Document:

NUMBER 00-10-                          $10,000.00

                            UNITED STATES OF AMERICA

                                 STATE OF NEVADA

                         CAVALCADE OF SPORTS MEDIA, INC.

                   2000 CONVERTIBLE SUBORDINATED CAPITAL NOTE

         CAVALCADE OF SPORTS MEDIA, INC., a Nevada corporation, (hereinafter
called the "COMPANY"), for value received, hereby promises to pay to:
Name:_________________________________________________________________________
Address_______________________________________________________________________
or registered assigns, in legal tender of the United States of America, the
principal sum of Ten Thousand Dollars ($10,000.00), with interest at the rate of
twelve percent (12%) calculated from the date of issuance of this Capital Note
to the earlier of maturity or payment in full if paid before maturity. Unless
this Capital Note has been converted, as provided below, the principal sum
remaining and all accrued interest thereon shall be due and payable, in full, on
December 31, 2000. In the event that this note is not converted to Common Stock
of the COMPANY or paid on or before such date, then in that event interest shall
be accrued on the principal sum and all accrued but unpaid interest to December
31, 2000 at the rate of eighteen percent (18%) per annum calculated from January
1, 2001 to the date of payment in full.

         All payments shall be paid to the registered owner of this Capital Note
as of the date of payment and no proration shall be required.

         The indebtedness of the COMPANY evidenced by this Capital Note,
including the principal and any interest thereon, shall be subordinate and
junior in right of payment of its obligations to its other creditors, whether
now outstanding or hereafter incurred, (except as to any obligation of the
COMPANY ranking on a parity with or junior to this Capital Note) so that in case
of any insolvency proceedings, receivership, conservatorship, reorganization,
readjustment of debt, marshalling of assets and liabilities, or similar
proceedings relating to the COMPANY or any liquidation or winding-up of the
COMPANY, whether voluntary or involuntary, all such obligations (other than
those above excepted) shall be entitled to be paid in full before any

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payment shall be made on account of the principal of, or interest on, this
Capital Note. In the event of any such proceeding, after payment in full of all
sums owing with respect of such prior obligations, the Holder of this Capital
Notes, together with the holders of any obligations of the COMPANY ranking on a
parity with this Capital Note, shall be entitled to be paid from the remaining
assets of the COMPANY the unpaid principal thereof and any interest thereon
before any payment or other distribution, whether in cash, property or
otherwise, shall be made on account of any capital stock of the COMPANY, or any
obligations of the COMPANY ranking junior to this Capital Note. Subject to the
payment in full of all such prior obligations, the Holder of this Capital Note
shall be subrogated to the rights of the holders of such prior obligations to
receive payments or distributions of cash, property or securities of the COMPANY
applicable to such prior obligations.

         In the event that the COMPANY shall file a registration statement with
the Securities and Exchange Commission under the Securities Act of 1933 for the
registration of any securities, the COMPANY shall register sufficient shares of
its Common Stock to permit the conversion of this Capital Note to such
registered shares of Common Stock. The Holder of this Capital Note shall have
the right, for a period of thirty (30) business days following effectiveness of
any such registration statement, to convert the principal and accrued but unpaid
interest into shares of the COMPANY's Common Stock. The principal sum ($10,000)
of this Capital Note and the accrued but unpaid interest thereon shall be
convertible into Common Stock at a price of One Dollar and Twenty-five Cents
($1.25) per share. Upon any conversion of this Capital Note into Common Stock of
the COMPANY, this Capital Note shall be deemed retired and not to be outstanding
and shall not be entitled to any benefit except to receive the Common Stock
entitled to as a result of the conversion. Such conversion shall be subject to
anti-dilution protection in the event of a stock dividend, stock split, or other
restructuring of the capital structure.

         Upon the occurrence and continuance of default, the principal of this
Capital Note may be declared due and payable prior to its regular maturity. The
COMPANY shall be in default under this INSTRUMENT upon the happening of any of
the following events or conditions: (a) Failure or omission(s) to pay, or other
delinquency in the payment of; any interest upon this Capital Note as and when
the same shall become due and payable, and continuance of such delinquency for a
period of thirty (30) days; or

         (b) Failure or omission(s) to pay, or other default in the payment of
the principal of this Capital Note as and when the same shall become due and
payable either upon redemption, by declaration or otherwise; or

