Document:

f1012g0508ex10i_dkinvestors.htm

     

    
       

      EXCLUSIVE
LICENSE AGREEMENT

       

      THIS
AGREEMENT made and entered into as of Dec 15,  2004 ("Effective
Date"), by and between NANODYNAMICS, INC., a Delaware corporation, with offices
at 901 Fuhrmann Boulevard, Buffalo, NY 14203 ("NANO"), SGK. NANOSTRUCTURES
INCORPORATED, a New York corporation with offices located at 5 Flagpole Lane,
East Setauket, NY 11733 ("SGK").

       

      WHEREAS,
SGK is the sole owner of all right, title, and interest in and to certain
inventions and intellectual property associated therewith pertaining to carbon
nanotubes as more particularly disclosed on Fxhibit A to this Agreement
("Intellectual Property");

       

      WHEREAS,
LICENSEE desires to obtain a license of the Intellectual Property upon
the terms and conditions hereinafter set forth.

       

      NOW,
THEREFORE, in consideration of the undertakings herein contained and
other goods and valuable consideration, the receipt of which is hereby
acknowledged by all parties hereto, NANO and the SGK agree as
follows:

       

      1.           DEFINITIONS

       

      1.1           Affected
Products - shall mean any device or component incorporating the

      Intellectual
Property.

       

      1.2           Licensed
Patents – shall mean all of the following:

       

      (a)           any
U.S. patent applications and patents incorporating the Intellectual Property,
and any divisional, continuation, continuation-in-part applications related
thereto and the resulting patents therefrom;

       

      (b)           any
patents resulting from reissues or reexaminations of the United States patents
described in (a) above;

       

      (c)           any
PCT patent application, foreign patent applications, and patents incorporating
the Intellectual Property, and any divisional, continuation,
continuation-in-part applications related thereto and the resulting patents
therefrom; and

       

      (d)           any
foreign. patents resulting from foreign procedures equivalent to U.S. reissues
and reexaminations of the foreign patents described in (c) above,

       

      1.3           Improvements
– shall mean any and all new and useful processes, manufactures, devices, or
methods of use first conceived, reduced to practice or developed after the
Effective Date and during the term of this Agreement by SOK that:

       

      (i)  increase
the performance, operation, efficacy or safety of the Affected Products,

       

       

       

      
        
           

        

        
          1

          
            
 

        

        
           

        

      

       

       

      (ii)  reduce
the cost of manufacture of the Affected Products, or

       

       

      (iii)
otherwise relate to the manufacture or use of the Affected Products or the
practice of any method claimed in any of the patents and/or patent applications
within the Licensed Patents.•

       

      1.4           Net
Sales — shall mean the invoice price to customers of NANO for sales of
the Affected Products in the ordinary course of business, as recorded as "net
sales" for purposes of NANO's audited financial statements prepared in
accordance with GAAP, less deductions from such invoice price for:

       

      
        	
                (i)  

              	
                refunds
      actually allowed or taken for rejected or returned Affected
      Products,

              

      

       

      
        	
                (ii)  

              	
                excise,
      use, value added and sales taxes to the extent included in the amounts
      invoiced,

              

      

       

      
        	
                (iii)  

              	
                customs,
      duties and other imposts, to the extent included in the amounts
      invoiced,

              

      

       

      
        	
                (iv)  

              	
                quantity
      discounts, actually allowed or
taken,

              

      

       

      
        	
                (v)  

              	
                credits
      on account of retroactive price reductions, actually allowed or
      taken,

              

      

       

      
        	
                (vi)  

              	
                promotional
      dollars and sales commissions that effectively reduce the price paid by
      NANO's customers for the Affected
Products,

              

      

       

      
        	
                (vii)  

              	
                cost
      of insurance, billed to and paid by the
  customer,

              

      

       

      
        	
                (viii)  

              	
                cost
      of shipping and transportation, billed to and paid by the customer,
      and

              

      

       

      
        
          	
                  (ix)  

                	
                  rebates
      required by government rule, regulation, program or fiat, to the extent
      that any such rebates may be paid or allowed by
  NANO.

