Document:

Exhibit 10.19

THIS NOTE AND THE SHARES OF COMMON STOCK  ISSUABLE UPON  CONVERSION OF THIS NOTE
HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE TRANSFERRED UNTIL
(i) A REGISTRATION  STATEMENT  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES  ACT") SHALL HAVE BECOME EFFECTIVE WITH RESPECT THERETO (ii) RECEIPT
BY THE COMPANY OF AN OPINION OF COUNSEL  REASONABLY  SATISFACTORY TO THE COMPANY
TO THE EFFECT THAT  REGISTRATION  UNDER THE  SECURITIES  ACT IS NOT  REQUIRED IN
CONNECTION WITH SUCH PROPOSED  TRANSFER NOR IS SUCH TRANSFER IN VIOLATION OF ANY
APPLICABLE  STATE  SECURITIES  LAWS. THIS LEGEND SHALL BE ENDORSED UPON ANY NOTE
ISSUED IN EXCHANGE  FOR THIS NOTE OR ANY SHARES OF COMMON  STOCK  ISSUABLE  UPON
CONVERSION OF THIS NOTE.

THIS NOTE AND THE RIGHTS AND  OBLIGATIONS OF THE COMPANY AND PAYEE HEREUNDER ARE
SUBJECT TO THE  SUBORDINATION  PROVISIONS SET FORTH IN SECTION 2 HEREOF.  IN THE
EVENT OF A CONFLICT BETWEEN ANY TERMS OF THIS NOTE AND THE TERMS OF SUCH SECTION
2, THE TERMS OF SECTION 2 SHALL GOVERN.

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                  FUSION TELECOMMUNICATIONS INTERNATIONAL, INC.

No. 3                                                                $125,000.00
                                                                   April 9, 1999

                          CONVERTIBLE SUBORDINATED NOTE

                  Fusion  Telecommunications  International,  Inc.,  a  Delaware
corporation (the "Company"),  for value received,  hereby promises to pay to the
order of Philip D. Tarits (the "Payee") on April 9, 2004 (the  "Maturity  Date")
at the offices of the  Company,  the  principal  sum of One Hundred  Twenty-Five
Thousand Dollars  ($125,000.00) or such lesser principal amount as shall at such
time be outstanding  hereunder  (the  "Principal  Amount").  Each payment by the
Company  pursuant to this Note shall be made without set-off or counterclaim and
shall  be made in  lawful  currency  of the  United  States  of  America  and in
immediately available funds. Interest on this Note shall accrue on the Principal
Amount  outstanding from time to time at a rate per annum computed in accordance
with Section 3 hereof.

                  The amount of all  repayments of  principals,  interest  rates
applicable thereto and interest accrued thereon shall be recorded on the records
of the Payee and, prior to any transfer of, or any action to collect,  this Note
shall be  endorsed  on this Note.  Any such  recordation  or  endorsement  shall
constitute  PRIMA FACIE evidence of the accuracy of the  information so recorded
or  endorsed,  but the failure to record any such amount or rate shall not limit
or otherwise affect the obligations of the Company hereunder to make payments of
principal or interest when due. All payments by the Company  hereunder  shall be
applied first to pay any interest  which is due, but unpaid,  then to reduce the
Principal Amount.

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                  The Company (i) waives presentment,  demand, protest or notice
of any kind in  connection  with this Note and (ii)  agrees to pay to the holder
hereof, on demand, all costs and expenses  (including  reasonable legal fees and
expenses)  incurred in connection  with the  enforcement  and collection of this
Note.

                  This Note is issued in connection with a private  placement of
identical Notes  (collectively,  the "Notes"),  the term of which are more fully
set forth in the  Confidential  Private  Placement  Memorandum dated February 8,
1999, as amended and restated on April 29, 1999,  May 11, 1999 and May 17, 1999,
and pursuant to a Subscription Agreement, between the Company and the Payee (the
"Subscription Agreement"), a copy of which agreement is available for inspection
at the Company's principal office. Notwithstanding any provision to the contrary
contained  herein,   this  Note  is  subject  and  entitled  to  certain  terms,
conditions,  covenants and agreements  contained in the Subscription  Agreement.
Any transferee of this Note, by its acceptance  hereof,  assumes the obligations
of the Payee in the  Subscription  Agreement  with respect to the conditions and
procedures for transfer of this Note.  Reference to the  Subscription  Agreement
shall in no way impair the absolute and unconditional  obligation of the Company
to pay both principal hereof and interest hereon as provided herein.

         1.  PREPAYMENT.  The Principal  Amount of this Note may be prepaid,  in
whole or in part,  without  penalty,  at any time or from time to time after the
third anniversary of the date of this Note or earlier pursuant to the provisions
of  Section  6B  hereof  upon  10  business  days'  prior  written  notice  (the
"Prepayment  Notice")  to  the  Payee.  Principal  Amounts  repaid  may  not  be
reborrowed.

