Document:

Exhibit 10.33

This Note Is Secured By A UCC-1 Financing Statement Filed With The Secretary Of
The State Of Delaware and Texas, and by Registration Statements in British
Columbia, Canada and Ontario, Canada.

                             SECURED PROMISSORY NOTE

$660,000.00 CAD                                                     June 5, 2005
                                                        Toronto, Ontario, Canada

            FOR VALUE RECEIVED, Swiss Medica, Inc., a Delaware corporation (the
"Company"), located at 53 Yonge Street, 3rd Floor, Toronto, Ontario, Canada,
promises to pay to Strategic Equity Corp. (the "Holder"), located at Suite 400,
630 - 8th Avenue SW, Calgary, Alberta T2P 1G6, or its assignee, the principal
sum of $660,000.00 CAD, or so much of that sum as may be advanced under this
promissory note (this "Note") plus interest accruing thereon at a rate of
twenty-four percent (24%) per annum (the "Interest"). This Note has been issued
pursuant to the Note Purchase Agreement dated June 5, 2005, entered into between
the Company and the Holder, and is secured by a Security Agreement dated
December 6, 2004, as amended on December 7, 2004 and June 5, 2005 entered into
between the Company and the Holder.

            All principal due and payable under this Note shall be paid on or
before December 5, 2005. The Interest accruing under this Note from the date
this Note is issued through the maturity date shall be payable as follows:

            (b) $13,200.00 CAD on or before July 5, 2005;

            (c) $13,200.00 CAD on or before August 5, 2005;

            (d) $13,200.00 CAD on or before September 5, 2005;

            (e) $13,200.00 CAD on or before October 5, 2005;

            (f) $13,200.00 CAD on or before November 5, 2005; and

            (g) $13,200.00 CAD on or before December 5, 2005.

            This Note may be prepaid in whole or in part at any time; provided,
however, notwithstanding such prepayment, the Company shall remain obligated to
make all scheduled payments of interest due hereunder as outlined above. If any
payment due date falls on a Saturday, Sunday or holiday, then the Company shall
make payment on the next business day.

            If (I) the Company fails to make any payment as provided herein and
such failure continues for a period of ten (10) days after receipt by Company of
written notice of such default (a "default"), then the Holder hereof may by
notice in writing sent to the Company by regular mail and deemed to be received
two (2) days after the postage date to 53 Yonge Street, 3rd Floor, Toronto,
Ontario, Canada, declare all principal and interest under this Note accelerated
per the schedule set forth above, and immediately due and payable, and pursue
all rights and remedies under applicable law and the UCC-1 Financing Statement
recorded with the Delaware Secretary of State and Texas Secretary of State (as
amended by any subsequent UCC filings), and such other documents executed and/or
recorded to secure performance hereof. No failure by the Holder to take action
with respect to any such default shall affect its subsequent rights to take
action with respect to the same or any other default.

                                       1
<PAGE>

This Note Is Secured By A UCC-1 Financing Statement Filed With The Secretary Of
The State Of Delaware and Texas, and by Registration Statements in British
Columbia, Canada and Ontario, Canada.

            All payments to the Holder hereof shall be made at the address set
forth above or at such other address as the Holder hereof shall specify in
writing to the Company.

            All amounts under the Note will be immediately due and payable to
the Holder in the event that (i) the Company files for relief under the United
States Bankruptcy Code, or (ii) a receiver is appointed to manage any property
secured by this Note, or (iii) any person begins foreclosure proceedings on any
of the property secured by this Note.

            This Note shall be governed by and construed in accordance with the
laws (other than the conflict of laws rules) of the State of Delaware.

            The Company has caused this Note to be executed by its duly
authorized officer.

                                    SWISS MEDICA, INC.,
                                    A DELAWARE CORPORATION

                                    By: /s/ Raghu N. Kilambi
                                       -------------------------------
                                          Raghu N. Kilambi, CEOCOMMON STOCK PURCHASE

                                    AGREEMENT

                           DATED AS OF AUGUST 19, 2005

                                  BY AND AMONG

                                 ROO GROUP, INC.

                                       AND

                       THE PURCHASERS LISTED ON EXHIBIT A

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

ARTICLE I  Purchase and Sale of Common Stock...................................1
   Section 1.1  Purchase and Sale of Common Stock..............................1
   Section 1.2  Purchase Price and Closing.....................................1

ARTICLE II Representations and Warranties......................................2
   Section 2.1  Representations and Warranties of the Company..................2
   Section 2.2  Representations and Warranties of the Purchasers..............12

ARTICLE III Covenants.........................................................15
   Section 3.1  Securities Compliance.........................................15
   Section 3.2  Registration and Listing......................................15
   Section 3.3  Inspection Rights.............................................16
   Section 3.4  Compliance with Laws..........................................16
   Section 3.5  Keeping of Records and Books of Account.......................16
   Section 3.6  Reporting Requirements........................................16
   Section 3.7  Other Agreements..............................................16
   Section 3.8  Use of Proceeds...............................................16
   Section 3.9  Reporting Status..............................................16
   Section 3.10 Disclosure of Transaction.....................................16
   Section 3.11 Disclosure of Material Information............................17
   Section 3.12 Form D........................................................17
   Section 3.13 No Integrated Offerings.......................................17
   Section 3.14 Pledge of Shares..............................................17
   Section 3.15 Reverse Stock Split...........................................17
   Section 3.16 Conversion of Petty Promissory Note...........................17
   Section 3.17 Right of First Refusal........................................17

ARTICLE IV Conditions.........................................................19
   Section 4.1  Conditions Precedent to the Obligation of the Company to Close
                and to Sell the Shares........................................19
   Section 4.2  Conditions Precedent to the Obligation of the Purchasers to
                Close and to Purchase the Shares..............................19

ARTICLE V  Certificate Legend.................................................21
   Section 5.1  Legend........................................................20

ARTICLE VI Indemnification....................................................22
   Section 6.1  General Indemnity.............................................22
   Section 6.2  Indemnification Procedure.....................................23

ARTICLE VII Miscellaneous.....................................................24
   Section 7.1  Fees and Expenses.............................................24
   Section 7.2  Specific Performance; Consent to Jurisdiction; Venue..........24
   Section 7.3  Entire Agreement; Amendment...................................25
   Section 7.4  Notices.......................................................25
   Section 7.5  Waivers.......................................................26

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)
                                                                            Page

   Section 7.6  Headings......................................................26
   Section 7.7  Successors and Assigns........................................26
   Section 7.8  No Third Party Beneficiaries..................................26
   Section 7.9  Governing Law.................................................26
   Section 7.10 Survival......................................................26
   Section 7.11 Counterparts..................................................26
   Section 7.12 Publicity.....................................................27
   Section 7.13 Severability..................................................27
   Section 7.14 Further Assurances............................................27

<PAGE>

                        COMMON STOCK PURCHASE AGREEMENT

      This COMMON  STOCK  PURCHASE  AGREEMENT  this  ("Agreement"),  dated as of
August  19,  2005 by and among ROO Group,  Inc.,  a  Delaware  corporation  (the
"Company"),  and the  purchasers  listed on Exhibit A hereto (each a "Purchaser"
and collectively, the "Purchasers"),  for the purchase and sale of shares of the
Company's  common stock, par value $0.0001 per share (the "Common Stock") by the
Purchasers.

      The parties hereto agree as follows:

                                   ARTICLE I

                        PURCHASE AND SALE OF COMMON STOCK

      Section 1.1 Purchase and Sale of Common Stock.  Upon the  following  terms
and  conditions,  the Company  shall issue and sell to the  Purchasers,  and the
Purchasers shall purchase from the Company,  up to 191,666,667  shares of Common
Stock (the  "Shares")  at a price per share of $0.03  (the "Per  Share  Purchase
Price") for an  aggregate  purchase  price of up to  $5,750,000  (the  "Purchase
Price").  Each  Purchaser  shall invest a minimum of $100,000  provided that the
Company may accept  investments of less than $100,000 upon the mutual  agreement
of the Company and Burnham Hill  Partners,  LLC. The Company and the  Purchasers
are executing and delivering  this Agreement in accordance  with and in reliance
upon the exemption from securities  registration afforded by Section 4(2) of the
U.S.  Securities  Act of  1933,  as  amended,  and  the  rules  and  regulations
promulgated   thereunder  (the  "Securities   Act"),   including   Regulation  D
("Regulation  D"),  and/or  upon  such  other  exemption  from the  registration
requirements  of the  Securities  Act as may be available with respect to any or
all of the investments to be made hereunder.

      Section 1.2 Purchase Price and Closing. In consideration of and in express
reliance upon the representations,  warranties,  covenants, terms and conditions
of this  Agreement,  the Company agrees to issue and sell to the Purchasers and,
in  consideration   of  and  in  express  reliance  upon  the   representations,
warranties,  covenants,  terms and conditions of this Agreement, the Purchasers,
severally but not jointly, agree to purchase the number of Shares, in each case,
set forth  opposite  their  respective  names on Exhibit  A. The  closing of the
purchase  and sale of the  Shares  to be  acquired  by the  Purchasers  from the
Company  under this  Agreement  shall take place at the offices of Kramer  Levin
Naftalis & Frankel LLP,  1177 Avenue of the Americas,  New York,  New York 10036
(the  "Closing")  at 10:00 a.m.  on August 22,  2005 or at such time and on such
date as the  Purchasers  and the  Company may agree upon (the  "Closing  Date"),
provided,  that  all of the  conditions  set  forth in  Article  IV  hereof  and
applicable  to the Closing  shall have been  fulfilled  or waived in  accordance
herewith.  At the Closing, the Company shall deliver or cause to be delivered to
each  Purchaser  (i) a  certificate  registered  in the  name  of the  Purchaser
representing  the  number of Shares  as is set forth  opposite  the name of such
Purchaser on Exhibit A and (ii) any other  deliveries as required by Article IV.
At the Closing,  each Purchaser  shall deliver its portion of the Purchase Price
by wire transfer to an account designated by the Company.

<PAGE>

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

      Section 2.1  Representations  and  Warranties of the Company.  The Company
hereby  represents  and warrants to the  Purchasers  as follows,  as of the date
hereof and the Closing  Date,  except as set forth on the Schedule of Exceptions
attached hereto with each numbered Schedule  corresponding to the section number
herein:

      (a)  Organization,  Good Standing and Power.  The Company is a corporation
duly  incorporated,  validly existing and in good standing under the laws of the
State of  Delaware  and has the  requisite  corporate  power to own,  lease  and
operate its properties and assets and to conduct its business as it is now being
conducted.  The Company  does not have any  Subsidiaries  (as defined in Section
2.1(g)) or own securities of any kind in any other entity except as set forth on
Schedule  2.1(g)  hereto.  The Company and each such  Subsidiary  (as defined in
Section 2.1(g)) is duly qualified to do business as a foreign corporation and is
in good  standing  in every  jurisdiction  in which the  nature of the  business
conducted or property owned by it makes such qualification  necessary except for
any  jurisdiction(s)  (alone or in the  aggregate) in which the failure to be so
qualified  will not have a Material  Adverse  Effect.  For the  purposes of this
Agreement,  "Material Adverse Effect" means any effect on the business,  results
of operations,  prospects,  assets or condition  (financial or otherwise) of the
Company that is material and adverse to the Company and its subsidiaries  and/or
any  condition,  circumstance,  or  situation  that would  prohibit or otherwise
materially  interfere  with the ability of the Company  from  entering  into and
performing any of its obligations  under the  Transaction  Documents (as defined
below) in any material respect.

      (b) Authorization;  Enforcement.  The Company has the requisite  corporate
power and  authority  to enter  into and  perform  this  Agreement,  the  Escrow
Agreement by and among the Company,  the Purchasers and the escrow agent,  dated
as of the date  hereof,  substantially  in the  form of  Exhibit  B hereto  (the
"Escrow Agreement") and that certain  Registration Rights Agreement by and among
the Company and the Purchasers,  dated as of the date hereof,  substantially  in
the form of Exhibit C attached hereto (the "Registration  Rights Agreement" and,
together  with  the  Escrow  Agreement  and  this  Agreement,  the  "Transaction
Documents") and to issue and sell the Shares in accordance with the terms hereof
and to complete the transactions  contemplated by the Transaction Documents. The
execution,  delivery and performance of the Transaction Documents by the Company
and the  consummation by it of the transactions  contemplated  thereby have been
duly and validly  authorized by all necessary  corporate action,  and, except as
set forth on  Schedule  2.1(b),  no  further  consent  or  authorization  of the
Company,  its Board of Directors or stockholders is required.  When executed and
delivered by the Company,  each of the Transaction  Documents shall constitute a
valid and binding obligation of the Company  enforceable  against the Company in
accordance  with its  terms,  except as such  enforceability  may be  limited by
applicable bankruptcy, reorganization, moratorium, liquidation, conservatorship,
receivership or similar laws relating to, or affecting generally the enforcement
of, creditors'  rights and remedies or by other equitable  principles of general
application.

                                      -2-
<PAGE>

      (c)  Capitalization.  The  authorized  capital  stock of the Company as of
August 19, 2005 is set forth on Schedule  2.1(c) hereto.  All of the outstanding
shares of the Common  Stock and any other  outstanding  security  of the Company
have been  duly and  validly  authorized  and  validly  issued,  fully  paid and
nonassessable   and  were  issued  in  accordance   with  the   registration  or
qualification  provisions of the Securities Act, or pursuant to valid exemptions
therefrom.  Except as set forth in this  Agreement  and as set forth on Schedule
2.1(c)  hereto,  no shares of Common Stock or any other  security of the Company
are entitled to preemptive rights,  registration rights, rights of first refusal
or similar rights and there are no outstanding options,  warrants, scrip, rights
to subscribe to, call or commitments of any character whatsoever relating to, or
securities  or rights  convertible  into,  any  shares of  capital  stock of the
Company. Furthermore,  except as set forth in this Agreement and as set forth on
Schedule 2.1(c) hereto, there are no contracts, commitments,  understandings, or
arrangements  by which the  Company is or may become  bound to issue  additional
shares of the  capital  stock of the Company or  options,  securities  or rights
convertible  into shares of capital  stock of the Company.  Except for customary
transfer  restrictions  contained in  agreements  entered into by the Company in
order to sell  restricted  securities or as provided on Schedule  2.1(c) hereto,
the  Company  is not a party  to or  bound  by any  agreement  or  understanding
granting  registration or anti-dilution rights to any person with respect to any
of its equity or debt securities.  Except as set forth on Schedule  2.1(c),  the
Company  is not a  party  to,  and it has no  knowledge  of,  any  agreement  or
understanding  restricting  the voting or  transfer of any shares of the capital
stock of the Company.

      (d)  Issuance of Shares.  The Shares to be issued at the Closing have been
duly authorized by all necessary  corporate action and, when paid for and issued
in accordance with the terms hereof,  the Shares will be validly  issued,  fully
paid and nonassessable and free and clear of all liens,  encumbrances and rights
of refusal of any kind and the holders shall be entitled to all rights  accorded
to a holder of Common Stock.

      (e)  No  Conflicts.  The  execution,   delivery  and  performance  of  the
Transaction  Documents by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby do not and will not (i) violate any
provision of the Company's  Certificate of Incorporation (the  "Certificate") or
Bylaws (the "Bylaws"),  each as amended to date, or any Subsidiary's  comparable
charter  documents,  (ii)  conflict  with,  or constitute a default (or an event
which with  notice or lapse of time or both would  become a default)  under,  or
give  to  others  any  rights  of   termination,   amendment,   acceleration  or
cancellation of, any agreement,  mortgage, deed of trust, indenture, note, bond,
license,  lease agreement,  instrument or obligation to which the Company or any
of  its  Subsidiaries  is a  party  or by  which  the  Company  or  any  of  its
Subsidiaries'  respective  properties or assets are bound,  or (iii) result in a
violation of any federal,  state,  local or foreign statute,  rule,  regulation,
order,  judgment  or decree  (including  federal and state  securities  laws and
regulations)  applicable to the Company or any of its  Subsidiaries  or by which
any  property  or asset of the  Company or any of its  Subsidiaries  is bound or
affected, except, in all cases, other than violations pursuant to clauses (i) or
(iii) (with respect to federal and state  securities  laws) above,  except,  for
such conflicts, defaults, terminations, amendments, acceleration,  cancellations
and violations as would not,  individually or in the aggregate,  have a Material
Adverse  Effect.  Neither the Company  nor any of its  Subsidiaries  is required
under  federal,  state,  foreign or local law,  rule or regulation to obtain any
consent, authorization or order of, or make any filing or registration with, any
court or governmental agency in order for it to execute,  deliver or perform any

                                      -3-
<PAGE>

of its obligations under the Transaction  Documents or issue and sell the Shares
in  accordance  with the terms  hereof  (other than any  filings,  consents  and
approvals which may be required to be made by the Company under applicable state
and federal  securities  laws,  rules or as may be  required  for the Company to
carry out its obligations under the Registration Rights Agreement).

