Document:

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                                                                    EXHIBIT 10.8

[* SIGNIFIES THAT CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT.]

                                                                November 1, 2004

W.W. Norton & Company
500 Fifth Avenue
New York, NY 10110

This contract, when counter executed and delivered to us, shall constitute an
agreement effective as of the above date between W.W. NORTON & COMPANY, INC.
("Publisher") and THE PEOPLE'S PUBLISHING GROUP INC. ("Distributor").

1)       APPOINTMENT.

         a)       Publisher hereby appoints Distributor, and Distributor accepts
                  appointment to be, Publisher's sole and exclusive
                  distributor in the areas and markets set forth on Schedule 1
                  (the "Market") for the promotion, sale, and distribution of
                  the print materials set forth on Schedule 1. Schedule 1
                  shall be deemed amended from time to time to include all
                  Norton, Liveright and Countryman books in print and such
                  other distributees as the Publisher shall time-to-time
                  permit unless specific written notice of an exception is
                  provided to Distributor, which notice shall include a
                  statement of the reason for the exception. (All such
                  materials are referred to as "Works") Publisher will give
                  Distributor timely advance notice and information concerning
                  all new Works it plans to publish, including notice of any
                  sales restrictions, and one free copy of each new Work on
                  availability.

         b)       All rights not specifically granted herein are retained by
                  Publisher.

         c)       This agreement shall be effective on the above date and shall
                  continue until September 30, 2007 unless earlier terminated as
                  provided in section d)(i) and d)(ii). The Agreement shall
                  thereafter be automatically renewed from year to year unless
                  either party gives notice of termination on or before March
                  31st of any year commencing with 2008 to be effective the
                  immediately following September 30th. References in this
                  Agreement to "year" "fiscal year" or to "FY" shall mean the
                  twelve-month period ending on March 31st.

         d)       This agreement may be terminated prior to September 30, 2007
                  in the event of any of the following occurrences:

                  i)       If Distributor fails to increase its purchases on a
                           year to year basis in order to sustain an average of
                           [*] over two fiscal years, then Publisher may
                           terminate this agreement on December 31st of the
                           fiscal year following that in which the shortfall
                           took place provided notification is given by June
                           15th. Purchases are defined as net purchases after
                           discount in the [*] percent discount categories, (see
                           Section 2) (i) - (iii)) plus purchases by resellers
                           less commission, Section 2) (v), and claimed sales
                           less commission, Section 2) (vi).

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                  ii)      If in the period prior to September 30, 2007
                           Distributor undertakes to act in a like capacity for
                           a publisher other than Publisher, and Publisher
                           reasonably determines that such joint representation
                           is antithetical to Publisher's best commercial
                           interests, then Publisher may by written notice
                           terminate this agreement effective the September 30th
                           that is at least 12 months from the date of notice.
                           Notwithstanding the foregoing, nothing in this
                           Agreement shall be deemed to limit any right, or
                           mandate any obligation on the part of Distributor to
                           sell to customers of its choosing.

2)       TERMS OF SALE.

         (a)      Distributor may purchase Works from Publisher's available
                  inventory on the following terms, in each case payable in U.S.
                  dollars within [*] days of invoice:

                  COLLEGE TEXT PURCHASES

                  i)       In each period, Purchases by Distributor of Works for
                           sale directly to schools shall be at a discount of
                           [*]% from Publisher's net price.

                  ii)      Purchases by Distributor of Works for resale to
                           school bookstores, and to enterprises that act as
                           resellers to secondary schools shall be at a discount
                           of [*]% from the Publisher's net price.

                  iii)     Purchases by Distributor of Works for Local Authority
                           Adoptions as defined in Schedule II shall be at a
                           discount of [*]% off Publisher's net price.

                  iv)      Purchases by Distributor of Works for State Adoptions
                           as defined in Schedule II shall be at the larger of a
                           discount of [*]% off Publisher's net price or [*]%
                           off Distributor's negotiated list price to the State
                           authority. Distributor will enter a State Adoption
                           only upon agreement with Publisher as outlined in
                           Schedule II.

                  v)       In each period, the Publisher will pay to the
                           Distributor a commission of [*]% of the net sales of
                           Works by resellers in the secondary school market who
                           buy direct from Publisher, as outlined in Schedule 1.
                           The commission will be paid only upon [*]. Publisher
                           will assist the Distributor in obtaining reseller
                           sales reports by school.

                  vi)      Distributor can claim [*]% commission on documented
                           orders to resellers in the Distributor's market as
                           defined in Schedule 1 provided that Distributor
                           actively sells to the school where the texts were
                           ultimately used. Publisher will calculate commission
                           on net sales after returns.

