Document:

EXHIBIT 10.54

                               REGISTER.COM, INC.
                  EXECUTIVE CHANGE IN CONTROL SEVERANCE PROGRAM

     The Board of Directors of Register.com, Inc. (the "Company") recognizes
that, as is the case with many publicly-held corporations, there exists the
possibility of a Change in Control Transaction, which may result in the loss or
distraction of employees of the Company and its subsidiaries to the detriment of
the Company and its shareholders. The Board considers the avoidance of such loss
and distraction to be essential to protecting and enhancing the best interests
of the Company and its shareholders. In order to assure the Company of the
continued employment and dedication of its employees and to seek to ensure the
availability of their continued service, the Company has adopted the Program.
Capitalized terms not otherwise defined in this Program are defined in Exhibit A
to this Program.

     1. EMPLOYEES COVERED. The Program shall cover all U.S. employees of the
Company and its subsidiaries who are employed by the Company or any of its
subsidiaries as of the date that a Change in Control Transaction occurs and are
listed on Exhibit B ("Participants").

     2. SEVERANCE BENEFITS.

         (a) CHANGE IN CONTROL SEVERANCE BENEFITS. Subject to Section 4, if
     within one (1) year following a Change in Control that occurs on or prior
     to May 31, 2005, a Participant's employment is terminated (i) by the
     Company or its subsidiaries other than for Cause, death or Disability or
     (ii) by reason of the Participant's resignation for Good Reason, the
     Participant shall be paid by the Company, within thirty (30) days following
     such termination of employment, a lump sum cash payment equal to twelve
     (12) times the Participant's Monthly Base Salary.

         (b) EFFECTIVE CHANGE IN CONTROL SEVERANCE BENEFITS. Subject to Section
     4, if within one (1) year following an Effective Change in Control that
     occurs on or prior to May 31, 2005, a Participant's employment is
     terminated (i) by the Company or its subsidiaries other than for Cause,
     death or Disability or (ii) by reason of the Participant's resignation for
     Good Reason, the Participant shall be paid by the Company, within thirty
     (30) days following such termination of employment, a lump sum cash payment
     equal to five (5) times the Participant's Monthly Base Salary.

     3. OTHER TERMINATIONS OF EMPLOYMENT. If a Participant's employment is
terminated (i) prior to a Change in Control Transaction or (ii) after a Change
in Control Transaction by the Company for Cause or by the Participant (other
than for Good Reason), the Participant shall not be entitled to any severance
benefits under Section 2.

     4. RELEASE. No severance benefit described in Section 2 shall be paid to a
Participant unless such Participant executes and delivers to the Company (to
Legal Department, Register.com, Inc., 575 Eighth Avenue, 11th Floor, NY, NY
10018) the Release in substantially the form set forth as Exhibit C, and does
not revoke the Release.

     5. NON-EXCLUSIVITY OF RIGHTS. Nothing in this Program shall prevent or
limit a Participant's continuing or future participation in any benefit, bonus,
incentive or other plan, program, arrangement or policy provided by the Company
or any of its subsidiaries for which a Participant

and/or Participant's dependents may qualify. Amounts that are vested benefits or
that a Participant and/or a Participant's dependents are otherwise entitled to
receive under any plan, program, arrangement, or policy of the Company or any of
its subsidiaries shall be payable in accordance with such plan, program,
arrangement or policy.

     6. NO SET-OFF; NO DUTY TO MITIGATE. The Company's obligation to make the
payments provided for in this Program and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against a
Participant or others; provided, that any amounts payable under Section 2 shall
be reduced on a dollar-for-dollar basis by (i) any amounts otherwise due to the
Participant under the Worker Adjustment and Retraining Notification Act and the
regulations promulgated thereunder, as amended, or any similar state or local
statute ("WARN"), (ii) the amount of base salary paid to the Participant by the
Company or its subsidiaries after notice is given to a Participant pursuant to
WARN and (iii) any other cash severance payments which the Participant is
legally entitled to receive from the Company or its subsidiaries. In no event
shall a Participant be obligated to seek other employment or take any other
action by way of mitigation of the amounts payable to such Participant under any
of the provisions of this Program.

     7. CONTROLLING LAW. This Program shall be construed and enforced according
to the internal laws of the State of New York to the extent not preempted by
Federal law, which shall otherwise control.

     8. AMENDMENTS; TERMINATION. The Company reserves the right to amend,
modify, suspend or terminate the Program at any time; provided that no such
amendment, modification, suspension or termination that has the effect of
reducing or diminishing the right of any Participant (including without
limitation eliminating a Participant from Exhibit B) shall be effective for one
year following the Effective Date or after the occurrence of a Change in Control
Transaction. Notwithstanding the foregoing, this Program shall terminate on the
first anniversary of the Change in Control Transaction, other than with respect
to payments or benefits to be paid or provided as a result of events that occur
prior to the first anniversary of the Change in Control Transaction.

     9. ASSIGNABILITY. The Company shall require any corporation, entity,
individual or other person who is the successor (whether direct or indirect by
purchase, merger, consolidation, reorganization or otherwise) to all or
substantially all the business of the Company to expressly assume and agree to
perform, by a written agreement in form and in substance satisfactory to the
Company, all of the obligations of the Company under this Program. As used in
this Program, the term "Company" shall mean the Company as hereinbefore defined
and any successor to its business and/or assets as aforesaid which assumes and
agrees to perform this Program by operation of law, written agreement or
otherwise. It is a condition of this Program, and all rights of each person
eligible to receive benefits under this Program shall be subject hereto, that no
right or interest of any such person in this Program shall be assignable or
transferable in whole or in part, except by operation of law, including, but not
by way of limitation, lawful execution, levy, garnishment, attachment, pledge,
bankruptcy, alimony, child support or qualified domestic relations order or by
will or the laws of descent and distribution.

     10. WITHHOLDING. The Company may withhold from any amount payable or
benefit provided under this Program such Federal, state, local, foreign and
other taxes as are required to be withheld pursuant to any applicable law or
regulation.

     11. GENDER AND PLURALS. Wherever used in this Program document, words in
the masculine gender shall include masculine or feminine gender, and, unless the
context otherwise requires, words in the singular shall include the plural, and
words in the plural shall include the singular.

     12. PROGRAM CONTROLS. In the event of any inconsistency between this
Program document and any other communication regarding this Program, this
Program document controls.

     13. PROGRAM ADMINISTRATOR. This Program shall be administered by the
Company or its designee ("Administrator") as shall be designated from time to
time, provided that in the event of an impending Change in Control Transaction,
the Administrator may appoint a person independent of the Company or persons
operating under its control or on its behalf to be the Administrator effective
upon the occurrence of a Change in Control Transaction, and such Administrator
shall not be removed following a Change in Control Transaction. The decision of
the Administrator upon all matters within the scope of its authority shall be
conclusive and binding on all parties.

     14. BENEFIT CLAIMS AND APPEALS. The Administrator shall establish a claims
and appeals procedure. The Administrator shall have full discretionary authority
to determine the amount and timing of any benefit to be paid under the Program.
Unless otherwise required by applicable law, such procedures will provide that
the Participant has not less than sixty (60) days following receipt of any
adverse benefit determination within which to appeal the determination in
writing with the Administrator, and that the Administrator must respond in
writing within sixty (60) days of receiving the appeal, specifically identifying
those Program provisions on which the benefit denial was based and indicating
what, if any, information the Participant must supply in order to perfect a
claim for benefits.

