Document:

ANNEX V
                                                                              TO
                                                   SECURITIES PURCHASE AGREEMENT
                                                   (PROTOTYPE FOR EACH ISSUANCE)

                                 FORM OF WARRANT

      THESE  SECURITIES  HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES ACT OF
      1933, AS AMENDED,  OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD
      OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE  REGISTRATION STATEMENT
      FOR THE SECURITIES OR AN OPINION OF COUNSEL OR OTHER  EVIDENCE  ACCEPTABLE
      TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

CLASS 2005-___(1)

                     CONSPIRACY ENTERTAINMENT HOLDINGS, INC.

                          COMMON STOCK PURCHASE WARRANT

      1. Issuance.  In  consideration  of good and valuable  consideration,  the
receipt  and   sufficiency  of  which  is  hereby   acknowledged  by  CONSPIRACY
ENTERTAINMENT   HOLDINGS,    INC.,   a   Utah   corporation   (the   "Company"),
_____________________________  or  registered  assigns (the  "Holder") is hereby
granted the right to  purchase at any time until 5:00 P.M.,  New York City time,
on  the   Expiration   Date  (as  defined   below),   __________________________
(____________)(2)  fully paid and  nonassessable  shares of the Company's Common
Stock $.001 par value (the "Common  Stock"),  at an initial  exercise  price per
share  (the  "Exercise  Price")  of  US$____(3)  per  share,  subject to further
adjustment  as set forth  herein.  This Warrant is being issued  pursuant to the
terms of that certain  Securities  Purchase  Agreement,  dated as of January 31,
2005 (the "Agreement"), to which the Company and Holder (or Holder's predecessor
in interest) are parties.  Capitalized  terms not otherwise defined herein shall
have the meanings ascribed to them in the Agreement. This Warrant was originally
issued to the Holder or the Holder's predecessor in interest on February 9, 2005
(the "Issue Date").

---------------------------------
1     Insert appropriate Class identification: A or B.

2     Insert:  for each Class - number  equal to 100% of the number of the Issue
      Date Conversion Shares.

3     Insert:  (i) for Class A - $0.20; (ii) for Class B - amount equal to Fixed
      Conversion Price

<PAGE>

      2. Exercise of Warrants.

            2.1 General.

            (a) This Warrant is  exercisable in whole or in part at any time and
      from time to time commencing on the Commencement  Date (as defined below).
      Such exercise shall be effectuated by submitting to the Company (either by
      delivery  to the  Company or by  facsimile  transmission  as  provided  in
      Section  9 hereof)  a  completed  and duly  executed  Notice  of  Exercise
      (substantially  in the  form  attached  to this  Warrant  Certificate)  as
      provided  in the Notice of  Exercise  (or  revised by notice  given by the
      Company as contemplated by the Section headed "NOTICES" in the Agreement).
      The date such  Notice of  Exercise  is faxed to the  Company  shall be the
      "Exercise  Date,"  provided  that,  if such exercise  represents  the full
      exercise of the  outstanding  balance of the  Warrant,  the Holder of this
      Warrant  tenders this Warrant  Certificate  to the Company within five (5)
      business days thereafter.  The Notice of Exercise shall be executed by the
      Holder of this Warrant and shall  indicate the number of shares then being
      purchased pursuant to such exercise.

            (b) The Exercise Price per share of Common Stock for the shares then
      being exercised shall be payable to the Company in cash or by certified or
      official bank check or by wire transfer in  accordance  with  instructions
      provided by the Company at the request of the Holder.

            (c) Upon the  appropriate  payment  of the  Exercise  Price  for the
      shares of Common  Stock  purchased,  together  with the  surrender of this
      Warrant Certificate (if required), the Holder shall be entitled to receive
      a certificate or certificates for the shares of Common Stock so purchased.
      The Company  shall  deliver  such  certificates  representing  the Warrant
      Shares in accordance  with the  instructions  of the Holder as provided in
      the  Notice of  Exercise  within  three  Trading  Days of the later of the
      Exercise  Date or the date  the  payment  of the  Exercise  Price  for the
      relevant Warrant Shares is received by the Company.

            (d) The  Holder  shall be  deemed  to be the  holder  of the  shares
      issuable to it in  accordance  with the  provisions of this Section 2.1 on
      the Exercise Date.

            2.2 Limitation on Exercise.  Notwithstanding  the provisions of this
      Warrant, the Agreement or of the other Transaction Agreements, in no event
      (except (i) as  specifically  provided in this  Warrant as an exception to
      this  provision,  (ii) during the forty-five  (45) day period prior to the
      Expiration  Date,  or (iii) while there is  outstanding a tender offer for
      any or all of the shares of the  Company's  Common Stock) shall the Holder
      be entitled  to  exercise  this  Warrant,  or shall the  Company  have the
      obligation  to issue  shares  upon such  exercise of all or any portion of
      this  Warrant to the extent that,  after such  exercise the sum of (1) the
      number of shares of Common Stock  beneficially owned by the Holder and its
      affiliates  (other  than  shares  of  Common  Stock  which  may be  deemed
      beneficially owned through the ownership of the unexercised portion of the
      Warrants or other rights to purchase Common Stock or through the ownership
      of the unconverted portion of convertible securities),  and (2) the number
      of shares of Common Stock  issuable upon the exercise of the Warrants with
      respect to which the  determination  of this proviso is being made,  would
      result in  beneficial  ownership by the Holder and its  affiliates of more
      than 4.99% of the  outstanding  shares of Common Stock (after  taking into