      (f) Commission Documents,  Financial  Statements.  The Common Stock of the
Company  is  registered  pursuant  to Section  12(b) or 12(g) of the  Securities
Exchange Act of 1934, as amended (the "Exchange Act"),  and, except as disclosed
on Schedule 2.1(f) hereto, the Company has timely filed all reports,  schedules,
forms,  statements  and  other  documents  required  to be  filed by it with the
Securities and Exchange Commission (the "Commission")  pursuant to the reporting
requirements of the Exchange Act, including pursuant to Sections 13, 14 or 15(d)
thereof (all of the  foregoing and all exhibits  included  therein and financial
statement and schedules  thereto,  including  filings  incorporated by reference
therein being referred to herein as the "Commission Documents"). At the times of
their respective filings, the Form 10-QSB for the fiscal quarter ended March 31,
2005, (the "Form 10-QSB") and the Form 10-KSB for the fiscal year ended December
31,  2004  (the  "Form  10-KSB")  complied  in all  material  respects  with the
requirements of the Exchange Act and the rules and regulations of the Commission
promulgated thereunder, and the Form 10-QSB and Form 10-KSB at the time of their
respective  filings did not contain any untrue  statement of a material  fact or
omit to state a material  fact  required to be stated  therein or  necessary  in
order to make the statements  therein, in light of the circumstances under which
they were made, not  misleading.  As of their  respective  dates,  the financial
statements of the Company included in the Commission Documents were complete and
correct  in all  material  respects  and  complied  with  applicable  accounting
requirements  and the published rules and regulations of the Commission or other
applicable rules and regulations with respect thereto. Such financial statements
have been prepared in accordance with accounting  principles  generally accepted
in the United States ("GAAP")  applied on a consistent  basis during the periods
involved (except (i) as may be otherwise indicated in such financial  statements
or the Notes thereto or (ii) in the case of unaudited interim statements, to the
extent  they  may  not  include   footnotes  or  may  be  condensed  or  summary
statements),  and fairly present in all material respects the financial position
of the Company and its  Subsidiaries  as of the dates thereof and the results of
operations  and cash flows for the periods then ended  (subject,  in the case of
unaudited statements, to normal year-end audit adjustments).

      (g) Subsidiaries. Schedule 2.1(g) hereto sets forth each Subsidiary of the
Company,  showing the  jurisdiction of its  incorporation  or  organization  and
showing the percentage of each person's  ownership of the  outstanding  stock or
other  interests  of such  Subsidiary.  For  the  purposes  of  this  Agreement,
"Subsidiary"  shall mean any  corporation  or other  entity of which 100% of the
securities or other ownership  interest having ordinary voting power (absolutely
or  contingently)  for the  election of directors  or other  persons  performing
similar  functions  are at the time owned  directly or indirectly by the Company
and/or any of its other  Subsidiaries.  All of the outstanding shares of capital
stock of each Subsidiary  have been duly authorized and validly issued,  and are
fully paid and nonassessable. There are no outstanding preemptive, conversion or
other rights,  options,  warrants or agreements  granted or issued by or binding
upon any  Subsidiary  for the purchase or  acquisition  of any shares of capital
stock of any Subsidiary or any other securities  convertible into,  exchangeable
for or evidencing  the rights to subscribe for any shares of such capital stock.

                                      -4-
<PAGE>

Neither the Company nor any Subsidiary is subject to any obligation  (contingent
or otherwise)  to  repurchase  or otherwise  acquire or retire any shares of the
capital stock of any Subsidiary or any convertible securities,  rights, warrants
or options of the type described in the preceding  sentence  except as set forth
on Schedule  2.1(g) hereto.  Neither the Company nor any Subsidiary is party to,
nor has any knowledge of, any  agreement  restricting  the voting or transfer of
any shares of the capital stock of any Subsidiary.

      (h) No Material  Adverse Change.  Since December 31, 2004, the Company has
not experienced or suffered any Material Adverse Effect,  except as disclosed on
Schedule 2.1(h) hereto.

      (i) No  Undisclosed  Liabilities.  Except as disclosed on Schedule  2.1(i)
hereto, since December 31, 2004, neither the Company nor any of its Subsidiaries
has incurred any liabilities,  obligations, claims or losses (whether liquidated
or  unliquidated,   secured  or  unsecured,  absolute,  accrued,  contingent  or
otherwise)  other than those incurred in the ordinary course of the Company's or
its  Subsidiaries  respective  businesses  or  which,  individually  or  in  the
aggregate,  are not reasonably  likely to have a Material Adverse Effect.  Since
December 31, 2004,  except as disclosed  in  Commission  Documents,  none of the
Company or any of its Subsidiaries has participated in any transaction  material
to the condition of the Company  which is outside of the ordinary  course of its
business.

      (j) No  Undisclosed  Events or  Circumstances.  Since  December  31, 2004,
except as disclosed on Schedule  2.1(j)  hereto,  no event or  circumstance  has
occurred or exists  with  respect to the  Company or its  Subsidiaries  or their
respective  businesses,  properties,  operations or financial condition,  which,
under  applicable  law,  rule  or  regulation,  requires  public  disclosure  or
announcement  by the  Company but which has not been so  publicly  announced  or
disclosed.

      (k) Indebtedness.  Schedule 2.1(k) hereto sets forth as of the date hereof
all  outstanding  secured  and  unsecured  Indebtedness  of the  Company  or any
Subsidiary, or for which the Company or any Subsidiary has commitments.  For the
purposes of this  Agreement,  "Indebtedness"  shall mean (a) any liabilities for
borrowed money or amounts owed in excess of $150,000  (other than trade accounts
payable  incurred  in the  ordinary  course of  business),  (b) all  guaranties,
endorsements  and other  contingent  obligations in respect of  liabilities  for
borrowed  money of others in excess of $150,000,  whether or not the same are or
should be  reflected  in the  Company's  balance  sheet (or the notes  thereto),
except  guaranties  by  endorsement  of  negotiable  instruments  for deposit or
collection or similar  transactions in the ordinary course of business;  and (c)
the present  value of any lease  payments in excess of $25,000 due under  leases
required to be capitalized in accordance with GAAP.  Neither the Company nor any
Subsidiary is in default with respect to any Indebtedness.

      (l) Title to Assets. Each of the Company and the Subsidiaries has good and
valid title to all of its real and personal property reflected in the Commission
Documents,  free and clear of any mortgages,  pledges,  charges, liens, security
interests or other  encumbrances,  except for those indicated on Schedule 2.1(l)
hereto or such that,  individually or in the aggregate,  do not cause a Material
Adverse Effect.  All said leases of the Company and each of its Subsidiaries are
valid and subsisting and in full force and effect.

                                      -5-
<PAGE>

      (m)  Actions  Pending.  There is no action,  suit,  claim,  investigation,
arbitration, alternate dispute resolution proceeding or other proceeding pending
or, to the  knowledge  of the  Company,  threatened  against  the Company or any
Subsidiary  which  questions the validity of this  Agreement or any of the other
Transaction Documents or any of the transactions  contemplated hereby or thereby
or any action  taken or to be taken  pursuant  hereto or thereto.  Except as set
forth on Schedule 2.1(m) hereto, there is no action, suit, claim, investigation,
arbitration, alternate dispute resolution proceeding or other proceeding pending
or, to the  knowledge  of the  Company,  threatened  against  or  involving  the
Company,  any Subsidiary or any of their respective  properties or assets, which
individually  or in the  aggregate,  could  reasonably  be  expected  to  have a
Material   Adverse  Effect.   There  are  no  outstanding   orders,   judgments,
injunctions,  awards or decrees  of any court,  arbitrator  or  governmental  or
regulatory  body  against  the  Company or any  Subsidiary  or any  officers  or
directors of the Company or any  Subsidiary in their  capacities as such,  which
individually  or in the  aggregate,  could  reasonably  be  expected  to  have a
Material Adverse Effect.

      (n) Compliance with Law. The business of the Company and the  Subsidiaries
has been and is presently  being  conducted in  accordance  with all  applicable
federal,  state and local governmental laws, rules,  regulations and ordinances,
except as set forth in the Commission  Documents or on Schedule 2.1(n) hereto or
such that,  individually or in the aggregate,  the noncompliance therewith could
not reasonably be expected to have a Material  Adverse  Effect.  The Company and
each of its Subsidiaries have all franchises,  permits,  licenses,  consents and
other governmental or regulatory  authorizations and approvals necessary for the
conduct of its  business  as now being  conducted  by it unless  the  failure to
possess such franchises,  permits, licenses,  consents and other governmental or
regulatory authorizations and approvals, individually or in the aggregate, could
not reasonably be expected to have a Material Adverse Effect.

      (o) Taxes.  Except as set forth on Schedule 2.1(o) hereto, the Company and
each of the  Subsidiaries has accurately  prepared and filed all federal,  state
and  other tax  returns  required  by law to be filed by it,  has paid all taxes
shown to be due and all additional  assessments,  and adequate  provisions  have
been and are  reflected  in the  financial  statements  of the  Company  and the
Subsidiaries for all current taxes and other charges to which the Company or any
Subsidiary  is subject and which are not  currently  due and payable.  Except as
disclosed on Schedule  2.1(o) hereto,  none of the federal income tax returns of
the Company or any Subsidiary has been audited by the Internal  Revenue Service.
The Company has no  knowledge  of any  additional  assessments,  adjustments  or
contingent tax liability  (whether  federal or state) of any nature  whatsoever,
whether  pending or  threatened  against the Company or any  Subsidiary  for any
period, nor of any basis for any such assessment, adjustment or contingency.

      (p) Certain  Fees.  Except as set forth on  Schedule  2.1(p)  hereto,  the
Company has not employed any broker or finder or incurred any  liability for any
brokerage or investment banking fees,  commissions,  finders'  structuring fees,
financial advisory fees or other similar fees in connection with the Transaction
Documents.

                                      -6-
<PAGE>

      (q)  Disclosure.  Neither this  Agreement or the Schedules  hereto nor any
other documents,  certificates or instruments  furnished to the Purchasers by or
on behalf of the Company or any Subsidiary in connection  with the  transactions
contemplated by this Agreement  contains any untrue statement of a material fact
or omits to state a material fact necessary in order to make the statements made
herein or therein,  in the light of the circumstances under which they were made
herein or therein, not misleading.

      (r) Operation of Business.  Except as set forth on Schedule 2.1(r) hereto,
the Company and each of the Subsidiaries owns or possesses the rights to use all
patents, trademarks, domain names (whether or not registered) and any patentable
improvements   or   copyrightable   derivative   works  thereof,   websites  and
intellectual  property  rights  relating  thereto,  service marks,  trade names,
copyrights,  licenses and authorizations  which are necessary for the conduct of
its  business as now  conducted  without any conflict or  infringement  with the
rights of others.

      (s)  Environmental  Compliance.  Except as  disclosed  on Schedule  2.1(s)
hereto,  the Company and each of its  Subsidiaries  have  obtained  all material
approvals, authorization,  certificates,  consents, licenses, orders and permits
or other similar  authorizations  of all governmental  authorities,  or from any
other person,  that are required under any  Environmental  Laws.  "Environmental
Laws"  shall  mean  all  applicable  laws  relating  to  the  protection  of the
environment  including,  without  limitation,  all  requirements  pertaining  to
reporting,  licensing,  permitting,  controlling,  investigating  or remediating
emissions,  discharges, releases or threatened releases of hazardous substances,
chemical substances, pollutants,  contaminants or toxic substances, materials or
wastes, whether solid, liquid or gaseous in nature, into the air, surface water,
groundwater or land, or relating to the manufacture,  processing,  distribution,
use,  treatment,   storage,   disposal,   transport  or  handling  of  hazardous
substances, chemical substances,  pollutants,  contaminants or toxic substances,
material or wastes,  whether solid,  liquid or gaseous in nature.  Except as set
forth on Schedule  2.1(s)  hereto,  the Company has all  necessary  governmental
approvals  required under all Environmental  Laws and used in its business or in
the business of any of its Subsidiaries,  except for such instances as would not
individually or in the aggregate have a Material Adverse Effect. The Company and
each of its  Subsidiaries  are also in  compliance  with all other  limitations,
restrictions,  conditions,  standards,  requirements,  schedules and  timetables
required or imposed under all  Environmental  Laws. Except for such instances as
would not individually or in the aggregate have a Material Adverse Effect, there
are no past or present events, conditions, circumstances,  incidents, actions or
omissions  relating to or in any way affecting  the Company or its  Subsidiaries
that  violate or would be  reasonably  likely to violate any  Environmental  Law
after  the  Closing  or that  would be  reasonably  likely  to give  rise to any
environmental  liability,  or  otherwise  form the basis of any  claim,  action,
demand,  suit,  proceeding,  hearing,  study  or  investigation  (i)  under  any
Environmental  Law or (ii) based on or related to the  manufacture,  processing,
distribution,   use,   treatment,   storage   (including,   without  limitation,
underground storage tanks),  disposal,  transport or handling,  or the emission,
discharge, release or threatened release of any hazardous substance.

      (t) Books and  Records;  Internal  Accounting  Controls.  The  records and
documents of the Company and its Subsidiaries accurately reflect in all material
respects  the  information  relating  to the  business  of the  Company  and its
Subsidiaries, the location and collection of their assets, and the nature of all

                                      -7-
<PAGE>

transactions  giving  rise to the  obligations  or  accounts  receivable  of the
Company or any Subsidiary.  The Company and each of its Subsidiaries  maintain a
system  of  internal   accounting  controls  sufficient  to  provide  reasonable
assurance that (i)  transactions  are executed in accordance  with  management's
general or specific authorizations,  (ii) transactions are recorded as necessary
to permit  preparation  of financial  statements in conformity  with GAAP and to
maintain  asset  accountability,  (iii)  access to assets is  permitted  only in
accordance  with  management's  general  or  specific  authorization,  (iv)  the
recorded  accountability  for assets is  compared  with the  existing  assets at
reasonable  intervals  and  appropriate  actions  are taken with  respect to any
differences  and (v)  accounts,  notes and other  receivables  and inventory are
recorded  accurately,  and proper and adequate  procedures  are  implemented  to
effect the collection thereof on a current and timely basis. Except as set forth
on Schedule  2.1(t) hereto,  there are no significant  deficiencies  or material
weaknesses  in the design or  operation  of  internal  controls  over  financial
reporting  that would  reasonably be expected to adversely  affect the Company's
ability to record,  process,  summarize and report  financial  information,  and
there is no fraud, whether or not material,  that involves management or, to the
knowledge of the Company,  other  employees who have a  significant  role in the
Company's internal controls and the Company has provided to the Purchaser copies
of any written materials relating to the foregoing.

      (u)  Material  Agreements.  Except  for the  Transaction  Documents  (with
respect to clause (i) only), as disclosed in the Commission  Documents or as set
forth on Schedule 2.1(u) hereto,  or as would not be reasonably likely to have a
Material  Adverse  Effect,  (i) the  Company and each of its  Subsidiaries  have
performed  all  obligations  required to be  performed by them to date under any
written or oral contract, instrument, agreement, commitment, obligation, plan or
arrangement,  filed or required to be filed with the  Commission  (the "Material
Agreements"),  (ii) neither the Company nor any of its Subsidiaries has received
any notice of default under any Material Agreement and, (iii) to the best of the
Company's  knowledge,  neither  the Company  nor any of its  Subsidiaries  is in
default under any Material Agreement.

      (v) Transactions  with Affiliates.  Except as set forth on Schedule 2.1(v)
hereto, there are no loans, leases, agreements,  contracts,  royalty agreements,
management  contracts or arrangements or other continuing  transactions  between
(a)  the  Company,  any  Subsidiary  or any of  their  respective  customers  or
suppliers on the one hand,  and (b) on the other hand,  any  officer,  employee,
consultant or director of the Company, or any of its Subsidiaries, or any person
owning any capital  stock of the Company or any  Subsidiary or any member of the
immediate family of such officer, employee, consultant,  director or stockholder
or any  corporation  or  other  entity  controlled  by such  officer,  employee,
consultant, director or stockholder, or a member of the immediate family of such
officer, employee,  consultant,  director or stockholder which, in each case, is
required to be disclosed in the  Commission  Documents or in the Company's  most
recently  filed  definitive  proxy  statement  on Schedule  14A,  that is not so
disclosed in the Commission Documents or in such proxy statement.