     15. INDEMNIFICATION. To the extent permitted by law, the Company shall
indemnify the Administrator from all claims for liability, loss, or damage
(including the payment of expenses in connection with defense against such
claims) arising from any act or failure to act in connection with the Program.

                                    EXHIBIT A
                                    ---------

                                   DEFINITIONS
                                   -----------

"Board" means the Board of Directors of the Company.

"Cause" means (i) a Participant's conviction of, or plea of guilty or nolo
contendere to, a felony (other than a traffic-related felony), (ii) gross
negligence or willful misconduct by the Participant having a material adverse
impact on the Company or (iii) the Participant's willful refusal to attempt to
perform his job duties (other than due to Disability or an approved leave) after
receipt of written notice from the Company.

"Change in Control" means the occurrence of any of the following events on or
prior to May 31, 2005:

     (a) The acquisition by any individual, entity or group (within the meaning
of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the "Exchange Act")) (a "Person") of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of
either (x) the then outstanding shares of common stock of the Company (the
"Outstanding Company Common Stock") or (y) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors (the "Outstanding Company Voting Securities"); provided,
however, that for purposes of this subsection (i), the following acquisitions
shall not constitute a Change in Control: (A) any acquisition directly from the
Company, (B) any acquisition by the Company, (C) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company, or (D) any acquisition by any corporation
pursuant to a transaction which complies with clauses (A), (B) and (C) of
paragraph (c) below; or

     (b) Individuals who, as of the Effective Date, constitute the Board (the
"Incumbent Board") cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a director subsequent to
the Effective Date whose election, or nomination for election by the Company's
shareholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or

     (c) Consummation of a reorganization, merger, consolidation, sale or other
disposition of all or substantially all of the assets of the Company or an
acquisition of the assets of another entity (a "Business Combination"), in each
case, unless, following such Business Combination, (A) all or substantially all
of the individuals and entities who were the beneficial owners, respectively, of
the Outstanding Company Common Stock and Outstanding Company Voting Securities
immediately prior to consummation of such Business Combination beneficially own,
directly or indirectly, more than 50% of, respectively, the then outstanding
shares of Common stock and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors (or
other governing body, if applicable), as the case may be,

                                      -4-

of the entity resulting from such Business Combination (including, without
limitation, an entity which as a result of such transaction owns the Company or
all or substantially all of the Company's assets either directly or through one
or more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to consummation of such Business Combination of the
Outstanding Company Common Stock and Outstanding Company Voting Securities, as
the case may be, (B) no Person (excluding any corporation resulting from such
Business Combination or any employee benefit plan (or related trust))
beneficially owns, directly or indirectly, 50% or more of, respectively, the
then outstanding shares of common stock of the entity resulting from such
Business Combination or of the combined voting power of the then outstanding
voting securities of such entity, except to the extent that such ownership
existed prior to consummation of the Business Combination, and (C) at least a
majority of the members of the board of directors (or other governing body, if
applicable) of the entity resulting from such Business Combination were members
of the Incumbent Board at the time of the execution of the initial agreement, or
of the action of the Board, providing for such Business Combination; or

     (d) Approval by the shareholders of the Company of a complete liquidation
or dissolution of the Company.

"Change in Control Transaction" means the first to occur of a Change in Control
or an Effective Change in Control.

"Company" means Register.com, Inc., a Delaware corporation.

"Disability" means "Disability" as defined under a long-term disability plan of
the Company applicable to the Participant, or if the Participant is party to an
Individual Agreement, "Disability" as defined therein.

"Effective Change in Control" means, on or prior to May 31, 2005, consummation
of a Business Combination unless, following such Business Combination, either
(i) all of the following are true: (A) all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities
immediately prior to consummation of such Business Combination beneficially own,
directly or indirectly, more than 75%, respectively, the then outstanding shares
of Common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors (or other
governing body, if applicable), as the case may be, of the entity resulting from
such Business Combination (including, without limitation, an entity which as a
result of such transaction owns the Company or all or substantially all of the
Company's assets either directly or through one or more subsidiaries) in
substantially the same proportions as their ownership, immediately prior to
consummation of such Business Combination of the Outstanding Company Common
Stock and Outstanding Company Voting Securities, as the case may be, (B) no
Person (excluding any corporation resulting from such Business Combination or
any employee benefit plan (or related trust)) beneficially owns, directly or
indirectly, 50% or more of, respectively, the then outstanding shares of common
stock of the entity resulting from such Business Combination or of the combined
voting power of the then outstanding voting securities of such entity, except to
the extent that such ownership existed prior to consummation of the Business
Combination, and (C) at least a majority of the members of the board of
directors (or other governing body, if applicable) of the entity resulting from
such Business

Combination were members of the Incumbent Board at the time of the execution of
the initial agreement, or of the action of the Board, providing for such
Business Combination or (ii) such transaction constitutes a Change in Control.

"Effective Date" means the date that the Program is adopted by the Board.

"Good Reason" means, without the Participant's written consent: (i) the
relocation of the Participant's place of employment to a location in excess of
thirty-five (35) miles from the place of the Participant's employment
immediately prior to a Change in Control Transaction; or (ii) any reduction by
the Company of the Participant's annual rate of base pay or salary from the
annual rate of base pay or salary for such Participant immediately prior to the
Change in Control Transaction; or (iii) the failure of the Company to obtain
from a successor (including a successor to a material portion of the business or
assets of the Company) a satisfactory assumption in writing of the Company's
obligations under this Program; provided, that the Participant shall give the
Company thirty (30) days' written notice and opportunity to cure prior to any
termination for Good Reason based on the grounds specified herein. In addition,
any termination of an Participant's employment for "Good Reason" under any
Individual Agreement shall also be a termination of employment for Good Reason
under this Program.

"Individual Agreement" means any individual employment agreement or severance
agreement between the Company and the Participant.

"Monthly Base Salary" means the higher of (i) the Participant's monthly base
salary as in effect immediately prior to the Change in Control Transaction and
(ii) the Participant's highest monthly base salary in effect at any time
thereafter.

"Program" means The Register.com, Inc. Executive Change in Control Severance
Program.