<PAGE>

      account  the shares to be issued to the Holder  upon such  exercise).  For
      purposes of the proviso to the immediately preceding sentence,  beneficial
      ownership  shall be  determined  in  accordance  with Section 13(d) of the
      Securities  Exchange Act of 1934,  as amended (the "1934 Act"),  except as
      otherwise  provided in clause (1) of such  sentence.  The  Holder,  by its
      acceptance of this Warrant, further agrees that if the Holder transfers or
      assigns  any  of  the  Warrants  to a  party  who or  which  would  not be
      considered such an affiliate, such assignment shall be made subject to the
      transferee's  or  assignee's   specific  agreement  to  be  bound  by  the
      provisions of this Section 2.2 as if such  transferee or assignee were the
      original Holder hereof.

            2.3 Commencement Date and Expiration Date.

            (a) The term  "Commencement  Date" means the earlier of (i) the date
      which is sixty-five  (65) days after the Issue Date, or (ii) the Effective
      Date.

            (b) The term  "Expiration  Date"  means  [for Class A:  February  9,
      2010.][for  Class B: the date  which is  eighteen  (18)  months  after the
      Effective  Date,  but not  counting for such  purposes  the days,  if any,
      during  which  sale of  Registrable  Securities  was  suspended  after the
      Effective Date.(4)]

      3.  Reservation  of Shares.  The Company  hereby  agrees that at all times
during the term of this  Warrant  there  shall be  reserved  for  issuance  upon
exercise of this Warrant one hundred ten percent (110%) of the Warrant Shares.

      4. Mutilation or Loss of Warrant.  Upon receipt by the Company of evidence
satisfactory  to it of the  loss,  theft,  destruction  or  mutilation  of  this
Warrant,  and (in the case of loss, theft or destruction)  receipt of reasonably
satisfactory indemnification, and (in the case of mutilation) upon surrender and
cancellation of this Warrant, the Company will execute and deliver a new Warrant
of like tenor and date and any such lost, stolen, destroyed or mutilated Warrant
shall thereupon become void.

      5.  Rights of the  Holder.  The Holder  shall not,  by virtue  hereof,  be
entitled to any rights of a stockholder in the Company, either at law or equity,
and the rights of the Holder are limited to those  expressed in this Warrant and
are not enforceable against the Company except to the extent set forth herein.

---------------------------------
4     By way of  illustration:  If the  Effective  Date is June  30,  2005,  the
      initial Class B Expiration  Date would be December 31, 2006. If,  however,
      the sale of  Registrable  Securities  was suspended in the interim for ten
      (10) days,  the  applicable  Class B  Expiration  Date will be January 10,
      2007.  If on January  5,  2007,  the sale of  Registrable  Securities  was
      suspended  again for five (5) days,  the Class B  Expiration  Date will be
      January 15, 2007.

<PAGE>

      6. Protection Against Dilution and Other Adjustments.

            6.1 Adjustment Mechanism.  If an adjustment of the Exercise Price is
      required  pursuant  to this  Section 6, the Holder  shall be  entitled  to
      purchase  such number of shares of Common  Stock as will cause (i) (x) the
      total  number of shares of Common  Stock  Holder is  entitled  to purchase
      pursuant to this Warrant following such adjustment,  multiplied by (y) the
      adjusted  Exercise  Price per  share,  to equal the result of (ii) (x) the
      dollar  amount of the total  number  of shares of Common  Stock  Holder is
      entitled  to  purchase  before  adjustment,  multiplied  by (y) the  total
      Exercise Price before adjustment.5

            6.2 Capital Adjustments. In case of any stock split or reverse stock
      split,   stock   dividend,   reclassification   of   the   Common   Stock,
      recapitalization,  merger or  consolidation  (where the Company is not the
      surviving entity), the provisions of this Section 6 shall be applied as if
      such capital  adjustment event had occurred  immediately prior to the date
      of this Warrant and the original  Exercise Price had been fairly allocated
      to the stock resulting from such capital adjustment; and in other respects
      the  provisions of this Section shall be applied in a fair,  equitable and
      reasonable  manner  so as to give  effect,  as  nearly  as may be,  to the
      purposes hereof. A rights offering to stockholders shall be deemed a stock
      dividend to the extent of the bargain purchase element of the rights.

            6.3  Adjustment  for Spin  Off.  If,  for any  reason,  prior to the
      exercise  of this  Warrant in full,  the  Company  spins off or  otherwise
      divests  itself  of a  material  part of its  business  or  operations  or
      disposes all or of a part of its assets in a transaction  (the "Spin Off")
      in which the Company  does not  receive  compensation  for such  business,
      operations or assets,  but causes  securities of another entity (the "Spin
      Off Securities") to be issued to security holders of the Company, then the
      Company  shall cause (i) to be reserved Spin Off  Securities  equal to the
      number  thereof  which would have been issued to the Holder had all of the
      Holder's  unexercised Warrants outstanding on the record date (the "Record
      Date") for  determining the amount and number of Spin Off Securities to be

---------------------------------
5     Example:  Assume 10,000  shares  remain under  Warrant at original  stated
      Exercise  Price of  US$[Class A - 0.20;  Class B - 0.05].  Total  exercise
      price (clause (y) in text) is (i) 10,000 x (ii) US$[Class A - 0.20;  Class
      B - 0.05],  or US$[Class A - 2,000;  Class B - 500].  Company  effects 2:1
      stock split.  Exercise Price is adjusted to US$[Class A - 0.10;  Class B -
      0.025]. Number of shares covered by Warrant is adjusted to 20,000, because
      (applying  clause (x) in text) (i) 20,000 x (ii) US$[Class A - 0.10; Class
      B - 0.025] = US$[Class A - 2,000; Class B - 500].