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         (c) If the COMPANY becomes insolvent or unable to pay its debts as they
mature or makes an assignment for the benefit of its creditors, or a proceeding
is instituted by or against the COMPANY alleging that the COMPANY is insolvent
or unable to pay its debts as they mature and such proceeding remains
undismissed for ninety (90) days; or

         (d) Failure on the part of the COMPANY duly to observe or perform any
of the covenants or agreements on the part of the COMPANY contained in this
Capital Note for a period of ninety (90) days after the date on which the
earliest written notice of such failure, requiring the COMPANY to remedy the
same, shall have been given to the COMPANY by the Holder; or

         (e) If the COMPANY shall, on a petition in bankruptcy or reorganization
filed against it, be adjudicated a bankrupt, or if a court of competent
jurisdiction shall enter an order or decree appointing, without the consent of
the COMPANY, a receiver of the COMPANY or of the whole or substantially all of
its property, or approving a petition filed against it seeking reorganization or
arrangement of the COMPANY under the federal bankruptcy laws or any other
applicable law or statute of the United States of America or any state thereof,
and such adjudication, order, or decree shall not be vacated or set aside or
stayed within ninety (90) days from the date of the entry thereof. If the
COMPANY shall default, as defined herein, then and in each and every such case,
unless the principal of this Capital Note shall have already become due and
payable, the Holder, by notice in writing to the COMPANY, may declare the
principal of this Capital Note to be due and payable immediately, and upon such
declaration the same shall become and shall be immediately due and payable,
anything in this Capital Note contained to the contrary notwithstanding.

         This Capital Note is subject to call and redemption at any time prior
to its regular maturity upon payment of the principal amount of this Capital
Note, without a redemption premium or prepayment penalty.

         Subject to the transfer restrictions of federal and state securities
laws, this Capital Note is transferable on the books of the Company, to be kept
at the office of the Company in Del Mar, California, by the registered owner
hereof in person, or by an attorney duly authorized in writing, upon surrender
and cancellation of this Capital Note. Upon any such transfer, a new registered
Capital Note or Capital Notes of the same issue and for the same aggregate
original face amount shall be issued to the transferee in exchange therefor;
provided, nevertheless, that the actual liability of the Company shall be
limited to the actual unpaid principal amount outstanding as of the date of
transfer, together with any accrued but unpaid interest thereon.

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         The Company may deem or treat the person in whose name this Capital
Note shall at the time be registered as the absolute owner hereof for the
purposes of transfer and receiving payment of principal and/or interest as well
as for all other purposes whatsoever and the Company shall not be affected by
any notice to the contrary.

         IN WITNESS WHEREOF, the COMPANY has caused this Capital Note to be
executed by the signatures of its duly authorized officers, and the corporate
seal hereunto affixed.

  Dated:

                                               CAVALCADE OF SPORTS MEDIA, INC.

ATTEST:
                                               /s/ Edward E. Litwak
                                               ---------------------
                                               Edward E. Litwak, President

/s/ Robert Stulman
------------------
Secretary

                           TRANSFER RESTRICTION NOTICE

         This Capital Note has not been registered under the Securities Act of
1933. Accordingly, this Capital Note may not be transferred unless subsequently
registered or unless, in the opinion of counsel satisfactory to the Company,
such registration is not required.

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                           ASSIGNMENT OF CAPITAL NOTE

         For value received, the undersigned, hereby sell(s), assign(s), and
transfer(s) all of his/her/their interest represented by the within 2000
Convertible Subordinated Capital Note to:

  Name(s):_____________________________________________________________________

  Street: _____________________________________________________________________
  City/State:____________________________________________Zip Code______________

and hereby irrevocably constitute(s) and appoint(s) the Secretary of CAVALCADE
OF SPORTS MEDIA, INC. attorney to transfer such Capital Note on the books of
CAVALCADE OF SPORTS MEDIA, INC. with full power of substitution in the premises.

         The officers of CAVALCADE OF SPORTS MEDIA, INC. are hereby authorized
and directed to issue a Capital Note to such transferee(s) in exchange for this
Capital Note which shall be canceled. Dated:

  WITNESS:                                           SIGNATURE(S):

_______________                                      __________________
                                                     (Registered Owner)

_______________                                      __________________
                                                     (Registered Co-Owner)

NOTICE: The signature(s) on this assignment must correspond in every particular
respect with the name(s) as written upon the face of this Capital Note.