                                       2
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                  TRADE TITLES

         (a)      Purchases will be at the discounts and terms established, from
                  time to time, by Publisher for its trade wholesaler accounts.
                  Trade titles are not included in the definition of works in
                  Schedule 1. Publisher does not grant an exclusive to
                  Distributor on sales of Trade titles to the secondary market.

         (b)      Publisher shall provide to Distributor each month an
                  electronic listing of all titles and their respective net
                  prices. It is Distributor's responsibility to notify Publisher
                  of any such listings not received.

         (c)      Sales shall be F.O.B. Publisher's bindery or warehouse, as
                  applicable. Publisher shall bill Distributor for the
                  discounted sales plus actual postage or other transportation
                  charges.

         (d)      Distributor will use reasonable efforts to batch orders.

         (e)      Distributor can qualify for the following incentive discounts.

                  "BASE SALES AMOUNT" is established as follows for each
                  12-month period ended March 31st, 2005 through March 31st,
                  2008.

                  The "Base Sales Amount" equals [*]% of the highest year's net
                  Purchases, from FY04 to FY08, by Distributor at the [*]%,
                  [*]%, and [*]% levels plus net sales less commission to
                  purchases of Works by resellers in the secondary school market
                  who buy direct from Publisher, as outlined in Schedule 1.

                  If the returns from Distributor to Publisher in the period
                  from which the Base Sales amount was calculated exceed [*]% of
                  gross purchases (net plus returns), then the Base Sales amount
                  will equal [*]% of the highest year's total as described
                  above.

                  Purchases by Distributor from Publisher after the Base Sales
                  amount is reached in a 12-month period ending March 31st, will
                  qualify for an extra discount of [*]% in each applicable
                  category -- [*]% will rise to [*], [*]% will rise to [*]%,
                  [*]% will rise to [*]%.

                  The extra discount earned after reaching the Base Sales amount
                  will not be calculated at purchase. The extra discount will be
                  paid after the end of the respective period ending March 31st.

3)       RETURNS.

         For so long as Distributor is not in breach of this Agreement,
         Distributor will have the right to return Works in saleable condition,
         for full credit against amounts due Publisher from Distributor or, if
         there are no such amounts due, for refund. Works received by
         Distributor containing manufacturing defects may be returned pursuant
         to the applicable provisions of the Uniform Commercial Code.

                                       3
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         Returns of superceded editions will only be accepted for [*] following
         the publication of a new edition. Continuing purchases of previous
         edition texts made in order to fulfill contractual obligations may be
         returned up to [*] from date of purchase.

         When Publisher determines that damaged returns are due to use of the
         text and not to defect, the Publisher may decline to accept the return.
         Publisher will not accept claims of damaged books after [*] months from
         date of the first use of the text. Distributor may buy replacement
         copies at the unit cost of the text.

         Distributor will enact a returns policy for its customers with respect
         to Publisher's products that is substantially similar to the policy in
         effect at that time with respect to Publisher's sales to the Market.

4)       RESPONSIBILITIES FOR PROMOTION.

         (a)      Distributor will use reasonable efforts to promote Works in
                  the Market by means of telemarketing, catalogues and other
                  appropriate means. Distributor's responsibilities shall be as
                  set forth on Schedule 3. In the events of any alleged breach,
                  Distributor shall have ninety days from receipt of written
                  specific notice to affect a cure.

         (b)      At Distributor's reasonable and timely request, Publisher will
                  provide Distributor, without charge except for transportation,
                  reasonable numbers of catalogues and samples of sales
                  promotional materials as issued. Publisher will provide PDFs
                  of its promotional materials, for which it owns the rights, at
                  no cost to Distributor. Publisher will provide book cover
                  scans in electronic format at no charge to Distributor. Such
                  scans may only be used in whole, and not be cropped or
                  otherwise modified. Publisher assumes no liability or cost for
                  use by Distributor of such scans.

5)       FREE COPIES

         a)       Publisher will supply to Distributor a reasonable number of
                  desk copies, free copies for conventions and displays and
                  sample copies to be sent to customers for review and
                  inspection of Works (collectively, "Samples"). The Publisher
                  will be responsible for postage or shipping charges and paper,
                  printing and binding on Samples, to a limit of [*]% of its net
                  sales to Distributor. Under no circumstances may Distributor
                  knowingly sell such copies to any other party. Such expenses
                  in excess of [*]% will be the responsibility of Distributor.
                  The Publisher will not charge Distributor for packing and
                  fulfillment.

                  i)       Distributor and Publisher will agree upon annual
                           budget amounts for formal State adoptions that shall
                           be excluded from the [*]% limit.

                  ii)      Distributor and Publisher will agree upon annual
                           budget amounts for official College Board Sponsored
                           AP Workshops that shall be excluded from the [*]%
                           limit.

