Document:

Exhibit
      10.1

    AGREEMENT

     

    This
      Agreement (this “Agreement”),
      dated
      as of March 19, 2007, is entered into by and between CenterStaging Corp., a
      Delaware corporation, with headquarters located at 3407 Winona Avenue, Burbank,
      California 91504 (the “Company”),
      and
      Montage Partners III, LLC, a Nevada limited liability company (the “Investor”),
      with
      reference to the following facts:

     

    A. The
      Investor and the Company are parties to that certain Securities Purchase
      Agreement dated December 12, 2005 (the “Purchase
      Agreement”),
      pursuant to which, among other things, the Company issued and sold to the
      Investor: (i) that certain 6% Secured Debenture, in the principal amount of
      $500,000 (the “Debenture”)
      convertible into shares of common stock, $0.0001 par value per share of the
      Company (the “Common
      Stock”),
      at a
      conversion price of $1.50 per share; and (ii) the Common Stock Purchase Warrants
      (the “Warrants”)
      to
      purchase up to 380,000 shares of Common Stock for an exercise price of $1.60
      per
      share, secured by certain assets of the Company pursuant to the Security
      Agreement (the “Security
      Agreement”)
      dated
      December 12, 2005 by and between the Company and Investor;

     

    B. The
      Company and the Investor are parties to that certain Registration Rights
      Agreement dated December 12, 2005 (the “Registration
      Rights Agreement”)
      which
      was entered into concurrently with the Purchase Agreement;

     

    C. The
      full
      entire balance of accrued interest and principal under the Debenture is past
      due
      and immediately payable and Investor has to date forbeared on issuing a notice
      of default relating thereto; and

     

    D. Investor
      has agreed to further forbear on issuing a notice of default and to exercise
      certain of its other rights and remedies, pursuant to the terms hereof,
      including the amendment of the Debenture, the Warrants and the Registration
      Rights Agreement.

     

    NOW
      THEREFORE, in consideration of the premises and the mutual covenants contained
      herein and other good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the parties agree as follows:

     

    1. Forbearance
      Period.
      At the
      request of the Company, and subject to the terms of this Agreement, Investor
      agrees to forbear from the exercise of its rights and remedies, whether under
      the Transaction Documents, at law or in equity, available to Investor commencing
      on the date hereof (the “Forbearance
      Period”)
      and
      terminating on the earlier to occur of (a) 5:00 PM Los Angeles time on July
      31,
      2007 (the “Expiration
      Date”),
      or
      (b) a termination in accordance with Section 14.2 of this Agreement. In no
      event, however, shall the Forbearance Period continue past the Expiration
      Date.

     

    “Transaction
      Documents”
shall
      mean this Agreement, the Purchase Agreement the Amended Debenture, the Amended
      Warrants, the Amended Registration Rights Agreement and the Security
      Agreement.

     

    2. Amendment
      of the Debenture. The
      Company and Investor have concurrently entered into amended the original
      Debenture by an Amended and Restated Debenture (the “Amended
      Debenture),
      which
      shall remain fully secured by the Security Agreement without the necessity
      of an
      amendment thereto. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. Agreement
      of the Warrants.
      The
      Company and the Investor have concurrently amended the Warrants by Amended
      and
      Restated Warrants (the “Amended
      Warrants”),
      and
      the Investor has surrendered the original certificate evidencing the
      Warrants.

     

    4. Agreement
      to Amend and Restate the Registration Rights Agreement.
      The
      Company and the Investor have concurrently entered into an Amended and Restated
      Registration Rights Agreement (the “Amended
      Registration Rights Agreement”).
      The
      Investor hereby waives any and all penalties that shall have accrued pursuant
      to
      Section 2(b) of the Registration Rights Agreement (prior to its
      modification).

     

    5. Acknowledgments
      by Company.
      Company
      hereby acknowledges the following:

     

    5.1.1 The
      recitals set forth in paragraphs
      A through D
      above
      are true and correct;

     

    5.1.2 That
      on
      and as of March 12, 2007, (i) Company is indebted to Investor for the following
      amounts: (A) principal under the Amended Debenture in the amount of $500,000,
      and (B) interest under the Amended Debenture in the amount of $46,071.06 (see
      Exhibit A hereto for the calculation of the outstanding principal and interest
      set forth herein, which calculation includes the payment made concurrently
      herewith as identified in Section 8 hereof); (ii) all such amounts remain
      outstanding and unpaid; and (iii) all such amounts are due and immediately
      payable in full, without offset, deduction or counterclaim of any kind or
      character whatsoever, but are subject to increase, decrease or other adjustment
      as a result of any and all payments, accrued interest, fees and other charges
      including, without limitation, attorneys’ fees and costs of collection (accruing
      after the date hereof), which are payable to Investor under the Transaction
      Documents;

     

    5.1.3 That
      the
      Amended Debenture and all other liabilities and obligations of Company to
      Investor under the Transaction Documents shall, except as expressly modified
      hereby, remain in full force and effect, and shall not be released, impaired,
      diminished or in any other way modified or amended as a result of the execution
      and delivery of this Agreement or by the agreements and undertakings of the
      parties contained herein.

     

    6. Loan
      Fees.
      The
      Company shall pay to Investor a loan extension fee in the aggregate amount
      of
      $50,000 as follows: (i) $20,000 on the date of this Agreement and (ii) $30,000
      on or before April 9, 2007, as payment for Investor agreeing to not declare
      a
      default, or seek any remedies available upon an Event of Default under the
      Amended Debenture pursuant to Section 1 of this Agreement. 

     

    7. Issuance
      of Stock.
      The
      Company has concurrently herewith issued to Investor 75,000 shares of Common
      Stock (the “Shares”).

     

    8. Payment
      of Interest.
      No
      later than April 9, 2007, the Company shall pay to the Investor all interest
      accrued under the Debenture in the amount set forth in Section 5.1.2(B) of
      this Agreement.

     

    
      
        
        

      

      
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    9. Penalty
      Payment.
      In the
      event the shares of Common Stock issuable upon conversion of the Amended
      Debenture and exercise of Amended Warrants are not salable by Investor pursuant
      to Rule 144 promulgated under the Securities Act of 1933, as amended (the
“Securities
      Act”),
      as a
      result of the Company’s failure to maintain current public filings as required
      by Rule 144(c) for more than five business days, and such shares are not then
      covered by an effective registration statement under the Securities Act (a
      “Penalty
      Date”)
      or are
      salable under Rule 144(k), the Company shall pay Investor a penalty in the
      amount equal to $10,000, and shall pay an additional $10,000 at the end of
      each
      monthly anniversary of the Penalty Date that such shares are neither covered
      by
      such registration statement nor salable under Rule 144 as a result of the
      Company’s failure to maintain current public filings as required by Rule 144(c)
      nor salable under Rule 144(k). Such penalty shall be paid to the Investor by
      the
      Company in cash or other immediately available funds within five business day
      after such penalty is incurred. In no event shall Investor be entitled to more
      than one penalty payment for any 30-day period. The parties acknowledge that
      the
      damages which may be incurred by the Investor in the event the shares of Common
      Stock issuable upon conversion of the Amended Debenture and exercise of Amended
      Warrants are not salable by Investor pursuant to Rule 144 may be difficult
      to
      ascertain. The parties agree that the penalty payment set forth in this Section
      9 represents a reasonable estimate on the part of the parties, as of the date
      of
      this Agreement, of the amount of such damages. The penalty payment as set forth
      in this Section 9 to the Investor shall not limit the Investor’s other rights
      and remedies under the Transaction Documents.

