Document:

Exhibit 4.2    Form of Warrant

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS OF ANY STATE (THE "ACTS") AND MAY NOT BE
SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION
STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACTS OR AN OPINION
OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

No. W- ___

                        WARRANT TO PURCHASE COMMON STOCK

                                       OF

                             MDI ENTERTAINMENT, INC.

         This certifies that, for value received, _____________("Holder"), with
an address at ___________________, is entitled, subject to the terms set forth
below, to purchase from MDI ENTERTAINMENT, INC. (the "Company"), a Delaware
corporation, shares (the "Shares") of the Common Stock of the Company ("Common
Stock"), as constituted on the date hereof (the "Warrant Issue Date"), with a
notice of exercise in one of the forms attached hereto duly executed, and
simultaneous payment therefor in lawful money of the United States, at the
Exercise Price as set forth in Section 2 below except as otherwise set forth
herein. The number, character and Exercise Price of such shares of Common Stock
are subject to adjustment as provided below.

         1.       TERM OF WARRANT.  This Warrant shall be exercisable,  in whole
or in part,  during the three-year term commencing December ___, 2000 and ending
on December ___, 2003.

         2.       EXERCISE PRICE AND NUMBER OF SHARES.

                  2.1 EXERCISE PRICE. The exercise price at which this Warrant
may be exercised shall be $1.75 per Share, as adjusted from time to time
pursuant to Section 11 hereof (the "Exercise Price").

                  2.2 NUMBER OF SHARES. The number of Shares which may be
purchased pursuant to this Warrant shall be _________ shares Shares, as adjusted
from time to time pursuant to Section 11 hereof.

         3.       EXERCISE OF WARRANT.

                  3.1 The purchase rights represented by this Warrant are
exercisable by the Holder in whole or in part at any time during the term of
this Warrant, or from time to time, by the surrender of this Warrant and a
notice of exercise in the form of the Cash Exercise Form annexed hereto duly
completed and executed on behalf of the Holder, at the office of the Company (or
such other office or agency of the Company as it may designate by notice in
writing to the Holder at the address of the Holder appearing on the books of the
Company) upon payment in cash, wire transfer or by check acceptable to the
Company. In lieu of the payment of the Exercise Price in cash, the Holder shall
<PAGE>

have the right (but not the obligation), during the Exercise Period, to require
the Company to convert this Warrant (the "Conversion Right"), in whole or in
part, into the Shares as provided for in this Section (the "Net Exercise
Shares"). Upon exercise of the Conversion Right, the Company shall deliver to
the Holder (without payment by the Holder of the Exercise Price) that number of
Net Exercise Shares equal to (i) the number of Shares issuable upon exercise of
the portion of the Warrant being converted, multiplied by (ii) the quotient
obtained by dividing (x) the value of the Warrant (on a per Share basis) at the
time the Conversion Right is exercised (determined by subtracting the Exercise
Price (as adjusted) from the Current Market Price (as defined below), for the
Shares issuable upon exercise of the Warrant immediately prior to the exercise
of the Conversion Right) by (y) the Current Market Price of one share of Common
Stock immediately prior to the exercise of the Conversion Right. The Conversion
Rights provided under this Section may be exercised in whole or in part and at
any time and from time to time while any Warrants remain outstanding. In order
to exercise the Conversion Right, the Holder shall surrender to the Company, at
its offices, this Warrant accompanied by a notice of exercise in the form of the
Cashless Exercise Form annexed hereto duly completed and executed. The
presentation and surrender shall be deemed a waiver of the Holder's obligation
to pay all or any portion of the aggregate Exercise Price payable for the Shares
being issued upon such exercise of this Warrant. This Warrant (or so much
thereof as shall have been surrendered for conversion) shall be deemed to have
been converted immediately prior to the close of business on the day of
surrender of this Warrant for conversion in accordance with the foregoing
provisions.

                  3.2 The "Current Market Price" per Share on any date shall be
deemed to be the average of the daily closing prices for the five (5)
consecutive trading days immediately preceding the date in question. The
"closing price" for each day shall be the last reported sales price, regular
way, or, in case no such reported sale takes place on such day, the average of
the closing bid and asked prices, in either case, reported on the principal
consolidated transaction reporting system with respect to the securities listed
on the principal national securities exchange on which the Common Stock is
listed or admitted to trading or, if the Common Stock is not listed or admitted
to trading on any national securities exchange, the closing price (as defined
above) for the Common Stock as furnished by the National Association of
Securities Dealers, Inc. through Nasdaq or a similar organization if Nasdaq is
no longer reporting such information. If on any such date the Common Stock is
not listed or admitted to trading on any national securities exchange and is not
quoted by Nasdaq or any similar organization, the fair value of a share of
Common Stock on such date, shall be determined by an independent appraiser
appointed in good faith by the Board of Directors of the Company, whose
determination shall be conclusive absent manifest error, shall be used.

                  3.3 This Warrant shall be deemed to have been exercised or
converted, as the case may be, immediately prior to the close of business on the
date of its surrender for exercise or conversion, as provided above, and the
person entitled to receive the Shares of Common Stock issuable upon such
exercise shall be treated for all purposes as the holder of record of such
Shares as of the close of business on such date. As promptly as practicable on
or after such date, the Company at its expense shall issue and deliver to the
person or persons entitled to receive the same a certificate or certificates for
the number of Shares issuable upon such exercise or conversion. In the event
that this Warrant is exercised in part, the Company at its expense will execute
and deliver a new Warrant of like tenor exercisable for the number of Shares for
which this Warrant may then be exercised.
<PAGE>

                  3.4 If this Warrant is exercised in part this Warrant must be
exercised or converted, as the case may be, for a number of whole shares of the
Common Stock, and any fractional shares which otherwise would have been issued
but for this Section 3.4 shall be rounded to the nearest whole number of shares.

         4. REPLACEMENT OF WARRANT. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of loss, theft or destruction, on delivery of an
indemnity agreement reasonably satisfactory in form and substance to the Company
or, in the case of mutilation, on surrender and cancellation of this Warrant,
the Company at its expense shall execute and deliver, in lieu of this Warrant, a
new warrant of like tenor and amount.

         5. RIGHTS OF STOCKHOLDERS. The Holder shall not be entitled to vote or
receive dividends or be deemed the holder of Common Stock, nor shall anything
contained herein be construed to confer upon the Holder, as such, any of the
rights of a stockholder of the Company or any right to vote for the election of
directors or upon any matter submitted to stockholders at any meeting thereof,
or to give or withhold consent to any corporate action (whether upon any
recapitalization, issuance of stock, reclassification of stock, change of par
value, or change of stock to no par value, consolidation, merger, conveyance or
otherwise) or to receive notice of meetings, or to receive dividends or
subscription rights or otherwise until the Warrant shall have been exercised as
provided herein.

         6. TRANSFER OF WARRANT.

                  6.1 EXCHANGE OF WARRANT UPON A TRANSFER. Upon delivery by the
transferee of a written agreement to be bound by the terms of this Warrant and
surrender of this Warrant for exchange, properly endorsed and transferred in
accordance with this Section 6, the Company at its expense shall issue to or on
the order of the Holder a new warrant or warrants of like tenor, in the name of
the Holder or as the Holder (on payment by the Holder of any applicable transfer
taxes) may direct, of the number of shares issuable upon exercise hereof.

                  6.2 RESTRICTIONS ON TRANSFER; COMPLIANCE WITH SECURITIES LAWS.

                  6.2.1 The Holder of this Warrant, by acceptance hereof,
acknowledges that this Warrant and the shares of Common Stock to be issued upon
exercise hereof are being acquired solely for the Holder's own account and not
as a nominee for any other party, and for investment and agrees to comply with
the transfer restrictions contained in this Section 6.2. The Holder will not
offer, sell or otherwise dispose of this Warrant or any Shares of Common Stock
to be issued upon exercise hereof, except under circumstances that will not
result in a violation of applicable federal and state securities laws. Prior to
offering, selling or otherwise disposing of the Warrants or Shares, the holder
hereof or thereof will give the Company a written notice describing the manner
and circumstances of the transfer accompanied by, if requested by the Company, a
written opinion of legal counsel satisfactory to the Company to the effect, as
amended, that the proposed transfer may be effected without registration under
the Securities Act of 1933 or any state blue sky law. Any Warrant or Shares
transferred in violation of applicable federal and state securities laws shall
<PAGE>

be void and not recognized by the Company. For so long as the restrictions on
transfer specified in this Section 6 apply, any transferee of this Warrant or
Shares shall execute an agreement agreeing to be bound by the terms of this
Section 6.