                                       4

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         b)       Publisher shall provide monthly reports of sample copies sent
                  and postage expense. It is the Distributor's responsibility to
                  create cumulative reports for any other periods. It is the
                  Distributor's responsibility to report to publisher a missing
                  monthly report. The absence of a sample copy expense report
                  does not absolve the Distributor of responsibility for the
                  expenses unless Publisher knowingly and willingly withholds
                  the report.

                  Publisher shall provide on a quarterly basis a cumulative
                  report including known free copy expenses and postage expense.

                  Publisher shall provide on an annual basis a cumulative report
                  including costs of free copies, manufacturing costs of all
                  other items, and postage expenses. The annual report will be
                  used to calculate the free copy budget.

                  It is Distributor's responsibility to make timely suggestions
                  about modification of report, or to indicate any missing
                  expense information. It is the Publisher's responsibility to
                  make a good faith effort to provide missing expense
                  information.

         c)       [*].

6)       REPORTS. Distributor shall semi-annually report to Publisher its
         estimated needs for Works in the forthcoming 6-month period.

7)       HANDLING OF ORDERS.

         a)       Distributor shall be responsible for invoicing and for
                  providing to Publisher all shipping documents reasonably
                  necessary for fulfillment.

         b)       Publisher shall be responsible for picking, packing and
                  shipping orders. Distributor will reimburse Publisher for the
                  expense of postage or other shipping of such orders.

         c)       In the event Publisher receives any orders or inquiries for
                  Works that would fall within Distributor's market as defined
                  in paragraph 1, Publisher will promptly turn such orders and
                  inquiries over to Distributor. Publisher will inform the
                  customer of agreement with Distributor. Publisher will make
                  reasonable efforts to enforce the market as defined in
                  Schedule 1. If Publisher determines a re-seller has valid
                  business reasons for buying direct from Publisher, e.g. it
                  serves additional or multiple markets separate from Secondary
                  schools, the Distributor can seek commission through Clause 2)
                  a) vi)

8)       WINDING UP. On termination, Publisher will accept returns from
         Distributor pursuant to Section 3 for [*].

9)       INFRINGEMENT AND PIRACY. Distributor will promptly report to Publisher
         all incidents of copyright infringement of the Works that come to its
         attention, and will cooperate in civil and/or criminal prosecution of
         the entities engaging in such activity.

                                       5

<PAGE>

10)      COMPLETE AGREEMENT; AMENDMENT. This agreement sets forth the complete
         understanding of the parties and cannot be waived, amended or modified
         except in writing signed by Distributor and Publisher. This agreement
         cancels and supersedes all prior Agreements between the parties in
         respect to the subject matter hereof.

11)      NO PARTNERSHIP, AGENCY, FRANCHISE OR JOINT VENTURE. It is understood
         that Distributor is and shall remain an independent contractor,
         operating a separately established business, and not Publisher's agent,
         partner or legal representative and that Distributor has no authority
         to commit Publisher to any legal obligation to a third-party.

12)      ARBITRATION; EXCLUSIVE JURISDICTION AND VENUE. In order to provide for
         certainty and convenience to the parties, all disputes hereunder shall
         be resolved by arbitration in New York, New York pursuant to the
         Commercial Arbitration Rules of the American Arbitration Association or
         Article 75 of the New York Civil Practice Law and Rules and exclusive
         jurisdiction over all matters related to such arbitration shall lie in
         the state courts of the State of New York sitting in New York country;
         and no other court or tribunal shall have jurisdiction to determine any
         controversy or dispute arising under or concerning this Agreement. Each
         party agrees to submit to the jurisdiction of such courts in the City
         and State of New York and consents to the service or process on it (in
         addition to service as provided by law) in the same manner as
         prescribed for service of notices under this Agreement.

13)      NOTICES. Notices hereunder shall be in writing and delivered by hand or
         by express courier as follows:

         If to Publisher:                           If to Distributor:
         W.W. Norton & Company, Inc.                The Peoples Publishing Group
         500 Fifth Avenue                           299 Market Street
         New York, NY 10110                         Saddle Brook, NJ 07663
         Attn.: CFO                                 Attn.: Chairman

Notices shall be effective upon delivery.

                                       6

<PAGE>

14)      RESALE MARKET. During the term of this agreement, distributor will not
         engage in the sale or distribution of "used" books of Publisher.
         Nothing in this Section shall affect the right of Distributor to
         receive and to resell copies of Works pursuant to Section 3.

15)      SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon the
         parties and their successors and assigns. Except in connection with the
         sale of substantially all of the business of a party, this agreement
         may not be assigned by either party without the prior approval of the
         other party, which approval will not be unreasonably withheld.

