Document:

EXHIBIT 10.18

                               SECURITY AGREEMENT

                (EQUIPMENT, CONSUMER GOODS, FIXTURES, INVENTORY)

                                                              Date: July 6, 2000

MEGAMEDIA NETWORKS, INC., A DELAWARE CORPORATION (the "Debtor") whose address is
57 West Pine Street, Orlando, Florida 32801,and THE ORLANDO GROUP DOWNTOWN LLC,
A FLORIDA LIMITED LIABILITY COMPANY (the "Secured Party") whose address is 100
S. Orange Avenue, Suite 1000, Orlando, Florida 32801, agree as follows:

         1. SECURITY INTEREST. The Debtor gives the Secured Party security title
to and a continuing and unconditional security interest ("Security Interest") in
the goods described below and in all parts, accessories, attachments, additions,
replacements, accessions, substitutions and in all proceeds thereof in any form
together with all records relating thereto (the "Collateral"):

         All of Debtor's accounts, inventory, equipment, and furniture, wherever
         held or located, whether now owned or hereafter owned or acquired by
         Debtor, together with all proceeds and products thereof, and all books
         and records and insurance proceeds relating thereto. The terms
         "accounts", "inventory," and "equipment" shall have the same respective
         meanings as are given to those terms in Chapter 679 of Florida
         Statutes, as amended.

         2. INDEBTEDNESS SECURED. This Agreement and the Security Interest
created by it secures that certain obligation of the Debtor to the Secured Party
represented by that certain Agreement and Promissory Note in the original
principal amount of $350,000.00 dated of even date hereof (the "Indebtedness").

         3. WARRANTIES OF DEBTOR. The Debtor warrants and so long as this
Agreement continues in force shall be deemed continuously to warrant that:

         (a) the Debtor is the owner of the Collateral free of all security
interests or other encumbrances, except the Security Interest;

         (b) the Debtor is authorized to enter into the Security Agreement;

         (c) the Collateral is used or bought for use primarily in business or
professional operations.

         (d) The Collateral will not become affixed to any real property.

         (e) The Debtor's principal place of business and chief executive office
in the State of Florida is located at the address

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specified above.

         4. COVENANTS OF DEBTOR. So long as this Agreement has not been
terminated as provided in paragraph 6, the Debtor: (a) will defend the
Collateral against the claims of all other persons; will keep the Collateral
free from all security interests or other encumbrances, except the Security
Interest; and will not sell, transfer, lease, or otherwise dispose of any of the
Collateral or any interests therein without the prior written consent of the
Secured Party; (b) will not remove the Collateral from the State nor change the
location of Debtor's chief executive office without the written consent of the
Secured Party, will notify the Secured Party promptly in writing of any change
in the Debtor's address, name or identity from that specified above; and will
permit the Secured Party or its agents to inspect the Collateral; (c) will keep
the Collateral in good condition and repair and will not use the Collateral in
violation of any provisions of this Security Agreement, of any applicable
statute, regulation or ordinance or of any policy of insurance insuring the
Collateral; (d) will execute and deliver to the Secured Party such financing
statements and other documents, pay all costs including costs of title searches
and filing financing statements and other documents in any public offices
requested by the Secured Party, and take such other action as the Secured Party
may deem advisable to perfect the Security Interest created by this Agreement;
(e) will pay all taxes, assessments and other charges of every nature which may
be levied or assessed against the Collateral; (f) will insure the Collateral
against risks by obtaining policies (none of which shall be cancellable without
the prior written consent of the Secured Party) in coverage, form, and amount
and with companies satisfactory to the Secured Party, such policies to contain a
loss payee provision executed in favor of the Secured Party and at Secured
Party's request will deliver each policy or certificate of insurance therefor to
the Secured Party; (g) will prevent the Collateral or any part thereof from
being or becoming an accession to other goods not covered by the Security
Agreement; (h) unless the Collateral is specified in paragraph 3(d) as a
fixture, will prevent the Collateral or any part of the Collateral from becoming
a fixture; and (i) if any certificate of title may be issued with respect to any
of the Collateral, the Debtor will cause the Secured Party's interest under this
Agreement to be noted on the certificate and will deliver the original
certificate to the Secured Party.