                  6.2.2 All shares of Common Stock issued upon exercise hereof
shall be stamped or imprinted with a legend in substantially the following form
(in addition to any legend required by state securities laws):

                    "THE SECURITIES  REPRESENTED HEREBY HAVE
                    NOT BEEN REGISTERED  UNDER UNITED STATES
                    FEDERAL OR STATE SECURITIES LAWS AND MAY
                    NOT  BE  OFFERED   FOR  SALE,   SOLD  OR
                    OTHERWISE  TRANSFERRED  OR ASSIGNED  FOR
                    VALUE,  DIRECTLY OR INDIRECTLY,  NOR MAY
                    THE  SECURITIES  BE  TRANSFERRED  ON THE
                    BOOKS    OF   THE    COMPANY,    WITHOUT
                    REGISTRATION  OF SUCH  SECURITIES  UNDER
                    ALL  APPLICABLE  UNITED  STATES  FEDERAL
                    SECURITIES  LAWS OR  COMPLIANCE  WITH AN
                    APPLICABLE  EXEMPTION  THEREFROM,   SUCH
                    COMPLIANCE AT THE OPTION OF THE COMPANY,
                    TO  BE   EVIDENCED   BY  AN  OPINION  OF
                    STOCKHOLDER'S     COUNSEL,    IN    FORM
                    ACCEPTABLE  TO  THE  COMPANY,   THAT  NO
                    VIOLATION    OF    SUCH     REGISTRATION
                    PROVISIONS   WOULD   RESULT   FROM   ANY
                    PROPOSED TRANSFER OR ASSIGNMENT."

         7.       REGISTRATION RIGHTS.

                  7.1      Certain Definitions.

                  As used in this Section 7, the following terms shall have the
following respective meanings:

"Commission" shall mean the Securities and Exchange Commission or any other
federal agency at the time administering the Securities Act.

"Holder" shall mean the record owner of Registrable Securities.

"Underwritten Public Offering" shall mean an underwritten public offering of the
Company's securities.

"Lock-Up Period" shall mean the period beginning on the effective date of the
Underwritten Public Offering and ending six months later.

The terms "Register" "Registered" and "Registration" refer to a registration
effected by preparing and filing a registration statement in compliance with the
Securities Act ("Registration Statement"), and the declaration or ordering of
the effectiveness of such Registration Statement.
<PAGE>

"Registrable Securities" shall mean all Common Stock not previously sold to the
public and issued to the Holder pursuant to the exercise of this Warrant, or
Common Stock issued with respect to such shares pursuant to stock splits, stock
dividends and similar distributions with respect to such shares, provided,
however, that shares of Common Stock which are Registrable Securities shall
cease to be Registrable Securities at such time, and for so long as, such shares
are eligible for sale pursuant to Rule 144(k) under the Securities Act.

"Registration Expenses" shall mean all expenses incurred by the Company in
complying with Section 7.2 of this Agreement, including, without limitation, all
federal and state registration, qualification and filing fees, printing
expenses, fees and disbursements of counsel and independent public accountants
for the Company, blue sky fees and expenses, fees of the National Association of
Securities Dealers, Inc., fees of transfer agents and registrars, costs of
insurance, fees and disbursements of one counsel for the sellers of Registrable
Securities, and the expense of any special audits incident to or required by any
such registration, but shall not include Selling Expenses.

"Securities Act" shall mean the Securities Act of 1933, as amended, or any
similar federal statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

"Selling Expenses" shall mean all underwriting discounts and selling commissions
applicable to the sale of Registrable Securities pursuant to this Agreement and
all expenses of any special counsel for the Holder.

                  7.2      Piggyback Registration.

                  7.2.1    Notice of Piggyback Registration and Inclusion
                           of Registrable Securities. Subject to the terms of
                           this Agreement, in the event the Company decides to
                           Register any of its Common Stock for cash (either for
                           its own account or the account of a security holder),
                           other than pursuant to (i) a Registration Statement
                           which exclusively relates to the Registration of
                           securities under an employee stock option, purchase,
                           bonus or other benefit plan, or (ii) a Registration
                           relating solely to a transaction under Rule 145
                           promulgated by the Commission, then at any time
                           following an Underwritten Public Offering and for so
                           long as the Holder holds Registrable Securities, the
                           Company will: (1) promptly give the Holder written
                           notice thereof (which shall include a list of the
                           jurisdictions in which the Company intends to attempt
                           to qualify such securities under the applicable Blue
                           Sky or other state securities laws); (2) include in
                           such Registration (and any related qualification
                           under Blue Sky laws or other compliance), and in any
                           underwriting involved therein, all the Registrable
                           Securities specified in a written request delivered
                           to the Company by the Holder within 10 days after
                           delivery of such written notice from the Company; (3)
                           use its commercially reasonable efforts to keep such
                           registration effective for a period of one year or
                           until each Holder has completed the distribution
                           described in the registration statement relating
                           thereto, whichever first occurs; (4) furnish such
                           number of prospectuses and other documents incident
                           thereto as each Holder from time to time may
                           reasonably request; and (5) register or qualify the
                           Registrable Securities covered by such registration
                           under such other securities or blue sky laws of such
                           jurisdiction (subject to the approval of any managing
                           underwriter involved) as each Holder shall reasonably
                           request, and do any and all other acts and things
                           which may be reasonably necessary or advisable to
                           enable each Holder to consummate the disposition in
                           such jurisdictions of the Registrable Securities;
<PAGE>

                           provided, however, that the Company shall not be
                           obligated, by reason thereof, to qualify as a foreign
                           corporation in any jurisdiction where it would not
                           otherwise be required to qualify or consent to
                           general service of process in any such jurisdiction
                           or subject itself to taxation as doing business in
                           any such jurisdiction.

                  7.2.2    Underwriting in Piggyback Registration. If the
                           Registration of which the Company gives notice is a
                           Registered public offering involving an underwriting,
                           the Company shall so advise the Holder as a part of
                           the written notice given pursuant to Subsection
                           7.2.1. In such event the right of the Holder to
                           Registration shall be conditioned upon such
                           underwriting and the inclusion of a Holder's
                           Registrable Securities in such underwriting to the
                           extent provided in this Section 7.2. The Holder
                           shall, together with the Company, enter into an
                           underwriting agreement with the Underwriter's
                           Representative for such offering. The Holder shall
                           have no right to participate in the selection of the
                           underwriters for an offering pursuant to this
                           Section.

                  7.2.3    Marketing, Limitation in Piggyback
                           Registration. In the event the Underwriter's
                           Representative advises the Company and the Holder
                           engaged in a Registration under Subsection 7.2.1 in
                           writing that market factors (including, without
                           limitation, the aggregate number of shares of Common
                           Stock requested to be Registered, the general
                           condition of the market and the status of the persons
                           proposing to sell securities pursuant to the
                           Registration) require a limitation of the number of
                           shares to be underwritten, the Underwriter's
                           Representative (subject to the allocation priority
                           set forth in Section 7.2.4) may exclude some or all
                           of the Registrable Securities from such Registration
                           and underwriting.

                  7.2.4    Allocation of Shares in Piggyback Registration.
                           In the event that the Underwriter's Representative
                           limits the number of shares to be included in a
                           Registration pursuant to Subsection 7.2.1, the Holder
                           shall be entitled to include a portion of the
                           Registrable Securities requested to be included in
                           such Registration pro rata (based on the number of
                           shares requested to be included) with all other
                           persons currently holding similar written piggyback
                           registration rights requesting Registration. Unless
                           all Registrable Securities and such other
                           piggybacking shares requested to be included in such
                           Registration are so included, no other securities may
                           be included in the Registration Statement in addition
                           to those securities being sold on behalf of the
                           Company.

                  7.2.5    Withdrawal in Piggyback Registration. If the Holder
                           disapproves of the terms of any such underwriting, it
<PAGE>

                           may elect to withdraw therefrom by written notice to
                           the Company and the underwriter delivered at least
                           seven days prior to the effective date of the
                           Registration Statement. Any Registrable Securities or
                           other securities excluded or withdrawn from such
                           underwriting shall be withdrawn from such
                           Registration.

                  7.3      Obligations of the Company and Holders.

                  7.3.1    Underwriting Requirements. In connection with any
                           offering involving an underwriting of shares pursuant
                           to Section 7.2 the Company shall not be required to
                           include any of the Holders' Registrable Securities in
                           such underwriting unless they accept the terms of the
                           underwriting as agreed upon between the Company and
                           the underwriters selected by it.

                  7.3.2    Expenses of Registration. All Registration Expenses
                           incurred in connection with all Registrations
                           pursuant to Section 7.2 shall be borne by the
                           Company. Selling Expenses to be borne by the holders
                           of the Registrable Securities Registered shall be
                           borne pro rata on the basis of the number of
                           Registrable Securities being Registered.