                

        

        

 

      

      1.7           Quarterly
Period — shall mean a three (3) month period, the first of which starts
on the
Effective Date,

       

      1.8           Third
Party — means any person or entity other than a party to this
Agreement.

       

      2.           GRANT

       

      2.1           Subject
to the terms and conditions of this Agreement, SGK hereby grants to NANO for the
Term of this Agreement, the right and worldwide exclusive license to use the
Intellectual Property, and to make, have made, use and sell the Affected
Products and to practice under the Licensed Patents.

       

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      2.2           SGK
shall from time to time promptly provide NANO with detailed information relative
to Improvements. Any and all Improvements shall be automatically included in the
definition of Intellectual Property and included in the license granted under
this Agreement.

       

      3.           PAYMENTS
AND ROYALTIES

       

      3.1           In
exchange for the rights conveyed by SGK, to NANO under this Agreement,
and

      except as
provided in Section 3.2 herein, NANO shall pay to SGK:

       

      (i)           a
royalty of twenty percent (20%) of all sublicensing fees, payments and royalties
received by NANO with respect to any sublicense of any substantial rights under
the Intellectual Property to independent third parties; and

       

      (ii)           a
royalty equal to the following percentage of Net Sales for the Affected Products
that
incorporate the Intellectual Property to a substantial
degree:

      5% of Net
Sales up to $500,000

      4% of Net
Sales from $500,001 to $1,000,000

      3% of Net
Sales from $1,000,001 to $2,000,000

      2% of Net
Sales over $2,000,000

       

      3.2           NANO'
s obligation to pay under Section 3.1 shall commence on the date hereof
and
ending on the date of expiration of the Licensed Patents in the United States;
provided, however, that this Agreement shall continue thereafter on a country by
country basis until expiration of the Licensed Patent in any country in which
any Affected Product is made used or sold (unless this Agreement is terminated
sooner as provided herein),

       

      3.3           The
Affected Products shall be considered sold when NANO receives payment from its
customer or sublicensee. Suitable adjustments may be made to sales records when
the Affected Products are returned and credit is given to the
customer,

       

      3.4           NANO
shall produce a report ("Royalty Report") setting forth in reasonable
detail

      the
calculation of the royalties payable to SGK for each Quarterly
Period.

       

      3.5           NANO
shall deliver to SGK, on or before the last day of each month following the end
of each Quarterly Period in which the Affected Products are sold, a Royalty
Report for such Quarterly Period. Such Royalty Report shall be treated as
confidential information of NANO subject to Section 9 of this
Agreement.

       

      3.6           Royalty
payments due hereunder shall be paid and delivered to SOK on or before the last
day of each month following the end of each Quarterly Period.

       

      3.7           Royalty
payments shall be made in United States dollars, If any currency conversion
shall be required in connection with the payment of royalties hereunder, such
conversion shall be made by using the exchange rate prevailing at the Citibank,
New York, New York on the date of payment by the customer or sublicensee to
NANO.

       

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

       

      3.8           No
royalty is due if the Affected Products are given away as samples to promote
sales of the Affected Products.

       

      4.           RECORDS
AND INSPECTION

       

                   
4.1           NANO
shall maintain accurate books and records that enable the calculation of
royalties payable hereunder to be verified. NANO shall retain the books and
records for each Quarterly Period for two (2) years after the submission of the
corresponding Royalty Report.

       

      4.2           SGK
or its agents, such as an independent royalty investigator or accountant, shall
have the right once per calendar year, upon reasonable notice, to inspect NANO's
books and records during NANO's normal business hours at mutually agreed times
for the sole purpose of verifying the accuracy of NANO's royalty payments and
compliance with Section 3.1 of this Agreement. Any such inspection shall be at
SGK's expense. In no event shall SGK have the right to inspect information with
respect to NANO's products other than the Affected Products, cost for materials,
pricing formulae, or percentages of mark-up.

       

      4.3           In
the event that such inspection demonstrates an underpayment by NANO to SGK, NANO
shall promptly pay to SGK the underpayment plus interest from the date such
amount was due at the prime rate reported by the Citibank, New York, New
York.