ACCEPTED AND AGREED
PEOPLES PUBLISHING GROUP

By: James Peoples
Title: Chairman

Signature: /s/ James Peoples

ACCEPTED AND AGREED:
W.W. NORTON & COMPANY, INC.

By: W. Drake McFeely
Title: President

Signature: /s/ W. Drake McFeely

                                       7
<PAGE>

                                   SCHEDULE 1.

MARKET

         The Market will be the United States public and private schools, grades
         K-12. The Market also includes DODDS and International Bilingual
         Schools actively marketed by Distributor The audience includes both the
         day and evening enrollments in the schools. The Market also includes
         high school bookstores and distributors whose primary business is
         reselling college books to high schools and who represent that book
         orders are to supply high schools and high school bookstores. Home
         schooling suppliers are not included in the market.

         Both Distributor and Publisher recognize that certain re-sellers will
         continue to purchase books direct from Publisher (including but not
         limited to Varsity Books, Adams Online, Baker and Taylor, MBS). The
         Publisher will make reasonable efforts to direct the purchase of Works
         to the Distributor. In cases where Publisher deems it should sell
         direct to reseller then sales and commission will be accounted for as
         laid out in contract.

         The Market does not include secondary school enrollments in courses at
         post secondary institutions where Works are purchased by resellers
         whose primary business is post secondary enrollments.

WORKS

         All Norton and Liveright net price college texts (together with
         supplemental and ancillary materials) published by Publisher. Trade
         books (list price) in hardcover and paperback format are not included
         in definition of works though Distributor may promote and purchase
         these for resale on a non-exclusive basis from Publisher.

                                       8

<PAGE>

                                  SCHEDULE II.

LOCAL AUTHORITY ADOPTIONS

         Local Authority Adoptions take place in all states including state
         adoption and open territory states. A consistent characteristic of a
         Local Authority adoption is the presence of a centralized formal
         adoption process that takes place within a school district, county,
         city, or dioceses. Local authority adoption share some but certainly
         not all, of the following characteristics:

         o        PPG receives notice of a school district or county adoption.
                  Usually this information is communicated by letter by the
                  adopting authority.

         o        The adoption unit requires multiple exam copies of textbooks
                  and ancillaries for school administrators and the adoption
                  committee.

         o        Formal on-site presentations to the adoption committee or in
                  some districts meeting with committee members and their school
                  advisors.

         o        Requirements to submit book correlations to state and/or AP
                  standards.

         o        Extensive pre-work prior to imposed blackout periods where
                  publishers are not allowed to contact committee members.

         o        Committee recommends book adoptions often listing multiple
                  books to provide local schools with purchase options.

         o        PPG begins selling process to influence school building
                  decisions.

         o        Large unit purchases - for our purposes let's agree a LA
                  purchase must be in excess of [*] units or $[*].

         o        Contract negotiations related to price, shipping and handling,
                  and availability.

         PPG will be responsible for maintaining and distributing monthly to
         Norton a Local Authority Pending and adoption file. In adoptions
         requiring a formal contract Peoples will negotiate terms and make
         recommendations to Norton. Final contract approval and administration
         will be a Norton responsibility.

         Local authority purchases will be identified and the appropriate
         discount taken when PPG sends the purchase information to Norton.
         Purchases not contained in the monthly pending report will not qualify
         as LA adoptions.

                                       9
<PAGE>

STATE ADOPTIONS

         Formal call issued by the State Board of Education asking for
         publishers to submit instructional materials for state evaluation bids,
         contracting and purchase. Most but not all Adoption States require
         publishers to use a state depository.

         Many adoption states, such as GA, VA, FL, provide funding for the
         purchase of non-adoption materials by the local schools in a process,
         which we have described as Local Authority Adoptions. Other states such
         as TX and NC rigorously subscribe to the State Adoption process.

<TABLE>
         The State Adoption states are:
<S>     <C>                                <C>                        <C>                       <C>
         AL                                 ID                         NV                        SC
         AR                                 IN                         MN                        TN
         CA (K-8 only, 9-12 open)           KY                         NC                        TX
         FL                                 LA                         OK                        UT
         GA                                 MS                         OR                        VA
         WV
</TABLE>

         Publishers Duties

         o        Enter into State Adoption Contracts and contracts with
                  counties, school districts and other local authorities within
                  the state adoption states, taking into consideration the
                  Distributor's recommendations and the commercial interests of
                  both of the parties.

         Distributors Duties

         o        Distributor is responsible for all expense related to
                  promotion of Publisher titles to State Adoption contracts
                  except for free copies. Distributor and Publisher to agree
                  upon budget for free copy expenses as per Section 5 a) i).
                  Distributor will be responsible for free copy expenses in
                  excess of agreed budget.