                  7.4      Indemnification.

                  7.4.1    Company's Indemnification of the Holder. The
                           Company will indemnify the Holder, and each of its
                           directors, officers, stockholders, partners or other
                           beneficial owners, and each person controlling the
                           Holder, with respect to which Registration,
                           qualification or compliance of Registrable Securities
                           has been effected pursuant to this Warrant, and each
                           underwriter, if any, and each person who controls any
                           underwriter against all claims, losses, damages or
                           liabilities, including reasonable legal fees and
                           expenses (or actions in respect thereof) to the
                           extent such claims, losses, damages or liabilities
                           arise out of or are based upon any untrue statement
                           (or alleged untrue statement) of a material fact
                           contained in any prospectus or other document
                           (including any related Registration Statement)
                           incident to any such Registration, qualification or
                           compliance, or are based on any omission (or alleged
                           omission) to state therein a material fact required
                           to be stated therein or necessary to make the
                           statements therein not misleading, or any violation
                           by the Company of any rule or regulation promulgated
                           under the Securities Act applicable to the Company
                           and relating to action or inaction required of the
                           Company in connection with any such Registration,
                           qualification or compliance; and the Company will
                           reimburse the Holder, each of its directors,
                           officers, stockholders, partners or other beneficial
                           owners, each such underwriter and each person who
                           controls the Holder or underwriter for any legal and
                           any other expenses reasonably incurred in connection
                           with investigating or defending any such claim, loss,
                           damage, liability or action; provided, however, that
                           the indemnity contained in this Section 7.4 shall not
                           apply to amounts paid in settlement of any such
                           claim, loss, damage, liability or action if
                           settlement is effected without the consent of the
                           Company (which consent shall not unreasonably be
                           withheld); and provided, further, that the Company
<PAGE>

                           will not be liable in any such case to the extent
                           that any such claim, loss, damage, liability or
                           expense arises out of or is based upon any untrue
                           statement or omission based upon written information
                           furnished to the Company by the Holder, underwriter
                           or controlling person and stated to be for use in
                           connection with the offering of securities of the
                           Company.

                  7.4.2    The Holder's Indemnification of Company. The
                           Holder will, if Registrable Securities held by the
                           Holder are included in the securities as to which
                           such Registration, qualification or compliance is
                           being effected pursuant to this Warrant, indemnify
                           the Company, each of its directors and officers, each
                           legal counsel and independent accountant of the
                           Company, each underwriter, if any, of the Company's
                           securities covered by such a Registration Statement,
                           and each person who controls the Company or such
                           underwriter within the meaning of the Securities Act
                           against all claims, losses, damages and liabilities,
                           including legal fees and expenses (or actions in
                           respect thereof), arising out of or based upon any
                           untrue statement (or alleged untrue statement) of a
                           material fact contained in any such Registration
                           Statement, prospectus, offering circular or other
                           document, or any omission (or alleged omission) to
                           state therein a material fact required to be stated
                           therein or necessary to make the statements therein
                           not misleading, or any violation by the Holder of any
                           rule or regulation promulgated under the Securities
                           Act applicable to the Holder and relating to action
                           or inaction required of the Holder in connection with
                           any such Registration, qualification or compliance;
                           and will reimburse the Company, such directors,
                           officers, partners, persons, law and accounting
                           firms, underwriters or control persons for any legal
                           and any other expenses reasonably incurred in
                           connection with investigating or defending any such
                           claim, loss, damage, liability or action, in each
                           case to the extent, but only to the extent, that such
                           untrue statement (or alleged untrue statement) or
                           omission (or alleged omission) is made in such
                           Registration Statement, prospectus, offering circular
                           or other document in reliance upon and in conformity
                           with written information furnished to the Company by
                           the Holder and stated to be specifically for use in
                           connection with the offering of securities of the
                           Company; provided, however, that the Holders'
                           liability under this Section 7.4 shall not exceed the
                           Holder's proceeds from the offering of securities
                           made in connection with such Registration.

                  7.4.3    Indemnification Procedure. Promptly after
                           receipt by an indemnified party under this Section
                           7.4 of notice of the commencement of any action, such
                           indemnified party will, if a claim in respect thereof
                           is to be made against an indemnifying party under
                           this Section 7.4, notify the indemnifying party in
                           writing of the commencement thereof and generally
                           summarize such action. The indemnifying party shall
                           have the right to participate in and to assume the
                           defense of such claim; provided, however, that the
                           indemnifying party shall be entitled to select
                           counsel for the defense of such claim with the
                           approval of any parties entitled to indemnification,
                           which approval shall not be unreasonably withheld;
                           provided further, however, that if either party
<PAGE>

                           reasonably determines that there may be a conflict
                           between the position of the Company and the Holders
                           in conducting the defense of such action, suit or
                           proceeding by reason of recognized claims for
                           indemnity under this Section 7.4, then counsel for
                           such party shall be entitled to conduct the defense
                           to the extent reasonably determined by such counsel
                           to be necessary to protect the interest of such
                           party. The failure to notify an indemnifying party
                           promptly of the commencement of any such action, if
                           prejudicial to the ability of the indemnifying party
                           to defend such action, shall relieve such
                           indemnifying party, to the extent so prejudiced, of
                           any liability to the indemnified party under this
                           Section 7.4, but the omission so to notify the
                           indemnifying party will not relieve such party of any
                           liability that such party may have to any indemnified
                           party otherwise other than under this Section 7.4.

                  7.4.4    Subsequent Transferees. The provisions of this
                           Section 7.4 applicable to the Holder shall apply with
                           equal force and effect to each subsequent transferee
                           to whom any of the Registrable Securities are
                           transferred with the consent of the Company.

                  7.5      Market Stand-Off.

                           During the Lock-Up Period, the Holder shall agree not
                           to transfer, sell, make short sales of, loan, grant
                           any option for the purchase of, or otherwise dispose
                           of any Registrable Securities, except for private
                           sales to persons approved by the Company (which
                           approval will not be unreasonably withheld) and who
                           agree to be bound by the provisions of this Agreement
                           (including this Section 7.5).

                  7.6      Current Public Information.

                           At all times after the Company has filed a
                           Registration Statement pursuant to the Securities
                           Act, the Company will timely file all reports
                           required under the Securities Act or the Securities
                           Exchange Act of 1934, as amended, and the rules and
                           regulations thereunder, and will take such further
                           action as may be reasonably required to enable any
                           Holder of "restricted securities" (as defined in Rule
                           144 adopted by the Commission under the Securities
                           Act) to sell such securities pursuant to Rule 144, as
                           amended from time to time, or any similar rule or
                           regulation hereafter adopted by the Commission.

         8. RESERVATION OF STOCK. The Company covenants that during the term
that this Warrant is exercisable, the Company will reserve from its authorized
and unissued Common Stock a sufficient number of shares to provide for the
issuance of Common Stock upon the exercise of this Warrant and, from time to
<PAGE>

time, will take all steps necessary to amend its Certificate of Incorporation
(the "Certificate") to provide sufficient reserves of shares of Common Stock
issuable upon the exercise of the Warrant. The Company further covenants that
all Shares that may be issued upon the exercise of rights represented by this
Warrant, upon exercise of the rights represented by this Warrant and payment of
the Exercise Price (unless cashless exercise is elected) all as set forth
herein, will be free from all taxes, liens and charges in respect of the issue
thereof (other than taxes in respect of any transfer occurring contemporaneously
or otherwise specified herein), and will be validly issued, fully paid and
nonassessable.

         9. NOTICES. Whenever the Exercise Price or number of shares purchasable
hereunder shall be adjusted pursuant to Section 11 hereof, the Company shall
issue a certificate signed by its Chief Financial Officer setting forth, in
reasonable detail, the event requiring the adjustment, the amount of the
adjustment, the method by which such adjustment was calculated, and the Exercise
Price and number of shares purchasable hereunder after giving effect to such
adjustment, and shall cause a copy of such certificate to be mailed (by
first-class mail, postage prepaid) to the Holder of this Warrant.

         10. AMENDMENTS.

                  10.1 Any term of this Warrant may be amended with the written
consent of the Company and the Holder. Any amendment effected in accordance with
this Section 10 shall be binding upon the Holder, each future Holder and the
Company.

                  10.2 No waivers of, or exceptions to, any term, condition or
provision of this Warrant, in any one or more instances, shall be deemed to be,
or construed as, a further or continuing waiver of any such term, condition or
provision.

