Document:

f8k020708ex10a_megamedia.htm

    

     

    LOAN
AGREEMENT

     

    THIS
LOAN AGREEMENT (this "Agreement") dated this 7th
day
of February, 2008

     

    BETWEEN:

     

    Lawrence
Kopylov

     

    (the
"Lender")

     

    OF
THE FIRST PART

     

    AND

     

    Mega
Media Group, Inc. of 1122 Coney Island Avenue. Brooklyn. NY 11230

     

    (the
"Borrower")

     

    OF
THE SECOND PART

     

    IN CONSIDERATION OF the Lender
loaning certain monies (the "Loan") to the Borrower, and the Borrower repaying
the Loan to the Lender, both parties agree to keep, perform and fulfill the
promises and conditions set out in this Agreement:

     

    Loan
Amount & Interest

    1. The
Lender promises to loan One Hundred Thousand, ($100,000.00 ) USD. to the
Borrower and the Borrower promises to repay this principal amount to the Lender,
at such address as may be provided in writing, with interest payable on the
unpaid principal at the rate  of 9.00 percent per annum. calculated yearly
not in advance.

     

    Payment

    2. This
Loan will he repaid in full 30 Days from the execution of this
Agreement.

     

    Default

    3.
Notwithstanding anything to the contrary in this Agreement, if the Borrower
defaults in the performance of any obligation under this Agreement, then
the Lender may declare the principal amount owing and interest due under
this Agreement at that time to be immediately due and payable.

     

    Governing
Law

    
      
        4. This
Agreement will be construed in accordance with and governed by the laws of the
State of New York.

      

    

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     

     

    Costs

    
      	
              5.  

            	
              All
      costs, expenses and expenditures including, without limitation. the
      complete legal costs incurred by enforcing this Agreement as a result of
      any default by the Borrower  will be added to the principal then
      outstanding and immediately be paid by the
  Borrower

            

    

     

     

    Assignment

    
      	
              6.  

            	
              This
      Agreement will pass to the benefit of and be binding upon the respective
      heirs, executors, administrators, successors and assigns of the Borrower.
      The Borrower waives presentment for payment, notice of non-payment,
      protest, and noticeof protest.

            

    

     

    Amendments

    7. This
Agreernent may only be amended or modified by a written instrument executed by
both the Borrower and the Lender.

     

    Severability

    
      	
              8.  

            	
              The
      clauses and paragrphs contained in this Agreement are intended to be read
      and construed independently of each other. If any part of this Agreement
      is held to be invalid, this invalidity will not affect the operation of
      any other part of this Agreement.

            

    

     

    Central Provisions

    
      	
              9.  

            	
              Headings
      are inserted for the convenience of the parties only and are not to be
      considered when interpreting this Agreement. Words in the singular mean
      and include the plural and vice versa. Words in the masculine mean and
      include the
ieminineandvice versa.

            

    

     

    Entire
Agreement

    
      10. 
This Agreement constitutes the entire agreement between the parties
and there are no further items or provisions, either oral or
otherwise.

    

     

     

     

    IN WITNESS
WHEREOF. 
the parties have duly affixed their signatures under hand and seal on
this 7th day of February,
2008.

    

     

    /s/
Lawrence Kopylov

    Lawrence
Kopylov

     

    Mega
Media Group, Inc.

    Per:
/s/ Alex
Shvarts 

    (Seal)

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

     

    Citibank
NA

    162
Amsterdam Avenue 

    New York,
NY 10023 

    Branch no
096

    Tel
1-718-492-2121

    ABA
0210000889

    Swift
Code CititiS133

     

    Mega
Media Group, Inc. 

    1122
Coney Island Avenue 

    Brooklyn,
NY 11235

     

    Tel
1-718-947-1100

    Fax
1-646-417-5109

     

    Account
Number 9932267558

     

    3f8k020708ex10b_megamedia.htm

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

       

       

      MEGA
MEDIA GROUP, INC.

