Document:

NOTE PURCHASE AGREEMENT

      AGREEMENT  made as of this 18th day of May 2005, by and between ROO Group,
Inc. (the "Company") and Robert Petty ("Petty").

                              W I T N E S S E T H:

      WHEREAS,  the Company requires  funding for its continued  operations as a
provider  of  technology  and  content  required  for  video to be played on the
Internet;

      WHEREAS,  the  Company  desires  to issue to Petty and Petty has agreed to
purchase from the Company,  a $600,000  principal  amount  promissory  note (the
"Note"), substantially in the form attached hereto as Exhibit A; and

      WHEREAS, as partial  consideration for the Purchase Price (defined below),
the  Company is  entering  into a certain  Registration  Rights  Agreement  (the
"Registration  Rights  Agreement")  entered into as of May 18, 2005, in the form
attached hereto as Exhibit B.

      NOW  THEREFORE,  in  consideration  of the mutual  covenants  and promises
herein  contained and upon the terms and conditions  hereinafter set forth,  the
parties hereto, intending to be legally bound, agree as follows:

      1.    PURCHASE AND SALE OF THE NOTE.

      Purchase and Sale. Upon the terms and conditions herein contained,  at the
Closing (as hereinafter  defined),  the Company agrees to sell the Note to Petty
and Petty  agrees to  purchase  the Note from the  Company,  which note shall be
secured  by a  general  security  interest  in and to any and all  assets of the
Company.

      2.    CONSIDERATION.

      Purchase  Price.  The purchase price for the Note (the  "Purchase  Price")
shall  be  Petty's  payment  of  Five  Hundred  Thousand  Five  Hundred  Dollars
($500,500) to the Company,  receipt of which is hereby acknowledged.  As further
consideration  for  the  Purchase  Price,  the  Company  shall  enter  into  the
Registration Rights Agreement.

      3.    CLOSING.

      3.1  Time  and  Place  of  Closing.   The  closing  of  the   transactions
contemplated  by this Agreement (the  "Closing") is taking place  simultaneously
with the execution of this Agreement,  at the offices of Sichenzia Ross Friedman
Ference LLP, at the date first set forth above (hereinafter the "Closing Date").

<PAGE>

      3.2 Delivery by the Company. At the Closing,  the Company shall deliver to
Petty: (a) the Note; and (b) the executed Registration Rights Agreement.

      3.3  Delivery by Petty.  At the  Closing,  Petty shall  deliver to the the
Company the sum of Five Hundred  Thousand Five Hundred Dollars  ($500,500) (in a
manner to be agreed upon by Petty and the Company).

      4.  REPRESENTATIONS  AND  WARRANTIES  OF THE COMPANY.  The Company  hereby
represents and warrants to Petty as follows:

      4.1 Due Organization and Qualification.  The Company is a corporation duly
organized,  validly existing and in good standing under the laws of the State of
Delaware.  The Company has all  requisite  power and  authority  to own,  lease,
operate and/or utilize its assets and properties and to carry on its business as
presently conducted and as presently contemplated, to the extent material to the
business of the Company.  The Company is duly qualified to transact business and
in good standing in each jurisdiction in which the nature of its business or the
locations of its property requires such qualification,  except where the failure
to do so would not have a material  adverse  effect on the  Company's  business,
operations, assets or condition (financial or otherwise).

      4.2 Power and Authority. The Company has the requisite corporate power and
authority to execute and deliver this  Agreement and the Note and to perform its
obligations hereunder and thereunder. The execution, delivery and performance of
this Agreement and the consummation of the transaction  contemplated hereby have
been  duly  authorized  by all  necessary  corporate  action  on the part of the
Company.  This Agreement has been duly executed and delivered by the Company and
is a legal, valid and binding obligation of the Company, enforceable against the
Company in  accordance  with its  terms,  except as such  enforceability  may be
limited by applicable  bankruptcy,  moratorium,  insolvency,  reorganization  or
other  similar  laws  now  or  hereafter  in  effect  relating  to or  affecting
creditors' rights  generally.  When executed and delivered by the Company at the
Closing,  the  Note  will be a valid  and  binding  obligation  of the  Company,
enforceable  against the Company in  accordance  with its terms,  except as such
enforceability  may be limited by  bankruptcy,  moratorium,  insolvency or other
similar laws generally affecting the enforcement of creditors' rights,  specific
performance, injunctive or other equitable remedies.