         11.ADJUSTMENTS.  The number of Shares purchasable  hereunder and/or the
Exercise Price at which such Shares may be purchased is subject to adjustment
from time to time as follows:

                  11.1 REORGANIZATION, MERGER OR SALE OF ASSETS. If at any time
while this Warrant, or any portion thereof, is outstanding and unexpired there
shall be (i) a reorganization (other than a combination, reclassification,
exchange or subdivision of shares otherwise provided for herein), (ii) a merger
or consolidation of the Company with or into another corporation in which the
Company is not the surviving entity, or a reverse triangular merger in which the
Company is the surviving entity but the shares of the Company's capital stock
outstanding immediately prior to the merger are converted by virtue of the
merger into other property, whether in the form of securities, cash or
otherwise, or (iii) a sale or transfer of the Company's properties and assets
as, or substantially as, an entirety to any other person, then, as a part of
such reorganization, merger, consolidation, sale or transfer, lawful provision
shall be made so that the holder of this Warrant shall thereafter be entitled to
receive upon payment of the Exercise Price then in effect, the number of shares
<PAGE>

of stock or other securities or property of the successor corporation resulting
from such reorganization, merger, consolidation, sale or transfer that a holder
of the Shares deliverable upon exercise of this Warrant would have been entitled
to receive in such reorganization, consolidation, merger, sale or transfer if
this Warrant had been exercised immediately before such reorganization, merger,
consolidation, sale or transfer, all subject to further adjustment as provided
in this Section 11. The foregoing provisions of this Section 11.1 shall
similarly apply to successive reorganizations, consolidations, mergers, sales
and transfers and to the stock or securities of any other corporation that are
at the time receivable upon the exercise of this Warrant. If the per-share
consideration payable to the Holder hereof for shares in connection with any
such transaction is in a form other than cash or marketable securities, then the
value of such consideration shall be determined in good faith by the Company's
Board of Directors. In all events, appropriate adjustment (as determined in good
faith by the Company's Board of Directors) shall be made in the application of
the provisions of this Warrant with respect to the rights and interests of the
Holder after the transaction, to the end that the provisions of this Warrant
shall be applicable after that event, as near as reasonably may be, in relation
to any shares or other property deliverable after that event upon exercise of
this Warrant.

                  11.2 RECLASSIFICATION. If the Company, at any time while this
Warrant, or any portion thereof, remains outstanding and unexpired, by
reclassification of securities or otherwise, shall change any of the securities
as to which purchase rights under this Warrant exist into the same or a
different number of securities of any other class or classes, this Warrant shall
thereafter represent the right to acquire such number and kind of securities as
would have been issuable as the result of such change with respect to the
securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change and the Exercise
Price therefor shall be appropriately adjusted, all subject to further
adjustment as provided in this Section 11.

                  11.3 DIVIDEND, SPLIT, SUBDIVISION OR COMBINATION OF SHARES. If
the Company at any time while this Warrant, or any portion thereof, remains
outstanding and unexpired shall (i) declare a dividend or make a distribution on
the securities as to which purchase rights under this Warrant exist payable in
shares of its capital stock or securities convertible into or exchangeable for
capital stock or (ii) split, subdivide or combine the securities as to which
purchase rights under this Warrant exist, then, in each case, the Exercise Price
in effect, and the number of shares issuable upon exercise of the Warrant, at
the time of the record date for such dividend or at the effective date of such
split, subdivision or combination, shall be proportionately adjusted so that the
holders of the Warrant after such time shall be entitled to receive upon
exercise of the Warrant the aggregate number and kind of shares which, if such
Warrant had been exercised immediately prior to such time, such holders would
have owned upon such exercise and immediately thereafter been entitled to
receive by virtue of such dividend, split, subdivision or combination. Such
adjustment shall be made successively whenever any event listed above shall
occur, subject to further adjustment as provided in this Section 11.

                  12.PARTIES  BOUND,  ETC. The  provisions of this Warrant shall
be binding upon and inure to the benefit of the Holder and its respective heirs,
beneficiaries,  legal representatives,  successors and assigns (except as
otherwise prohibited by this Warrant).

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its officers thereunto duly authorized.

Dated as of December ___, 2000

                                                    MDI ENTERTAINMENT, INC.

                                                    By:
                                                       Name:
                                                       Title:

<PAGE>

                               CASH EXERCISE FORM

TO:      MDI ENTERTAINMENT, INC.
         201 Ann Street
         Hartford, CT 06103
         Attention: President

         (1) The undersigned hereby elects to purchase _______ shares of Common
Stock of MDI ENTERTAINMENT, INC. pursuant to the terms of the attached Warrant
and tenders herewith payment of the purchase price for such shares in full.

         (2) In exercising this Warrant, the undersigned hereby confirms and
acknowledges that the shares of Common Stock are being acquired solely for the
account of the undersigned and not as a nominee for any other party, and for
investment, and that the undersigned will not offer, sell or otherwise dispose
of any such shares of Common Stock except under circumstances that will not
result in a violation of the Securities Act of 1933, as amended, or any state
securities laws.

         (3) Please issue a certificate or certificates representing said shares
of Common Stock in the name of the undersigned or in such other name as is
specified below:

                                                              (Name)

                                                              (Signature)

         (4) Please issue a new Warrant for the unexercised portion of the
attached Warrant in the name of the undersigned or in such other name as is
specified below:

                                                              (Name)

(Date)                                                        (Signature)

<PAGE>

                             CASHLESS EXERCISE FORM

TO:      MDI ENTERTAINMENT, INC.
         201 Ann Street
         Hartford, CT 06103
         Attention: President

         (1) The undersigned hereby irrevocably elects to surrender its Warrant
for the number of Shares as shall be issuable pursuant to the cashless exercise
provisions of Section 3 of the within Warrant, in respect of ________ Shares
underlying the within Warrant.

         (2) In exercising this Warrant, the undersigned hereby confirms and
acknowledges that the shares of Common Stock are being acquired solely for the
account of the undersigned and not as a nominee for any other party, and for
investment, and that the undersigned will not offer, sell or otherwise dispose
of any such shares of Common Stock except under circumstances that will not
result in a violation of the Securities Act of 1933, as amended, or any state
securities laws.

         (3) Please issue a certificate or certificates representing said shares
of Common Stock in the name of the undersigned or in such other name as is
specified below:

                                                              (Name)

                                                              (Signature)

         (4) Please issue a new Warrant for the unexercised portion of the
attached Warrant in the name of the undersigned or in such other name as is
specified below:

                                                              (Name)

(Date)                                                        (Signature)Exhibit 10.1     Form of Loan Agreement.

                                 LOAN AGREEMENT

         This LOAN AGREEMENT ("Agreement") is entered into and effective this
___ day of December, 2000 and is by and among ___________, and individual having
an address at ___________________ (the "Lender"), and MEDIA DROP-IN PRODUCTIONS,
INC., a Delaware corporation having a place of business at 201 Ann Street,
Hartford, CT 06103 ("Borrower"), and MDI ENTERTAINMENT, INC., a Delaware
corporation having a place of business at 201 Ann Street, Hartford, CT 06103
("Guarantor").

                                    RECITALS

         Borrower has requested, and Lender has agreed to make, a loan to
Borrower in the aggregate principal amount of $_________, on and subject to the
terms and conditions of this Agreement.

         Guarantor is the parent company of Borrower and has agreed to guaranty
all of Borrower's obligations to Lender.

         In consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Borrower, Guarantor and Lender hereby agree as follows:

                                   ARTICLE 1
                         AMOUNTS AND TERMS OF THE LOANS

         A.       THE LOAN

1.01     Loan.

(a) Subject to the terms and conditions set forth in this Agreement, the Lender
agrees to make a loan to Borrower in the principal amount of ___________________
and 00/100 Dollars ($____________) (the "Loan"). The Loan shall be evidenced by,
and shall be repaid with interest in accordance with the terms and provisions
of, a convertible promissory note of Borrower in substantially the form attached
hereto as Exhibit A-1 (the "Convertible Note").

(b) The Loan shall be secured by a security interest in all of Borrower's
assets, pursuant to a Security Agreement by and between Borrower and the Lender,
of even date herewith (the "Security Agreement"), and shall be guaranteed by
Guarantor pursuant to a Guaranty Agreement by and between Guarantor and the
Lender, of even date herewith (the "Guaranty Agreement"). The Guaranty Agreement
shall be secured by a security interest in all of Guarantor's assets, pursuant
to a Security Agreement by and between Guarantor and the Lender, of even date
herewith (the "Guarantor Security Agreement").

(c) As further consideration for, and to induce the Lender to make, the Loan,
Guarantor shall issue to the Lender and/or their designees a warrant or warrants
<PAGE>

having an exercise period of three (3) years and entitling the Lender and/or
their designees to purchase ________ shares of Guarantor's Common Stock, at an
exercise price equal to $1.75 (the "Warrant"). The Warrant shall be in the form
attached hereto as Exhibit A-2.

         1.02 Loan Documents. For the purposes of this Agreement, the
Convertible Note, the Security Agreement, the Guaranty Agreement, the Guarantor
Security Agreement, and the Warrant, may hereinafter be referred to individually
as a "Loan Document" and collectively as the "Loan Documents."

         1.03 Closing. The closing of the transactions contemplated by this
Agreement (the "Closing") shall occur simultaneously with the execution of this
Agreement by the parties hereto.