                                    EXHIBIT B
                                    ---------

Jonathan Stern

Stuart Horowitz

Kanchan Mhatre

Stephen Smith

Alan Kipust

Stephanie Marks

Roni Jacobson

Ian Fish

Monica Hodges

David Saias

Sushant Mohanty

                                    EXHIBIT C
                                    ---------

                                     RELEASE
                                     -------

1.   GENERAL RELEASE. In consideration of the payments and benefits set forth in
     The Register.com, Inc. Executive Change in Control Severance Program (the
     "Program"), _______________ (the "Employee") for himself, his heirs,
     administrators, representatives, executors, successors and assigns
     (collectively "Releasors") does hereby irrevocably and unconditionally
     release, acquit and forever discharge Register.com, Inc. (the "Company")
     and its subsidiaries, affiliates and divisions and their respective,
     current and former trustees, officers, directors, partners, shareholders,
     agents, advisors, representatives, and employees, including without
     limitation all persons acting by, through, under or in concert with any of
     them (collectively, "Releasees"), and each of them from any and all
     charges, complaints, claims, liabilities, obligations, promises,
     agreements, controversies, damages, remedies, actions, causes of action,
     suits, rights, demands, costs, losses, debts and expenses (including
     attorneys' fees and costs) of any nature whatsoever, known or unknown,
     whether in law or equity and whether arising under federal, state or local
     law and in particular including any claim for discrimination based upon
     race, color, ethnicity, sex, age (including the Age Discrimination in
     Employment Act of 1967), national origin, religion, disability, or any
     other unlawful criterion or circumstance, which the Employee and Releasors
     had, now have, or may have in the future against each or any of the
     Releasees from the beginning of the world until the date hereof in
     connection with the Employee's employment and termination thereof
     (collectively, "Claims").

2.   [RELEASE OF DISCRIMINATION CLAIMS. Without in any way limiting the
     generality of the foregoing, this Release constitutes a full release and
     disclaimer of any and all Claims arising out of or relating in any way to
     the Employee's employment, continued employment, retirement, resignation,
     or termination of employment with the Company, whether arising under or out
     of a statute including, but not limited to, Title VII of the Civil Rights
     Act of 1964, 42 U.S.C. ss. 1981, the Age Discrimination in Employment Act
     of 1967, the Older Workers Benefit Protection Act of 1990, the Family and
     Medical Leave Act, the National Labor Relations Act, the Worker Adjustment
     and Retraining Notification Act, the Americans With Disabilities Act, any
     county, municipal, and any other federal, state or local statute, ordinance
     or regulation, all as may be amended from time to time, or common law
     claims or causes of action relating to alleged discrimination, breach of
     contract or public policy, wrongful or retaliatory discharge, tortious
     action, inaction, or interference of any sort, defamation, libel, slander,
     personal or business injury, including without limitation attorneys' fees
     and costs, all Claims for salary, bonus, vacation pay, and reimbursement
     for expenses. The Employee has specifically waived his right to recover in
     his own lawsuit as well as the right to recover in a suit brought by any
     other person or entity on the Employee's behalf or on behalf of a class of
     persons in which the Employee is or could be considered a member.

3.   ENFORCEABILITY OF PROPRIETARY INFORMATION, INVENTION AND NONSOLICITATION
     AGREEMENT. The parties acknowledge that nothing herein affects the
     Employee's rights, obligations and duties as set forth in the Proprietary
     Information, Inventions and Nonsolicitation Agreement annexed hereto as
     Exhibit C-1 and its provisions are expressly incorporated and made part of
     this Release.

4.   EMPLOYEE'S RIGHT TO REVOKE. The parties acknowledge that the Employee shall
     have the right to revoke and cancel this Release at any time within the
     seven-day period following its execution. If the Employee desires to revoke
     and cancel this Release, he must do so in writing to Legal Department,
     Register.com, Inc., 575 Eighth Avenue, 11th Floor, NY, NY 10018, and all
     terms of the Release shall be void and of no effect. If this Release is
     canceled and revoked by the Employee, the Company shall have no obligations
     under the Program.

5.   EMPLOYEE'S RIGHT TO CONSULT ATTORNEY/45 DAYS TO CONSIDER. The Employee is
     advised and encouraged by the Company to consult with an attorney before
     signing this Release. The Employee affirms that he has carefully read and
     fully understands this Release, has had sufficient time to consider it, has
     had an opportunity to ask questions and have it explained, and is entering
     into this Release freely and voluntarily, with an understanding that the
     general release will have the effect of waiving any action or recovery he
     might pursue for any Claims arising on or prior to the date of the
     execution of this Release. This Release was given to the Employee on
     <<Notice_Date>>. The Employee had until <<Notice_Date>>, a period in excess
     of 45 days to consider it.](A)

6.   EXCLUSIONS FROM RELEASE. Expressly excluded from the release provided in
     this Release are (i) any Claims by the Releasors for compensation and
     benefits to be provided to the Employee under the Program or any written
     employment, consulting or similar agreement between the Employee and the
     Company or any of its subsidiaries, (ii) any Claims by the Releasors for
     accrued or vested benefits to which the Employee may be entitled under any
     of the benefit plans, programs, policies of the Company and its
     subsidiaries in which the Employee participates, and (iii) any Claims by
     the Releasors related to the Employee's indemnification as an officer,
     director and employee of the Company or its subsidiaries. The parties agree
     that this Release shall not affect the rights and responsibilities of the
     US Equal Employment Opportunity Commission (hereinafter "EEOC") to enforce
     the Age Discrimination in Employment Act of 1967, as amended and other
     laws. In addition, the parties agree that this Release shall not be used to
     justify interfering with the Employee's protected right to file a charge or
     participate in an investigation or proceeding conducted by the EEOC. The
     parties further agree that the Employee knowingly and voluntarily waives
     all Claims that arose prior to the date hereof that the Releasors may have
     against the Releasees, or any of them, to receive any benefit or remedial
     relief (including, but not limited to, reinstatement, back pay, front pay,
     damages, attorneys' fees, experts' fees) as a consequence of any
     investigation or proceeding conducted by the EEOC.

7.   GOVERNING LAW. This Release shall be governed and construed in accordance
     with the laws of the State of New York, without regard to principles of
     conflict of laws.

8.   REFORMATION. In case any provision or provisions contained in this Release
     shall for any reason be held to be invalid, illegal or unenforceable in any
     respect by any court or administrative body with competent jurisdiction,
     such invalidity, illegality or unenforceability shall not affect the
     remaining provisions hereof, which shall remain in full force and effect.
     Any

----------------------
(A)  For employees age 40 and over only.

     provision(s) so determined to be invalid, illegal or unenforceable shall be
     reformed so that they are valid, legal and enforceable to the fullest
     extent permitted by law.

                                                Employee:

                                                --------------------------------
                                                [        ]
                                                Date:____________
     Accepted and Acknowledged:

     REGISTER.COM, INC.

     ------------------------------------
     By:EXECUTION COPY

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED FOR SALE, SOLD OR
TRANSFERRED UNLESS A REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS SHALL BE EFFECTIVE WITH RESPECT THERETO, OR AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS IS
AVAILABLE IN CONNECTION WITH SUCH OFFER, SALE OR TRANSFER. SUBJECT TO COMPLIANCE
WITH THE REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
LAWS, THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT (I)
MAY BE PLEDGED OR HYPOTHECATED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
OTHER LOAN SECURED BY THIS WARRANT OR ANY OF THE SECURITIES ISSUABLE UPON
EXERCISE OF THIS WARRANT AND (II) MAY BE TRANSFERRED OR ASSIGNED TO AN AFFILIATE
OF THE HOLDER HEREOF.

                                     WARRANT

                            TO PURCHASE COMMON STOCK

                                       OF

                             TAG ENTERTAINMENT CORP.

