Document:

AGREEMENT, dated as of July 30, 2004, between JOEL GOLD, an individual
residing at 874 East 9th Street, Brooklyn, New York 11230 (the "INVESTOR"), and
SURFNET MEDIA GROUP, INC., a Delaware corporation with offices located at 2801
South Fair Lane, Tempe, Arizona 85282-3162 (the "COMPANY").

                                  INTRODUCTION

         The Investor desires to acquire from the Company, and the Company
desires to induce the Investor to acquire, an aggregate of $86,666.69 principal
amount of 18% Convertible Notes (the "NOTES"), the form of which is attached
hereto as Annex A convertible into shares (the "CONVERSION SHARES") of common
stock of the Company (the "COMMON STOCK") as set forth in Annex A hereof, and
warrants (the "WARRANTS") to acquire an aggregate of 127,455 shares (the
"WARRANT SHARES") of Common Stock as set forth in Annex B hereto. This
Agreement, together with the Notes and the Warrants, are hereinafter referred to
as the "TRANSACTION DOCUMENTS")

         NOW THEREFORE, the parties hereto hereby agree as follows:

         SECTION 1         TRANSACTION STRUCTURE.

         (a) Upon the execution hereof, the Investor shall acquire from the
Company Notes in the aggregate principal amount of $11,666.67 and Warrants
exercisable for an aggregate of 17,157 Warrant Shares in exchange for
$11,666.67.

         (b) On each of September 1, 2004, October 1, 2004, November 1, 2004,
December 1, 2004, January 1, 2005, and February 1, 2005 (the date hereof, as
well as each such date, a "CLOSING DATE"), the Investor shall acquire from the
Company Notes in the aggregate principal amount of $12,500.00 and Warrants
exercisable for an aggregate of 18,383 Warrant Shares in exchange for
$12,500.00.

         (c) If any Closing Date falls on a day that is not a Business Day (as
defined below), the closing scheduled to take place on such Closing Date will be
made on the next succeeding Business Day with the same force and effect as if
made on the Closing Date. "BUSINESS DAY" means any day which is not a Saturday
or Sunday and is not a day on which banking institutions are generally
authorized or obligated to close in the City of New York, New York.

         SECTION 2         DELIVERY OF SECURITIES.

         (a) On the each Closing Date, the Company shall deliver to Investor the
relevant Note and the relevant Warrant pursuant to Section 1 hereof.

         (b) The holders of the Conversion Shares (whether held or issuable upon
conversion of the Notes) shall be entitled to unlimited piggy-back registrations
under the Securities Act of 1933, as amended (the "SECURITIES Act") of the
resale of the Conversion Shares. The Company represents and warrants in this
regard that it has no obligation to file any registration statement on behalf of
itself or any other party and, except in the case of registration statements on
Form S-4 or Form S-8, will not file any registration statement unless all of the
Conversion Shares, the Warrant Shares, and any securities issued in respect
thereof are included for sale or resale therein in their entirety.

<PAGE>

         SECTION 3         DELIVERY OF FUNDS.

         On each Closing Date, the Investor shall deliver to the Company cash by
check or electronic wire transfer pursuant to Section 1 hereof against delivery
of the Notes and Warrants to be purchased thereby pursuant hereto on such date.

         SECTION 4         REPRESENTATIONS AND WARRANTIES.

         (a) The Investor represents and warrants to the Company as follows:

                  (i) The Investor has all necessary right and power to enter
         into this Agreement (together with the Note, the "TRANSACTION
         DOCUMENTS") and to carry out the obligations hereunder and to
         consummate the transactions contemplated hereby. Each of the
         Transaction Documents requiring execution by the Investor has been duly
         executed and delivered by the Investor, and constitutes a valid and
         binding obligation of the Investor, and is enforceable against the
         Investor in accordance with its respective terms.

                  (ii) The Investor is an individual who has reached the age
         majority in her state of residence and has all necessary requisite
         power and authority, and all necessary consents, authorizations,
         approvals, orders, licenses, certificates, and permits of and from, and
         declarations and filings with, all federal, state, local, and other
         governmental authorities and all courts and other tribunals, to own,
         lease, license, and use her properties and assets and to carry on the
         business in which she is now engaged and the businesses in which she
         contemplates engaging.

                  (iii) The Investor is acquiring the Notes and the Warrants for
         her own account (and not for the account of others) for investment and
         not with a view to the distribution or resale thereof.

                  (iv) By virtue of Investor's position, she has access to the
         same kind of information which would be available in a registration
         statement filed under the Securities Act.

                  (v) The Investor is a sophisticated investor and an accredited
         investor, as defined in Rule 501 under the Securities Act.

                  (vi) The Investor understands that she may not sell or
         otherwise dispose of the Notes, the Conversion Shares, the Warrants,
         the Warrant Shares or any securities issuable in respect thereof, in
         the absence of either an effective registration statement under the
         Securities Act, or an exemption from the registration provisions of the
         Securities Act.

                  (vii) The Notes, the Conversion Shares, the Warrants, and the
         Warrant Shares may contain a legend to the effect of (vi) above.

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

                  (i) Except as set forth in the documents (the "SEC DOCUMENTS")
         filed by the Company with the Securities and Exchange Commission (the
         "SEC"), the Company has no subsidiaries or affiliated corporation or
         owns any interest in any other enterprise (whether or not such
         enterprise is a corporation). The Company is a corporation duly
         organized, validly existing, and in good standing under the laws of the
         State of Delaware, with all requisite power and authority, and all
         necessary consents, authorizations, approvals, orders, licenses,
         certificates, and permits of and from, and declarations and filings
         with, all federal, state, local, and other governmental authorities and
         all courts and other tribunals, to own, lease, license, and use its
         properties and assets and to carry on the businesses in which it is now
         engaged and the businesses in which it contemplates engaging. The
         Company is duly qualified to transact the businesses in which it is
         engaged and is in good standing as a foreign corporation in every
         jurisdiction in which its ownership, leasing, licensing, or use of
         property or assets or the conduct of its businesses makes such
         qualification necessary.

                  (ii) The authorized capital stock of the Company consists of
         25,000,000 shares of Common Stock, of which approximately 11,000,000
         shares are outstanding on a fully-diluted basis. Each of such
         outstanding shares of Common Stock is validly authorized, validly
         issued, fully paid, and nonassessable, has not been issued and is not
         owned or held in violation of any preemptive or similar right of
         stockholders. Except as set forth in the SEC Documents and Schedule
         4(b)(ii) hereto, there is no commitment, plan, or arrangement to issue,
         and no outstanding option, warrant, or other right calling for the
         issuance of, any share of capital stock of the Company or any security
         or other instrument convertible into, exercisable for, or exchangeable
         for capital stock of the Company. Except as set forth in the SEC
         Documents and Schedule 4(b)(ii) hereto, there is outstanding no
         security or other instrument convertible into or exchangeable for
         capital stock of the Company.

                  (iii) The financial statements of the Company included in the
         SEC Documents are true, correct, and complete in all respects and are
         in accordance with the rules and regulations of the SEC and in
         accordance with generally accepted accounting principles in the United
         States consistently applied. Each such balance sheet presents fairly
         the financial condition, assets, liabilities, and stockholders' equity
         of the Company as of its respective date; each such statement of income
         and statement of stockholders' equity presents fairly the results of
         operations of the Company for the period indicated; and each such
         statement of cash flows presents fairly the information purported to be
         shown therein. The financial statements referred to herein are in
         accordance with the books and records of the Company. Since the last
         financial statements of Company included in the SEC Documents:

                           (A) There has at no time been a material adverse
                  change in the financial condition, results of operations,
                  businesses, properties, assets, liabilities, or future
                  prospects of the Company.

