Document:

EXHIBIT
4.1

PROMISSORY NOTE

	$	New York, New
York
December  14, 2006    

FOR VALUE RECEIVED,
TAG ENTERTAINMENT CORP., located at 1333 Second Street, Suite 240,
Santa Monica, CA 90401 (the ‘‘Parent
Borrower’’) and TAG ENTERTAINMENT USA, located at
1333 Second Street, Suite 240, Santa Monica, CA 90401 (the
‘‘Subsidiary Borrower’’, and
together with the Parent Borrower, the
‘‘Borrowers’’, each a
‘‘Borrower’’), jointly and
severally promise to pay to the order of
                                                                .,
having an office at
                                                            
(the ‘‘Lender’’), at such
office of the Lender or at such other place as the holder hereof may
from time to time designate in writing, in lawful money of the United
States of America in immediately available funds, the principal sum of
                                                    
AND 00/100 ($
                            .00)
DOLLARS on the date and in the amount set forth in this Note,
provided, however, that the aggregate unpaid
principal balance (the ‘‘Principal
Balance’’) of the term loan made by the Lender to
the Borrowers hereunder (the
‘‘Loan’’) shall in all
events be due and payable on March 14, 2007 (the
‘‘Maturity Date’’). The
Borrowers further agree that upon and following an Event of Default
and/or after any stated or any accelerated maturity of the indebtedness
evidenced hereby, the aggregate outstanding principal balance of the
Loan shall bear interest -at a rate equal to 18% per annum on
the unpaid Principal Balance, payable on demand. In no event shall
interest payable hereunder be in excess of the maximum rate of interest
permitted under applicable law. If any payment to be so made hereunder
becomes due and payable on a day other than a Business Day, such
payment shall be extended to the next succeeding Business Day and, to
the extent permitted by applicable law, interest there on shall be
payable at the then applicable rate during such extension.

All
payments made in connection with this Note shall be in lawful money of
the United States in immediately available funds. Borrowers agree that
as they receive payments from time to time with respect to the
Collateral prior to the Maturity Date, Borrowers will pay or cause to
be paid to the Lender such amounts received with respect to the
Collateral on a dollar-for-dollar basis within five business days of
receipt of such payments with respect to Collateral until the Note is
repaid in full as provided in this Note. All such payments shall be
applied first to the payment of outstanding principal and then to
accrued interest) ; provided, however, that after the
occurrence of an Event of Default, payments will be applied to the
obligations of the Borrowers to the Lender as the Lender determines in
its sole discretion. The Borrowers hereby expressly authorize the
Lender to record on the attached schedule the amount and date of each
Loan, the rate of interest thereon, and the date and amount of each
payment of principal. All such notations shall be presumptive as to the
correctness thereof; provided, however, the failure
of the Lender to make any such notation shall not limit or otherwise
affect the obligations of the Borrowers under this Note.

In
consideration of the granting of the Loan evidenced by this Note, the
Borrowers hereby agree as
follows:

			
		1. 	Definitions.    As
used
herein:

(a)    ‘‘Borrower’’
and ‘‘Borrowers’’ shall have
the meaning given to such terms in the first paragraph
hereof.

(b)    ‘‘Business
Day’’ means a day other than a Saturday, Sunday
or other day on which commercial banks in New York are required or
permitted by law to remain
closed.

(c)    ‘‘Loan
Documents’’ means, collectively, this Note, the
Security Agreement, and each other document, instrument or agreement
executed pursuant hereto or in connection herewith, together with each
other document, instrument or agreement made with or in favor of the
Lender.

(d)    ‘‘Material
Adverse Effect’’ means a material adverse effect
on the business, assets, operations or condition, financial or
otherwise, of either Borrower, the legality, validity or 

enforceability of any Loan Document, the
ability of either Borrower to perform any of its material obligations
under any Loan Document or the material rights of or benefits available
to the Lender under any Loan
Document.

(e)    ‘‘Person’’
means any natural Person, corporation, limited liability company,
trust, joint venture, association, company, partnership, governmental
authority or other
entity.

(f)    ‘‘Registration
Rights Agreement’’ means the Registration Rights
Agreement, dated as of the date hereof, by and among the Parent
Borrower and the
Lender.

(g)    ‘‘Security
Agreement’’ means the Security Agreement, dated
as of the date hereof, by and among the Borrowers and the
Lender.

(h)    ‘‘Securities
Purchase Agreement’’ means the Securities
Purchase Agreement, dated as of the date hereof, by and among the
Parent, Borrower and the
Lender.

(i)    ‘‘Transaction
Documents’’ means the Loan Documents, the
Securities Purchase Agreement, the Registration Rights Agreement, and
any other documents or agreements executed in connection with the
transactions contemplated
hereunder.

2.    Representations and
Warranties.    Each Borrower represents and warrants that: (a)
it is duly incorporated, validly existing and in good standing under
the laws of its jurisdiction of organization and is qualified to do
business and is in good standing under the laws of every state where
its failure to so qualify would have a Material Adverse Effect; (b) the
execution, delivery and performance of this Note and the other
Transaction Documents to which such Borrower is a party are within its
corporate powers and have been duly authorized, and the Note and the
other Transaction Documents to which such Borrower is a party are
valid, binding and enforceable in accordance with their respective
terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights
generally, and are not in violation of law or of the terms of such
Borrower’s organizational documents and do not result in the
breach of or constitute a default under any indenture, agreement or
undertaking to which such Borrower is a party or by which it or its
property may be bound or affected; (c) no authorization or approval or
other action by, and no notice to or filing with, any governmental
authority or regulatory body is required for the due execution,
delivery and performance by such Borrower of this Note, except those as
have been obtained; (d) the financial statements of the Borrowers
heretofore furnished to the Lender are complete and correct and fairly
represent the consolidated financial condition of each Borrower as at
the date thereof and for the periods covered thereby, which financial
condition has not materially adversely changed since the date of the
most recently dated balance sheet heretofore furnished to the Lender;
(e) no Event of Default has occurred and no event has occurred which
with the giving of notice or the lapse of time or both would constitute
an Event of Default; (f) the Borrowers shall not use any part of the
proceeds of any Loan to purchase or carry any margin stock within the
meaning of Regulation U of the Board of Governors of the Federal
Reserve System or to extend credit to others for the purpose of
purchasing or carrying any margin stock; (g) there is no pending or, to
the knowledge of any Borrower, threatened action or proceeding
affecting any Borrower before any court, governmental agency or
arbitrator which, if determined adversely to such Borrower would have a
materially adverse effect on the financial condition or operations of
such Borrower except as described in the financial statements of the
Borrowers heretofore furnished to the Lender; and (h) it is not an
‘‘investment company’’ as defined in, or
subject to regulation under, the Investment Company Act of 1940, as
amended.

3.    Collateral Security.    This Note is
secured by the Security Agreement.

4.    Conditions
Precedent to Making the Loan.    The Lender shall not make the
Loan until it has received each of the following, in each case in form
and substance satisfactory to it: (a) this Note and the Security
Agreement, each executed by a duly authorized officer of the Borrowers;
(b) the Securities Purchase Agreement, the Registration Rights
Agreement and the Warrants, each executed by a duly authorized officer
of the Parent Borrower; (c) a favorable written legal opinion
(addressed to the Lender) of counsel to the Borrowers; (d) a
certificate of the secretary or assistant secretary of each Borrower,
(i) attaching a long form certificate of incorporation of such
Borrower, certified as of a 

2

recent date by the Secretary of State of the
jurisdiction of its incorporation, and a true and complete copy of its
by-laws, (ii) attaching resolutions of its board of directors,
authorizing the execution, delivery and performance of the Loan
Documents to which it is a party and the transactions contemplated
thereby and certifying that (x) such resolutions were duly adopted and
in full force and effect and (y) no other resolutions relating to the
Loan Documents or such transactions have been adopted, (iii) certifying
as to the incumbency of its officer or officers who may sign the Loan
Documents, including therein a signature specimen of such officer or
officers, and attaching (x) certificates of good standing (or
comparable certificates), certified as of a recent date prior to the
date hereof, by the Secretaries of State (or comparable official) of
the jurisdiction of its incorporation and each other jurisdiction in
which it is qualified to do business and (y) certificates of good
standing of the taxing authority of the jurisdiction of its
incorporation and each other jurisdiction in which it is qualified to
do business; (e) a certificate of the chief executive officer or chief
financial officer of each Borrower, certifying that, on and as of the
date hereof, (i) the representations and warranties set forth in each
Transaction Document shall be true and correct with respect to such
Borrower, except to the extent such representations and warranties
specifically relate to an earlier date, in which case such
representations and warranties shall have been true and correct on and
as of such earlier date, and (ii)  no Default shall have occurred
and be continuing under any Transaction Document (assuming the
effectiveness of transactions contemplated by the Transaction
Documents); (f) results of a search of the UCC (or equivalent) filings
made and tax and judgment lien searches with respect to the Borrowers
and copies of the financing statements (or similar documents) disclosed
by such search and evidence reasonably satisfactory to the Lender that
the Liens other than Permitted Liens (as such terms are defined in the
Security Agreement) indicated by such financing statements (or similar
documents) have been released; and (g) UCC-1 financing statements with
respect to the Collateral (as defined in the Security Agreement) have
been filed in the appropriate filing office.