         Terms of Sale

         o        Sales under State Adoption contracts shall be made directly
                  between the Publisher and the States. Net sales shall mean
                  receipts from sales, net of returns, less depository fees,
                  taxes, and postage and handling charges. Commission shall be
                  paid [*] days following receipt by Publisher of payments by
                  the state.

         Handling of Orders

         o        Orders received by Distributor for Works covered under State
                  Adoption Contracts shall be promptly turned over to the
                  Publisher. The Publisher shall be responsible for all order
                  processing, invoicing fulfillment, collection and bad debt of
                  works sold under State Adoption Contracts.

                                       10

<PAGE>

                                  SCHEDULE III

Responsibilities for Promotion

[*]

                                       11Exhibit
10.1

THIS NOTE AND SECURITY AGREEMENT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT"), OR ANY STATE SECURITIES LAW, AND MAY
NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT COVERING SUCH SECURITIES
UNLESS THE ISSUER RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THIS
NOTE REASONABLY SATISFACTORY TO THE ISSUER STATING THAT SUCH SALE,
TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR THAT THE SALE IS MADE IN ACCORDANCE WITH RULE 144
UNDER THE ACT.

MYRIAD PICTURES, INC.

SECURED
PROMISSORY NOTE AND SECURITY AGREEMENT

	$250,000	March 30, 2005

Los Angeles,
California

FOR VALUE RECEIVED, MYRIAD PICTURES, INC. with its
principal address at 1520 Cloverfield Blvd., Santa Monica, CA 90404
(hereinafter referred to collectively as the
"Company" or
"Payor" unless the context indicates
otherwise), promises to pay to the order of TAG ENTERTAINMENT CORP.
(the "Payee" or the
"Holder"), or permitted assigns, the
principal amount of $250,000 on the earlier of (i) March 30, 2006 or
(ii) six months from the date that the Payor or Payee terminates the
Letter of Intent (as described in Section 1.1 below) (the
"Maturity Date"), and unpaid interest on the
unpaid principal balance hereof from the date of this Note at the rate
of 3% per annum. Payments of principal and interest shall be
made in such coin or currency of the United States of America as at the
time of payment shall be legal tender for the payment of public or
private debts.

1.    Adjustments to Principal.

1.1    This Note and Security Agreement
("Note") has been delivered in accordance
with the Letter of Intent dated as of March 30, 2006
("Letter of Intent") executed by and between
Payor and Payee .

1.2    Notwithstanding
the foregoing or anything else in this Note, the principal amount of
this Note shall be reduced by the sum of (a) $25,000, plus (b) any
documented third party expenses spent directly by Payor or its
shareholders on legal and accounting fees directly related to the
"Transaction" (as defined in the Letter of
Intent) in the event that either Payor or Payee elects not to
consummate the Transaction for any reason . In such event, the
principal amount of this Note shall be deemed to have been so reduced
retroactive to the date of this Note.

2.    Terms of
Repayment

2.1    All payments received on
account of this Note shall be applied first to the payment of accrued
interest on this Note and then to the reduction of the unpaid principal
balance of this Note. Interest shall be computed on the basis of a year
of 360 days, for the actual number of days elapsed. Payor may prepay
principal and interest on this Note at anytime without penalty or
premium upon 5 days prior notice to the Holder.

2.2    If payment of the outstanding principal
amount of this Note, together with accrued unpaid interest thereon at
the applicable rate of interest (as set forth herein), is not made on
the earlier to occur of (i) the Maturity Date (as such date may be
extended pursuant to the extension options set forth in Section 4
hereof) and (ii) the Accelerated Maturity Date (defined below), then
interest shall accrue on the outstanding principal amount due under
this Note and on any unpaid accrued interest due on this date of the
payment in full of such amounts (including from and after the date of
the entry of judgment in favor of the Holder in an action to collect
this Note) at an annual rate equal to the lesser of 18% or the
maximum rate of interest permitted by applicable law.

2.3    Notwithstanding
anything to the contrary contained in this Note, Payor shall not be
obligated to pay, and the Holder shall not be entitled to charge,
collect, or receive, interest in excess of the maximum rate allowed by
applicable law. During any period of time in which the interest rate
specified herein exceeds such maximum rate, any amounts of interest
collected by the Holder in excess of such maximum rate shall be deemed
to apply to principal and all payments of interest and principal shall
be recalculated to allow for such
characterization.

2.4    In the event that
the date for the payment of any amount payable under this Note falls
due on a Saturday, Sunday or public holiday under the laws of the State
of California, the time for payment of such amount shall be extended to
the next succeeding business day and interest shall continue to accrue
on any principal amount so effected until the payment thereof on such
extended due date.