      (w)   Securities   Act  of  1933.   Based  in   material   part  upon  the
representations  and  warranties  of the  Purchasers  contained  in Section  2.2
hereof, the Company has complied and will comply with all applicable federal and
state  securities  laws in connection  with the offer,  issuance and sale of the
Shares hereunder.  Neither the Company nor anyone acting on its behalf, directly

                                      -8-
<PAGE>

or indirectly,  has or will sell,  offer to sell or solicit offers to buy any of
the Shares or similar  securities  to, or solicit  offers with  respect  thereto
from, or enter into any negotiations  relating thereto with, any person,  or has
taken or will take any action so as to bring the issuance and sale of any of the
Shares under the  registration  provisions of the  Securities Act and applicable
state  securities  laws, and neither the Company nor any of its affiliates,  nor
any person  acting on its or their  behalf,  has  engaged in any form of general
solicitation  or general  advertising  (within the meaning of Regulation D under
the Securities Act) in connection with the offer or sale of any of the Shares.

      (x) Governmental Approvals. Except as set forth on Schedule 2.1(x) hereto,
and except for the filing of any notice prior or  subsequent to the Closing that
may be required under applicable state and/or federal  securities laws (which if
required,  shall  be  filed  on a  timely  basis),  no  authorization,  consent,
approval,  license,  exemption  of,  filing  or  registration  with any court or
governmental department,  commission,  board, bureau, agency or instrumentality,
domestic or foreign,  is or will be necessary  for, or in connection  with,  the
execution or delivery of the Shares,  or for the  performance  by the Company of
its obligations under the Transaction Documents.

      (y) Employees; Labor Relations. Neither the Company nor any Subsidiary has
any  collective  bargaining  arrangements  or  agreements  covering  any  of its
employees,  except as set forth on Schedule  2.1(y)  hereto or  disclosed in the
Commission Documents. Except as set forth on Schedule 2.1(y) hereto or disclosed
in the  Commission  Documents,  neither the Company nor any  Subsidiary  has any
employment    contract,    agreement    regarding    proprietary    information,
non-competition   agreement,    non-solicitation   agreement,    confidentiality
agreement,  or any other similar contract or restrictive  covenant,  relating to
the right of any officer,  employee or  consultant  to be employed or engaged by
the  Company or such  Subsidiary  required  to be  disclosed  in the  Commission
Documents  that is not so  disclosed.  Since  December  31,  2004,  no  officer,
consultant or key employee of the Company or any Subsidiary  whose  termination,
either  individually or in the aggregate,  would be reasonably  likely to have a
Material Adverse Effect, has terminated or, to the knowledge of the Company, has
any present  intention of terminating  his or her employment or engagement  with
the Company or any  Subsidiary.  Except as could not  reasonably  be expected to
have  a  Material  Adverse  Effect,  (i)  neither  the  Company  nor  any of its
Subsidiaries is engaged in any unfair labor  practice,  (ii) there is no strike,
labor dispute, slowdown or stoppage pending or, to the knowledge of the Company,
threatened against the Company or any of its Subsidiaries, and (iii) neither the
Company  nor any of its  Subsidiaries  is a party to any  collective  bargaining
agreement or contract.

      (z) Absence of Certain Developments. Except as provided on Schedule 2.1(z)
hereto, since December 31, 2004, neither the Company nor any Subsidiary has:

            (i) issued any stock,  bonds or other  corporate  securities  or any
right, options or warrants with respect thereto;

            (ii) borrowed any amount in excess of $150,000 or incurred or become
subject to any other liabilities in excess of $150,000  (absolute or contingent)
except current liabilities incurred in the ordinary course of business which are
comparable  in nature  and amount to the  current  liabilities  incurred  in the
ordinary  course of business  during the comparable  portion of its prior fiscal
year,  as adjusted to reflect the current  nature and volume of the  business of
the Company and its Subsidiaries;

                                      -9-
<PAGE>

            (iii)  discharged or satisfied any lien or  encumbrance in excess of
$150,000 or paid any obligation or liability  (absolute or contingent) in excess
of $150,000,  other than  current  liabilities  paid in the  ordinary  course of
business;

            (iv) declared or made any payment or  distribution  of cash or other
property to stockholders with respect to its stock, or purchased or redeemed, or
made any  agreements so to purchase or redeem,  any shares of its capital stock,
in each case in excess of $50,000 individually or $100,000 in the aggregate;

            (v) sold,  assigned or  transferred  any other tangible  assets,  or
canceled any debts or claims, in each case in excess of $150,000,  except in the
ordinary course of business;

            (vi) sold,  assigned or transferred  any patent rights,  trademarks,
trade  names,   copyrights,   trade  secrets  or  other  intangible   assets  or
intellectual property rights in excess of $250,000, or disclosed any proprietary
confidential  information  to any person  except to  customers  in the  ordinary
course of business or to the Purchasers or their representatives;

            (vii) suffered any material  losses or waived any rights of material
value,  whether or not in the ordinary course of business,  or suffered the loss
of any material amount of prospective business;

            (viii)  made any  changes  in  employee  compensation  except in the
ordinary course of business and consistent with past practices;

            (ix)  made  capital   expenditures  or  commitments   therefor  that
aggregate in excess of $150,000;

            (x) entered  into any  material  transaction,  whether or not in the
ordinary course of business;

            (xi) made charitable contributions or pledges in excess of $10,000;

            (xii)  suffered any material  damage,  destruction or casualty loss,
whether or not covered by insurance;

            (xiii) experienced any material problems with labor or management in
connection with the terms and conditions of their employment; or

            (xiv) entered into an agreement,  written or otherwise,  to take any
of the foregoing actions.

                                      -10-
<PAGE>

      (aa) Public Utility Holding Company Act and Investment Company Act Status.
The  Company is not a "holding  company" or a "public  utility  company" as such
terms are defined in the Public Utility Holding Company Act of 1935, as amended.
The Company is not, and as a result of and immediately upon the Closing will not
be,  an  "investment  company"  or a  company  "controlled"  by  an  "investment
company," within the meaning of the Investment Company Act of 1940, as amended.

      (bb) ERISA. No liability to the Pension Benefit  Guaranty  Corporation has
been incurred with respect to any Plan by the Company or any of its Subsidiaries
which is or would be materially adverse to the Company and its Subsidiaries. The
execution and delivery of this Agreement and the issuance and sale of the Shares
will not involve any transaction which is subject to the prohibitions of Section
406 of the Employee Retirement Income Security Act of 1974, as amended ("ERISA")
or in connection  with which a tax could be imposed  pursuant to Section 4975 of
the Internal  Revenue Code of 1986,  as amended,  provided  that,  if any of the
Purchasers,  or any person or entity that owns a  beneficial  interest in any of
the  Purchasers,  is an "employee  pension  benefit plan" (within the meaning of
Section  3(2) of  ERISA)  with  respect  to which  the  Company  is a "party  in
interest"  (within the meaning of Section 3(14) of ERISA),  the  requirements of
Sections 407(d)(5) and 408(e) of ERISA, if applicable,  are met. As used in this
Section 2.1(bb),  the term "Plan" shall mean an "employee  pension benefit plan"
(as  defined  in  Section  3 of  ERISA)  which  is or has  been  established  or
maintained,  or to which  contributions are or have been made, by the Company or
any Subsidiary or by any trade or business, whether or not incorporated,  which,
together  with the  Company  or any  Subsidiary,  is under  common  control,  as
described in Section 414(b) or (c) of the Code.

      (cc) Anti-takeover Device. Neither the Company nor any of its Subsidiaries
has any  outstanding  shareholder  rights  plan or "poison  pill" or any similar
arrangement.   There  are  no  provisions  of  any   anti-takeover  or  business
combination  statute  applicable to the Company,  the Certificate and the Bylaws
which would preclude the issuance and sale of the Shares and the consummation of
the  other  transactions  contemplated  by this  Agreement  or any of the  other
Transaction Documents.

      (dd) Independent Nature of Purchasers.  The Company  acknowledges that the
obligations of each Purchaser  under the  Transaction  Documents are several and
not joint with the obligations of any other Purchaser, and no Purchaser shall be
responsible  in any way for the  performance  of the  obligations  of any  other
Purchaser under the  Transaction  Documents and the Company shall not be excused
from  performance  of its  obligations  to any Purchaser  under the  Transaction
Documents as a result of  nonperformance  or breach by any other Purchaser.  The
Company  acknowledges  that the decision of each  Purchaser  to purchase  Shares
pursuant to this Agreement has been made by such Purchaser  independently of any
other purchaser and independently of any information,  materials,  statements or
opinions  as  to  the  business,   affairs,   operations,   assets,  properties,
liabilities,  results of  operations,  condition  (financial  or  otherwise)  or
prospects of the Company or of its Subsidiaries  which may have made or given by
any other Purchaser or by any agent or employee of any other  Purchaser,  and no
Purchaser  or any of its agents or  employees  shall have any  liability  to any
Purchaser  (or  any  other  person)   relating  to  or  arising  from  any  such
information,  materials,  statements or opinions.  The Company acknowledges that
nothing contained herein, or in any Transaction Document, and no action taken by

                                      -11-
<PAGE>

any Purchaser  pursuant  hereto or thereto,  shall be deemed to  constitute  the
Purchasers as a partnership,  an association,  a joint venture or any other kind
of entity,  or create a presumption that the Purchasers are in any way acting in
concert  or as a group  with  respect to such  obligations  or the  transactions
contemplated by the Transaction  Documents.  The Company  acknowledges that each
Purchaser  shall be  entitled to  independently  protect and enforce its rights,
including without limitation, the rights arising out of this Agreement or out of
the other  Transaction  Documents,  and it shall not be necessary  for any other
Purchaser  to be  joined  as an  additional  party  in any  proceeding  for such
purpose. The Company acknowledges that for reasons of administrative convenience
only,  the  Transaction  Documents  have been prepared by counsel for one of the
Purchasers  and such counsel does not represent all of the  Purchasers  but only
such  Purchaser  and the other  Purchasers  have retained  their own  individual
counsel  with  respect to the  transactions  contemplated  hereby.  The  Company
acknowledges  that it has elected to provide all Purchasers  with the same terms
and Transaction  Documents for the convenience of the Company and not because it
was required or requested to do so by the Purchasers.  The Company  acknowledges
that such procedure with respect to the Transaction  Documents in no way creates
a presumption that the Purchasers are in any way acting in concert or as a group
with  respect to the  Transaction  Documents  or the  transactions  contemplated
hereby or thereby.

      (ee)  No  Integrated  Offering.  Neither  the  Company,  nor  any  of  its
affiliates,  nor any  person  acting on its or their  behalf,  has  directly  or
indirectly  made any offers or sales of any security or solicited  any offers to
buy any security under circumstances that would cause the offering of the Shares
pursuant to this Agreement to be integrated  with prior offerings by the Company
for purposes of the  Securities Act which would prevent the Company from selling
the Shares  pursuant to Regulation D and Rule 506 thereof  under the  Securities
Act, or any applicable  exchange-related  stockholder approval  provisions,  nor
will the Company or any of its  affiliates  or  subsidiaries  take any action or
steps that would cause the  offering of the Shares to be  integrated  with other
offerings if such other offering, if integrated,  would cause the offer and sale
of the Shares not to be exempt from  registration  pursuant to  Regulation D and
Rule 506  thereof  under  the  Securities  Act.  The  Company  does not have any
registration  statement  pending  before the  Commission or currently  under the
Commission's review and, except as disclosed in Schedule 2.1(z),  since March 1,
2005,  the Company has not offered or sold any of its equity  securities or debt
securities convertible into shares of Common Stock.

      (ff)  Sarbanes-Oxley Act. The Company is in compliance with the applicable
provisions of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), and the
rules and regulations promulgated  thereunder,  that are effective and for which
compliance  by the  Company is  required  as of the date  hereof and  intends to
comply with other applicable provisions of the Sarbanes-Oxley Act, and the rules
and  regulations  promulgated   thereunder,   upon  the  effectiveness  of  such
provisions or the date by which compliance therewith by the Company is required.

      Section 2.2 Representations and Warranties of the Purchasers.  Each of the
Purchasers  hereby represents and warrants to the Company with respect solely to
itself  and not with  respect to any other  Purchaser  as follows as of the date
hereof and as of the Closing Date:

                                      -12-
<PAGE>

      (a)  Organization  and Standing of the Purchasers.  If the Purchaser is an
entity,   such  Purchaser  is  a  corporation,   limited  liability  company  or
partnership  duly  incorporated  or  organized,  validly  existing  and in  good
standing  under  the  laws  of  the   jurisdiction  of  its   incorporation   or
organization.

      (b)  Authorization  and Power.  Such Purchaser has the requisite power and
authority to enter into and perform the  Transaction  Documents  and to purchase
the Shares being sold to it hereunder.  The execution,  delivery and performance
of the Transaction Documents by such Purchaser and the consummation by it of the
transactions  contemplated  hereby have been duly  authorized  by all  necessary
corporate,  partnership or other action, and no further consent or authorization
of such Purchaser or its Board of Directors, stockholders,  partners or members,
as the case may be, is required.  When executed and delivered by the Purchasers,
the other Transaction  Documents shall constitute valid and binding  obligations
of such Purchaser  enforceable  against such Purchaser in accordance  with their
terms,  except as such  enforceability may be limited by applicable  bankruptcy,
insolvency,    reorganization,    moratorium,   liquidation,    conservatorship,
receivership or similar laws relating to, or affecting generally the enforcement
of, creditor's  rights and remedies or by other equitable  principles of general
application.

      (c)  No  Conflict.   The  execution,   delivery  and  performance  of  the
Transaction  Documents by such Purchaser and the  consummation by such Purchaser
of the  transactions  contemplated  thereby  and  hereby do not and will not (i)
violate any provision of such Purchaser's  charter or organizational  documents,
(ii)  conflict  with,  or constitute a default (or an event which with notice or
lapse of time or both  would  become a  default)  under,  or give to others  any
rights  of  termination,   amendment,   acceleration  or  cancellation  of,  any
agreement,  mortgage,  deed of trust,  indenture,  note,  bond,  license,  lease
agreement,  instrument or  obligation  to which such  Purchaser is a party or by
which such  Purchaser's  respective  properties  or assets  are bound,  or (iii)
result in a violation of any federal,  state,  local or foreign  statute,  rule,
regulation,  order,  judgment or decree (including  federal and state securities
laws and  regulations)  applicable to such Purchaser or by which any property or
asset of such Purchaser are bound or affected,  except, in all cases, other than
violations  pursuant to clauses (i) or (iii) (with  respect to federal and state
securities laws) above, for such conflicts, defaults, terminations,  amendments,
accelerations, cancellations and violations as would not, individually or in the
aggregate,  materially and adversely affect such Purchaser's  ability to perform
its obligations under the Transaction Documents.

      (d) Acquisition  for  Investment.  Such Purchaser is purchasing the Shares
solely for its own account and not with a view to or for sale in connection with
distribution.  Such Purchaser  does not have a present  intention to sell any of
the  Shares,  nor a present  arrangement  (whether  or not  legally  binding) or
intention  to effect any  distribution  of any of the Shares,  to or through any
person or entity; provided,  however, that by making the representations herein,
such  Purchaser  does not  agree to hold the  Shares  for any  minimum  or other
specific  term and  reserves  the right to  dispose of the Shares at any time in
accordance   with  Federal  and  state   securities   laws  applicable  to  such
disposition.  Such  Purchaser  acknowledges  that it (i) has such  knowledge and
experience in financial and business  matters such that  Purchaser is capable of
evaluating the merits and risks of Purchaser's  investment in the Company,  (ii)
is able to bear the financial risks  associated with an investment in the Shares
and (iii) has been given full  access to such  records  of the  Company  and the
Subsidiaries  and to the officers of the Company and the  Subsidiaries as it has
deemed necessary or appropriate to conduct its due diligence investigation.

                                      -13-
<PAGE>

      (e) Rule 144.  Such  Purchaser  understands  that the Shares  must be held
indefinitely  unless such Shares are  registered  under the Securities Act or an
exemption from registration is available.  Such Purchaser acknowledges that such
person is familiar with Rule 144 of the rules and regulations of the Commission,
as amended,  promulgated  pursuant to the Securities Act ("Rule 144"),  and that
such Purchaser has been advised that Rule 144 permits resales only under certain
circumstances.  Such Purchaser  understands  that to the extent that Rule 144 is
not  available,  such Purchaser will be unable to sell any Shares without either
registration under the Securities Act or the existence of another exemption from
such registration requirement.

      (f) General.  Such Purchaser understands that the Shares are being offered
and  sold  in  reliance  on a  transactional  exemption  from  the  registration
requirements  of federal  and state  securities  laws and the Company is relying
upon the truth and  accuracy  of the  representations,  warranties,  agreements,
acknowledgments  and  understandings of such Purchaser set forth herein in order
to determine the  applicability  of such  exemptions and the suitability of such
Purchaser  to acquire  the Shares.  Such  Purchaser  understands  that no United
States  federal or state agency or any  government  or  governmental  agency has
passed upon or made any recommendation or endorsement of the Shares.