         5. COLLECTION AND SEGREGATION OF ACCOUNTS AND RIGHT TO NOTIFY. Secured
Party hereby authorizes Debtor to collect the Collateral, subject to the
direction and control of Secured Party but Secured Party may, without cause or
notice, curtail or terminate said authority at any time. Upon notice by Secured
Party, whether oral or in writing, to Debtor, Debtor shall forthwith upon
receipt of all checks, drafts, cash, and other remittances in payment of or on
account of the Collateral, deposit the same in one or more special accounts
maintained with Secured Party over which Secured Party alone shall have the
power of withdrawal. The remittance of the proceeds of such Collateral shall
not, however, constitute payment or liquidation of such Collateral until Secured
Party shall receive good funds for such proceeds. Funds placed in such special
accounts shall be held by

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Secured Party as security for all Indebtedness secured hereunder. These proceeds
shall be deposited in precisely the form received, except for the indorsement of
Debtor where necessary to permit collection of items, which indorsement Debtor
agrees to make, and which indorsement Secured Party is also hereby authorized,
as attorney-in-fact, to make on behalf of Debtor. In the event Secured Party has
notified Debtor to make deposits to a special account, pending such deposit,
Debtor agrees that it will not commingle any such checks, drafts, cash or other
remittances with any funds or other property of Debtor, but will hold them
separate and apart therefrom, and upon an express trust for Secured Party until
deposit thereof is made in the special account. Secured Party will, from time to
time, apply the whole or any part of the Collateral funds on deposit in this
special account against such Indebtedness as are secured hereby as Secured Party
may in its sole discretion elect. At the sole election of Secured Party, any
portion of said funds on deposit in the special account which Secured Party
shall elect not to apply to the Indebtedness, may be paid over by Secured Party
to Debtor. At any time, whether Debtor is or is not in default hereunder,
Secured Party may notify persons obligated on any Collateral to make payments
directly to Secured Party and Secured Party may take control of all proceeds of
any Collateral. Until Secured Party elects to exercise such rights, Debtor, as
agent of Secured Party, shall collect and enforce all payments owed on the
Collateral.

         6. DEFAULT. (a) Any of the following shall constitute an event of
default ("Event of Default"): (i) non-payment when due whether by acceleration
or otherwise of the principal of or interest on any Indebtedness, time being of
the essence, or failure by the Debtor to perform any obligations under this
Agreement or under any other agreement between the Debtor and Secured Party;
(ii) death or incompetency of the Debtor; (iii) filing by or against the Debtor
of a petition in bankruptcy or for reorganization under any bankruptcy,
reorganization, compromise, arrangement, insolvency, readjustment of debt,
dissolution, liquidation or similar law of any jurisdiction; (iv) making a
general assignment by the Debtor for the benefit of creditors; the appointment
of or taking possession by a receiver, trustee, custodian or similar official
for the Debtor or for any of the Debtor's assets; or the institution by or
against the Debtor of any kind of insolvency proceedings or any proceeding for
the dissolution or liquidation of the Debtor; (v) the occurrence of any event
described in paragraph 4(a)(ii), (iii) or (iv) hereof with respect to any
indorser or guarantor or any party liable for payment of any Indebtedness; or
(vi) material falsity in any certificate, statement, representation, warranty or
audit at any time furnished to the Secured Party by or on behalf of the Debtor
or any indorser or guarantor or any other party liable for payment of any
Indebtedness, pursuant to or in connection with the Security Agreement or
otherwise (including warranties in this Agreement) and including any omission to
disclose any substantial contingent or liquidated liabilities or any material
adverse change in facts disclosed by any certificate, statement, representation,
warranty or audit furnished to the Secured Party; or (vii) any attachment or
levy against the Collateral or any other occurrence which inhibits the Secured
Party's

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free access to the Collateral.

         (b) The Secured Party may declare all or part of the Indebtedness to be
immediately due without notice upon the happening of any Event of Default or if
the Secured Party in good faith believes that the prospect of payment of all or
any part of the Indebtedness or the performance of the Debtor's obligations
under this Agreement or any other agreement now or hereafter in effect between
the Debtor and the Secured Party is impaired. This paragraph is not intended to
affect any rights of the Secured Party with respect to any Indebtedness which
may now or hereafter be payable on demand.

         (c) Upon the happening of any Event of Default the Secured Party's
rights with respect to the Collateral shall be those of a secured party under
the Uniform Commercial Code and any other applicable law from time to time in
effect. The Secured Party shall also have any additional rights granted herein
and in any other agreement now or hereafter in effect between the Debtor and the
Secured Party. If requested by the Secured Party, the Debtor will assemble the
Collateral and make it available to the Secured Party at a place to be
designated by the Secured Party.