         2. SUBORDINATION.  The Company, for itself, its successors and assigns,
covenants and agrees,  and the Payee and each successive holder of this Note, by
its acceptance of this Note,  likewise  covenants and agrees  (expressly for the
benefit of the  present and future  holders of the Senior  Debt (as  hereinafter
defined)),  that the  payment of  principal  of, and  interest  on, this Note is
hereby  expressly  subordinated in right of payment to the prior payment in full
of the  principal  of,  premium (if any) and interest on, all Senior Debt of the
Company  (other  than the  Notes),  whether  outstanding  on the date  hereof or
hereafter  incurred or  created.  "Senior  Debt"  means,  collectively,  (i) all
Indebtedness  for  Borrowed  Money (and all  renewals,  extensions,  refundings,
amendments and modifications of any such Indebtedness for Borrowed Money);  (ii)
all other indebtedness  incurred prior to the issuance of the Notes which by its
terms is senior to the Notes;  and (iii) all payment  obligations of the Company
pursuant to any capitalized lease with an entity that is not an affiliate of the
Company,  unless by the terms of the instrument  creating or evidencing any such
indebtedness it is expressly  provided that such indebtedness is not superior in
right of payment to the Notes.

                  "Indebtedness  for  Borrowed  Money"  means  (i) all  payments
obligations  of the Company to a bank,  insurance  company,  finance  company or
other institutional  lender or other entity regularly engaged in the business of
extending  credit in the form of borrowed money,  provided such entity is not an
affiliate of the Company (each of the foregoing,  an "Institutional  Lender") in
respect  of  extensions  of credit to the  Company  (or to a  subsidiary  of the
Company to the extent such obligations are guaranteed by the Company pursuant to
a written  guarantee

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executed by the appropriate  officers of the Company) and (ii) all  obligations,
contingent or  otherwise,  relative to the face amount of all letters of credit,
whether or not drawn,  and  banker's  acceptances,  in each case  issued for the
account  of the  Company  (other  than  such  as may be for  the  benefit  of an
affiliate of the Company).

                  The  provisions  of this  Section 2 are not for the benefit of
the Company,  but are solely for the purpose of defining the relative  rights of
the holders of the Senior Debt,  on the one hand,  and the holders of the Notes,
on the other hand.  Nothing  contained  herein (i) shall impair,  as between the
Company and the holder of this Note, the  obligations of the Company,  which are
absolute and  unconditional,  to pay to the holder hereof all amounts payable in
respect  of this  Note as and when the same  shall  become  due and  payable  in
accordance  with the terms  hereof or (ii) is  intended  to or shall  affect the
relative rights of the holder of this Note and the creditors of the Company,  or
(iii) shall prevent the holder of this Note from  exercising all rights,  powers
and remedies otherwise permitted by applicable law or upon a default or Event of
Default under this Note as set forth in these subordination provisions.

         3. COMPUTATION OF INTEREST.

                  A. BASE INTEREST  RATE.  Subject to subsections B and C below,
the  outstanding  Principal  Amount shall bear interest at the rate of seven and
on-quarter percent (7.25%) per annum.

                  B.  PENALTY  INTEREST.  After the Maturity  Date,  the rate of
interest applicable to the unpaid Principal Amount shall be 2% in excess of that
otherwise  applicable  pursuant to subsection A above, but in no event in excess
of the Maximum Rate provided in subsection C below.

                  C.  MAXIMUM  RATE.  In the event that it is  determined  that,
under the laws relating to usury  applicable to the Company or the  indebtedness
evidenced by this Note ("Applicable  Usury Laws"), the interest charges and fees
payable by the Company in connection  herewith or in  connection  with any other
document or instrument  executed and delivered in connection  herewith cause the
effective interest rate applicable to the indebtedness evidenced by this Note to
exceed the maximum rate allowed by law (the "Maximum Rate"),  then such interest
shall be recalculated for the period in question and any excess over the Maximum
Rate paid  with  respect  to such  period  shall be  credited,  without  further
agreement or notice,  to the Principal  Amount  outstanding  hereunder to reduce
said balance by such amount with the same force and effect as though the Company
had  specifically  designated  such extra sums to be so applied to principal and
the  Payee  had  agreed  to  accept  such  extra  payment(s)  as a  premium-free
prepayment.  All such  deemed  prepayments  shall be  applied  to the  principal
balance payable at maturity.  In no event shall any agreed-to or actual exaction
as  consideration  for this Note  exceed  the  limits  imposed  or  provided  by
Applicable  Usury Laws in the  jurisdiction  in which the  Company  is  resident
applicable  to the use or  detention of money or to  forbearance  in seeking its
collection in the jurisdiction in which the Company is resident.

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                  D. INTEREST  PAYMENT DATES.  Accrued and unpaid interest shall
be payable (i)  semi-annually on January 31, (ii) upon maturity  (whether at the
Maturity Date, by acceleration or otherwise),  (iii) upon any prepayment, on the
amount  prepaid  and (iv) after  maturity  until paid in full  (after as well as
before judgment), on demand. Each of the dates referred to in clauses (i), (ii),
(iii),  and (iv) is sometimes  hereinafter  referred to as an "Interest  Payment
Date." All computations of interest  hereunder shall be made based on the actual
number  of days  elapsed  in a year of 365 days  (including  the  first  day but
excluding the last day during which any such Principal  Amount is  outstanding).
The Principal  Amount of this Note  together  with  interest  accrued and unpaid
thereon  shall be payable on the Maturity  Date unless this Note is converted in
accordance with Section 6 hereof.