     

    10. Investor
      Representations, Warranties, etc.; Access to Information; Independent
      Investigation.

     

    Investor
      represents and warrants to, and covenants and agrees with, the Company as
      follows:

     

    10.1 Investment
      for Own Account.
      Without
      limiting the Investor’s right to sell the Shares pursuant to the Registration
      Statement (as the term is defined in the Amended Registration Rights Agreement),
      the Investor is acquiring the Shares for its own account for investment, and
      not
      with a view towards the public sale or distribution thereof and not with a
      view
      to or for sale in connection with any distribution thereof. 

     

    10.2 Accredited
      Investor.
      The
      Investor and each of its members is (i) an “accredited investor” as that term is
      defined in Rule 501 of the General Rules and Regulations under the Securities
      Act by reason of Rule 501(a)(3), (ii) experienced in making investments of
      the
      kind described in this Agreement and the related documents, (iii) able, by
      reason of the business and financial experience of its officers (if an entity)
      and professional advisors (who are not affiliated with or compensated in any
      way
      by the Company or any of its affiliates or selling agents), to protect its
      own
      interests in connection with the transactions described in this Agreement,
      and
      the related documents, and (iv) able to afford the entire loss of its investment
      in the Securities.

     

    10.3 Subsequent
      Securities Sales.
      All
      subsequent offers and sales of the Shares by the Investor shall be made pursuant
      to registration of the foregoing securities under the Securities Act or pursuant
      to an exemption from registration.

     

    10.4 Reliance
      on Investor’s Representations.
      The
      Investor understands that the Shares are being issued to it in reliance on
      specific exemptions from the registration requirements of United States federal
      and state securities laws and that the Company is relying upon the truth and
      accuracy of, and the Investor’s compliance with, the representations,
      warranties, agreements, acknowledgments and understandings of the Investor
      set
      forth herein in order to determine the availability of such exemptions and
      the
      eligibility of the Investor to acquire the Shares.

     

    
      
        
        

      

      
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    10.5 Access
      to Information.
      The
      Investor and its advisors, if any, have been furnished with all materials
      relating to the business, finances and operations of the Company and materials
      relating to the issuance of the Shares that have been requested by the Investor.
      The Investor and its advisors, if any, have been afforded the opportunity to
      ask
      questions of the Company and have received complete and satisfactory answers
      to
      any such inquiries. 

     

    10.6 Acknowledgement
      of Risk.
      The
      Investor understands that its investment in the Shares involves a high degree
      of
      risk.

     

    10.7 No
      Governmental Agency Approval of Securities.
      The
      Investor understands that no United States federal or state agency or any other
      government or governmental agency has passed on or made any recommendation
      or
      endorsement of the Shares.

     

    10.8 Authorizations.
      The
      Transaction Documents and the transactions contemplated thereby have been duly
      and validly authorized by the Investor; and this Agreement and the Amended
      Registration Rights Agreement have been duly executed and delivered by the
      Investor; and the Transaction Documents are valid and binding agreements of
      the
      Investor enforceable in accordance with their respective terms, subject, as
      to
      enforceability, to general principles of equity and to bankruptcy, insolvency,
      moratorium, and other similar laws affecting the enforcement of creditors’
rights generally. The Investor is a limited liability company duly organized,
      validly existing and in good standing under the laws of Nevada and has requisite
      corporate power to own its properties and to carry on its business as now being
      conducted.

     

    11. Company
      Representations 

     

    The
      Company represents and warrants and hereby covenants and agrees with Investor
      that:

     

    11.1 The
      Shares.
      The
      Shares have been duly authorized and are validly issued, fully paid and
      non-assessable and will not subject the holder thereof to personal liability
      by
      reason of being such holder. There are no preemptive rights under applicable
      law
      of any stockholder of the Company, as such, to acquire the Shares. 

     

    11.2 Transaction
      Agreements.
      The
      Transaction Documents and the transactions contemplated thereby have been duly
      and validly authorized by the Company; the Transaction Documents have been
      duly
      executed and delivered by the Company; and the Transaction Documents are valid
      and binding agreements of the Company enforceable in accordance with their
      respective terms, subject, as to enforceability, to general principles of equity
      and to bankruptcy, insolvency, moratorium, and other similar laws affecting
      the
      enforcement of creditors’ rights generally. 

     

    
      
        
        

      

      
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    11.3 Financial
      Representation.
      As of
      January 31, 2007, the Company had accounts receivable of $458,518.

     

    11.4 Prior
      Representations.
      Except
      as set forth in the Company’s filings with the Securities and Exchange
      Commission (the “SEC”),
      all
      representations and warranties set forth in Section 3 of the Purchase Agreement
      are true and correct in all material respects as of the date of its latest
      filing with the SEC.

     

    11.5 Pending
      Actions.
      To the
      best of Company’s knowledge, there is no action, suit or proceeding before any
      court, governmental authority or arbitrator pending or threatened in writing
      against or affecting the Company that would, if adversely determined, have
      a
      material adverse effect on the transactions described in this
      Agreement;

     

    11.6 Reliance.
      Company
      hereby agrees that the truthfulness of each of the foregoing representations
      and
      warranties is a condition precedent to the performance by Investor of its
      obligations hereunder.