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<PAGE>

                           (B) The Company has not authorized, declared, paid,
                  or effected any dividend or liquidating or other distribution
                  in respect of its capital stock or any direct or indirect
                  redemption, purchase, or other acquisition of any stock of the
                  Company.

                           (C) The operations and businesses of the Company have
                  been conducted in all respects only in the ordinary course,
                  except as discussed in the SEC Documents.

         There is no fact known to the Company which materially adversely
         affects or in the future (as far as the Company can reasonably foresee)
         may materially adversely affect the financial condition, results of
         operations, businesses, properties, assets, liabilities, or future
         prospects of the Company; provided, however, that the Company expresses
         no opinion as to political or economic matters of general
         applicability. The Company has made known, or caused to be made known,
         to the accountants or auditors who have prepared, reviewed, or audited
         the aforementioned consolidated financial statements all material facts
         and circumstances which could affect the preparation, presentation,
         accuracy, or completeness thereof.

                  (iv) Neither the Company, nor any director, officer, agent,
         employee, or other person associated with, or acting on behalf of, the
         Company, nor any stockholder of the Company has, directly or
         indirectly: used any corporate funds for unlawful contributions, gifts,
         entertainment, or other unlawful expenses relating to political
         activity; made any unlawful payment to foreign or domestic government
         officials or employees or to foreign or domestic political parties or
         campaigns from corporate funds; violated any provision of the Foreign
         Corrupt Practices Act of 1977, as amended; or made any bribe, rebate,
         payoff, influence payment, kickback, or other unlawful payment.

                  (v) The Company has all requisite power and authority to
         execute, deliver, and perform each of the Transaction Documents. All
         necessary corporate proceedings of the Company have been duly taken to
         authorize the execution, delivery, and performance of the Transaction
         Documents thereby. This Agreement has been duly authorized, executed,
         and delivered by the Company, constitutes the legal, valid, and binding
         obligation of the Company, and is enforceable as to the Company in
         accordance with its terms. The Notes and the Warrants have been duly
         authorized by the Company, and following the execution and delivery
         thereof by the Company, will constitute the legal, valid, and binding
         obligations of the Company, and shall each be enforceable as to the
         Company in accordance with its respective terms. Except as otherwise
         set forth in this Agreement, no consent, authorization, approval,
         order, license, certificate, or permit of or from, or declaration or
         filing with, any federal, state, local, or other governmental authority
         or any court or other tribunal is required by the Company for the
         execution, delivery, or performance of any Transaction Document by the
         Company. No consent of any party to any material contract, agreement,
         instrument, lease, license, arrangement, or understanding to which the
         Company is a party, or to which it or any of its businesses,
         properties, or assets are subject, is required for the execution,

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<PAGE>

         delivery, or performance of any Transaction Document; and the
         execution, delivery, and performance of the Transaction Documents will
         not violate, result in a breach of, conflict with, or (with or without
         the giving of notice or the passage of time or both) entitle any party
         to terminate or call a default under, entitle any party to receive
         rights or privileges that such party was not entitled to receive before
         the Transaction Documents were executed under, or create any obligation
         on the part of the Company to which it was not subject immediately
         before this Agreement was executed under, any term of any such material
         contract, agreement, instrument, lease, license, arrangement, or
         understanding, or violate or result in a breach of any term of the
         certificate of incorporation (or other charter document) or by-laws of
         the Company, or (if the provisions of this Agreement are satisfied)
         violate, result in a breach of, or conflict with any law, rule,
         regulation, order, judgment, or decree binding on the Company or to
         which any of its businesses, properties, or assets are subject. Neither
         the Company, nor any of its officers, directors, employees, or agents
         has employed any broker or finder or incurred any liability for any
         fee, commission, or other compensation payable by any person on account
         of alleged employment as a broker or finder, or alleged performance of
         services as a broker or finder, in connection with or as a result of
         the Transaction Documents or the transactions contemplated hereby and
         in connection herewith.

                  (vi) The Conversion Shares, when issued upon conversion of the
         Notes, and the Warrants Shares, when issued pursuant to, and in
         accordance with, the terms of the Warrants and upon payment of the
         exercise price relating thereto, shall be validly authorized and
         validly issued, fully paid, and nonassessable and will not have been
         issued, owned or held in violation of any preemptive or similar right
         of stockholder.

                  (vii) At the date hereof and at the date of the closing of the
         transactions contemplated hereby:

                           (A) the Common Stock is traded and quoted in the
                  over-the-counter market;

                           (B) the Company has and shall have performed or
                  satisfied all of its undertakings to, and of its obligations
                  and requirements with, the SEC;

                           (C) the Company has not, and shall not have taken any
                  action that would preclude, or otherwise jeopardize, the
                  inclusion of the Common Stock for quotation on the OTC
                  Bulletin Board except as set forth in Schedule 4(b)(vii)(C).

                  (viii) No representation or warranty by the Company in this
         Agreement contains or, and at the date of the closing of the
         transactions contemplated hereby will contain, an untrue statement of
         material fact or omits or, at such closing date, will omit to state a
         material fact required to be stated therein or necessary to make the
         statements made not misleading.

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                  (ix) Each of the SEC Documents was when filed, and, except to
         the extent superceded or corrected by more recently filed SEC
         Documents, is at the date hereof, true, complete, and correct in all
         material respects and complies in all respects with the rules and
         regulations of the SEC. No SEC Document contained when filed, or
         currently contains, an untrue statement of material fact or omits to
         state any material fact required to be stated therein or necessary to
         make the statements therein not misleading. The Company is in
         compliance with all requirements applicable thereto under the
         Securities Exchange Act of 1934, as amended (the "EXCHANGE ACT").

                  (x) The Company is in compliance with and is not in violation
         of applicable federal, state, local or foreign statutes, laws and
         regulations (including without limitation, any applicable building,
         zoning or other law, ordinance or regulation) affecting its properties
         or the operation of its business. The Company is not subject to any
         order, decree, judgment or other sanction of any court, administrative
         agency or other tribunal.

         SECTION 5         REGISTRATION RIGHTS.

         (a) If, at any time during the seven-year period commencing on the date
of this Agreement, the Company shall file a registration statement (other than
on Form S-4, Form S-8 or any successor form) with the Securities and Exchange
Commission (the "COMMISSION") while any Registrable Securities (as hereinafter
defined) are outstanding, the Company shall give all the then holders of any
Registrable Securities (the "ELIGIBLE Holders") at least 45 days prior written
notice of the filing of such registration statement. If requested by any
Eligible Holder in writing within 30 days after receipt of any such notice, the
Company shall, at the Company's sole expense (other than the fees and
disbursements of counsel for the Eligible Holders and the underwriting
discounts, if any, payable in respect of the Registrable Securities sold by any
Eligible Holder), register or qualify all or, at each Eligible Holder's option,
any portion of the Registrable Securities of any Eligible Holders who shall have
made such request, concurrently with the registration of such other securities,
all to the extent requisite to permit the public offering and sale of the
Registrable Securities, and will use its best efforts through its officers,
directors, auditors, and counsel to cause such registration statement to become
effective as promptly as practicable. As used herein, "REGISTRABLE SECURITIES"
shall mean the Conversion Shares (whether issued or issuable upon conversion of
the Notes) and the Warrant Shares (whether issued or issuable upon exercise of
the Warrants), in each case which have not been previously sold pursuant to a
registration statement or Rule 144 promulgated under the Act.