      4.3 No Breach;  Consents. The execution,  delivery and performance of this
Agreement by the Company and the consummation of the  transactions  contemplated
hereby  will not (i) result in any lien upon any of the  property of the Company
(other  than in favor of  Petty) or (ii)  violate,  conflict  with or  otherwise
result in the breach of any of the terms and conditions of, result in a material
modification  of or  accelerate  or trigger the rights of any person  under,  or
constitute (or with notice or lapse of time or both would  constitute) a default
under (a) any instrument,  contract or other agreement to which the Company is a
party or by or to which it or any of its properties is bound or subject; (b) any
law applicable to the Company or any of its properties or operations; or (d) any
permit. No consent, approval or authorization of, or declaration or filing with,
any  governmental  authority  or  other  person  is  required  that has not been
obtained on the part of the Company in connection  with the execution,  delivery
or  performance  of  this  Agreement  or the  consummation  of the  transactions
contemplated  hereby,  except such filings as may be required or advisable under
federal or state securities laws.

<PAGE>

      5.    REPRESENTATIONS,  WARRANTIES AND  ACKNOWLEDGEMENTS  OF PETTY.  Petty
hereby represents, warrants and acknowledges to the Company as follows:

      5.1 Investment Purposes.  Petty is acquiring the Note for his own account,
for investment purposes only and not with a view to resale or other distribution
thereof, nor with the intention of selling,  transferring or otherwise disposing
of all or any part of the Note,  or any  interest  therein,  for any  particular
price, or at any particular  time, or upon the happening of any particular event
or circumstances,  except selling,  transferring, or disposing of such Note made
in full compliance with all applicable  provisions of the Securities Act of 1993
(the "Act") and the Securities  Exchange Act of 1934 ("Exchange  Act"),  and the
Rules and  Regulations  promulgated by the  Securities  and Exchange  Commission
thereunder,  all as amended; and that such Note must be held indefinitely unless
it is  subsequently  registered  under  the  Act,  or  an  exemption  from  such
registration is available.

      5.2 Sophisticated Investor.  Petty has sufficient knowledge and experience
of financial and business  matters,  is able to evaluate the merits and risks of
purchasing the Note and has had substantial  experience in previous  private and
public purchases of securities.

      6.    POST-CLOSING COVENANTS.

      6.1 Further Assurances.  Each of the parties hereto shall, prior to, on or
after the  Closing,  as may be  appropriate,  execute such  documents  and other
papers and take such other  further  actions as may be  reasonably  required  to
carry out the provisions  hereof and effectuate  the  transactions  contemplated
hereby and in the Note.  Each such party  hereto  shall use its best  efforts to
fulfill or obtain the  fulfillment of the  conditions to the Closing,  including
obtaining any consents required in connection herewith.

      7.    Miscellaneous

      7.1 Binding  Effect;  Benefits.  This Agreement shall inure to the benefit
of,  and  shall be  binding  upon,  the  parties  hereto  and  their  respective
successors  and permitted  assigns.  Except as otherwise set forth herein,  this
Agreement  may not be assigned  by any party  hereto  without the prior  written
consent of the other party hereto. Except as otherwise set forth herein, nothing
in this  Agreement,  expressed  or implied,  is intended to confer on any person
other than the  parties  hereto or their  respective  successors  and  permitted
assigns any rights,  remedies,  obligations or liabilities under or by reason of
this Agreement.

      7.2 Notices. All notices, requests, demands and other communications which
are required to be or may be given under this Agreement  shall be in writing and
shall be deemed to have been duly given when delivered in person, or transmitted
by telecopy or telex,  or upon receipt after dispatch by certified or registered
first class mail,  postage prepaid,  return receipt  requested,  to the party to
whom the same is so given or made, at the following addresses (or such others as
shall be provided in writing hereinafter):

                                      -3-
<PAGE>

         (a) If to the Company, to:

                           ROO Group, Inc.
                           62 White Street, Suite 3A
                           New York, NY 10013
                           Tel. No.: (646) 352-0260
                           Fax No.: (646) 619-4074

         (b) If to Petty, to:

                           Robert Petty
                           c/o Roo Group, Inc.
                           62 White Street, Suite 3A
                           New York, New York 10013
                           Tel. No.: (646) 352-0260
                           Fax No.: (646) 619-4074

      7.3 Entire Agreement.  This Agreement constitutes the entire agreement and
supersedes all prior agreements and  understandings,  oral and written,  between
the parties hereto with respect to the subject matter hereof.

      7.4 Headings.  The section and other headings  contained in this Agreement
are for  reference  purposes  only and  shall not be deemed to be a part of this
Agreement or to affect the meaning or interpretation of this Agreement.

      7.5  Counterparts.  This  Agreement  may  be  executed  in any  number  of
counterparts,  each of which,  when executed,  shall be deemed to be an original
and all of which together shall be deemed to be one and the same instrument.

      7.6 Governing Law. This  Agreement  shall be construed as to both validity
and  performance and enforced in accordance with and governed by the laws of the
State of New York,  without  giving  effect to the  conflicts of law  principles
thereof.