         B.       CERTAIN GENERAL PROVISIONS

         1.01 Payments Free of Deductions. All payments by Borrower hereunder
and under any of the other Loan Documents shall be made without setoff or
counterclaim and free and clear of and without deduction for any taxes, levies,
imposts, duties, charges, fees, deductions, withholdings, compulsory loans,
restrictions or conditions of any nature now or hereafter imposed or levied by
any jurisdiction or any political subdivision thereof of taxing or other
authority therein unless Borrower is compelled by law to make such deduction or
withholding. If any such obligation is imposed upon Borrower with respect to any
amount payable by it hereunder or under any of the other Loan Documents,
Borrower will pay to Lender on the date on which such amount is due and payable
hereunder or under such other Loan Document, such additional amount in dollars
as shall be necessary to enable Lender to receive the same net amount which
Lender would have received on such due date had no such obligation been imposed
upon Borrower. Borrower will deliver promptly to Lender certificates or other
valid vouchers for all taxes or other charges deducted from or paid with respect
to payments made by Borrower hereunder or under such other Loan Document.

         1.02 Computations. All computations of interest on the Loan or other
fees or other charges shall be based on a 360-day year and paid for the actual
number of days elapsed.

         1.03 Obligations Absolute. The obligations of Borrower under this
Agreement shall be unconditional and irrevocable, and shall be paid strictly in
accordance with the terms of this Agreement and such other agreement or
instrument under all circumstances, and irrespective of, the following
circumstances:

(d) any lack of validity or enforceability of all or any portion of this
Agreement or any other agreement or any instrument relating hereto;

(e) any change in the time, manner or place of payment of, or in any other term
of, all or any of the obligations of Borrower;

(f) the existence of any claim, setoff, defense or other right that Borrower may
have;
<PAGE>

(g) any amendment or waiver of or consent to departure from any of the Loan
Documents, or all or any of the obligations of Borrower in respect to the Loans
of this Agreement; or

(h) any other circumstance or happening whatsoever, whether or not similar to
any of the foregoing, including without limitation, any other circumstance that
might otherwise constitute a defense available to, or a discharge of, either
Borrower and Guarantor.

         C.       MISCELLANEOUS

         1.01  Use of Proceeds.  The proceeds of the Loan shall be used for
working capital purposes.

                                   ARTICLE 2
                               CONDITION PRECEDENT

         2.01 Conditions Precedent to Effectiveness. The effectiveness of this
Agreement shall be subject to the prior satisfaction of each of the following
conditions:
         (a)  Lender shall have received each of the following, in form and
substance satisfactory to Lender and his counsel:

              (1) This Agreement, duly executed and delivered by each of
Borrower and Guarantor;

              (2) The Convertible Note, duly executed and delivered by Borrower;

              (3) The Guaranty Agreement, duly executed and delivered by
Guarantor;

              (4) The Security Agreement, duly executed and delivered by
Borrower together with such UCC-1 Financing Statements as are in the opinion of
Lender desirable or necessary to perfect the security interest created by the
Security Agreement;

              (5) The Guarantor Security Agreement, duly executed and delivered
by Guarantor together with such UCC-1 Financing Statements as are in the opinion
of Lender desirable or necessary to perfect the security interest created by the
Guarantor Security Agreement;

              (6) The Warrant (which shall be delivered prior to the close of
business on the first business day following the Closing);

              (7) Copies of all corporate action taken by Borrower and
Guarantor, including resolutions of their respective Board of Directors,
authorizing the execution, delivery, and performance of the Loan Documents to
<PAGE>

which it is party and each other document to be delivered pursuant to this
Agreement, certified as of the date of this Agreement by the Secretary of
Borrower and Guarantor, as the case may be;

              (8) The Certificate of Incorporation (certified by the Secretary
of the State of Delaware) and Bylaws of each of Borrower and Guarantor;

              (9) A certificate, dated as of the date of this Agreement, of the
Secretary of each of Borrower and Guarantor certifying the names and true
signatures of the officers of Borrower or the Guarantor, as the case may be,
authorized to sign the Loan Documents to which Borrower or Guarantor is a party
and the other documents to be delivered by Borrower or Guarantor under this
Agreement;

              (10) Certificates of Good Standing issued by the Delaware
Secretary of the State evidencing that each of Borrower and Guarantor is a
Delaware corporation in good standing;

              (11) A consent executed by each of Steven M. Saferin ("Saferin")
and Robert R. Sparacino ("Sparacino"), in substantially the form attached hereto
as Exhibit A-5.

              (12) All other documents, instruments and agreements that Lender
shall require in connection with this Agreement.

         (b) All representations and warranties contained in this Agreement
shall be true and correct in all material respects.

                                   ARTICLE 3
                         REPRESENTATIONS AND WARRANTIES

         Borrower and Guarantor represent and warrant jointly and severally to
Lender that, except as otherwise publicly disclosed:

         3.01 Financial Information. Any financial statements heretofore
delivered to Lender in connection with the loan transactions contemplated hereby
are true and correct in all respects, were prepared in accordance with generally
accepted accounting principles consistently applied and fairly present the
respective financial condition, market value and cash flow of the subject
thereof as of the respective dates thereof, no material adverse change has
occurred in the financial conditions reflected therein since the respective
dates thereof and no additional borrowings have been made by Borrower and
Guarantor since the date thereof which have not been fully repaid or which would
materially affect Borrower's and Guarantor's ability to perform its obligations
hereunder other than the borrowings contemplated hereby.

         3.02 Litigation. There are no actions, suits or proceedings pending, or
to the best knowledge of Borrower and Guarantor threatened, against or affecting
Borrower or Guarantor or involving the validity or enforceability of the Loan
Documents, at law or in equity, or before or by any governmental authority,
which, if adversely determined against Borrower or Guarantor, would have a
material adverse effect on Borrower's or Guarantor's financial condition, and
<PAGE>

Borrower and Guarantor is not in default with respect to any judgment, decision,
order, writ, injunction, decree or demand of any court or any governmental
authority.

         3.03 Power and Authority. The consummation of the transactions hereby
contemplated and the performance of the Loan Documents are within the powers of
Borrower and Guarantor and have been duly authorized by all necessary corporate
action and do not and will not result in any breach of, or constitute a default
under, or conflict with any statute or other law, or any order, regulation or
ruling of any court or other tribunal or of any governmental or administrative
authority or agency, or any mortgage, lease, loan or credit agreement, corporate
charter or by-law, or other instrument or agreement to which Borrower or
Guarantor is a party or by which Borrower or Guarantor or its respective
properties may be bound or affected.

         3.04 No Default. There is no default on the part of Borrower or
Guarantor under the Loan Documents and no event has occurred and is continuing
which with notice or the passage of time or both would constitute an Event of
Default hereunder. There is also no default on the part of Borrower or Guarantor
under any other agreement or instrument to which Borrower or Guarantor is a
party or by which Borrower or Guarantor is bound and no event has occurred and
is continuing which with notice or the passage of time or both would constitute
a default under any such instrument.

         3.05 ERISA. Neither Borrower nor Guarantor have a deferred benefit
pension plan under the Employee Retirement Income Security Act of 1974, as
amended from time to time, the unfunded liabilities of which upon termination
could be held to be a liability of Borrower or Guarantor by the Pension Benefit
Guaranty Corporation.

         3.06 Incorporation, Good Standing and Due Qualification. Each of
Borrower and Guarantor (i) is a corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware; (ii) has all corporate
power and authority necessary to own its properties and to carry on the business
in which it is now engaged or proposed to be engaged; and (iii) is duly
qualified and in good standing as foreign corporation under the laws of each
other jurisdiction in which the failure to qualify would have a material adverse
affect.

         3.07 Environmental Laws. Borrower and Guarantor are in material
compliance with, and have not received any summons, citation, directive, letter,
or other communication from any governmental authority concerning any
intentional or unintentional violation or alleged violation of, any
Environmental Laws.

         3.08 Taxes. Borrower and Guarantor have filed all tax returns (federal,
state and local) required to be filed and have paid all taxes, assessments, and
governmental charges and levies thereon to be due, including interest and
penalties.

         3.09 Governmental Consents. Borrower and Guarantor have obtained all
consents, licenses and other approvals from all governmental authorities
required (i) in connection with the execution, delivery and performance by
Borrower or Guarantor of the Loan Documents and (ii) to conduct the business of
Borrower or Guarantor as now conducted and as presently proposed to be
conducted.
<PAGE>

         3.10 Compliance with Laws. Borrower and Guarantor are in compliance in
all material respects with all applicable laws, rules, regulations, and orders
of governmental authorities.

         3.11 Conflicts with Proprietary Rights of Others. Except as set forth
on Schedule 3.11 or as provided for pursuant to any Permitted Loan (as defined
below), the Borrower and Guarantor possess and have good, valid and marketable
title, free and clear of all security interests, liens, claims, charges,
encumbrances or other defects in title of any nature whatsoever to, or has the
valid, enforceable right to use, all trademarks, trademark rights, trade names,
trade name rights, licenses, franchises, service marks, patents, patent
applications, copyrights, inventions, discoveries, improvements, processes,
trade secrets, formulae, proprietary rights or date, shop rights, ideas or
know-how necessary to conduct its business as now being conducted or as proposed
to be conducted, without known conflict with or known infringement upon any
valid rights of others and the lack of which could materially and adversely
affect the operations of condition, financial or otherwise, of Borrower and
Guarantor.

