July 24, 2007

July 24, 2007

Megola Inc. (Megola) and Pacific Channel Ltd. (PCL) acknowledge that PCL has fulfilled all loan obligations on ▇▇▇▇▇▇’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/▇▇▇▇ ▇▇▇▇▇▇▇, President ▇▇▇▇ ▇▇▇▇▇▇▇, President Pacific Channel Ltd.     By: /s/ Lusmiati Marsudidjaja Lusmiati Marsudidjaja