      (g) No General Solicitation.  Such Purchaser  acknowledges that the Shares
were not  offered  to such  Purchaser  by means of any form of general or public
solicitation or general advertising,  or publicly disseminated advertisements or
sales  literature,  including (i) any  advertisement,  article,  notice or other
communication  published  in any  newspaper,  magazine,  or  similar  media,  or
broadcast over television or radio, or (ii) any seminar or meeting to which such
Purchaser  was invited by any of the  foregoing  means of  communications.  Such
Purchaser,  in making the  decision  to  purchase  the  Shares,  has relied upon
independent  investigation  made by it and the  representations,  warranties and
agreements  set forth in the  Transaction  Documents  and has not  relied on any
information or representations made by third parties.

      (h) Accredited  Investor.  Such Purchaser is an "accredited  investor" (as
defined in Rule 501 of Regulation D), and such Purchaser has such  experience in
business and financial  matters that it is capable of evaluating  the merits and
risks of an  investment  in the Shares.  Such  Purchaser  is not  required to be
registered  as a  broker-dealer  under  Section 15 of the  Exchange Act and such
Purchaser is not a broker-dealer. Such Purchaser acknowledges that an investment
in the Shares is speculative  and involves a high degree of risk. Such Purchaser
has completed or caused to be completed the Investor Questionnaire Certification
attached  hereto as  Exhibit D  certifying  as to its  status as an  "accredited
investor"  and  understands  that the  Company  is  relying  upon the  truth and
accuracy of such  information  set forth therein to determine the suitability of
such Purchaser to acquire the Shares.

      (i) Certain Fees. The Purchasers have not employed any broker or finder or
incurred  any  liability   for  any   brokerage  or  investment   banking  fees,
commissions, finders' structuring fees, financial advisory fees or other similar
fees in connection with the Transaction Documents.

                                      -14-
<PAGE>

      (j) Independent Investment.  No Purchaser has agreed to act with any other
Purchaser  for the purpose of  acquiring,  holding,  voting or  disposing of the
Shares purchased hereunder for purposes of Section 13(d) under the Exchange Act,
and each Purchaser is acting independently with respect to its investment in the
Shares.

      (k)  Short  Sales.  Each  Purchaser  covenants  that  neither  it nor  any
affiliates  acting on its behalf or pursuant to any  understanding  with it will
execute any Short Sales (as defined below) during the period after the date that
such Purchaser  first received a term sheet from the Company or any other person
or entity  setting  forth the material  terms of the  transactions  contemplated
hereunder  until the date that the  transactions  contemplated by this Agreement
are first publicly  announced as described in Section 3.10. For purposes hereof,
"Short  Sales"  shall  include  all  "short  sales"  as  defined  in Rule 200 of
Regulation SHO under the Exchange Act.

      (l) Reverse Stock Split.  Each  Purchaser  hereby  covenants and agrees to
vote any shares of Common Stock beneficially owned by such Purchaser in favor of
the Reverse Stock Split (as defined in Section 3.15 hereof).

      (m) Subsequent  Common Stock  Financing.  Each Purchaser  acknowledges and
agrees that the Company may sell up to  $2,250,000  of shares of Common Stock on
terms  substantially  identical to the terms of this Agreement (or on terms more
favorable to the Company) to be consummated  within  forty-five (45) days of the
Closing Date (the "Subsequent Common Stock Financing").

                                   ARTICLE III

                                    COVENANTS

      The Company covenants with each Purchaser as follows,  which covenants are
for the benefit of each Purchaser and their respective permitted assignees.

      Section 3.1 Securities Compliance. The Company shall notify the Commission
in accordance with its rules and regulations,  of the transactions  contemplated
by any of the Transaction  Documents and shall take all other  necessary  action
and  proceedings  as may be required and permitted by  applicable  law, rule and
regulation, for the legal and valid issuance of the Shares to the Purchasers, or
their respective subsequent holders.

      Section 3.2 Registration  and Listing.  The Company shall cause its Common
Stock to continue to be registered under Sections 12(b) or 12(g) of the Exchange
Act, to comply in all respects with its reporting and filing  obligations  under
the Exchange Act, to comply with all  requirements  related to any  registration
statement filed pursuant to this  Agreement,  and to not take any action or file
any  document  (whether  or not  permitted  by the  Securities  Act or the rules
promulgated  thereunder)  to  terminate  or  suspend  such  registration  or  to
terminate or suspend its reporting and filing obligations under the Exchange Act
or Securities Act, except as permitted herein.  The Company will take all action

                                      -15-
<PAGE>

necessary  to  continue  the  listing or trading of its Common  Stock on the OTC
Bulletin Board or any successor market.  Subject to the terms of the Transaction
Documents,  the Company further  covenants that it will take such further action
as the Purchasers may reasonably  request,  all to the extent required from time
to time to enable the Purchasers to sell the Shares without  registration  under
the Securities Act within the limitation of the exemptions  provided by Rule 144
promulgated  under the Securities Act. Upon the request of the  Purchasers,  the
Company  shall  deliver  to the  Purchasers  a written  certification  of a duly
authorized officer as to whether it has complied with such requirements.

      Section 3.3  Inspection  Rights.  The Company shall permit,  during normal
business hours and upon reasonable request and reasonable notice, each Purchaser
or any employees,  agents or representatives  thereof, so long as such Purchaser
shall be obligated  hereunder to purchase the Shares or shall  beneficially  own
any Shares, for purposes  reasonably related to such Purchaser's  interests as a
stockholder  to examine and make  reasonable  copies of the records and books of
account  of,  and visit and  inspect  the  properties,  assets,  operations  and
business of the Company and any Subsidiary, and to discuss the affairs, finances
and  accounts  of the  Company  and any  Subsidiary  with  any of its  officers,
consultants, directors, and key employees.

      Section 3.4 Compliance with Laws. The Company shall comply, and cause each
Subsidiary to comply,  with all applicable laws, rules,  regulations and orders,
noncompliance  with which would be reasonably  likely to have a Material Adverse
Effect.

      Section 3.5 Keeping of Records  and Books of  Account.  The Company  shall
keep and cause each Subsidiary to keep adequate records and books of account, in
which  complete  entries  will be  made in  accordance  with  GAAP  consistently
applied,   reflecting  all  financial   transactions  of  the  Company  and  its
Subsidiaries.

      Section 3.6  Reporting  Requirements.  If the  Company  ceases to file its
periodic reports with the Commission,  or if the Commission  ceases making these
periodic  reports  available via the Internet  without charge,  then the Company
shall, promptly after filing with the Commission,  furnish the following to each
Purchaser so long as such Purchaser shall be obligated hereunder to purchase the
Shares or shall beneficially own Shares:

      (a) Quarterly Reports filed with the Commission on Form 10-QSB;

      (b) Annual Reports filed with the Commission on Form 10-KSB; and

      (c) Copies of all notices,  information and proxy statements in connection
with any  meetings,  that are,  in each case,  provided  to holders of shares of
Common Stock, contemporaneously with the delivery of such notices or information
to such holders of Common Stock.

      Section  3.7 Other  Agreements.  The  Company  shall  not  enter  into any
agreement  in which the terms of such  agreement  would  restrict  or impair the
right or ability of the Company or any  Subsidiary  to perform  its  obligations
under any Transaction Document.

                                      -16-
<PAGE>

      Section 3.8 Use of Proceeds.  The net proceeds from the sale of the Shares
will be used by the Company for working capital and general  corporate  purposes
except  that  $3,400,000  of the net  proceeds  shall be used to pay off certain
senior convertible promissory notes held by NIR Group as more fully set forth on
Exhibit F hereto.

      Section 3.9 Reporting Status. So long as a Purchaser beneficially owns any
of the Shares,  the Company  shall timely file all reports  required to be filed
with the  Commission  pursuant to the Exchange  Act,  and the Company  shall not
terminate  its status as an issuer  required to file reports  under the Exchange
Act even if the  Exchange  Act or the rules  and  regulations  thereunder  would
permit such termination.

      Section 3.10  Disclosure of  Transaction.  The Company shall issue a press
release  describing the material terms of the transactions  contemplated  hereby
(the "Press  Release") as soon as practicable  after the Closing but in no event
later than twenty-four hours after the Closing;  provided,  however, that if the
Closing  occurs  after 4:00 P.M.  Eastern  Time on any Trading  Day, the Company
shall issue the Press Release no later than 9:00 A.M.  Eastern Time on the first
Trading Day  following  the Closing  Date.  The Company shall also file with the
Commission a Current Report on Form 8-K (the "Form 8-K") describing the material
terms of the transactions contemplated hereby (and attaching as exhibits thereto
this Agreement, the Registration Rights Agreement, the Escrow Agreement, and the
Press  Release) as soon as  practicable  following  such  Closing Date but in no
event more than two (2) Trading Days  following  such Closing Date,  which Press
Release  and Form 8-K  shall be  subject  to prior  review  and  comment  by the
Purchasers.  "Trading Day" means any day during which the OTC Bulletin Board (or
other principal  exchange on which the Common Stock is traded) shall be open for
trading.

      Section 3.11 Disclosure of Material Information. The Company covenants and
agrees that neither it nor any other person acting on its behalf has provided or
will provide any  Purchaser or its agents or counsel with any  information  that
the Company believes constitutes material non-public  information,  unless prior
thereto such  Purchaser  shall have executed a written  agreement  regarding the
confidentiality  and  use of  such  information.  The  Company  understands  and
confirms that each Purchaser  shall be relying on the foregoing  representations
in effecting transactions in securities of the Company.

      Section  3.12 Form D. The Company  agrees to file a Form D with respect to
the  Shares as  required  by Rule 506 under  Regulation  D and to provide a copy
thereof to the Purchasers promptly after such filing.

      Section  3.13 No  Integrated  Offerings.  The  Company  shall not make any
offers or sales of any  security  (other than the Shares  being  offered or sold
hereunder)  under  circumstances  that would require  registration of the Shares
being offered or sold hereunder under the Securities Act.

      Section 3.14 Pledge of Shares.  The Company  acknowledges  and agrees that
the Shares may be pledged by a Purchaser in  connection  with a bona fide margin
agreement or other loan or financing  arrangement  that is secured by the Common
Stock. The pledge of Common Stock shall not be deemed to be a transfer,  sale or
assignment of the Common Stock hereunder, and no Purchaser effecting a pledge of

                                      -17-
<PAGE>

Common Stock shall be required to provide the Company with any notice thereof or
otherwise  make any  delivery to the Company  pursuant to this  Agreement or any
other Transaction  Document;  provided that a Purchaser and its pledgee shall be
required to comply with the  provisions of Article V hereof in order to effect a
sale, transfer or assignment of Common Stock to such pledgee. At the Purchasers'
expense,  the Company hereby agrees to execute and deliver such documentation as
a pledgee of the Common Stock may reasonably request in connection with a pledge
of the Common Stock to such pledgee by a Purchaser.

      Section 3.15 Reverse Stock Split. The Company shall effect a reverse stock
split of the Common  Stock at a ratio of 1-for-50  within  forty-five  (45) days
following the Closing Date (the "Reverse Stock Split").

      Section 3.16 Conversion of Petty Promissory Note. Within five (5) business
days of the date of the Reverse Stock Split,  Robert Petty,  the Company's Chief
Executive  Officer,  shall convert at least $600,000 of a promissory note issued
on May 18, 2005 in the aggregate  principal  amount of $1,100,000 at a price per
share equal to the Per Share Purchase Price.

      Section 3.17 Right of First Refusal for Subsequent Common Stock Financing.
The  Company  covenants  and  agrees to  promptly  notify in  writing (a "Rights
Notice") the  Purchasers of the terms and  conditions of the  Subsequent  Common
Stock Financing.  The Rights Notice shall describe,  in reasonable  detail,  the
proposed  Subsequent  Common Stock  Financing,  the proposed closing date of the
Subsequent Financing, which shall not be sooner than three (3) Trading Days from
the date the Rights Notice is given, including,  without limitation,  all of the
material terms and conditions thereof and proposed  definitive  documentation to
be entered into in  connection  therewith.  The Rights Notice shall provide each
Purchaser  an option  (the  "Rights  Option")  during the two (2)  Trading  Days
following  delivery of the Rights Notice (the "Option Period") to purchase up to
fifty percent (50%) of its "pro rata" portion of the securities being offered in
the  Subsequent  Common  Stock  Financing  on the same terms and  conditions  as
contemplated  by the  Subsequent  Common  Stock  Financing  (the "First  Refusal
Rights").  If any Purchaser  elects not to participate in the Subsequent  Common
Stock  Financing,  the other  Purchasers may  participate on a pro-rata basis so
long as such  participation in the aggregate does not exceed fifty percent (50%)
of the total  Purchase  Price  hereunder.  For  purposes  of this  Section,  all
references to "pro rata" means, for any Purchaser electing to participate in the
Subsequent Common Stock Financing,  the percentage  obtained by dividing (x) the
total  number of Shares  purchased  by such  Purchaser at the Closing by (y) the
total number of Shares purchased by all of the  participating  Purchasers at the
Closing. Delivery of any Rights Notice constitutes a representation and warranty
by  the  Company  that  there  are  no  other  material  terms  and  conditions,
arrangements,  agreements or otherwise  except for those disclosed in the Rights
Notice,  to provide  additional  compensation to any party  participating in any
proposed  Subsequent  Financing,  including,  but  not  limited  to,  additional
compensation  based on  changes  in the  Purchase  Price or any type of reset or
adjustment of a purchase or conversion price or to issue  additional  securities
at any time after the closing date of the Subsequent Common Stock Financing.  If
the Company does not receive notice of exercise of the Rights Option from any of
the  Purchasers  within the Option  Period,  the Company shall have the right to
close the Subsequent Common Stock Financing on the scheduled closing date with a
third party (and, if  applicable,  with such  Purchasers as shall have exercised

                                      -18-
<PAGE>

their Rights Option);  provided that all of the material terms and conditions of
the  closing  are the same as those  provided  to the  Purchasers  in the Rights
Notice.  If the closing of the proposed  Subsequent  Common stock Financing does
not occur within ten (10) trading days from the date the Rights Notice is given,
any closing of the  contemplated  Subsequent  Common  Stock  Financing  shall be
subject to all of the provisions of this Section, including, without limitation,
the delivery of a new Rights Notice.

                                   ARTICLE IV

                                   CONDITIONS

      Section 4.1 Conditions Precedent to the Obligation of the Company to Close
and to Sell the Shares.  The  obligation  hereunder  of the Company to close and
issue and sell the Shares to the  Purchasers  at the Closing  Date is subject to
the satisfaction or waiver, at or before the Closing of the conditions set forth
below.  These conditions are for the Company's sole benefit and may be waived by
the Company at any time in its sole discretion.

      (a)  Accuracy  of the  Purchasers'  Representations  and  Warranties.  The
representations  and warranties of each  Purchaser  shall be true and correct in
all  material  respects as of the date when made and as of the  Closing  Date as
though made at that time,  except for  representations  and warranties  that are
expressly made as of a particular  date,  which shall be true and correct in all
material respects as of such date.

      (b)  Performance by the  Purchasers.  Each Purchaser shall have performed,
satisfied and complied in all material  respects with all covenants,  agreements
and conditions required by this Agreement to be performed, satisfied or complied
with by such Purchaser at or prior to the Closing Date.

      (c) No Injunction. No statute, rule, regulation,  executive order, decree,
ruling or injunction shall have been enacted,  entered,  promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits
the consummation of any of the transactions contemplated by this Agreement.

      (d) Delivery of Purchase Price. The Purchasers shall have delivered to the
Company the Purchase Price for the Shares to be purchased by each Purchaser.

      (e) Delivery of Transaction Documents.  The Transaction Documents to which
the  Purchasers  are a party shall have been duly executed by the Purchasers and
delivered to the Company.

      (f) Escrow  Agreement.  The Escrow  Agreement shall have been executed and
delivered by the Purchasers and the escrow agent to the Company.

      Section 4.2  Conditions  Precedent to the  Obligation of the Purchasers to
Close and to Purchase the Shares. The obligation  hereunder of each Purchaser to
purchase  the  Shares  and  consummate  the  transactions  contemplated  by this
Agreement  is subject to the  satisfaction  or waiver,  at or before the Closing
Date, of each of the  conditions set forth below.  These  conditions are for the
Purchaser's  sole benefit and may be waived by the  Purchaser at any time in its
sole discretion.