3.    Security. This Note is the direct
obligation of the Company and is secured by all of the assets of Payor.
This Note is intended to be a valid and enforceable security agreement
in favor of Holder, and Payor hereby grants to Holder a lien and
security interest in and to all of the assets of Payor under the laws
of the State of California. The Holder of this Note shall be entitled
to all of the rights of a secured party under the laws of the State of
California, including the Uniform Commercial Code. The Payor shall
execute, if required, any and all UCC financing statements, or hereby
consents to the filing by Payor of such financing statements in the
appropriate jurisdictions in order to perfect the security agreement
provided for herein.

4.    Covenants. The Company covenants
and agrees that for so long as any portion of the indebtedness
evidenced by this Note, whether principal, accrued and unpaid interest
or any other amount at any time due hereunder, remains unpaid:

4.1    Negative Covenants. The Company will
not, without the prior written consent of Payee:

(a)   Sell, transfer or in any other manner
dispose of, or purchase or acquire, any business, assets, capital stock
or other property, except (i) in the ordinary course of its business,
or (ii) if (A) the transaction is a bona fide transaction in which
reasonably equivalent value is received by the Company, (B) no Event of
Default or Default (each defined hereinafter) has occurred and is
continuing or would occur after giving effect to such transaction, and
(C) payment of the principal amount of the Note and accrued and unpaid
interest thereon through the date of such payment shall have been made
or provided for from the net proceeds of such transaction.

(b)    Issue, create, incur, assume, permit,
guarantee or suffer to exist any indebtedness or other obligations for
money borrowed or capital lease obligations, except for (i)
indebtedness under the Note and any extension, renewal or refinancing
thereof; (ii) trade indebtedness incurred in the ordinary course of
business; and (iii) indebtedness or other obligations for money
borrowed which are subordinated in all respects, including, but not
limited to, priority upon liquidation, to the Note.

(c)    (i) Amend the certificate or articles
of incorporation or by-laws of the Company in any manner which would
impair or reduce the rights of the holders of the Note, (ii) effect a
merger or consolidation in which the Company is not the surviving
entity or (iii) liquidate, wind up its affairs or dissolve.

(d)    Directly or indirectly, enter into any
transaction with or for the benefit of an affiliate (other than on an
arms'-length basis and other than the reasonable compensation of
an affiliate for services as an officer, director or employee) prior to
repayment of the Note.

4.2     Affirmative
Covenants. The Company will:

(a)    Pay
and discharge all lawful taxes, assessments and governmental charges or
levies imposed upon it, upon its income and profits or upon any of its
assets, before the same shall become in default, as well as all lawful
claims for labor, materials and supplies which, if unpaid, might become
a lien or charge upon such properties or any part thereof, provided,
however, that the Company will not be required to pay and discharge any
such tax, assessment, charge, levy or 

2

claim so long as (i) the validity,
applicability and/or the amount thereof shall be contested in good
faith by appropriate proceedings, (ii) the Company, shall have set
aside on its books adequate reserves in accordance with GAAP with
respect to any such tax, assessment, charge, levy or claim so
contested, and (iii) enforcement of any lien on any assets of the
Company associated with any such taxes, assessments, charges, levies or
claims shall have been effectively stayed or fully bonded pending the
final determination of any such proceedings.

(b)    Do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate
existence, rights and franchises and to comply in all material respects
with all laws, regulations and orders of each governmental authority
having jurisdiction over the Company.

(c)    Promptly following the occurrence of a
Default (as defined herein), furnish to the Holder a statement of the
Company's President or Chief Financial Officer setting forth the
details of such Default and the action which the Company proposes to
take with respect thereto.

(d)    At all
times maintain true and complete records and books of account in which
all of the financial transactions of the Company are duly recorded in
conformance with GAAP.

(e)    Cooperate
with the Holder and execute such further instruments and documents as
the Holder shall reasonably request to carry out to their satisfaction
the transactions contemplated by this Note, including the grant of the
security interests in the assets of the Payor.

(f)    Comply in all material respects with
(i) the applicable laws and regulations wherever its business is
conducted, the failure to comply with which would not have a material
adverse effect on Payor, (ii) the provisions of its charter documents
and by-laws , (iii) all agreements and instruments by which it or any
of its properties may be bound, the failure to comply with which would
not have a material adverse effect on Payor, and (iv) all applicable
decrees, orders and judgments.

