LOAN AGREEMENT AND STOCK PURCHASE AGREEMENT
Exhibit
4.11
AND
STOCK
PURCHASE AGREEMENT
THIS
LOAN AGREEMENT (this "Agreement") dated this 31st
day of October, 2006
BETWEEN:
Xx.
Xxxxxxx Xxxxxxx of 000 Xxxxxxxxxx XX., Xxxxxxxx, XX 00000 (the
"Lender")
OF
THE FIRST PART
AND
Mega
Media Group, Inc. of 0000 Xxxxx Xxxxxx Xxxxxx, Xxxxxxxx, XX 00000
(the
"Borrower")
OF
THE
SECOND
PART
IN
CONSIDERATION OF the
Lender loaning certain monies (the "Loan") to the Borrower, and the Borrower
repaying the Loan to the Lender, both parties agree to keep, perform and fulfill
the promises and conditions set out in this Agreement:
Loan
Amount &
Interest
1. |
The
Lender promises to loan Forty Thousand, ($40,000.00 ) USD, to the
Borrower
and the Borrower promises to repay this principal amount to the Lender,
at
such address as may be provided in writing, with interest payable
on the
unpaid principal at the rate of 9.00 percent per annum, calculated
yearly
not in advance.
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Stock
Conversion Agreement
2. |
The
Lender has the right to convert the loan at anytime prior to repayment
by
the barrower to convert the loan into the common stock of the company
at
$0.30 thirty cents per share.
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3. |
Lender
has full power and authority to enter into this Stock Conversion
Agreement
and constitute the legal, valid and binding obligation of Lender
enforceable against Lender in accordance with its
terms.
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4. |
If
Lender exercises the conversion into the Shares for investment purposes
only and for Lender's own account, not as nominee or agent, and Lender
has
no present intention of selling, transferring or otherwise distributing
or
disposing of the Shares or granting any interests
therein.
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5. |
Lender
has had the opportunity to meet with management of Issuer and ask
questions about the terms and conditions of this offering and the
operations, business, finances, properties and prospects of Issuer
and all
such questions have been answered to the satisfaction of Lender.
Lender
has received all the information that such Lender considers necessary
or
appropriate for deciding whether to purchase the
Shares.
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6. |
Lender
is an investor in securities of companies in the development stage
and
such Lender is able to fend for itself or himself, can bear the economic
risk of an investment in the Shares, and has such knowledge and experience
in business and financial matters that such Lender is capable of
evaluating the merit and risks of the investment in the
Shares.
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7. |
Lender
is an "accredited investor" as such term is defined in Rule 501(a)
of
Regulation D promulgated under the Securities Act of 1933, as amended
(the
"Act"), a copy of which Rule is attached hereto as Exhibit
A.
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8. |
Lender
is aware that the Shares have not been registered under the Act.
The
Shares cannot be sold, transferred, pledged or otherwise distributed
by
Lender unless a registration statement registering the Shares under
the
Act has been filed with the Securities and Exchange Commission and
has
become effective or unless the Shares are sold or otherwise distributed
in
a transaction in respect of which Issuer has previously received
an
opinion, satisfactory to Issuer, stating that such registration is
not
required.
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9. |
Issuer
may prevent transfer and registration of transfer of the Shares unless
Issuer shall have received an opinion from counsel satisfactory to
it to
the effect that any such transfer would not violate the Act of the
applicable laws of any state.
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10. |
In
the event of conversion Issuer shall cause each stock certificate
evidencing the Shares to bear the following
legend:
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"These
securities have not been registered under the Securities Act of 1933, as amended
(the "Act"). These securities may not be sold, offered for sale, pledged or
hypothecated in the absence of a registration statement in effect with respect
to such securities under such Act or an opinion of counsel satisfactory to
the
Company that such registration is not required."
Payment
11. |
This
Loan will be repaid in full 12 months from the execution of this
Agreement.
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Default
12. |
Notwithstanding
anything to the contrary in this Agreement, if the Borrower defaults
in
the performance of any obligation under this Agreement, then the
Lender
may declare the principal amount owing and interest due under this
Agreement at that time to be immediately due and
payable.
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Governing
Law
13. |
This
Agreement will be construed in accordance with and governed by the
laws of
theStateofNewYork.
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Costs
14. |
All
costs, expenses and expenditures including, without limitation, the
complete legal costs incurred by enforcing this Agreement as a result
of
any default by the Borrower, will be added to the principal then
outstanding and will immediately be paidbytheBorrower.
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Assignment
15. |
This
Agreement will pass to the benefit of and be binding upon the respective
heirs, executors, administrators, successors and assigns of the Borrower.
The Borrower waives presentment for payment, notice of non-payment,
protest, and noticeofprotest.
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Amendments
16. |
This
Agreement may only be amended or modified by a written instrument
executedbyboththeBorrowerandtheLender.
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Severability
17. |
The
clauses and paragraphs contained in this Agreement are intended to
be read
and construed independently of each other. If any part of this Agreement
is held to be invalid, this invalidity will not affect the operation
of
any other part of this Agreement.
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General
Provisions
18. |
Headings
are inserted for the convenience of the parties only and are not
to be
considered when interpreting this Agreement. Words in the singular
mean
and include the plural and vice versa. Words in the masculine mean
and
include the feminineandviceversa.
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Entire
Agreement
19. |
This
Agreement constitutes the entire agreement between the parties and
there
are no further items or provisions, either oral or
otherwise.
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IN
WITNESS WHEREOF, the
parties have duly affixed their signatures under hand and seal on this 315
day
of October, 2006.
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/s/
Xx.
Xxxxxxx Xxxxxxx
Xx.
Xxxxxxx Xxxxxxx
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Mega
Media Group Inc
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By:
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/s/ Xxxxxxxxx
Xxxxxxx
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Xxxxxxxxx Xxxxxxx |
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