         4. COVENANTS OF COMPANY

                  A.  AFFIRMATIVE  COVENANTS.  The Company  covenants and agrees
that, so long as this Note shall be outstanding, it will perform the obligations
set forth in this Section 4A:

                           (i) TAXES AND LEVIES.  The Company will file when due
all  federal  state and local  income  tax  returns  and will  promptly  pay and
discharge all taxes,  assessments,  and  governmental  charges or levies imposed
upon the Company or upon its income and  profits,  or upon any of its  property,
before the same shall become delinquent, except where the failure to file and/or
make payment would not have a material adverse effect on the Company, as well as
all claims for labor,  materials and supplies,  which, if unpaid, might become a
lien or charge  upon any  material  properties  or any  material  part  thereof;
PROVIDED,  HOWEVER,  that the Company shall not be required to pay and discharge
any such tax, assessment,  charge, levy or claim so long as the validity thereof
shall be  contested  in good faith by  appropriate  proceedings  and the Company
shall set aside on its books  adequate  reserves in  accordance  with  generally
accepted   accounting   principles  ("GAAP")  with  respect  to  any  such  tax,
assessment, charge, levy or claim so contested;

                           (ii) MAINTENANCE OF EXISTENCE. The Company will do or
cause to be done all things  reasonably  necessary  to preserve and keep in full
force and effect its corporate existence,  rights and franchises and comply with
all laws applicable to the Company, except where the failure to comply would not
have a material adverse effect on the Company;

                           (iii)  MAINTENANCE  OF  PROPERTY.  The  Company  will
maintain, preserve, protect and kept its material property used or useful in the
conduct of its business in good repair,  working order and  condition,  and from
time to time make all needful and proper  repairs,  renewals,  replacements  and
improvements  thereto  as shall be  reasonably  required  in the  conduct of its
business;

                           (iv)  INSURANCE.  The  Company  will,  to the  extent
necessary  for  the  operation  of its  business,  keep  adequately  insured  by
financially  sound  reputable  insurers,  all  property of a  character  usually
insured by similar  corporations  and carry such other  insurance  as is usually
carried by similar corporations;

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<PAGE>

                           (v) BOOKS AND RECORDS.  The Company will at all times
keep true and correct books, records and accounts reflecting all of its business
affairs and  transactions  in accordance with GAAP. Such books and records shall
be open at reasonable times and upon reasonable  notice to the inspection of the
Payee or its agents;

                           (vi) NOTICE OF CERTAIN EVENTS.  The Company will give
prompt written notice (with a description in reasonable detail) to the Payee of:

                                    (a) the  occurrence  of any Event of Default
or any event  which,  with the  giving  of  notice  or the lapse of time,  would
constitute an Event of Default;

                                    (b)  the   occurrence  of  any   litigation,
arbitration or governmental investigation or proceeding not previously disclosed
by the  Company to the Payee in  writing  which has been  instituted  or, to the
knowledge of the Company, is threatened,  against the Company or to which any of
its properties,  assets or revenues is subject which,  if adversely  determined,
would reasonably be expected to have a material adverse effect on the Company;

                                    (c) the  occurrence  of any event of default
or any event  which,  with the  giving  of  notice  or the lapse of time,  would
constitute an event of default  under any document or  instrument  evidencing or
governing  any  indebtedness  of the Company in the principal  amount  exceeding
$1,000,000 and the delivery of any notice effecting the acceleration of any such
indebtedness;

                                    (d) any material adverse  development  which
shall occur in any  litigation,  arbitration or  governmental  investigation  or
proceeding previously disclosed by the Company to the Payee; and

                                    (e) the occurrence of any other circumstance
which has a reasonable  likelihood  of having a material  adverse  effect on the
Company;

                           (vii)  COMPLIANCE  WITH LAWS. The Company will comply
in all material  respects  with all  applicable  federal,  state and local laws,
rules, regulations and orders.

                  B. NEGATIVE COVENANTS.  The Company covenants and agrees that,
so long as this Note shall be  outstanding,  it will perform the obligations set
forth in this Section 4B:

                           (i)  LIQUIDATION,  DISSOLUTION.  The Company will not
liquidate  or  dissolve,  consolidate  with,  or merge  into or with,  any other
corporation  or other  entity,  PROVIDED THAT this clause (i) shall not restrict
any  consolidation or merger with an entity which has a tangible net worth equal
to or greater than the Company's at the time of transfer and such entity assumes
the obligations under the Notes;

                           (ii)  SALES OF  ASSETS.  The  Company  will not sell,
transfer,  lease or otherwise  dispose of, or grant  options,  warrants or other
rights with respect to, all or substantially  all of its properties or assets to
any person or entity,  PROVIDED  THAT this  clause (ii) shall not  restrict  any
disposition made to an entity which has a tangible net worth equal to or

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greater than the  Company's at the time of transfer and such entity  assumes the
obligations under the Notes;

         5. EVENTS OF DEFAULT

                  A. The term  "EVENT OF  DEFAULT"  shall mean any of the events
set forth in this Section 5A:

                           (i)  NON-PAYMENT  OF  OBLIGATIONS.  The Company shall
default  in the  payment  of  principal  on this Note when and as the same shall
become due and  payable,  whether by  acceleration  or otherwise  or,  within 10
business days of its becoming due, accrued interest on this Note;

                           (ii)  NON-PERFORMANCE OF AFFIRMATIVE  COVENANTS.  The
Company shall default in the due  observance or  performance of any covenant set
forth in Section 4A, which default shall  continue  uncured for 10 business days
after it has been discovered or should have been discovered by the Company;