                                      -19-
<PAGE>

      (a) Accuracy of the Company's Representations and Warranties.  Each of the
representations  and  warranties  of the  Company  in  this  Agreement  and  the
Registration  Rights  Agreement  shall be true and correct in all respects as of
the Closing Date, except for  representations  and warranties that speak as of a
particular  date,  which  shall be true and  correct in all  respects as of such
date.

      (b)  Performance  by  the  Company.  The  Company  shall  have  performed,
satisfied and complied in all material  respects with all covenants,  agreements
and conditions required by this Agreement to be performed, satisfied or complied
with by the Company at or prior to the Closing Date.

      (c) No  Suspension,  Etc.  Trading in the Common Stock shall not have been
suspended by the Commission or the OTC Bulletin Board (except for any suspension
of trading of limited duration agreed to by the Company,  which suspension shall
be terminated prior to the Closing), and, at any time prior to the Closing Date,
trading in  securities  generally  as reported by  Bloomberg  Financial  Markets
("Bloomberg")  shall not have been suspended or limited, or minimum prices shall
not have been  established on securities whose trades are reported by Bloomberg,
or on the New York  Stock  Exchange,  nor shall a banking  moratorium  have been
declared either by the United States or New York State authorities.

      (d) No Injunction. No statute, rule, regulation,  executive order, decree,
ruling or injunction shall have been enacted,  entered,  promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits
the consummation of any of the transactions contemplated by this Agreement.

      (e) No Proceedings or Litigation. No action, suit or proceeding before any
arbitrator  or any  governmental  authority  shall have been  commenced,  and no
investigation by any governmental authority shall have been threatened,  against
the Company or any Subsidiary,  or any of the officers,  directors or affiliates
of the  Company or any  Subsidiary  seeking to  restrain,  prevent or change the
transactions  contemplated by this  Agreement,  or seeking damages in connection
with such transactions.

      (f) Opinion of Counsel.  The Purchasers  shall have received an opinion of
counsel to the Company,  dated the date of such  Closing,  substantially  in the
form of  Exhibit E hereto,  with such  exceptions  and  limitations  as shall be
reasonably acceptable to counsel to the Purchasers.

      (g) Shares.  At or prior to the Closing,  the Company shall have delivered
to the Purchasers certificates representing the Shares (in such denominations as
each Purchaser may request) being acquired by the Purchasers at the Closing.

      (h)  Secretary's  Certificate.  The Company  shall have  delivered  to the
Purchasers a  secretary's  certificate,  dated as of the Closing Date, as to (i)
the  resolutions  adopted by the Board of Directors  approving the  transactions
contemplated  hereby, (ii) the Certificate,  (iii) the Bylaws, each as in effect
at the Closing,  and (iv) the  authority  and  incumbency of the officers of the
Company executing the Transaction  Documents and any other documents required to
be executed or delivered in connection therewith.

                                      -20-
<PAGE>

      (i) Officer's  Certificate.  On the Closing  Date,  the Company shall have
delivered to the  Purchasers  a  certificate  signed by an executive  officer on
behalf of the Company, dated as of such Closing Date, confirming the accuracy of
the Company's  representations,  warranties and its compliance with covenants as
of the Closing  Date and  confirming  the  compliance  by the  Company  with the
conditions  precedent set forth in paragraphs  (b)-(e) of this Section 4.2 as of
the Closing Date (provided  that,  with respect to the matters in paragraphs (d)
and (e) of this Section 4.2, such  confirmation  shall be based on the knowledge
of the executive officer after due inquiry).

      (j)  Registration  Rights  Agreement.  As of the Closing Date, the Company
shall have duly executed and delivered the Registration  Rights Agreement in the
form of Exhibit C attached hereto.

      (k)  Material  Adverse  Effect.  No  Material  Adverse  Effect  shall have
occurred at or before the Closing Date.

      (l) Escrow  Agreement.  As of the Closing Date, the Company and the escrow
agent shall have executed and delivered the Escrow Agreement to the Purchasers.

      (m) NIR Group.  As of the Closing  Date,  the Company  shall have received
copies of signed written  consents and waivers of the NIR Group, a form of which
is attached hereto as Exhibit F, with respect to, among other things, consenting
to the  consummation  of the  transactions  contemplated  by this  Agreement and
waiving its rights to have shares of Common Stock reserved for issuance upon the
conversion of certain convertible promissory notes held by the NIR Group.

                                    ARTICLE V

                               CERTIFICATE LEGEND

      Section 5.1 Legend.  Each  certificate  representing  the Shares  shall be
stamped or otherwise imprinted with a legend substantially in the following form
(in addition to any legend required by applicable state securities or "blue sky"
laws):

       THE   SECURITIES   REPRESENTED   BY  THIS   CERTIFICATE   (THE
       "SECURITIES")  HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES
       ACT OF 1933,  AS AMENDED (THE  "SECURITIES  ACT") OR ANY STATE
       SECURITIES LAWS AND MAY NOT BE SOLD,  TRANSFERRED OR OTHERWISE
       DISPOSED OF UNLESS  REGISTERED  UNDER THE  SECURITIES  ACT AND
       UNDER  APPLICABLE  STATE  SECURITIES  LAWS OR ROO GROUP,  INC.
       SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION OF
       SUCH  SECURITIES  UNDER  THE  SECURITIES  ACT  AND  UNDER  THE
       PROVISIONS  OF  APPLICABLE   STATE   SECURITIES  LAWS  IS  NOT
       REQUIRED.

                                      -21-
<PAGE>

      The Company agrees to reissue certificates representing any of the Shares,
without the legend set forth above if at such time, prior to making any transfer
of any such Shares, such holder thereof shall give written notice to the Company
describing  the manner and terms of such transfer and removal as the Company may
reasonably  request.  Such  proposed  transfer  and removal will not be effected
until: (a) either (i) the Company has received an opinion of counsel  reasonably
satisfactory to the Company,  to the effect that the  registration of the Shares
under the  Securities  Act is not  required  in  connection  with such  proposed
transfer,  (ii) a registration  statement under the Securities Act covering such
proposed  disposition  has been filed by the Company with the Commission and has
become and remains  effective  under the  Securities  Act, (iii) the Company has
received  other  evidence  reasonably  satisfactory  to the  Company  that  such
registration  and  qualification  under the Securities Act and state  securities
laws are not required,  or (iv) the holder  provides the Company with reasonable
assurances  that  such  security  can be sold  pursuant  to Rule 144  under  the
Securities  Act;  and (b)  either (i) the  Company  has  received  an opinion of
counsel reasonably  satisfactory to the Company, to the effect that registration
or  qualification  under the  securities  or "blue sky" laws of any state is not
required in connection with such proposed  disposition,  or (ii) compliance with
applicable  state  securities  or "blue sky" laws has been  effected  or a valid
exemption  exists with  respect  thereto.  The Company  will respond to any such
notice from a holder within five (5) business  days. In the case of any proposed
transfer  under this Section 5.1,  the Company  will use  reasonable  efforts to
comply with any such applicable  state  securities or "blue sky" laws, but shall
in no event be required,  (x) to qualify to do business in any state where it is
not then qualified, or (y) to take any action that would subject it to tax or to
the general  service of process in any state where it is not then  subject.  The
restrictions on transfer  contained in this Section 5.1 shall be in addition to,
and not by way of limitation of, any other restrictions on transfer contained in
any other section of this  Agreement.  Whenever a certificate  representing  the
Shares is  required  to be issued to a  Purchaser  without a legend,  in lieu of
delivering physical certificates representing the Shares, provided the Company's
transfer agent is  participating  in the Depository  Trust Company  ("DTC") Fast
Automated Securities Transfer program, the Company shall use its reasonable best
efforts to cause its transfer agent to  electronically  transmit the Shares to a
Purchaser by  crediting  the account of such  Purchaser's  Prime Broker with DTC
through its Deposit  Withdrawal Agent Commission  ("DWAC") system (to the extent
not inconsistent with any provisions of this Agreement).

                                   ARTICLE VI

                                 INDEMNIFICATION

      Section 6.1 General  Indemnity.  The Company  agrees to indemnify and hold
harmless the Purchasers (and their respective directors,  officers,  affiliates,
agents,   successors   and  assigns)  from  and  against  any  and  all  losses,
liabilities,  deficiencies,  costs,  damages and  expenses  (including,  without
limitation,  reasonable attorneys' fees, charges and disbursements)  incurred by
the Purchasers and their directors, officers, affiliates, agents, successors and
assigns  as a result of any  inaccuracy  in or  breach  of the  representations,
warranties or covenants made by the Company herein. Each Purchaser severally but
not jointly agrees to indemnify and hold harmless the Company and its directors,
officers,  affiliates,  agents,  successors and assigns from and against any and
all losses, liabilities,  deficiencies,  costs, damages and expenses (including,

                                      -22-
<PAGE>

without  limitation,  reasonable  attorneys'  fees,  charges and  disbursements)
incurred  by the  Company  and  its  directors,  officers,  affiliates,  agents,
successors  and assigns as a direct result of any inaccuracy in or breach of the
representations,  warranties or covenants  made by such  Purchaser  herein.  The
maximum aggregate  liability of each Purchaser  pursuant to its  indemnification
obligations  under this  Article VI shall not exceed the portion of the Purchase
Price paid by such Purchaser hereunder.

      Section   6.2   Indemnification   Procedure.   Any   party   entitled   to
indemnification under this Article VI (an "indemnified party") will give written
notice  to the  indemnifying  party of any  matters  giving  rise to a claim for
indemnification;  provided,  that the failure of any  indemnified  party to give
notice as  provided  herein  shall not  relieve  the  indemnifying  party of its
obligations  under this  Article VI except to the extent  that the  indemnifying
party is actually  prejudiced  by such failure to give notice.  In case any such
action,  proceeding or claim is brought against an indemnified  party in respect
of which  indemnification  is sought hereunder,  the indemnifying party shall be
entitled  to  participate  in and,  unless  in the  reasonable  judgment  of the
indemnifying  party a conflict of interest between it and the indemnified  party
exists  with  respect  to such  action,  proceeding  or claim (in which case the
indemnifying  party shall be responsible for the reasonable fees and expenses of
one separate counsel for the indemnified parties), to assume the defense thereof
with counsel reasonably satisfactory to the indemnified party. In the event that
the  indemnifying  party advises an  indemnified  party that it will not contest
such a claim for indemnification hereunder, or fails, within thirty (30) days of
receipt of any indemnification  notice to notify, in writing, such person of its
election to defend,  settle or  compromise,  at its sole cost and  expense,  any
action,  proceeding or claim (or  discontinues  its defense at any time after it
commences such defense),  then the indemnified party may, at its option, defend,
settle or otherwise compromise or pay such action or claim. In any event, unless
and until the indemnifying  party elects in writing to assume and does so assume
the defense of any such claim,  proceeding or action,  the  indemnified  party's
costs and expenses  arising out of the defense,  settlement or compromise of any
such action,  claim or  proceeding  shall be losses  subject to  indemnification
hereunder.  The indemnified  party shall  cooperate fully with the  indemnifying
party in connection  with any negotiation or defense of any such action or claim
by the  indemnifying  party  and shall  furnish  to the  indemnifying  party all
information  reasonably available to the indemnified party which relates to such
action or claim. The indemnifying  party shall keep the indemnified  party fully
apprised  at  all  times  as to the  status  of the  defense  or any  settlement
negotiations  with respect thereto.  If the indemnifying  party elects to defend
any such  action or claim,  then the  indemnified  party  shall be  entitled  to
participate  in such  defense  with  counsel  of its choice at its sole cost and
expense.  The  indemnifying  party shall not be liable for any settlement of any
action,  claim or proceeding  effected  without its prior written  consent which
consent shall not be  unreasonably  withheld.  Notwithstanding  anything in this
Article VI to the  contrary,  the  indemnifying  party  shall not,  without  the
indemnified  party's prior written  consent,  settle or compromise  any claim or
consent to entry of any  judgment in respect  thereof  which  imposes any future
obligation  on  the  indemnified  party  or  which  does  not  include,   as  an
unconditional  term thereof,  the giving by the claimant or the plaintiff to the
indemnified  party of a release from all liability in respect of such claim. The
indemnification  required by this Article VI shall be made by periodic  payments
of the amount thereof during the course of investigation or defense, as and when
bills are received or expense, loss, damage or liability is incurred, so long as
the  indemnified  party  irrevocably  agrees  to  refund  such  moneys  if it is
ultimately  determined by a court of competent  jurisdiction that such party was
not entitled to indemnification. The indemnity agreements contained herein shall
be in addition to (a) any cause of action or similar  rights of the  indemnified
party against the  indemnifying  party or others,  and (b) any  liabilities  the
indemnifying party may be subject to pursuant to the law.

                                      -23-
<PAGE>

                                  ARTICLE VII

                                  MISCELLANEOUS

      Section 7.1 Fees and Expenses.  Each party shall pay the fees and expenses
of its advisors,  counsel,  accountants and other experts, if any, and all other
expenses,  incurred  by such party  incident  to the  negotiation,  preparation,
execution, delivery and performance of this Agreement, provided that the Company
shall pay all actual attorneys' fees and expenses  (including  disbursements and
out-of-pocket  expenses) up to a maximum of $22,500 (which amount includes up to
$7,500  pursuant  to Section 4 of the  Registration  Rights  Agreement)  for one
counsel to the Purchasers  incurred by the Purchasers in connection with (i) the
preparation, negotiation, execution and delivery of this Agreement and the other
Transaction  Documents  and  the  transactions  contemplated  thereunder,  which
payment  shall  be  made  at  Closing,   (ii)  the  filing  and  declaration  of
effectiveness by the Commission of the Registration Statement (as defined in the
Registration  Rights  Agreement)  and (iii)  any  amendments,  modifications  or
waivers  of  this  Agreement  or any  of the  other  Transaction  Documents.  In
addition, the Company shall pay all reasonable fees and expenses incurred by the
Purchasers in connection  with the  enforcement  of this Agreement or any of the
other  Transaction  Documents,  including,  without  limitation,  all reasonable
attorneys' fees and expenses.

      Section 7.2 Specific Performance; Consent to Jurisdiction; Venue.

      (a) The Company and the Purchasers  acknowledge and agree that irreparable
damage would occur in the event that any of the  provisions of this Agreement or
the other  Transaction  Documents  are not  performed in  accordance  with their
specific  terms or are otherwise  breached.  It is  accordingly  agreed that the
parties  shall be entitled to an injunction  or  injunctions  to prevent or cure
breaches of the provisions of this Agreement or the other Transaction  Documents
and to enforce  specifically  the terms and provisions  hereof or thereof,  this
being in  addition  to any other  remedy to which any of them may be entitled by
law or equity.

      (b) The  parties  agree  that  venue for any  dispute  arising  under this
Agreement  will lie  exclusively  in the state or federal  courts located in New
York  County,  New York,  and the parties  irrevocably  waive any right to raise
forum non  conveniens  or any  other  argument  that New York is not the  proper
venue. The parties irrevocably consent to personal jurisdiction in the state and
federal courts of the state of New York. The Company and each Purchaser  consent
to process being served in any such suit, action or proceeding by mailing a copy
thereof  to such party at the  address  in effect  for  notices to it under this
Agreement  and agrees that such service  shall  constitute  good and  sufficient
service of process and notice thereof.  Nothing in this Section 7.2 shall affect
or limit any right to serve  process in any other  manner  permitted by law. The
Company and the Purchasers  hereby agree that the prevailing  party in any suit,
action or proceeding arising out of or relating to the Shares, this Agreement or
the  Registration  Rights  Agreement,  shall be  entitled to  reimbursement  for
reasonable legal fees from the non-prevailing party.

                                      -24-
<PAGE>

      Section  7.3  Entire   Agreement;   Amendment.   This  Agreement  and  the
Transaction  Documents  contain the entire  understanding  and  agreement of the
parties with respect to the matters  covered hereby and,  except as specifically
set forth herein or in the other Transaction Documents,  neither the Company nor
any Purchaser make any  representation,  warranty,  covenant or undertaking with
respect  to such  matters,  and they  supersede  all  prior  understandings  and
agreements with respect to said subject matter,  all of which are merged herein.
Following the Closing,  no provision of this  Agreement may be waived or amended
other than by a written  instrument  signed by the  Company  and the  Purchasers
holding  at least a  majority  of all Shares  then held by the  Purchasers.  Any
amendment  or waiver  effected  in  accordance  with this  Section  7.3 shall be
binding upon each Purchaser (and their permitted assigns) and the Company.