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<PAGE>

                         CAVALCADE OF SPORTS MEDIA, INC
                                12868 VIA LATLNA
                            DEL MAR, CALIFORNIA 92014

                          MEMBERSHIP PRIVATE PLACEMENT
                                   TERM SHEET

                                EXECUTIVE SUMMARY

ISSUER:
     Cavalcade of Sports Media, Inc., (the "Company"), a Nevada corporation,
     with principal offices at 12868 Via Latina, Del Mar, California 92014.

SECURITIES OFFERED:
     Convertible Subordinated Capital Notes, in the face values of $10,000,
     $5,000 and $1,000 which are non-interest bearing prior to the maturity
     date. The Capital Notes are due on or before September 30, 2000 (maturity
     date). If the Company ' completes the state review of its Rule 504 Offering
     on or before September 30, 2000, then the principal sum of the Capital
     Notes automatically converts 'to free trading shares of the Company's
     Common Stock under the Rule 504 Offering at the per share offering price of
     $1.25 (800 shares for each $1,000 principal sum of the Capital Notes
     converted). If for any reason the review is not completed on or.. before
     September 30, 2000, then, (a) interest retroactively accrues for the period
     ' from the date of issuance to September 30, 2000 at the rate of 7% per
     annum and. for the period after the maturity date at the rate of 18% and
     (b) the Holder may elect, in his sole option, whether to convert the
     Capital Notes (principal and interest) into free trading shares of Common
     Stock under the Rule 504 Offering or may elect to demand repayment.

OFFERING PRICE:
     The Capital Notes are offered at par; i.e., at the face values of 510,000,
     $5,000 and $1,000 without discount or premium. Subject to the discretion of
     the Company's Board of Directors to permit less under special
     circumstances, the minimum investment permitted is Twenty-Five Thousand
     Dollars ($25,000) with additional increments of $ 10,000, 55,000 or $ 1,000
     or any combination thereof.

OFFERING:
     The Company is offering to sell up to One Million Dollars of its
     Convertible Subordinated Capital Notes in a private placement pursuant to
     Section 4(2) of the Securities Act of 1933 and Rule 506 issued by the SEC
     under that section. The offering will commence on January 18, 2000 and will
     continue until the earlier to occur of (a) effectiveness of the offering
     memorandum following state review or (b) September 30, 2000 or (c) sale of
     the entire 51,000,000 in Capital Notes, although the Company reserves the
     right to close the offering earlier. The offering will be on a best efforts
     basis. There is no placement agent; the Capital Notes will be sold by
     certain officers and directors of the Company, none of whom will receive
     any commissions or compensation for Capital Notes sold, although the
     Company may reimburse them for reasonable and accountable expenses incurred
     in

<PAGE>

     offering and selling the Capital Notes.. The Company reserves the right to
     reject any subscription in whole or in part.

SUITABILITY STANDARDS:
     Investors in the Capital Notes must be either accredited investors (as
     defined in Regulation D) or sufficiently knowledgeable about business and
     development stage companies.

USE OF PROCEEDS:
     The proceeds to the Company, before deducting any placement expenses but
     after or the legal and accounting expenses of this Offering and the related
     Rule 504 Offering, estimated at $25,000, will be $975,000. Such net
     proceeds will be used for investment capital and for working capital of the
     Company.

RISK FACTORS:
     The Company will be engaged in purchasing film of vintage sporting events,
     converting (digitizing) such film to a format usable for television cable
     broadcast, establishing a new television subscription cable station, which
     will broadcast the vintage sports films with and without advertising. The
     Company has incurred, and will continue to incur, the costs of acquiring
     such films and digitizing them until it has a sufficient inventory
     (library) to support continuous broadcasting for a twelve, hour period over
     a seven day week for a substantial time period, before it can commence
     broadcasting and seeking subscribers. The Company must complete
     arrangements for broadcasting, up-linking (to the satellite) the signal,
     and distribute such channel via existing television service providers
     (e.g., DirectTV) and will incur expenses for that before the commencement
     of broadcasting. There is no assurance that the Company will be able to
     secure a sufficient digitized film library to meet the demands of
     subscribers or to interest television service providers in adding this
     vintage sports channel. There is no assurance that, if available through a
     television service provider, sufficient viewers will subscribe to permit
     the Company to become profitable.

TRANSFER RESTRICTIONS:
     The Capital Notes being sold in this offering have not been registered with
     the Securities and Exchange Commission. Therefore, if you purchase any
     Capital Notes they will be restricted from resale, transfer or other
     disposition. The shares of Common Stock into which the Capital Notes are
     convertible will, however, be registered as a Rule 504 Offering and will
     therefore be free-trading upon effectiveness of the Offering Memorandum
     following state review.