                           (iii)  NON-PERFORMANCE  OF  NEGATIVE  COVENANTS.  The
Company shall default in the due  observance or  performance of any covenant set
forth in Section 4B;

                           (iv)   NON-PERFORMANCE  OF  OTHER  OBLIGATIONS.   The
Company shall default in the due observance or performance of any other material
covenant or  agreement  on the part of the  Company to be observed or  performed
pursuant  to the terms  hereof,  which  default  shall  continue  uncured for 10
business days after written  notice thereof  specifying  such default shall have
been given to the Company by the holder of this Note (or its agent);

                           (v) BANKRUPTCY, INSOLVENCY, ETC. The Company shall:

                                    (a) become insolvent or generally fail or be
unable to pay,  or admit in  writing  its  inability  to pay,  its debts as they
become due;

                                    (b) apply for,  consent to, or acquiesce in,
the appointment of a trustee, receiver,  sequestrator or other custodian for the
Company or any of its property,  or make a general assignment for the benefit of
creditors;

                                    (c)  in the  absence  of  such  application,
consent or acquiesce in, permit or suffer to exist the appointment of a trustee,
receiver, sequestrator or other custodian for the Company or for any part of its
property, and such trustee, receiver,  sequestrator or other custodian shall not
be discharged within 30 days; or

                                    (d)   permit   or   suffer   to  exist   the
commencement of any bankruptcy,  reorganization,  debt arrangement or other case
or  proceeding  under any  bankruptcy  or  insolvency  law, or any  dissolution,
winding up or  liquidation  proceeding,  in respect of the Company  and, if such
case or  proceeding  is not commenced by the Company or converted to a voluntary
case,  such case or  proceeding  shall be consented to or  acquiesced  in by the
Company or shall  result in the entry of an order for relief or shall remain for
60 days undismissed.

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                           (vi) BREACH OF WARRANTY. Any material  representation
or warranty of the Company  contained in the Subscription  Agreement is or shall
be incorrect in any material respect when made.

                  B. ACTION IF BANKRUPTCY.  If any Event or Default described in
clauses (v)(a) through (d) of Section 5A shall occur, the outstanding  Principal
Amount of this Note and all other obligations  hereunder shall  automatically be
and become immediately due and payable, without notice or demand.

                  C. ACTION IF OTHER  EVENT OF DEFAULT.  If any Event of Default
(other  than any Event of Default  described  in clauses  (v)(a)  through (d) of
Section 5A) shall occur for any reason, whether voluntary or involuntary, and be
continuing, the Required Holders may, upon notice to the Company, declare all or
any portion of the  outstanding  Principal  Amount of this Note,  together  with
interest accrued thereon, to be due and payable and any or all other obligations
hereunder to be due and payable,  whereupon the full unpaid Principal Amount (or
any portion  thereof so demanded),  such accrued  interest and any and all other
such obligations  which shall be so declared due and payable shall be and become
immediately due and payable, without further notice, demand, or presentment.

                  D.  REMEDIES.  Subject to the  provisions of Section 5C and 7A
hereof, in case any Event of Default shall occur and be continuing,  the holders
of not less than 25% of the outstanding  aggregate Principal Amount of the Notes
may  proceed to protect  and  enforce  its rights by a  proceeding  seeking  the
specific  performance of any covenant or agreement  contained in this Note or in
aid of the exercise of any power  granted in this Note or may proceed to enforce
the payment of this Note or to enforce any other  legal or  equitable  rights as
such holder shall determine.

         6. CONVERSION OF NOTE.

                  A. AUTOMATIC  CONVERSION ON QUALIFIED PUBLIC OFFERING.  In the
event of a Qualified Public Offering (as hereinafter  defined),  the outstanding
Principal  Amount of this Note shall, at the sole discretion of the Company,  be
automatically  converted  at the  closing  of such  Qualified  Public  Offering,
without  any action by the holder  hereof,  into  shares of Common  Stock of the
Company at a price equal to $8.00 per share,  subject to  adjustment as provided
in Section 6D below (the  "Conversion  Price").  A "Qualified  Public  Offering"
means an  underwritten  public  offering  of the  Common  Stock  of the  Company
registered  under the Securities  Act of 1933, as amended,  in which the initial
public  offering  price at which such stock is offered equals or exceeds 125% of
the Conversion  Price (i.e.  $10.00 per share) and the aggregate gross proceeds,
prior to deduction for underwriting  discounts and commissions,  equal or exceed
$10,000,000. The shares of Common Stock issuable upon conversion of this Note at
the Conversion Price are referred to herein as the "Conversion Shares."

                  B. PREPAYMENT OR AUTOMATIC  CONVERSION  UPON OTHER EVENTS.  If
(i)  the  average  closing  bid  price  of the  Company's  Common  Stock  for 30
consecutive  trading  days ending  within 10 days of the date of the  Conversion
Notice (as defined in Section 6E) or Prepayment  Notice,  equals or exceeds 125%
of the Conversion  Price (i.e.  $10.00 per share) and

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(ii) either a registration  statement  covering the  Conversion  Shares has been
declared  effective by the  Securities  and Exchange  Commission or at least two
years has elapsed since the issuance date of the Note, the outstanding Principal
Amount of this Note may, at the sole  discretion  of the Company,  be either (i)
automatically converted, without any action by the holder hereof, into shares of
Common Stock of the Company at the  Conversion  Price or (ii) prepaid,  together
with accrued interest.  In addition, in the event the Company completes a merger
or  consolidation  in  which it is not the  surviving  entity,  the  outstanding
Principal  Amount of this Note may, at the sole  discretion  of the Company,  be
either (i)  automatically  converted,  without any action by the holder  hereof,
into shares of Common Stock of the Company at the  Conversion  Price if the cash
consideration paid in the merger or consolidation  equals or exceeds 125% of the
Conversion Price (i.e. $10.00 per share) or (ii) prepaid,  together with accrued
interest.