      Section  7.4  Notices.  Any  notice,  demand,  request,  waiver  or  other
communication  required or permitted to be given  hereunder  shall be in writing
and shall be  effective  (a) upon hand  delivery by telecopy or facsimile at the
address or number designated below (if delivered on a business day during normal
business  hours where such notice is to be received),  or the first business day
following such delivery (if delivered other than on a business day during normal
business  hours  where  such  notice  is to be  received)  or (b) on the  second
business day following  the date of mailing by express  courier  service,  fully
prepaid,  addressed to such  address,  or upon actual  receipt of such  mailing,
whichever shall first occur. The addresses for such communications shall be:

If to the Company:     Robert Petty
                       c/o ROO Group, Inc.
                       228 East 45th Street, 8th Floor
                       New York, NY 10017
                       Tel.  No.: (646)  352-0260
                       Fax No.:   (646)  619-4074

with copies to (which shall not constitute notice):

                       Sichenzia Ross Friedman Ference LLP
                       1065 Avenue of the Americas
                       New York, NY 10018
                       Attention: Richard A. Friedman, Esq.
                       Tel No.: (212) 930-9700
                       Fax No.: (212) 930-9725

If to any Purchaser:   At the address of such Purchaser  set forth  on Exhibit A
                       to this Agreement.

                                      -25-
<PAGE>

with copies to:        Kramer Levin Naftalis & Frankel LLP
                       1177 Avenue of the Americas
                       New York, New York 10036
                       Attention: Christopher S. Auguste
                       Tel No.:  (212) 715-9100
                       Fax No.:  (212) 715-8000

      Any party  hereto may from time to time  change its address for notices by
giving written notice of such changed address to the other parties hereto.

      Section 7.5 Waivers. No waiver by any party of any default with respect to
any provision,  condition or requirement of this Agreement shall be deemed to be
a continuing waiver in the future or a waiver of any other provision,  condition
or requirement  hereof, nor shall any delay or omission of any party to exercise
any right hereunder in any manner impair the exercise of any such right accruing
to it thereafter.

      Section 7.6 Headings. The article, section and subsection headings in this
Agreement  are for  convenience  only and  shall not  constitute  a part of this
Agreement  for any other  purpose and shall not be deemed to limit or affect any
of the provisions hereof.

      Section 7.7 Successors and Assigns.  This Agreement  shall be binding upon
and inure to the benefit of the parties and their successors and assigns.  After
the Closing, the assignment by a party to this Agreement of any rights hereunder
shall not affect the obligations of such party under this Agreement.  Subject to
Section  5.1 hereof  and  subject to  Section  7(h) of the  Registration  Rights
Agreement,  the  Purchasers  may assign  the  Shares  and its rights  under this
Agreement  and the other  Transaction  Documents and any other rights hereto and
thereto without the consent of the Company.

      Section 7.8 No Third Party  Beneficiaries.  This Agreement is intended for
the benefit of the parties hereto and their respective  permitted successors and
assigns and is not for the benefit of, nor may any provision  hereof be enforced
by, any other person.

      Section  7.9  Governing  Law.  This  Agreement  shall be  governed  by and
construed in accordance with the internal laws of the State of New York, without
giving  effect to any of the conflicts of law  principles  which would result in
the application of the substantive law of another  jurisdiction.  This Agreement
shall not be  interpreted or construed  with any  presumption  against the party
causing this Agreement to be drafted.

      Section 7.10 Survival.  The  representations and warranties of the Company
and the  Purchasers  shall  survive the  execution  and delivery  hereof and the
Closing until the third  anniversary  of the Closing Date except the  agreements
and  covenants  set forth in Articles  I, III,  V, VI and VII of this  Agreement
shall survive the execution and delivery hereof and the Closing.

      Section 7.11 Counterparts. This Agreement may be executed in any number of
counterparts,  all of which taken  together  shall  constitute  one and the same
instrument and shall become effective when counterparts have been signed by each
party and delivered to the other parties  hereto,  it being  understood that all
parties need not sign the same counterpart.

                                      -26-
<PAGE>

      Section 7.12 Publicity.  Except as discussed in the Registration Statement
(as defined in the Registration  Rights  Agreement),  the Company agrees that it
will not disclose, and will not include in any public announcement, the names of
the Purchasers without the consent of the Purchasers, which consent shall not be
unreasonably  withheld  or  delayed,  or unless  and until  such  disclosure  is
required by law, rule or applicable  regulation,  and then only to the extent of
such requirement.

      Section 7.13 Severability.  The provisions of this Agreement are severable
and, in the event that any court of competent  jurisdiction shall determine that
any one or more of the  provisions or part of the  provisions  contained in this
Agreement shall, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other  provision or part of a provision of this Agreement and this Agreement
shall be reformed and  construed as if such invalid or illegal or  unenforceable
provision,  or part of such provision,  had never been contained herein, so that
such  provisions  would be valid,  legal and  enforceable  to the maximum extent
possible.

      Section  7.14  Further  Assurances.  From  and  after  the  date  of  this
Agreement,  upon the request of the  Purchasers or the Company,  the Company and
each Purchaser shall execute and deliver such  instruments,  documents and other
writings as may be  reasonably  necessary  or desirable to confirm and carry out
and to  effectuate  fully the  intent and  purposes  of this  Agreement  and the
Registration Rights Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -27-
<PAGE>

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

                                              ROO GROUP, INC.

                                              By:_______________________________
                                                 Name:  Robert Petty
                                                 Title: Chief Executive Officer

                                              PURCHASER:

                                              By:_______________________________
                                                 Name:
                                                 Title:

                                      -28-
<PAGE>

                                   EXHIBIT A
                               LIST OF PURCHASERS

NAMES AND ADDRESSES                           NUMBER OF SHARES
OF PURCHASERS                                 PURCHASED
-------------------                           ----------------

                                      -i-

<PAGE>

                                    EXHIBIT B
                                ESCROW AGREEMENT

                                       -i-

<PAGE>

                                    EXHIBIT C
                      FORM OF REGISTRATION RIGHTS AGREEMENT

                                       -i-
<PAGE>

                                    EXHIBIT D
                      INVESTOR QUESTIONNAIRE CERTIFICATION

                                 ROO GROUP, INC.
                             INVESTOR QUESTIONNAIRE
                (ALL INFORMATION WILL BE TREATED CONFIDENTIALLY)

To:   ROO Group, Inc.

This  Investor  Questionnaire   ("Questionnaire")  must  be  completed  by  each
potential  investor  in  connection  with the  offer  and sale of the  shares of
restricted common stock of ROO Group, Inc. (the "Shares").  The Shares are being
offered and sold by ROO Group, Inc. (the "Company")  without  registration under
the Securities Act of 1933, as amended (the "Act"),  and the securities  laws of
certain states,  in reliance on the exemptions  contained in Section 4(2) of the
Act and on  Regulation  D  promulgated  thereunder  and in  reliance  on similar
exemptions  under  applicable  state laws.  The Company  must  determine  that a
potential  investor meets certain  suitability  requirements  before offering or
selling Shares to such investor.  The purpose of this Questionnaire is to assure
the  Company  that  each   investor   will  meet  the   applicable   suitability
requirements.  The  information  supplied  by you  will be  used in  determining
whether  you  meet  such  criteria,  and  reliance  upon  the  private  offering
exemptions  from  registration  is  based  in  part  on the  information  herein
supplied.

This  Questionnaire does not constitute an offer to sell or a solicitation of an
offer to buy any  security.  Your  answers will be kept  strictly  confidential.
However, by signing this  Questionnaire,  you will be authorizing the Company to
provide a completed  copy of this  Questionnaire  to such parties as the Company
deems  appropriate in order to ensure that the offer and sale of the Shares will
not result in a  violation  of the Act or the  securities  laws of any state and
that you otherwise satisfy the suitability standards applicable to purchasers of
the Shares.  All potential  investors must answer all  applicable  questions and
complete, date and sign this Questionnaire.  Please print or type your responses
and attach  additional  sheets of paper if necessary to complete your answers to
any item.

A.    BACKGROUND INFORMATION

Name:___________________________________________________________________________

Address of Principal Residence (or Principal Place of Business if investor is an
entity):

________________________________________________________________________________
                               (Number and Street)

________________________________________________________________________________
(City)                           (State)                              (Zip Code)

Telephone Number:_____________________________

If an individual:
Age:__________  Citizenship:____________

If a corporation, partnership, limited liability company, trust or other entity:
Type of entity:_________________________________________________________________
State of formation:______________________   Date of formation:__________________

Social Security or Taxpayer Identification No.__________________________________

B.    STATUS AS ACCREDITED INVESTOR

The  undersigned  is an  "accredited  investor"  as  such  term  is  defined  in
Regulation  D under the Act, and at the time of the offer and sale of the Shares
the  undersigned  falls  and  will  fall  within  one or more  of the  following
categories (Please initial one or more, as applicable): (1)

----------
(1)   As used in this  Questionnaire,  the term "net worth"  means the excess of
      total  assets  over  total  liabilities.  In  computing  net worth for the
      purpose of subsection (4), the principal residence of the investor must be
      valued at cost,  including cost of improvements,  or at recently appraised

                                       -i-
<PAGE>

___   (1) a BANK as defined in Section 3(a)(2) of the Act, or a savings and loan
association  or other  institution  as defined in Section  3(a)(5)(A) of the Act
whether  acting in its  individual  or  fiduciary  capacity;  a BROKER OR DEALER
registered  pursuant to Section 15 of the  Securities  Exchange Act of 1934;  an
INSURANCE COMPANY as defined in Section 2(13) of the Act; an INVESTMENT  COMPANY
registered  under the Investment  Company Act of 1940 or a BUSINESS  DEVELOPMENT
COMPANY as defined in Section 2(a)(48) of that Act; a SMALL BUSINESS  INVESTMENT
COMPANY licensed by the U.S. Small Business  Administration under Section 301(c)
or (d) of the Small  Business  Investment  Act of 1958; a PLAN  established  and
maintained  by  a  state,   its  political   subdivisions,   or  any  agency  or
instrumentality of a state or its political  subdivisions for the benefit of its
employees,  if such plan has total assets in excess of  $5,000,000;  an EMPLOYEE
BENEFIT PLAN within the meaning of the Employee  Retirement  Income Security Act
of 1974, if the investment  decision is made by a plan fiduciary,  as defined in
Section 3(21) of such Act, which is either a bank, savings and loan association,
insurance company, or registered  investment adviser, or if the employee benefit
plan has total assets in excess of $5,000,000 or, if a self-directed  plan, with
the investment decisions made solely by persons that are accredited investors;

____  (2)  a  PRIVATE  BUSINESS   DEVELOPMENT  COMPANY  as  defined  in  Section
202(a)(22) of the Investment Advisers Act of 1940;

____ (3) an ORGANIZATION  DESCRIBED IN SECTION 501(C)(3) of the Internal Revenue
Code of 1986, as amended, CORPORATION,  Massachusetts or similar BUSINESS TRUST,
or  PARTNERSHIP,  not formed for the specific  purpose of  acquiring  the Shares
offered, with total assets in excess of $5,000,000;

____ (4) a NATURAL PERSON whose  individual  net worth,  or joint net worth with
that  person's  spouse,  at the time of such  person's  purchase  of the  Shares
exceeds $1,000,000;

____ (5) a NATURAL PERSON who had an individual  income in excess of $200,000 in
each of the two most recent years or joint income with that  person's  spouse in
excess of $300,000 in each of those years and has a  reasonable  expectation  of
reaching the same income level in the current year;

____ (6) a TRUST, with total assets in excess of $5,000,000,  not formed for the
specific purpose of acquiring the Shares offered,  whose purchase is directed by
a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D; and

____  (7) an entity in which all of the equity owners are  accredited  investors
(as defined above).

IN WITNESS WHEREOF,  the undersigned has executed this  Questionnaire  this ____
day of  __________,  200_,  and  declares  under  oath that it is  truthful  and
correct.

                                              __________________________________
                                              Print Name

                                              By:_______________________________

                                              Signature

                                              Title:____________________________
                                                    (required  for any purchaser
                                                     that is a  corporation,
                                                     partnership,  limited
                                                     liability  company,  trust
                                                     or other entity)

--------------------------------------------------------------------------------
value by an institutional lender making a secured loan, net of encumbrances.  In
determining  income,  the investor  should add to the investor's  adjusted gross
income any amounts attributable to tax exempt income received, losses claimed as
a limited partner in any limited  partnership,  contributions to an IRA or KEOGH
retirement plan, alimony payments, and any amount by which income from long-term
capital gains has been reduced in arriving at adjusted gross income.

                                      -ii-

<PAGE>

                                    EXHIBIT E
                                 FORM OF OPINION

      1. The Company is a corporation duly incorporated, validly existing and in
good  standing  under the laws of the State of  Delaware  and has the  requisite
corporate  power to own,  lease and operate its  properties  and assets,  and to
carry on its business as presently conducted. The Company is duly qualified as a
foreign corporation to do business and is in good standing in every jurisdiction
in which the failure to so qualify would have a Material Adverse Effect.

      2.The  Company has the  requisite  corporate  power and authority to enter
into and perform its obligations  under the  Transaction  Documents and to issue
the Shares.  The execution,  delivery and performance of each of the Transaction
Documents  by  the  Company  and  the  consummation  by it of  the  transactions
contemplated  thereby  have been duly and validly  authorized  by all  necessary
corporate  action and no further consent or  authorization  of the Company,  its
Board of Directors or its  stockholders  is  required.  Each of the  Transaction
Documents  have been duly  executed and  delivered  and each of the  Transaction
Documents  constitutes  a legal,  valid and  binding  obligation  of the Company
enforceable  against the Company in accordance  with its respective  terms.  The
Shares  are not  subject  to any  preemptive  rights  under the  Certificate  of
Incorporation or the Bylaws.

      3. The Shares have been duly  authorized  and,  the Shares when  delivered
against payment in full as provided in the Purchase  Agreement,  will be validly
issued, fully paid and nonassessable.

      4. The execution,  delivery and  performance  of and  compliance  with the
terms of the  Transaction  Documents  and the  issuance of the Shares do not (a)
violate  any  provision  of the  Certificate  of  Incorporation  or Bylaws,  (b)
conflict  with,  or constitute a default (or an event which with notice or lapse
of time or both would become a default)  under,  or give to others any rights of
termination, amendment, acceleration or cancellation of, any material agreement,
mortgage,  deed of trust,  indenture,  note,  bond,  license,  lease  agreement,
instrument  or  obligation to which the Company is a party and which is known to
us, (c) create or impose a lien,  charge or  encumbrance  on any property of the
Company under any agreement or any  commitment  known to us to which the Company
is a party or by which the  Company  is bound or by which any of its  respective
properties  or assets are bound,  or (d) result in a violation  of any  Federal,
state, local or foreign statute, rule, regulation,  order, judgment,  injunction
or  decree  (including  Federal  and  state  securities  laws  and  regulations)
applicable  to the  Company or by which any  property or asset of the Company is
bound or  affected,  except,  in all cases  other than  violations  pursuant  to
clauses  (a)  and  (d)  above,  for  such  conflicts,   default,   terminations,
amendments,   acceleration,   cancellations   and   violations   as  would  not,
individually or in the aggregate, have a Material Adverse Effect.

      5. No consent, approval or authorization of or designation, declaration or
filing with any  governmental  authority  on the part of the Company is required
under  Federal,  state or local law, rule or  regulation in connection  with the
valid execution,  delivery and performance of the Transaction Documents,  or the
offer,  sale or issuance of the Shares  other than filings as may be required by
applicable Federal and state securities laws.

                                      -i-
<PAGE>

      6. To our knowledge,  there is no action,  suit,  claim,  investigation or
proceeding  pending or  threatened  against  the  Company  which  questions  the
validity of the Agreement or the transactions contemplated thereby or any action
taken  or to be  taken  pursuant  thereto.  There  is no  action,  suit,  claim,
investigation or proceeding pending, or to our knowledge, threatened, against or
involving the Company or any of its properties or assets and which, if adversely
determined,  is reasonably likely to result in a Material Adverse Effect.  There
are no  outstanding  orders,  judgments,  injunctions,  awards or decrees of any
court,  arbitrator or governmental or regulatory body against the Company or any
officers or directors of the Company in their capacities as such.

      7.  The  offer,  issuance  and  sale of the  Shares  are  exempt  from the
registration requirements of the Securities Act of 1933, as amended.

      8. The Company is not,  and as a result of and  immediately  upon  Closing
will not be, an "investment company" or a company "controlled" by an "investment
company," within the meaning of the Investment Company Act of 1940, as amended.