TRANSFER AGENT:
     The Company's stock transfer agent is Olde Monmouth Stock Transfer Co.,
     Inc., 77 Memorial Parkway, Atlantic Highlands; New Jersey 07716. Its
     telephone number is (908) 872-2727. There is, however, no transfer agent
     for the Capital Notes since they are being issued in a private placement
     and transfer is restricted.

                                        2PROMISSORY NOTE

  EXECUTED AT: NEW YORK CITY

  DATED: AUGUST 10, 2000

  PRINCIPAL SUM: $100,000

         FOR A LOAN RECEIVED in the principal sum shown above, CAVALCADE OF
SPORTS MEDIA, INC., a Nevada corporation with principal offices located at 12868
Via Latina, Del Mar, California 92014 ("Borrower"), promises to pay to the order
of:

Name: DON GAON ("Lender")

the principal sum set forth above on or before:

Maturity Date: FEB 10, 2001.

The loan represented by this Promissory Note shall bear interest at the rate of
18% per annum, simple interest from the date hereof. Interest shall be payable
at maturity. If Borrower fails to pay the full amount of principal together with
the interest thereon on the date it becomes due, Borrower shall be in default.
The unpaid principal and the unpaid interest thereon shall thereafter both bear
interest at the rate of eighteen percent (180) per annum until paid; but this
provision shall not increase the liability of Borrower beyond the legal interest
rate. If any law, which applies to this loan and which sets maximum loan
charges, is finally interpreted so that the interest or other loan charges to be
collected in connection with this loan exceed permitted limits, then this loan
shall not be void but any such interest or loan charge shall be reduced by the
amount necessary to reduce such interest or loan charge to permitted limits.
Borrower agrees to pay all costs of collection, including reasonable attorney
fees in case payment is not made when it becomes due. Presentment, notice of
dishonor, and protest are hereby waived by the Borrower. This Note is to be
construed and enforced in accordance with the laws of the State of Nevada in
existence on the date of this Promissory Note.

         IN WITNESS WHEREOF, intending to be legally bound, the Borrower has
executed this Promissory Note as of the date above written.

                                                 CAVALCADE OF SPORTS MEDIA, INC.

                                                   By: /s/ Edward E. Litwak
                                                   ----------------------------
                                                    Edward E. Litwak, President

<PAGE>

                                    GUARANTY

KNOW ALL MEN BY THESE PRESENTS:

FOR VALUE RECEIVED this 10 day of August 2000, Ed Litwak an individual
residing at 12869 Via Latina, Del Mar, CA 92104 hereby unconditionally and
irrevocably jointly and severally guarantees to DON GAON, an individual with his
address at c/o World Direct Trade, 53 W. 36th Street, Suite 1102, New York, NY
1008 and his successors and assigns ("Lender") the following:

The timely and full payment and repayment from CAVALCADE OF SPORTS MEDIA, INC.,
a Nevada corporation with offices at 12858 Via Latina, Del Mar, CA 92014
("Borrower") of which Guarantor is a shareholder, officer and director, under
that certain promissory note dated August 9, 2000 made by Borrower to Lender in
the original principal amount of $100,000.00 (the "Note") evidencing the loan
made by Lender to Borrower, and any and all accrued and unpaid interest at the
rates provided for in the Note, late charges, expenses of collection and any
other amounts as may be provided in the Note; and all costs and expenses of and
advances made by Lender (including, without limitation, attorneys' fee and
disbursements) in enforcing the Note and Borrower's and Guarantor's obligations
thereunder and hereunder, together with interest thereon as the interest rate
set forth in the Note.

The obligations of Guarantor hereunder are and shall be absolute under any and
all circumstances without regard to the validity, regularity or enforceability
of the Note. The obligations of the Guarantor hereunder are primary, direct,
unconditional and completely independent of the obligations of Borrower. A
separate cause of action or separate causes of action may be brought and
prosecuted against Guarantor without the necessity of joining, or previously
proceeding or exhausting any other remedy against, Borrower, or any other person
who might have become liable for the indebtedness by assumption thereof or
otherwise, or of realizing upon any security then held by Lender. Guarantor
hereby specifically waives any and all defenses of any and every kind
(including, without limitation, substantive, procedural and jurisdictional
defenses) to any action or proceeding brought to enforce this Guaranty or any
part of this Guaranty either at law or in equity, except the single defense that
all the obligations of Guarantor have actually been paid and performed. Lender
shall not be required to give notice to Guarantor of any failure or omission on
the part of Borrower to meet any payments sooner than at the time payment
hereunder is demanded, and Guarantor expressly waives any other notice,
diligence, presentment, demand for payment and protest.