         (d) The Debtor agrees that any notice by the Secured Party of the sale
or disposition of the Collateral or any other intended action hereunder, whether
required by the Uniform Commercial Code or otherwise, shall constitute
reasonable notice to the Debtor if the notice is mailed by regular or certified
mail, postage prepaid, at least five days before the action to the Debtor's
address as specified in this Agreement or to any other address which the Debtor
has specified in writing to the Secured Party as the address to which notices
shall be given to the Debtor.

         (e) The Debtor shall pay all costs and expenses incurred by the Secured
Party in enforcing this Security Agreement, realizing upon any Collateral and
collecting any Indebtedness (including reasonable attorney's fees) whether suit
is brought or not and whether incurred in connection with collection, trial,
appeal or otherwise, and shall be liable for any deficiencies in the event the
proceeds of disposition of the Collateral does not satisfy the Indebtedness in
full.

         7. MISCELLANEOUS. (a) The Debtor authorizes the Secured Party at the
Debtor's expense to file any financing statement or statements relating to the
Collateral (without the Debtor's signature thereon) which the Secured Party
deems appropriate, and the Debtor appoints the Secured Party as the Debtor's
attorney-in-fact to execute any such financing statement or statements in the
Debtor's name and to perform all other acts which the Secured Party

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deems appropriate to perfect and to continue perfection of the Security
Interest.

         (b) The Debtor hereby irrevocably consents to any act by the Secured
Party or its agents in entering upon any premises for the purpose of either (i)
inspecting the Collateral or (ii) taking possession of the Collateral after any
Event of Default; and the Debtor hereby waives Debtor's right to assert against
the Secured Party or its agents any claim based upon trespass or any similar
cause of action for entering upon any premises where the Collateral may be
located.

         (c) The Debtor authorizes the Secured Party to collect and apply
against the Indebtedness any refund of insurance premiums or any insurance
proceeds payable on account of the loss of or damage to any of the Collateral
and appoints the Secured Party as the Debtor's attorney-in-fact to indorse any
check or draft representing such proceeds or refund.

         (d) (i) As further security the Debtor grants to the Secured Party a
security interest in all property of the Debtor which is or may hereafter be in
the Secured Party's possession in any capacity including all monies owed or to
be owed by the Secured Party to the Debtor; and with respect to all of such
property, the Secured Party shall have the same rights as it has with respect to
the Collateral. (ii) Without limiting any other right of the Secured Party
whenever the Secured Party has the right to declare any Indebtedness to be
immediately due and payable (whether or not it has so declared), the Secured
Party may set off against the Indebtedness all monies then owed to the Debtor by
the Secured Party in any capacity whether due or not and the Secured Party shall
be deemed to have exercised its rights of set off immediately at the time its
right to such election accrues.

         (e) Upon the Debtor's failure to perform any of its duties hereunder
the Secured Party may, but it shall not be obligated to, perform any of such
duties and the Debtor shall forthwith upon demand reimburse the Secured Party
for any expense incurred by the Secured Party in doing so.

         (f) No delay or omission by the Secured Party in exercising any right
hereunder or with respect to any Indebtedness shall operate as a waiver of that
or any other right, and no single or partial exercise of any right shall
preclude the Secured Party from any other further exercise of any other right or
remedy. The Secured Party may cure any Event of Default by the Debtor in any
reasonable manner without waiving the Event of Default so cured and without
waiving any other prior or subsequent Event of Default by the Debtor. All rights
and remedies of the Secured Party under this Agreement and under the Uniform
Commercial Code shall be deemed cumulative.

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         (g) The Secured Party shall have no obligation to take and the Debtor
shall have the sole responsibility for taking any steps to preserve rights
against all prior parties to any instrument or chattel paper in the Secured
Party's possession as proceeds of the Collateral. The Debtor waives notice of
dishonor and protest of any instrument constituting Collateral at any time held
by the Secured Party on which the Debtor is in any way liable and waives notice
of any other action by the Secured Party.

         (h) The rights and benefits of the Secured Party under this Agreement
shall, if the Secured Party agrees, inure to any party acquiring an interest in
the Indebtedness or any part thereof.

         (i) The terms "Secured Party" and "Debtor" as used in this Agreement
include the heirs, personal representatives, and successors and assigns of those
parties.