Issue Date:  May__, 2005                                          Warrant No. __

         THIS CERTIFIES that SATELLITE STRATEGIC FINANCE ASSOCIATES, LLC/
SATELLITE STRATEGIC FINANCE PARTNERS, LTD. or any subsequent holder hereof (the
"Holder"), has the right to purchase from TAG ENTERTAINMENT CORP., a Delaware
corporation (the "Company"), up to [________] fully paid and nonassessable
shares of the Company's common stock, par value $0.001 per share (the "Common
Stock"), subject to adjustment as provided herein, at a price per share equal to
the Exercise Price (as defined below), at any time and from time to time
beginning on the date on which this Warrant is originally issued (the "Issue
Date") and ending at 6:00 p.m., eastern time, on the date that is the seventh
(7th) anniversary of the Issue Date (or, if such date is not a Business Day, on
the Business Day immediately following such date) (the "Expiration Date"). This
Warrant is issued pursuant to a Securities Purchase Agreement, dated as of May
3, 2005 (the "Securities Purchase Agreement"). Capitalized terms used herein and
not otherwise defined shall have the respective meanings set forth in the
Securities Purchase Agreement.

         1. Exercise.

         (a) Right to Exercise; Exercise Price. The Holder shall have the right
to exercise this Warrant at any time and from time to time during the period
beginning on the Issue Date and ending on the Expiration Date as to all or any
part of the shares of Common Stock covered hereby (the "Warrant Shares"). The
"Exercise Price" for each Warrant Share purchased by the Holder upon the
exercise of this Warrant shall be equal to $2.50, subject to adjustment for the
events specified in Section 6 below.

         (b) Exercise Notice. In order to exercise this Warrant, the Holder
shall send to the Company by facsimile transmission, at any time prior to 6:00
p.m., eastern time, on the Business Day on which the Holder wishes to effect
such exercise (the "Exercise Date"), (i) a notice of exercise in substantially
the form attached hereto as Exhibit A (the "Exercise Notice"), and (ii) a copy
of the original Warrant, and, in the case of a Cash Exercise (as defined below),
the Holder shall pay the Exercise Price to the Company by wire transfer of
immediately available funds. The Exercise Notice shall state the name or names
in which the shares of Common Stock that are issuable on such exercise shall be
issued. In the case of a dispute between the Company and the Holder as to the
calculation of the Exercise Price or the number of Warrant Shares issuable
hereunder (including, without limitation, the calculation of any adjustment
pursuant to Section 6 below), the Company shall issue to the Holder the number
of Warrant Shares that are not disputed within the time periods specified in
Section 2 below and shall submit the disputed calculations to a certified public
accounting firm of national reputation (other than the Company's regularly
retained accountants) within two (2) Business Days following the date on which
the Holder's Exercise Notice is delivered to the Company. The Company shall use
commercially reasonable efforts to cause such accountant to calculate the
Exercise Price and/or the number of Warrant Shares issuable hereunder and to
notify the Company and the Holder of the results in writing no later than three
(3) Business Days following the day on which such accountant received the
disputed calculations (the "Dispute Procedure"). Such accountant's calculation
shall be deemed conclusive absent manifest error. The fees of any such
accountant shall be borne by the party whose calculations were most at variance
with those of such accountant.

         (c) Holder of Record. The Holder shall, for all purposes, be deemed to
have become the holder of record of the Warrant Shares specified in an Exercise
Notice on the Exercise Date specified therein, irrespective of the date of
delivery of such Warrant Shares. Except as specifically provided herein, nothing
in this Warrant shall be construed as conferring upon the Holder hereof any
rights as a stockholder of the Company prior to the Exercise Date.

         (d) Cancellation of Warrant. This Warrant shall be canceled upon its
exercise in full and, if this Warrant is exercised in part, the Company shall,
at the time that it delivers Warrant Shares to the Holder pursuant to such
exercise as provided herein, issue a new warrant, and deliver to the Holder a
certificate representing such new warrant, with terms identical in all respects
to this Warrant (except that such new warrant shall be exercisable into the
number of shares of Common Stock with respect to which this Warrant shall remain
unexercised); provided, however, that the Holder shall be entitled to exercise
all or any portion of such new warrant at any time following the time at which
this Warrant is exercised, regardless of whether the Company has actually issued
such new warrant or delivered to the Holder a certificate therefor.

                                      -2-

         2. Delivery of Warrant Shares Upon Exercise. Upon receipt of a fax copy
of an Exercise Notice pursuant to Section 1 above, the Company shall, (A) in the
case of a Cash Exercise, no later than the close of business on the later to
occur of (i) the third (3rd) Business Day following the Exercise Date specified
in such Exercise Notice and (ii) such later date on which the Company shall have
received payment of the Exercise Price, (B) in the case of a Cashless Exercise
(as defined below), no later than the close of business on the third (3rd)
Business Day following the Exercise Date specified in such Exercise Notice, and
(C) with respect to Warrant Shares that are the subject of a Dispute Procedure,
the close of business on the third (3rd) Business Day following the
determination made pursuant to Section 1(b) (each of the dates specified in (A),
(B) or (C) being referred to as a "Delivery Date"), issue and deliver or caused
to be delivered to the Holder the number of Warrant Shares as shall be
determined as provided herein. The Company shall effect delivery of Warrant
Shares to the Holder, as long as the Company's designated transfer agent (the
"Transfer Agent") participates in the Depository Trust Company ("DTC") Fast
Automated Securities Transfer program ("FAST") and no restrictive legend is
required pursuant to the terms of this Warrant or the Securities Purchase
Agreement, by crediting the account of the Holder or its nominee at DTC (as
specified in the applicable Exercise Notice) with the number of Warrant Shares
required to be delivered, no later than the close of business on such Delivery
Date. In the event that the Transfer Agent is not a participant in FAST or if
the Warrant Shares are not eligible to be delivered through the FAST system or
if the Holder so specifies in a Exercise Notice or otherwise in writing on or
before the Exercise Date, the Company shall effect delivery of Warrant Shares by
delivering to the Holder or its nominee physical certificates representing such
Warrant Shares, no later than the close of business on such Delivery Date.
Warrant Shares delivered to the Holder shall not contain any restrictive legend
unless such legend is required pursuant to the terms of the Securities Purchase
Agreement.

         3. Failure to Deliver Warrant Shares.

         (a) In the event that the Company fails for any reason to deliver to
the Holder the number of Warrant Shares specified in the applicable Exercise
Notice on or before the Delivery Date therefor (an "Exercise Default"), the
Company shall pay to the Holder payments ("Exercise Default Payments") in the
amount of (i) (N/365) multiplied by (ii) the aggregate Exercise Price of the
Warrant Shares which are the subject of such Exercise Default multiplied by
(iii) the lower of twelve percent (12%) per annum and the maximum rate permitted
by applicable law (the "Default Interest Rate"), where "N" equals the number of
days elapsed between the original Delivery Date of such Warrant Shares and the
date on which all of such Warrant Shares are issued and delivered to the Holder.
Cash amounts payable hereunder shall be paid on or before the fifth (5th)
Business Day of each calendar month following the calendar month in which such
amount has accrued.