5.    Events
of Default.    Upon the occurrence of any of the following
specified events of default (each an ‘‘Event of
Default’’): (a) the failure of the Borrowers to
pay any principal, interest, or any other sum payable under this Note
or any other Loan Document when due; or (b) the failure of either
Borrower to perform any covenant or agreement hereunder or any other
Transaction Document; or (c) default by the Borrowers in the due
payment of any other indebtedness for borrowed money or default in the
observance or performance of any covenant or condition contained in any
agreement or instrument evidencing, securing, or relating to any such
indebtedness, which causes or permits the acceleration of the maturity
thereof; or (d) any representation or warranty made by either Borrower
in any Transaction Document proves untrue in any respect; or (e) either
Borrower becomes insolvent or bankrupt, is generally not paying its
debts as they become due, or makes an assignment for the benefit of
creditors, or a trustee or receiver is appointed for either Borrower or
for the greater part of the properties of such Borrower with the
consent of such Borrower, or if appointed without the consent of such
Borrower, such trustee or receiver is not discharged within 45 days, or
bankruptcy, reorganization, liquidation or similar proceedings are
instituted by or against either Borrower under the laws of any
jurisdiction, and if instituted against such Borrower are consented to
by it or remain not dismissed for 45 days, or a writ or warrant of
attachment or similar process shall be issued against a substantial
part of the property of such Borrower and shall not be released or
bonded within 30 days after levy; or (f) either Borrower shall be in
default beyond any applicable grace period under any Loan Document; or
(g) the mortgage or pledge of, or creation of a security interest in,
any assets of either Borrower, other than security interests in favor
of the Lender; or (h) the incurrence by either Borrower of any
indebtedness for borrowed money, other than obligations owing to the
Lender and indebtedness incurred in the ordinary course of business in
an aggregate principal amount for all such indebtedness not to exceed
$100,000; (i) one or more judgments for the payment of money in an
aggregate amount in excess of $50,000 shall be rendered against either
Borrower or any of its subsidiaries or any combination thereof (which
shall not be fully covered by insurance without taking into account any
applicable deductibles) and the same shall remain not discharged or not
bonded for a period of 30 consecutive days during which execution shall
not be effectively stayed, or any action shall be legally taken by a
judgment creditor to attach or levy upon any assets of such Borrower or
any of its subsidiaries or any combination thereof to enforce any such
judgment; or (j) any Transaction Document shall cease, for any reason,
to be in full force and effect, 

3

or either Borrower shall so assert in writing
or shall disavow any of its obligations thereunder; or (k)  the
Lien purported to be created under the Security Agreement shall cease
to be, or shall be asserted by either Borrower not to be, a valid and
perfected Lien on any Collateral (as defined in the Security
Agreement), with the priority required by the Security Agreement; or
(l) either Borrower fails to maintain its legal existence, mergers or
consolidates with any Person, acquires or creates any Person,
transfers, sells, leases or otherwise disposes of any of its property
(other than inventory in the ordinary course of business), or declares
or pays any dividend or other distribution in respect of its capital
stock (other than distributions payable in such stock); or (m) the
Lender shall have determined, in its sole discretion, that one or more
conditions exist or events have occurred which have resulted or may
result in a material adverse change in the business, properties or
financial condition of either Borrower as determined in the sole
discretion of the Lender or one or more other conditions exist or
events have occurred with respect to such Borrower which the Lender
deems materially adverse; or (n) as required by Section 2 of the
Security Agreement, either Borrower or both, fail to make payments to
Lender of any amounts received by such Borrower in respect of
Collateral within five (5) business days of receipt; then in any such
event, and at any time thereafter, if any Event of Default shall then
be continuing, the Lender may declare the principal and the accrued
interest in respect of the Loan under this Note to be, whereupon the
Note shall become, immediately due and payable without presentment,
demand, protest or other notice of any kind, all of which are expressly
waived by each Borrower, provided that in the case of any
event described in clause (e) of this paragraph, the principal of the
Loan then outstanding, together with accrued interest thereon and all
fees and other obligations of the Borrowers accrued under the Loan
Documents, shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which
are hereby waived by each
Borrower.

6.    Miscellaneous.

(a)    All
of the parties hereto agree that the Parent Borrower and the Subsidiary
Borrower shall be obligated for all of the Obligations (as defined in
the Security Agreement) on a joint and several basis, notwithstanding
which such party may have directly received the proceeds of the Loan.
The Parent Borrower and the Subsidiary Borrower each acknowledge and
agree that, for purposes of the Transaction Documents, the Parent
Borrower and the Subsidiary Borrower constitute a single integrated
financial enterprise and that each receives a benefit from the
Loan.

(b)    The Borrowers further agree to
pay on demand all of the Lender’s costs and expenses, including
reasonable counsel fees, in connection with the preparation,
negotiation and closing of the Loan Documents, as well as the
collection of any sums due to the Lender and enforcement of its rights
thereunder.

(c)    No modification or waiver
of any provision of this Note or any other Loan Document shall be
effective unless such modification or waiver shall be in writing and
signed by a duly authorized officer of the Lender and each Borrower,
and the same shall then be effective only for the period and on the
conditions and for the specific instances specified in such writing. No
failure or delay by the Lender in exercising any right, power or
privilege hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any rights, power or
privilege.

(d)    The Borrowers hereby waives
presentment, demand for payment, notice of protest, notice of dishonor,
and any and all other notices or demands except as otherwise expressly
provided for herein.

(e)    THIS NOTE AND
EACH OTHER LOAN DOCUMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE
LAWS OF ANOTHER JURISDICTION.    The Borrowers agree that any
suit for the enforcement of this Note or any of the other Loan
Documents may be brought in the courts of the State of New York sitting
in New York County or any Federal court sitting therein and consents to
the nonexclusive jurisdiction of such court and service of process in
any such suit being made upon either Borrower by mail at the address
set 

4

forth in the first paragraph of this Note. The
Borrowers hereby waive any objection that it may now or hereafter have
to the venue of any such suit or any such court or that such suit is
brought in an inconvenient forum.

(f)    EACH
PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
NOTE OR THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS NOTE OR THE OTHER LOAN
DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS PARAGRAPH.

(g)    The Lender shall
have the unrestricted right at any time and from time to time, and with
notice to each Borrower or any other party obligated on this Note, to
grant to any Person (each, a
‘‘Participant’’)
participating interests in the Loan. In the event of any such grant by
the Lender of a participating interest to a Participant, whether or not
upon notice to either Borrower, the Lender shall remain responsible for
the performance of its obligations hereunder and such Borrower shall
continue to deal solely and directly with the Lender in connection with
the Lender’s rights and obligations hereunder. The Lender may
furnish any information concerning either Borrower in its possession
from time to time to prospective assignees and Participants,
provided that the Lender shall require any such prospective
assignee or Participant to agree in writing to maintain the
confidentiality of such
information.