5.    Events of Default. If any
of the following events (each an "Event of
Default") shall occur:

5.1    The Company fails to pay the principal
of, any installment of interest accrued on, or any other amount at
anytime owing under, the Note, as and when the same becomes due and
payable hereunder or thereunder; or

5.2    The Company defaults in the due
observance or performance of or breach any of its covenants contained
in this Note; or

5.3    The Company shall
(i) becomes insolvent, (ii) apply for or consent to the appointment of,
or the taking of possession by, a receiver, trustee or similar official
of or for itself or of or for all or a substantial part of its
property, (iii) make an assignment for the benefit of its creditors,
(iv) commence a voluntary case under the Federal Bankruptcy Code, as
now or hereafter in effect (the "Code"), (v)
file a petition seeking to take advantage of any other bankruptcy,
insolvency, moratorium, reorganization or other similar law of any
jurisdiction ("Other Laws"), (vi) acquiesce
as to, or fail to controvert in a timely or appropriate manner, an
involuntary case filed against the Company under the Code, or (vii)
take any corporate action in furtherance of any of the foregoing;
or

5.4    A proceeding or involuntary case
shall be commenced, without the application or consent of the Company
thereof, in any court of competent jurisdiction (i) under the Code,
(ii) seeking liquidation, reorganization, dissolution, winding up or
composition or readjustment of its debts under any Other Laws, or (iii)
seeking the appointment of a trustee, receiver or similar official for
it or for all or any substantial part of its assets, and any such
proceeding or case shall continue undismissed, or unstayed and in
effect, for a period of 90 days; or

5.5    The liquidation or dissolution of the
Company or any vote in favor thereof is approved by the board of
directors and/or shareholders of the Company; or

5.6    A proceeding is commenced to foreclose
a security interest in or lien on any asset of the Company as a result
of a default in the payment or performance of any indebtedness of the
Company in excess of $100,000, together with accrued unpaid interest
thereon and related costs; or

3

5.7    An attachment
or garnishment is levied against the assets of the Company involving an
amount in excess of $100,000 and the lien created by such levy is not
vacated, bonded or stayed within 5 business days after such lien has
attached to such assets; or

5.8    The
Company sells all or substantially all of its assets or merges or is
consolidated with another corporation in which the Company, as the case
may be, is not the surviving corporation,

then, and in
any such event the Holder of this Note may by written notice to the
Company declare the entire unpaid principal amount of this Note
outstanding together with accrued interest thereon due and payable, and
the same shall, unless such default be cured within twenty (20) days
after such notice, forthwith become due and payable upon the expiration
of such twenty (20) day period, without presentment, demand, protest,
or other notice of any kind, all of which are expressly waived.

As used in this Note, "Accelerated Maturity
Date" means any date prior to the Maturity Date on which
the principal of and any accrued and unpaid interest on this Note is
declared to be, or becomes, due pursuant to this Section 5 and
"Default" means any event that is or, with
the passage of time or the giving of notice or both, would be, an Event
of Default.

6.    Suits for Enforcement and Remedies. If any
one or more Events of Default shall occur, the Holder may proceed to
(i) protect and enforce Holder's rights either by suit in equity
or by action at law, or both, whether for the specific performance of
any covenant, condition or agreement contained in this Note or in any
agreement or document referred to herein or in aid of the exercise of
any power granted in this Note or in any agreement or document referred
to herein, (ii) enforce the payment of this Note, or (iii) enforce any
other legal or equitable right of the Holder. No right or remedy herein
or in any other agreement or instrument conferred upon the Holder of
this Note is intended to be exclusive of any other right or remedy, and
each and every such right or remedy shall be cumulative and shall be in
addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or by statute or otherwise.

7.    Corporate Obligation. It is expressly understood that this
Note is solely a corporate obligation of the Company, and that any and
all personal liability, either at common law or in equity or by
constitution or statute, of, and any and all such rights and claims
against, every promoter, subscriber, incorporator, shareholder,
officer, or director of the Company, as such, are hereby expressly
waived and released by the Holder hereof by the acceptance of this Note
and as a part of the consideration for the issue hereof.

8.    Miscellaneous

8.1    The
obligations to make the payments provided for in this Note are absolute
and unconditional and not subject to any defense, set-off,
counterclaim, rescission, recoupment or adjustment whatsoever. No
provision of this Note shall alter or impair the obligations of the
Company hereby.

8.2    If, following the
occurrence of an Event of Default, the Holder of this Note shall seek
to enforce the collection of any amount of principal and/or accrued
interest on this Note, there shall be immediately due and payable by
the Company, in addition to the then unpaid principal of, and accrued
unpaid interest on, this Note, all costs and expenses incurred by the
Holder of this Note in connection therewith, including, without
limitation, reasonable attorneys' fees and disbursements.

8.3    No forbearance, indulgence, delay or
failure to exercise any right or remedy with respect to this Note shall
operate as a waiver or as an acquiescence in any Default, nor shall any
single or partial exercise of any right or remedy preclude any other or
further exercise thereof or the exercise of any other right or
remedy.

8.4    This Note may not be
modified or discharged (other than by payment), except by a writing
duly executed by the Company and Holder.

8.5    The headings of various sections and
subsections of this Note are for convenience of reference only and
shall in no way modify any of the terms or provisions of this Note.