                                      -ii-

<PAGE>

                                    EXHIBIT F
                         FORM OF NIR CONSENT AND WAIVER

                           OMNIBUS CONSENT AND WAIVER

      This Omnibus  Consent and Waiver (this "CONSENT AND WAIVER"),  dated as of
August 18,  2005,  is entered  into by and between ROO Group,  Inc.,  a Delaware
corporation (the "COMPANY"),  AJW Offshore,  Ltd., AJW Qualified Partners,  LLC,
AJW Partners, LLC and New Millennium Capital Partners II, LLC (collectively, the
"HOLDERS" and each a "HOLDER"),  in connection with: (1) the Securities Purchase
Agreement  dated  as of  September  10,  2004  (the  "2004  SECURITIES  PURCHASE
AGREEMENT")  by and among the Company  and the Holders and the related  Callable
Secured  Convertible  Notes (the "2004 NOTES") and Stock Purchase  Warrants (the
"2004  WARRANTS")  issued by Company to the Holders  dated as of  September  10,
2004,  November 23, 2004 and February 3, 2005; and (2) the  Securities  Purchase
Agreement dated as of July 18, 2005 (the "2005 SECURITIES  PURCHASE  AGREEMENT,"
and  together  with  the  2004  Securities  Purchase  Agreement,  the  "PURCHASE
AGREEMENTS")  by and among the Company and the Holders and the related  Callable
Secured  Convertible  Notes (the "2005 NOTES," and together with the 2004 Notes,
the "NOTES") and Stock Purchase Warrants (the "2005 WARRANTS," and together with
the 2004 Warrants,  the "WARRANTS") issued by Company to the Holders dated as of
July 18, 2005.  Capitalized terms used herein without  definition shall have the
meanings  ascribed to such terms in the Purchase  Agreements,  the Notes and the
Warrants, as applicable.

      WHEREAS,  the Holders have agreed to consent to a private  placement  (the
"PRIVATE PLACEMENT") by the Company of up to 266,666,666 shares of the Company's
common stock to accredited  investors at a purchase  price of $0.03 per share in
one or more closings;

      WHEREAS,  part of the proceeds from the Private  Placement will be used to
complete an Optional  Prepayment  in full and final  settlement of the Notes and
interest thereon, as outlined in Schedule A hereto (the "Prepayment"); and

      WHEREAS, in connection with the Private Placement and the Prepayment,  the
Holders  have  agreed to waive  certain  obligations  of the  Company  under the
Purchase Agreements, the Notes and the Warrants as set forth herein.

      NOW,  THEREFORE,  in  consideration  of the above,  and for other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the parties hereto agree as follows:

      1.    The Holders hereby consent to the Private Placement.

      2.    The  Holders  hereby  agree  that  Exhibit  A  hereto  sets  for the
            consideration required from the Company as payment in full and final
            settlement of the Optional  Prepayment Sum (as defined in the Notes)
            required  for the  Company to effect an Optional  Prepayment  of the
            Notes in full.

                                      -i-

<PAGE>

      3.    For a period beginning the date hereof and ending the earlier of (a)
            the date the  Prepayment  is completed or (b) ten (10) business days
            of the date of this  Consent  and Waiver,  and solely in  connection
            with the Private  Placement  and the  Prepayment  of the Notes,  the
            Holders  hereby  waive  any  requirement  by  the  Company  to  have
            authorized,  and reserved for the purpose of issuance,  a sufficient
            number of shares of Common Stock to provide for the full  conversion
            or exercise of the  outstanding  Notes and  Warrants and issuance of
            the Conversion Shares and Warrant Shares in connection therewith.

      4.    The  Holders  hereby  agree that they will not  exercise  any of the
            Warrants  until after the Company  completes a reverse  split of its
            outstanding  shares of common stock or  increases  the number of its
            authorized shares of common stock.

      5.    The Company  covenants  that it will complete a reverse split of its
            outstanding  shares of common  stock or  increase  the number of its
            authorized shares of common stock within 75 days of the date of this
            Consent  and  Waiver.  In the event the  Company  does not  complete
            either of the aforementioned actions within the permitted timeframe,
            the Company shall be required to pay damages in the amount of $2,000
            for  every  seven  day  period   until  such  time  as  one  of  the
            aforementioned actions are completed.

      6.    The Holders  hereby waive the  requirement of the Company to provide
            prior written  notice to the Holders before the Company is permitted
            to effect an Optional Prepayment.

      7.    The Holders  hereby  waive  their  right to and hereby  agree not to
            convert any portion of the Notes  prior to the  Optional  Prepayment
            Date.

      8.    If the Company does not complete the Optional  Prepayment within ten
            (10) business days of the date of this Consent and Waiver, then this
            Consent and Waiver shall  immediately  terminate and the  provisions
            hereof shall be void.

      9.    Except as expressly  agreed hereby,  all of the terms and provisions
            of the Purchase Agreements,  Notes and Warrants are and shall remain
            in full force and effect.

      10.   This  Consent  and Waiver  shall be  construed  and  interpreted  in
            accordance  with the laws of the  State of New York  without  giving
            effect to the conflict of laws rules thereof or the actual domiciles
            of the parties.

      11.   This Consent and Waiver may be executed in one or more counterparts,
            each of which  shall be deemed an  original  and all of which  taken
            together shall constitute a single Consent and Waiver.

                            [SIGNATURE PAGE FOLLOWS.]

                                      -ii-

<PAGE>

      IN WITNESS  WHEREOF,  each of the  Company and each Holder has caused this
Consent and Waiver to be signed in their  respective name as of this 18th day of
August 2005.

ROO Group, Inc.                               AJW Offshore, Ltd.
                                              By:  First Street Manager II, LLC

______________________________                __________________________________
Robert Petty                                  Corey S. Ribotsky
Chief Executive Officer                       Manager

AJW Partners, LLC                             New Millennium Capital Partners
By: SMS Group, LLC                            II, LLC
                                              By:  First Street Manager II, LLP

______________________________                __________________________________
Corey S. Ribotsky                             Corey S. Ribotsky
Manager                                       Manager

AJW Qualified Partners, LLC
By:  AJW Manager, LLC

______________________________
Corey S. Ribotsky
Manager

                                     -iii-

<PAGE>

                                   SCHEDULE A
                                   PREPAYMENT

      The following shall  constitute full and final  settlement of the Optional
Prepayment Sum (as defined in the Notes) to effect an Optional Prepayment of the
Notes in full:

      1.    Payment by the Company to the Holders of $3,400,000  (Three  Million
            Four Hundred Thousand Dollars) cash within five (5) business days of
            the date of this Consent and Waiver; and

      2.    Issuance by the Company to the Holders of warrants (the  "PREPAYMENT
            WARRANTS")  entitling  the  Holders  to  purchase  3,000,000  (Three
            Million) shares of the Company's common stock, which shall be issued
            to the Holders within five business days after the Company completes
            a  reverse  split  or  increases  its  authorized   capital  of  its
            outstanding  shares of common stock.  The Prepayment  Warrants shall
            have a fixed  exercise  price  of  $0.03  per  share  and  shall  be
            exercisable for a period of five years after the date the Prepayment
            Warrants are issued.

<PAGE>

                             SCHEDULE OF EXCEPTIONS
                                       TO
                         COMMON STOCK PURCHASE AGREEMENT

(Prepared in connection with Shares sold by the Company to the Purchasers  under
the Common  Stock  Purchase  Agreement  dated  August 19, 2005 (the "August 2005
Purchase  Agreement").  Capitalized  terms not  defined  herein  shall  have the
meaning given to such terms in the August 2005 Purchase Agreement.)

                                 AUGUST 19, 2005

<PAGE>

                                 SCHEDULE 2.1(B)
                           AUTHORIZATION; ENFORCEMENT

      As of  August  19,  2005,  the  authorized  capital  stock of the  Company
includes  500,000,000  shares of Common Stock, of which  256,491,117  shares are
issued and outstanding,  50,000,000 shares are reserved for issuance pursuant to
the  Company's  stock  option  plans,  and  193,508,883  shares are reserved for
issuance  pursuant  to  outstanding  callable  secured  convertible  notes  (the
"Notes").  Until either:  (i) the Company pre-pays the Notes; or (ii) amends the
Company's  certificate of  incorporation  to increase the  authorized  number of
shares of Common  Stock  and/or  effect a reverse  stock split of the  Company's
outstanding  shares of Common Stock, the Company does not have sufficient shares
of Common Stock available to sell and issue the Shares.

      The Company  plans to  immediately  upon  receipt of funds make payment in
full to the  holders of the Notes  releasing  sufficient  authorized  capital to
issue the Shares. The Company will also complete a 1 for 50 reverse split of the
Company's Common Stock within 45 days of the transaction being completed.

<PAGE>

                                 SCHEDULE 2.1(C)
                                 CAPITALIZATION

AUTHORIZED CAPITAL STOCK:

      As of  August  19,  2005,  the  authorized  capital  stock of the  Company
consists of (i) 500,000,000  shares of Common Stock, of which 256,491,117 shares
are issued and outstanding, 50,000,000 shares are reserved for issuance pursuant
to the  Company's  stock  option  plans,  193,508,883  shares are  reserved  for
issuance  pursuant  to  securities  exercisable  for,  or  convertible  into  or
exchangeable for shares of Common Stock; and (ii) 20,000,000 shares of preferred
stock, of which 10,000,000  shares are designated as Series A Preferred Stock of
which 9,500,000 shares are issued and outstanding.

OUTSTANDING OPTIONS:

-------------------------------------------------------------------------------
                                           EXERCISE
NAME                               QTY      PRICE ($) NOTES
-------------------------------------------------------------------------------
OPTIONS ISSUED UNDER COMPANY
STOCK OPTION PLAN
-------------------------------------------------------------------------------
 Robert Petty                    6,000,000      0.13 Chairman CEO
-------------------------------------------------------------------------------
                                                     Director ROO Media
 Michael Neistat                 3,000,000      0.12 Corporation
-------------------------------------------------------------------------------
 Robin Smyth                     3,000,000      0.13 Director & CFO
-------------------------------------------------------------------------------
 Marc Mulgram                      500,000      0.16
-------------------------------------------------------------------------------
 Tristan Place                     500,000      0.12
-------------------------------------------------------------------------------
 Luke Douglas                      200,000      0.12
-------------------------------------------------------------------------------
 Justin Thompson                    50,000      0.16
-------------------------------------------------------------------------------
 Stephen Molloy                     50,000      0.16
-------------------------------------------------------------------------------
 Colin Schmidt                      50,000      0.16
-------------------------------------------------------------------------------
 Trenn Sayer                       100,000      0.16
-------------------------------------------------------------------------------
                                                     Upon meeting selected
 Daniel Aharonoff                6,000,000      0.10 Milestones
-------------------------------------------------------------------------------
 Kevin Williams                    250,000      0.10
-------------------------------------------------------------------------------
Kevin Williams                     150,000      0.10
-------------------------------------------------------------------------------
 OPTIONS NOT UNDER PLAN
-------------------------------------------------------------------------------
 Kensington Capital              2,000,000      0.05
-------------------------------------------------------------------------------
 Legend Merchant                 1,500,000      0.05
-------------------------------------------------------------------------------
 Legend Merchant                 2,500,000      0.10
-------------------------------------------------------------------------------
 Rubin Family Trust                675,000      0.10
-------------------------------------------------------------------------------
Brian Joffe                        200,000      0.10
-------------------------------------------------------------------------------
Strategic Growth                 7,000,000      0.20
-------------------------------------------------------------------------------
 TOTAL OPTIONS ISSUED          37,325,000
-------------------------------------------------------------------------------

<PAGE>

OUTSTANDING CONVERTIBLE DEBT AND WARRANTS:

July 2005 Securities Purchase Agreement

      On July 18, 2005, the Company entered into a Securities Purchase Agreement
with four  accredited  investors (the NIR Group) for the sale of: (i) $2,500,000
in callable secured  convertible  notes; and (ii) warrants to purchase 5,000,000
shares of Common Stock.  The investors are obligated to provide the Company with
the funds as follows:  (i)  $550,000 was  disbursed  on July 19, 2005;  and (ii)
approximately $177,273 will be disbursed on the final business day of each month
beginning in August 2005 and ending June 2006.  However,  the entire  $2,500,000
must be funded by the investors within five business days after effectiveness of
a  registration  statement  covering  the  number  of  shares  of  Common  Stock
underlying the callable secured convertible notes and the warrants.

      The callable secured convertible notes mature three years from the date of
issuance and bear  interest at 8% per annum,  provided  that no interest will be
due for any month in which the trading price of our common stock is greater than
$0.02575 for each trading day of the month.  The  callable  secured  convertible
notes are convertible into the Company's Common Stock at the investors'  option,
at the lower of:  (i)  $0.10;  or (ii) 50% of the  average  of the three  lowest
intraday  trading  prices for the Common Stock on the OTC Bulletin Board for the
20 trading  days before but not  including  the  conversion  date.  The callable
secured convertible notes have anti-dilution rights.

      The warrants are exercisable until five years from the date of issuance at
a purchase price of $0.20 per share.  The investors may exercise the warrants on
a cashless  basis if the shares of Common Stock  underlying the warrants are not
then registered pursuant to an effective  registration  statement.  The warrants
have antidilution rights.

September 2004 Securities Purchase Agreement

      The  Company  entered  into a  securities  purchase  agreement  with  four
accredited  investors  (the NIR Group) on September 10, 2004 for the sale of (i)
$3,000,000 in callable secured  convertible  notes and (ii) warrants to purchase
3,000,000 shares of common stock. The investors  provided the Company  aggregate
gross proceeds of $3,000,000 as follows:

      o     $1,000,000 was disbursed on September 13, 2004;

      o     $1,000,000  was  disbursed  on November  26,  2004,  after  filing a
            registration statement covering the number of shares of common stock
            underlying the secured convertible notes and the warrants; and

      o     $1,000,000 was disbursed on February 9, 2004, after effectiveness of
            the registration statement.

<PAGE>

      The callable  secured  convertible  notes bear  interest at 8%, mature two
years from the date of issuance,  and are convertible  into our common stock, at
the investors' option, at the lower of:

      o     $0.20; or

      o     65% of the average of the three lowest  intraday  trading prices for
            the common stock on the  Over-The-Counter  Bulletin Board for the 20
            trading days before but not including the conversion date.

The callable secured convertible notes have antidilution rights.

      The warrants are exercisable until five years from the date of issuance at
a purchase price of $0.10 per share.  The investors may exercise the warrants on
a cashless  basis if the shares of common stock  underlying the warrants are not
then registered pursuant to an effective  registration  statement.  The warrants
have antidilution rights.

OUTSTANDING PREFERRED STOCK:

      On March  17,  2005,  the  Company  issued  6,000,000  shares  of Series A
Preferred  Stock to its Chief  Executive  Officer,  Robert Petty,  and 1,500,000
shares of Series A Preferred Stock to its Chief Financial Officer,  Robin Smyth.
These shares have a combined valuation of $750,000.  These shares were issued as
a performance  bonus to Messrs.  Petty and Smyth for, among other things,  their
role in helping expand and grow the Company's business operations.

      Also on March 17,  2005,  the Company  issued and  aggregate  of 2,000,000
shares of Series A Preferred Stock to two accredited  investors as consideration
for  investor  relations  services.  These  shares have a combined  valuation of
$200,000.

      Beginning  two years from the date of  issuance  of the Series A Preferred
Stock, each one share of Series A Preferred Stock is convertible,  at the option
of the holder, into two shares of the Company's common stock.  However,  holders
cannot convert any share of Series A Preferred  Stock if the market price of the
Company's  common stock is below $0.40 per share. If prior to two years from the
date of issuance,  there is a sale or other  disposition of all or substantially
all of the Company's assets, a transaction or series of related  transactions in
which more than 50% of the voting power of the Company is disposed of, or upon a
consolidation, merger or other business combination where the Company is not the
survivor, then immediately prior to such event each holder of Series A Preferred
Stock may convert any or all of such holder's shares of Series A Preferred Stock
into common stock as described  above. In such event, if the market price of the
Company's  common  stock is below  $0.40 per share,  then each share of Series A
Preferred  Stock will convert into such shares of common stock equal to (x) two,
multiplied by (y) the closing price of the common stock on the date of the event
triggering a conversion, divided by $.20.

<PAGE>

REGISTRATION RIGHTS:

      In connection with the  transaction  described under "July 2005 Securities
Purchase  Agreement"  above,  the  Company is  required  to file a  registration
statement,  which will include the Common Stock  underlying the callable secured
convertible  notes and the  warrants,  within 30 days from  receipt of a written
demand from the investors for the Company to do so.

      As described under "Robert Petty Note Purchase  Agreement"  under Schedule
2.1(i)  hereof,  the Company has agreed to register  the resale of common  stock
issuable  by  Robert  Petty  to  certain  security   holders.   The  Company  is
contractually  obligated  to file such  registration  statement  by November 25,
2005. This transaction will be included in the registration  statement  required
to be filed by the Company pursuant to the Registration Rights Agreement.

      The shares  underlying the placement agent warrants  described in Schedule
2.1(p) will have standard  piggyback  registration  rights, a cashless  exercise
provision,  will be  non-redeemable  and will be  included  in the  registration
statement  required  to be filed by the  Company  pursuant  to the  Registration
Rights Agreement.