         (b) In the event of a registration pursuant to the provisions of this
Section 5, the Company shall use its best efforts to cause the Registrable
Securities so registered to be registered or qualified for sale under the
securities or blue sky laws of such jurisdictions as the Holder or such holders
may reasonably request; provided, however, that the Company shall not be
required by reason of this Section 5(b) to register or qualify the Registrable
Securities in any jurisdiction where, as a result thereof, the Company would be
subject to service of general process or to taxation as a foreign corporation
doing business in such jurisdiction to which the Company is not then subject.

         (c) The Company shall keep effective any registration or qualification
contemplated by this Section 5 and shall from time to time amend or supplement
each applicable registration statement, preliminary prospectus, final
prospectus, application, document, and communication for such period of time as
shall be required to permit the Eligible Holders to complete the offer and sale
of the Registrable Securities covered thereby.

                                      -6-
<PAGE>

         (d) In the event of a registration pursuant to the provisions of this
Section 5, the Company shall furnish to each Eligible Holder such number of
copies of the registration statement and of each amendment and supplement
thereto (in each case, including all exhibits), such reasonable number of copies
of each prospectus contained in such registration statement and each supplement
or amendment thereto (including each preliminary prospectus), all of which shall
conform to the requirements of the Securities Act and the rules and regulations
thereunder, and such other documents, as any Eligible Holder may reasonably
request to facilitate the disposition of the Registrable Securities included in
such registration.

         (e) In the event of a registration pursuant to the provisions of this
Section 5, the Company shall furnish each Eligible Holder of any Registrable
Securities so registered with an opinion of its counsel (reasonably acceptable
to the Eligible Holders) to the effect that (i) the registration statement has
become effective under the Securities Act and no order suspending the
effectiveness of the registration statement, or preventing or suspending the use
of the registration statement, any preliminary prospectus, any final prospectus
or any amendment or supplement thereto, has been issued, nor, to the knowledge
of such counsel, has the Commission or any securities or blue sky authority of
any jurisdiction instituted or threatened to institute any proceedings with
respect to such an order, (ii) the registration statement and each prospectus
forming a part thereof (including each preliminary prospectus), and any
amendment or supplement thereto, complies as to form with the Securities Act and
the rules and regulations thereunder, and (iii) such counsel has no knowledge of
any material misstatement or omission in such registration statement or any
prospectus, as amended or supplemented. Such opinion shall also state the
jurisdictions in which the Registrable Securities have been registered or
qualified for sale pursuant to the provisions of Section 5(b).

         (f) In the event of a registration pursuant to the provisions of this
Section 5, the Company shall enter into a cross-indemnity agreement and a
contribution agreement, each in customary form, with each underwriter, if any,
and, if requested, enter into an underwriting agreement containing conventional
representations, warranties, allocation of expenses, and customary closing
conditions, including, without limitation, opinions of counsel and accountants'
cold comfort letters, with any underwriter who acquires any Registrable
Securities.

         (g) The Company agrees that until all the Registrable Securities have
been sold under a registration statement or pursuant to Rule 144 under the Act,
it shall keep current in filing all reports, statements, and other materials
required to be filed with the Commission to permit holders of the Registrable
Securities to sell such securities under Rule 144 under the Act.

         SECTION 6         INDEMNIFICATION.

         (a) Subject to the conditions set forth below, the Company agrees to
indemnify and hold harmless each Eligible Holder, its officers, directors,
partners, employees, agents, and counsel, and each person, if any, who controls
any such person within the meaning of Section 15 of the Securities Act or
Section 20(a) of the Exchange Act from and against any and all loss, liability,
charge, claim, damage, and expense whatsoever (which shall include, for all
purposes of this Section 10, without limitation, reasonable attorneys' fees and
any and all expense whatsoever incurred in investigating, preparing, or

                                      -7-
<PAGE>

defending against any litigation, commenced or threatened, or any claim
whatsoever, and any and all amounts paid in settlement of any claim or
litigation), as and when incurred, arising out of, based upon, or in connection
with, (i) any untrue statement or alleged untrue statement of a material fact
contained in (A) any registration statement, preliminary prospectus, or final
prospectus (as from time to time amended and supplemented), or any amendment or
supplement thereto, relating to the offer and sale of any of the Registrable
Securities, or (B) any application or other document or communication (in this
Section 10, referred to collectively as an "APPLICATION") executed by, or on
behalf of, the Company or based upon written information furnished by, or on
behalf of, the Company filed in any jurisdiction in order to register or qualify
any of the Registrable Securities under the securities or "blue sky" laws
thereof or filed with the Commission or any securities exchange; or any omission
or alleged omission to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, unless such statement
or omission was made in reliance upon, and in conformity with, written
information furnished to the Company with respect to such Eligible Holder by, or
on behalf of, such person expressly for inclusion in any registration statement,
preliminary prospectus or final prospectus, or any amendment or supplement
thereto, or in any application, as the case may be, or (ii) any breach of any
representation, warranty, covenant, or agreement of the Company contained in
this Agreement. The foregoing agreement to indemnify shall be in addition to any
liability the Company may otherwise have, including liabilities arising under
this Agreement.

         If any action is brought against any Eligible Holder or any of its
officers, directors, partners, employees, agents, or counsel, or any controlling
persons of such person (an "INDEMNIFIED PARTY") in respect of which indemnity
may be sought against the Company pursuant to the foregoing paragraph, such
indemnified party or parties shall promptly notify the Company in writing of the
institution of such action (but the failure so to notify shall not relieve the
Company from any liability other than pursuant to this Section 10(a)) and the
Company shall promptly assume the defense of such action, including, without
limitation, the employment of counsel reasonably satisfactory to such
indemnified party or parties) and payment of expenses. Such indemnified party or
parties shall have the right to employ its or their own counsel in any such
case, but the fees and expenses of such counsel shall be at the expense of such
indemnified party or parties unless the employment of such counsel shall have
been authorized in writing by the Company in connection with the defense of such
action or the Company shall not have promptly employed counsel reasonably
satisfactory to such indemnified party or parties to have charge of the defense
of such action or the named parties to such action include both the indemnified
and the indemnifying parties and such indemnified party or parties shall have
reasonably concluded that there may be one or more legal defenses available to
it or them or to other indemnified parties which are different from, or in
addition to, those available to the Company, which, for reasons of conflict of
interest or otherwise, counsel to the Company is not in a position to assert, in
any of which events such reasonable fees and expenses shall be borne by the

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<PAGE>

Company and the Company shall not have the right to direct the defense of such
action on behalf of the indemnified party or parties. Anything in this Section
10 to the contrary notwithstanding, the Company shall not be liable for any
settlement of any such claim or action effected without its written consent,
which consent shall not be unreasonably withheld. The Company shall not, without
the prior written consent of each indemnified party that is not released as
described in this sentence, settle or compromise any action, or permit a default
or consent to the entry of judgment in, or otherwise seek to terminate, any
pending or threatened action, in respect of which indemnity may be sought
hereunder (whether or not any indemnified party is a party thereto), unless such
settlement, compromise, consent, or termination includes an unconditional
release of each indemnified party from all liability in respect of such action.
The Company agrees promptly to notify the Eligible Holders of the commencement
of any litigation or proceedings against the Company or any of its officers or
directors in connection with the sale of any Registrable Securities or any
preliminary prospectus, prospectus, registration statement, or amendment or
supplement thereto, or any application relating to any sale of any Registrable
Securities.