         C. OPTIONAL CONVERSION.  The Payee shall have the right, at its option,
at any time up to and  including the Maturity  Date, to convert the  outstanding
Principal  Amount of this Note into shares of the Company's  Common Stock at the
Conversion Price. The Payee's right to convert this Note may be exercised during
the 10 business day period after receipt of a Prepayment Notice.

         D. ADJUSTMENT OF CONVERSION  PRICE.  The Conversion  Price in effect at
any time and the number and kind of securities  issuable upon  conversion of the
Notes shall be subject to  adjustment  from time to time upon the  happening  of
certain events as follows:

                  (i) In case the Company shall (i) declare a dividend or make a
distribution  on its  outstanding  shares  of  Common  Stock in shares of Common
Stock, (ii) subdivide or reclassify its outstanding  shares of Common Stock into
a greater  number of shares,  or (iii)  combine or  reclassify  its  outstanding
shares  of  Common  Stock  into a  smaller  number  of  shares,  the  applicable
Conversion  Price in effect at the time of the record date for such  dividend or
distribution  or of the  effective  date of  such  subdivision,  combination  or
reclassification  shall be  adjusted so that it shall equal the number of shares
determined by multiplying the Conversion Price by a fraction, the denominator of
which shall be the number of shares of Common  Stock  outstanding  after  giving
effect to such action,  and the numerator of which shall be the number of shares
of Common Stock outstanding  immediately  prior to such action.  Such adjustment
shall be made successively whenever any event listed above shall occur.

                  (ii) REORGANIZATION OF THE COMPANY.  Subject to the provisions
of  Sections  1 and 6B  hereof,  in  case  of any  reclassification  or  capital
reorganization, or in case of any consolidation or merger of the Company with or
into another  corporation (other than a merger with a subsidiary in which merger
the  Company  is the  continuing  corporation  and which  does not result in any
reclassification  or capital  reorganization)  or in case of any sale,  lease or
conveyance to another corporation of the property of the Company as an entirety,
the Company shall, as a condition precedent to such transaction, cause effective
provisions  to be made so that the  holder  of this  Note  shall  have the right
thereafter  upon  conversion of this Note in accordance  with the  provisions of
this  Section  6, to  purchase  the kind and amount of shares of stock and other
securities  and  property   receivable  upon  such   reclassification,   capital
reorganization,  consolidation,  merger,  sale or  conveyance by a holder of the
number of shares

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of Common  Stock which might have been  received  upon  conversion  of this Note
immediately  prior  to  such  reclassification,  consolidation  merger,  sale or
conveyance.  Any such provision shall include  provision for  adjustments  which
shall be as nearly equivalent as may be practicable to the adjustments  provided
for in this Note. The Company shall not effect any such  consolidation,  merger,
sale,  transfer or other  disposition  in which it is not exercising its options
under Section I or Section 6B hereof, unless prior to or simultaneously with the
consummation  thereof  the  successor  corporation  (if other than the  Company)
resulting from such  consolidation  or merger or the  corporation  purchasing or
otherwise acquiring such properties shall assume, by written instrument executed
and mailed or  delivered  to the holder of this Note at the last address of such
holder appearing on the books of the Company,  the obligation to deliver to such
holder such shares of stock,  securities,  cash or properties  as, in accordance
with the foregoing provisions, such holder may be entitled to acquire. The above
provisions   of   this   paragraph   shall   similarly   apply   to   successive
reorganizations, reclassifications, consolidations, mergers, sales, transfers or
other dispositions.  Nothing herein shall be construed as to require the consent
of the  holder  to any  such  reorganization,  reclassification,  consolidation,
merger, sale, transfer or other disposition.

                  E. MECHANICS OF CONVERSION.

                           (i)  AUTOMATIC  CONVERSION.  In the event the Company
determines  to force  conversion  of the Notes  pursuant  to the  provisions  of
Sections 6A or 6B hereof, it shall deliver to the Payee at its address appearing
on the records of the Company a written  notice of the  imminent  conversion  of
this Note  (the  "Conversion  Notice"),  requesting  surrender  of this Note for
cancellation and written instructions regarding the registration and delivery of
certificates  for the  Conversion  Shares.  In the event the  Payee  receives  a
Conversion  Note,  the  Payee  shall be  required  to  surrender  this  Note for
cancellation as of either the date of the closing of a Qualified Public Offering
or, with respect to a conversion  pursuant to Section 6B,  within five  business
days of the Conversion  Notice (the "Conversion  Date"),  but the failure of the
Payee  so to  surrender  this  Note  shall  not  affect  the  conversion  of the
outstanding  Principal Amount into Conversion Shares,  provided that if the Note
is not  surrendered,  an affidavit  of lost not shall be provided.  No holder of
this Note shall be entitled upon  conversion of this Note to have the Conversion
Shares  registered  in the  name of  another  person  or  entity  without  first
complying with all applicable  restrictions on the transfer of this Note. In the
event the Payee does not provide the Company with written instructions regarding
the  registration and delivery of certificates  for the Conversion  Shares,  the
Company  shall issue such shares in the name of the Payee and shall forward such
certificates  to the  Payee  at its  address  appearing  on the  records  of the
Company. The person entitled to receive the Conversion Shares shall be deemed to
have  become the holder of record of such shares at the close of business on the
Conversion  Date and the person entitled to receive share  certificates  for the
Conversion  Shares  shall be  regarded  for all  corporate  purposes  after  the
Conversion Date as the record holder of the number of Conversion Shares to which
it is entitled upon the conversion.  The Company may rely on record ownership of
this Note for all corporate purposes, notwithstanding any contrary notice. After
the  Conversion  Date,  this  Note  shall,  until  surrendered  to the  Company,
represent  the right to receive the  Conversion  Shares plus  accrued and unpaid
interest  on the  Principal  Amount  of this  Note  through  but  excluding  the
Conversion Date.