<PAGE>

      issued to security  holders of the Company  (the  "Outstanding  Warrants")
      been exercised as of the close of business on the Trading Day  immediately
      before the Record Date (the  "Reserved  Spin Off Shares"),  and (ii) to be
      issued to the  Holder  on the  exercise  of all or any of the  Outstanding
      Warrants,  such amount of the  Reserved  Spin Off Shares  equal to (x) the
      Reserved Spin Off Shares,  multiplied by (y) a fraction,  of which (I) the
      numerator is the amount of the Outstanding  Warrants then being exercised,
      and (II) the denominator is the amount of the Outstanding Warrants.

            6.4  Adjustment for Certain  Transactions.  Reference is made to the
      provisions  of  Section  4(g) of the  Agreement,  the  terms of which  are
      incorporated  herein by  reference.  The number of shares  covered by this
      Warrant  and the  Exercise  Price  shall be  adjusted  as  provided in the
      applicable provisions of said Section 4(g) of the Agreement.

      7. Transfer to Comply with the Securities Act; Registration Rights.

            7.1  Transfer.  This  Warrant  has not  been  registered  under  the
      Securities Act of 1933, as amended, (the "Act") and has been issued to the
      Holder for  investment and not with a view to the  distribution  of either
      the Warrant or the Warrant  Shares.  Neither  this  Warrant nor any of the
      Warrant Shares or any other  security  issued or issuable upon exercise of
      this  Warrant may be sold,  transferred,  pledged or  hypothecated  in the
      absence of an effective  registration  statement under the Act relating to
      such  security or an opinion of counsel  satisfactory  to the Company that
      registration  is not  required  under the Act.  Each  certificate  for the
      Warrant, the Warrant Shares and any other security issued or issuable upon
      exercise of this Warrant shall  contain a legend on the face  thereof,  in
      form and substance satisfactory to counsel for the Company,  setting forth
      the restrictions on transfer contained in this Section.

            7.2 Registration  Rights.  (a) Reference is made to the Registration
      Rights Agreement.  The Company's obligations under the Registration Rights
      Agreement and the other terms and  conditions  thereof with respect to the
      Warrant Shares,  including,  but not necessarily limited to, the Company's
      commitment to file a registration  statement including the Warrant Shares,
      to have the  registration  of the Warrant Shares  completed and effective,
      and to maintain such registration, are incorporated herein by reference.

            (b)  In  addition  to the  registration  rights  referred  to in the
      preceding provisions of Section 7.2(a),  effective after the expiration of
      the  effectiveness  of the  Registration  Statement as contemplated by the
      Registration   Rights   Agreement,   the  Holder  shall  have   piggy-back
      registration  rights with  respect to the Warrant  Shares then held by the
      Holder  or  then  subject  to  issuance  upon  exercise  of  this  Warrant
      (collectively,  the "Remaining Warrant Shares"), subject to the conditions
      set forth  below.  If, at any time after the  Registration  Statement  has
      ceased to be effective,  the Company participates  (whether voluntarily or
      by reason of an  obligation to a third party) in the  registration  of any
      shares of the Company's stock (other than a registration on Form S-8 or on
      Form S-4), the Company shall give written notice thereof to the Holder and
      the Holder shall have the right, exercisable within ten (10) business days
      after receipt of such notice,  to demand  inclusion of all or a portion of
      the Holder's Remaining Warrant Shares in such registration  statement.  If
      the Holder  exercises  such  election,  the  Remaining  Warrant  Shares so

<PAGE>

      designated shall be included in the  registration  statement at no cost or
      expense to the Holder (other than any costs or commissions  which would be
      borne by the Holder under the terms of the Registration Rights Agreement).
      The Holder's  rights under this Section 7 shall expire at such time as the
      Holder can sell all of the Remaining Warrant Shares under Rule 144 without
      volume or other restrictions or limit.

      8. Buy-In Amount.

            (a) If, by the relevant  Warrant Share  Delivery  Date,  the Company
      fails for any reason to deliver the relevant  Warrant Share  Certificates,
      and after such Warrant Share  Delivery  Date, the Holder who has exercised
      this Warrant (an "Exercising  Holder") purchases,  in an arm's-length open
      market  transaction  or otherwise,  shares of Common Stock (the  "Covering
      Shares")  in order to make  delivery in  satisfaction  of a sale of Common
      Stock by the Exercising  Holder (the "Sold  Shares"),  which delivery such
      Exercising  Holder  anticipated to make using the shares to be issued upon
      such exercise (a "Buy-In"),  the Exercising Holder shall have the right to
      require the Company to pay to the  Exercising  Holder,  in addition to and
      not in lieu of all other amounts  contemplated in other  provisions of the
      Transaction  Agreements,  the Warrant Share Buy-In  Adjustment  Amount (as
      defined below).  The Company shall pay the Warrant Share Buy-In Adjustment
      Amount to the Exercising Holder in immediately available funds immediately
      upon demand by the Exercising Holder.