         (j) If more than one Debtor executes this Security Agreement, the term
"Debtor" includes each of the Debtors as well as all of them, and their
obligations under this Agreement shall be joint and several.

         (k) This Agreement may not be modified or amended nor shall any
provision of it be waived except in writing signed by the Debtor and by an
authorized officer of the Secured Party.

         (l) This Agreement shall be construed under the Uniform Commercial Code
and any other applicable Florida laws in effect from time to time.

         (m) This Security Agreement is a continuing agreement which shall
remain in force until the Secured Party shall actually receive written notice of
its termination and thereafter until all of the Indebtedness contracted for or
created before receipt of the notice and any extensions or renewals of that
Indebtedness (whether made before or after receipt of the notice) together with
all interest thereon both before and after the notice shall be paid in full.

         8. WAIVER. The Debtor hereby waives any rights Debtor may have to
notice and a hearing before possession of Collateral is effected by Secured
Party by self-help, replevin, attachment or otherwise.

         9. WAIVER OF TRIAL BY JURY. DEBTOR HEREBY, AND SECURED PARTY BY ITS
ACCEPTANCE OF THIS SECURITY AGREEMENT, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE THE RIGHT EITHER MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY LITIGATION
ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS SECURITY AGREEMENT AND ALL
AGREEMENTS EXECUTED OR CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH, OR
ARISING OUT OF, UNDER, OR IN CONNECTION WITH ANY COURSE OF CONDUCT,

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COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTION OF EITHER
PARTY, WHETHER IN CONNECTION WITH THE INDEBTEDNESS, THE COLLECTION THEREOF, OR
OTHERWISE. THIS PROVISION IS A MATERIAL INDUCEMENT FOR SECURED PARTY EXTENDING
THE CREDIT ACCOMMODATION(S) COMPRISING THE INDEBTEDNESS.

                                      MEGAMEDIA NETWORKS, Inc., a Delaware
                                      corporation

________________________________      BY:__________________________________
Officer                                  David Gust, Chief Executive Officer

                                                    "Debtor"EXHIBIT 10.19

                                    REVOLVING
                                 PROMISSORY NOTE

$350,000.00                                                   Orlando, Florida
                                                              As of July 6, 2000

         THIS PROMISSORY NOTE (the "Note") is a duly authorized Note of
MEGAMEDIA NETWORKS, INC., a Delaware corporation (the "Company"), in the
principal sum of THREE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($350,000.00).
"Company" includes any successors or assigns of the Company.

         FOR VALUE RECEIVED, the Company promises to pay THE ORLANDO GROUP
DOWNTOWN LLC, a Florida limited liability company, at 100 S. Orange Avenue,
Suite 1000, Orlando, Florida 32801, or its assigns (the "Holder"), the principal
sum of THREE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($350,000.00), or so much
thereof as may be advanced and outstanding from time to time (the "Outstanding
Principal Amount") upon demand by Holder, and to pay interest monthly on the
Outstanding Principal Amount from time to time at the prime rate announced by
AmSouth Bank less one-half of one percent (0.50%) on the 1st day of each month.

         Accrual of interest shall commence at that date which the Holder
advances any monies to or on behalf of Company and will continue until the
Company has repaid in full the Outstanding Principal Amount and accrued interest
or this Note is converted in accordance with its terms. The Outstanding
Principal Amount and accrued interest of this Note is payable in such coin or
currency of the United States as at the time of payment is legal tender for
payment of public and private debts, at the address above or as designated in
writing by the Holder from time to time.

         This Note is subject to the following additional provisions:

         1. All payments on account of the Outstanding Principal Amount and
interest of this Note and all other amounts payable under this Note (whether
made by the Company or any other person) to or for the account of the Holder
shall be made free and clear of and without reduction by reason of any present
and future income, stamp, registration and other tax, levies, duties, cost, and
charges whatsoever imposed, assessed, levied or collected by the United States
or any political subdivision or taxing authority thereof or therein, together
with interest thereon and penalties with respect thereto, if any, on or in
respect of this Note (such taxes, levies, duties, costs and charges being herein
collectively called "US Taxes").

