You’re one array short. The tax_query is an array of arrays.
$args = array( 'post_type' => POST_TYPE,
'tax_query' => array(
array (
'taxonomy' => TAX,
'field' => 'slug',
'terms' => TERM
),
),
'posts_per_page' => 2
);
See http://ottopress.com/2010/wordpress-3-1-advanced-taxonomy-queries/ for more.