            (b) The term  "Warrant  Share Buy-In  Adjustment  Amount"  means the
      amount equal to the excess,  if any, of (i) the Exercising  Holder's total
      purchase price (including brokerage commissions,  if any) for the Covering
      Shares over (ii) the net proceeds (after  brokerage  commissions,  if any)
      received by the Exercising Holder from the sale of the Sold Shares. By way
      of illustration and not in limitation of the foregoing,  if the Exercising
      Holder  purchases  shares of Common  Stock having a total  purchase  price
      (including  brokerage  commissions)  of  $11,000  to cover a  Buy-In  with
      respect to shares of Common Stock it sold for net proceeds of $10,000, the
      Warrant Share Buy-In  Adjustment Amount which the Company will be required
      to pay to the Exercising Holder will be $1,000.

      9. Notices.  Any notice required or permitted  hereunder shall be given in
manner provided in the Section headed  "NOTICES" in the Agreement,  the terms of
which are incorporated herein by reference.

      10.  Supplements  and  Amendments;  Whole  Agreement.  This Warrant may be
amended or  supplemented  only by an instrument in writing signed by the parties
hereto.  This Warrant contains the full understanding of the parties hereto with
respect  to  the   subject   matter   hereof  and   thereof  and  there  are  no
representations,  warranties,  agreements or understandings other than expressly
contained herein and therein.

      11. Governing Law.

<PAGE>

            (a) This Warrant  shall be governed by and  construed in  accordance
      with  the  laws of the  State  of New  York  for  contracts  to be  wholly
      performed  in such  state and  without  giving  effect  to the  principles
      thereof  regarding the conflict of laws.  Each of the parties  consents to
      the exclusive jurisdiction of the federal courts whose districts encompass
      any part of the County of New York or the state courts of the State of New
      York  sitting in the  County of New York in  connection  with any  dispute
      arising  under this  Warrant  and hereby  waives,  to the  maximum  extent
      permitted by law, any  objection,  including any objection  based on forum
      non   coveniens,   to  the  bringing  of  any  such   proceeding  in  such
      jurisdictions  or to any  claim  that such  venue of the  suit,  action or
      proceeding  is  improper.  To the extent  determined  by such  court,  the
      Company  shall  reimburse  the  Holder for any  reasonable  legal fees and
      disbursements  incurred by the Holder in  enforcement  of or protection of
      any of its rights under this Warrant. Nothing in this Section shall affect
      or limit any right to serve process in any other manner permitted by law.

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

      12. JURY TRIAL WAIVER.  The Company and the Holder hereby waive a trial by
jury in any action,  proceeding or counterclaim brought by either of the Parties
hereto  against the other in respect of any matter  arising out or in connection
with this Warrant.

      13.  Remedies.  The  Company  stipulates  that the  remedies at law of the
Holder of this Warrant in the event of any default or threatened  default by the
Company  in the  performance  of or  compliance  with  any of the  terms of this
Warrant  are not and  will not be  adequate  and  that,  to the  fullest  extent
permitted by law,  such terms may be  specifically  enforced by a decree for the
specific  performance  of any  agreement  contained  herein or by an  injunction
against a violation of any of the terms hereof or otherwise.

      14.  Counterparts.   This  Warrant  may  be  executed  in  any  number  of
counterparts and each of such  counterparts  shall for all purposes be deemed to
be an original,  and all such counterparts shall together constitute but one and
the same instrument.

                   [Balance of page intentionally left blank]

<PAGE>

      15. Descriptive Headings.  Descriptive headings of the several Sections of
this Warrant are inserted for  convenience  only and shall not control or affect
the meaning or construction of any of the provisions hereof.

      IN WITNESS  WHEREOF,  the parties  hereto have executed this Warrant as of
the _______ day of _____________________________, 200__.

                                  CONSPIRACY ENTERTAINMENT HOLDINGS, INC.

                                  By:
                                  -----------------------------------

                                  -----------------------------------
                                  (Print Name)

                                  -----------------------------------
                                  (Title)

<PAGE>

                          NOTICE OF EXERCISE OF WARRANT

TO:      CONSPIRACY ENTERTAINMENT HOLDINGS, INC.
         612 Santa Monica Boulevard
         Santa Monica, CA 90401
         Attn: CEO                                    VIA FAX:  (310) 260-1450
                                                      ------------------------

      The  undersigned   hereby   irrevocably  elects  to  exercise  the  right,
represented by the Class 2005-__(1) Common Stock Purchase  Warrant,  dated as of
________________,  20___ , to purchase  ___________  shares of the Common Stock,
$.001 par value ("Common Stock"), of CONSPIRACY ENTERTAINMENT HOLDINGS, INC. and
tenders  herewith  payment in  accordance  with  Section 2 of said Common  Stock
Purchase Warrant.

|_|   CASH: US$ _______________ = (Exercise Price x Exercise Shares)

                  Payment is being made by:

                   |_|   enclosed check
                   |_|   wire transfer
                   |_|   other
                               ---------------------------------------

      It is the intention of the Holder to comply with the provisions of Section
2.2 of the Warrant regarding certain limits on the Holder's right to exercise
thereunder. Based on the analysis on the attached Worksheet Schedule, the Holder
believe this exercise complies with the provisions of said Section 2.2.
Nonetheless, to the extent that, pursuant to the exercise effected hereby, the
Holder would have more shares than permitted under said Section, this notice
should be amended and revised, ab initio, to refer to the exercise which would
result in the issuance of shares consistent with such provision. Any exercise
above such amount is hereby deemed void and revoked.