         2. The Holder of this Note is entitled, at its option, at any time
after the Company's common stock begins trading on a recognized trading system,
to convert all or any lesser portion of the Outstanding Principal Amount and
interest into shares of common stock of the Company (the "Common Stock") at the
Conversion Price, as defined in Paragraph 3, below (the "Conversion Shares"). In
the event of any stock split, dividend, combination or similar event occurring
after a

<PAGE>

Conversion Date and before the issuance of the respective stock certificates,
the Conversion Price, as defined in Paragraph 3, below, will be subject to
appropriate adjustment. The Holder may convert this Note into Common Stock by
surrendering the Note to be converted to the Company, with the form of
conversion notice attached to the Note as Exhibit "A", executed by the Holder of
the Note. The Holder may elect to convert in whole or in part on multiple
occasions until the Note is paid in full.

         3. The "Conversion Price" shall be that price determined by multiplying
the average closing bid price of the Common Stock on the principal exchange or
trading mechanism on which the Common Stock is traded for the three trading days
before the Company receives a Notice of Conversion (substantially in the form of
Exhibit "A") from the Holder by 80%. The Company will not issue fractional
shares or scrip representing fractions of shares of Common Stock on conversion,
but the number of shares of Common Stock issuable shall be rounded to the
nearest whole share. The date on which a Notice of Conversion is given
("Conversion Date") shall be deemed to be the date on which the Holder notifies
the Company of its intention to so convert by delivery, by facsimile
transmission or otherwise, of a copy of the Notice of Conversion to the Company
at 57 West Pine Street, Orlando, Florida, 32801, Attention: President. This Note
(if and when fully converted), together with original executed copy of the
Notice of Conversion, shall be delivered to the Company within three (3)
business days following the date on which Notice of Conversion is sent as
described above. Upon demand by Holder, any unconverted principal amount and
accrued interest thereon shall be paid, at the option of the Holder, in either
(a) cash or (b) Common Stock valued at a price equal to the Conversion Price
determined as if the Note was converted into Common Stock on the date of demand.

         4. Upon the Holder's delivery of a Notice of Conversion, properly
completed and duly executed by the Holder, the Company shall issue and, within
five (5) business days after delivery to the Company of the Notice of
Conversion, deliver to or upon the order of the Holder one or more certificates
(the "Certificates"), representing that number of shares of Common Stock into
which the portion of the Note converted is convertible, and if submitted to the
Company (but not fully converted), a Replacement Note in the principal amount
equal to the Outstanding Principal Amount not converted.

         5. The number of shares of Common Stock to be issued upon each
conversion of this Note shall be determined by dividing that portion of the
principal amount of the Note to be converted, plus the dollar amount of all
interest that has accrued on that portion of the Note then being converted but
which has not previously been paid, by the Conversion Price.

         6. No provision of this Note shall alter or impair the obligation of
the Company, which is absolute and unconditional, to the payment of the
principal and interest of this Note at the time, place and rate, and in the coin
or currency herein prescribed. This Note is a direct obligation of the Company.

         7. The Company hereby expressly waives demand and presentment for
payment, notice of nonpayment, protest, notice of dishonor, notice of
acceleration or intent to accelerate, bringing of

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suit and diligence in taking any action to collect amounts called for hereunder
and shall be directly and primarily liable for the payment of all sums owing and
to be owing herein, regardless of and without notice, diligence, act or omission
as or with respect to the collection of any amount called for hereunder.

         8. If the Company at any time or from time to time after the date of
this Note makes a dividend or other distribution to holders of Common Stock
payable in securities of the Company, then in each such event provision shall be
made so that the Holder shall receive upon conversion of this Note, in addition
to the number of Conversion Shares receivable, the amount of such other
securities of the Company to which the Holder on the relevant record of payment
date, as applicable, would have been entitled, plus any dividends or other
distributions would have been received with respect to such securities had the
Holder thereafter, during the period from the date of such event to and
including the Conversion Date retained such securities, subject to all other
adjustments called for during such period under this Note with respect to the
rights of the Holder.

         9. If at any time or from time to time after the date of this Note, the
Common Stock issuable upon the conversion of the Note is changed into the same
or different numbers of shares of any class or classes of stock, whether by
recapitalization or otherwise (other than subdivision or combination of shares
of Common Stock or stock dividend or reorganization provided for elsewhere in
this Note or a merger or consolidation, provided for in Paragraph 3), then in
each such event the Holder shall have the right thereafter to convert the Note
into the kind of security receivable in such recapitalization, reclassification
or other change by holders of Common Stock, all subject to further adjustment as
provided herein. In such event, the formulae set forth herein for conversion
shall be equitably adjusted to reflect such change in number of shares or, if
shares of a new class of stock are issued, to reflect the market price of the
class or classes of stock issued in connection with the above described
transaction.