         (b) Each Eligible Holder severally agrees to indemnify and hold
harmless the Company, each director of the Company, each officer of the Company
who shall have signed any registration statement covering Registrable Securities
held by such Eligible Holder, each other person, if any, who controls the
Company within the meaning of Section 15 of the Securities Act or Section 20(a)
of the Exchange Act, and its or their respective counsel, to the same extent as
the foregoing indemnity from the Company to the Eligible Holders in Section
6(a), but only with respect to statements or omissions, if any, made in any
registration statement, preliminary prospectus, or final prospectus (as from
time to time amended and supplemented), or any amendment or supplement thereto,
or in any application, in reliance upon, and in conformity with, written
information furnished to the Company with respect to any Eligible Holder by, or
on behalf of, such Eligible Holder expressly for inclusion in any such
registration statement, preliminary prospectus, or final prospectus, or any
amendment or supplement thereto, or in any application, as the case may be. If
any action shall be brought against the Company or any other person so
indemnified based on any such registration statement, preliminary prospectus, or
final prospectus, or any amendment or supplement thereto, or any application,
and in respect of which indemnity may be sought against any Eligible Holder
pursuant to this Section 6(b), such Eligible Holder shall have the rights and
duties given to the Company, and the Company and each other person so
indemnified shall have the rights and duties given to the indemnified parties,
by the provisions of Section 6(a).

         (c) To provide for just and equitable contribution, if (i) an
indemnified party makes a claim for indemnification pursuant to Section 6(a) or
6(b) hereof (subject to the limitations thereof), but it is found in a final
judicial determination, not subject to further appeal, that such indemnification
may not be enforced in such case, even though this Warrant expressly provides
for indemnification in such case, or (ii) any indemnified or indemnifying party
seeks contribution under the Act, the Exchange Act, or otherwise, then the
Company (including for this purpose any contribution made by, or on behalf of,
any director of the Company, any officer of the Company who signed any such
registration statement, any controlling person of the Company, and its or their
respective counsel), as one entity, and the Eligible Holders of the Registrable
Securities included in such registration in the aggregate (including for this
purpose any contribution by, or on behalf of, an indemnified party), as a second
entity, shall contribute to the losses, liabilities, claims, damages, and
expenses whatsoever to which any of them may be subject, on the basis of
relevant equitable considerations such as the relative fault of the Company and
such Eligible Holders in connection with the facts which resulted in such
losses, liabilities, claims, damages, and expenses. The relative fault, in the
case of an untrue statement, alleged untrue statement, omission, or alleged
omission, shall be determined by, among other things, whether such statement,
alleged statement, omission, or alleged omission relates to information supplied
by the Company or by such Eligible Holders, and the parties' relative intent,

                                      -9-
<PAGE>

knowledge, access to information, and opportunity to correct or prevent such
statement, alleged statement, omission, or alleged omission. The Company and the
Eligible Holders agree that it would be unjust and inequitable if the respective
obligations of the Company and the Eligible Holders for contribution were
determined by pro rata or per capita allocation of the aggregate losses,
liabilities, claims, damages, and expenses (even if the Eligible Holders and the
other indemnified parties were treated as one entity for such purpose) or by any
other method of allocation that does not reflect the equitable considerations
referred to in this Section 10(c). In no case shall any Eligible Holder be
responsible for a portion of the contribution obligation imposed on all Eligible
Holders in excess of its pro rata share based on the number of Conversion Shares
and Warrant Shares owned (or which would be owned upon exercise of all
Registrable Securities) by it and included in such registration as compared to
the number of Conversion Shares and Warrant Shares owned (or which would be
owned upon exercise of all Registrable Securities) by all Eligible Holders and
included in such registration. No person guilty of a fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who is not guilty of such fraudulent
misrepresentation. For purposes of this Section 6(c), each person, if any, who
controls any Eligible Holder within the meaning of Section 15 of the Securities
Act or Section 20(a) of the Exchange Act and each officer, director, partner,
employee, agent, and counsel of each such Eligible Holder or control person
shall have the same rights to contribution as such Eligible Holder or control
person and each person, if any, who controls the Company within the meaning of
Section 15 of the Act or Section 20(a) of the Exchange Act, each officer of the
Company who shall have signed any such registration statement, each director of
the Company, and its or their respective counsel shall have the same rights to
contribution as the Company, subject in each case to the provisions of this
Section 6(c). Anything in this Section 6(c) to the contrary notwithstanding, no
party shall be liable for contribution with respect to the settlement of any
claim or action effected without its written consent. This Section 6(c) is
intended to supersede any right to contribution under the Act, the Exchange Act,
or otherwise.

         SECTION 7         MISCELLANEOUS.

         (a) All costs and expenses, including the fees and disbursements of
counsel to the Investor incurred in connection with this Agreement and the Notes
and the transactions contemplated hereby, will be paid by the Company upon
consummation of the transactions contemplated in this Agreement. Notwithstanding
the foregoing, in the event that the Investor should sue the Company for breach
of this Agreement, the Notes, or the Warrant or for the enforcement thereof and
prevail in such action, the legal fees and expenses of such action incurred by
the Investor shall be paid for upon demand by the Company.

         (b) Subject to the terms and conditions herein provided, each of the
parties hereto agrees to use all reasonable efforts to take, or cause to be
taken, all action and to do, or cause to be done, all things necessary, proper
or advisable under applicable laws and regulations to consummate and make
effective the transactions contemplated by this Agreement. In the event at any
time after the closing of the transactions contemplated hereby, any further
action is necessary or desirable to carry out the purposes of this Agreement or
any other Transaction Document, the Company and the Investor, as the case may
be, will take all such necessary action.

                                      -10-
<PAGE>

         (c) At any time prior to the date of the closing of the transactions
contemplated hereby any party hereto may (i) extend the time for the performance
of any of the obligations or other acts of the pother party hereto, (ii) waive
any inaccuracies in the representations and warranties of the other party
hereto, or contained herein or in any document delivered pursuant hereto by such
other party, and (iii) waive compliance with any of the agreements or conditions
contained herein to be performed by such other party hereto. Any agreement on
the part of any party hereto to any such extension or waiver will be valid only
if set forth in an instrument, in writing, signed on behalf thereof.

         (d) Any notice or other communication required or permitted to be given
hereunder shall be in writing and shall be mailed by certified mail, return
receipt requested or by the most nearly comparable method if mailed from or to a
location outside of the United States or by Federal Express, Express Mail, or
similar overnight delivery or courier service or delivered (in person or by
telecopy, telex, or similar telecommunications equipment) against receipt to the
party to which it is to be given at the address of such party set forth in the
introductory paragraph to this Agreement (or to such other address as the party
shall have furnished in writing in accordance with the provisions of this
Section 7(d)) Any notice to the Company shall be addressed to the attention of
the Corporate Secretary. A copy of any and all notices to Investor shall be
delivered in accordance with this section to Reitler Brown LLC, 800 Third
Avenue, 21st Floor, New York 10022, Attention: Robert Steven Brown, Esq. Any
notice or other communication given by certified mail (or by such comparable
method) shall be deemed given at the time of certification thereof (or
comparable act), except for a notice changing a party's address which will be
deemed given at the time of receipt thereof. Any notice given by other means
permitted by this Section 7(d) shall be deemed given at the time of receipt
thereof.