<PAGE>

                                 SCHEDULE 2.1(D)
                               ISSUANCE OF SHARES

      As of  August  19,  2005,  the  authorized  capital  stock of the  Company
includes  500,000,000  shares of Common Stock, of which  256,491,117  shares are
issued and outstanding,  50,000,000 shares are reserved for issuance pursuant to
the  Company's  stock  option  plans,  and  193,508,883  shares are reserved for
issuance  pursuant  to  outstanding  callable  secured  convertible  notes  (the
"Notes").  Until either:  (i) the Company pre-pays the Notes; or (ii) amends the
Company's  certificate of  incorporation  to increase the  authorized  number of
shares of Common  Stock  and/or  effect a reverse  stock split of the  Company's
outstanding  shares of Common Stock, the Company does not have sufficient shares
of Common Stock available to sell and issue the Shares.

<PAGE>

                                 SCHEDULE 2.1(E)
                                  NO CONFLICTS

      The sale of the Shares will cause an  adjustment  to the fixed  conversion
price of the callable secured convertible notes described in Schedule 2.1(c).

      The  Registration  Rights  Agreement  conflicts with  registration  rights
described in Schedule 2.1(c).

      As of  August  19,  2005,  the  authorized  capital  stock of the  Company
includes  500,000,000  shares of Common Stock, of which  256,491,117  shares are
issued and outstanding,  50,000,000 shares are reserved for issuance pursuant to
the  Company's  stock  option  plans,  and  193,508,883  shares are reserved for
issuance  pursuant  to  outstanding  callable  secured  convertible  notes  (the
"Notes").  Until either:  (i) the Company pre-pays the Notes; or (ii) amends the
Company's  certificate of  incorporation  to increase the  authorized  number of
shares of Common  Stock  and/or  effect a reverse  stock split of the  Company's
outstanding  shares of Common Stock, the Company does not have sufficient shares
of Common Stock available to sell and issue the Shares.

<PAGE>

                                 SCHEDULE 2.1(F)
                   COMMISSION DOCUMENTS; FINANCIAL STATEMENTS

      The Company  untimely  filed a current  report on Form 8-K  reporting  the
purchase of all of the  outstanding  shares of common  stock of Bickhams  Media,
Inc., a Delaware corporation.

      The Company untimely filed a current report on Form 8-K reporting entering
into a new lease agreement and changing the location of its principal  executive
office in New York.

<PAGE>

                                 SCHEDULE 2.1(G)
                                  SUBSIDIARIES

ROO Media Corporation, a Delaware corporation and wholly owned subsidiary of the
Company

ROO Media (Aust.) Pty Ltd., an Australia corporation and wholly owned subsidiary
of the Company

ROO Broadcasting  Ltd., an Australia  corporation and wholly owned subsidiary of
the Company

Undercover  Media  (Aust.) Pty Ltd., an Australia  corporation  and wholly owned
subsidiary of the Company

ROO TV Pty Ltd.,  an Australia  corporation  and wholly owned  subsidiary of the
Company

Bickhams Media, Inc., a Delaware  corporation and wholly owned subsidiary of the
Company

VideoDome.com Networks,  Inc., a wholly owned subsidiary of Bickhams Media, Inc.
and a California corporation

<PAGE>

                                 SCHEDULE 2.1(H)
                           NO MATERIAL ADVERSE CHANGE

      None.

<PAGE>

                                 SCHEDULE 2.1(I)
                           NO UNDISCLOSED LIABILITIES

ROBERT PETTY NOTE PURCHASE AGREEMENT:

      On May 18, 2005, the Company  entered into a note purchase  agreement with
Robert  Petty,  the  Company's   Chairman  and  Chief  Executive   Officer.   In
consideration  for gross  proceeds  of  $600,000,  the  Company  incurred a debt
payable to Mr.  Petty in the amount of $600,000.  The Company  paid  transaction
fees  totaling  $92,500,  which  includes  a  $60,000  placement  agent  fee  in
connection  with the sale by Mr. Petty of $600,000  principal  amount of secured
convertible  promissory  notes  (described  below) and  $32,500 in legal fees in
connection with the below  transactions.  As evidence of the $600,000 debt and a
prior existing  $500,000 debt payable to Mr. Petty, the Company issued Mr. Petty
a promissory  note in the principal  amount of $1,100,000.  The principal sum of
$1,100,000 plus interest at the rate of 10% per annum calculated  beginning June
1, 2005 is due to be re-paid on December 31,  2005.  The  Company's  obligations
under the promissory note are secured by a subordinated security interest in all
of the Company's assets.

      On May 19,  2005,  the  Company  applied  $200,000 of the  $600,000  gross
proceeds  from Mr.  Petty's  loan to  redeem  $142,857  principal  amount of the
Company's   outstanding   $3,000,000   principal   amount  of  callable  secured
convertible  notes issued to the NIR Group. As consideration for the redemption,
the holders of the callable secured  convertible notes agreed not to convert any
amount due under the callable  secured  convertible  notes at a conversion price
less than $0.10 per share for a 60-day  period  ending July 18, 2005. A complete
description of the material terms of the Company's agreement with the holders of
the  callable  secured  convertible  notes is  described in a Form 8-K which was
filed with the Securities and Exchange Commission on May 12, 2005.

      In connection with the above loan from Mr. Petty to the Company, Mr. Petty
personally sold an aggregate of $600,000 principal amount of secured convertible
promissory notes to certain investors.  The secured convertible promissory notes
are  convertible  into common  stock held by Mr. Petty at a price of $.0.025 per
share. Mr. Petty's  obligations under the secured  convertible  promissory notes
are secured by a  subordinated  security  interest in the  $1,100,000  principal
amount  promissory  note  payable  by the  Company  to Mr.  Petty.  The  secured
convertible promissory notes bear interest at a rate of 8% per annum. .

      As partial  consideration for the loan from Mr. Petty, the Company entered
into a registration  rights  agreement,  pursuant to which the Company agreed to
prepare and file a registration statement providing for the resale of the shares
of common stock issuable upon conversion of the secured  convertible  promissory
notes,  including shares of common stock that may be issued as interest payments
under the secured convertible promissory notes. If the registration statement is
not filed by November 25, 2005 or declared  effective by December 25, 2005,  Mr.

<PAGE>

Petty must pay  liquidated  damages  equal to 2% per  calendar  month or portion
thereof  of  aggregate  $600,000  aggregate  principal  amount  of  the  secured
convertible  promissory notes. Any liquidated damages may be paid in Mr. Petty's
option in cash or shares of common  stock of the Company  which are owned by Mr.
Petty.

JULY 2005 SECURITIES PURCHASE AGREEMENT:

      On July 18, 2005, the Company entered into a Securities Purchase Agreement
with four  accredited  investors (the NIR Group) for the sale of: (i) $2,500,000
in callable secured  convertible  notes; and (ii) warrants to purchase 5,000,000
shares of Common Stock.  The investors are obligated to provide the Company with
the funds as follows:  (i)  $550,000 was  disbursed  on July 19, 2005;  and (ii)
approximately $177,273 will be disbursed on the final business day of each month
beginning in August 2005 and ending June 2006.  However,  the entire  $2,500,000
must be funded by the investors within five business days after effectiveness of
a  registration  statement  covering  the  number  of  shares  of  Common  Stock
underlying the callable secured convertible notes and the warrants.

      The callable secured convertible notes mature three years from the date of
issuance and bear  interest at 8% per annum,  provided  that no interest will be
due for any month in which the trading price of our common stock is greater than
$0.02575 for each trading day of the month.  The  callable  secured  convertible
notes are convertible into the Company's Common Stock at the investors'  option,
at the lower of:  (i)  $0.10;  or (ii) 50% of the  average  of the three  lowest
intraday  trading  prices for the Common Stock on the OTC Bulletin Board for the
20 trading  days before but not  including  the  conversion  date.  The callable
secured convertible notes have anti-dilution rights.

      The warrants are exercisable until five years from the date of issuance at
a purchase price of $0.20 per share.  The investors may exercise the warrants on
a cashless  basis if the shares of Common Stock  underlying the warrants are not
then registered pursuant to an effective  registration  statement.  The warrants
have antidilution rights.

<PAGE>

                                 SCHEDULE 2.1(J)
                     NO UNDISCLOSED EVENTS AND CIRCUMSTANCES

      None.

<PAGE>

                                 SCHEDULE 2.1(K)
                                  INDEBTEDNESS

      See the disclosure under "Outstanding Convertible Debt and Warrants" under
Schedule 2.1(c) and the disclosure under "Robert Petty Note Purchase  Agreement"
under Schedule 2.1(i).

<PAGE>

                                 SCHEDULE 2.1(L)
                                 TITLE TO ASSETS

      The Company has  granted a security  interest in certain of the  Company's
assets to the investors  described in Schedule 2.1(c) hereof under  "Outstanding
Convertible Debt and Warrants."

      As  described  in  Schedule  2.1(i)  under  "Robert  Petty  Note  Purchase
Agreement," the Company has granted a subordinated  security interesting certain
of the  Company's  assets to Robert  Petty,  the  Company's  Chairman  and Chief
Executive Officer, in connection with a $1.1 million principal amount promissory
note.

<PAGE>

                                 SCHEDULE 2.1(M)
                                 ACTIONS PENDING

      None.

<PAGE>

                                 SCHEDULE 2.1(N)
                               COMPLIANCE WITH LAW

      None.

<PAGE>

                                 SCHEDULE 2.1(O)
                                      TAXES

      The  Company  currently  has  outstanding  a  withholding  tax  payable in
Australia.  The approximate  amount of the  outstanding  payment is USD $100,000
which will be paid in full immediately upon completing transaction.

<PAGE>

                                 SCHEDULE 2.1(P)
                                  CERTAIN FEES

      The Company has entered  into an  agreement  with  Burnham  Hill  Partners
("Burnham"),  pursuant to which, in connection  with the Transaction  Documents,
the Company must pay Burnham a cash fee equal to 10% of the gross proceeds up to
$3 million and 8% of the gross  proceeds in excess of $3 million.  In  addition,
the Company must issue  Burnham or its assigns  placement  agent  warrants in an
amount equal to 10% of the securities  issued in connection with the Transaction
Documents.  The placement  agent  warrants will be  exercisable at the Per Share
Purchase  Price  and  will  expire  five  years  from the  issuance  date of the
placement  agent  warrants.  The shares  underlying the placement agent warrants
will have standard piggyback registration rights, a cashless exercise provision,
will be  non-redeemable  and  will be  included  in the  registration  statement
required  to be  filed  by  the  Company  pursuant  to the  Registration  Rights
Agreement.

<PAGE>

                                 SCHEDULE 2.1(R)
                              OPERATION OF BUSINESS

      See the disclosure under Schedule 2.1(l).

<PAGE>

                                 SCHEDULE 2.1(S)
                            ENVIRONMENTAL COMPLIANCE

      None.

<PAGE>

                                 SCHEDULE 2.1(T)
                 BOOKS AND RECORDS; INTERNAL ACCOUNTING CONTROLS

      None.

<PAGE>

                                 SCHEDULE 2.1(U)
                               MATERIAL AGREEMENTS

      None.

<PAGE>

                                 SCHEDULE 2.1(V)
                          TRANSACTIONS WITH AFFILIATES

JANUARY 7, 2003 LOAN AGREEMENT:

      On  January  7,  2003,  ROO  Media  Corporation  entered  into a new  loan
agreement  with Mr. Robert Petty to replace a loan  agreement  entered into with
Mr. Petty dated July 29, 2001. The interest on the loan is 10% per annum and the
outstanding balance as of June 30, 2004 was $516,000.  Mr. Petty has agreed that
no demand for payment will be made to the company through  December 13, 2004 and
any  principle  repayment  during any month above  $20,000  will  require  board
approval.  The loan is secured  by all of the  assets of ROO Media.  The loan is
subordinate  to the first  priority  interest  granted to the Secured  Party (as
defined in the Security Agreement,  dated September 10, 2004, with NIR Group and
the Intellectual Property Security Agreement, dated September 10, 2004, with NIR
Group) in and to the  Collateral  (as defined in the Security  Agreement,  dated
September 10, 2004, with NIR Group) and the Intellectual Property (as defined in
the Intellectual Property Security Agreement, dated September 10, 2004, with NIR
Group).  This loan is evidenced partially by the promissory note described below
under "Robert Petty Note Purchase Agreement."

PURCHASE OF BICKHAMS MEDIA, INC.:

      On September 10, 2004,  the Company  entered into an agreement to purchase
of all of the outstanding  shares of common stock of Bickhams  Media,  Inc. from
Avenue Group,  Inc.  Avenue Group is a founding  shareholder  of the Company and
currently  owns  approximately  17% of the Company's  outstanding  common stock.
Also, in connection with the purchase of Bickhams  Media,  the Company agreed to
guaranty  all of  the  obligations  of  VideoDome.com  Networks,  Inc.  under  a
promissory  note of VideoDome that was issued to Avenue Group in October 2003 in
the principal  amount of $290,000.  The Company's  management  believes that the
terms of this transaction were at least as favorable as could have been obtained
from an unrelated third party.

SERIES A PREFERRED STOCK:

      On March  17,  2005,  the  Company  issued  6,000,000  shares  of Series A
Preferred  Stock to its Chief  Executive  Officer,  Robert Petty,  and 1,500,000
shares of Series A Preferred Stock to its Chief Financial Officer,  Robin Smyth.
These shares have a combined valuation of $750,000.  These shares were issued as
a performance  bonus to Messrs.  Petty and Smyth for, among other things,  their
role in helping expand and grow the Company's business operations.

ROBERT PETTY NOTE PURCHASE AGREEMENT:

      See the disclosure under Schedule 2.1(i) under "Robert Petty Note Purchase
Agreement."

<PAGE>

                                 SCHEDULE 2.1(X)
                             GOVERNMENTAL APPROVALS

      As of  August  19,  2005,  the  authorized  capital  stock of the  Company
includes  500,000,000  shares of Common Stock, of which  256,491,117  shares are
issued and outstanding,  50,000,000 shares are reserved for issuance pursuant to
the  Company's  stock  option  plans,  and  193,508,883  shares are reserved for
issuance  pursuant  to  outstanding  callable  secured  convertible  notes  (the
"Notes").  Until either:  (i) the Company pre-pays the Notes; or (ii) amends the
Company's  certificate of  incorporation  to increase the  authorized  number of
shares of Common  Stock  and/or  effect a reverse  stock split of the  Company's
outstanding  shares of Common Stock, the Company does not have sufficient shares
of Common Stock  available  to sell and issue the Shares.  In order to amend the
Company's  certificate  of  incorporation,  the Company must file either a proxy
statement or an  information  statement  with the Commission and mail such proxy
statement or  information  statement to the  Company's  shareholders  before the
amendment will become effective.

<PAGE>

                                 SCHEDULE 2.1(Y)
                           EMPLOYEES; LABOR RELATIONS

      None.

<PAGE>

                                 SCHEDULE 2.1(Z)
                         ABSENCE OF CERTAIN DEVELOPMENTS

CORPORATE SECURITIES:

      The Company has issued callable secured convertible notes and warrants and
Common Stock pursuant to conversions of the callable secured  convertible  notes
described  under  "Outstanding  Convertible  Debt and Warrants"  under  Schedule
2.1(c).

      The Company has issued shares of Series A Preferred  Stock described under
"Outstanding Preferred Stock" under Schedule 2.1(c).

      The Company has issued a promissory  note to Robert  Petty,  the Company's
Chairman  and Chief  Executive  Officer,  described  under  "Robert  Petty  Note
Purchase Agreement" under Schedule 2.1(i).

      In addition to the above, the Company has issued the following  securities
since December 31, 2004:

      On March 1, 2005 the Company issued 7,000,000  options to Strategic Growth
with an exercise  price of 20 cents  valued  under the  Black-Scholes  method as
$190,456 as payment for investor relations consulting services.

      On May 9,  2005 the  requirements  of the  second  milestone  in the stock
purchase  agreement  with Bickhams Media and Daniel and Vardit  Aharonoff  dated
November  1, 2004 being  Commercial  Launch of combined  platform  ROO Media and
VideoDome  Media Manager  platform  having been met the Company  authorized  the
payment of $100,000 and that 2,000,000  shares of common stock of the Company be
issued.

MATERIAL TRANSACTIONS NOT DESCRIBED ELSEWHERE IN THIS SCHEDULE 2.1(Z):

      On March 9, 2005, the Company amended its certificate of  incorporation to
designate the rights of Series A Preferred Stock.

      On April 1, 2005,  the Company  entered into a sublease for and on June 7,
2005 moved its principal  executive  office to premises located at 228 East 45th
Street 8th Floor New York, NY 10017.

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