                                       9
<PAGE>

                           (ii) OPTIONAL  CONVERSION.  Before the Payee shall be
entitled to convert this Note into Conversion  Shares, the Payee shall surrender
the certificate or certificates  therefore,  duly endorsed, at the office of the
Company, and shall give written notice to the Company at its principal corporate
office,  of the election to convert the same and shall state therein the name or
names in which the certificate or certificates for the Conversion  Shares are to
be issued.  The Company  shall,  as soon as  practicable  thereafter,  issue and
deliver to the Payee,  or to the nominee or nominees of Payee,  a certificate or
certificates  for the number of Conversion  Shares to which such holder shall be
entitled  as  aforesaid.  Such  conversion  shall be  deemed  to have  been made
immediately  prior to the close of business on the date of such surrender of the
Note to be  converted,  and the  person  or  persons  entitled  to  receive  the
Conversion  Shares  issuable  upon  such  conversion  shall be  treated  for all
purposes as the record  holder or holders of such  shares of Common  Stock as of
such date.

                  F. CASH PAYMENTS.  No fractional shares (or scrip representing
fractional shares) of Common Stock shall be issued upon conversion of this Note.
In the event  that the  conversion  of the  Principal  Amount of this Note would
result in the issuance of a fractional  share of Common Stock, the Company shall
pay a cash  adjustment  in lieu of such  fractional  share to the holder of this
Note based upon the Conversion Price.  Upon the surrender of this Note,  accrued
and unpaid interest on the Principal  Amount of this Note converted  pursuant to
Section  5A, 5B or 5C shall be paid by the  Company  to the  holder of this Note
through but excluding the Conversion Date.

                  G. STAMP TAXES,  ETC. The Company  shall pay all  documentary,
stamp or other  transactional  taxes attributable to the issuance or delivery of
shares of Common Stock upon conversion of this Note; provided, however, that the
Company  shall not be  required to pay any taxes which may be payable in respect
of any transfer involved in the issuance or delivery of any certificate for such
shares in a name other than that of the  holder of this  Note,  and the  Company
shall not be required to issue or deliver any such certificate  unless and until
the person  requesting  the issuance  thereof shall have paid to the Company the
amount of such tax or shall have established to the Company's  satisfaction that
such tax has been paid.

                  H. VALIDITY OF STOCK.  All shares of Common Stock which may be
issued  upon  conversion  of this Note will,  upon  issuance  by the  Company in
accordance with the terms of this Note, be validly  issued,  free from all taxes
and liens with respect to the issuance  thereof (other than those created by the
holders),  free from all  pre-umptive  or  similar  rights  and  fully  paid and
non-assessable.

                  I.  RESERVATION  OF SHARES.  The Company  covenants and agrees
that it will at all times have  authorized and reserved,  solely for the purpose
of such  possible  conversion,  out of its  authorized  but unissued  shares,  a
sufficient  number of shares of its Common  Stock to provide for the exercise in
full of the conversion rights contained in this Note.

                  J. NOTICE OF CERTAIN TRANSACTIONS. In case at any time:

                           (i) The Company shall  declare any dividend  upon, or
other distribution in respect of, its Common Stock; or

                                       10
<PAGE>

                           (ii) The Company shall offer for  subscription to the
holders of its Common Stock any  additional  shares of stock of any class or any
other  securities  convertible  into shares of stock or any rights to  subscribe
thereto; or

                           (iii) There shall be any  capital  reorganization  or
reclassification  of the  capital  stock  of the  Company,  or a sale  of all or
substantially all of the assets of the Company,  or a consolidation or merger of
the Company with another  corporation  (other than a merger with a subsidiary in
which  merger of the Company is the  continuing  corporation  and which does not
result in any reclassification); or

                           (iv)  There  shall  be  a  voluntary  or  involuntary
dissolution; liquidation or winding-up of the Company;

                  then,  in any one or more of said  cases,  the  Company  shall
cause  to be  mailed  to the  registered  holder  of this  Note at the  earliest
practicable time (and, in any event not less than 20 days before any record date
or other date set for  definitive  action),  written notice of the date on which
the  books  of the  Company  shall  close or a  record  shall be taken  for such
dividend,   distribution   or  subscription   rights  or  such   reorganization,
reclassification,  sale,  consolidation,  merger or dissolution,  liquidation or
winding-up  shall take place,  as the case may be.  Such  notice  shall also set
forth such facts as shall indicate the effect of such action (to the extent such
effect may be known at the date of such notice) on the Conversion  Price and the
kind and  amount  of the  shares  of stock and  other  securities  and  property
deliverable upon the conversion of this Note. Such notice shall also specify the
date as of which the holders of the Common Stock of record shall  participate in
said  dividend,  distribution  or  subscription  rights or shall be  entitled to
exchange their Common Stock for securities or other  property  deliverable  upon
such   reorganization,   reclassification,   sale,   consolidation,   merger  or
dissolution, liquidation or winding-up, as the case may be.