     

    12. Release

     

    12.1 As
      used
      in this Release, the following terms shall have the meanings set forth
      below:

     

    “Claims”
shall
      mean any and all claims, counterclaims, demands, actions, causes of actions,
      suits, debts, costs, dues, sums of money, accounts, bonds, bills, specialties,
      covenants, contracts, controversies, agreements, promises, variances,
      trespasses, damages, judgments, executions, expenses and liabilities whatsoever,
      known or unknown, at law or in equity, irrespective of whether such claims
      arise
      out of contract, tort, violation of laws or regulations or otherwise, which
      the
      Company (hereafter in this Section 12 the “Releasor”)
      ever
      had, now has or hereafter can, shall or may have against the Released Parties
      (as defined below) or any of them for, upon, or by reason of any matter, cause
      or thing whatsoever from the beginning of the world to and including the date
      of
      this Release relating to the Transaction Documents. Without limiting the
      generality of the foregoing, the term “Claims”
shall
      include, without limitation, any loss, liability, expense and/or detriment,
      of
      any kind or character, in any way arising out of, connected with, or resulting
      from the acts or omissions of the Released Parties or any of them, including,
      without limitation, the contracting for, charging, taking, reserving, collecting
      or receiving interest in excess of the highest lawful rate, any breach of
      fiduciary duty, breach of any duty of fair dealing, breach of confidence, cause
      of action or defenses based on the negligence of Investor of any
“Investor/Lender liability” theories, breach of funding commitment, undue
      influence, duress, economic coercion, conflict of interest, negligence, bad
      faith, malpractice, violations of the Racketeer Influenced and Corrupt
      Organizations Act, intentional or negligent infliction of mental distress,
      tortious interference with contractual relations, tortious interference with
      corporate governance or prospective business advantage, breach of contract,
      fraud, mistake, deceptive trade practices, libel, slander, conspiracy, or any
      claim for wrongfully taking any action in connection with the Transaction
      Documents and the loan evidenced thereby.

     

    “Released
      Parties”
shall
      mean Investor, any subsidiary or affiliate of Investor and any successors,
      or
      assigns of any of the foregoing, and the respective agents, trustees,
      beneficiaries, officers, directors, shareholders, attorneys, employees,
      independent contractors, partners, members, manager and representatives of
      any
      of the foregoing.

     

    
      
        
        

      

      
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    12.2 Releasor
      hereby irrevocably and unconditionally REMISES, RELEASES, ACQUITS, SATISFIES,
      WAIVES, and FOREVER DISCHARGES the Released Parties and their respective heirs,
      personal representatives, successors and assigns from all Claims.

     

    12.3 This
      Release is accepted by the Released Parties as a condition to executing this
      Agreement and Releasor expressly agrees that this Release survives the
      termination of this Agreement.

     

    12.4 Releasor
      hereby represents and warrants to the Released Parties that it has not assigned,
      pledged, or contracted to assign or pledge or otherwise disposed of any of
      the
      Claims.

     

    12.5 This
      Release shall be binding upon Releasor and its legal representatives, successors
      and assigns and shall inure to the benefit of the Released Parties and their
      successors and assigns.

     

    12.6 This
      Release includes a release of, and shall inure to the benefit of, all the
      Released Parties and their respective heirs, legal representatives, successors,
      assigns, directors, trustees, officers, agents, servants, employees and
      attorneys, past, present and future.

     

    12.7 TO
      THE
      EXTEND PERMITTED BY APPLICABLE LAW, RELEASOR DOES HEREBY INTENTIONALLY,
      KNOWINGLY, VOLUNTARILY, UNCONDITIONALLY AND IRREVOCABLY WAIVE ITS RIGHT TO
      A
      TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF,
      UNDER OR IN CONNECTION WITH THIS RELEASE (INCLUDING, WITHOUT LIMITATION, ANY
      ACTION TO RESCIND OR CANCEL THIS RELEASE OR ANY CLAIMS OR DEFENSES ASSERTING
      THAT THIS RELEASE WAS FRAUDULENTLY INDUCED OR IS OTHERWISE VOID OR VOIDABLE).
      THE FOREGOING WAIVER BY RELEASOR IS A MATERIAL INDUCEMENT FOR THE RELEASED
      PARTIES TO ACCEPT THIS RELEASE AND ENTER INTO THE FORBEARANCE ARRANGEMENT
      PURSUANT TO THIS AGREEMENT.

     

    12.8 Releasor
      hereby agrees, represents and warrants that it has had advice of counsel of
      its
      own choosing in negotiations for and the preparation of this Release, that
      it
      has read the provisions of this Release, and that it is fully aware of its
      contents and legal effect. Releasor hereby acknowledge that it has not relied
      upon any representation of any kind made by the Released Parties in making
      the
      foregoing release.

     

    12.9
       Releasor
      acknowledge that they are familiar with Section 1542 of the Civil Code of the
      State of California, which provides as follows:

    

    “A
      general release does not extend to claims which the creditor does not know
      or
      suspect to exist in his favor at the time of executing the release, which if
      known by him must have materially affected his settlement with the
      debtor.”

     

    
      
        
        

      

      
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Each
      of
      the Releasor hereby waives any and all rights and benefits that it now has
      or in
      the future may have under Section 1542 of the Civil Code (and under the
      comparable provisions of any other applicable law) and agrees and acknowledges
      that this Agreement contains a full and final release applying to unknown and
      unanticipated claims, injuries or damages arising out of the subject matter
      of
      the released Claims.

    

    _______________(Initial)

    

    13. Usury
      Savings Clause.
      Notwithstanding anything to the contrary contained elsewhere in this Agreement,
      Investor and Company hereby agree that all agreements between them under this
      Agreement and with respect to the Debenture and the Transaction Documents,
      whether now existing or hereafter arising and whether written or oral, are
      expressly limited so that in no contingency or event whatsoever shall the amount
      paid, or agreed to be paid, to Investor for the use, forbearance, or detention
      of the money loaned to Company, or for the performance or payment of any
      covenant or obligation contained herein or therein, exceed the maximum rate
      of
      interest under applicable law (the “Maximum
      Rate”).
      If
      from any circumstance whatsoever, fulfillment of any provisions of this
      Agreement at the time performance of such provisions shall be due shall involve
      transcending the limit of validity prescribed by law, then, automatically,
      the
      obligation to be fulfilled shall be reduced to the limit of such validity,
      and
      if from any such circumstance Investor should ever receive anything of value
      deemed interest by applicable law which would exceed the Maximum Rate, such
      excessive interest shall be applied to the reduction of the principal amount
      owing with respect to the Debenture or Transaction Documents or on account
      of
      the other indebtedness secured by the Transaction Documents and not to the
      payment of interest, or if such excessive interest exceeds the unpaid principal
      balance of the Debenture and such other indebtedness, such excess shall be
      refunded to Company. All sums paid or agreed to be paid to Investor for the
      use,
      forbearance, or detention of the Debenture and other indebtedness of Company
      to
      Investor shall, to the extent permitted by applicable law, be amortized,
      prorated, allocated and spread throughout the full term of such indebtedness
      until payment in full so that the actual rate of interest on account of all
      such
      indebtedness is uniform throughout the actual term (as extended by amendments,
      forbearance agreements and/or otherwise) of the Debenture or does not exceed
      the
      Maximum Rate throughout the entire term of the Debenture. The terms and
      provisions of this Section
      13 shall
      control every other provision of this Agreement and all other agreements between
      Company and Investor.