(h)    This Note and the other
Loan Documents shall be binding upon and inure to the benefit of each
Borrower, the Lender, all future holders of this Note and their
respective successors and assigns, except that neither Borrower may
assign or transfer any of its rights under this Note without the prior
written consent of the Lender. The term
‘‘Lender’’ as used herein shall be deemed
to include the Lender and its successors, endorsees and assigns. The
Lender shall have the unrestricted right at any time or from time to
time, and upon prior written notice to each Borrower, to assign all or
any portion of its rights and obligations hereunder to one or more
banks Persons (each, an
‘‘Assignee’’), and each
Borrower agrees that it shall execute, or cause to be executed, such
documents, including without limitation, amendments to this Note, any
other Loan Document and to any other documents, instruments and
agreements executed in connection herewith as the Lender shall deem
necessary to effect the foregoing. In addition, at the request of the
Lender or any such Assignee, each Borrower shall issue one or more new
promissory notes, as applicable, to any such Assignee and, if the
Lender has retained any of its rights and obligations hereunder
following such assignment, to the Lender, which new promissory notes
shall be issued in replacement of, but not in discharge of, the
liability evidenced by the promissory note held by the Lender prior to
such assignment and shall reflect the amount of the Loan held by such
Assignee and the Lender, as applicable, after giving effect to such
assignment. Upon the execution and delivery of appropriate assignment
documentation, amendments and any other documentation required by the
Lender in connection with such assignment, and the payment by Assignee
of the purchase price agreed to by the Lender, and such Assignee, such
Assignee shall be a party to this Note and shall have all of the rights
and obligations of the Lender hereunder to the extent that such rights
and obligations have been assigned by the Lender pursuant to the
assignment documentation between the Lender and such Assignee, and the
Lender shall be released from its obligations hereunder and thereunder
to a corresponding extent.

5

(i)    This Note and
the other Loan Documents are intended by the parties as the final,
complete and exclusive statement of the transactions evidenced thereby.
All prior or contemporaneous promises, agreements and understandings,
whether oral or written, are deemed to be superceded by this Note and
such other Loan Documents, and no party is relying on any promise,
agreement or understanding not set forth in this Note or such other
Loan Documents.

		TAG ENTERTAINMENT
CORP.

		By:   ____________________________________

		Name:   __________________________________

		Title:   ____________________________________

		TAG
ENTERTAINMENT
USA

		By:   ____________________________________

		Name:   __________________________________

		Title:   ____________________________________

6

LOAN AND REPAYMENT SCHEDULE
PROMISSORY
NOTE DATED DECEMBER 14, 2006
 TAG ENTERTAINMENT CORP.
to

                                                                            

										
	Date			Amount
of

Prepayment			Unpaid
Principal   

Balance			Notation
Made
By
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	 			 			 			 
	

7EXHIBIT
10.1

PURCHASE AGREEMENT

This Purchase Agreement (this
‘‘Agreement’’) is dated as
of December  14,  2006, between TAG Entertainment Corp., a
Delaware corporation (the
‘‘Company’’), and the
investor identified on the signature page hereto (the
‘‘Investor’’).

WHEREAS,
subject to the terms and conditions set forth in this Agreement, the
Company desires to borrow certain sums from the Investor and, in
consideration thereof issue a certain note and shares to the Investor,
and the Investor desires to make a loan to the Company and accept such
note and shares from the Company, all pursuant to the terms set forth
herein.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants
contained in this Agreement, and for other good and valuable
consideration the receipt and adequacy of which are hereby
acknowledged, the Company and the Investor agree as
follows:

ARTICLE I.
DEFINITIONS

1.1
Definitions.    In addition to the terms defined elsewhere
in this Agreement, for all purposes of this Agreement, the following
terms shall have the meanings indicated in this Section
1.1:

‘‘Action’’
means any action, claim, suit, inquiry, notice of violation, proceeding
(including, without limitation, any investigation or partial proceeding
such as a deposition) or investigation pending or threatened in writing
against or affecting the Company, any Subsidiary or any of their
respective properties before or by any court, arbitrator, governmental
or administrative agency, regulatory authority (federal, state,
provincial, county, local or foreign), stock market, stock exchange or
trading
facility.

‘‘Affiliate’’
means any Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule
144.

‘‘Bankruptcy
Event’’ means any of the following events: (a)
the Company or any Subsidiary commences a proceeding under any
bankruptcy, reorganization, arrangement, adjustment of debt, relief of
debtors, dissolution, insolvency or liquidation or similar law of any
jurisdiction relating to the Company or any Subsidiary thereof; (b)
there is commenced against the Company or any Subsidiary any such case
or proceeding that is not dismissed within 60 days after commencement;
(c) the Company or any Subsidiary is adjudicated by a court of
competent jurisdiction insolvent or bankrupt or any order of relief or
other order approving any such case or proceeding is entered; (d) the
Company or any Subsidiary suffers any appointment of any custodian or
the like for it or any substantial part of its property that is not
discharged or stayed within 60 days; (e) under applicable law
the Company or any Subsidiary makes a general assignment for the
benefit of creditors; (f) the Company or any Subsidiary fails to pay,
or states that it is unable to pay or is unable to pay, its debts
generally as they become due; (g) the Company or any Subsidiary calls a
meeting of its creditors with a view to arranging a composition,
adjustment or restructuring of its debts; or (h) the Company or any
Subsidiary, by any act or failure to act, expressly indicates its
consent to, approval of or acquiescence in any of the foregoing or
takes any corporate or other action for the purpose of effecting any of
the foregoing.

‘‘Business
Day’’ means any day except Saturday, Sunday and
any day that is a federal legal holiday or a day on which banking
institutions in the State of New York or State of California are
authorized or required by law or other governmental action to
close.

‘‘Closing’’
means the closing of the purchase and sale of the Note and Warrant
contemplated by Section
2.1.

‘‘Closing
Date’’ means the Business Day immediately following
the date on which all of the conditions set forth in Section 2.1(d) and
2.1(e) have been satisfied, or such other date as the parties may
agree.

‘‘Code’’
means the Internal Revenue Code of 1986, as
amended.

‘‘Commission’’
means the Securities and Exchange
Commission.

‘‘Common
Stock’’ means the common stock of the Company,
par value $.001 per share, and any securities into which such common
stock may hereafter be reclassified, converted or exchanged.

‘‘Common Stock
Equivalents’’ means any securities of the Company
or any Subsidiary which entitle the holder thereof to acquire Common
Stock at any time, including without limitation, any debt, preferred
stock, rights, options, warrants or other instrument that is at any
time convertible into or exchangeable for, or otherwise entitles the
holder thereof to receive, Common Stock or other securities that
entitle the holder to receive, directly or indirectly, Common
Stock.

‘‘Company
Counsel’’ means Goldstein & DiGioia,
LLP.

‘‘Contingent
Liability’’ means, as to any Person, any
obligation, contingent or otherwise, of such Person guaranteeing or
having the economic effect of guaranteeing or agreeing to pay or become
responsible for any Debt or obligation of any other Person in any
manner, whether directly or indirectly, including without limitation
any obligation of such Person, direct or indirect, (a) to purchase or
pay (or advance or supply funds for the purchase or payment of) such
Debt or to purchase (or to advance or supply funds for the purchase of)
any security for the payment of such Debt, (b) to purchase property or
services for the purpose of assuring the owner of such Debt of its
payment, or (c) to maintain the solvency, working capital, equity, cash
flow, fixed charge or other coverage ratio, or any other financial
condition of the primary obligor so as to enable the primary obligor to
pay any Debt or to comply with any agreement relating to any Debt or
obligation.

‘‘Debt’’
of any Person means at any date, without duplication, (i) all
obligations of such Person for borrowed money, (ii) all obligations of
such Person evidenced by bonds, debentures, notes, or other similar
instruments issued by such Person, (iii) all obligations of such Person
as lessee which (y) are capitalized in accordance with GAAP or (z)
arise pursuant to sale-leaseback transactions, (iv) all reimbursement
obligations of such Person in respect of letters of credit or other
similar instruments, (v) all Debt of others secured by a Lien on any
asset of such Person, whether or not such Debt is otherwise an
obligation of such Person and (vi) all Debt of others guaranteed by
such Person.

‘‘Effective
Date’’ means the date that the Registration
Statement required by Section 2(a) of the Registration Rights Agreement
is first declared effective by the
Commission.

‘‘Eligible
Market’’ means the Over the Counter Bulletin
Board on which the Common Stock is quoted for trading on the date in
question.

‘‘Exchange
Act’’ means the Securities Exchange Act of 1934,
as
amended.

‘‘GAAP’’
means U.S. generally accepted accounting
principles.

‘‘Investment
Amount’’ means, with respect to each Investor,
the investment amount indicated below such Investor’s signature
page to this
Agreement.

‘‘Investor
Deliverables’’ has the meaning set forth in
Section 2.1(c).

‘‘Investor
Party’’ has the meaning set forth in Section
4.8.

‘‘Lien’’
means any lien, charge, encumbrance, security interest, right of first
refusal or other restrictions of any
kind.

‘‘Losses’’
has the meaning set forth in Section
4.8.