         3.12 Patents and Other Intangible Rights. To the knowledge of Borrower
and Guarantor, Borrower and Guarantor are not infringing upon any known right or
claimed right of any person under or with respect to any patents, trademarks,
trademark rights, trade names, trade name rights or copyrights and rights with
respect to the foregoing.

         3.13 Title to Assets; No Liens. Except as set forth on Schedule 3.13,
or as provided for pursuant to any Permitted Loan, the Borrower and Guarantor
have good and marketable title to all of its assets, and none of its assets is
subject to any security interest or lien except in favor of Lender.

         3.14 Material Contracts. Borrower and Guarantor have no material
contracts, agreements or commitments which have not been publicly disclosed or
otherwise disclosed to Lender.

         3.15 Subsidiaries. Borrower and Guarantor have no subsidiaries the
existence of which has not been publicly disclosed or otherwise disclosed to
Lender.

                                   ARTICLE 4
                       COVENANTS OF BORROWER AND GUARANTOR

         Each of Borrower and Guarantor shall:

         4.01 Financial Reports. Deliver to the Lender (i) internally prepared
monthly cash flow projections, (ii) as soon as available, and in any event
within forty-five (45) days after the close of each of the first three (3)
fiscal quarters, an internally prepared balance sheet as at the end of such
quarter and an income statement for such quarter, certified by the chief
financial officer of Borrower or Guarantor, as the case may be, as being true,
complete and correct, and (iii) as soon as available, and in any event within
ninety (90) days after the close of each fiscal year, an internally prepared
<PAGE>

balance sheet as at the end of such fiscal year and an income statement for such
fiscal year, certified by the chief financial officer of Borrower or Guarantor,
as the case may be, as being true, complete and correct.

         4.02 Maintenance of Existence. Preserve and maintain its organizational
existence and good standing in the jurisdiction of its organization, and qualify
and remain qualified as a foreign corporation in each jurisdiction in which the
failure to qualify would have a material affect.

         4.03 Maintenance of Records. 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 Borrower and
Guarantor.

         4.04 Maintenance of Properties. Maintain, keep, and preserve all of its
properties necessary or useful in the proper conduct of its business in good
working order and condition, ordinary wear and tear excepted.

         4.05 Conduct of Business. Continue to engage in a business of the same
general type as conducted and proposed to be conducted by it on the date of this
Agreement.

         4.06 Maintenance of Insurance. (i) Keep its properties insured against
fire and other hazards (so-called "All Risk" coverage) in amounts and with
companies satisfactory to Lender to the same extent in covering such risks as is
customary in the same or a similar business, but in no event in an amount less
than the replacement value of the insured property which policy shall name
Lender as loss payee as its interest may appear, (ii) maintain public liability
coverage against claims for personal injuries, death or property damage in an
amount deemed reasonable by Lender, which policy shall name Lender as an
additional insured, and (iii) maintain all worker's compensation, employment or
similar insurance as may be required by applicable law. Such All Risk property
insurance coverage and such malpractice insurance coverage shall provide for a
minimum of thirty (30) days' written cancellation notice to Lender. Upon request
of either Lender, Borrower and Guarantor agrees to deliver copies of all of the
aforesaid insurance policies to Lender.

         4.07 Compliance With Laws. Comply in all respects with all applicable
laws, rules, regulations, and orders of governmental authorities, such
compliance to include, without limitation, paying before the same become
delinquent all taxes, assessments, and governmental charges imposed upon it or
upon its property.

         4.08 Right of Inspection. At any reasonable time and from time to time
upon reasonable advance notice, permit Lender or any agent or representative of
Lender to examine and make copies of and abstracts from the records and books of
account of, and visit the properties of, Borrower and Guarantor and to discuss
the affairs, finances, and accounts of Borrower and Guarantor with any of its
officers and directors and Borrower and Guarantor's independent accountants
(who, by this reference, are authorized by Borrower and Guarantor to discuss
such matters with Lender or any agent or representative of Lender).

         4.09 Mergers, Etc. Not merge or consolidate with, or sell, assign,
lease, or otherwise dispose of (whether in one transaction or in a series of
<PAGE>

transactions) all or substantially all of its assets (whether now owned or
hereafter acquired) to any person or entity, or acquire all or substantially all
of the assets or the business of any person or entity, without the prior written
consent of Lender.

         4.10 Sale of Assets. Not sell, lease, assign, transfer, or otherwise
dispose of any of its now owned or hereafter acquired assets except: (a) for
inventory disposed of in the ordinary course of business; and (b) the sale or
other disposition of assets no longer used or useful in the conduct of its
business.

         4.11 Guaranties, Etc. Except as expressly permitted by this Agreement,
not assume, guaranty, endorse, or otherwise be or become directly or
contingently responsible or liable (including, but not limited to, an agreement
to purchase any obligation, stock, assets, goods, or services, or to supply or
advance any funds, assets, goods, or services, or to maintain or cause such
person or entity to maintain a minimum working capital or net worth, or
otherwise to assure the creditors of any person or entity against loss) for
obligations of any person or entity, except guaranties by endorsement of
negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business

         4.12 Transactions With Affiliates. Except for the any additional loans
made to Saferin or Sparacino (together with Saferin, the "September Lenders")
pursuant to a Loan Agreement (the "September Loan Agreement"), dated September
8, 2000, by an among Sparacino, Saferin, Media Drop-In Productions, Inc. and MDI
Entertainment, Inc. ("Additional September Loans"), not enter into any
transaction, including, without limitation, the purchase, sale, or exchange of
property or the rendering of any service, with any Affiliate, except in the
ordinary course of and pursuant to the reasonable requirements of Borrower and
Guarantor's business and upon fair and reasonable terms no less favorable to
Borrower and Guarantor than would obtain in a comparable arm's-length
transaction with an independent third party.

         4.13 Subsidiaries. Not create or otherwise acquire an interest in any
subsidiary.

         4.14 Fiscal Year. Not change its fiscal year, which is currently
January 1 through December 31.

         4.15 Notices. Notify the Lender (i) immediately upon becoming aware of
the occurrence of an Event of Default or (ii) if Borrower and Guarantor are
named a defendant in any litigation involving amounts greater than $50,000.

         4.16 Debt. Not incur indebtedness except (i) indebtedness permitted
pursuant to the September Loan Agreement (ii) in favor of Lender and lenders who
make loans on substantially the same terms as under this Agreement in an
aggregate principal amount not to exceed $_______, (iii) trade indebtedness in
the ordinary course of business, (iii) indebtedness, up to $100,000 in the
aggregate, to vendors of equipment purchased by Borrower, and (iv) indebtedness
specifically permitted by Section 5.01 below.

         4.17 Liens. Except for (i) liens securing indebtedness described in
Section 5.01 below, (ii) liens for taxes, assessments or similar charges
incurred in the ordinary course of business which are not delinquent, (iii)
<PAGE>

liens securing purchase money indebtedness permitted by Section 4.16 above, and
(iv) mechanic's, materialmen's, supplier's, vendor's and similar liens arising
under law in the ordinary course of business which are not delinquent, not cause
or suffer to permit any liens to be placed on any of its assets which secure the
Loans from time to time except liens in favor of Lenders.

                                   ARTICLE 5
              REPRESENTATIONS, WARRANTIES, AND COVENANTS OF LENDER

         5.01 Additional Loans to Borrower. The Lender hereby acknowledges and
agrees that following the date hereof, the Borrower may borrow up to an
aggregate principal amount of _______________ and 00/100 dollars ($___________)
from one or more other lenders (the "Permitted Loan"); provided that (i) the
Permitted Loans shall not have any terms or conditions superior to the terms and
conditions set forth in this Agreement, the Convertible Notes and the other Loan
Documents, and (ii) the lenders of the Permitted Loan (the "Additional Lenders")
shall agree to the provisions of Section 5.02 below.

         5.02 Intercreditor Agreement. The Lender hereby agrees that each other
lender has the right to pursue, at any time and from time to time, any and all
rights and remedies he may have under the Loan Documents and, in the event that
a lender elects to exercise any such rights and remedies (an "Initiating
Lender") each other lender shall be obligated, upon request of the Initiating
Lender, to similarly exercise such other lender's rights and remedies and to
cooperate with the Initiating Lender. In addition, the Lender hereby agrees
that, notwithstanding the provisions of any of the Loan Documents, the security
interest held by, and the guaranty provided to, the Lender under the Loan
Documents shall have the same priority as the security interest held by, and the
guaranty provided to, each other lender, including the Additional Lenders, the
September Lenders, and the lenders under the Loan Agreement, dated November 28,
2000 (together with the Lenders, the Additional Lenders and the September
Lenders, the "Permitted Lenders"), by and among David Jacobs, Jay Leonard, Scott
Williams, the Borrower and the Guarantor, and all of the Permitted Lenders shall
have the right to participate pari passu in any recovery obtained as a result of
the enforcement by any Permitted Lender of any of his rights or remedies under
their respective Loan Documents.

