mortgagor  hereby  grants to  Mortgagee,  its agents and
contractors, an irrevocable license to enter upon the Mortgaged Property for the
purpose of conducting  any  environmental  testing  desired by Mortgagee,  which
license shall remain in place until this Mortgage has been  satisfied of record.
In the event  Mortgagee  requests such a report and said report  indicates  such
handling,  storage,  transportation,  or disposal of any Hazardous Materials, or
the existence of any contamination on the Mortgaged Property or violation of any
environmental law in connection with the Mortgaged  Property,  the same shall be
and  constitute,  at the option of  Mortgagee,  an Event of  Default  hereunder.
Mortgagee  may  require  that  all  violations  of law with  respect  to same be
corrected and that Mortgagor obtain all necessary  environmental  permits before
Mortgagee  shall  fund any  initial or  subsequent  advance  under the Note,  at
Mortgagee's sole option.

      Mortgagor shall  immediately  advise  Mortgagee in writing of: (a) any and
all enforcement,  cleanup,  removal or other  governmental or regulatory actions
instituted, completed or threatened pursuant to any applicable federal, state or
local  laws,  ordinances  or  regulations  relating to any  Hazardous  Materials
affecting the Property (the "Hazardous  Materials Laws"); (b) all claims made or
threatened  by any third party  against  Mortgagor or the  Property  relating to
damage, contribution,  cost recovery compensation, loss or injury resulting from
any Hazardous  Materials (the matters set forth in subsections (a) and (b) above
are collectively  referred to herein as the "Hazardous  Materials Claims");  and
(c) Mortgagor's discovery of any occurrence or condition on any immovable (real)
property  adjoining  or in the  vicinity  of the  Property  that could cause the
Property or any part thereof to be subject to any restrictions on the ownership,
occupancy,  transferability or use of the Property under any Hazardous Materials
Laws.

                                       13
<PAGE>

      Mortgagee  shall have the right to join and  participate in, as a party if
it so elects,  any legal proceedings or actions initiated in connection with any
Hazardous  Materials  Claims  and to have  its  reasonable  attorneys'  fees and
paralegal  charges and all costs  incurred in connection  with such  proceedings
paid by  Mortgagor.  Mortgagor  shall  be  solely  responsible  for,  and  shall
indemnify,  defend  and hold  Mortgagee,  its  directors,  officers,  employees,
agents, successors and assigns harmless from and against any loss, damage, cost,
expense or liability,  directly or indirectly  arising out of or attributable to
the use, generation,  storage, release, threatened release, discharge, disposal,
or presence of Hazardous  Materials on, under or about the Property,  including,
without limitation:  (a) all foreseeable consequential damages; (b) the costs of
any required or necessary repair, cleanup or detoxification of the Property, and
the preparation and  implementation  of any closure,  remedial or other required
plans;  and (c) all  reasonable  costs and  expenses  incurred by  Mortgagee  in
connection  with  subsections  (a)  and  (b),  including,  but not  limited  to,
reasonable attorneys' fees and paralegal charges.

      Without Mortgagee's prior written consent, which shall not be unreasonably
withheld,  Mortgagor  shall  not take any  remedial  action in  response  to the
presence of any Hazardous  Materials on, under,  or about the Property nor enter
into any settlement agreement, consent decree, or other compromise in respect to
any Hazardous  Material Claims,  which remedial action,  settlement,  consent or
compromise  might,  in  Mortgagee's  reasonable  judgment,  impair  the value of
Mortgagee's  security  hereunder;  provided,  however,  that  Mortgagee's  prior
consent  shall not be  necessary  in the event that the  presence  of  Hazardous
Materials on, or under, or about the Property  either poses an immediate  threat
to the health,  safety or welfare of any  individual or is of such a nature that
an immediate  remedial  response is  necessary  and it is not possible to obtain
Mortgagee's  consent  before  taking such  action,  provided  that in such event
Mortgagor shall notify  Mortgagee as soon as practicable of any action so taken.
Mortgagee  agrees not to withhold  its  consent,  where such consent is required
hereunder,  if either (a) a particular  remedial action is ordered by a court of
competent   jurisdiction,   or  (b)  Mortgagor  establishes  to  the  reasonable
satisfaction  of  Mortgagee  that  there is no  reasonable  alternative  to such
remedial  action which would result in less  impairment of Mortgagee's  security
hereunder.

      Mortgagor  hereby agrees to indemnify  Mortgagee and hold  Mortgagee,  its
directors,  officers, employees, agents, successors and assigns harmless (except
to the  extent  caused by the gross  negligence  or  willful  misconduct  of the
Mortgagee) from and against any and all claims,  losses,  damages,  liabilities,
fines, penalties,  charges,  administrative and judicial proceedings and orders,
judgments,  remedial action  requirements,  enforcement actions of any kind, and
all costs and expenses  incurred in  connection  therewith  (including,  but not
limited to, attorneys' fees,  paralegal

                                       14
<PAGE>

charges and expenses),  arising directly or indirectly, in whole or in part, out
of (a) any  Hazardous  Materials  Claims  or (b) the  presence  on or under  the
Property  of any  Hazardous  Materials,  or any  releases or  discharges  of any
Hazardous Materials on, under or from the Property,  or (c) any activity carried
on or undertaken on or off the Property,  whether prior to or during the term of
this  Mortgage,  and whether by  Mortgagor  or any  predecessor-in-title  or any
employees,   agents,   contractors  or   subcontractors   of  Mortgagor  or  any
predecessor-in-title,  or any third persons at any time  occupying or present on
the Property,  in connection  with the handling,  treatment,  removal,  storage,
decontamination,  clean-up,  transport or disposal of any Hazardous Materials at
any time located or present on or under the Property.  The  foregoing  indemnity
shall further apply to any residual  contamination on or under the Property,  or
affecting any natural  resources,  and to any  contamination  of any property or
natural  resources  arising in connection  with the generation,  use,  handling,
storage, transport or disposal of any such Hazardous Materials, and irrespective
of whether any of such  activities were or will be undertaken in accordance with
applicable laws, regulations, codes and ordinances.