‘‘Material Adverse
Effect’’ means any of (i) a material and adverse
effect on the legality, validity or enforceability of any Transaction
Document, (ii) a material and adverse effect on the results of
operations, assets, prospects, business or condition (financial or
otherwise) of the Company and the Subsidiaries or (iii) an adverse
impairment to the Company’s ability to timely perform its
obligations under any Transaction Document.

2

‘‘New
York Courts’’ means the state and federal courts
sitting in the City of New York, Borough of
Manhattan.

‘‘Note’’
means the promissory note issuable by the Company to the Investor at
Closing in the Form of Exhibit A, due 90 days after the
Closing Date.

‘‘Outside
Date’’ means the twentieth calendar day following
the date of this
Agreement.

‘‘Permitted
Indebtedness’’ has the meaning set forth in
Section 5.3.

‘‘Permitted
Liens’’ means: (a) Liens for taxes, assessments
or governmental charges not delinquent or being contested in good faith
and by appropriate proceedings and for which adequate reserves in
accordance with GAAP are maintained on the books of the Company or the
applicable Subsidiary; (b) Liens arising out of deposits in connection
with workers’ compensation, unemployment insurance, old age
pensions or other social security or retirement benefits legislation;
(c) deposits or pledges to secure bids, tenders, contracts (other than
contracts for the payment of money), leases, statutory obligations,
surety and appeal bonds, and other obligations of like nature arising
in the ordinary course of business of the Company or a Subsidiary;
(d)  Liens imposed by law, such as mechanics’,
workers’, materialmens’, carriers’ or other like
liens arising in the ordinary course of business of the Company or a
Subsidiary which secure the payment of obligations which are not past
due or which are being diligently contested in good faith by
appropriate proceedings and for which adequate reserves in accordance
with GAAP are maintained on the books of the Company or the applicable
Subsidiary; (e) Liens existing on the Closing Date; (f) purchase money
security interests or Liens for the purchase of fixed assets to be used
in the business of the Company or a Subsidiary, securing solely the
fixed assets so purchased and the proceeds thereof; (g) capitalized
leases which do not violate any provision of this Agreement; (h) Liens
of commercial depository institutions, arising in the ordinary course
of business, constituting a statutory or common law right of setoff
against amounts on deposit with such institution; (i) rights of way,
zoning restrictions, easements and similar encumbrances affecting the
Company’s real property which do not materially interfere with
the use of such property; and (j) Liens arising in the ordinary course
of business that do not materially adversely affect either
Borrower’s use of its respective assets or
properties.

‘‘Person’’
means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company,
joint stock company, government (or an agency or subdivision thereof)
or other entity of any
kind.

‘‘Registration
Statement’’ means a registration statement
meeting the requirements set forth in the Registration Rights Agreement
and covering the resale by the Investor of the Restricted
Shares.

‘‘Registration
Rights Agreement’’ means the Registration Rights
Agreement, dated as of the date of this Agreement, among the Company
and the Investor, in the form of Exhibit B
hereto.

‘‘Restricted
Payment’’ means, with respect to any Person, (a)
any direct or indirect distribution, dividend or other payment on
account of any equity interest in, or shares of capital stock or other
securities of, such Person and (b) any management, consulting or other
similar fees, or any interest thereon, payable by such Person to any
affiliate of such Person (other than the Company), or to any other
Person other than an unrelated third party; provided, however,
that Restricted Payments shall not include (i) payments pursuant to any
arms length consulting agreements with consultants of the Company, (ii)
payments pursuant to any employment agreement with employees of the
Company and (iii) payment of any interest pursuant to any obligation of
the Company to pay interest in effect on the date hereof, in each which
have been approved by the Board of Directors of the
Company.

‘‘Restricted
Shares’’ means 300,000 shares of Common Stock to be
delivered to the Investor which shares are ‘‘restricted
securities’’ and have not been registered under the
Securities Act or any applicable state securities law, and that such
restricted securities must be held indefinitely unless a subsequent
disposition is registered under the Securities Act or any applicable
state securities laws or is exempt from such
registration.

3

‘‘Rule
144’’ means Rule 144 promulgated by the
Commission pursuant to the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted
by the Commission having substantially the same effect as such
Rule.

‘‘Securities’’
means the Note and the
Shares.

‘‘Securities
Act’’ means the Securities Act of 1933, as
amended.

‘‘Security
Agreement’’ has the meaning set forth in Section
2.1(b).

‘‘Shares’’
means the Restricted Shares and Unrestricted Shares taken as a
whole.

‘‘Short
Sales’’ include, without limitation, all
‘‘short sales’’ as defined in Rule 200
promulgated under Regulation SHO under the Exchange Act and all types
of direct and indirect stock pledges, forward sale contracts, options,
puts, calls, swaps and similar arrangements (including on a total
return basis), and sales and other transactions through non-US broker
dealers or foreign regulated
brokers.

‘‘Subsidiary’’
means any subsidiary of the Company included in the SEC
Reports.

‘‘Trading
Day’’ means (i) a day on which the Common Stock
is traded in the over-the-counter market, as reported by the OTC
Bulletin Board or the Pink Sheets, LLC, or (ii)  if the Common
Stock is not quoted on the OTC Bulletin Board, a day on which the
Common Stock is quoted in the over-the-counter market as reported by
the Pink Sheets, LLC (or any similar organization or agency succeeding
to its functions of reporting prices); provided, that in the event that
the Common Stock is not listed or quoted as set forth in (i) and (ii)
hereof, then Trading Day shall mean a Business
Day.

‘‘Trading
Market’’ means the OTC Bulletin Board on which
the Common Stock is quoted for trading on the date in
question.

‘‘Transaction
Documents’’ means this Agreement, the Note, the
Registration Rights Agreement, the Security Agreement, and any other
documents or agreements executed in connection with the transactions
contemplated
hereunder.

‘‘Unrestricted
Shares’’ means 200,000 shares of Common Stock to
be delivered to the Investor which shares are freely tradeable and not
subject to any restrictions to sale under the Securities
Act.

ARTICLE II.
PURCHASE AND SALE

2.1
Closing.

(a) Upon the terms and subject to the
conditions set forth in this Agreement, at the Closing the Company
shall issue and sell to the Investor, and the Investor shall, purchase
from the Company, the Note, the Restricted Shares and the Unrestricted
Shares representing the Investor’s Investment Amount. The
Closing shall take place at the offices of Goldstein & DiGioia,
LLP, 45 Broadway, 11th  Floor, New York, New York
10006 at 4:30 p.m. (New York City time) on the Closing Date or at such
other location or time as the parties may agree.

(b) At the
Closing, the Company shall deliver or cause to be delivered to the
Investor the following (the ‘‘Company
Deliverables’’), except that the share
certificates required by subparagraphs (ii) and (iii) below will be
delivered no later than 10 Business Days after the Closing
Date:

(i) Note in the aggregate principal
amount of the Investment Amount indicated below the Investor’s
name on its signature page of this Agreement, registered in the name of
the Investor;

(ii) certificate, registered in
the name of such Investor, evidencing 300,000 shares of Common Stock,
which shares shall contain the restricted legend set forth in Section
4.1(b) (‘‘Restricted
Shares’’);

(iii) certificate
registered in the name of the Investor, evidencing 200,000 shares of
Common Stock, which shares shall be without any restrictive legend and
shall be freely tradeable (‘‘Unrestricted
Shares’’).

4

(iv) the legal opinion of
Company Counsel, in agreed form, addressed to the Investor;

(v) the Registration Rights Agreement, duly
executed by the Company;

(vi) the Security
Agreement, duly executed by the Company, in a form acceptable to the
Investor (as amended, supplemented or otherwise modified from time to
time, the ‘‘Security
Agreement’’);

(vii) a
certificate executed by a duly authorized officer of the Company
certifying that (i) all representations and warranties made by the
Company and information furnished by the Company in any schedules to
this Agreement, are true and correct in all material respects as of the
Closing Date, (ii) all covenants, agreements and obligations required
by this Agreement to be performed or complied with by the Company,
prior to or at the Closing, have been performed or complied with and
(iii) the items referenced in Sections 2.1(d)(iv)-(vii) are true and
correct as of the Closing Date; and

(viii) any
other documents reasonably requested by the Investor.

(c) At the
Closing, the Investor shall deliver or cause to be delivered to the
Company the following (the ‘‘Investor
Deliverables’’):

(i)
$              in United States
dollars and in immediately available funds, by wire transfer to
Goldstein & DiGioia, LLP Attorney Escrow Account for TAG
ENTERTAINMENT CORP., Account No. 1500577343, Signature Bank, 261
Madison Avenue, New York, New York 10016, ABA No.
026013576.