         10. If at any time or from time to time after the date of this Note
there is a capital reorganization of the Common Stock (other than a
recapitalization, subdivision, combination, reclassification, or exchange of
shares provided for elsewhere in this Note) then, as a part of such
reorganization, provision shall be made so that the Holder shall thereafter to
be entitled to receive upon conversion of this Note the number of shares of
stock or other securities or property to which a holder of the number of Shares
deliverable upon conversion would have been entitled on such capital
reorganization. In any such case, appropriate adjustment shall be made in the
application of the provisions of this Note with respect to the rights of the
Holder after the reorganization to the end that the provisions of this Note
shall be applicable after that event and be as nearly equivalent as may be
practicable, including, by way of illustration and not limitation, by equitably
adjusting the formulae set forth herein for conversion and redemption to reflect
the market price of the securities or property issued in connection with the
above described transaction.

         11. If one or more of the "Events of Default" as described in Paragraph
12 shall occur, the Company agrees to pay all costs and expenses, including
reasonable attorney's fees, which may be incurred by the Holder in collecting
any amount due under, or enforcing any terms of, this Note.

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<PAGE>

         12. (a)  "Events of Default" shall mean:

                        (1)   The Company shall default in the timely payment of
                              principal and interest on the Note; or

                        (2)   Any of the representations or warranties made by
                              the Company herein or in the Credit Agreement
                              between the Company and Holder with respect to
                              this Note, or in any certificate or financial or
                              other document heretofore or hereafter furnished
                              by or on behalf of the Company in connection with
                              the execution and delivery of this Note, shall be
                              false or misleading any material respect at the
                              time made; or

                        (3)   The Company shall fail to perform or observe any
                              other covenant, provision, condition, agreement or
                              obligation of the Company under this Note, the
                              Security Agreement, the Credit Agreement, or any
                              other related documents, and such failure shall
                              continue uncured for a period of thirty (30) days
                              after notice from the Holder of such failure; or

                        (4)   The Company shall (i) become insolvent, (ii) admit
                              in writing its inability to pay its debts as they
                              mature; (iii) make an assignment for the benefit
                              of creditors or commence proceedings for its
                              dissolution; or (iv) apply for or consent to the
                              appointment of a trustee, liquidator or receiver
                              for it or for a substantial part of its property
                              or business; or

                        (5)   A trustee, liquidator or receiver shall be
                              appointed for the Company or for a substantial
                              part of its property or business without its
                              consent and shall not be discharged within thirty
                              (30) days after such appointment; or

                        (6)   Any governmental agency or any court of competent
                              jurisdiction at the instance of any governmental
                              agency shall assume custody or control of the
                              whole or any substantial portion of the properties
                              or assets of the Company and shall not be
                              dismissed within thirty (30) days thereafter; or

                        (7)   Any money judgment, writ or warrant of attachment,
                              lien or similar process in excess of Twenty
                              Thousand Dollars ($20,000) in the aggregate shall
                              be entered or filed against the Company or any of
                              its properties or other assets and shall remain
                              unsatisfied, unvacated, unbounded or unstayed for
                              a period of thirty (30) days (unless such

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<PAGE>

                              order provided for delayed payment) or in any
                              event later than five (5) days prior to the date
                              of any proposed sale thereunder; or

                        (8)   Bankruptcy, reorganization, insolvency or
                              liquidation proceedings or other proceedings for
                              relief under any bankruptcy law or any law for the
                              relief of debtors shall be instituted by or
                              against the Company and if instituted against the
                              Company, shall not be dismissed, stayed or bonded
                              within sixty (60) days after such institution or
                              the Company shall by any action or answer approve
                              of, consent to, or acquiesce in any such
                              proceedings or admit the material allegations of,
                              or default in answering a petition filed in any
                              such proceeding.

                  (b) If an Event of Default occurs, then, or at any time
thereafter, and in each and in every such case, unless such Event of Default
shall have been waived in writing by the Holder (which waiver shall not be
deemed to be a waiver of any subsequent default), the Holder may consider this
Note immediately due or payable, without presentment, demand, protest or notice
of any kind, all of which are expressly waived, anything herein or in any note
or other instruments contained to the contrary notwithstanding, and the Holder
may immediately demand without expiration of any period of grace, enforce any
and all of the Holder's rights and remedies provided herein or any other rights
or remedies afforded by law.