         (e) This Agreement will inure to the benefit of and be binding upon the
parties hereto and the respective successors and assigns. Nothing in this
Agreement is intended to confer, expressly or by implication, upon any other
person any rights or remedies under or by reason of this Agreement.

         (f) This Agreement may be executed in one or more counterparts, each of
which will be deemed an original and all together will constitute one document.
The delivery by facsimile of an executed counterpart of this Agreement will be
deemed to be an original and will have the full force and effect of an original
executed copy.

         (g) The provisions of this Agreement will be deemed severable and the
invalidity or unenforceability of any provision hereof will not affect the
validity or enforceability of any of the other provisions hereof. If any
provisions of this Agreement, or the application thereof to any person or any
circumstance, is illegal, invalid or unenforceable, (a) a suitable and equitable
provision will be substituted therefor in order to carry out, so far as may be
valid and enforceable, the intent and purpose of such invalid or unenforceable
provision, and (b) the remainder of this Agreement and the application of such
provision to other persons or circumstances will not be affected by such
invalidity or unenforceability, nor will such invalidity or unenforceability
affect the validity or enforceability of such provision, or the application
thereof, in any other jurisdiction.

                                      -11-
<PAGE>

         (h) The Article and Section headings are provided herein for
convenience of reference only and do not constitute a part of this Agreement and
will not be deemed to limit or otherwise affect any of the provisions hereof.

         (i) This Agreement will be deemed to be made in and in all respects
will be interpreted, construed and governed by and in accordance with the law of
the State of New York, without regard to the conflict of law principles thereof.

         (j) All terms, conditions, representations and warranties set forth in
this Agreement or in any instrument, certificate, opinion, or other writing
providing for in it, will survive the closing of the transactions contemplated
hereby, regardless of any investigation made by or on behalf of any of the
parties hereto.

         (k) This Agreement will not be assignable by the Company by operation
of law or otherwise and any attempted assignment of this Agreement in violation
of this subsection will be void ab initio.

         (l) This Agreement may be amended with the approval of the parties
hereto at any time. This Agreement may not be amended except by an instrument,
in writing, signed on behalf of each of the parties hereto.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

                                      -12-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement in a manner legally binding upon them as of the date first above
written.

                                                     /s/ Joel Gold
                                                     ---------------------------
                                                     JOEL GOLD

                                                     SURFNET MEDIA GROUP, INC.

                                                     BY /s/ Robert Arkin
                                                        ---------------------
                                                          ROBERT ARKIN
                                                          CHAIRMAN

                                      -13-
<PAGE>THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND NEITHER THIS NOTE NOR
ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR OTHERWISE
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS
EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR
(2) THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF THIS NOTE, WHICH
COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT THIS NOTE
MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR TRANSFERRED IN THE MANNER
CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR
APPLICABLE STATE SECURITIES LAWS.

                            SURFNET MEDIA GROUP, INC.
                           CONVERTIBLE PROMISSORY NOTE

$35,00.00                                                          JULY 30, 2004
                                                              NEW YORK, NEW YORK

         SURFNET MEDIA GROUP, INC., a Delaware corporation (the "COMPANY"), for
value received, hereby promises to pay to TRINITY BUI, an individual residing at
420 East 55th Street, New York, New York 10022, or registered assigns (the
"HOLDER"), the principal amount of Thirty-Five Thousand United States Dollars
($35,000) on the Maturity Date (as defined below), and to pay interest on the
unpaid principal balance hereof at the rate (calculated on the basis of a
360-day year consisting of twelve 30-day months) of 18% per annum from the date
hereof until the Maturity Date. Accrued interest on the unpaid principal balance
hereof shall be payable on the Maturity Date or upon the earlier repayment of
this Note. In no event shall any interest to be paid hereunder exceed the
maximum rate permitted by law. In any such event, this Note shall automatically
be deemed amended to permit interest charges at an amount equal to, but no
greater than, the maximum rate permitted by law. All capitalized terms used, but
not otherwise defined, herein shall have the respective definitions assigned
thereto in the Agreement (as hereinafter defined).

         1.       AGREEMENT; PRIORITY.

         This Note was issued by the Company pursuant to the Agreement, dated as
of July 30, 2004 (the "Agreement"), between the Holder and the Company. In
connection with the Agreement, the Holder made representations and warranties to
the Company upon which the Company is relying in connection with the transaction
evidenced hereby.

         2. PAYMENTS.

         (a) The principal of this Note shall be due and payable in full on the
Maturity Date unless converted in accordance with Section 8 hereof. The
"MATURITY DATE" shall be October 1, 2005.

         (b) Interest on this Note shall accrue from the date of issuance hereof
through the Maturity Date.

                                      -1-
<PAGE>

         (c) If the Maturity Date falls on a day that is not a Business Day (as
defined below), the payment due on the Maturity Date will be made on the next
succeeding Business Day with the same force and effect as if made on the
Maturity Date. "BUSINESS DAY" means any day which is not a Saturday or Sunday
and is not a day on which banking institutions are generally authorized or
obligated to close in the City of New York, New York.

         (d) The Company may not, without the prior written consent of the
Holder, prepay all or any part of the principal of this Note, without payment of
any premium or penalty. All payments on this Note shall be applied first to
accrued interest hereon and the balance to the payment of principal hereof.

         (e) Payments of principal of, and interest on, this Note shall be made
by check sent to the Holder's address set forth above or to such other address
as the Holder may designate for such purpose from time to time by written notice
to the Company, in such coin or currency of the United States of America as at
the time of payment shall be legal tender for the payment of public and private
debts. Alternatively, principal of, and interest on, this Note with respect to
the Maturity Date may be paid by electronic wire transfer in accordance with
instructions provided by the Holder to the Company at least 10 Business Days
prior to the Maturity Date.

         (f) The obligations to make the payments provided for in this Note are
absolute and unconditional and not subject to any defense, set-off,
counterclaim, rescission, recoupment, or adjustment whatsoever. The Company
hereby expressly waives demand and presentment for payment, notice of
non-payment, notice of dishonor, protest, notice of protest, bringing of suit,
and diligence in taking any action to collect any amount called for hereunder,
and shall be directly and primarily liable for the payment of all sums owing and
to be owing hereon, regardless of and without any notice, diligence, act, or
omission with respect to the collection of any amount called for hereunder.

         3. RANKING OF NOTE.

         The payment of principal of, and accrued and unpaid interest on, this
Note is senior unsecured indebtedness of the Company.

         4.       COVENANTS.

                  The Company covenants and agrees with the Holder that, so long
as any amount remains unpaid on the Note, unless the consent of the majority in
interest of all of the Holders is obtained or except as otherwise provided
herein, the Company:

         (a) Shall not pay any dividend or make any distribution on, or
purchase, redeem, or retire, any shares of its capital stock or any warrants,
options, or other rights to reacquire any such shares, except that the Company
may pay dividends payable solely in shares of its capital stock.