      Mortgagor agrees at all times to comply fully and in a timely manner,  and
to cause all tenants,  employees,  agents,  contractors  and  subcontractors  of
Mortgagor  and any other  persons  occupying  or present on the  Property  to so
comply,  with  all  applicable  federal,  state  and  local  laws,  regulations,
guidelines,  codes and ordinances  applicable to the use, generation,  handling,
storage,  treatment,  transport and disposal of any  Hazardous  Materials now or
hereafter  located or present on or under the Property,  and Mortgagor agrees to
indemnify,  defend  and hold  Mortgagee,  its  directors,  officers,  employees,
agents,  successors  and assigns,  harmless from and against any and all claims,
losses,  damages,  liabilities,  fines, penalties,  charges,  administrative and
judicial  proceedings  and  orders,  judgments,  remedial  action  requirements,
enforcement  actions  of any  kind,  and all  costs  and  expenses  incurred  in
connection therewith (including,  but not limited to reasonable attorneys' fees,
paralegal charges and expenses),  arising directly or indirectly, in whole or in
part,  from  any  failure  of  Mortgagor,   its  tenants,   employees,   agents,
contractors, subcontractors or other such persons, to comply with any such laws,
regulations, guidelines, codes or ordinances.

      The  obligations  of Mortgagor  to  indemnify,  defend and hold  Mortgagee
harmless  under this section shall survive any  foreclosure  of this Mortgage or
any transfer of the Property  whatsoever and repayment of the loan(s) secured by
this Mortgage.

      1.14 Mortgagee's Right to Perform Upon Defaults of Mortgagor. If Mortgagor
defaults in the payment of any tax, assessment, encumbrance or other imposition,
in its  obligation to furnish  insurance  hereunder,  or in the  performance  or
observance of any other covenant,  condition or term in this Mortgage, Mortgagee
may, at its option,  perform or observe the same  without  waiving any rights it
may have hereunder,  and all payments made (whether such payments are regular or
accelerated  payments)  and costs and expenses  incurred or paid by Mortgagee in
connection  therewith shall become due and payable  immediately.  The amounts so
incurred or paid by Mortgagee,  together  with  interest  thereon at the maximum
rate permitted by applicable law from the date incurred until paid by Mortgagor,
shall be added to the  indebtedness  and  secured by the lien of this  Mortgage.
Nothing contained herein shall be construed as requiring Mortgagee to advance or
expend  monies for any purposes  mentioned in this  paragraph,  or for any other
purpose. Mortgagee is hereby empowered to enter and to authorize others to enter
upon the Mortgaged Property or any part thereof for the purpose of performing or
observing  any such  defaulted  covenant,  condition or terms,  without  thereby
becoming  liable  to  Mortgagor  or  any  person  in  possession  holding  under
Mortgagor.

                                       15
<PAGE>

                                   ARTICLE TWO
                                    DEFAULTS

      2.01 Event of Default.  The term "Event of Default"  wherever used in this
Mortgage, shall mean any one or more of the following events:

            (a)  failure  by  Mortgagor  to pay  when  due any  installments  of
principal or interest as required  under the Note or any other default under the
terms and  provisions  of the Note or failure by Mortgagor to pay, when due, any
tax deposits, taxes, assessments,  liens, charges,  insurance premiums or to pay
said sums into the escrow account, if required hereunder; or

            (b) failure by Mortgagor to duly keep, perform and observe any other
covenant, condition or agreement in this Mortgage, any other instrument securing
the Note or any other  instrument  or loan  document  collateral  to the Note or
executed in connection with the sums secured hereby,  subject to the Cure Period
as set forth in the Note; or

            (c) the  commencement of levy,  execution or attachment  proceedings
against  Mortgagor,  or the  application  for or  appointment  of a  liquidator,
receiver,  custodian,  sequestrator,  conservator,  trustee,  or  other  similar
judicial officer; or

            (d) the insolvency in the bankruptcy or equity sense,  of Mortgagor;
or

            (e) the assignment for the benefit of creditors, or the admission in
writing of an  inability  to pay any debts  generally as they become due, or the
ordering, the winding-up or liquidation of its affairs, by Mortgagor; or

            (f)  the  commencement  of  a  case  against  Mortgagor,  under  any
insolvency,  bankruptcy,  creditor adjustment,  debtor rehabilitation or similar
laws,  state or federal,  or the  determination by any of them to request relief
under any insolvency,  bankruptcy, creditor adjustment, debtor rehabilitation or
similar proceeding, state or federal, including, without limitation, the consent
by any of  them  to the  appointment  of or  taking  possession  by a  receiver,
liquidator,  assignee, trustee, custodian,  sequestrator or similar official for
it or for any of its respective property or assets; or

            (g)  failure  to comply  with the  specific  prohibitions  contained
herein; or

            (h) if any warranty or representation of Mortgagor  contained herein
or  contained  in any of the  associated  loan  documents  prove to be untrue or
misleading in any material respect; or

            (i) if the  Mortgaged  Property  is subject to actual or  threatened
waste, or any part thereof, be removed, demolished or materially altered so that
the value of the Mortgaged Property is diminished; or

                                       16
<PAGE>

            (j) if any  federal  or state tax lien or claim of lien for labor or
material is filed of record against  Mortgagor or the Mortgaged  Property and is
not removed by payment or transfer of lien to bond within  thirty (30) days from
the date of recording; or

            (k) if foreclosure  proceedings  (whether  judicial or otherwise) be
instituted on any mortgage or any lien of any kind secured by any portion of the
Mortgaged Property; or

            (l) if  Mortgagor  defaults  under the Zeches  Mortgage or any other
loan made by Mortgagee to Mortgagor; or

            (m) the  incurrence of any additional  indebtedness,  secured by any
interest in the Property,  without the prior written consent of Mortgagee, which
consent shall be in the sole and absolute discretion of Mortgagee.

      2.02  Acceleration  of Maturity.  If default be made in the payment of the
principal sum or any installment  thereof or any interest thereon as provided in
the Note or if an Event of Default as defined  herein  occurs,  then, in any and
all such events,  the entire principal amount of the Note with all interest then
accrued thereon shall, at the option of Mortgagee and without notice  (Mortgagor
hereby  expressly  waives  notice of any such  default),  become  and be due and
payable.

      2.03  Mortgagee's  Right to Enter and Take  Possession,  Operate and Apply
Income.

            (a) If an Event of Default  shall  have  occurred,  Mortgagor,  upon
demand  of  Mortgagee,   shall  forthwith  surrender  to  Mortgagee  the  actual
possession and, if and to the extent permitted by law,  Mortgagee  itself, or by
such officers or agents as it may appoint,  may enter and take possession of all
of the  Mortgaged  Property,  and  may  exclude  Mortgagor  and its  agents  and
employees  wholly  therefrom,  and may have joint  access with  Mortgagor to the
books, papers and accounts of Mortgagor.

