July 24, 2007

July 24, 2007

Megola Inc. (Megola) and Pacific Channel Ltd. (PCL) acknowledge that PCL has fulfilled all loan obligations on Xxxxxx’s behalf to FireStop USA, LLC (Note and Security Agreement dated February 9, 2007) in their entirety.

As a result Megola and PCL have entered into a Note and Security Agreement as of July 24, 2007.

Megola, Inc.     By: /s/Xxxx Xxxxxxx, President Xxxx Xxxxxxx, President Pacific Channel Ltd.     By: /s/ Lusmiati Marsudidjaja Lusmiati Marsudidjaja