       

      5.           REPRESENTATIONS
AND  WARRANTIES

       

      SGK
represent and warrant that:

       

      (i)      
SGK
is the sole owner of the entire right, title and interest in and to the
Intellectual Property;

       

      (ii)           there
are no outstanding liens, encumbrances, Third Party rights, agreements,
understandings, or claims of any kind whatsoever, either written, oral or
implied, regarding the Intellectual Property that are inconsistent or in
conflict with any provision of this Agreement;

       

      (iii)           SGK
has the right and power to enter into this Agreement and the authorization,
execution or delivery of this Agreement does not require any Third Party consent
or approval;

       

      (iv)           SGK
is able, and has not admitted in writing its inability, to pay its debts
generally as they become due, filed or consented to the filing against it of a
petition in bankruptcy or a petition to take advantage of any insolvency act,
made an assignment for the benefit of creditors, consented to the appointment of
a receiver for itself or for the whole or any substantial part of its property,
or had a petition in bankruptcy filed against it, been adjudicated a bankrupt,
or filed a petition or answer seeking reorganization or arrangement under the
federal bankruptcy laws or any other laws of the United States or any other
jurisdiction; and

       

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

       

      (v)           there
is no threatened or pending legal action against SGK with respect to
the
Intellectual Property.

       

      6.           PATENT
PROSECUTION

       

      6.1           SGK
shall apply for and shall diligently seek prompt issuance of and
maintain

      during
the term of this Agreement Licensed Patents in the United States and in such
foreign countries as may be designated by NANO in a written notice to SGK within
a reasonable time in advance of the required foreign filing dates. SGIC, shall
provide NANO with copies of patent applications and substantive responses to
office actions prior to filing of the same in relevant patent offices and shall
advise NANO regarding national and regional patent filings and maintenance of
the same. NANO shall have the opportunity to advise and cooperate with SGK in
the prosecution, filing and maintenance of such patents. If SGK elects not to
pursue such patent prosecution filing and maintenance as NANO deems appropriate,
then NANO may elect to do so at its own expense, notwithstanding Section 6.2
hereof, and SGK agrees to cooperate with NANO in such undertakings.

       

      6.2           All
fees and costs, including attorneys' fees, relating to the filing, prosecution
and maintenance
of the Licensed Patents incurred after the date of this Agreement shall be the
responsibility of SGK.

       

      6.3           If
NANO elects to pursue a patent prosecution filing and maintenance under
Section
6.1, SGK, agrees to cooperate fully in the preparation, filing, prosecution,
defense, and maintenance of such patent, including but not limited to executing
all papers and instruments so as to enable NANO to apply for, to prosecute, to
defend, and to maintain such patent and the applicable patent
application.

       

      7           INFRINGEMENT

       

       7.1           If
either party shall determine that there is a probable infringement of any of the
Intellectual Property by a Third Party, that party shall promptly notify the
other party in writing of the infringement,

       

      7.2           SGK,
on discovery or notification of such infringement, shall, with reasonable
promptness, refer the matter to its intellectual property counsel to perform an
infringement evaluation and determine the likelihood of success on the merits of
an infringement claim. At its option and its expense, NANO may retain its own
intellectual property counsel to conduct an independent evaluation or to consult
with SGK's intellectual property counsel regarding the evaluation under a
suitable joint privilege agreement.

       

      7.3           If
SGK determines that the facts pertaining to infringement and the likelihood of
success of any action warrants taking legal action against an infringer, SGK
shall advise NANO in writing of such determination prior to taking any legal
action. If SGK determines that the facts pertaining to infringement and the
likelihood of success of any action do not warrant taking legal action, it shall
so advise NANO.  If SGK decides not to pursue legal action, NANO shall have
the option to elect to bring an infringement action at its own cost and expense.

       

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

         

         

        If NANO
decides
not to bring litigation for patent infringement, SGK shall not hold NANO liable
for lack of infringement litigation.

      

       

      7.4           The
parties agree to fully cooperate with and assist each other in any infringement
action under the Intellectual Property. If one party brings an infringement
action against a Third Party ("litigating party"), the other party, in order to
assist in bringing and maintaining the suit, shall: (1) join as a party, if
necessary to the maintenance of the infringement action; (ii) grant all lawful
permissions and sign all lawful documents necessary in the litigating party's
judgment to prosecute the action; and (iii) give all truthful testimony
requested by the litigating party.