            (b) If  Mortgagor  shall for any reason fail to surrender or deliver
the Mortgaged Property or any part thereof after Mortgagee's  demand,  Mortgagee
may obtain a judgment or decree  conferring  on Mortgagee the right to immediate
possession or requiring Mortgagor to deliver immediate possession of all or part
of the Mortgaged Property to Mortgagee, to the entry of which judgment or decree
Mortgagor hereby specifically consents.  Mortgagor shall pay to Mortgagee,  upon
demand,  all costs  and  expenses  of  obtaining  such  judgment  or decree  and
reasonable  compensation  to Mortgagee,  its attorneys and agents,  and all such
costs,  expenses and  compensation  shall,  until paid,  accrue  interest at the
maximum rate permissible under applicable law and be secured by the lien of this
Mortgage.

            (c) Upon every such entering upon or taking of possession, Mortgagee
may, without  limitation,  hold,  store,  use,  operate,  manage and control the
Mortgaged Property and conduct the business thereof and, from time to time:

                  (i)   make all  necessary  and  proper  maintenance,  repairs,
                        renewals,   replacements,   additions,  betterments  and
                        improvements   thereto  and  thereon  and   purchase  or
                        otherwise acquire  additional  fixtures,  personalty and
                        other property;

                                       17
<PAGE>

                  (ii)  insure or keep the Mortgaged Property insured;

                  (iii) manage and operate the  Mortgaged  Property and exercise
                        all the rights and  powers of  Mortgagor  in its name or
                        otherwise, with respect to the same;

                  (iv)  enter into agreements with others to exercise the powers
                        herein granted Mortgagee; and

                  (v)   receive  reasonable  compensation  for its  service  and
                        reimbursement of its expenses necessarily incurred;

all as Mortgagee from time to time may determine;  and, in connection therewith,
Mortgagor shall  indemnify,  defend and hold Mortgagee  harmless of and from any
and all claims, expenses, demands and/or liability arising therefrom.  Mortgagee
may collect and receive all the income,  revenues,  rents, issues and profits of
the same,  including  those past due as well as those accruing  thereafter;  and
shall apply the monies so received by  Mortgagee  in such  priority as Mortgagee
may  determine  to (1) the payment of accrued  interest on the Note,  (2) to the
payment of overdue  installments  of  principal,  (3) the deposits for taxes and
assessments  due, (4) fees,  charges,  expenses and interest paid and/or accrued
hereunder,  (5) to the cost of insurance,  taxes,  assessments  and other proper
charges upon the Mortgaged  Property or any part thereof  including  repairs and
maintenance thereof, and (6) reasonable compensation, expenses and disbursements
of Mortgagee, its agents, attorneys and other representatives.

      2.04  Appointment of Receiver.  In addition to  Mortgagee's  right to take
possession  of and operate the Property,  as set forth above,  either in lieu of
Mortgagee  taking the above set forth actions,  or before taking such action and
not in lieu of Mortgagee  ultimately taking such actions, or after Mortgagee has
already  proceeded  under the terms and  provisions  of  Paragraph  2.03 hereof,
Mortgagee shall be entitled to the appointment of a receiver, in accordance with
the following terms and provisions:

            (a) If at any time, in the  discretion of Mortgagee,  a receivership
may be necessary to protect the Mortgaged Property or the security of Mortgagee,
whether before or after maturity of the Note and any other indebtedness  secured
by this Mortgage,  or at the time of or after the institution of suit to collect
the Note and any other  indebtedness  secured  by this  Mortgage  or to  enforce
and/or foreclose this Mortgage, Mortgagee shall, as a matter of strict right and
regardless of the value of the security for the amounts due hereunder or secured
hereby or of the solvency of any party bound for the payment of the Note and any
other indebtedness secured hereunder,  have the right to the appointment,  on ex
parte  application  and  without  notice  to  Mortgagor,  by  any  court  having
jurisdiction,  of a receiver to take charge of,  manage,  preserve,  protect and
operate the Property and any business or businesses located thereon,  to collect
the rents, issues,  proceeds,  profits and income thereon, to make all necessary
and needed repairs,  to complete the construction of any improvements  which has
been undertaken but not completed,  and to pay all taxes and assessments against
the Mortgaged  Property and insurance  premiums for insurance  thereon and after
the payment of the expenses of the receivership, including reasonable attorneys'
fees to  Mortgagee's  attorney,  and after  compensation  for  management of the
Mortgaged  Property,  to apply the net proceeds in reduction of all indebtedness
hereby  secured or in such manner as the court shall  direct.  All such expenses
shall be secured  by the lien of this  Mortgage  until  paid.  Mortgagor  hereby
specifically  waives the right to object to the  appointment  of a receiver  and
hereby  expressly  consents that such  appointment  shall be made as an admitted
equity and as a matter of absolute right of Mortgagee.

                                       18
<PAGE>

            (b) The  receiver or its agents  shall be entitled to enter upon and
take possession of any and all of the Mortgaged Property,  together with any and
all  businesses  conducted  thereon and all  business  assets used  therewith or
thereon,  or any part or parts thereof,  and to operate and conduct the business
or businesses, or complete construction of improvements,  to the same extent and
in the same manner as Mortgagor  might lawfully do. The receiver,  personally or
through its agents or attorneys,  may exclude  Mortgagor  and its  subsidiaries,
agents,  servants and employees  wholly from the Mortgaged  Property,  and have,
hold, use, operate, manage and control the same and each and every part thereof,
and in the name of Mortgagor, its subsidiaries, or agents, exercise all of their
rights  and  powers  and use all of the  then  existing  items of  security  and
collateral,  materials,  current supplies, stores and assets and, at the expense
of  Mortgagor,  maintain,  restore,  complete  construction  of, insure and keep
insured, the properties,  equipment,  and apparatus provided or required for use
in connection with such business or businesses,  and make all such necessary and
proper  repairs,  renewals  and  replacements  and all such useful  alterations,
additions, betterments and improvements as the receiver may deem judicious.

            (c) Such  receivership  shall, at the option of Mortgagee,  continue
until full payment of the Note and all other sums hereby secured, or until title
to the Property shall have passed by foreclosure sale under this Mortgage.