         13. Notwithstanding anything to the contrary contained herein, each
Notice of Conversion shall contain representations to the effect that (1) the
Holder is an "accredited investor" as such term is defined in Rule 501(a) of
Regulation D promulgated by the SEC under the 1933 Act, and (2) the Conversion
Shares are being acquired for the Holder's own account and not as a nominee for
any other party.

         14. The Company covenants that until it has paid all amounts due under
this Note in full, by conversion or otherwise, unless the Holder or subsequent
Holder waives compliance in writing, the Company shall:

                  (a) give prompt written notice to the Holder of any Event of
Default or of any other matter which has resulted in, or could reasonably be
expected to result in a materially adverse change in its financial condition or
operations;

                  (b) give prompt notice to the Holder of any claim, action or
proceeding which, in the event of any unfavorable outcome, would or could
reasonably be expected to have a material adverse effect on the financial
condition of the Company;

                  (c) at all times reserve and keep available out of its
authorized but unissued Common Stock, for the purpose of effecting the
conversion of this Note into Common Stock, such number of its duly authorized
shares of Common Stock as shall from time to time be sufficient to effect the
conversion of the outstanding principal balance of this Note into Common Stock.

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<PAGE>

                  (d) upon receipt by the Company of evidence from the Holder
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Note,

                        (i)   in the case of loss, theft or destruction, upon
                              provision of indemnity reasonably satisfactory to
                              it and/or its transfer agent, or

                        (ii)  in the case of mutilation, upon surrender and
                              cancellation of this Note

then the Company at its expense will execute and deliver to the Holder a new
Note, dated the date of the lost, stolen, destroyed or mutilated Note, and
evidencing the outstanding and unpaid principal amount of the lost, stolen,
destroyed or mutilated Note.

         15. The Holder, by acceptance hereof, acknowledges that this Note is
being acquired for investment and that the Holder will not offer, sell or
otherwise dispose of this Note or the Common Stock issuable upon conversion
hereof except under circumstances which will not result in a violation of the
1933 Act or any applicable state securities laws.

         16. In the case any provision of this Note is held by a court of
competent jurisdiction to be excessive in scope or otherwise invalid or
unenforceable, such provision shall be adjusted rather than voided, if possible,
so that its enforceable to the maximum extent possible, and the validity and
enforceability of the remaining provisions of this Note will not in any way be
affected impaired thereby.

         17. The Note and the Agreement between the Company and the Holder
(including all Exhibits) constitute the full and entire understanding and
agreement between the Company and the Holder with respect to the subject hereof.
Neither this Note nor any of its terms may be amended, waived, discharged or
terminated other than by a written instrument signed by the Company and the
Holder.

         18. This Note shall be governed by and construed in accordance with the
internal laws of the State of Florida.

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed by a duly authorized officer, as of the date first written above.

                                    MEGAMEDIA NETWORKS, INC.

                                    By:__________________________________
                                             David Gust, Chief Executive Officer

                                       6
<PAGE>

                                    EXHIBIT A

                              NOTICE OF CONVERSION

     (To Be Executed by the Registered Holder in Order to Convert the Note.)

         The undersigned hereby irrevocably elects to convert $_____________ of
the Revolving Promissory Note due upon demand of Holder, and all interest
accrued on that principal amount, into shares of Common Stock of MegaMedia
Networks, Inc. or its successors (the "Company"), according to the terms and
conditions set forth in such Note, as of the date written below. If securities
are to be issued to a person other than the Undersigned, the Undersigned agrees
to pay all applicable transfer taxes with respect thereto.

         The undersigned represents that it, as of this date, is an "accredited
investor" as such term is defined in Rule 501(a) of Regulation D promulgated by
the SEC under the 1933 Act.

         The undersigned also represents that the Conversion Shares are being
acquired for the Holder's own account and not as a nominee for any other party.

         The undersigned represents and warrants that all offers and sales by
the undersigned of the Conversion Shares shall be made pursuant to an exemption
from registration under the 1933 Act.

Conversion Date:___________________

Applicable Conversion Price:____________________

Holder (Print True Legal Name & Address):__________________________

______________________________________________________________________

                                        ________________________________
                                        (Signature of Duly Authorized
                                         Representative of Holder)

Address of Holder:         ______________________________________

                           ______________________________________

                           ______________________________________

* This original Notice of Conversion must be received by the Company by the
second business day following the Conversion Date.

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