         (b) In the event of an Exercise Default, the Holder may, upon written
notice to the Company (an "Exercise Default Notice") given prior to the time
that the Exercise Default is cured by the Company, regain on the date of such
notice the rights of the Holder under the exercised portion of this Warrant that
is the subject of such Exercise Default. In the event of such Exercise Default
and delivery of an Exercise Default Notice, the Holder shall retain all of the
Holder's rights and remedies with respect to the Company's failure to deliver
such Warrant

                                      -3-

Shares (including without limitation the right to receive the cash payments
specified in Section 3(a) above).

         (c) The Holder's rights and remedies hereunder are cumulative, and no
right or remedy is exclusive of any other. In addition to the amounts specified
herein, the Holder shall have the right to pursue all other remedies available
to it at law or in equity (including, without limitation, a decree of specific
performance and/or injunctive relief). Nothing herein shall limit the Holder's
right to pursue actual damages for the Company's failure to issue and deliver
Warrant Shares on the applicable Delivery Date (including, without limitation,
damages relating to any purchase of Common Stock by the Holder to make delivery
on a sale effected in anticipation of receiving Warrant Shares upon exercise,
such damages to be in an amount equal to (A) the aggregate amount paid by the
Holder for the Common Stock so purchased minus (B) the aggregate amount of net
proceeds, if any, received by the Holder from the sale of the Warrant Shares
issued by the Company pursuant to such exercise).

         4. Exercise Limitations. In no event shall a Holder be permitted to
exercise this Warrant, or part hereof, if, upon such exercise, the number of
shares of Common Stock beneficially owned by the Holder (other than shares which
would otherwise be deemed beneficially owned except for being subject to a
limitation on conversion or exercise analogous to the limitation contained in
this Section 4), would exceed 4.99% of the number of shares of Common Stock then
issued and outstanding. As used herein, beneficial ownership shall be determined
in accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended, and the rules thereunder. To the extent that the limitation contained
in this Section 4 applies, the submission of an Exercise Notice by the Holder
shall be deemed to be the Holder's representation that this Warrant is
exercisable pursuant to the terms hereof and the Company shall be entitled to
rely on such representation without making any further inquiry as to whether
this Section 4 applies. Nothing contained herein shall be deemed to restrict the
right of a Holder to exercise this Warrant, or part thereof, at such time as
such exercise will not violate the provisions of this Section 4. This Section 4
may not be amended unless such amendment is approved by the holders of a
majority of the Common Stock then outstanding; provided, however, that the
limitations contained in this Section 4 shall cease to apply (x) upon sixty (60)
days' prior written notice from the Holder to the Company, or (y) immediately
upon written notice from the Holder to the Company at any time after the public
announcement or other disclosure of a Major Transaction (as defined below) or a
Change of Control.

         5. Payment of the Exercise Price; Cashless Exercise. The Holder may pay
the Exercise Price in either of the following forms or, at the election of
Holder, a combination thereof:

         (a) through a cash exercise (a "Cash Exercise") by delivering
immediately available funds, or

         (b) if an effective Registration Statement is not available for the
resale of all of the Warrant Shares issuable hereunder at the time an Exercise
Notice is delivered to the Company, through a cashless exercise (a "Cashless
Exercise"), as hereinafter provided. The Holder may effect a Cashless Exercise
by surrendering this Warrant to the Company and noting on the

                                      -4-

Exercise Notice that the Holder wishes to effect a Cashless Exercise, upon which
the Company shall issue to the Holder the number of Warrant Shares determined as
follows:

                    X = Y x (A-B)/A

where:              X = the number of Warrant Shares to be issued to the Holder;

                    Y = the number of Warrant Shares with respect to which this
                    Warrant is being exercised;

                    A = the Market Price (as defined in the Certificate) as of
                    the Exercise Date; and

                    B = the Exercise Price.

For purposes of Rule 144, it is intended and acknowledged that the Warrant
Shares issued in a Cashless Exercise transaction shall be deemed to have been
acquired by the Holder, and the holding period for the Warrant Shares required
by Rule 144 shall be deemed to have been commenced, on the Issue Date.

         6. Anti-Dilution Adjustments; Distributions; Other Events. The Exercise
Price and the number of Warrant Shares issuable hereunder shall be subject to
adjustment from time to time as provided in this Section 6. In the event that
any adjustment of the Exercise Price required herein results in a fraction of a
cent, the Exercise Price shall be rounded up or down to the nearest one
hundredth of a cent.

         (a) Subdivision or Combination of Common Stock. If the Company, at any
time after the Issue Date, subdivides (by any stock split, stock dividend,
recapitalization, reorganization, reclassification or otherwise) the outstanding
shares of Common Stock into a greater number of shares, then effective upon the
close of business on the record date for effecting such subdivision, the
Exercise Price in effect immediately prior to such subdivision will be
proportionately reduced. If the Company, at any time after the Issue Date,
combines (by reverse stock split, recapitalization, reorganization,
reclassification or otherwise) the outstanding shares of Common Stock into a
smaller number of shares, then, effective upon the close of business on the
record date for effecting such combination, the Exercise Price in effect
immediately prior to such combination will be proportionally increased.

         (b) Distributions. If, at any time after the Issue Date, the Company
declares or makes any distribution of cash or any other assets (or rights to
acquire such assets) to holders of Common Stock in respect of such Common Stock,
as a partial liquidating dividend or otherwise, including without limitation any
dividend or distribution to the Company's stockholders in shares (or rights to
acquire shares) of capital stock of a subsidiary) (a "Distribution"), the
Company shall deliver written notice of such Distribution (a "Distribution
Notice") to the Holder at least thirty (30) days prior to the earlier to occur
of (i) the record date for determining stockholders entitled to such
Distribution (the "Record Date") and (ii) the date on which such Distribution is
made (the "Distribution Date") (the earlier of such dates being referred to as
the "Determination Date"). In the Distribution Notice to a Holder, the Company
shall indicate

                                      -5-

whether the Company has elected (A) to deliver to such Holder, upon any exercise
of this Warrant after the Determination Date, the same amount and type of assets
being distributed in such Distribution as though the Holder were, on the
Determination Date, a holder of a number of shares of Common Stock into which
this Warrant is exercisable as of such Determination Date (such number of shares
to be determined at the Exercise Price then in effect and without giving effect
to any limitations on such exercise) or (B) upon any exercise of this Warrant on
or after the Determination Date, to reduce the Exercise Price applicable to such
exercise by reducing the Exercise Price in effect on the Business Day
immediately preceding the Record Date by an amount equal to the fair market
value of the assets to be distributed divided by the number of shares of Common
Stock as to which such Distribution is to be made, such fair market value to be
reasonably determined in good faith by the Company's Board of Directors. If the
Company does not notify the Holders of its election pursuant to the preceding
sentence on or prior to the Determination Date, the Company shall be deemed to
have elected clause (A) of the preceding sentence.

         (c) Dilutive Issuances.

                      (i) Adjustment Upon Dilutive Issuance. If, at any time
         after the Issue Date, the Company issues or sells, or in accordance
         with subparagraph (iii) of this paragraph (c), is deemed to have issued
         or sold, any shares of Common Stock for per share consideration less
         than the Exercise Price on the date of such issuance or sale (a
         "Dilutive Issuance"), then the Exercise Price shall be adjusted so as
         to equal the consideration received or receivable by the Company (on a
         per share basis) for the additional shares of Common Stock so issued,
         sold or deemed issued or sold in such Dilutive Issuance (which, in the
         case of a deemed issuance or sale, shall be calculated in accordance
         with subparagraph (iii) below).