      2.05 Mortgagee's  Power of Enforcement.  If an Event of Default shall have
occurred,  Mortgagee may,  either with or without entry or taking  possession as
hereinabove provided or otherwise,  proceed by suit or suits at law or in equity
or by any other appropriate  proceeding or remedy: (a) to enforce payment of the
Note or the performance of any term hereof or any other right;  (b) to foreclose
this  Mortgage;  and (c) to pursue any other  remedy,  legal  and/or  equitable,
available to it herein granted and/or under applicable law.

      2.06 Suits to Protect the  Mortgaged  Property.  Mortgagee  shall have the
power and authority, but not the obligation, to institute and maintain any suits
and proceedings as Mortgagee may deem advisable (a) to prevent any impairment of
the  Mortgaged  Property by any acts which may be unlawful or any  violation  of
this  Mortgage,  (b) to  preserve  or  protect  its  interest  in the  Mortgaged
Property,  and  (c) to  restrain  the  enforcement  of or  compliance  with  any
legislation  or  other  governmental  enactment,  rule  or  order  that  may  be
unconstitutional  or otherwise invalid, if the enforcement of or compliance with
such  enactment,  rule or  order  might  impair  the  security  hereunder  or be
prejudicial to Mortgagee's  interest.  Mortgagor shall cooperate with respect to
any action taken by Mortgagee as set forth above.

                                       19
<PAGE>

      2.07 Foreclosure.

            (a) Mortgagee may institute  proceedings for the partial or complete
foreclosure of this Mortgage and Mortgagee  may,  pursuant to any final judgment
of foreclosure,  sell the Mortgaged Property as an entirety or in separate lots,
units, or parcels.

            (b) In  case  of a  foreclosure  sale  of all  or  any  part  of the
Mortgaged  Property,  the proceeds of sale shall be applied in  accordance  with
Section  2.13  hereof,  and  Mortgagee  shall be entitled  to seek a  deficiency
judgment against Mortgagor to enforce payment of any and all obligations secured
hereby then  remaining due and unpaid,  together with interest  thereon,  and to
recover a judgment against Mortgagor therefor.

            (c) Mortgagee is authorized  to foreclose  this Mortgage  subject to
the rights of any tenants of the  Mortgaged  Property,  or  Mortgagee  may elect
which tenants Mortgagee desires to name as parties defendant in such foreclosure
and failure to make any such tenants parties  defendant to any such  foreclosure
proceedings  and to  foreclose  their  rights  will not be, nor be  asserted  by
Mortgagor to be, a defense to any proceedings instituted by Mortgagee to collect
the unpaid  obligations  secured hereby or to collect any  deficiency  remaining
unpaid after the foreclosure sale of the Mortgaged Property.

      2.08 Credit of Mortgagee.  Upon any  foreclosure of all or any part of the
Mortgaged Property, Mortgagee may bid for and acquire the Mortgaged Property, or
any part thereof and, in lieu of paying cash therefor, may apply to the purchase
price any portion of or all of the unpaid  obligations  secured hereby,  in such
order as Mortgagee may elect.

      2.09 Sale. Any sale or sales made under or by virtue of this Article shall
operate to divest  all the  estate,  right,  title,  interest,  claim and demand
whatsoever  at law or in equity,  of Mortgagor and all persons,  except  tenants
pursuant  to  leases  approved  by  Mortgagee,  claiming  by,  through  or under
Mortgagor in and to the properties and rights so sold, whether sold to Mortgagee
or to others.

      2.10  Proofs  of  Claim.  In the  case  of any  receivership,  insolvency,
bankruptcy,  reorganization,   arrangement,  adjustment,  composition  or  other
judicial proceedings  affecting Mortgagor,  any endorser,  co-maker,  surety, or
guarantor  of  the  obligations  secured  hereby,  or any  of  their  respective
properties, Mortgagee, to the extent permitted by law, shall be entitled to file
such proofs of claim and other  documents  as may be  necessary  or advisable in
order to have its  claim  allowed  in such  proceedings  for the  entire  unpaid
obligations  at the date of the  institution  of such  proceedings,  and for any
additional amounts which may become due and payable after such date.

      2.11 Waiver of Redemption, Notice and Marshalling. Mortgagor hereby waives
and releases,  for itself and anyone claiming  through,  by, or under it, to the
maximum extent permitted by the laws of the State of Florida:

            (a) all  benefit  that might  accrue to  Mortgagor  by virtue of any
present or future  law  exempting  the  Mortgaged  Property,  or any part of the
proceeds  arising  from  any  sale  thereof,  from  attachment,  levy or sale on
execution,  or providing  for any  appraisement,  valuation,  stay of execution,
exemption from civil process, redemption or extension of time for payment;

                                       20
<PAGE>

            (b) all notices of default,  or Mortgagee's  actual  exercise of any
option or remedy under any loan documents, or otherwise; and

            (c) any right to have the Mortgaged Property marshalled.

      2.12 Automatic Stay. Mortgagor hereby agrees that, in consideration of the
recitals and mutual covenants  contained herein, and for other good and valuable
consideration,  the receipt and  sufficiency  of which are hereby  acknowledged,
Mortgagor does agree that in the event  Mortgagor or (if applicable) any partner
of Mortgagor shall (a) file with any bankruptcy court of competent  jurisdiction
or be the subject of any petition  under title 11 of the U.S.  Code, as amended;
(b) be the  subject  of any order for relief  issued  under such Title 11 of the
U.S.  Code, as amended;  (c) file or be the subject of any petition  seeking any
reorganization,    arrangement,    composition,    readjustment,    liquidation,
dissolution,  or similar relief under any present or future federal or state act
or law relating to bankruptcy, insolvency, or other relief for debtors; (d) have
sought  or  consented  to or  acquiesced  in the  appointment  of  any  trustee,
receiver,  conservator,  or  liquidator;  or (e) be the  subject  of any  order,
judgment, or decree entered by any court of competent  jurisdiction  approving a
petition  filed  against  such  party  for  any   reorganization,   arrangement,
composition, readjustment, liquidation, dissolution, or similar relief under any
present  or  future  federal  or  state  act  or  law  relating  to  bankruptcy,
insolvency,  or relief for  debtors,  then and in any of such  events  Mortgagee
shall thereupon be entitled to relief from any automatic stay imposed by Section
362 of Title 11 of the U.S.  Code, as amended,  or otherwise,  on or against the
exercise of the rights and remedies otherwise available to Mortgagee as provided
in the Note, this Mortgage, and all associated loan documents,  and as otherwise
provided by law. Mortgagor hereby agrees not to object to Mortgagee  immediately
seeking  relief  from  the  automatic   stay,  to  allow  Mortgagee  to  proceed
immediately  to obtain a final  judgment of  foreclosure  of this  Mortgage,  to
complete a  foreclosure  sale and/or to proceed  against  and  realize  upon the
collateral for the indebtedness  secured hereby and to otherwise allow Mortgagee
to take all such  actions  as  Mortgagee  may  elect in its sole  discretion  in
pursuance of the other  rights and remedies  available in the event of a default
by Mortgagor under this Mortgage and all associated  loan  documents.  Mortgagor
hereby waives any protection afforded under 11 U.S.C., Section 362(a).