      7.7 Severability.  If any term or provision of this Agreement shall to any
extent be invalid or unenforceable, the remainder of this Agreement shall not be
affected  thereby,  and each term and provision of the Agreement  shall be valid
and enforced to the fullest extent permitted by law.

                                      -4-
<PAGE>

      7.8  Arbitration.  Any  controversy  or  dispute  arising  out  of  or  in
connection with this Agreement, its interpretation,  performance or termination,
which the parties  hereto are unable to resolve  within a reasonable  time after
written  notice  from  one (1)  party  to the  other  of the  existence  of such
controversy  or dispute  shall be determined by  arbitration.  Such  arbitration
shall be in  accordance  with the  rules  and  procedures  then in effect of the
National Association of Securities Dealers, Inc. by a securities industry panel.
The  costs and  expenses  of such  arbitration,  including  attorney's  fees and
expenses, shall be awarded as determined by the arbitrators.

      7.9 Amendments. This Agreement may not be modified or changed except by an
instrument or instruments in writing executed by the parties hereto.

      IN WITNESS  WHEREOF,  the parties  hereto have caused this Agreement to be
duly executed as of the date first above written.

                                      THE COMPANY:

                                      ROO GROUP, INC.

                                      /s/ Robin Smyth
                                      ---------------------------------
                                      Robin Smyth
                                      Chief Financial Officer

                                      PETTY:

                                      /s/ Robert Petty
                                      ---------------------------------
                                      Robert Petty

                                      -5-PROMISSORY NOTE

$1,100,000.00                                                New York, New York
                                                                   May 18, 2005

            FOR VALUE  RECEIVED,  ROO  Group,  Inc.  (the  "Maker"),  a Delaware
corporation  with an office  located at 62 White Street,  Suite 3A, New York, NY
10013, hereby promises to pay Robert Petty (the "Payee"),  an individual with an
address at 500 East 77th Apt 1015 New York, New York USA 3145, the principal sum
of One Million One Hundred  Thousand  Dollars  ($1,100,000.00)  plus any accrued
interest  thereon in lawful money of the United States on December 31, 2005 (the
"Maturity Date").

            Maker  further  promises  to pay  interest  on the unpaid  principal
balance  hereof at the rate of ten percent (10%) per annum,  such interest to be
paid monthly  beginning June 1, 2005.  Interest shall be calculated on the basis
of a 360-day  year and  actual  days  elapsed.  In no event  shall the  interest
charged  hereunder  exceed the maximum  permitted under the laws of the state of
New York.

            This Note can be prepaid in whole or in part at any time without the
consent of the Payee  provided that Maker shall pay all accrued  interest on the
principal so prepaid to date of such prepayment.

            The  Maker  agrees  to pay  the  holder  all pre  approved  expenses
relating to obtaining and executing this Note.

            The  entire  unpaid  principal  balance  of this  Note and  interest
accrued  with  respect  thereto  shall be  immediately  due and payable upon the
occurrence of any of the following (each, an "Event of Default"):

            a. The suspension from listing,  without  subsequent  listing on any
one of, or the failure of the Maker's  common stock to be listed on at least one
of the OTC Bulletin  Board,  American Stock Exchange,  Nasdaq  National  Market,
Nasdaq  SmallCap  Market or The New York Stock Exchange for a period of five (5)
consecutive trading days;

            b. The filing of a lien, the issuance of a levy or execution, or the
seizure, attachment or garnishment, or the entry of judgment on or against Maker
or any of Maker's  property which shall not be released,  satisfied of record or
bonded within twenty (20) days thereafter,  except liens which exist as the date
hereof or liens to which the Payee shall consent;

            c. The Maker has failed to pay the  principal  and any  accrued  and
unpaid interest on the Maturity Date;

            d. the Maker  shall (A)  default  in any  payment  of any  amount or
amounts of  principal  of or interest on any  indebtedness  for  borrowed  money
(other than the indebtedness  hereunder) the aggregate principal amount of which
indebtedness  is in excess of  $100,000  or (B)  default  in the  observance  or
performance of any other agreement or condition  relating to any indebtedness or
contained  in any  instrument  or  agreement  evidencing,  securing  or relating
thereto,  or any other event shall occur or condition exist, the effect of which
default  or other  event or  condition  is to cause,  or to permit the holder or
holders or beneficiary or beneficiaries  of such  indebtedness to cause with the
giving of notice  if  required,  such  indebtedness  to become  due prior to its
stated maturity;