         5.03 Representations and Warranties. The Lender hereby represents and
warrants, as follows:

                  (i) Such Lender is acquiring their respective warrant and
         convertible note hereunder for its own account with the present
         intention of holding such securities for purposes of investment, and
         that it has no intention of selling such securities in a public
         distribution in violation of the federal securities laws or any
         applicable state securities laws. Such Lender understands that the
         warrant, convertible note, and any securities issued in connection with
         the exercise or conversion of such warrant or convertible note, as
         applicable, have not been registered under the Securities Act, by
         reason of their issuance in a transaction exempt from the registration
<PAGE>

         requirements of the Securities Act, and that they must be held
         indefinitely unless a subsequent disposition thereof is registered
         under the Securities Act or is exempt from registration. Each
         certificate or instrument representing such warrant, convertible note,
         and any securities issued in connection with the exercise or conversion
         of such warrant or convertible note, as applicable, shall be imprinted
         with a legend in substantially the following form:

         "THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
         UNITED STATES FEDERAL OR STATE SECURITIES LAWS AND MAY NOT BE OFFERED
         FOR SALE, SOLD OR OTHERWISE TRANSFERRED OR ASSIGNED FOR VALUE, DIRECTLY
         OR INDIRECTLY, NOR MAY THE SECURITIES BE TRANSFERRED ON THE BOOKS OF
         THE COMPANY, WITHOUT REGISTRATION OF SUCH SECURITIES UNDER ALL
         APPLICABLE UNITED STATES FEDERAL SECURITIES LAWS OR COMPLIANCE WITH AN
         APPLICABLE EXEMPTION THEREFROM, SUCH COMPLIANCE AT THE OPTION OF THE
         COMPANY, TO BE EVIDENCED BY AN OPINION OF STOCKHOLDER'S COUNSEL, IN
         FORM ACCEPTABLE TO THE COMPANY, THAT NO VIOLATION OF SUCH REGISTRATION
         PROVISIONS WOULD RESULT FROM ANY PROPOSED TRANSFER OR ASSIGNMENT."

         (ii) Such Lender is an "accredited investor," as defined in Rule 501
         (the provisions of which are known to such Lender) promulgated under
         the Securities Act and has been advised by individuals with such
         knowledge and experience in financial and business matters as to be
         capable of evaluating the merits and risks of its investment in the
         Guarantor, has the ability to bear the economic risks of its investment
         for an indefinite period of time, has been furnished with and has had
         access to such information as reasonably requested and has had the
         opportunity to ask, and has received satisfactory answers for,
         questions of the Borrower and the Guarantor.

                                   ARTICLE 6
                                EVENTS OF DEFAULT

         Each of the following events shall constitute an "Event of Default"
hereunder:

         6.01 Borrower or Guarantor fails to make payment to either Lender of
any amounts due under any Loan Documents when due;

         6.02 Borrower or Guarantor shall fail to observe or perform any
covenant or agreement under any Loan Documents or any other agreement or
instrument executed by Borrower or Guarantor in favor of Lender, other than, in
each case, a covenant or agreement relating to the payment of amounts due
thereunder, and such failure is not remedied within thirty (30) days;

         6.03 (i) Borrower or Guarantor shall (A) admit, in writing, its
inability to pay its debts generally as they become due; (B) file a petition in
bankruptcy or a petition to take advantage of any insolvency act; (C) make an
assignment for the benefit of creditors; (D) consent to, or acquiesce in, the
appointment of a receiver, liquidator or trustee of itself or of the whole or
any substantial part of its properties or assets; or (E) file a petition or
<PAGE>

answer seeking reorganization, arrangement, composition, readjustment,
liquidation, dissolution, or similar relief under the federal bankruptcy laws or
any other applicable law; or (ii) (A) a court of competent jurisdiction shall
enter an order, judgment or decree appointing a receiver, liquidator or trustee
of Borrower or Guarantor and/or of the whole or any part of the property or
assets of Borrower or Guarantor and such order, judgment or decree shall remain
unvacated, or not set aside, or unstayed for 45 days, or (B) a petition shall be
filed against Borrower or Guarantor seeking reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under the
federal bankruptcy laws or any other applicable law and such petition shall
remain undismissed for 60 days, or (C) under the provisions of any other law for
the relief or aid of debtors, any court of competent jurisdiction shall assume
custody or control of Borrower or Guarantor or of the whole or any part of their
property or assets and Such custody or control shall remain unterminated or
unstayed for 45 days; or (iii) an order shall be entered in any proceeding by or
against Borrower or Guarantor decreeing the dissolution of Borrower or Guarantor
or the winding up of the affairs of Borrower or Guarantor or (iv) an attachment
or execution is levied against any portion of the property of Borrower or
Guarantor and is not discharged within 60 days;

         6.04 Any representation or warranty made by Borrower or Guarantor
herein or in any other agreement, report, certificate, statement or instrument
(including, without limitation, financial statements) relating to the Loans
shall be or become untrue, inaccurate or misleading in any material respect;

         6.05 A default shall occur with respect to any other liabilities,
indebtedness or obligations of Borrower or Guarantor to either Lender, of every
kind and description, direct or indirect, absolute or contingent, due or to
become due, now existing of hereafter arising, liquidated or unliquidated,
regardless of how they arise or by what agreement or instrument they may be
evidenced or whether evidenced by any agreement or instrument and also including
obligations to perform acts and to refrain from taking action as well as
obligations to pay money and such default shall continue beyond the applicable
cure period, if any;

         6.06 The voluntary or involuntary dissolution or winding up of Borrower
or Guarantor;

         6.07 One or more judgments, decrees, or orders for the payment of money
not covered by insurance shall be rendered against Borrower or Guarantor and
such judgments, decrees, or orders shall continue unsatisfied and in effect for
a period of thirty (30) consecutive days without being vacated, discharged,
satisfied, stayed or bonded pending appeal; or

         6.08 The sale or other transfer in any form of fifty (50%) percent or
more of the beneficial ownership of Borrower.

         6.09 Any Borrower Security Agreement or Guarantor Security Agreement
shall at any time after its execution and delivery and for any reason other than
an act or omission by a Lender cease to create a valid and perfected first
priority security interest (or such lesser priority security interest as may be
specifically set forth therein) in and to the property purported to be subject
to such agreement or otherwise to be in full force and effect, or any Borrower
Security Agreement or Guaranty Security Agreement shall be declared null and
void, or the validity or enforceability thereof shall be contested by Borrower
or Guarantor, or Borrower or Guarantor shall deny it has any further liability
<PAGE>

or obligation under any such agreement, or Borrower or Guarantor shall fail to
perform any of its obligations under any such agreement subject to any notice
and cure provisions contained therein.

         6.10 At any time after its execution and delivery and for any reason,
the Guaranty Agreement, shall cease to be in full force and effect or shall be
declared null and void, or the validity or enforceability of the Guaranty
Agreement shall be contested by, Guarantor or Guarantor shall deny that it has
any further liability or obligation under such agreement, or Guarantor shall
fail to perform any of its obligations under the Guaranty Agreement.

                                   ARTICLE 7
                                    REMEDIES

         7.01 If an Event of Default has occurred and is continuing, Lender may,
at his option, exercise any right, power or remedy permitted by law, including,
without limitation, any one or more of the following:

         (a) Declare all of the obligations of Borrower and/or Guarantor
immediately due and payable, provided that upon the occurrence of any of the
events specified in Section 6.03 above affecting Borrower and Guarantor, all
obligations of Borrower or Guarantor shall become immediately due and payable
without declaration, notice or demand;

         (b) Borrower and/or Guarantor will reimburse Lender for all reasonable
fees of attorneys or collection agencies and all reasonable expenses, costs and
charges paid or payable to third persons or suffered or incurred by Lender in
attempting or affecting the enforcement of any provision hereof, or the
enforcement of the Loan Documents or in the collection of the amounts secured
hereby or in the exercise of any authority, right or remedy conferred upon
Lender herein or by law, together with interest thereon at the default rate of
interest in the Convertible Notes or the maximum rate permitted by law,
whichever is lower; and

         (c) All rights, remedies and options conferred upon Lender hereunder or
by law shall be cumulative and may be exercised successively or concurrently and
are not alternative or exclusive of any such rights, remedies or options. No
express waiver by Lender of any default or Event of Default hereunder shall in
any way be, or construed to be, a waiver of any future or subsequent default of
Event of Default. The failure or delay of Lender in exercising any rights
granted to him hereunder shall not constitute a waiver of any such right in the
future and any single or partial exercise of any particular right by Lender
shall not exhaust such rights or constitute a waiver of any other right provided
herein or by law.