       

      9%
CONVERTIBLE PROMISSORY NOTE

       

      Amount                                
$__________________

      Issuance
Date                       
___________________

      

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

      

      
        	
                1)  

              	
                Interest

              

      

      

      
        	
                i)  

              	
                Interest
      accrued during the term of this Note in its entirety on or within five (5)
      calendar days of the Maturity Date. The Note will bear interest at the
      rate of nine percent (9%) per annum on the principal balance until
      this Note shall be paid in full.

              

      

      

      
        	
                2)  

              	
                Conversion

              

      

      

      
        	
                a)  

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

              

      

      

      
        	
                b)  

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

              

      

      

      
        	
                c)  

              	
                Method of
  Conversion.

              

      

       

      
        	
                i)  

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

              

      

       

      
        	
                ii)  

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

              

      

       

       

      1

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        	
                3)  

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

              

      

       

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

       

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

       

      
        	
                4)  

              	
                Transfers of Note to Comply with the Securities
      Act of 1933. As Amended. The Holder agrees that the Note may not be
      sold, transferred, pledged, hypothecated or otherwise disposed of except
      as follows: (1) to a person who, in the opinion of counsel to the Company,
      is a person to whom the Note may legally be transferred without
      registration and without the delivery of a current prospectus under the
      Securities Act of 1933, as amended, and then only against receipt of any
      agreement of such person to comply with the provisions of this Section 3
      with respect to any resale or other disposition of the Note; or (ii) to
      any person upon delivery of a prospectus then meeting the requirements of
      the Securities Act of 1933, as amended, relating to such Note and the
      offering thereof for such sale or disposition, and thereafter to all
      successive assignees.

              

      

      

      
        	
                5)  

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

              

      

      

      
        	
                6)  

              	
                Events of
  Default.

              

      

      

      
        	
                a)  

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

              

      

      

      
        	
                b)  

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

              

      

      

      
        	
                c)  

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

              

      

      

      
        	
                d)  

              	
                General
      assignment by the Company for the benefit of
  creditors;

              

      

      

      
        	
                e)  

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

              

      

      

      
        	
                f)  

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

              

      

       

       

      2

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

       

      
        	
                g)  

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

              

      

      

      
        	
                h)  

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

              

      

      

      
        	
                i)  

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

              

      

      

      
        	
                7)  

              	
                Miscellaneous

              

      

      

      
        	
                a)  

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

              

      

      

      
        	
                b)  

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

              

      

      

      
        	
                c)  

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

              

      

      

      

      (Signature
Page Follows)

       

       

      3

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

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

       

      

      
        	
                MEGA
      MEDIA GROUP, INC.

              
	 
      
	 
      
	
                By:                                    
      

              
	
                Name:

              
	
                Title:

              

      

       

       

       

      4

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      EXHIBIT
A

       

      

       

      MEGA
MEDIA GROUP, INC.

       

      CONVERSION
NOTICE

       

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

       

       

      
        Date of
Conversion:                                                                                                                                                                     

      

       

      
        Aggregate
Conversion Amount to be converted:                                                                                                                                                                                                                                                                                      

         

        
          Please
confirm the following information:                                                                                                                              

           

          
            Conversion
Price:                                                                                                                                                                     
  

             

            
              Number of
shares of Common Stock to be issued:                                                                                                              
  

               

              
                Please
issue the Common Stock into which the Note is being converted in the following
name and to the following address: 

                 

                
                  Issue
to:                                                                                                                                                                                      

                

                                                                                                                                                                                                                 

                                                                                                                                                                                                                

                 

                
                  Facsimile
Number:                                                                                                                                                                  

                   

                  
                    Authorization:               
                                                                                                                                                           

                     

                    
                      By:                                                                                                                                                                                            

                       

                      
                        Title:                                                                                                                                                                                         

                         

                        
                          Dated:                                                                                                                                               
                                      

                           

                          
                            Account
Number:

                            (if
electronic book entry transfer)                                                                                                                                      

                             

                             

                            Transaction
Code Number:

                            (if
electronic book entry transfer)                                                                                                                                           

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

       

       

      5

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