(ii) the Registration Rights
Agreement, duly executed by such Investor;
and

(iii) the Security Agreement, duly executed
by such Investor.

(d) Conditions Precedent to the Obligations
of the Investor to Purchase the Note and the Shares.    The
obligation of the Investor to acquire the Note and the Shares and make
the loan at the Closing is subject to the satisfaction or waiver by
such Investor, at or before the Closing, of each of the following
conditions:

(i) Representations and
Warranties.    The representations and warranties of the Company
contained in the Transaction Documents shall be true and correct as of
the date when made and as of the Closing Date as though made on and as
of such date;

(ii)
Performance.    The Company shall have performed, satisfied
and complied with all covenants, agreements and conditions required by
the Transaction Documents to be performed, satisfied or complied with
by it at or prior to the Closing;

(iii)
Officer’s Certificate.    The officer’s
certificate described in Section 2.1(b)(vii) hereof shall have been
delivered;

(iv) No Injunction.    No
statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or endorsed by
any court or governmental authority of competent jurisdiction that
prohibits the consummation of any of the transactions contemplated by
the Transaction Documents;

(v) Adverse
Changes.    Since the execution of this Agreement, no event or
series of events shall have occurred that has had or would reasonably
be expected to result in a Material Adverse Effect;

(vi) No Suspensions of Trading in Common
Stock; Listing.    Trading in the Common Stock shall not have
been suspended by the Commission or any Trading Market (except for any
suspensions of trading of not more than one Trading Day solely to
permit dissemination of material information regarding the Company) at
any time since the date of execution of this Agreement, and the Common
Stock shall have been at all times since such date listed for trading
on an Eligible Market;

(vii) Security
Agreement.    The Company and Investor shall have agreed to and
executed the Security Agreement, which shall be in a form acceptable to
the Investor; and

5

(viii) Company
Deliverables.    The Company shall have delivered the Closing
Company Deliverables in accordance with Section 2.1(b).

(e)
Conditions Precedent to the Obligations of the Company to sell the
Note and the Shares.     The obligation of the Company to sell
the Note and the Shares at the Closing is subject to the satisfaction
or waiver by the Company, at or before the Closing, of each of the
following conditions:

(i) Representations
and Warranties.    The representations and warranties of the
Investor contained herein shall be true and correct as of the date when
made and as of the Closing Date as though made on and as of such
date;

(ii) Performance.    The
Investor shall have performed, satisfied and complied in all material
respects with all covenants, agreements and conditions required by the
Transaction Documents to be performed, satisfied or complied with by
the Investor at or prior to the Closing;

(iii)
No Injunction.    No statute, rule, regulation, executive
order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of
competent jurisdiction that prohibits the consummation of any of the
transactions contemplated by the Transaction Documents;
and

(iv) Investor
Deliverables.    The Investor shall have delivered its Investor
Deliverables in accordance with Section 2.1(c).

ARTICLE
III.
REPRESENTATIONS AND WARRANTIES

3.1 Representations
and Warranties of the Company.    The Company hereby makes the
following representations and warranties to each
Investor:

(a) Subsidiaries.    The
Company has no direct or indirect Subsidiaries other than its reports
filed with the Commission. The Company owns, directly or indirectly,
all of the capital stock of each Subsidiary free and clear of any and
all Liens (other than Permitted Liens), and all the issued and
outstanding shares of capital stock of each Subsidiary are validly
issued and are fully paid, non-assessable and free of preemptive and
similar rights.

(b) Organization and
Qualification.    The Company and each Subsidiary are duly
incorporated or otherwise organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or
organization (as applicable), with the requisite power and authority to
own and use its properties and assets and to carry on its business as
currently conducted. Neither the Company nor any Subsidiary is in
violation of any of the provisions of its respective certificate or
articles of incorporation, bylaws or other organizational or charter
documents. The Company and each Subsidiary are duly qualified to
conduct its respective businesses and are in good standing as a foreign
corporation or other entity in each jurisdiction in which the nature of
the business conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good
standing, as the case may be, could not, individually or in the
aggregate, have or reasonably be expected to result in a Material
Adverse Effect.

(c) Authorization;
Enforcement.    The Company has the requisite corporate power
and authority to enter into and to consummate the transactions
contemplated by each of the Transaction Documents and otherwise to
carry out its obligations thereunder. The execution and delivery of
each of the Transaction Documents by the Company and the consummation
by it of the transactions contemplated thereby have been duly
authorized by all necessary action on the part of the Company and no
further action is required by the Company in connection therewith. Each
Transaction Document has been (or upon delivery will have been) duly
executed by the Company and, when delivered in accordance with the
terms hereof, will constitute the 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,
insolvency, reorganization, moratorium, liquidation or similar laws
relating to, or affecting generally the enforcement of,
creditors’ rights and remedies or by other equitable principles
of general application.

6

(d) No
Conflicts.    The execution, delivery and performance of the
Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated thereby do not and will not
(i) conflict with or violate any provision of the Company’s or
any Subsidiary’s certificate or articles of incorporation, bylaws
or other organizational or charter documents, or (ii)  conflict
with, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation (with or
without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument (evidencing a Company or Subsidiary
debt or otherwise) or other understanding to which the Company or any
Subsidiary is a party or by which any property or asset of the Company
or any Subsidiary is bound or affected, or (iii) result in a violation
of any law, rule, regulation, order, judgment, injunction, decree or
other restriction of any court or governmental authority to which the
Company or a Subsidiary is subject (including federal and state
securities laws and regulations), or by which any property or asset of
the Company or a Subsidiary is bound or affected; except in the case of
each of clauses (ii) and (iii), such as could not, individually or in
the aggregate, have or reasonably be expected to result in a Material
Adverse Effect. Payments of cash on account of principal of or interest
under the Note, upon any Event of Default under the Note, as a result
of liquidated damages under any Transaction Document will not require
the consent of, any payment to, or the springing of any Lien in favor
of any lender to or creditor of the Company or any Subsidiary (under a
credit facility, loan agreement or otherwise) and will not result in a
default under any such credit facilities, loans or other
agreements.

(e) Filings, Consents and
Approvals.    The Company is not required to obtain any consent,
waiver, authorization or order of, give any notice to, or make any
filing or registration with, any court or other federal, state, local
or other governmental authority or other Person in connection with the
execution, delivery and performance by the Company of the Transaction
Documents, other than (i) the filing with the Commission of one or more
Registration Statements in accordance with the requirements
Registration Rights Agreement, (ii) filings required by state
securities laws, (iii) the filing of a Notice of Sale of Securities on
Form D with the Commission under Regulation D of the Securities Act
(iv) the filings required in accordance with Section 4.6 and 4.7, and
(iv) those that have been made or obtained prior to the date of this
Agreement.

(f) Issuance of the
Securities.    The Securities have been duly authorized and,
when issued and paid for in accordance with the Transaction Documents,
will be duly and validly issued, fully paid and nonassessable, free and
clear of all Liens. The Company has reserved from its duly authorized
capital stock a number of shares of Common Stock issuable pursuant to
this Agreement.

3.2 Representations and Warranties of the
Investor.    The Investor hereby represents and warrants to the
Company as follows:

(a) Organization;
Authority.    The Investor is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization with the requisite corporate or partnership power and
authority to enter into and to consummate the transactions contemplated
by the applicable Transaction Documents and otherwise to carry out its
obligations thereunder. The execution, delivery and performance by the
Investor of the transactions contemplated by this Agreement have been
duly authorized by all necessary corporate or, if such Investor is not
a corporation, such partnership, limited liability company or other
applicable like action, on the part of such Investor. Each of this
Agreement, the Registration Rights Agreement and the Security Agreement
has been duly executed by such Investor, and when delivered by such
Investor in accordance with terms hereof, will constitute the valid and
legally binding obligation of such Investor, enforceable against it in
accordance with its terms, except as such enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally the
enforcement of, creditors’ rights and remedies or by other
equitable principles of general
application.

(b) Investment
Intent.    The Investor is acquiring the Securities as principal
for its own account for investment purposes only and not with a view to
or for distributing or reselling such 

7

Securities or any part thereof, without
prejudice, however, to such Investor’s right at all times to sell
or otherwise dispose of all or any part of such Securities in
compliance with applicable federal and state securities laws. Subject
to the immediately preceding sentence, nothing contained herein shall
be deemed a representation or warranty by such Investor to hold the
Securities for any period of time. The Investor is acquiring the
Securities hereunder in the ordinary course of its business. The
Investor does not have any agreement or understanding, directly or
indirectly, with any Person to distribute any of the
Securities.