      As contemplated by the Warrant, this Notice of Conversion is being sent by
facsimile to the telecopier number and officer indicated above.

---------------------------------
1     Insert appropriate Class identification: A or B.

<PAGE>

      If this Notice of Exercise represents the full exercise of the outstanding
balance of the Warrant, the Holder either (1) has previously surrendered the
Warrant to the Company or (2) will surrender (or cause to be surrendered) the
Warrant to the Company at the address indicated above by express courier within
five (5) business days after delivery or facsimile transmission of this Notice
of Exercise.

      The certificates representing the Warrant Shares should be transmitted by
the Company to the Holder

         |_|      via express courier, or

         |_|      by electronic transfer

after  receipt  of  this  Notice  of  Exercise  (by  facsimile  transmission  or
otherwise) to:

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

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

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

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

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

Dated:
-------------------------------------

-------------------------------------
[Name of Holder]

By:
-------------------------------------

<PAGE>

                          NOTICE OF EXERCISE OF WARRANT
                               WORKSHEET SCHEDULE

1.  Current Common Stock holdings of Holder and Affiliates
                                                              -----------------

2.  Shares to be issued on current exercise
                                                              -----------------

3.  Other shares to be issued on other current exercise(s)
    and other current conversion(s)(1)
                                                              -----------------

4.  Other shares eligible to be acquired within next 60 days
    without restriction
                                                              -----------------

5.  Total [sum of Lines 1 through 4]
                                                              -----------------

6.  Outstanding shares of Common Stock(2)
                                                              -----------------

7.  Adjustments to Outstanding
                                                              -----------------

    a.  Shares known to Holder as previously issued to
        Holder or others but not included in Line 6
                                                              -----------------

    b.  Shares to be issued per Line(s) 2 and 3
                                                              -----------------

    c.  Total Adjustments [Lines 7a and 7b] 8. Total
        Adjusted Outstanding [Lines 6 plus 7c]
                                                              -----------------

9.  Holder's Percentage [Line 5 divided by Line 8] % [Note:
    Line 9 not to be above 4.99%]
                                                              -----------------

---------------------------------
1   Includes shares issuable on conversion of convertible securities (including
    assumed payment of interest or dividends) or exercise of other rights,
    including other warrants or options

2   Based on latest SEC filing by Company or information provided by executive
    officer of Company, counsel to Company or transfer agentANNEX VIII
                                                                              TO
                                                   SECURITIES PURCHASE AGREEMENT

                           SECURITY INTEREST AGREEMENT

      SECURITY INTEREST AGREEMENT ("Security Interest  Agreement"),  dated as of
January  31,  2005,  by and among the  persons  set forth on  Schedule 1 (each a
"Secured   Party"  and   collectively,   the  "Secured   Parties"),   CONSPIRACY
ENTERTAINMENT  CORPORATION,  a Utah corporation  having its principal  executive
offices at 612 Santa Monica Boulevard,  Santa Monica, CA 90401 (the "Company" or
the "Debtor"), and KRIEGER & PRAGER, LLP, as agent for the Secured. Parties (the
"Agent").

                                    RECITALS

      A. Reference is made to (i) that certain Securities  Purchase Agreement of
even date herewith (the "Securities Purchase Agreement") to which the Debtor and
the Secured Parties are parties, and (ii) the Transaction Agreements, including,
without  limitation,  the  Debentures  and the  Registration  Rights  Agreement.
Capitalized  terms not otherwise defined herein shall have the meanings ascribed
to them in the relevant Transaction Agreements.

      B.  Pursuant  to  the  Transaction  Agreements,  the  Debtor  has  certain
obligations to the Secured Parties (all such  obligations,  the  "Obligations"),
including,  but not limited to, obligations  pursuant to the Securities Purchase
Agreement, the Debentures and the Registration Rights Agreement.

      C. In order to induce  the  Secured  Parties to execute  and  deliver  the
Transaction  Agreements  and to make the  advances  to the  Debtor  contemplated
thereby,  and as  contemplated  by the  Securities  Purchase  Agreement  and the
Debenture,  the  Debtor has  agreed to grant to the  Secured  Parties a security
interest in the  Collateral  (as defined  below) to secure the due and  punctual
fulfillment of the  Obligations.  The Secured  Parties are willing to enter into
the Securities Purchase Agreement and the other Transaction Agreements only upon
receiving the Debtor's execution of this Security Interest Agreement.

      NOW, THEREFORE, in consideration of the premises, the mutual covenants and
conditions contained herein, and for other good and valuable consideration,  the
receipt and  sufficiency  of which are hereby  acknowledged,  the parties hereto
hereby agree as follows:

      Section 1. Grant of Security Interest.