         (b) Shall deliver to each Holder:

                                      -2-
<PAGE>

                  (i) as soon as available, and in any event within 45 days
after the end of each of the first three quarterly fiscal periods of each fiscal
year of the Company, consolidated statements of income, retained earnings, and
cash flow of the Company, for such period and for the period from the beginning
of the respective fiscal year to the end of such period, and the related
consolidated balance sheet of the Company and its subsidiaries as at the end of
such period setting forth in the case of each such statement in comparative form
the corresponding figures for the corresponding period in the preceding fiscal
year, accompanied by a certificate of the chief financial officer of the
Company, which certificate shall state that (A) such financial statements fairly
present in all material respects the financial position and results of
operations of the Company and its subsidiaries, all in accordance with generally
accepted accounting principles consistently applied, and (B) no Default (as
hereinafter defined) has occurred and is continuing or, if any Default has
occurred and is continuing, a description thereof in reasonable detail and of
the action the Company has taken or proposes to take with respect thereto;

                  (ii) as soon as available and in any event within 90 days
after the end of each fiscal year of the Company, consolidated statements of
income, retained earnings, and cash flow of the Company for such fiscal year,
and the related consolidated balance sheet of the Company and its subsidiaries
as at the end of such fiscal year, setting forth in the case of each such
statement in comparative form the corresponding figures for the preceding fiscal
year, and accompanied by (A) an opinion thereon of independent certified public
accountants to the Company, which opinion shall state that such financial
statements present fairly, in all material respects, the financial position and
results of operations of the Company and its subsidiaries in conformity with
generally accepted accounting principles consistently applied, and (B) a
certificate of the chief financial officer of the Company stating that no
Default has occurred and is continuing or, if any Default has occurred and is
continuing, a description thereof in reasonable detail and of the action the
Company has taken or proposes to take with respect thereto;

                  (iii) promptly after the Company shall obtain knowledge of
such, written notice of all legal or arbitral proceedings, and of all
proceedings by or before any governmental or regulatory authority or agency, and
each material development in respect of such legal or other proceedings,
affecting the Company and its subsidiaries, except proceedings which, if
adversely determined, would not have a material adverse effect on the Company
and its subsidiaries taken as a whole; and

                  (iv) promptly after the Company shall obtain knowledge of the
occurrence of any Event of Default (as hereinafter defined) or any event which
with notice or lapse of time or both would become an Event of Default (an Event
of Default or such other event being a "DEFAULT"), a notice specifying that such
notice is a "NOTICE OF DEFAULT" and describing such Default in reasonable
detail, and, in such Notice of Default or as soon thereafter as practicable, a
description of the action the Company has taken or proposes to take with respect
thereto.

         (c) Shall not consummate any financing, whether debt, equity, or
otherwise, without the prior consent of the Holder.

         (d) Shall not sell, otherwise dispose of, pledge, encumber, subject to
equitable or legal lien or charge any assets of the Company.

                                      -3-
<PAGE>

         5.       EVENTS OF DEFAULT.

         The occurrence of any of the following events shall constitute an event
of default (an "EVENT OF Default"):

         (a) A default in the payment of the principal on any Note, when and as
the same shall become due and payable.

         (b) A default in the payment of any interest on any Note, when and as
the same shall become due and payable, which default shall continue for five
business days after the date fixed for the making of such interest payment.

         (c) A default in the performance, or a breach, of any of the covenants
of the Company contained in Sections 2 or 4 of this Note or contained in the
Agreement.

         (d) A default in the performance, or a breach, of any other covenant or
agreement of the Company in (i) this Note and continuance of such default or
breach for a period of 30 days after receipt of notice from the Holder as to
such breach or after the Company had or should have had knowledge of such breach
(ii) the Agreement.

         (e) Any representation, warranty, or certification made by the Company
pursuant to this Note or the Agreement shall prove to have been false or
misleading as of the date made in any material respect.

         (f) A final judgment or judgments for the payment of money in excess of
$100,000 in the aggregate shall be rendered by one or more courts,
administrative or arbitral tribunals or other bodies having jurisdiction against
the Company and the same shall not be discharged (or provision shall not be made
for such discharge), or a stay of execution thereof shall not be procured,
within 60 days from the date of entry thereof and the Company shall not, within
such 60-day period, or such longer period during which execution of the same
shall have been stayed, appeal therefrom and cause the execution thereof to be
stayed during such appeal.

         (g) The entry of a decree or order by a court having jurisdiction
adjudging the Company bankrupt or insolvent, or approving a petition seeking
reorganization, arrangement, adjustment, or composition of or in respect of the
Company, under federal bankruptcy law, as now or hereafter constituted, or any
other applicable federal or state bankruptcy, insolvency, or other similar law,
and the continuance of any such decree or order unstayed and in effect for a
period of 60 days; or the commencement by the Company of a voluntary case under
federal bankruptcy law, as now or hereafter constituted, or any other applicable
federal or state bankruptcy, insolvency, or other similar law, or the consent by
it to the institution of bankruptcy or insolvency proceedings against it, or the
filing by it of a petition or answer or consent seeking reorganization or relief
under federal bankruptcy law or any other applicable federal or state law, or
the consent by it to the filing of such petition or to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator, or similar official of
the Company or of any substantial part of its property, or the making by it of
an assignment for the benefit of creditors, or the admission by it in writing of
its inability to pay its debts generally as they become due, or the taking of
corporate action by the Company in furtherance of any such action.

                                      -4-
<PAGE>

         6. REMEDIES UPON DEFAULT.

         (a) Upon the occurrence of an Event of Default referred to in Section
5(g), the principal amount then outstanding of, and the accrued interest on,
this Note shall automatically become immediately due and payable without
presentment, demand, protest, or other formalities of any kind, all of which are
hereby expressly waived by the Company. Upon the occurrence of an Event of
Default referred to in Section 5(a) or (b), the Holder, by notice in writing
given to the Company, may declare the entire principal amount then outstanding
of, and the accrued interest on, this Note to be due and payable immediately,
and upon any such declaration the same shall become and be due and payable
immediately, without presentation, demand, protest, or other formalities of any
kind, all of which are expressly waived by the Company. Upon the occurrence of
an Event of Default other than one referred to in Sections 5(a), (b) or (g), the
Holders of not less than 50% in principal amount of then outstanding Notes
(excluding any Notes held by or for the account of the Company or any affiliate
of the Company) may declare the principal amount then outstanding of, and the
accrued interest on, the Notes to be due and payable immediately, and upon such
declaration the same shall become due and payable immediately, without
presentation, demand, protest, or other formalities of any kind, all of which
are expressly waived by the Company.

         (b) The Holder may institute such actions or proceedings in law or
equity as it shall deem expedient for the protection of its rights and may
prosecute and enforce its claims against all assets of the Company, and in
connection with any such action or proceeding shall be entitled to receive from
the Company payment of the principal amount of this Note plus accrued interest
to the date of payment plus reasonable expenses of collection, including,
without limitation, attorneys' fees and expenses.

         7. TRANSFER.

         (a) Any Notes issued upon the transfer of this Note shall be numbered
and shall be registered in a Note Register as they are issued. The Company shall
be entitled to treat the registered holder of any Note on the Note Register as
the owner in fact thereof for all purposes and shall not be bound to recognize
any equitable or other claim to or interest in such Note on the part of any
other person, and shall not be liable for any registration or transfer of Notes
which are registered or to be registered in the name of a fiduciary or the
nominee of a fiduciary unless made with the actual knowledge that a fiduciary or
nominee is committing a breach of trust in requesting such registration or
transfer, or with the knowledge of such facts that its participation therein
amounts to bad faith. This Note shall be transferable only on the books of the
Company upon delivery thereof duly endorsed by the Holder or by his duly
authorized attorney or representative, or accompanied by proper evidence of
succession, assignment, or authority to transfer. In all cases of transfer by an
attorney, executor, administrator, guardian, or other legal representative, duly
authenticated evidence of his or its authority shall be produced. Upon any
registration of transfer, the Company shall deliver a new Note or Notes to the
person entitled thereto. This Note may be exchanged, at the option of the Holder
thereof, for another Note, or other Notes of different denominations, of like
tenor and representing in the aggregate a like principal amount, upon surrender
to the Company or its duly authorized agent. Notwithstanding the foregoing, the
Company shall have no obligation to cause Notes to be transferred on its books
to any person if, in the opinion of counsel to the Company, such transfer does
not comply with the provisions of the Securities Act and the rules and
regulations thereunder.