Nothing  herein  shall be construed as the consent of the holder of this Note to
any action otherwise  prohibited by the terms of this Note or as a waiver of any
such prohibition.

         7. AMENDMENTS AND WAIVERS.

                  A.  The  provisions  of this  Note  may  from  time to time be
amended,  modified or waived,  if such  amendment,  modification or waiver is in
writing and  consented to by the Company and the holders of not less than 50% in
principal amount of the Notes (the "Required Holders");  PROVIDED, HOWEVER, that
no such amendment, modification or waiver:

                           (i) which would  modify this  Section 7A,  change the
definition  of "Required  Holders",  extend the  Maturity  Date for more than 90
days, or subject the Payee under each Note to any additional  obligations  shall
be made without the consent of the Payee of each Note, or

                           (ii)  which would reduce the amount of any payment or
prepayment of principal of or interest on any Principal Amount payable hereunder
(or reduce the Principal

                                       11
<PAGE>

Amount of or rate of  interest  payable  hereunder)  shall be made  without  the
consent of the holder of each Note so affected.

                  B. No failure or delay on the part of the Payee in  exercising
any power or right under this Note shall operate as a waiver thereof,  nor shall
any single or partial  exercise of any such power or right preclude any other or
further  exercise thereof or the exercise of any other power or right. No notice
to or demand on the Company in any case shall entitle it to any notice or demand
in similar or other  circumstances.  No waiver or approval  by the Payee  shall,
except as may be otherwise  stated in such waiver or approval,  be applicable to
subsequent  transactions.  No waiver or  approval  hereunder  shall  require any
similar or dissimilar waiver or approval thereafter to be granted hereunder.

                  C.  INVALIDATION.  To the  extent  that  the  Company  makes a
payment or  payments  to the Payee,  and such  payment or  payments  or any part
thereof are subsequently for any reason  invalidated,  set aside and/or required
to be repaid by a trustee, receiver or any other party under any bankruptcy law,
state or federal law, common law or equitable cause,  then to the extent of such
recovery,  the obligation or part thereof  originally  intended to be satisfied,
and all rights and remedies  therefore,  shall be revived and  continued in full
force and effect as if such  payment  had not been made or such  enforcement  or
setoff had not occurred.

                  D. MAILING.  After any waiver,  amendment or supplement  under
this section  becomes  effective,  the Company  shall mail to the holders of the
Notes a copy thereof.

         8. MISCELLANEOUS.

                  A. REGISTERED HOLDER. The Company may reconsider 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. In case of transfer
of this Note by operation of law, the transferee agrees to notify the Company of
such transfer and of its address,  and to submit appropriate  evidence regarding
such 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 attorney, on the surrender hereof, duly endorsed. Communications
sent to any  registered  owner  shall be  effective  as against  all holders and
transferees of the Note not registered at the time of sending the communication.

                  B. GOVERNING LAW. This Note shall be governed by and construed
in accordance with the laws of the State of New York. Sections 5-1401 and 5-1402
of the  General  Obligations  Law of the State of New York shall apply this Note
and the Company hereby waives any right to stay or dismiss on the basis of FORUM
NON CONVENIENS  any action or proceeding  brought before the courts of the State
of New York  sitting in New York  County or of United  States of America for the
Southern  District of New York and hereby  submits to the  jurisdiction  of such
courts.

                  C. NOTICES.  All notices required or permitted under this Note
shall be given in accordance with the Subscription Agreement.

                                       12
<PAGE>

                  D.  WAIVER OF JURY  TRIAL.  THE PAYEE AND THE  COMPANY  HEREBY
KNOWINGLY,  VOLUNTARILY  AND  INTENTIONALLY  WAIVE ANY RIGHTS THEY MAY HAVE TO A
TRAIL BY JURY IN RESPECT OF ANY  LITIGATION  BASED  HEREON,  OR ARISING  OUT OF,
UNDER,  OR IN  CONNECTION  WITH,  THIS NOTE OR ANY OTHER  DOCUMENT OR INSTRUMENT
EXECUTED AND DELIVERED IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT,  COURSE
OF DEALING  STATEMENTS  (WHETHER VERBAL OR WRITTEN),  OR ACTIONS OF THE PAYEE OR
THE COMPANY.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PAYEE'S PURCHASING
THIS NOTE.

         IN WITNESS  WHEREOF,  the  Company has caused this Note to be signed in
its name by its duly authorized officer.

         FUSION TELECOMMUNICATIONS INTERNATIONAL, INC.