      (a)  In  order  to  secure  the  due  and  punctual   fulfillment  of  the
Obligations,  the Debtor hereby  grants,  conveys,  transfers and assigns to the
Secured  Parties (and to each of them based on the Lender's  Allocable  Share of
such Secured Party) a continuing  security  interest in the following  described
properties,  assets and rights of Debtor, wherever located, whether now owned or

<PAGE>

hereafter  acquired or arising,  and all cash and non-cash proceeds and products
thereof (all of the same hereinafter collectively called the "Collateral"):

      All assets of the Debtor,  including, but not limited to: all personal and
      fixture property of every kind and nature,  including  without  limitation
      all goods  (including  inventory,  equipment and any accessions  thereto),
      instruments (including promissory notes),  documents,  accounts (including
      accounts  receivable),  chattel paper  (whether  tangible or  electronic),
      deposit  accounts,  letter-of-credit  rights (whether or not the letter of
      credit is evidenced by a writing), commercial tort claims (including those
      referenced in Annex V to the Securities  Purchase  Agreement),  securities
      and all  other  investment  property,  supporting  obligations,  any other
      contract  rights or rights to the payment of money,  insurance  claims and
      proceeds, and all general intangibles (including all payment intangibles);
      all Copyrights (as defined below) and any and all royalties,  payments and
      other  amounts  payable  to  Debtor  in  connection  with the  Copyrights,
      together with all renewals and extensions of the Copyrights,  the right to
      recover for all past and future  infringements of the Copyrights,  and all
      manuscripts,  documents,  writings,  tapes, disks, storage media, computer
      programs,  computer  databases,  computer  program flow  diagrams,  source
      codes,  object codes and all tangible property  embodying or incorporating
      the  Copyrights,  and all other rights of every kind  whatsoever  accruing
      thereunder  or  pertaining  thereto;  all of  Debtor's  right,  title  and
      interest  in and to any and all  present  and  future  license  rights  or
      agreements,  with respect to the Copyrights or otherwise;  and all present
      and  future  accounts  and  other  rights  to  payment  arising  from,  in
      connection with or relating to the Copyrights or otherwise.

      "Copyrights"  means any or all of the  following:  all  present and future
      United States registered copyrights and copyright registrations, including
      Debtor's United States registrations and copyright registrations listed in
      Exhibit C to this Security Interest Agreement, all of Debtor's present and
      future United States  applications for copyright  registrations  listed in
      Exhibit D to this Security Interest Agreement, and all of Debtor's present
      and  future  copyrights  that  are not  registered  in the  United  States
      Copyright  Office  ("Copyright  Office"),   including  without  limitation
      derivative works.

      (b)  The  security  interests  granted  pursuant  to this  Section  1 (the
"Security  Interests")  are granted as  security  only and shall not subject the
Secured Party to, or transfer or in any way affect or modify,  any obligation or
liability of the Debtor under any of the  Collateral  or any  transaction  which
gave rise thereto.

      Section 2. Filing; Further Assurances.

      (a) The Debtor  will,  at its  expense,  cause to be  searched  the public
records with  respect to the  Collateral  and will  execute,  deliver,  file and
record (in such manner and form as the Secured Party may require), or permit the
Secured  Party to file and  record,  as its  attorney  in  fact,  any  financing

                                       2
<PAGE>

statements,  any  carbon,  photographic  or other  reproduction  of a  financing
statement or this Security  Agreement  (which shall be sufficient as a financing
statement  hereunder),  any  specific  assignments  or other  paper  that may be
reasonably  necessary or desirable,  or that the Secured  Party may request,  in
order to create,  preserve,  perfect or  validate  any  Security  Interest or to
enable the Secured  Party to exercise  and  enforce  its rights  hereunder  with
respect to any of the Collateral.  The Debtor hereby  appoints  Secured Party as
Debtor's  attorney-in-fact  to  execute  in the name and  behalf of Debtor  such
additional financing statements as Secured Party may request.

      (b) Each Secured  Party has  designated an Agent as provided in Section 13
hereof.  Among other things,  such Agent shall be agent of the Secured Party for
execution of and identification on any financing statement or similar instrument
referring to or describing the Collateral.

      (c) The Agent is  authorized  to  execute  and file any and all  financing
statements  desired to be filed by the Secured  Parties to reflect the  security
interest in the Collateral in any and all jurisdictions.  For such purposes, the
Debtor  irrevocably  appoints  the Agent  (acting by Samuel M. Krieger or Ronald
Nussbaum, or either one of them), with full power of substitution to execute and
file such financing statements naming the Debtor as debtor thereon.

      Section 3.  Representations  and  Warranties of Debtor.  The Debtor hereby
represents  and warrants to the Secured  Party (a) that,  except as set forth in
Exhibit A attached  hereto,  the Debtor is, or to the extent that certain of the
Collateral  is to be acquired  after the date hereof,  will be, the owner of the
Collateral free from any adverse lien,  security  interest or  encumbrance;  (b)
that  except for such  financing  statements  as may be  described  on Exhibit A
attached  hereto and made a part  hereof,  no financing  statement  covering the
Collateral is on file in any public office,  other than the financing statements
filed  pursuant  to  this  Security  Agreement;  and  (c)  that  all  additional
information,  representations  and  warranties  contained  in Exhibit B attached
hereto  and made a part  hereof  are true,  accurate  and  complete  on the date
hereof.