     

    14. Breach
      or Default.
      

     

    14.1 The
      following shall constitute an immediate “Default”
under
      this Agreement:

     

    14.1.1 Company
      breaches or fails in any material respect to comply with this
      Agreement;

     

    14.1.2 Any
      material representation or warranty made by the Company in this Agreement is
      false or misleading in any material respect at the time made;

     

    
      
        
        

      

      
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    14.1.3 Company
      files for bankruptcy or seeks approval of a plan of reorganization prior to
      the
      Expiration Date or during the Forbearance Period to which Investor has not
      consented in writing; and

     

    14.1.4 Company
      fails to honor legal opinion delivered by Investor pursuant to Section
      15.1.1.

     

    14.2 Upon
      a
      Default by the Company under this Agreement or a
      breach
      of the Amended Debenture or the occurrence of any other event which is set
      forth
      in Sections 14(a) through (d) and Sections 14(f) through (m) of the Amended
      Debenture (which would constitute an Event of Default under the Amended
      Debenture with the appropriate notice thereunder or without notice, as the
      case
      may be),
      the
      Forbearance Period shall automatically terminate and the Investor, at its sole
      option, may immediately exercise its rights and remedies under the Transaction
      Documents and applicable law without providing notice and opportunity to cure
      to
      the Company pursuant to this Agreement, subject to the Company’s rights to
      notice and opportunity to cure otherwise provided in the Amended
      Debenture.

     

    15. Certain
      Covenants and Acknowledgments

     

    15.1 Transfer
      Restrictions.
      The
      Investor acknowledges that:

     

    15.1.1 the
      Shares have not been and are not being registered under the Securities Act
      of
      1933, as amended (the “Securities
      Act”),
      and
      may not be transferred unless (a) subsequently registered thereunder or (b)
      the
      Investor shall have delivered to the Company an opinion of counsel rendered
      by a
      reputable securities law firm which is independent and unaffiliated with the
      Investor (the cost of which shall be reimbursed by the Company to the Investor
      up to $600), reasonably satisfactory in form, scope and substance to the
      Company, to the effect that the Shares to be sold or transferred may be sold
      or
      transferred pursuant to an exemption from such registration pursuant to Rule
      144
      of the Securities Act;

     

    15.1.2 any
      sale
      of the Shares made in reliance on Rule 144 promulgated under the Securities
      Act
      may be made only in accordance with the terms of said Rule and further, if
      said
      Rule is not applicable, any resale of such Securities under circumstances in
      which the seller, or the person through whom the sale is made, may be deemed
      to
      be an underwriter, as that term is used in the Securities Act, may require
      compliance with some other exemption under the Securities Act or the rules
      and
      regulations of the Securities and Exchange Commission thereunder;
      and

     

    15.1.3 neither
      the Company nor any other person is under any obligation to register the Shares
      (other than pursuant to the Amended Registration Rights Agreement) under the
      Securities Act or to comply with the terms and conditions of any exemption
      thereunder.

     

    15.2 Restrictive
      Legend.
      The
      Investor acknowledges and agrees that until such time as the Shares have been
      registered under the Securities Act as contemplated by the Amended Registration
      Rights Agreement and sold pursuant to an effective Registration Statement,
      certificates and other instruments representing any of the Shares shall bear
      a
      restrictive legend in substantially the following form (and a stop-transfer
      order may be placed against transfer of any such Shares):

     

    
      
        
        

      

      
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    THESE
      SECURITIES (THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
      OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES
      LAWS AND MAY NOT BE SOLD, PLEDGED OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE ACT OR UNLESS AND EXEMPTION
      FROM SUCH REGISTRATION IS AVAILABLE, AS EVIDENCED BY AN OPINION OF COUNSEL
      TO
      THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
      ACCEPTABLE TO THE ISSUER OF THESE SECURITIES. 

     

    15.3 Filings.
      The
      Company undertakes and agrees to make all necessary filings in connection with
      the issuance of the Shares to the Investor under any United States laws and
      regulations, or by any domestic securities exchange or trading market, and
      to
      provide a copy thereof to the Investor promptly after such filing.

     

    16. Governing
      Law; Miscellaneous

     

    16.1 This
      Agreement and all agreements entered into in connection herewith shall be
      governed by and interpreted in accordance with the laws of the State of
      California for contracts to be wholly performed in such state and without giving
      effect to the principles thereof regarding the conflict of laws. Any litigation
      based thereon, or arising out of, under, or in connection with, this Agreement
      or any course of conduct, course of dealing, statements (whether oral or
      written) or actions of the Company or the Investor shall be brought and
      maintained exclusively in the state or Federal courts of the State of
      California, sitting in the City of Los Angeles. Each Party hereby expressly
      and
      irrevocably submits to the jurisdiction of the state and federal Courts of
      the
      State of California for the purpose of any such litigation as set forth above
      and irrevocably agrees to be bound by any final judgment rendered thereby in
      connection with such litigation. Each Party further irrevocably consents to
      the
      service of process by registered mail, postage prepaid, or by personal service
      within or without the State of California. Each Party hereby expressly and
      irrevocably waives, to the fullest extent permitted by law, any objection which
      it may have or hereafter may have to the laying of venue of any such litigation
      brought in any such court referred to above and any claim that any such
      litigation has been brought in any inconvenient forum. To the extent that either
      Party has or hereafter may acquire any immunity from jurisdiction of any court
      or from any legal process (whether through service or notice, attachment prior
      to judgment, attachment in aid of execution or otherwise) with respect to itself
      or its property, such party hereby irrevocably waives such immunity in respect
      of its obligations under this Agreement and the related agreements entered
      into
      in connection herewith. Each party hereby irrevocably waives, if and to the
      full
      extent permitted by applicable law, any and all right to trial by jury in any
      legal proceeding arising out of relating to this Agreement.

     

    16.2 A
      facsimile transmission of this signed Agreement shall be legal and binding
      on
      all parties hereto. 

     

    16.3 This
      Agreement may be signed in two or more counterparts, each of which shall be
      deemed an original. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    16.4 The
      headings of this Agreement are for convenience of reference and shall not form
      part of, or affect the interpretation of, this Agreement. 

     

    16.5 This
      Agreement may be amended only by an instrument in writing signed by the party
      to
      be charged with enforcement thereof. 

     

    16.6 This
      Agreement and the Transaction Documents supersede all prior agreements and
      understandings among the parties hereto with respect to the subject matter
      hereof. 

     

    16.7 Except
      as
      otherwise set forth herein, all costs and expenses, including reasonable
      attorneys’ fees, incurred by the prevailing party in the enforcement of this
      Agreement or any agreements related thereto, shall be paid by either party
      upon
      demand.

     

    16.8 Time
      is
      of the essence as to the performance of each and every obligation of the Company
      and the Investor pursuant to this Agreement.