<PAGE>

            e. The Maker shall (i) apply for or consent to the  appointment  of,
or the taking of possession by, a receiver,  custodian, trustee or liquidator of
itself or of all or a  substantial  part of its property or assets,  (ii) make a
general assignment for the benefit of its creditors,  (iii) commence a voluntary
case under the United States  Bankruptcy Code (as now or hereafter in effect) or
under the comparable laws of any jurisdiction (foreign or domestic), (iv) file a
petition  seeking to take advantage of any bankruptcy,  insolvency,  moratorium,
reorganization  or other  similar law affecting  the  enforcement  of creditors'
rights  generally,  (v) acquiesce in writing to any petition filed against it in
an involuntary case under United States  Bankruptcy Code (as now or hereafter in
effect) or under the comparable laws of any jurisdiction  (foreign or domestic),
(vi) issue a notice of bankruptcy  or winding down of its  operations or issue a
press  release  regarding  same,  or (vii) take any action under the laws of any
jurisdiction (foreign or domestic) analogous to any of the foregoing; or

            f. A proceeding  or case shall be commenced in respect of the Maker,
without its  application  or consent,  in any court of  competent  jurisdiction,
seeking (i) the liquidation,  reorganization,  moratorium,  dissolution, winding
up, or  composition  or  readjustment  of its debts,  (ii) the  appointment of a
trustee,  receiver,  custodian,  liquidator  or the  like of it or of all or any
substantial part of its assets in connection with the liquidation or dissolution
of the Maker or (iii)  similar  relief in respect of it under any law  providing
for the relief of debtors,  and such proceeding or case described in clause (i),
(ii) or (iii)  shall  continue  undismissed,  or unstayed  and in effect,  for a
period  of sixty  (60)  days or any  order for  relief  shall be  entered  in an
involuntary  case under United  States  Bankruptcy  Code (as now or hereafter in
effect) or under the comparable laws of any  jurisdiction  (foreign or domestic)
against  the Maker or  action  under the laws of any  jurisdiction  (foreign  or
domestic)  analogous to any of the foregoing  shall be taken with respect to the
Maker and shall continue undismissed,  or unstayed and in effect for a period of
sixty (60) days.

            The  obligations  under  this Note shall be secured by all assets of
the Maker,  including,  but not limited to: all personal and fixture property of
every  kind and  nature,  including  without  limitation  all  goods  (including
inventory,   equipment  and  any  accessions  thereto),  instruments  (including
promissory notes), documents, accounts (including accounts receivable),  chattel
paper  (whether  tangible or  electronic),  deposit  accounts,  letter-of-credit
rights  (whether  or not the  letter  of  credit  is  evidenced  by a  writing),
commercial tort claims, securities and all other investment property, supporting
obligations,  any other  contract  rights or  rights  to the  payment  of money,
insurance  claims and  proceeds,  and all  general  intangibles  (including  all
payment intangibles).

            All rights  and  remedies  available  to the Payee  pursuant  to the
provisions of applicable  law and  otherwise are  cumulative,  not exclusive and
enforceable  alternatively,  successively  and/or  concurrently after default by
Maker pursuant to the provisions of this Note.

                                       2
<PAGE>

            The Maker waives demand, presentment, protest and notice of any kind
and consents to the  extension of time of  payments,  the release,  surrender or
substitution of any and all security or guarantees for the obligations evidenced
hereby or other indulgence with respect to this Note, all without notice.

            This Note may not be changed,  modified or  terminated  orally,  but
only by an  agreement in writing,  signed by the party to be charged.  The Maker
hereby  authorizes the Payee to complete this Note and any particulars  relating
thereto according to the terms of the indebtedness evidenced hereby.

            It is  understood  by the Maker and  Holder  that this Note shall be
subordinate to those certain  Callable Secured  Convertible  Notes issued by the
Maker to AJW Offshore,  Ltd., AJW Qualified Partners, LLC, AJW Partners, LLC and
New Millennium Capital Partners II, LLC dated as of September 10, 2004, November
23, 2004 and February 3, 2005.

            In the  event of any  litigation  with  respect  to the  obligations
evidenced  by this Note,  the Maker  waives the right to a trial by jury and all
rights  of  set-off  and  rights  to  interpose  permissive   counterclaims  and
cross-claims.  This Note shall be governed by and construed in  accordance  with
the laws of the  State of New York and  shall be  binding  upon the  successors,
assigns,  heirs,  administrators  and  executors  of the  Maker and inure to the
benefit of the Payee, his successors,  endorsees, assigns, heirs, administrators
and executors.

            The Maker hereby  irrevocably  consents to the  jurisdiction  of the
Supreme Court of the State of New York and the United States  District Court for
the Southern  District of New York in  connection  with any action or proceeding
arising out of or relating to this Note.  If any term or  provision of this Note
shall be held invalid, illegal or unenforceable, the validity of all other terms
and provisions hereof shall in no way be affected thereby.

                                     ROO GROUP, INC.

                                     By:   /s/ Robin Smyth
                                           -------------------------------------
                                     Name:     Robin Smyth
                                           -----------------------------
                                     Title:    Chief Financial Officer
                                           -----------------------------

ATTEST:

/s/ Lina Nguyen
--------------------

                                       3

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