      Section 4.  Covenants of Debtor.  The Debtor  hereby  covenants and agrees
with the Secured  Party that the Debtor (a) will,  at the Debtor's sole cost and
expense,  defend the Collateral against all claims and demands of all persons at
any time claiming any interest  therein junior to the Secured Party's  interest;
(b) will provide the Secured Party with prompt  written notice of (i) any change
in the chief  executive  officer of the  Debtor or the  office  where the Debtor
maintains its books and records pertaining to the Collateral;  (ii) the movement
or location  of all or a material  part of the  Collateral  to or at any address
other than as set forth in said Exhibit B; and (iii) any facts which  constitute
a Debtor Event of Default (as such term is defined  below),  or which,  with the
giving of notice and/or the passage of time,  could or would constitute a Debtor
Event of Default, pursuant to Section 7 below; (c) will promptly pay any and all
taxes,  assessments and  governmental  charges upon the Collateral  prior to the
date  penalties  are  attached  thereto,  except to the extent  that such taxes,
assessments and charges shall be contested in good faith by the Debtor; (d) will
immediately  notify the Secured Party of any event causing a substantial loss or
diminution  in the value of all or any material part of the  Collateral  and the
amount or an  estimate of the amount of such loss or  diminution;  (e) will have
and maintain adequate insurance at all times with respect to the Collateral, for

                                       3
<PAGE>

such other risks as are  customary in the Debtor's  industry for the  respective
items  included in the  Collateral,  such insurance to be payable to the Secured
Party and the Debtor as their respective interests may appear, and shall provide
for a minimum  of ten (10) days  prior  written  notice of  cancellation  to the
Secured Party,  and Debtor shall furnish the Secured Party with  certificates or
other  evidence  satisfactory  to the  Secured  Party  of  compliance  with  the
foregoing insurance provisions;  (f) will not sell or offer to sell or otherwise
assign,  transfer or dispose of the Collateral or any interest therein,  without
the prior written consent of the Secured Party, except in the ordinary course of
business;  (g) will keep the  Collateral  free from any adverse  lien,  security
interest or encumbrance (except for encumbrances specified in Exhibit A attached
hereto) and in good order and repair,  reasonable  wear and tear  excepted,  and
will not waste or destroy the  Collateral or any part thereof;  and (h) will not
use the  Collateral  in  material  violation  of any  statute or  ordinance  the
violation of which could materially and adversely affect the Debtor's business.

      Section 5.  Records  Relating  To  Collateral.  The  Debtor  will keep its
records  concerning the  Collateral at its offices  designated in the caption of
this Security Interest Agreement or at such other place or places of business of
which the  Secured  Party  shall have been  notified in writing no less than ten
(10) days prior  thereto.  The Debtor will hold and  preserve  such  records and
chattel paper and will permit  representatives  of the Secured Party at any time
during normal business hours upon  reasonable  notice to examine and inspect the
Collateral and to make  abstracts from such records and chattel paper,  and will
furnish  to the  Secured  Party  such  information  and  reports  regarding  the
Collateral as the Secured Party may from time to time reasonably request.

      Section 6. General Authority. From and during the term of any Debtor Event
of Default,  the Debtor hereby  appoints the Secured  Party the Debtor's  lawful
attorney,  with full power of substitution,  in the name of the Debtor,  for the
sole use and benefit of the  Secured  Party,  but at the  Debtor's  expense,  to
exercise,  all or any of the following  powers with respect to all or any of the
Collateral:

      (a) to demand, sue for, collect,  receive and give acquittance for any and
all monies due or to become due;

      (b) to receive,  take,  endorse,  assign and  deliver  all checks,  notes,
drafts,  documents and other  negotiable  and non-  negotiable  instruments  and
chattel paper taken or received by the Secured Party;

      (c) to settle,  compromise,  prosecute or defend any action or  proceeding
with respect thereto;

      (d) to sell, transfer, assign or otherwise deal in or with the same or the
proceeds  thereof or the related  goods  securing the  Collateral,  as fully and
effectually as if the Secured Party were the sole and absolute owner thereof;

      (e) to extend the time of payment  of any or all  thereof  and to make any
allowance and other adjustments with reference thereto; and

                                       4

<PAGE>

      (f)  to  discharge  any  taxes,   liens,   security   interests  or  other
encumbrances at any time placed thereon;

provided  that the  Secured  Party  shall give the Debtor not less than ten (10)
business  days prior  written  notice of the time and place of any sale or other
intended disposition of any of the Collateral.

      The exercise by Secured  Party of or failure to so exercise any  authority
granted  herein shall in no manner affect  Debtor's  liability to Secured Party,
and provided,  further,  that Secured Party shall be under no obligation or duty
to  exercise  any of the  powers  hereby  conferred  upon them and they shall be
without  liability  for  any  act  or  failure  to act in  connection  with  the
collection of, or the preservation of, any rights under any of the Collateral.