     

    17. Notices

     

    Any
      notice or communication required or permitted by this Agreement shall be given
      in writing addressed as follows:

     

    
      	
              Company:

            	
              CenterStaging
                Corp.

              3407
                Winona Avenue

              Burbank,
                California 91504

              Attention:
                Chief Financial Officer

              Fax:
                (818) 848-4016

            
	 	 
	 	
              with
                a copy to:

               

              Alan
                B. Spatz, Esq.

              Troy
                & Gould PC

              1801
                Century Park East, 16th
                Floor

              Los
                Angeles, California 90067

              Fax:
                (310) 789-1431

            
	 	 
	
              Investor:

            	
              Montage
                Partners III, LLC

              1875
                Century Park East, Suite 700

              Los
                Angeles, California 90067

              Attention:
                Michael S. Rosenblum, Manager

              Fax:
                310-286-3010

              Telephone:
                310-286-2100

            

    

     

    All
      notices shall be served personally by facsimile, by overnight express mail
      service or other overnight courier, or by first class registered or certified
      mail, postage prepaid, return receipt requested. If served personally, or by
      facsimile, notice shall be deemed delivered upon receipt (provided that if
      served by facsimile, sender has written confirmation of delivery); if served
      by
      overnight express mail or overnight courier, notice shall be deemed delivered
      48
      hours after deposit; and if served by first class mail, notice shall be deemed
      delivered 72 hours after mailing. Any party may give written notification to
      the
      other party of any change of address for the sending of notices, pursuant to
      any
      method provided for herein.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement
      as
      of the date first above written.

     

    
      	 	CENTERSTAGING
              CORP.     
	 	 
	 	 
	 	By: 	/s/
              Howard Livingston 
	 	 	Name:	Howard
              Livingston 
	 	 	Title:	CFO 

    

     

    
      	
            	
              MONTAGE
                PARTNERS III, LLC

            
	 	 
	 	 
	 	By: 	/s/
              Michael S. Rosenblum 
	 	 	Name:	Michael
              S. Rosenblum  
	 	 	Title:	Manager 

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    Calculation
      of Outstanding Principal and Interest

     

    
      	
              PRINCIPAL
                AMOUNT 12/12/05

            	 	 	
              #
                OF DAYS

            	 	
              $

            	
              500,000.00

            	 
	
              INTEREST
                @ 6% 12/12/05 - 3/11/06

            	 	 	
              90

            	 	
              $

            	
              7,397.26

            	 
	
              NEW
                BALANCE

            	 	 	 	 	
              $

            	
              507,397.26

            	 
	
              INTEREST
                @ 6% 3/12/06-6/11/06

            	 	 	
              92

            	 	
              $

            	
              7,673.51

            	 
	
              NEW
                BALANCE

            	 	 	 	 	
              $

            	
              515,070.78

            	 
	
              INTEREST
                @ 6% 6/12/06-6/30/06

            	 	 	
              19

            	 	
              $

            	
              1,608.71

            	 
	
              INTEREST
                @ 8% 7/1/06-9/11/06

            	 	 	
              73

            	 	
              $

            	
              8,241.13

            	 
	
              NEW
                BALANCE

            	 	 	 	 	
              $

            	
              524,920.62

            	 
	
              INTEREST
                @ 8% 9/12/06-12/11/06

            	 	 	
              91

            	 	
              $

            	
              10,469.65

            	 
	
              NEW
                BALANCE

            	 	 	 	 	
              $

            	
              535,390.27

            	 
	
              INTEREST
                @ 8% 12/12/06-3-11-07

            	 	 	
              90

            	 	
              $

            	
              10,561.12

            	 
	
              NEW
                BALANCE

            	 	 	 	 	
              $

            	
              545,951.39

            	 
	
              INTEREST
                @ 8% 3/12/07

            	 	 	
              1

            	 	
              $

            	
              119.66

            	 
	
              NEW
                BALANCE

            	 	 	 	 	
              $

            	
              546,071.06Exhibit
      10.2

     

    SECURED
      DEBENTURE

     

    NEITHER
      THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
      HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
      SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
      TO
      SUCH EFFECT, THE SUBSTANCE OF WHICH MUST BE REASONABLY ACCEPTABLE TO THE ISSUER
      OF THESE SECURITIES.

     

    
      	
              US
                $500,000

            	
              Date
                of Original Issuance: December 12,
                2005

            

    

    

    CENTERSTAGING
      CORP. 

     

    AMENDED
      AND RESTATED SECURED DEBENTURE DUE JUNE 30, 2006

     

    (AMENDED
      AND RESTATED AS OF MARCH 19, 2007)

     

    This
      Amended and Restated Secured Debenture is an amendment and restatement of the
      Secured Debenture originally issued on December 12, 2005 (“Original
      Debenture”)
      and
      not a new debenture issued in exchange for the Original Debenture.

     

    FOR
      VALUE
      RECEIVED, CenterStaging Corp., a Delaware corporation (the “Company”),
      promises to pay to the order of Montage Partners III, LLC, a Nevada limited
      liability company, the registered holder hereof (the “Holder”),
      on
      June 30, 2006 (the “Maturity
      Date”),
      the
      principal sum of Five Hundred Thousand Dollars (US $500,000), together with
      interest accruing on the outstanding principal amount from time to time through
      June 30, 2006 at the rate of 6% per annum and commencing July 1, 2006 at the
      rate of 8% per annum (all interest compounded quarterly). Accrual of interest
      shall commence on the date hereof and shall continue to accrue on a daily basis
      until payment in full of the principal sum has been made or duly provided for.
      

     

    This
      Debenture is subject to the following additional provisions:

     

    1. This
      Debenture is exchangeable for an equal aggregate principal amount of Debentures
      of different authorized denominations, as requested by the Holder surrendering
      the same. No service charge will be made for such registration or transfer
      or
      exchange.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2. The
      principal amount of this Debenture, together with accrued interest thereon,
      may
      not be prepaid in whole or in part, without the approval of Holder, which
      approval may be withheld in Holder’s sole and absolute discretion. The Company
      shall be entitled to withhold from all payments of principal of, and interest
      on, this Debenture any amounts required to be withheld under the applicable
      provisions of the United States income tax laws or other applicable laws at
      the
      time of such payments, and the Holder shall execute and deliver all required
      documentation in connection therewith.

     

    3. This
      Debenture has been issued subject to investment representations of the original
      purchaser hereof and may be transferred or exchanged only in compliance with
      the
      Securities Act of 1933, as amended (the “Act”),
      and
      other applicable state and foreign securities laws. In the event of any proposed
      transfer of this Debenture, the Company may require, prior to issuance of a
      new
      Debenture in the name of such other person, that it receive reasonable transfer
      documentation including legal opinions that the issuance of this Debenture
      in
      such other name does not and will not cause a violation of the Act or any
      applicable state or foreign securities laws. Prior to due presentment for
      transfer of this Debenture, the Company and any agent of the Company may treat
      the person in whose name this Debenture is duly registered on the Company’s
      Debenture Register as the owner hereof for the purpose of receiving payment
      as
      herein provided and for all other purposes, whether or not this Debenture be
      overdue, and neither the Company nor any such agent shall be affected by notice
      to the contrary.