(c) Investor
Status.    At the time the Investor was offered the Securities,
it was, and at the date hereof it is, an ‘‘accredited
investor’’ as defined in Rule 501(a) under the Securities
Act. The Investor is not a registered broker-dealer under Section 15 of
the Exchange Act.

(d) General
Solicitation.    The Investor is not purchasing the Securities
as a result of any advertisement, article, notice or other
communication regarding the Securities published in any newspaper,
magazine or similar media or broadcast over television or radio or
presented at any seminar or any other general solicitation or general
advertisement.

(e) Access to
Information.    The Investor acknowledges that it has reviewed
the Disclosure Materials and has been afforded (i) the opportunity to
ask such questions as it has deemed necessary of, and to receive
answers from, representatives of the Company concerning the terms and
conditions of the offering of the Securities and the merits and risks
of investing in the Securities; (ii) access to information about the
Company and the Subsidiaries and their respective financial condition,
results of operations, business, properties, management and prospects
sufficient to enable it to evaluate its investment; and (iii) the
opportunity to obtain such additional information that the Company
possesses or can acquire without unreasonable effort or expense that is
necessary to make an informed investment decision with respect to the
investment. Neither such inquiries nor any other investigation
conducted by or on behalf of such Investor or its representatives or
counsel shall modify, amend or affect such Investor’s right to
rely on the truth, accuracy and completeness of the Disclosure
Materials and the Company’s representations and warranties
contained in the Transaction Documents.

(f)
Certain Trading Activities.    The Investor has not directly
or indirectly, nor has any Person acting on behalf of or pursuant to
any understanding with such Investor, engaged in any transactions in
the securities of the Company (including, without limitations, any
Short Sales involving the Company’s securities) since the time
that such Investor was first contacted by the Company or placement
agent engaged by the Company regarding an investment in the Company.
The Investor covenants that neither it nor any Person acting on its
behalf or pursuant to any understanding with it will engage in any
transactions in the securities of the Company (including Short Sales)
prior to the time that the transactions contemplated by this Agreement
are publicly disclosed. Notwithstanding the foregoing, in the case of
an Investor that is a multi-managed investment vehicle whereby separate
portfolio managers manage separate portions of such Investor’s
assets and the portfolio managers have no actual knowledge of the
investment decisions made by the portfolio managers managing other
portions of such Investor’s assets, the representation set forth
above shall only apply with respect to the portion of assets managed by
the portfolio manager that made the investment decision to purchase the
Securities covered by this
Agreement.

(g)Independent Investment
Decision.    The Investor has independently evaluated the merits
of its decision to purchase Securities pursuant to this Agreement, and
the Investor confirms that it has not relied on the advice of any other
Investor’s business and/or legal counsel in making such
decision.

The Company acknowledges and agrees that the Investor
neither has made nor makes any representations or warranties with
respect to the transactions contemplated hereby other than those
specifically set forth in this Section 3.2.

8

ARTICLE IV.
OTHER AGREEMENTS OF THE
PARTIES

4.1 (a)    The Securities may only be disposed of in
compliance with state and federal securities laws. In connection with
any transfer of the Securities other than pursuant to an effective
registration statement, to the Company, to an Affiliate of the Investor
or in connection with a pledge as contemplated in Section 4.1(b), the
Company may require the transferor thereof to provide to the Company an
opinion of counsel selected by the transferor, the form and substance
of which opinion shall be reasonably satisfactory to the Company, to
the effect that such transfer does not require registration of such
transferred Securities under the Securities Act.

(b)    Certificates evidencing the Unrestricted Shares will not
contain any legend and as of the Closing Date will be freely tradeable
by the Investor. Certificates evidencing the Note and the Restricted
Shares will contain the following legend, until such time as they are
not required under Section 4.1:

NEITHER THESE SECURITIES
NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES 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 SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE
UPON EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A
BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

The Company
acknowledges and agrees that an Investor may from time to time pledge,
and/or grant a security interest in some or all of the Securities
pursuant to a bona fide margin agreement in connection with a bona fide
margin account and, if required under the terms of such agreement or
account, such Investor may transfer pledged or secured Securities to
the pledgees or secured parties. Such a pledge or transfer would not be
subject to approval or consent of the Company and no legal opinion of
legal counsel to the pledgee, secured party or pledgor shall be
required in connection with the pledge, but such legal opinion may be
required in connection with a subsequent transfer following default by
the Investor transferee of the pledge. No notice shall be required of
such pledge. At the appropriate Investor’s expense, the Company
will execute and deliver such reasonable documentation as a pledgee or
secured party of Securities may reasonably request in connection with a
pledge or transfer of the Securities including the preparation and
filing of any required prospectus supplement under Rule 424(b)(3) of
the Securities Act or other applicable provision of the Securities Act
to appropriately amend the list of selling stockholders
thereunder.

4.2 Furnishing of Information.    As long
as any Investor owns the Securities, the Company covenants to timely
file (or obtain extensions in respect thereof and file within the
applicable grace period) all reports required to be filed by the
Company after the date hereof pursuant to the Exchange Act. As long as
any Investor owns Securities, if the Company is not required to file
reports pursuant to such laws, it will prepare and furnish to the
Investor and make publicly available in accordance with Rule 144(c)
such information as is required for the Investor to sell the Restricted
Shares under Rule 144. The Company further covenants that it will take
such further action as any holder of Securities may reasonably request,
all to the extent required from time to time to enable such Person to
sell the Restricted Shares without registration under the Securities
Act within the limitation of the exemptions provided by Rule 144. The
Unrestricted Shares may be sold at anytime without any
limitation.

9

4.3 Listing of
Securities.    The Company agrees (i) if the Company applies to
have the Common Stock traded on any other Trading Market, it will
include in such application the Restricted Shares, and will take such
other action as is necessary or desirable to cause the Restricted
Shares to be listed on such other Trading Market as promptly as
possible, and (ii) it will take all action reasonably necessary to
continue the listing and trading of its Common Stock on a Trading
Market and will comply in all material respects with the
Company’s reporting, filing and other obligations under the
bylaws or rules of the Trading Market.

4.4 Acknowledgment of
Dilution.    The Company acknowledges that the issuance of
Restricted Shares will result in dilution of the outstanding shares of
Common Stock, which dilution may be substantial.

4.5
Integration.    The Company shall not, and shall use its
best efforts to ensure that no Affiliate of the Company shall, sell,
offer for sale or solicit offers to buy or otherwise negotiate in
respect of any security (as defined in Section 2 of the Securities Act)
that would be integrated with the offer or sale of the Securities in a
manner that would require the registration under the Securities Act of
the sale of the Securities to the Investor, or that would be integrated
with the offer or sale of the Securities for purposes of the rules and
regulations of any Trading Market in a manner that would require
stockholder approval of the sale of the Securities to the
Investor.

4.6 Subsequent Registrations.    Other than
pursuant to the Registration Statement, prior to the Effective Date,
the Company may not file any registration statement with the Commission
with respect to any securities of the Company other than registration
statements on Form S-8 promulgated by the Commission.

4.7
Securities Laws Disclosure; Publicity.    By 9:00 a.m. (New
York City time) on the Trading Day following the execution of this
Agreement, and by 9:00 a.m. (New York City time) on the Trading Day
following the Closing Date, the Company shall issue press releases in
forms approved by the Investor disclosing the transactions contemplated
hereby. On the Trading Day following the execution of this Agreement
the Company will file a Current Report on Form 8-K disclosing the
material terms of the Transaction Documents (and attach as exhibits
thereto the Transaction Documents), and on the Trading Day following
the Closing Date the Company will file an additional Current Report on
Form 8-K to disclose the Closing. In addition, the Company will make
such other filings and notices in the manner and time required by the
Commission and the Trading Market on which the Common Stock is listed.
Notwithstanding the foregoing, the Company shall not publicly disclose
the name of the Investor, or include the name of the Investor in any
filing with the Commission (other than the Registration Statement and
any exhibits to filings made in respect of this transaction in
accordance with periodic filing requirements under the Exchange Act) or
any regulatory agency or Trading Market, without the prior written
consent of the Investor, except to the extent such disclosure is
required by law or Trading Market regulations.