      2.13  Application  of  Proceeds.  The  proceeds  of any sale of all or any
portion of the Mortgaged  Property shall be applied by Mortgagee  first,  to the
payment of receiver's fees and expenses, if any, and to the payment of all costs
and expenses  (including,  without  limitation,  reasonable  attorneys  fees and
expenses)  incurred by Mortgagee,  together with interest thereon at the maximum
rate permitted  under  applicable  law from the date so incurred,  in connection
with any entry,  action or proceeding  under this Article and,  second,  in such
order as Mortgagee may elect, to the payment of the  obligations  secured hereby
until all of said obligations have been paid in full.

      2.14 Delay or Omission No Waiver.  No delay or omission of Mortgagee or of
any holder of the Note to exercise any right,  power or remedy accruing upon any
Event of Default  shall  exhaust or impair  any such  right,  power or remedy or
shall  be  construed  to waive  any  such  Event  of  Default  or to  constitute
acquiescence  therein.  Every right,  power and remedy given to Mortgagee may be
exercised  from  time  to  time  and as  often  as may be  deemed  expedient  by
Mortgagee.

                                       21
<PAGE>

      2.15 No Waiver of One Default to Affect Another. No waiver of any Event of
Default hereunder shall extend to or affect any subsequent or any other Event of
Default  then  existing,  or impair any rights,  powers or  remedies  consequent
thereon.  If Mortgagee  (a) grants  forbearance  or an extension of time for the
payment of any sums secured hereby;  (b) takes other or additional  security for
the payment  thereof;  (c) waives or does not exercise any right  granted in the
Note, this Mortgage or any other instrument  securing the Note; (d) releases any
part of the  Mortgaged  Property  from the lien of this  Mortgage  or any  other
instrument securing the Note; or (e) makes or consents to any agreement changing
the terms of this Mortgage or  subordinating  the lien or any charge hereof,  no
such act or omission  shall  release,  discharge,  modify,  change or affect the
original  liability under the Note, this Mortgage or otherwise of Mortgagor,  or
any  subsequent  purchaser of the Mortgaged  Property or any part thereof or any
maker, cosigner,  endorser,  surety or guarantor.  No such act or omission shall
preclude  Mortgagee from exercising any right, power or privilege herein granted
or  intended  to be  granted  in case of any  Event of  Default  nor,  except as
otherwise  expressly  provided  in an  instrument  or  instruments  executed  by
Mortgagee, shall the lien of this Mortgage be altered thereby.

      2.16 Sale,  Transfer  or Lease of  Mortgaged  Property.  Without the prior
written  consent of Mortgagee,  which consent shall be in  Mortgagee's  sole and
absolute  discretion,  Mortgagor  will abstain from and will not cause or permit
any sale,  exchange,  transfer or  conveyance,  directly or  indirectly,  of the
Mortgaged  Property or any part thereof or any interest therein,  voluntarily or
by operation of law (other than  foreclosure  under this  Mortgage),  whether by
sale, exchange, conveyance, merger, consolidation,  reorganization or otherwise.
Furthermore,  there  shall  be no  change  in the  operation  or  management  of
Mortgagor  or the  Mortgaged  Property  without  the prior  written  consent  of
Mortgagee,  which consent shall not be unreasonably  withheld.  Any violation of
the foregoing limitations,  at the option of Mortgagee, shall be deemed an Event
of Default hereunder.

      In the event of a permitted  sale,  or transfer  by  operation  of law, or
otherwise, of all or any part of the Mortgaged Property by Mortgagor, including,
without limitation,  any conveyances which may be permitted above,  Mortgagee is
hereby authorized and empowered to deal with any such transferee or successor in
interest with reference to the Mortgaged  Property or the  indebtedness  secured
hereby, or with reference to any of the terms or conditions hereof, as fully and
to the same extent as it might deal with the original parties hereto and without
in any way  releasing or  discharging  any of the  liabilities  or  undertakings
hereunder.  Furthermore,  any  permitted  sale or transfer  may be  conditioned,
without  limitation,  upon the payment of a transfer fee or a change in the loan
charges, interest rates and payment or repayment terms.

      2.17 Further Encumbrances.  No additional mortgage or encumbrance shall be
placed  upon the  Mortgaged  Property  without  the  prior  written  consent  of
Mortgagee,  which consent shall be in Mortgagee's sole and absolute  discretion.
Additionally,  in the event a Notice  Limiting Future Advances is filed limiting
the right of Mortgagee to effectuate  future  advances under this Mortgage,  the
filing of such notice shall be and constitute a default under this Mortgage.

                                       22
<PAGE>

      2.18 Remedies  Cumulative.  No right,  power or remedy  conferred  upon or
reserved  to  Mortgagee  by the Note,  this  Mortgage  or any  other  instrument
securing the Note is exclusive of any other right, power or remedy, but each and
every such right,  power and remedy shall be cumulative and concurrent and shall
be in addition to any other right, power and remedy given hereunder or under the
Note or any other instrument  securing the Note, or now or hereafter existing at
law, in equity or by statute.

                                  ARTICLE THREE
                            MISCELLANEOUS PROVISIONS

      3.01 Heirs, Successors,  and Assigns Included in Parties.  Whenever one of
the  parties  hereto  is  named or  referred  to  herein,  the  heirs,  personal
representatives,  successors and assigns of such party shall be included and all
covenants  and  agreements  contained  in  this  Mortgage,  by or on  behalf  of
Mortgagor or Mortgagee,  shall bind and inure to the benefit of their respective
heirs, personal representatives, successors and assigns, whether so expressed or
not.