                                      -5-
<PAGE>

         (b) The Holder acknowledges that he has been advised by the Company
that this Note has not been registered under the Securities Act, that this Note
is being issued on the basis of the statutory exemption provided by Section 4(2)
of the Act or Regulation D promulgated thereunder, or both, relating to
transactions by an issuer not involving any public offering. The Holder
acknowledges that he has been informed by the Company of, or is otherwise
familiar with, the nature of the limitations imposed by the Securities Act and
the rules and regulations thereunder on the transfer of securities. In
particular, the Holder agrees that no sale, assignment or transfer of this Note
shall be valid or effective, and the Company shall not be required to give any
effect to any such sale, assignment or transfer, unless (i) the sale,
assignment, or transfer of this Note is registered under the Securities Act, it
being understood that this Note is not currently registered for sale and that
the Company has no obligation or intention to so register the Notes, or (ii)
this Note is sold, assigned, or transferred in accordance with all the
requirements and limitations of Rule 144 under the Act, it being understood that
Rule 144 is not available at the time of the original issuance of this Note for
the sale of this Note and that there can be no assurance that Rule 144 sales
will be available at any subsequent time, or (iii) such sale, assignment, or
transfer is otherwise exempt from registration under the Securities Act.

         8. CONVERSION.

         (a) (i) During the period commencing on September 30, 2004 and
terminating on the Maturity Date or the earlier prepayment of this Note pursuant
hereto, the Holder may convert the principal amount of this Note due and payable
on the Maturity Date, and any payment of interest thereon (the "CONVERSION
AMOUNT"), into shares of Common Stock determined by dividing the Conversion
Amount by the Conversion Price (as defined below).

                  (ii) Unless earlier converted pursuant to Section 8(a) above,
on the Maturity Date the outstanding principal amount of this Note due and
payable on the Maturity Date, and any payment of interest thereon, shall
automatically be converted into shares of Common Stock determined by dividing
the Conversion Amount by the Conversion Price (as defined below).

         (b) The number of shares of Common Stock to be delivered upon such
conversion shall equal the quotient of (A) divided by (B), where (A) equals the
principal amount of, and accrued but unpaid interest on, this Note, and where
(B) equals the Conversion Price. For purposes of this Note, the term "CONVERSION
PRICE" shall mean $0.17.

         (c) (i) (A) In the event that the Company shall at any time after the
date of this Note (the "ISSUANCE DATE") (1) declare a dividend on the
outstanding Common Stock payable in shares of its capital stock, (2) subdivide
the outstanding Common Stock, (3) combine the outstanding Common Stock into a
smaller number of shares, or (4) issue any shares of its capital stock by
reclassification of the Common Stock (including any such reclassification in
connection with a consolidation or merger in which the Company is the continuing
corporation), then, in each case, the Conversion Price at the time of the record
date for the determination of stockholders entitled to receive such dividend or
distribution or of the effective date of such subdivision, combination, or
reclassification shall be adjusted so that it shall equal the Conversion Price
theretofore in effect multiplied by a fraction, the numerator of which shall
equal the number of shares outstanding immediately prior to the effective date
of such event and the denominator of which shall equal the number of shares
outstanding immediately following the effective date of such event.

                                      -6-
<PAGE>

                           (B) In the event that that Company shall at any time
after the Issuance Date issue any shares of Common Stock such that the number of
issued and outstanding shares of Common Stock (on a fully diluted basis) shall
exceed 12,000,000 (subject to adjustments for stock splits, stock dividends,
reverse stock splits, and reclassifications, but excluding any shares issued or
issuable upon the conversion hereof or upon the exercise of the Warrants (as
defined in the Agreement)), then, in each case, the Conversion Price theretofore
in effect shall be adjusted so that it shall equal the product of (X) multiplied
by (Y), where (X) equals the Conversion Price theretofore in effect and where
(Y) equals a fraction, the numerator of which is 12,000,000 (subject to
adjustments for stock splits, stock dividends, reverse stock splits, and
reclassifications, but excluding any shares issued or issuable upon the
conversion hereof or upon the exercise of the Warrants (as defined in the
Agreement)), and the denominator of which is the number of shares of Common
Stock issued and outstanding (on a fully diluted basis, but excluding any shares
issued or issuable upon the conversion hereof or upon the exercise of the
Warrants (as defined in the Agreement)), provided that such denominator exceeds
12,000,000 (subject to adjustments for stock splits, stock dividends, reverse
stock splits, and reclassifications, but excluding any shares issued or issuable
upon the conversion hereof or upon the exercise of the Warrants (as defined in
the Agreement)).

                  (ii) In the event that the Company shall fix a record date for
the determination of stockholders entitled to receive issuance of rights or
warrants to be issued to all holders of Common Stock entitling such stockholders
to subscribe for or purchase shares of Common Stock (or securities convertible
into Common Stock) at a price (the "SUBSCRIPTION PRICE") (or having a conversion
price per share) less than the then Conversion Price on such record date, the
Conversion Price in effect at the time of such record date shall be adjusted so
that the same shall equal the price determined by multiplying such Conversion
Price in effect immediately prior to such record date of such issuance by a
fraction, the numerator of which shall be the sum of (A) the number of shares of
Common Stock outstanding on such record date and (B) the number of additional
shares of Common Stock which the aggregate offering price of the total number of
shares of Common Stock so offered (or the aggregate conversion price of the
convertible securities so offered) would purchase at the Conversion Price in
effect at the time of such record date, and the denominator of which shall be
the sum of (C) the number of shares of Common Stock outstanding on such record
date and (D) the number of additional shares of Common Stock offered for
subscription or purchase (or into which the convertible securities so offered
are convertible). Such adjustment shall be made successively whenever such
rights or warrants are issued and shall become effective immediately after the
record date for the determination of stockholders entitled to receive such
rights or warrants; and, to the extent that shares of Common Stock are not
delivered (or securities convertible into Common Stock are not delivered) after
the expiration of such rights or warrants, the Conversion Price shall be
readjusted to the Conversion Price which would then be in effect had the
adjustments made upon the issuance of such rights or warrants been made upon the
basis of delivery of only the number of shares of Common Stock (or securities
convertible into Common Stock) actually delivered.

                                      -7-
<PAGE>

                  (iii) In the event that the Company shall issue any securities
convertible into, or exercisable or exchangeable for, Common Stock (excluding
securities issued in transactions described in clause (iii) above) for a
consideration per share of Common Stock (the "EXCHANGE PRICE") initially
deliverable upon conversion, exercise, or exchange of such securities
(determined as provided in (v) below) less than the Conversion Price in effect
immediately prior to the issuance of such securities, the Conversion Price in
effect immediately prior to the date of such issuance shall be adjusted
immediately thereafter so that it shall equal the price determined by
multiplying such Conversion Price by a fraction, the numerator of which shall be
the sum of (A) the number of shares of Common Stock outstanding immediately
prior to the issuance of such securities and (B) the number of shares of Common
Stock which the aggregate consideration received (determined as provided in
clause (v) below) for such securities would purchase at such Conversion Price,
and the denominator of which shall be the sum of (C) the number of shares of
Common Stock outstanding immediately prior to such issuance and (D) the maximum
number of shares of Common Stock deliverable upon conversion or exercise of, or
exchange for, such securities at the initial conversion, exercise, or exchange
price or rate. Such adjustment shall be made successively whenever such
securities are issued and shall become effective immediately after the date
issuance of such securities.