                      (ii) Adjustment Upon Below Market Issuance. If, at any
         time after the Issue Date, the Company issues or sells, or in
         accordance with subparagraph (iii) of this paragraph (c), is deemed to
         have issued or sold, any shares of Common Stock for per share
         consideration less than an amount equal to the Market Price (but equal
         to or greater than the Exercise Price in effect) on the date of such
         issuance or sale (or deemed issuance or sale) (a "Below Market
         Issuance"), then effective immediately upon the Below Market Issuance,
         the Exercise Price shall be adjusted so as to equal an amount
         determined by multiplying such Exercise Price by the following
         fraction:

                    N(0) + N(1)
                   -------------
                    N(0) + N(2)

         where:

                    N(0) =  the number of shares of Common Stock outstanding
                            immediately prior to the issuance, sale or deemed
                            issuance or sale of such additional shares of Common
                            Stock in such Below Market Issuance (without taking
                            into account any shares of Common Stock issuable
                            upon conversion, exchange or exercise of any
                            Convertible Securities or Purchase Rights);

                               -6-

                    N(1) =  the number of shares of Common Stock which the
                            aggregate consideration, if any, received or
                            receivable by the Company for the total number of
                            such additional shares of Common Stock so issued,
                            sold or deemed issued or sold in such Below Market
                            Issuance (which, in the case of a deemed issuance or
                            sale, shall be calculated in accordance with
                            subparagraph (iii) below) would purchase at the
                            Market Price as of the date of such Below Market
                            Issuance; and

                    N(2) =  the number of such additional shares of Common Stock
                            so issued, sold or deemed issued or sold in such
                            Below Market Issuance.

         Notwithstanding the foregoing, no adjustment shall be made pursuant to
         this paragraph (c)(ii) if such adjustment would result in an increase
         in the Exercise Price.

                      (iii) Effect On Exercise Price Of Certain Events. For
         purposes of determining the adjusted Exercise Price under subparagraph
         (i) or (ii) of this paragraph (c), the following will be applicable:

                  (A) Issuance Of Purchase Rights. If the Company issues or
         sells any Purchase Rights, whether or not immediately exercisable, and
         the price per share for which Common Stock is issuable upon the
         exercise of such Purchase Rights (and the price of any conversion of
         Convertible Securities, if applicable) is less than the Market Price or
         the Exercise Price (or both) in effect on the date of issuance or sale
         of such Purchase Rights, then the maximum total number of shares of
         Common Stock issuable upon the exercise of all such Purchase Rights
         (assuming full conversion, exercise or exchange of Convertible
         Securities, if applicable) shall, as of the date of the issuance or
         sale of such Purchase Rights, be deemed to be outstanding and to have
         been issued and sold by the Company for such price per share. For
         purposes of the preceding sentence, the "price per share for which
         Common Stock is issuable upon the exercise of such Purchase Rights"
         shall be determined by dividing (x) the total amount, if any, received
         or receivable by the Company as consideration for the issuance or sale
         of all such Purchase Rights, plus the minimum aggregate amount of
         additional consideration, if any, payable to the Company upon the
         exercise of all such Purchase Rights, plus, in the case of Convertible
         Securities issuable upon the exercise of such Purchase Rights, the
         minimum aggregate amount of additional consideration payable upon the
         conversion, exercise or exchange thereof (determined in accordance with
         the calculation method set forth in subparagraph (iii)(B) below) at the
         time such Convertible Securities first become convertible, exercisable
         or exchangeable, by (y) the maximum total number of shares of Common
         Stock issuable upon the exercise of all such Purchase Rights (assuming
         full conversion, exercise or exchange of Convertible Securities, if
         applicable). No further adjustment to the Exercise Price shall be made
         upon the actual issuance of such Common Stock upon the exercise of such
         Purchase Rights or upon the conversion, exercise or exchange of
         Convertible Securities issuable upon exercise of such Purchase Rights.

                  (B) Issuance Of Convertible Securities. If the Company issues
         or sells any Convertible Securities, whether or not immediately
         convertible, exercisable or exchangeable, and the price per share for
         which Common Stock is issuable upon such

                                      -7-

          conversion, exercise or exchange is less than Market Price or the
          Exercise Price (or both) in effect on the date of issuance or sale of
          such Convertible Securities, then the maximum total number of shares
          of Common Stock issuable upon the conversion, exercise or exchange of
          all such Convertible Securities shall, as of the date of the issuance
          or sale of such Convertible Securities, be deemed to be outstanding
          and to have been issued and sold by the Company for such price per
          share. If the Convertible Securities so issued or sold do not have a
          fluctuating conversion or exercise price or exchange ratio, then for
          the purposes of the immediately preceding sentence, the "price per
          share for which Common Stock is issuable upon such conversion,
          exercise or exchange" shall be determined by dividing (x) the total
          amount, if any, received or receivable by the Company as consideration
          for the issuance or sale of all such Convertible Securities, plus the
          minimum aggregate amount of additional consideration, if any, payable
          to the Company upon the conversion, exercise or exchange thereof
          (determined in accordance with the calculation method set forth in
          this subparagraph (iii)(B)), by (y) the maximum total number of shares
          of Common Stock issuable upon the exercise, conversion or exchange of
          all such Convertible Securities. If the Convertible Securities so
          issued or sold have a fluctuating conversion or exercise price or
          exchange ratio (a "Variable Rate Convertible Security"), then for
          purposes of the first sentence of this subparagraph (B), the "price
          per share for which Common Stock is issuable upon such conversion,
          exercise or exchange" shall be deemed to be the lowest price per share
          which would be applicable (assuming all holding period and other
          conditions to any discounts contained in such Variable Rate
          Convertible Security have been satisfied) if the conversion price of
          such Variable Rate Convertible Security on the date of issuance or
          sale thereof were seventy-five percent (75%) of the actual conversion
          price on such date (the "Assumed Variable Market Price"), and,
          further, if the conversion price of such Variable Rate Convertible
          Security at any time or times thereafter is less than or equal to the
          Assumed Variable Market Price last used for making any adjustment
          under this paragraph (c) with respect to any Variable Rate Convertible
          Security, the Exercise Price in effect at such time shall be
          readjusted to equal the Exercise Price which would have resulted if
          the Assumed Variable Market Price at the time of issuance of the
          Variable Rate Convertible Security had been seventy-five percent (75%)
          of the actual conversion price of such Variable Rate Convertible
          Security existing at the time of the adjustment required by this
          sentence; provided, however, that if the conversion or exercise price
          or exchange ratio of a Convertible Security may fluctuate solely as a
          result of provisions designed to protect against dilution, such
          Convertible Security shall not be deemed to be a Variable Rate
          Convertible Security. No further adjustment to the Exercise Price
          shall be made upon the actual issuance of such Common Stock upon
          conversion, exercise or exchange of such Convertible Securities.