      3.02 Addresses for Notices.

            (a) Any notice,  report,  demand or other  instrument  authorized or
required  to be given or  furnished  under  this  Mortgage  to  Mortgagor  or to
Mortgagee  shall be  deemed  given or  furnished  when  addressed  to the  party
intended  to receive  the same,  at the  address of such party set forth in this
Section,  or at the address of the  Mortgaged  Property in the case of notice to
the  Mortgagor,  and delivered to such address or deposited in the United States
mail as first class  certified  mail,  return receipt  requested,  postage paid,
whether  or not the  same  is  actually  received  by such  party.  The  initial
addresses are as follows:

                                       23
<PAGE>

         If to Mortgagor:           AGU Entertainment Corp.
                                    3200 West Oakland Park Boulevard
                                    Lauderdale Lakes, Florida  33311
                                    Attention:  Chief Financial Officer
                                    Facsimile:

                  with a copy to:   Bruce C. Rosetto, Esq.
                                    Blank Rome LLP
                                    1200 North Federal Highway, Suite 417
                                    Boca Raton, Florida  33432
                                    Facsimile:  (561)417-8186

         If to Mortgagee:           Mitchell Entertainment Company
                                    7220 NW 36th Street, Suite 100
                                    Miami, Florida  33166
                                    Attention:  Jonathan E. Mitchell
                                    Facsimile:  (305) 591-9657

                  with a copy to:   Mitchell Entertainment Company
                                    11601 Wilshire Boulevard, Suite 2400
                                    Los Angeles, California  90025
                                    Attention:  Jonathan E. Mitchell
                                    Facsimile:  (310) 473-0076

                                    Robert S. Barry, Jr., Esq.
                                    Loeb & Loeb LLP
                                    10100 Santa Monica Boulevard, Suite 2200
                                    Los Angeles, California  90067
                                    Facsimile:  (310) 282-2200

                                    Howard L. Friedberg, Esq.
                                    Katz, Barron etal
                                    2699 South Bayshore Drive, 7th Floor
                                    Miami, Florida 33133
                                    Facsimile (305) 285-9227

            (b) Each  party may change  the  address  to which any such  notice,
report,  demand or other instrument is to be delivered or mailed,  by furnishing
written  notice of such change to the other party,  but no such notice of change
shall be effective unless and until received by such other party.

            (c) Notwithstanding anything in this instrument to the contrary, all
requirements  of notice shall be deemed  inapplicable  if Mortgagee is prevented
from giving  such  notice by  bankruptcy  or any other  applicable  law. In such
event, the cure period,  if any, shall then run from the occurrence of the event
or condition of default rather than from the date of notice.

                                       24
<PAGE>

      3.03  Headings.  The headings of the articles,  sections,  paragraphs  and
subdivisions  of this Mortgage are for convenience or reference only, are not to
be considered a part hereof,  and shall not limit or expand or otherwise  affect
any of the terms hereof.

      3.04 Invalid  Provisions to Affect No Others. In the event that any of the
covenants,  agreements, terms or provisions contained in the Note, this Mortgage
or any  other  instrument  securing  the  Note  shall  be  invalid,  illegal  or
unenforceable  in  any  respect,   the  validity  of  the  remaining  covenants,
agreements,  terms or provisions  contained herein and in the Note and any other
instrument  securing  the  Note  shall  be in no  way  affected,  prejudiced  or
disturbed thereby.

      3.05  Changes.  Neither this  Mortgage nor any term hereof may be changed,
waived,  discharged or terminated orally, or by any action or inaction, but only
by an  instrument  in  writing  signed  by  the  party  against  which  or  whom
enforcement  of the change,  waiver,  discharge or  termination  is sought.  Any
agreement  hereafter  made by Mortgagor and Mortgagee  relating to this Mortgage
shall be  superior  to the  rights  of the  holder  of any  intervening  lien or
encumbrance.

      3.06  Governing  Law.  This Mortgage is to be governed by and construed in
accordance with applicable law and Mortgagor  agrees that the sole and exclusive
forum  for  the  determination  of  any  action  relating  to the  validity  and
enforceability  of this  Mortgage  shall be either an  appropriate  court of the
State of Florida or that court of the United  States which  includes  within its
territorial jurisdiction the State of Florida.

      3.07 Usury.  It is the intention of the parties  hereto to comply with the
usury laws of applicable governmental authority(ies);  accordingly, it is agreed
that,  notwithstanding any provision to the contrary in the Note, this Mortgage,
or any of the other documents  securing  payment  thereof or otherwise  relating
hereto,  no such provision shall require the payment or permit the collection of
interest in excess of the maximum  permitted by law. In determining  the maximum
rate allowed,  Mortgagee may take advantage of any state or federal law, rule or
regulation  in effect  from time to time which may govern  the  maximum  rate of
interest  which may be charged.  If any excess of  interest  in such  respect is
provided for, or shall be adjudicated  to be so provided for, in the Note,  this
Mortgage, or in any of the other documents securing payment thereof or otherwise
relating hereto,  then in such event: (a) the provisions of this paragraph shall
govern  and   control;   (b)   neither   Mortgagor   nor  its  heirs,   personal
representatives, successors or assigns or any other party liable for the payment
thereof,  shall be  obligated  to pay the amount of such  interest to the extent
that it is in excess of the maximum amount permitted by law; (c) any such excess
which may have been  collected  shall be either  applied as a credit against the
then unpaid principal  amount of the Note or refunded to Mortgagor;  and (d) the
effective rate of interest shall be automatically  reduced to the maximum lawful
contract rate allowed under the applicable usury laws.

      3.08 Required Notices.  In addition to any notice  requirements  contained
elsewhere in this Mortgage,  Mortgagor  shall notify  Mortgagee  promptly of the
occurrence of any of the following:

            (a) a fire  or  other  casualty  causing  damage  to  the  Mortgaged
Property or any portion thereof;

                                       25
<PAGE>

            (b) receipt of notice of condemnation  of the Mortgaged  Property or
any portion thereof;

            (c)  receipt of notice  from any  government  or  quasi-governmental
authority  relating  to the  development,  structure,  use or  occupancy  of the
Mortgaged Property or any portion thereof; or

            (d) commencement of any litigation  affecting the Mortgaged Property
or any portion thereof.