                  (iv) For purposes of any computation respecting consideration
received pursuant to this clause (c), the following shall apply: (A) in the case
of the issuance of shares of Common Stock for cash, the consideration shall be
the amount of such cash, provided that in no case shall any deduction be made
for any commissions, discounts, or other expenses incurred by the Company for
any underwriting of the issue or otherwise in connection therewith; (B) in the
case of the issuance of shares of Common Stock for a consideration in whole or
in part other than cash, the consideration other than cash shall be deemed to be
the fair market value thereof as determined in good faith by the Board of
Directors of the Company (irrespective of the accounting treatment thereof), the
determination of which shall be a conclusive absent manifest error; and (C) in
the case of the issuance of securities convertible into, or exercisable or
exchangeable for, shares of Common Stock, the aggregate consideration received
therefor shall be deemed to be the consideration received by the Company for the
issuance of such securities plus the additional minimum consideration, if any,
to be received by the Company upon the conversion, exercise, or exchange thereof
(the consideration in each case to be determined in the same manner as provided
in clauses (i) and (ii) of this clause (v)).

         (d) In case of any capital reorganization, other than in the cases
referred to in paragraph (c) of this Section 8, or the consolidation or merger
of the Company with or into another Company (other than a merger or
consolidation in which the Company is the continuing corporation and which does
not result in any reclassification of the outstanding shares of Common Stock or
the conversion of such outstanding shares of Common Stock into shares of other
stock or other securities or property), or in the case of any sale, lease, or
conveyance to another corporation of the property and assets of any nature of
the Company as an entirety or substantially as an entirety (such actions being
hereinafter collectively referred to as "REORGANIZATIONS"), there shall
thereafter be deliverable upon conversion of the Notes (in lieu of the number of
shares of Common Stock theretofore deliverable) the number of shares of stock or
other securities or property to which a holder of the respective number of
shares of Common Stock which would theretofore have been deliverable upon the
conversion of such share of Notes would have been entitled upon such
Reorganization if such Notes had been converted immediately prior to such
Reorganization. In case of any Reorganization, appropriate adjustment, as
determined in good faith by the Board of Directors of the Company, shall be made
in the application of the provisions herein set forth with respect to the rights
and interests of the holders of the Notes so that the provisions set forth
herein shall thereafter be applicable, as nearly as possible, in relation to any
shares or other property thereafter deliverable upon conversion of the Notes.
Any such adjustment shall be made by, and set forth in, a supplemental agreement
between the Company, or any successor thereto, and the holders of the Notes, and
shall for all purposes hereof conclusively be deemed to be an appropriate

                                      -8-
<PAGE>

adjustment. The Company shall not effect any such Reorganization unless, upon or
prior to the consummation thereof, the successor corporation, or if the Company
shall be the surviving corporation in any such Reorganization and is not the
issuer of the shares of stock or other securities or property to be delivered to
holders of shares of the capital stock of the Company outstanding at the
effective time thereof, then such issuer, shall assume by written instrument the
obligation to deliver to the holders of the Notes such shares of stock,
securities, cash, or other property as such holders shall be entitled to
purchase in accordance with the foregoing provisions.

         (e) In case of any reclassification or change of the shares of Common
Stock or other securities issuable upon conversion of the Notes (other than a
change in par value or from a specified par value to no par value, or as a
result of a subdivision or combination, but including any change in the shares
into two or more classes or series of shares), or in case of any consolidation
or merger of another corporation into the Company in which the Company is the
continuing corporation and in which there is a reclassification or change
(including a change to the right to receive cash or other property) of the
shares of Common Stock or other securities issuable upon conversion of the Notes
(other than a change in par value, or from no par value to a specified par
value, or as a result of a subdivision or combination, but including any change
in the shares into two or more classes or series of shares), the Notes shall
thereafter be convertible into solely the kind and amount of shares of stock and
other securities, property, cash, or any combination thereof receivable upon
such reclassification, change, consolidation, or merger by a holder of the
number of shares of Common Stock for which Notes might have been exercised
immediately prior to such reclassification, change, consolidation, or merger.
Thereafter, appropriate provision shall be made for adjustments which shall be
as nearly equivalent as practicable to the adjustments in this Section 8.

         (f) The adjustment, provided by paragraph (c) of this Section 8 shall
be made successively whenever any event listed above shall occur and shall
become effective at the close of business on such record date or at the close of
business on the date immediately preceding such effective date, as applicable.
The provisions of paragraphs (d) and (e) of this Section 8 shall similarly apply
to successive reclassifications and changes of shares of Common Stock and to
successive consolidations, mergers, sales, leases, or conveyances.

         9. MISCELLANEOUS.

         (a) Any notice or other communication required or permitted to be given
hereunder shall be in writing and shall be mailed by certified mail, return
receipt requested, or by Federal Express, Express Mail or similar overnight
delivery or courier service or delivered (in person or by telecopy, telex or
similar telecommunications equipment) against receipt to the party to whom it is
to be given, (i) if to the Company, at its address, 2801 South Fair Lane, Tempe,
Arizona 85282-3162, Attention: President, (ii) if to the Holder, at its address
set forth on the first page hereof, or (iii) in either case, to such other
address as the party shall have furnished in writing in accordance with the
provisions of this Section 9(a). Notice to the estate of any party shall be
sufficient if addressed to the party as provided in this Section 9(a). Any
notice or other communication given by certified mail shall be deemed given at
the time of certification thereof, except for a notice changing a party's
address which shall be deemed given at the time of receipt thereof. Any notice
given by other means permitted by this Section 9(a) shall be deemed given at the
time of receipt thereof.

                                      -9-
<PAGE>

         (b) Upon receipt of evidence satisfactory to the Company of the loss,
theft, destruction, or mutilation of this Note (and upon surrender of this Note
if mutilated), the Company shall execute and deliver to the Holder a new Note of
like date, tenor, and denomination.

         (c) No course of dealing and no delay or omission on the part of the
Holder in exercising any right or remedy shall operate as a waiver thereof or
otherwise prejudice the Holder's rights, powers or remedies. No right, power, or
remedy conferred by this Note upon the Holder shall be exclusive of any other
right, power, or remedy referred to herein or now or hereafter available at law,
in equity, by statute or otherwise, and all such remedies may be exercised
singly or concurrently.

         (d) This Note may be amended only by a written instrument executed by
the Company and the Holder hereof. Any amendment shall be endorsed upon this
Note, and all future Holders shall be bound thereby.

         (e) This Note has been negotiated and consummated in the State of New
York and shall be governed by, and construed in accordance with, the laws of the
State of New York, without giving effect to principles governing conflicts of
law.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -10-
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Note to be executed and
dated the day and year first above written.

                                                     SURFNET MEDIA GROUP, INC.

                                                     /s/ Robert Arkin
                                                     BY:________________________
                                                          NAME:  ROBERT ARKIN
                                                          TITLE: CHAIRMAN

                                      -11-
<PAGE>

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