     

    4. A. The
      Holder of this Debenture is entitled, at its option at any time and from time
      to
      time, subject to the following provisions of this Section 4, to convert all
      or a
      portion of the principal amount and accrued interest on this Debenture into
      shares of Common Stock of the Company, $0.0001 par value per share
      (“Common
      Stock”),
      at
      any time prior to the Maturity Date (as extended by Holder pursuant to Section
      5
      below), at a conversion price for each share of Common Stock equal to $1.00;
      provided that the amount being converted is at least $5,000 (unless if at the
      time of such election to convert the aggregate principal amount of all
      Debentures registered to the Holder is less than $5,000, then the whole amount
      thereof). If the Company (i) pays a dividend or makes a distribution on its
      Common Stock in shares of Common Stock; (ii) subdivides its outstanding
      shares of Common Stock into a greater number of shares; (iii) combines its
      outstanding shares of Common Stock into a smaller number of shares;
      (iv) makes a distribution on its Common Stock in shares of its capital
      stock other than Common Stock; or (v) issues by reclassification of its
      Common Stock any shares of its capital stock; then the number and kind of
      securities issuable upon conversion of this Debenture shall be proportionately
      adjusted so that the Holder may receive upon the conversion the aggregate number
      and kind of shares of capital stock of the Company which it would have owned
      immediately following such action if the conversion had taken place immediately
      prior to such action. The adjustment shall become effective immediately after
      the record date in the case of a dividend or distribution and immediately after
      the effective date in the case of a subdivision, combination or
      reclassification. Such adjustments shall be made successively whenever any
      event
      listed above shall occur.

     

    B. Conversion
      shall be effectuated by surrendering this Debenture to the Company, accompanied
      by or preceded by facsimile or other delivery to the Company of the form of
      conversion notice attached hereto as Exhibit A, executed by the Holder of this
      Debenture evidencing such Holder’s intention to convert this Debenture or a
      specified portion hereof, and accompanied, if required by the Company, by proper
      assignment hereof in blank. Interest accrued from the date of issuance to the
      date of conversion shall be paid in Common Stock upon conversion at the
      conversion rate applicable to such conversion. No fractional shares of Common
      Stock or scrip representing fractions of shares will be issued on conversion,
      but the number of shares issuable shall be rounded to the nearest whole share.
      The date on which notice of conversion is given (the “Conversion
      Date”)
      shall
      be deemed to be the date on which the Holder faxes or otherwise delivers the
      conversion notice (“Notice
      of Conversion”),
      substantially in the form annexed hereto as Exhibit A, duly executed, to the
      Company, provided that the Holder shall deliver to the Company the original
      Debenture being converted within three business days thereafter (and if not
      so
      delivered with such time, the Conversion Date shall be the date on which the
      later of the Notice of Conversion and the original Debenture being converted
      is
      received by the Company). Facsimile delivery of the Notice of Conversion shall
      be accepted by the Company at facsimile number (818) 848-4016; Attn: Chief
      Financial Officer. Certificates representing Common Stock upon conversion will
      be delivered within three (3) business days from the later of the date the
      Notice of Conversion is delivered to the Company as contemplated in the first
      sentence of this paragraph C or the original Debenture is delivered to the
      Company. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    5. Any
      portion of the principal balance and accrued interest on this Debenture not
      previously converted as of the Maturity Date shall be payable by the Company
      to
      the Holder on the Maturity Date. The Holder at its option and upon written
      notice to the Company shall have the right, from time to time to extend the
      Maturity Date, provided that the Maturity Date shall in no event be extended
      beyond December 31, 2007. 

     

    6. Subject
      to the terms of the Securities Purchase Agreement, dated as of December 12,
      2005
      (the “Securities
      Purchase Agreement”)
      and
      the Agreement dated March 19, 2007 (the “New
      Agreement”)
      between the Company and the Holder (or the Holder’s predecessor in interest), no
      provision of this Debenture shall alter or impair the obligation of the Company,
      which is absolute and unconditional, to pay the principal of, and interest
      on,
      this Debenture at the time, place, and rate, and in the coin or currency, herein
      prescribed. This Debenture and all other Debentures now or hereafter issued
      of
      similar terms are direct obligations of the Company.

     

    7. If
      the
      Company merges or consolidates with another corporation or sells or transfers
      all or substantially all of its assets to another person and the holders of
      the
      Common Stock are entitled to receive stock, securities or property in respect
      of
      or in exchange for Common Stock, then as a condition of such merger,
      consolidation, sale or transfer, the Company and any such successor, purchaser
      or transferee agree that this Debenture may thereafter be converted on the
      terms
      and subject to the conditions set forth above into the kind and amount of stock,
      securities or property receivable upon such merger, consolidation, sale or
      transfer by a holder of the number of shares of Common Stock into which this
      Debenture might have been converted immediately before such merger,
      consolidation, sale or transfer, subject to adjustments which shall be as nearly
      equivalent as may be practicable. In the event of any proposed merger,
      consolidation or sale or transfer of all or substantially all of the assets
      of
      the Company (a “Sale”), the Holder hereof shall have the right to convert this
      Debenture by delivering a Notice of Conversion to the Company within fifteen
      days after receipt of notice of such Sale from the Company. In the event the
      Holder hereof does not elect to convert, the Company may prepay all outstanding
      principal and accrued interest on this Debenture. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    8. If,
      for
      any reason, prior to the Conversion Date, the Company spins off or otherwise
      divests itself of a part of its business or operations or disposes of all or
      of
      a part of its assets in a transaction (the “Spin
      Off”)
      in
      which the Company does not receive compensation for such business, operations
      or
      assets, but causes securities of another entity (the “Spin
      Off Securities”)
      to be
      issued to security holders of the Company, then the Company shall cause (i)
      to
      be reserved Spin Off Securities equal to the number thereof which would have
      been issued to the Holder had all of the Holder’s Debentures (including accrued
      interest) outstanding on the record date (the “Record
      Date”)
      for
      determining the amount and number of Spin Off Securities to be issued to
      security holders of the Company (the “Outstanding
      Debentures”)
      been
      converted as of the close of business on the trading day immediately before
      the
      Record Date (the “Reserved
      Spin Off Shares”),
      and
      (ii) to be issued to the Holder on the conversion of all or any of the
      Outstanding Debentures, such amount of the Reserved Spin Off Shares equal to
      (x)
      the Reserved Spin Off Shares multiplied by (y) a fraction, of which (I) the
      numerator is the principal amount of the Outstanding Debentures then being
      converted, and (II) the denominator is the principal amount of the Outstanding
      Debentures.