This instrument is to be construed as a continuing, binding, absolute and
unconditional guaranty that shall remain in full force and effect as written
from and after the date hereof until actual payment and performance of the
obligations of the Guarantor in full, both principal and interest, and all sums
and obligations due under the Note and Guaranty.  Guarantor shall pay all
reasonable attorneys' fees and disbursements and other costs and expenses
incurred by Lender if Lender reports to the courts or otherwise requires the
services on an attorney to enforce this Guaranty or the Note.

If claim is ever made upon Lender for repayment or recovery of any amounts
received by Lender in payment of any of the indebtedness evidenced by the Note
and Lender repays all or part of said amount by reason of (a) any judgment,
decree or order of any court or administrative body having jurisdiction over
Lender or any of its property, or (b) any settlement or compromise of such claim
 effected by Lender with any such claimant (including, without limitation,
Borrower), then, in such event, Guarantor agrees that any such judgment, decree,
order, settlement or compromise shall be binding upon Guarantor, notwithstanding
any revocation, termination or return thereof or the cancellation of the Note,
and Guarantor shall be and remain obligated to Lender hereunder for the amount
so repaid or recovered to the same extent as if such amount had never originally
been received by Lender.

This Guaranty shall be construed in accordance with the laws of the State of New
York without reference to principles of conflict of laws (including, without
limitation, the laws of any other country).  This Guaranty cannot be modified,
amended or terminated orally.  If any part of this Guaranty shall not be valid

<PAGE>

under the laws of the State of New York, such part shall be rendered
inoperative, but the remainder of this Guaranty shall be enforceable. Guarantor
hereby irrevocably agrees that Guarantor is and shall remain subject to, and
Guarantor hereby irrevocably submits to personal jurisdiction in all State and
Federal courts located in the State and County of New York in any action or
proceeding arising out of this Guaranty and Guarantor hereby waives any defense
or right to stay or dismiss on the basis of forum non conveniene regarding any
action or proceeding brought before said courts. Service of any notice or
summons and complaint or other process in any such action or proceeding may be
made on Guarantor by U.S. Mail to Guarantor's address first set forth above,
Guarantor hereby waiving personal service thereof, or as may otherwise be
permitted by law. Guarantor hereby waives the right of trial by jury in any
litigation assign hereunder and also waives the right, in such litigation, to
interpose counterclaims or setoffs of any kind or description. No delay on the
part of Lender in exercising any power or right hereunder or under the Note or
this Guaranty shall operate as a waiver thereof: nor shall nay single or partial
exercise of any power or right hereunder or the failure to exercise same in any
instance preclude other or further exercise thereof or the exercise of any other
power or right; not shall Lender be liable for exercising or failing to exercise
any such power or right; nor shall Lender be liable for exercising or fialing to
exercise any such power or right; the rights and remedies hereunder expressly
specified are cumulative and not exclusive of any right or remedies which Lender
may or will otherwise have.

Wherever the word  "Lender"  appears,  the rights and authority  granted  Lender
shall also inure to the  benefit of its  successors  and assigns  (whether  such
statement follows the word Lender or not) and the agreements contained herein by
Guarantor shall also bind the heirs, successors and assigns of Guarantor.

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

                                       /s/ Ed Litwak
                                       -----------------
                                       Name of Guarantor

STATE OF NEW YORK; COUNTY OF NEW YORK   :ss:

On the __ day of August in the year 2000, before me, the undersigned, a Notary
Public in and for said state, personally appeared _______________, personally
known to me or proved to me on the basis or satisfactory evidence to be the
person whose name is subscribed to the within instrument and acknowledged to me
that he executed same in his capacity, and that by his signature on the
instrument, the person or the entity upon behalf of which the person acted,
executed the instrument.

                              /s/ Joel R. Schweidel
                              ---------------------
                              JOEL R. SCHWEIDEL
                              Notary Public, State of New York
                              No. 31-8881180
                              Qualified in New York County
                              Certificate filed in New York County
                              Commission Expires Jan 31, 2001

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