      3.09  Protective  and Future  Advances.  It is the intent hereof to secure
payment of the indebtedness  represented by the Note,  whether the entire amount
shall have been  advanced to the  Mortgagor  as of the date hereof or at a later
date,  and to  secure  any  other  amount  or  amounts  that may be added to the
mortgage indebtedness under the terms of this instrument for protective advances
or otherwise.  Further,  it is the intent  hereof to secure  payment of the Note
whether the entire  amount shall have been advanced to the Mortgagor on the date
hereof or at a later date,  and to secure any other  amount that may be added to
the mortgage  indebtedness  under the terms of this  instrument.  This  mortgage
secures  the  principal  debt as set out in the Note,  advances  received by the
Mortgagor from the Mortgagee during the term hereof, all other indebtedness that
may  hereafter be due,  owing or existing  from the  Mortgagor to the  Mortgagee
during the existence of this  mortgage,  and any renewal or renewals of the Note
or any other  note(s) for said present or future  indebtedness.  Notwithstanding
any  provision  hereof,  it is the intention to secure all future  advances,  as
defined under Chapter 697 of the Florida Statutes, made commencing with the date
hereof and  continuing  through  twenty years after date hereof,  by the lien of
this   mortgage  in  all  respects  as  though  such   advances  had  been  made
simultaneously with the execution hereof and secured hereby; provided,  however,
that all such  further  or future  advances  shall be wholly  optional  with the
Mortgagee and further provided,  however, that no such advance or advances shall
cause the  unpaid  principal  obligation  here  secured  to  exceed  200% of the
original aggregate  principal amount of the Note, except that there may be added
to such  amount  interest  thereon  and any  and all  disbursements  made by the
Mortgagee for the payment of taxes,  levies or insurance on the Property covered
by the lien of this mortgage with interest on such  disbursements at the Default
Rate,  and for  reasonable  attorneys'  fees and  court  costs  incurred  in the
collection  of any or all of such  sums of  money,  including  all such fees and
costs in connection with appellate  proceedings.  Nothing herein contained shall
be deemed an obligation on the part of Mortgagee to make any future advances.

      3.10  Modification  or Waiver.  Any indulgence or departure at any time by
Mortgagee,  its successors or assigns from any of the provisions  hereof,  or of
any  obligation  hereby  secured,  shall  not  modify  the same or waive  future
compliance  therewith  by  Mortgagor.  No  act  of  omission  or  commission  of
Mortgagee,  including,  without  limitation,  any failure to exercise any right,
remedy or recourse,  shall be deemed to be a waiver,  release or modification of
the same,  such waiver,  release or  modification  to be effected only through a
written document executed by Mortgagee and then only to the extent  specifically
recited therein.

                                       26
<PAGE>

      3.11  Mortgagor's Duty to Defend.  Mortgagor will defend,  at its own cost
and expense, and indemnify, defend and hold Mortgagee harmless from, any action,
proceeding or claim affecting the Mortgaged Property,  the indebtedness  secured
hereunder or any associated  loan document.  Costs and expenses will include all
reasonable attorneys' fees to and through all trial, appellate, supplemental and
bankruptcy proceedings. If Mortgagor neglects or refuses to act pursuant to this
paragraph,  Mortgagee,  at its option  (whether  electing  to declare the entire
indebtedness  secured hereby due and payable or not, or to pursue other remedies
for an Event of Default) may pay for all reasonable  attorneys'  fees, costs and
expenses  incurred in any such action(s).  All such payments,  bearing  interest
thereon  from the time of  payment  at the  maximum  contract  rate of  interest
permitted by law, shall be deemed a part of the indebtedness  secured  hereunder
and shall be immediately due and payable by Mortgagor to Mortgagee.

      3.12  Mortgagee's  Rights At Any Time,  With or Without  Consent.  Without
affecting  the  liability of  Mortgagor  or any other person  (except any person
expressly  released in writing) for payment of any indebtedness  secured hereby,
or for performance of any obligation contained herein, and without affecting the
rights of  Mortgagee  with respect to any  security  not  expressly  released in
writing,  Mortgagee  may,  at any time and from time to time,  either  before or
after the maturity of the Note, and without  notice or consent:  (a) release any
person liable for payment of all or any part of the secured  indebtedness or for
performance  of any  obligation;  (b) make any  agreement  extending the time of
payment of all or any part of the indebtedness  secured hereunder,  or modifying
or waiving any obligation, or subordinating, modifying or otherwise dealing with
the lien or charge hereof;  (c) exercise or refrain from exercising or waive any
right  Mortgagee may have;  (d) accept  additional  security of any kind; or (e)
release,  or otherwise  deal with any property,  real or personal,  securing the
indebtedness, including all or any part of the Mortgaged Property.

      3.13 Americans With Disabilities Act. Mortgagor covenants and agrees that,
during the term of the loan evidenced by the Note, the Mortgaged Property is and
will be in full compliance with the Americans with  Disabilities  Act ("ADA") of
November 26, 1990,  42 U.S.C.  Section  12191,  et seq., as amended from time to
time, and the  regulations  promulgated  pursuant  thereto and any other laws or
legal  requirements  regarding access and facilities for handicapped or disabled
persons.  Mortgagor  shall be solely  responsible  for all ADA and other related
compliance costs, including, without limitation,  attorneys' fees and litigation
costs, which responsibility shall survive the repayment of the loan evidenced by
the Note and foreclosure of the Mortgaged Property.

      3.14 Compliance with Law. Mortgagor warrants and represents that Mortgagor
has complied, and shall hereafter comply, with all valid laws, rules, ordinances
and regulations of the Federal, state and local government, and all agencies and
subdivisions  thereof which laws,  rules,  ordinances and  regulations  apply or
relate to the  Mortgaged  Property  and the use,  development  and  construction
thereof  and of  improvements  existing  or  contemplated  thereon  or as a part
thereof,  or the  improvements  now or  hereafter  located  thereon or on a part
thereof.

      3.15 Late  Charges.  The Note  provides  that the Note holder may charge a
late  payment as  provided  in the Note and,  therefore,  all such late  payment
charges shall also be secured by this Mortgage.

                                       27
<PAGE>

      3.16 Time of the Essence. Mortgagor agrees that where, by the terms hereof
or of the Note,  a day is named or a time  fixed for the  payment  of any sum of
money or the performance of any agreement, that time is of the essence.

      3.17  Attorneys'  Fees. As used in this Mortgage and all  associated  loan
documents,  attorneys' fees shall include,  but not be limited to, fees incurred
in all matters of collection and enforcement,  construction and  interpretation,
before,  during and after  suit,  trial,  proceedings  and  appeals,  as well as
appearances  in  and  connected  with  appellate,   supplemental  or  bankruptcy
proceedings, or creditors' reorganization or arrangement proceedings.