4.8
Indemnification of Investor.    In addition to the indemnity
provided in the Registration Rights Agreement, the Company will
indemnify and hold the Investor and their directors, officers,
shareholders, partners, employees and agents (each, an
‘‘Investor Party’’) harmless
from any and all losses, liabilities, obligations, claims,
contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable
attorneys’ fees and costs of investigation (collectively,
‘‘Losses’’) that any such
Investor Party may suffer or incur as a result of or relating to any
misrepresentation, breach or inaccuracy of any representation,
warranty, covenant or agreement made by the Company in any Transaction
Document. In addition to the indemnity contained herein, the Company
will reimburse each Investor Party for its reasonable legal and other
expenses (including the cost of any investigation, preparation and
travel in connection therewith) incurred in connection therewith, as
such expenses are incurred. Except as otherwise set forth herein, the
mechanics and procedures with respect to the rights and obligations
under this Section 4.8 shall be the same as those set forth in Section
5 of the Registration Rights Agreement.

4.9 Non-Public
Information.    Except as set forth in Section 4.9, the Company
covenants and agrees that neither it nor any other Person acting on its
behalf will provide the Investor or its agents or counsel with any
information that the Company believes constitutes material non-public

10

information, unless prior thereto such
Investor shall have executed a written agreement regarding the
confidentiality and use of such information.

4.10 Use of
Proceeds.    The Company will use the net proceeds from the sale
of the Securities hereunder as follows: (a) $50,000 may be used for the
satisfaction of any portion of outstanding and unpaid legal expenses of
the Company; and (b) the balance may be used for working capital
purposes.

4.11 Existence; Conduct of Business.    The
Company will, and will cause each of the Subsidiaries to, do or cause
to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence and the rights, licenses, permits,
privileges and franchises material to the conduct of its business,
provided, that the foregoing shall not prohibit (a) any sale,
lease, transfer or other disposition permitted by this Agreement, or
(b) any merger of (i) any domestic Subsidiary with any other domestic
Subsidiary, (ii) any domestic Subsidiary with and into the Company, or
(iii) any foreign Subsidiary with any other foreign
Subsidiary.

ARTICLE V.
NEGATIVE COVENANTS

The Company
hereby agrees that, from and after the date hereof until the date that
the Note has either been repaid in its entirety and/or converted
entirely into Common Stock, the Company shall be bound according to the
restrictions set forth in each of the following negative covenants
unless any such restriction shall have been expressly waived in writing
by the Investor:

5.1 Restrictions on Certain
Amendments.    The Company will not amend the rights and
privileges granted under the Note, to adversely affect the rights or
privileges granted under the Note.

5.2 Restricted
Payment.    The Company shall not make any Restricted
Payment.

5.3 Debt.    The Company shall not create,
incur, assume, become or be liable in any manner in respect of, or
suffer to exist, any Debt, except (a) Debt in existence on the date
hereof, (b) trade payables incurred and paid in the ordinary course of
business, (c) Contingent Liabilities in existence on the date hereof,
and (d) Contingent Liabilities resulting from the endorsement of
negotiable instruments for collection in the ordinary course of
business (collectively (a) through (d) shall be referred to as
‘‘Permitted
Indebtedness’’).

5.4
Liens.    The Company shall not create or suffer to exist
any Lien upon any of its properties, except Permitted Liens. Except as
provided in this Section 5.4, the Company shall not hereafter agree
with any Person (other than the Investors) to grant a Lien on any of
its assets or to permit the pledge of any of its equity
interests.

5.5 Amendment of Organizational
Documents.    The Company shall not permit any amendment to its
articles of incorporation so as to adversely affect the rights or
privileges granted under the Note.

5.6 Sale and
Leaseback.    The Company shall not enter into any arrangement
whereby it sells or transfers any of its assets, and thereafter rents
or leases such assets.

5.7 Business.    The Company
shall not change the nature of its business as now conducted (as
described in it’s the Company’s reports filed with the
Commission).

5.8 Transactions with Affiliates.    The
Company shall not, directly or indirectly, pay any funds to or for the
account of, make any investment (whether by acquisition of stock or
indebtedness, by loan, advance, transfer of property, guarantee or
other agreement to pay, purchase or service, directly or indirectly,
any Debt, or otherwise) in, lease, sell, transfer or otherwise dispose
of any assets, tangible or intangible, to, or participate in, or effect
any transaction in connection with any joint enterprise or other joint
arrangement with, any Affiliate, except, on terms no less favorable
than terms that could be obtained by the Company from a Person that is
not an Affiliate of the Company upon negotiation at arms’ length,
as determined in good faith by the Board; provided, that no
determination of the Board of Directors shall be required with respect
to any such transactions entered into in the ordinary course of
business.

5.9 Limitation on Restrictions.    Other
than as permitted by the Transaction Documents, the Company shall not,
and shall not permit any Subsidiary, to enter into, or suffer to exist,
any 

11

agreement with any Person which prohibits or
limits its ability to (a) pay Debt owed to the Investor, except as
expressly permitted by the Security Agreement, and (b) make loans or
advances to the Company, pay dividends or other distributions in
respect of its equity interests to the Company (except that
Subsidiaries may pay dividends or other distributions) or guarantee
Debt of the Company.

5.10 Payment of Cash
Dividend.    The Company agrees, so long as the Note is
outstanding, not to declare, pay or make any provision for any cash
dividend or distribution with respect to the Common Stock of the
Company, without first obtaining the approval of the
Investor.

ARTICLE VI.
MISCELLANEOUS

6.1 Fees and
Expenses.    Each party shall pay the fees and expenses of its
advisers, counsel, accountants and other experts, if any, and all other
expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of the Transaction
Documents. The Company shall pay all stamp and other taxes and duties
levied in connection with the sale of the Note.

6.2 Entire
Agreement.    The Transaction Documents, together with the
Exhibits and Schedules thereto, contain the entire understanding of the
parties with respect to the subject matter hereof and supersede all
prior agreements, understandings, discussions and representations, oral
or written, with respect to such matters, which the parties acknowledge
have been merged into such documents, exhibits and schedules.

6.3
Notices.    Any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (a)
the date of transmission, if such notice or communication is delivered
via facsimile (provided the sender receives a machine-generated
confirmation of successful transmission) at the facsimile number
specified in this Section prior to 5:30 p.m. (New York City time) on a
Trading Day, (b) the next Trading Day after the date of transmission,
if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section on a day that is not a
Trading Day or later than 5:30 p.m. (New York City time) on any Trading
Day, (c) the Trading Day following the date of mailing, if sent by U.S.
nationally recognized overnight courier service, or (d) upon actual
receipt by the party to whom such notice is required to be given. The
address for such notices and communications shall be as
follows:

			
		If to the Company: 	TAG
Entertainment Corp.
1333 Second Street, Suite 240
Santa Monica,
CA 90401
Facsimile: (310) 260-3351
Attention: Chief Financial
Officer

			
		With a copy to: 	Goldstein
& DiGioia, LLP
45 Broadway, 11th Floor
New York, New York
10006
Facsimile: (212) 557-0295
 Attn: Victor DiGioia,
Esq.

			
		If to an Investor: 	To the
address set forth under such Investor’s name on the signature
pages hereof;

or such other address as may be designated in
writing hereafter, in the same manner, by such Person.

6.4
Amendments; Waivers; No Additional Consideration.    No
provision of this Agreement may be waived or amended except in a
written instrument signed by the Company and the Investor. No waiver of
any default with respect to any provision, condition or requirement of
this Agreement shall be deemed to be a continuing waiver in the future
or a waiver of any subsequent default or a waiver 

12

of any other provision, condition or
requirement hereof, nor shall any delay or omission of either party to
exercise any right hereunder in any manner impair the exercise of any
such right. Without the written consent or the affirmative vote of the
Investor affected thereby, an amendment or waiver under this Section
6.4 may not:

(a) change the maturity of the
principal amount of, or the interest payment date under, or the payment
of liquidated damages, is due on, the Note;

(b)
make any change that impairs the conversion or exercise rights of any
Securities;

(c) amend or modify in any manner
adverse to the Holders of Securities the Company’s obligation to
make such payments;

(d) change the currency of
any amount owed or owing under the Securities or any interest thereon
from U.S. Dollars;

(e) impair the right of the
Investor to institute suit for the enforcement of any payment with
respect to, or conversion or exercise of, any Security;
or

(f) modify the provisions of this Section
6.4 or Section 6.5.