                  (C) Change In Option Price Or Conversion Rate. If, following
         an adjustment to the Exercise Price upon the issuance of Purchase
         Rights or Convertible Securities pursuant to a Dilutive Issuance or a
         Below Market Issuance, there is a change at any time in (x) the amount
         of additional consideration payable to the Company upon the exercise of
         any Purchase Rights; (y) the amount of additional consideration, if
         any, payable to the Company upon the conversion, exercise or exchange
         of any Convertible Securities; or (z) the rate at which any Convertible
         Securities are convertible into or exercisable or exchangeable for
         Common Stock (in each such case, other than under or

                                      -8-

         by reason of provisions designed to protect against dilution), then in
         any such case, the Exercise Price in effect at the time of such change
         shall be readjusted to the Exercise Price which would have been in
         effect at such time had such Purchase Rights or Convertible Securities
         still outstanding provided for such changed additional consideration or
         changed conversion, exercise or exchange rate, as the case may be, at
         the time initially issued or sold.

                  (D) Calculation Of Consideration Received. If any Common
         Stock, Purchase Rights or Convertible Securities are issued or sold for
         cash, the consideration received therefor will be the amount received
         by the Company therefore. In case any Common Stock, Purchase Rights or
         Convertible Securities are issued or sold for a consideration part or
         all of which shall be other than cash, including in the case of a
         strategic or similar arrangement in which the other entity will provide
         services to the Company, purchase services from the Company or
         otherwise provide intangible consideration to the Company, the amount
         of the consideration other than cash received by the Company (including
         the net present value of the consideration expected by the Company for
         the provided or purchased services) shall be the fair market value of
         such consideration, except where such consideration consists of
         publicly traded securities, in which case the amount of consideration
         received by the Company will be the Market Price thereof on the date of
         receipt. In case any Common Stock, Purchase Rights or Convertible
         Securities are issued in connection with any merger or consolidation in
         which the Company is the surviving corporation, the amount of
         consideration therefor will be deemed to be the fair market value of
         such portion of the net assets and business of the non-surviving
         corporation as is attributable to such Common Stock, Purchase Rights or
         Convertible Securities, as the case may be. Notwithstanding anything
         else herein to the contrary, if Common Stock Purchase Rights or
         Convertible Securities are issued or sold in conjunction with each
         other as part of a single transaction or in a series of related
         transactions, the Holder may elect to determine the amount of
         consideration deemed to be received by the Company therefor by
         deducting the fair value of any type of securities (the "Disregarded
         Securities") issued or sold in such transaction or series of
         transactions. If the Holder makes an election pursuant to the
         immediately preceding sentence, no adjustment to the Exercise Price
         shall be made pursuant to this paragraph (c) for the issuance of the
         Disregarded Securities or upon any conversion, exercise or exchange
         thereof. The independent members of the Company's Board of Directors
         shall calculate reasonably and in good faith, using standard commercial
         valuation methods appropriate for valuing such assets, the fair market
         value of any consideration other than cash or securities.

                           (E) Issuances Without Consideration Pursuant to
         Existing Securities. If the Company issues (or becomes obligated to
         issue) shares of Common Stock pursuant to any anti-dilution or similar
         adjustments (other than as a result of stock splits, stock dividends
         and the like) contained in any Convertible Securities or Purchase
         Rights outstanding as of the date hereof, then all shares of Common
         Stock so issued shall be deemed to have been issued for no
         consideration.

              (iv) Exceptions To Adjustment Of Exercise Price. Notwithstanding
the foregoing, no adjustment to the Exercise Price shall be made pursuant to
this paragraph (c) upon

                                      -9-

the issuance of any Excluded Securities. For purposes hereof, "Excluded
Securities" means (I) securities purchased under the Securities Purchase
Agreement; (II) securities issued upon conversion of the Preferred Shares or
exercise of the Warrants; (III) shares of Common Stock issuable or issued to (x)
employees or directors from time to time either directly or upon the exercise of
options, in such case granted or to be granted in the discretion of the Board of
Directors, as approved by the independent members of the Board, pursuant to one
or more stock option plans or restricted stock plans or stock purchase plans in
effect as of the Issue Date or subsequently approved by the independent members
of the Board of Directors or by the Company's stockholders, or (y) consultants
or vendors, either directly or pursuant to warrants to purchase Common Stock
that are outstanding on the date hereof or issued hereafter, provided such
issuances are approved by the independent members of the Board of Directors or
by the Company's stockholders; (IV) except as required by subparagraph
(c)(ii)(E) above, shares of Common Stock issued in connection with any
Convertible Securities or Purchase Rights outstanding on the date hereof; (V)
shares of Common Stock issued to a Person in connection with a joint venture,
strategic alliance or other commercial relationship with such Person relating to
the operation of the Company's business and not for the purpose of raising
equity capital; (VI) shares of Common Stock issued in connection with the
acquisition by the Company of any corporation or other entity (including,
without limitation, the interests in certain limited partnerships of which the
Company or a Subsidiary is a general partner); and (VII) securities issued
pursuant to a bona fide firm commitment underwritten public offering. For
purposes hereof, approval by the independent members of the Board of Directors
shall mean the approval of a majority of the independent members of the Board,
which majority shall include not fewer than four (4) independent directors (as
such term is defined under Rule 4200(a)(15) of the Nasdaq Market Rules).

              (v) Notice Of Adjustments. Upon the occurrence of one or more
adjustments or readjustments of the Exercise Price pursuant to this paragraph
(c) or any change in the number or type of stock, securities and/or other
property issuable upon exercise of this Warrant, the Company, at its expense,
shall promptly compute such adjustment or readjustment or change and prepare and
furnish to the Holder a notice (an "Adjustment Notice") setting forth such
adjustment or readjustment or change and showing in detail the facts upon which
such adjustment or readjustment or change is based, and, on or before the time
that it delivers an Adjustment Notice, publicly disclose the contents thereof.
The failure of the Company to deliver an Adjustment Notice shall not affect the
validity of any such adjustment.

         (d) Major Transactions. In the event of a Major Transaction (as defined
in the Certificate of Designation), the Company will give the Holder at least
twenty (20) Trading Days written notice prior to the earlier of (x) the closing
or effectiveness of such Major Transaction and (y) the record date for the
receipt of such shares of stock or securities or other assets. In the event of a
Major Transaction, the Holder shall be permitted to either (i) require the
Company to repurchase this Warrant for an amount to the value of this Warrant
calculated pursuant to the Black-Scholes pricing model or (ii) exercise this
Warrant in whole or in part at any time prior to the record date for the receipt
of such consideration and shall be entitled to receive, for each share of Common
Stock issuable to Holder upon such exercise, the same per share consideration
payable to the other holders of Common Stock in connection with such Major
Transaction. If and to the extent that the Holder retains any portion of this
Warrant following such record date, the Company will cause the surviving or, in
the event of a sale of assets, purchasing entity, as a

                                      -10-

condition precedent to such Major Transaction, to assume the obligations of the
Company under this Warrant, with such adjustments to the Exercise Price and the
securities covered hereby as may be necessary in order to preserve the economic
benefits of this Warrant to the Holder.