      3.18 Venue.  Mortgagor  agrees that Broward County,  Florida,  at the sole
option of  Mortgagee,  is the  proper  venue  for any and all legal  proceedings
arising out of this Mortgage, the Note and any associated loan documents.

      3.19  Indemnification.  In no event shall Mortgagee's  rights hereunder or
under any associated loan documents grant Mortgagee the right to or be deemed to
indicate that Mortgagee is in control of the business,  management or properties
of  Mortgagor,  or has power over the daily  management  functions and operating
decisions  made by  Mortgagor.  Mortgagee  is a  lender  only and  shall  not be
considered a shareholder,  joint venturer or partner of Mortgagor. Mortgagor and
Mortgagee intend that the relationship created under the Note, this Mortgage and
all other  associated  loan  documents  be solely  that of debtor and  creditor,
mortgagor  and  mortgagee  or borrower and lender,  as the case may be.  Nothing
herein or in any of the associated  loan documents is intended to create a joint
venture,  partnership,  tenancy in common or joint tenancy  relationship between
Mortgagor  and  Mortgagee  nor grant to Mortgagee  any interest in the Mortgaged
Property  other than that of creditor or  mortgagee,  it being the intent of the
parties hereto that Mortgagee shall have no liability  whatsoever for any losses
generated  by or  incurred  with  respect to the  Mortgaged  Property  nor shall
Mortgagee  have any control over the day to day  management  or operation of the
Mortgaged Property. The terms and provisions of this Paragraph shall control and
supersede over every other provision and all other agreements  between Mortgagor
and Mortgagee.  Mortgagor hereby agrees to indemnify,  defend and hold Mortgagee
harmless  and defend  Mortgagee  against  any loss,  liability,  cost or expense
(including,  without limitation,  reasonable  attorneys' fees and disbursements)
and all claims,  actions,  procedures  and suits arising out of or in connection
with any  construction of the relationship of Mortgagor and Mortgagee as to that
of  joint  venturers,   partners,  tenants  in  common,  joint  tenants  or  any
relationship other than that of debtor and creditor or any assertion that such a
construction should be made. The foregoing indemnity shall survive the repayment
of the Note and the satisfaction of this Mortgage and shall continue for so long
as any liability for which the indemnity is given may exist or arise.

      3.20 Mortgage and/or Intangible Tax. Mortgagor shall, at its sole cost and
expense,  protect,  defend,  indemnify,  release and hold harmless the Mortgagee
from and  against  any and all losses  imposed  upon or  incurred by or asserted
against  Mortgagee  and  directly  or  indirectly  arising  out of or in any way
relating to any tax on the making  and/or  recording of this  Mortgage  Deed and
Security Agreement or any of the other loan documents.

                                       28
<PAGE>

      3.21  Financial  Statements.  If requested by Mortgagee,  Mortgagor  shall
furnish to the Mortgagee  signed  quarterly and annual  unaudited  statements of
financial  condition and profit and loss  statements.  Such  statement  shall be
delivered  to the  Mortgagee  within  45 days  after  the  close of  Mortgagor's
quarterly  fiscal  period,  and  within 90 days  after the close of  Mortgagor's
fiscal  year.  The  financial  statements  required by this  paragraph  shall be
prepared in form and manner as are  customarily  employed  by Florida  certified
public accountants for such purpose.

                            INTENTIONALLY LEFT BLANK

                                       29
<PAGE>

      WAIVER  OF  TRIAL  BY  JURY.  MORTGAGOR  AND  MORTGAGEE  HEREBY  MUTUALLY,
KNOWINGLY,  WILLINGLY,  INTENTIONALLY AND VOLUNTARILY WAIVE THEIR RIGHT TO TRIAL
BY JURY AND NO PARTY NOR ANY ASSIGNEE,  SUCCESSOR, HEIR, OR LEGAL REPRESENTATIVE
OF THE  PARTIES  (ALL OF WHOM ARE  HEREINAFTER  COLLECTIVELY  REFERRED TO AS THE
"PARTIES") SHALL SEEK A JURY TRIAL IN ANY LAWSUIT,  PROCEEDING,  COUNTERCLAIM OR
ANY OTHER  LITIGATION  PROCEEDING  BASED UPON OR ARISING OUT OF THIS MORTGAGE OR
ANY ASSOCIATED LOAN DOCUMENTS OR ANY INSTRUMENT EVIDENCING, SECURING OR RELATING
TO THE INDEBTEDNESS OR OTHER OBLIGATIONS SECURED HEREBY OR ANY RELATED AGREEMENT
OR INSTRUMENT,  ANY OTHER COLLATERAL FOR THE INDEBTEDNESS  SECURED HEREBY OR ANY
COURSE OF ACTION,  COURSE OF DEALING,  STATEMENTS (WHETHER VERBAL OR WRITTEN) OR
ACTIONS  RELATING TO THE LOAN  EVIDENCED  BY THE NOTE OR TO THIS  MORTGAGE.  THE
PARTIES ALSO WAIVE ANY RIGHT TO CONSOLIDATE ANY ACTION IN WHICH A JURY TRIAL HAS
BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL HAS NOT BEEN WAIVED. THE
PROVISIONS OF THIS  PARAGRAPH  HAVE BEEN FULLY  NEGOTIATED  BY THE PARTIES.  THE
WAIVER  CONTAINED  HEREIN IS  IRREVOCABLE,  CONSTITUTES  A KNOWING AND VOLUNTARY
WAIVER,  AND SHALL BE SUBJECT TO NO  EXCEPTIONS.  MORTGAGEE HAS IN NO WAY AGREED
WITH OR  REPRESENTED TO MORTGAGOR OR ANY OTHER PARTY THAT THE PROVISIONS OF THIS
PARAGRAPH WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

      IN WITNESS WHEREOF, Mortgagor has executed this Mortgage as of the day and
year first above written.

Signed, sealed and delivered
in the presence of:                     AGU ENTERTAINMENT CORP., a Delaware
                                        corporation
/s/ Bruce C. Rosetto
--------------------------------
Print name: Bruce C. Rosetto            By: /s/ David Levy
           ---------------------           -------------------------------------
/s/ Innocencia Ramos                            David Levy, President
--------------------------------

Print name: Innocencia Ramos
           ---------------------             (Corporate Seal)

                                       30

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]