It shall not be necessary for the consent of
the Investor under this Section 6.4 to approve the particular form of
any proposed amendment, but it shall be sufficient if such consent
approves the substance thereof.

6.5
Termination.    This Agreement may be terminated prior to
the Closing:

(a) by written agreement of the
Investor and the Company;

(b) by the Company or
the Investor upon written notice to the other, if the Closing shall not
have taken place by 5:30 p.m. (New York City time) on the Outside Date;
provided, that the right to terminate this Agreement under
this Section 6.5(b) shall not be available to any Person whose
failure to comply with its obligations under this Agreement has been
the cause of or resulted in the failure of the Closing to occur on or
before such time.

(c) by an Investor if it
concludes in good faith that any of the conditions precedent contained
in Sections 2.1(d)(iv), (v) or (vi) shall have been breached or shall
not be capable of being satisfied by the Outside Date despite the
assumed best efforts of the Company.

In the
event of a termination pursuant to this Section, the Company shall
promptly notify the Investor and shall pay to the Investor all of the
fees and expenses incurred by such Investor (including reasonable legal
fees and expenses which in no event shall exceed $30,000) in connection
with this Agreement and the transactions contemplated by this Agreement
through the termination date, provided that Investor provides the
Company with an itemized reporting of such fees and expenses. Other
than as to the foregoing fees and expenses, upon a termination in
accordance with this Section 6.5, the Company and the Investor shall
not have any further obligation or liability (including as arising from
such termination) to the other under the Transaction Documents as a
result therefrom.

6.6 Construction.    The headings
herein are for convenience only, do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the
provisions hereof. The language used in this Agreement will be deemed
to be the language chosen by the parties to express their mutual
intent, and no rules of strict construction will be applied against any
party. This Agreement shall be construed as if drafted jointly by the
parties, and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any provisions of
this Agreement or any of the Transaction Documents.

6.7
Successors and Assigns.    This Agreement shall be binding
upon and inure to the benefit of the parties and their successors and
permitted assigns. The Company may not assign this Agreement or any
rights or obligations hereunder without the prior written consent of
the Investor. The Investor may assign any or all of its rights under
this Agreement to any Person to whom such Investor assigns or transfers
the Note, provided the Investor delivers prior written notice thereof
to the Company and 

13

such transferee agrees in writing to be
bound, with respect to the transferred Securities, by the provisions
hereof that apply to the
‘‘Investor.’’

6.8 No Third-Party
Beneficiaries.    This Agreement is intended for the benefit of
the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be
enforced by, any other Person, except as otherwise set forth in Section
4.8 (as to each Investor Party).

6.9 Governing
Law.    All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by
and construed and enforced in accordance with the internal laws of the
State of New York, without regard to the principles of conflicts of law
thereof. Each party agrees that all Actions concerning the
interpretations, enforcement and defense of the transactions
contemplated by this Agreement and any other Transaction Documents
(whether brought against a party hereto or its respective Affiliates,
employees or agents) shall be commenced exclusively in the New York
Courts. Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the New York Courts for the adjudication of any dispute
hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein (including with respect to the
enforcement of the any of the Transaction Documents), and hereby
irrevocably waives, and agrees not to assert in any Action, any claim
that it is not personally subject to the jurisdiction of any such New
York Court, or that such Action has been commenced in an improper or
inconvenient forum. Each party hereto hereby irrevocably waives
personal service of process and consents to process being served in any
such Action by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Agreement and agrees
that such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be deemed to
limit in any way any right to serve process in any manner permitted by
law. Each party hereto hereby irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any
legal proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby. If either party shall commence an
Action to enforce any provisions of a Transaction Document, then the
prevailing party in such Action shall be reimbursed by the other party
for its reasonable attorneys’ fees and other costs and expenses
incurred with the investigation, preparation and prosecution of such
Action.

6.10 Survival.    The representations,
warranties, agreements and covenants contained herein shall survive the
Closing and the delivery of the Securities.

6.11
Execution.    This Agreement may be executed in two or more
counterparts, all of which when taken together shall be considered one
and the same agreement and shall become effective when counterparts
have been signed by each party and delivered to the other party, it
being understood that both parties need not sign the same counterpart.
In the event that any signature is delivered by facsimile transmission,
such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile signature page were an original
thereof.

6.12 Severability.    If any provision of
this Agreement is held to be invalid or unenforceable in any respect,
the validity and enforceability of the remaining terms and provisions
of this Agreement shall not in any way be affected or impaired thereby
and the parties will attempt to agree upon a valid and enforceable
provision that is a reasonable substitute therefor, and upon so
agreeing, shall incorporate such substitute provision in this
Agreement.

6.13 Rescission and Withdrawal
Right.    Notwithstanding anything to the contrary contained in
(and without limiting any similar provisions of) the Transaction
Documents, whenever any Investor exercises a right, election, demand or
option under a Transaction Document and the Company does not timely
perform its related obligations within the periods therein provided,
then such Investor may rescind or withdraw, in its sole discretion from
time to time upon written notice to the Company, any relevant notice,
demand or election in whole or in part without prejudice to its future
actions and rights.

6.14 Replacement of
Securities.    If any certificate or instrument evidencing any
Securities is mutilated, lost, stolen or destroyed, the Company shall
issue or cause to be issued in exchange and 

14

substitution for and upon cancellation
thereof, or in lieu of and substitution therefor, a new certificate or
instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction and customary and
reasonable indemnity (which shall not include a surety bond), if
requested. The applicants for a new certificate or instrument under
such circumstances shall also pay any reasonable third-party costs
associated with the issuance of such replacement Securities. If a
replacement certificate or instrument evidencing any Securities is
requested due to a mutilation thereof, the Company may require delivery
of such mutilated certificate or instrument as a condition precedent to
any issuance of a replacement.

6.15 Remedies.    In
addition to being entitled to exercise all rights provided herein or
granted by law, including recovery of damages, each of the Investor and
the Company will be entitled to specific performance under the
Transaction Documents. The parties agree that monetary damages may not
be adequate compensation for any loss incurred by reason of any breach
of obligations described in the foregoing sentence and hereby agrees to
waive in any action for specific performance of any such obligation the
defense that a remedy at law would be adequate.

6.16 Payment
Set Aside.    To the extent that the Company makes a payment or
payments to any Investor pursuant to any Transaction Document or an
Investor enforces or exercises its rights thereunder, and such payment
or payments or the proceeds of such enforcement or exercise or any part
thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside, recovered from, disgorged by or are required
to be refunded, repaid or otherwise restored to the Company, a trustee,
receiver or any other person under any law (including, without
limitation, any bankruptcy law, state or federal law, common law or
equitable cause of action), then to the extent of any such restoration
the obligation or part thereof originally intended to be satisfied
shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or setoff had not
occurred.

6.17 Limitation of
Liability.    Notwithstanding anything herein to the contrary,
the Company acknowledges and agrees that the liability of an Investor
arising directly or indirectly, under any Transaction Document of any
and every nature whatsoever shall be satisfied solely out of the assets
of such Investor, and that no trustee, officer, other investment
vehicle or any other Affiliate of such Investor or any investor,
shareholder or holder of shares of beneficial interest of such a
Investor shall be personally liable for any liabilities of such
Investor.

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK
SIGNATURE PAGES FOLLOW]

15

IN WITNESS WHEREOF, the parties hereto
have caused this Purchase Agreement to be duly executed by their
respective authorized signatories as of the date first indicated
above.

		TAG ENTERTAINMENT
CORP.

		By:
                                                                    

		Name:
                                  
Title:
                                                                                    

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK
SIGNATURE PAGES FOR
INVESTOR FOLLOWS]

16

IN WITNESS WHEREOF, the parties hereto
have caused this Purchase Agreement to be duly executed by their
respective authorized signatories as of the date first indicated
above.

		NAME OF
INVESTOR

		                                                                                    

		By:
                                                                            

		Name:
                                                   
Title:
                                                                                     

		Investment
Amount:
$                                            

		Tax
ID No.:
                                                               

		ADDRESS FOR NOTICE

		c/o:
                                                                               

		Street:
                                                                          

		City/State/Zip:
                                                           

		Attention:
                                                                   

		Tel:
                                                                               

		Fax:
                                                                               

		DELIVERY
INSTRUCTIONS 

		(if different from
above)

		c/o:
                                                                                

		Street:
                                                                            

		City/State/Zip:
                                                               

		Attention:
                                                                     

		Tel:
                                                                                 

17

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