       

      7.5           If
any infringement action taken shall prove successful and the litigating party
shall collect monies by judgment or settlement, and provided the other party
complies with Section 7.4, the litigating shall: (1) deduct its intellectual
property counsel fees and other reasonable expenses attendant to such action,
including without limitation expert fees; and (ii) then shall pay to the other
party twenty-five (25%) percent of the balance of monies collected by judgment
or settlement.

       

      7.6           Neither
party may settle an infringement claim without the prior approval of the
other
party if such settlement would affect the rights of the other party in the
Licensed Patents.

       

      8.           TERM,
BREACH, AND TERMINATION

       

      8.1           Except
as herein provided, this Agreement shall remain in full force and effect
until the
last claim of any patent included in the Licensed Patents
expires.

       

       8.2     If
NANO fails to perform any one or more of its material obligations required by
this Agreement and shall not remedy the same within ninety (90) days after
receipt of written notice by SGK specifying the details of the alleged breach,
or if NANO shall discontinue business, become insolvent, have a receiver
appointed, go into liquidation, or be the subject of any bankruptcy proceeding
that is instituted and not dismissed within thirty (30) days, then SGK shall
have the option to terminate this Agreement.

       

      8.3           NANO
may terminate this Agreement at any time upon sixty (60) days prior written
notice.

       

                   
8.4     No
termination under Sections 8.2 or 8.3 shall relieve any party from any existing
obligation under this Agreement prior to termination, including without
limitation the obligation to pay royalties.

       

      9.           CONFIDENTIAL
INFORMATION

       

      9.1           Unless
agreed to in advance and in writing, SGK agrees not to disclose any confidential
or proprietary information from NANO relating to the Intellectual Property or
business information relating to the Affected Products, including without
limitation information regarding the quantity of the Affected Products sold, the
Net Sales thereof, pricing or customer information ("the Confidential and
Proprietary Information"). 

       

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

         

         

        SGK
hereby agrees to exert its best
efforts, equivalent to the protection given to its own confidential information,
to prevent delivery or disclosure of the Confidential and Proprietary
Information to any Third Party without first obtaining the originating party's
written consent to the delivery or disclosure.

      

       

      9.2           The
obligations of nondisclosure as set forth in Section 9.1 of this Agreement will
not apply
to any portion of the information that: becomes
public or is received by the recipient from a Third Party not bound by a similar
obligation of secrecy; or is
required to be disclosed by law or applicable government
regulations.

       

      9.3           In
the event a court of competent jurisdiction orders SGK to disclose all or part
of the
Confidential and Proprietary Information, SGK shall promptly notify NANO of
same, and the parties shall cooperate in seeking a protective order or other
reasonable assurances that the confidentiality of such information will be
maintained, If NANO is unable to obtain a protective order or other appropriate
remedy, SGK will disclose only that portion of the Confidential and Proprietary
Information as is necessary to be in compliance with the court's
order.

       

      10.           MISCELLANEOUS

       

      10.1           Captions
and section headings are used for convenience of reference only and are
not part
of this Agreement and may not be used in construing it.

       

      10.2           The
WHEREAS clauses as set forth above are incorporated herein by reference
into and
are part of this Agreement.

       

      10.3           This
Agreement may be executed in several counterparts, each of which will be deemed
an original and such counterparts will together constitute and be one and the
same instrument.

       

      10.4           This
Agreement shall be subject to and construed according to the laws of the State
of New York without regard to conflicts of laws with any other jurisdiction. Any
litigation arising out of or relating to this Agreement shall be brought in the
state or federal courts located in Buffalo, New York, as appropriate, and the
parties expressly consent and agree to personal jurisdiction and venue in these
courts.

       

      10.5           This
Agreement shall be binding upon and inure to the benefit of the successors and
assigns of the parties. This Agreement may not be assigned by SGK without the
prior written consent of NANO.