                                   ARTICLE 8
                                  MISCELLANEOUS

         8.01 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute an original and all of which taken
together shall constitute one instrument.
<PAGE>

         8.02 Provisions of the Loan Documents. The Loan Documents are subject
to the conditions, stipulations, agreements and covenants contained herein to
the same extent and effect as if fully set forth therein until this Agreement is
terminated and all principal, interest and other sums due and owing to Lender
under this Agreement and on the Convertible Notes and the other Loan Documents
have been paid in full.

         8.03 Further Assurances. Borrower and/or Guarantor shall, on demand of
either Lender, do any act or execute any additional documents reasonably
required by a Lender to carry out the terms of the Loan Documents and to keep
each Lender informed of the status and affairs of Borrower and Guarantor.

         8.04 Parties Bound, Etc. The provisions of this Agreement shall be
binding upon and inure to the benefit of Borrower and Guarantor and each Lender
and their respective heirs, beneficiaries, legal representatives, successors and
assigns (except as otherwise prohibited by this Agreement). This Agreement is a
contract between Lender and Borrower and Guarantor for their mutual benefit and
no third person shall have any right, claim or interests against Lender or
Borrower and Guarantor by virtue of any provision hereof or as a result of any
action or inaction of Lender in connection therewith.

         Each reference herein to a Lender shall be deemed to include his heirs,
beneficiaries, legal representatives, successors and assigns, and each reference
to Borrower and Guarantor and any pronouns referring thereto as used herein
shall be construed in the masculine, feminine, neuter, singular or plural as the
context may require, and shall be deemed to include successors and assigns of
Borrower and Guarantor, all of whom shall be bound by the provisions hereof.

         8.05 Notices. All notices and directions to either party shall be in
writing and shall be deemed given when delivered or deposited in. the United
States mail, and if delivered by mail, shall be mailed by registered or
certified first class mail, return receipt requested, postage prepaid, and
addressed as follows:

(1)      to the Lender at:

(2)      to Borrower and Guarantor at:

                           MDI Entertainment, Inc.
                           201 Ann Street
                           Hartford, CT  06103
                           Attn:  Kenneth Przysiecki

                           with a copy to:

                           Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
                           Chrysler Center
                           666 Third Avenue
                           New York, NY  10017
                           Attn:  Kenneth R. Koch, Esq.
<PAGE>

or, as to all of the foregoing, to such other address as the addressee shall
have indicated by prior notice (in accordance with the provisions of this
Section) to the one giving the notice or direction in question.

         8.06 Survival of Representations and Warranties. All of the covenants
representations and warranties made in this Agreement shall survive the
execution and delivery hereof, and may be relied upon by Lender regardless of
any inspection or investigation or lack thereof by Lender, so long as all or any
portion of the Convertible Note remains unpaid. All covenants, representations
and warranties contained in the Loan Documents, and in any agreement,
certificate, statement, report or other document delivered by or on behalf of
Borrower and Guarantor as provided herein, or otherwise in connection with the
transactions contemplated hereby, shall be deemed to have been made in this
Agreement.

         8.07 Severability. If any provision of this Agreement or the
application thereof to any person or circumstance is held invalid, such
invalidity shall not affect other provisions which can be given effect without
the invalid provision or application, and to this end, the provisions of this
Agreement shall be severable.

         8.08 Waivers, Extensions and Releases. Lender may at any time and from
time to time waive any one or more of the conditions contained herein or extend
the time of payment amounts due to Lender, but any such waiver or extension
shall be deemed to be made in pursuance and not in modification hereof, and any
such wavier in any instance or under any particular circumstance shall not be
considered a waiver of such condition in any other instance or any other
circumstance.

         8.09 Governing Law; Jurisdiction. This Agreement and the other Loan
Documents shall be construed in accordance with and governed by the laws of the
State of Connecticut without regard to its conflict of laws rules and the
Convertible Notes shall take effect as an instrument under seal.

         8.10 Termination. This Agreement shall terminate and be of no further
force and affect when Borrower and Guarantor have repaid the indebtedness
evidenced by the Convertible Notes fully and indefeasibly and Borrower and
Guarantor have otherwise satisfied all of their respective obligations to Lender
hereunder and under the other Loan Documents.

         8.11 Borrower and Guarantor/Lender Relationship. Nothing contained in
this Agreement shall be construed as creating a joint venture or partnership of
or between Lender and Borrower and Guarantor or to create any other relationship
between the parties hereto other than as Borrower and Guarantor and Lender, and
Borrower and Guarantor hereby indemnify and agree to hold harmless Lender from
any and all damages resulting from such a construction of the relationship of
the parties hereto.
<PAGE>

         8.12 Borrower and Guarantor to Pay Fees and Charges. Borrower and
Guarantor shall pay, upon demand, all costs, damages, charges and expenses
incurred in the procuring, making, implementation and enforcement of the Loan,
including, without limitation, the reasonable fees and disbursements of Lender's
attorneys.

         8.13 WAIVER OF TRIAL BY JURY. BORROWER AND GUARANTOR HEREBY KNOWINGLY,
VOLUNTARILY AND AFTER CONSULTATION WITH COUNSEL, WAIVE ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN ANY LITIGATION BASED HEREON, ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT AND ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN
CONNECTION HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
WRITTEN OR ORAL) OR ACTIONS OF EITHER PARTY.

         8.14 PREJUDGMENT REMEDY WAIVER. TO INDUCE LENDER TO ACCEPT THIS
AGREEMENT, BORROWER AND GUARANTOR AGREE THAT THE LOANS EVIDENCED BY THE
CONVERTIBLE NOTES, THIS AGREEMENT AND ALL OTHER LOAN DOCUMENTS ARE AND EVIDENCE
A COMMERCIAL TRANSACTION AND NOT A CONSUMER TRANSACTION, AND WAIVES ANY RIGHT TO
A NOTICE AND HEARING UNDER CHAPTER 903A OF THE CONNECTICUT GENERAL STATUTES, AS
AMENDED, OR OTHER STATUTE OR STATUTES AFFECTING PREJUDGMENT REMEDIES AND
AUTHORIZES LENDERS' ATTORNEY TO ISSUE A WRIT FOR A PREJUDGMENT REMEDY WITHOUT
COURT ORDER, PROVIDED THE COMPLAINT SHALL SET FORTH A COPY OF THIS WAIVER.
BORROWER AND GUARANTOR ACKNOWLEDGE AND STIPULATE THAT SUCH WAIVER AND
AUTHORIZATION GRANTED ABOVE ARE MADE KNOWINGLY AND FREELY AND AFTER FULL
CONSULTATION WITH COUNSEL. SPECIFICALLY, BORROWER AND GUARANTOR RECOGNIZE AND
UNDERSTAND THAT THE EXERCISE OF LENDER'S RIGHTS DESCRIBED ABOVE MAY RESULT IN
THE ATTACHMENT OF OR LEVY AGAINST BORROWER AND GUARANTOR'S PROPERTY, AND SUCH
WRIT FOR A PREJUDGMENT REMEDY WILL NOT HAVE THE PRIOR WRITTEN APPROVAL OR
SCRUTINY OF A COURT OF LAW OR OTHER JUDICIAL OFFICER NOR WILL BORROWER AND
GUARANTOR HAVE THE RIGHT TO ANY NOTICE OR PRIOR HEARING WHERE BORROWER AND
GUARANTOR MIGHT CONTEST SUCH A PROCEDURE. THE INTENT OF BORROWER AND GUARANTOR
IS TO GRANT TO LENDER FOR GOOD AND VALUABLE CONSIDERATION THE RIGHT TO OBTAIN
SUCH A PREJUDGMENT REMEDY AND TO ASSURE THAT ANY SUCH PREJUDGMENT REMEDY
OBTAINED IS VALID AND CONSTITUTIONAL.

         8.15 Convertible Note Replacement. Upon receipt of an affidavit of
Lender as to the loss, theft, destruction or mutilation of a Convertible Note or
any other security document which is not of public record, and, in the case of
any such loss, theft, destruction or mutilation upon surrender and cancellation
of such Convertible Note or other security document, Borrower will issue, in
lieu thereof, a replacement Convertible Note or other security document in the
same principal amount thereof and otherwise of like tenor.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Loan
Agreement as of the day and year first above written.

                                               LENDER:

                                               By: ________________________

                                               BORROWER:

                                               Media Drop-In Productions, Inc.

                                               By: ________________________
                                                   Name:
                                                   Title:

                                               GUARANTOR:

                                               MDI Entertainment, Inc.

                                               By: ________________________
                                                   Name:
                                                   Title:

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