4

8.6    All notices
required to be given to any of the parties hereunder shall be in
writing and shall be deemed to have been sufficiently given for all
purposes when presented personally to such party, sent by telecopier
(with the original timely mailed), or sent by registered, certified or
express mail, return receipt requested, to such party at its address
set forth below:

If to the Company, to:

Myriad
Pictures, Inc.
 1520 Cloverfield Blvd., unit D
 Santa Monica,
CA 90404
 Attn: Kirk D'Amico
 Fax (310)
                      

If to the Payee, to:

TAG Entertainment Corp.

9916 S. Santa Monica Blvd.
 Beverly Hills, CA 90212
 Attn:
Steve Austin
 Fax (310) 277-3720

or hereafter given to the
other party hereto pursuant to the provisions of this Note.

8.7    The Company may not delegate its
obligations under this Note and such attempted delegations shall be
null and void. From and after the earlier of (i) the consummation of
the Transaction, or (ii) either party's election not to
consummate the Transaction, the Holder may assign, pledge or otherwise
transfer this Note without prior written consent of the Company. Prior
to such time, the Holder may not assign, pledge or otherwise transfer
this Note without the prior written consent of the Company. This Note
inures to the benefit of Payee, its successors and its assignee of this
Note and binds the Company, and its successors and assigns, and the
terms "Payee" and "the
Company" whenever occurring herein shall be deemed and
construed to include such respective successors and assigns.

8.8    This Note shall continue to be
effective or be reinstated, as the case may be, if at any time any
payment made pursuant to it is rescinded or must otherwise be returned
by the Holder upon bankruptcy or reorganization or otherwise of the
Company, all as though such payment had not been made.

8.9    THE COMPANY AND THE HOLDER EACH (I)
AGREES THAT ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS NOTE SHALL BE INSTITUTED EXCLUSIVELY IN THE APPROPRIATE STATE
COURT, COUNTY OF LOS ANGELES OR IN THE UNITED STATES DISTRICT COURT FOR
THE DISTRICT OF LOS ANGELES, CALIFORNIA, (II) WAIVES ANY OBJECTION
WHICH THE COMPANY MAY HAVE NOW OR HEREAFTER BASED UPON FORUM
NON CONVENIENS OR TO THE VENUE OF ANY SUCH SUIT, ACTION OR
PROCEEDING, AND (III) IRREVOCABLY CONSENTS TO THE JURISDICTION OF THE
STATE COURT, COUNTY OF LOS ANGELES, CALIFORNIA AND THE UNITED STATES
DISTRICT COURT FOR THE DISTRICT OF LOS ANGELES IN ANY SUCH SUIT, ACTION
OR PROCEEDING. THE COMPANY AND THE HOLDER EACH FURTHER AGREES TO ACCEPT
AND ACKNOWLEDGE SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN
ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE COURT, COUNTY OF LOS
ANGELES OR IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF LOS
ANGELES AND AGREES THAT SERVICE OF PROCESS UPON THE COMPANY OR THE
HOLDER, MAILED BY CERTIFIED MAIL TO THEIR RESPECTIVE ADDRESSES, SUCH
SERVICE TO BECOME EFFECTIVE THREE BUSINESS DAYS AFTER SUCH MAILING,
WILL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE
COMPANY OR THE HOLDER, AS THE CASE MAY BE, IN ANY SUIT, ACTION OR
PROCEEDING. FURTHER, BOTH THE COMPANY AND THE HOLDER HEREBY WAIVE TRIAL
BY JURY IN ANY ACTION TO ENFORCE THIS 

5

NOTE AND IN CONNECTION WITH ANY DEFENSE,
COUNTERCLAIM OR CROSSCLAIM ASSERTED IN ANY SUCH ACTION.

8.10    This Note is exchangeable, without
expense, upon the surrender hereof by the Holder at the principal
executive office of the Company, for two or more new Notes of like
tenor and date (except for the principal amounts thereof) representing
in the aggregate the same principal amount as this Note, in such
denominations as shall be designated by the Holder thereof at the time
of such surrender, provided that such new Notes shall be issuable in
minimum denominations of $10,000 and integral multiples thereof.

8.11    This Note shall be construed in
accordance with and governed by the laws of the State of California
without regard to principles of conflicts of law, and cannot be
changed, discharged or terminated orally but only by an instrument in
writing signed by the party against whom enforcement of any change,
discharge or termination is sought.

8.12    This Note is the binding and legal
obligation of the Payor, enforceable against it in accordance with its
terms and the officer executing this Note on behalf of the Payor has
been duly authorized by the Board of Directors of the Payor to execute
this Note.

PAYOR:

MYRIAD PICTURES,
INC.

By:                                                         

Name:
 Title:

6

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