         By________________________________
           Name:  Dale M. Gregory
           Title: President

                                       13Exhibit 10.20

                                   DEMAND NOTE

New York, New York
January 31, 2003

                                                                      $10,183.20

                  ON  DEMAND,  for  value  received,  Fusion  Telecommunications
International, Inc., a Delaware corporation ("Fusion"), whose principal place of
business is 420 Lexington Avenue, Suite 518, New York, New York 10170,  promises
to pay Philip D. Turits, a resident of the State of New York ("Lender"), the sum
of TEN THOUSAND ONE HUNDRED  EIGHTY-THREE  AND 10/100  DOLLARS  ($10,183.20)  in
lawful  money of the  United  States of  America  or such  lesser  sum as may be
demanded hereunder. This Demand Note is being executed and delivered outside the
State of Florida.

                  Fusion  shall pay interest on the amount due under this Demand
Note and on overdue interest payments hereunder at a rate equal to the lesser of
(a) 4.75% per annum and (b) the maximum rate permissible  under applicable usury
or similar laws limiting interest rates, said interest to be payable  quarterly,
beginning  March 31,  2003.  This payment rate shall be computed on the basis of
the actual number of days elapsed over a year of 360 days.

                  If the  indebtedness  represented  by this Demand Note, or any
part thereof, is collected at law or in equity or in bankruptcy, receivership or
other court proceedings, or this Demand Note is placed in the hands of attorneys
for collection,  Fusion agrees to pay, in addition to the principal and interest
(if any) due under this Demand Note, reasonable attorneys' and collection fees.

                  The undersigned waives demand, presentment for payment, notice
of nonpayment,  protest,  notice of dishonor and protest, notice of intention to
accelerate,  notice of acceleration,  and all other notices,  filing of suit and
diligence  in  collecting  this  Demand  Note and  agrees  to any  substitution,
exchange  or release of any such  security  or the  release of any party  liable
hereon and further  agrees that it will not be necessary for any holder  hereof,
in order to enforce  payment of this Demand Note by it, to first  institute suit
or exhaust  its  remedies  against  Fusion,  and  consents to any  extension  or
postponement of time of payment of this Demand Note or any other indulgence with
respect hereto, without notice thereof.

                  The undersigned hereby irrevocably submits to the jurisdiction
of the United States  District  Court for the Southern  District of New York and
any  court  in the  State of New  York  located  in the City of New York and the
County of New York,  and any  appellate  court from any thereof,  in any action,
suit or proceeding brought against it in connection with this Demand Note or for
the recognition or enforcement of any judgment.  The  undersigned  hereto agrees
that a final judgment in any such action, suit or proceeding shall be conclusive
and may

<PAGE>

be  enforced  in other  jurisdictions  by suit on the  judgment  or in any other
manner  provided  by  law.  To the  extent  permitted  by  applicable  law,  the
undersigned  hereby  waives  and  agrees  not to assert by way of  motion,  as a
defense or otherwise in any such suit,  action or proceeding,  any claim that it
is not personally  subject to the  jurisdiction  of such courts,  that the suit,
action or proceeding is brought in an inconvenient  forum, that the venue of the
suit,  action or  proceeding  is  improper  or that the  Demand  Note may not be
litigated in or by such courts.

                  To the extent  permitted by  applicable  law, the  undersigned
agrees that it shall not seek and hereby  waives the right to seek any review of
the judgment of any such court by any court of any other nation or  jurisdiction
which may be called upon to grant an enforcement of such judgment.

                  The undersigned hereby irrevocably agrees that the summons and
complaint or any other process in connection with this Demand Note may be served
by mailing to the  address  set forth  below or by hand  delivery to a person of
suitable age and discretion at the address set forth below. Such service will be
complete on the date such process is so mailed or delivered, and the undersigned
will have thirty days from such completion of service in which to respond in the
manner  provided by law. The  undersigned may also be served in any other manner
permitted by law, in which event the undersigned's  time to respond shall be the
time provided by law.

                  The  amounts  hereunder  shall  not  be  subject  in  any  way
whatsoever  to  offset,  setoff,  counterclaim  or other  deduction  of any kind
whatsoever.

                  THE UNDERSIGNED  HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED
BY LAW,  ANY  RIGHT  TO A TRIAL BY JURY IN  RESPECT  OF ANY  LITIGATION  ARISING
DIRECTLY OR INDIRECTLY OUT OF, UNDER OR IN CONNECTION WITH THIS DEMAND NOTE. THE
UNDERSIGNED  HERETO (A) CERTIFIES THAT NO  REPRESENTATIVE,  AGENT OR ATTORNEY OF
ANY PARTY HERETO HAS REPRESENTED,  EXPRESSLY OR OTHERWISE, THAT IT WOULD NOT, IN
THE  EVENT  OF  LITIGATION,  SEEK  TO  ENFORCE  THE  FOREGOING  WAIVER  AND  (B)
ACKNOWLEDGES  THAT IT HAS BEEN ADVISED BY LENDER THAT LENDER HAS BEEN INDUCED TO
ACCEPT THIS DEMAND NOTE BY, AMONG OTHER THINGS, THIS WAIVER.

<PAGE>

                  This Demand Note shall be  governed  by, and for all  purposes
construed in accordance  with, the laws of the State of New York (except for its
conflict of laws rules).

                             FUSION TELECOMMUNICATIONS INTERNATIONAL, INC.
                             420 Lexington Avenue
                             Suite 518
                             New York, New York 10170

                             -------------------------------------
                             Name:  Matthew Rosen
                             Title: Chief Operating Officer

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