         (e) Adjustments; Additional Shares, Securities or Assets. In the event
that at any time, as a result of an adjustment made pursuant to this Section 6,
the Holder of this Warrant shall, upon exercise of this Warrant, become entitled
to receive securities or assets (other than Common Stock) then, wherever
appropriate, all references herein to shares of Common Stock shall be deemed to
refer to and include such shares and/or other securities or assets; and
thereafter the number of such shares and/or other securities or assets shall be
subject to adjustment from time to time in a manner and upon terms as nearly
equivalent as practicable to the provisions of this Section 6. Any adjustment
made herein that results in a decrease in the Exercise Price shall also effect a
proportional increase in the number of shares of Common Stock into which this
Warrant is exercisable.

         7. Fractional Interests.

            No fractional shares or scrip representing fractional shares shall
be issuable upon the exercise of this Warrant, but on exercise of this Warrant,
the Holder hereof may purchase only a whole number of shares of Common Stock.
If, on exercise of this Warrant, the Holder hereof would be entitled to a
fractional share of Common Stock or a right to acquire a fractional share of
Common Stock, the Company shall, in lieu of issuing any such fractional share,
pay to the Holder an amount in cash equal to the product resulting from
multiplying such fraction by the Market Price as of the Exercise Date.

         8. Transfer of this Warrant.

            The Holder may sell, transfer, assign, pledge or otherwise dispose
of this Warrant, in whole or in part, as long as such sale or other disposition
is made pursuant to an effective registration statement or an exemption from the
registration requirements of the Securities Act. Upon such transfer or other
disposition (other than a pledge), the Holder shall deliver this Warrant to the
Company together with a written notice to the Company, substantially in the form
of the Transfer Notice attached hereto as Exhibit B (the "Transfer Notice"),
indicating the person or persons to whom this Warrant shall be transferred and,
if less than all of this Warrant is transferred, the number of Warrant Shares to
be covered by the part of this Warrant to be transferred to each such person.
Within three (3) Business Days of receiving a Transfer Notice and the original
of this Warrant, the Company shall deliver to the each transferee designated by
the Holder a Warrant or Warrants of like tenor and terms for the appropriate
number of Warrant Shares and, if less than all this Warrant is transferred,
shall deliver to the Holder a Warrant for the remaining number of Warrant
Shares.

         9. Benefits of this Warrant.

            This Warrant shall be for the sole and exclusive benefit of the
Holder of this Warrant and nothing in this Warrant shall be construed to confer
upon any person other than the Holder of this Warrant any legal or equitable
right, remedy or claim hereunder.

                                      -11-

        10. Loss, theft, destruction or mutilation of Warrant.

            Upon receipt by the Company of evidence of the loss, theft,
destruction or mutilation of this Warrant, and (in the case of loss, theft or
destruction) of indemnity reasonably satisfactory to the Company, and upon
surrender of this Warrant, if mutilated, the Company shall execute and deliver a
new Warrant of like tenor and date.

        11. Notice or Demands.

            Any notice, demand or request required or permitted to be given by
the Company or the Holder pursuant to the terms of this Warrant shall be in
writing and shall be deemed delivered (i) when delivered personally or by
verifiable facsimile transmission, unless such delivery is made on a day that is
not a Business Day, in which case such delivery will be deemed to be made on the
next succeeding Business Day, (ii) on the next Business Day after timely
delivery to an overnight courier and (iii) on the Business Day actually received
if deposited in the U.S. mail (certified or registered mail, return receipt
requested, postage prepaid), addressed as follows:

            If to the Company:

            TAG Entertainment Corp.
            9916 South Santa Monica Blvd., 1st Floor
            Beverly Hills, California  90212
            Attn: Steve Austin
            Tel:  (310) 277-3700
            Fax:  (310) 277-3720

            with a copy to:

            Goldstein & DiGioia, LLP
            45 Broadway, 11th Floor
            New York, New York  10006
            Attn: Michael A. Goldstein, Esq.
            Tel:  (212) 599-3322
            Fax:  (212) 557-0295

and if to the Holder, to such address as the Holder shall have furnished to the
Company in writing.

        12. Applicable Law.

            This Warrant is issued under and shall for all purposes be governed
by and construed in accordance with the laws of the State of New York applicable
to contracts made and to be performed entirely within the State of New York.

                                      -12-

        13. Amendments.

            No amendment, modification or other change to, or waiver of any
provision of, this Warrant may be made unless such amendment, modification or
change is (A) set forth in writing and is signed by the Company and the Holder
and (B) agreed to in writing by the holders of at least two-thirds (2/3) of the
number of shares into which the Warrants are exercisable (without regard to any
limitation contained herein on such exercise), it being understood that upon the
satisfaction of the conditions described in (A) and (B) above, each Warrant
(including any Warrant held by the Holder who did not execute the agreement
specified in (B) above) shall be deemed to incorporate any amendment,
modification, change or waiver effected thereby as of the effective date
thereof.

        14. Entire Agreement.

            This Warrant, the Securities Purchase Agreement, the Certificate of
Designation, the Registration Rights Agreement, and the other Transaction
Documents constitute the entire agreement among the parties hereto with respect
to the subject matter hereof and thereof. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein and
therein. This Warrant, the Securities Purchase Agreement, the Certificate of
Designation, the Registration Rights Agreement, and the other Transaction
Documents supersede all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof and thereof.

        15. Headings.

            The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

                           [Signature Page to Follow]

                                      -13-

         IN WITNESS WHEREOF, the Company has duly executed and delivered this
Warrant as of the Issue Date.

                                                 TAG ENTERTAINMENT CORP.

                                                 By: __________________________
                                                     Name:
                                                     Title:

                                      -14-

                                                            EXHIBIT A to WARRANT

                                 EXERCISE NOTICE

         The undersigned Holder hereby irrevocably exercises the right to
purchase of the shares of Common Stock ("Warrant Shares") of
___________________________ evidenced by the attached Warrant (the "Warrant").
Capitalized terms used herein and not otherwise defined shall have the
respective meanings set forth in the Warrant.

         1. Form of Exercise Price. The Holder intends that payment of the
Exercise Price shall be made as:

         ______ a Cash Exercise with respect to _________________ Warrant
Shares; and/or

         ______ a Cashless Exercise with respect to _________________ Warrant
Shares, as permitted by Section 5(b) of the attached Warrant.

         2. Payment of Exercise Price. In the event that the Holder has elected
a Cash Exercise with respect to some or all of the Warrant Shares to be issued
pursuant hereto, the Holder shall pay the sum of $________________ to the
Company in accordance with the terms of the Warrant.

Date: ______________________

-----------------------------------
         Name of Registered Holder

By:
    -------------------------------
    Name:
    Title:

                                      -15-

                                                            EXHIBIT B to WARRANT

                                 TRANSFER NOTICE

FOR VALUE RECEIVED, the undersigned Holder of the attached Warrant hereby sells,
assigns and transfers unto the person or persons named below the right to
purchase shares of the Common Stock of _____________________ evidenced by the
attached Warrant.

Date: ______________________

-----------------------------------
         Name of Registered Holder

By:
   --------------------------------
   Name:
   Title:

Transferee Name and Address:

-----------------------------------

-----------------------------------

-----------------------------------

                                      -16-

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