     

    9. All
      payments contemplated hereby to be made “in cash” shall be made in immediately
      available good funds in such coin or currency of the United States of America
      as
      at the time of payment is legal tender for payment of public and private debts.
      All payments of cash and each delivery of shares of Common Stock issuable to
      the
      Holder as contemplated hereby shall be made to the Holder at the address last
      appearing on the Debenture Register of the Company as designated in writing
      by
      the Holder from time to time; except that the Holder can designate, by written
      notice to the Company, a different delivery address for any one or more specific
      payments or deliveries.

     

    10. The
      Holder of this Debenture, by acceptance hereof, agrees that this Debenture
      is
      being acquired for investment and that such Holder will not offer, sell or
      otherwise dispose of this Debenture or the Shares of Common Stock issuable
      upon
      conversion thereof except under circumstances which will not result in a
      violation of the Act or any applicable state Blue Sky or foreign laws or similar
      laws relating to the sale of securities.

     

    11. This
      Debenture and all agreements entered into in connection herewith shall be
      governed by and interpreted in accordance with the laws of the State of
      California for contracts to be wholly performed in such state and without giving
      effect to the principles thereof regarding the conflict of laws. Any litigation
      based thereon, or arising out of, under, or in connection with, this agreement
      or any course of conduct, course of dealing, statements (whether oral or
      written) or actions of the Company or Holder shall be brought and maintained
      exclusively in the state or Federal courts of the State of California, sitting
      in the City of Los Angeles. The Company and the Holder hereby expressly and
      irrevocably submit to the jurisdiction of the state and federal Courts of the
      State of California for the purpose of any such litigation as set forth above
      and irrevocably agree to be bound by any final judgment rendered thereby in
      connection with such litigation. The Company and the Holder further irrevocably
      consent to the service of process by registered mail, postage prepaid, or by
      personal service within or without the State of California. The Company and
      the
      Holder hereby expressly and irrevocably waive, to the fullest extent permitted
      by law, any objection which either of them may have or hereafter may have to
      the
      laying of venue of any such litigation brought in any such court referred to
      above and any claim that any such litigation has been brought in any
      inconvenient forum. To the extent that the Company or the Holder has or
      hereafter may acquire any immunity from jurisdiction of any court or from any
      legal process (whether through service or notice, attachment prior to judgment,
      attachment in aid of execution or otherwise) with respect to itself or its
      property, the Company and the Holder hereby irrevocably waives such immunity
      in
      respect of its obligations under this Agreement and the related agreements
      entered into in connection herewith.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    12. In
      the
      event that any action is taken by the Company or Holder in connection with
      this
      Debenture, or any related document or matter, the losing party in such legal
      action, in addition to such other damages as it may be required to pay, shall
      pay reasonable attorneys’ fees to the prevailing party.

     

    13. This
      Debenture is secured by that certain Security Agreement, dated December 12,
      2005, by and between the Company and the Holder (the “Security
      Agreement”),
      granting a first priority security interest in certain assets of the Company
      described therein (the “Collateral”).
      Upon
      payment in full of this Debenture, the Holder shall release and deliver to
      the
      Company a UCC-2 releasing its lien in the Collateral, together with the original
      of this Debenture marked “Paid In Full.” 

     

    14. The
      following shall constitute an “Event
      of Default”
under
      this Debenture:

     

    (a) The
      Company shall fail to pay the outstanding principal or accrued interest on
      this
      Debenture by the Maturity Date and such payment failure shall continue for
      a
      period of three (3) business days after its receipt of written notice from
      the
      Holder that such payment is in default; or

     

    (b) Any
      material representation or warranty made by the Company herein, in the
      Securities Purchase Agreement, the New Agreement or the Registration Rights
      Agreement shall be false or misleading in any material respect at the time
      made;
      or

     

    (c) The
      Company fails to issue shares of Common Stock to the Holder or to cause its
      transfer agent to issue shares of Common Stock upon exercise by the Holder
      of
      the conversion rights of the Holder in accordance with the terms of this
      Debenture, fails to transfer or to cause its transfer agent to transfer any
      certificate for shares of Common Stock issued to the Holder upon conversion
      of
      this Debenture and when required by this Debenture or the Registration Rights
      Agreement, and such transfer is otherwise lawful, or fails to remove any
      restrictive legend or to cause its transfer agent to transfer on any certificate
      or any shares of Common Stock issued to the Holder upon conversion of this
      Debenture as and when required by this Debenture, the Agreement or the
      Registration Rights Agreement and such legend removal is otherwise lawful,
      and
      any such failure shall continue uncured for five (5) business days following
      written notice from the Holder; or

     

    (d) The
      Company shall fail to perform or observe, in any material respect, any other
      material covenant or obligation of this Debenture (except for its obligations
      to
      make payments which is governed by Section 14(a) of this Debenture), the
      Securities Purchase Agreement, the Registration Rights Agreement, the Warrant
      or
      the Security Agreement and such failure shall continue uncured for a period
      of
      ten days after written notice from the Holder of such failure; or

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (e) The
      Company shall be in Default of the New Agreement (as defined in Section 14.1
      thereof); or

     

    (f) The
      Company shall (1) admit in writing its inability to pay its debts generally
      as
      they mature; (2) make an assignment for the benefit of creditors or commence
      proceedings for its dissolution; or (3) apply for or consent to the appointment
      of a trustee, liquidator or receiver for its or for a substantial part of its
      property or business; provided, however, that a “going concern” qualification
      contained in any report of the Company’s independent accountants shall not
      constitute an Event of Default under this Debenture; or

     

    (g) 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 sixty days after such appointment; or

     

    (h) 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 sixty days thereafter; or

     

    (i) Any
      money
      judgment, writ or warrant of attachment, or similar process in excess of
      $500,000 in the aggregate shall be entered or filed against the Company or
      any
      of its properties or other assets and shall remain unpaid, unvacated, unbonded
      or unstayed for a period of sixty days or in any event later than five days
      prior to the date of any proposed sale thereunder; or

     

    (j) 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 within sixty 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; or

     

    (k) The
      Company shall have its Common Stock suspended or delisted from an exchange
      or
      the OTC Bulletin Board from trading for in excess of five (5) trading
      days.

     

    (l) The
      Company is in default under the terms of any other loan agreement, note or
      debt
      instrument, including, without limitation, the loan agreements (including the
      Note and Commercial Security Agreement) relating to that certain small business
      association loan with Community National Bank, dated May 2, 2005.