       

      10.6           If
any provision of this Agreement is or becomes or is deemed invalid, illegal or
unenforceable under the applicable laws or regulations of any jurisdiction, such
provision will be deemed amended to conform to such laws or regulations without
materially altering the intention of the parties or it will be stricken and the
remainder of this Agreement will remain in full force and effect. In the event
that any provision of this Agreement is declared by a court of competent
jurisdiction
to be invalid, illegal, or otherwise unenforceable, the validity, legality, and
enforceability of the remaining provisions will not in any way be affected or
impaired thereby.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

       

      10.7           Each
party further agrees that no failure or delay by the non-breaching party, its
agents or representatives, in exercising any right, power or privilege under
this Agreement shall operate as a waiver thereof unless expressed in writing,
nor shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any right, power or privilege under this
Agreement.

       

      10.8           This
document constitutes the full understanding of the parties and a complete and
exclusive statement of the tams of their agreement, and no terms, conditions,
usage of trade, course of dealing, understanding or agreement purporting to
modify or vary the terms of this Agreement shall be binding unless hereafter
made in writing and signed by the party to be bound. This Agreement supersedes
all previous or contemporaneous dealings or agreements with respect to the
subject matters of this Agreement.

       

      10.9           No
amendment, change or modification of any of the terms, provisions or conditions
of this Agreement shall be effective unless made in writing and signed on behalf
of the parties hereto by their duly authorized representatives.

       

      10.10                      All
notices provided for in this Agreement shall be deemed sufficiently given when
sent by telefacsimile and confirmed by U.S. mail or overnight courier addressed
to the party for whom intended at the following address:

       

       

      
        	
                If
      to NANO, to:

              	
                NanoDynamics,
      Inc.

                901
      Fuhrmann Boulevard

                Buffalo,
      NY 14203

                Fax:
      716-853-8996

                 

              
	
                If
      to SGK, to:

              	
                SGK
      Nanostructures Incorporated

                5
      Flagpole Lane

                Setauket,
      NY

                Fax:

              

      

       

      10.11                      
The parties mutually agree to execute, acknowledge, and deliver any and all such
other agreements, documents, instruments, and to perform any and all such acts
and things as may be reasonably necessary and proper to consummate the
transactions contemplated by this Agreement.

       

      10.12                      Each
party understands the contents of this Agreement and has had an opportunity to
thoroughly review its terms with their own attorney. In addition, the parties
acknowledge that this Agreement has been executed freely and voluntarily upon
the best judgments of the parties. The parties further acknowledge and agree
that this Agreement shall not be construed in favor of, or against, either party
by reason of the extent to which either party or their counsel participated
in the
drafting of this Agreement.

       

       

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

       

      10.13                      Each
party represents and warrants that as of the date of the execution of this
Agreement, they have the exclusive right and authority to execute this
Agreement, and that they have not sold, assigned, transferred, conveyed or
otherwise disposed of any right referred to in this Agreement.

       

       

      IN
WITNESS WHEREOF, the parties hereto have executed this Agreement
effective on the Effective Date.

       

       

      
        	
                NANODYNAMICS,
      INC.

              	
                SGK
      NANOSTRUCTURES

                INCORPORATED

              
	 
      	 
      
	
                By:  /s/  Keith A.
      Blakely

              	
                By:  /s/  Norman
      Fuchs

              
	 
      	 
      
	
                Name:  Keith A. Blakely

              	
                Name:  Norman Fuchs

              
	 
      	 
      
	
                Title:  CEO

              	
                Title:  President

              
	 
      	 
      
	
                Date

              	
                Date:  Dec 15,
  2004

              

      

      
 

       

       

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

       

      EXHIBIT A

       

      INTELLECTUAL PROPERTY

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
        
           

        

        
          10f8k031008ex10i_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                                $
100,000

    Issuance
Date                      03/10/08

    

    MEGA
MEDIA GROUP, INC., a Nevada corporation (the "Company") for value received,
hereby promises to pay to FD Import Export Corp 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 September 28, 2008
(the "Maturity Date") at the principal offices of the Company, the
principal sum of $100,000 (One Hundred Thousand Dollars) 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).

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    
      	
              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.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
 

    
      	
              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)

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
 

    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:   /s/  Aleksandr
      Shvarts

            
	
              Name:
      Aleksandr Shvarts

            
	
              Title:
      CEO

            

    

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    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)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]