     

    (m) The
      Company’s representation that the holding period for purposes Rule 144 under the
      Act in connection with the sale of the shares of Common Stock into which this
      Debenture may be converted commenced on December 12, 2005 is incorrect, and
      the
      transfer agent of the Company refuses to register the transfer of such shares
      when sold in accordance with Rule 144 (assuming the holding period commenced
      on
      December 12, 2005). If at any time, the Company fails to deliver or
      unreasonably delays delivering an opinion of its legal counsel (if required
      by the transfer agent) that Holder is permitted to sell Common Stock under
      Rule
      144 of the Act (subject to limitations on volume under Rule
      144(d), the filing of a Form 144 notice and a commercially
      reasonable representation
      letter from the Holder that the shares will be sold in accordance with
      requirements of Rule 144(f)) or, at any time, the Company fails to keep current
      its financial filings with the Securities and Exchange Commission 
      (as more fully set forth in Section 5 of the Registration Rights
      Agreement) unless
      the Holder is permitted to sell under Rule 144(k).  Company acknowledges
      that Holder is only agreeing to extend the due date of this Debenture and forgo
      penalties under the Registration Rights Agreement based upon the Company's
      representation made hereby that Holder may commence selling Common Stock
      pursuant to Rule 144 on December 12, 2006.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Then,
      or
      at any time thereafter, and in each and every such case, unless such Event
      of
      Default shall have been cured by the Company or waived in writing by the Holder
      (which waiver shall not be deemed to be a waiver of any subsequent default)
      at
      the option of the Holder and in the Holder’s sole discretion, the Holder may, at
      its option and upon written notice to the Company, cause this Debenture to
      become immediately due and payable in cash (and not by conversion into Common
      Stock), without presentment, demand, protest or notice of any other kind, all
      of
      which are hereby expressly waived, anything herein or in any note or other
      instruments contained to the contrary notwithstanding, and the Holder may
      immediately enforce any and all of the Holder’s rights and remedies provided
      herein, or any other rights or remedies afforded by law. Upon an Event of
      Default, the Company further promises to pay, automatically on all installments
      of principal and interest which are not timely paid when due and on the then
      outstanding principal balance, additional interest in addition to the rate
      set
      forth hereinabove, so that interest will thereafter accrue at an aggregate
      rate
      equal to 12% per annum.

     

    15. Nothing
      contained in this Debenture shall be construed as conferring upon the Holder
      the
      right to vote or to receive dividends or to consent or receive notice as a
      shareholder in respect of any meeting of shareholders or any rights whatsoever
      as a shareholder of the Company, unless and to the extent converted in
      accordance with the terms hereof.

     

    16. In
      the
      event for any reason, any payment by or act of the Company or the Holder shall
      result in payment of interest which would exceed the limit authorized by or
      be
      in violation of the law of the jurisdiction applicable to this Debenture, then
      the obligation of the Company to pay interest or perform such act or requirement
      shall be reduced to the limit authorized under such law, so that in no event
      shall the Company be obligated to pay any such interest, perform any such act
      or
      be bound by any requirement which would result in the payment of interest in
      excess of the limit so authorized. In the event any payment by or act of the
      Company shall result in the extraction of a rate of interest in excess of a
      sum
      which is lawfully collectible as interest, then such amount (to the extent
      of
      such excess not returned to the Company) shall, without further agreement or
      notice between or by the Company or the Holder, be deemed applied to the payment
      of principal, if any, hereunder immediately upon receipt of such excess funds
      by
      the Holder, with the same force and effect as though the Company had
      specifically designated such sums to be so applied to principal and the Holder
      had agreed to accept such sums as an interest-free prepayment of this Debenture.
      If any part of such excess remains after the principal has been paid in full,
      whether by the provisions of the preceding sentences of this Section 16 or
      otherwise, such excess shall be deemed to be an interest-free loan from the
      Company to the Holder, which loan shall be payable immediately upon demand
      by
      the Company. The provisions of this Section 16 shall control every other
      provision of this Debenture.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    17. Time
      is
      of the essence as to the performance of each and every obligation of the Company
      and the Holder pursuant to this Debenture.

     

    18. Any
      notice or communication required or permitted by this Agreement shall be given
      in writing addressed as follows:

     

    
      	
              COMPANY:

            	
              CenterStaging
                Corp.

              3407
                Winona Avenue

              Burbank,
                California 91504

              Attention: Chief
                Financial Officer

              Telecopier: (818)
                848-4016

            
	 	 
	 	
              with
                a copy to:

               

              Alan
                B. Spatz, Esq.

              Troy
                & Gould Professional Corporation

              1801
                Century Park East, 16th Floor

              Los
                Angeles, California 90067

              Telecopier: (310)
                789-1431

            
	 	 
	
              HOLDER:

            	
              Montage
                Partners III, LLC

              1875
                Century Park East, Suite 700

              Los
                Angeles, California 90067

              Attention:Michael
                S. Rosenblum

              Telecopier: 310-286-3010

            

    

    

    All
      Conversion Notices shall be served as specified in Section 5 above and all
      other
      notices shall be served personally by telecopy, by overnight express mail
      service or other overnight courier, or by first class registered or certified
      mail, postage prepaid, return receipt requested. If served personally, or by
      telecopy, notice shall be deemed delivered upon receipt (provided that if served
      by telecopy, sender has written confirmation of delivery); if served by
      overnight express mail or overnight courier, notice shall be deemed delivered
      48
      hours after deposit; and if served by first class mail, notice shall be deemed
      delivered 72 hours after mailing. Any party may give written notification to
      the
      other parties of any change of address for the sending of notices, pursuant
      to
      any method provided for herein.

     

    IN
      WITNESS WHEREOF, the Company has caused this instrument to be duly executed
      by
      an officer thereunto duly authorized.

     

    
      	
              Dated:
                March 19, 2007

            	CENTER
              STAGING CORP.  
	 	 
	 	 
	 	By:	/s/
              Howard Livingston
	 	 	Name:	Howard
              Livingston
	 	 	Title:	CFO

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    NOTICE
      OF
      CONVERSION

     

    (To
      be
      Executed by the Registered Holder in order to Convert this
      Debenture)

     

    The
      undersigned hereby irrevocably elects to convert $___________ of the principal
      amount (and $__________ of accrued interest thereon) of the Secured Debenture
      due January 31, 2007 into Shares of Common Stock of CenterStaging Corp., a
      Delaware corporation (the “Company”) according to the conditions hereof, as of
      the date written below.

     

    
      	
              Conversion
                Date*:

            	 
	 	 
	
              Applicable
                Conversion Date:

            	 
	 	 
	
              Signature:

            	 
	 	Name:	 
	 	 	 
	
              Address:

            	 
	
               

            	 
	 	 

    

    

    

    
      	
              *

            	
              The
                original Debenture must be received by the Company or its transfer
                agent
                by the third business day following the Conversion
                Date.

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