      Section 7. Debtor Events of Default.  The Debtor shall be in default under
this Security  Agreement upon the  occurrence of any of the following  events (a
"Debtor Event of Default"):

      (i)   if any  representation  or  warranty  made  by the  Debtor  in  this
            Security Interest Agreement, in the Securities Purchase Agreement or
            in any  of the  other  Transaction  Agreements  shall  be  false  or
            misleading in any material respect; or

      (ii)  the  occurrence of an Event of Default (as defined in the Debenture)
            by the Debtor.

      Section 8. Remedies  Upon Debtor Event of Default.  If any Debtor Event of
Default shall have  occurred,  the Secured Party may exercise all the rights and
remedies of a Secured Party under the Uniform Commercial Code. The Secured Party
may require the Debtor to assemble all or any part of the Collateral and make it
available to the Secured  Party at a place to be designated by the Secured Party
which is reasonably convenient. The Secured Party shall give the Debtor ten (10)
business days prior written notice of the Secured Party's  intention to make any
public or private sale or sale at a broker's  board or on a securities  exchange
of the Collateral.  At any such sale the Collateral may be sold in one lot as an
entirety or in separate  parcels,  as the Secured Party, in its sole discretion,
may  determine.  The Secured  Party shall not be obligated to make any such sale
pursuant  to  any  such  notice.  The  Secured  Party  may,  without  notice  or
publication,  adjourn  any  public  or  private  sale or  cause  the  same to be
adjourned from time to time by  announcement at the time and place fixed for the
sale,  and such  sale may be made at any time or place to which  the same may be
adjourned.  The Secured  Party,  instead of exercising  the power of sale herein
conferred  upon  it,  may  proceed  by a suit or suits  at law or in  equity  to
foreclose  the  Security  Interests  and sell  the  Collateral,  or any  portion
thereof,  under  a  judgment  or  decree  of a  court  or  courts  of  competent
jurisdiction.

      Section 9.  Application  of Collateral  and Proceeds.  The proceeds of any
sale of, or other  realization  upon, all or any part of the Collateral shall be
applied in the following  order of priorities:  (a) first, to pay the reasonable
expenses  of such  sale or other  realization,  including,  without  limitation,
reasonable   attorneys'  fees,  and  all  expenses,   liabilities  and  advances
reasonably  incurred or made by the Secured Party in connection  therewith,  and

                                       5

any other unreimbursed  expenses for which the Secured Party is to be reimbursed
pursuant to Section 10; (b) second,  to the payment of the  Obligations  in such
order of priority as the Secured Party, in its sole discretion, shall determine;
and (c) finally,  to pay to the Debtor,  or its  successors or assigns,  or as a
court of competent jurisdiction may direct, any surplus then remaining from such
proceeds.

      Section 10. Expenses; Secured Party's Lien. The Debtor will forthwith upon
demand pay to the Secured  Party:  (a) the amount of any taxes which the Secured
Party  may  have  been  required  to pay by  reason  of the  Security  Interests
(including, without limitation, any applicable transfer taxes) or to free any of
the  Collateral  from  any  lien  thereon;  and  (b) the  amount  of any and all
reasonable out-of-pocket expenses, including, without limitation, the reasonable
fees and  disbursements  of its counsel,  and of any agents not regularly in its
employ, which the Secured Party may incur in connection with (i) the preparation
of any  amendments  or  modifications  of  this  Security  Agreement,  (ii)  the
collection,  sale or  other  disposition  of any of the  Collateral;  (iii)  the
exercise by the Secured Party of any of the powers  conferred upon it hereunder,
or (iv) any default by the Debtor hereunder.

      Section 11. Termination of Security Interests; Release of Collateral. Upon
the  payment  and  performance  in  full of all the  Obligations,  the  Security
Interests shall  terminate and all rights to the Collateral  shall revert to the
Debtor.  Upon any such  termination  of the  Security  Interests  or  release of
Collateral,  the Secured  Party will,  at the  Debtor's  expense,  to the extent
permitted by law, execute and deliver to the Debtor such documents as the Debtor
shall reasonably  request to evidence the termination of the Security  Interests
or the  release  of such  Collateral,  as the case may be.  The  Debtor  further
covenants and agrees that it will not grant any other security interest or other
lien or rights in the  Collateral  (however  denominated)  as long as any of the
Obligations remains outstanding.

<PAGE>

      Section 12. Notices. All notices, demands, requests, consents,  approvals,
and other  communications  required or permitted  hereunder  shall be in writing
and, unless otherwise  specified  herein,  shall be (a) personally  served,  (b)
deposited  in the mail,  registered  or  certified,  return  receipt  requested,
postage  prepaid,  (c) delivered by reputable  air courier  service with charges
prepaid, or (d) transmitted by hand delivery, telegram, or facsimile,  addressed
as set forth below or to such other  address as such party shall have  specified
most  recently by written  notice given in  accordance  herewith.  Any notice or
other communication  required or permitted to be given hereunder shall be deemed
effective  (i) upon hand  delivery  or  delivery  by  facsimile,  with  accurate
confirmation  generated by the transmitting facsimile machine, at the address or
number  designated  below (if delivered on a business day during normal business
hours where such notice is to be received),  or the first business day following
such delivery (if delivered  other than on a business day during normal business
hours where such notice is to be  received)  or (ii) on the second  business day
following  the date of  mailing  by  express  courier  service  or on the  fifth
business day after deposited in the mail, in each case, fully prepaid, addressed
to such address,  or upon actual receipt of such mailing,  whichever shall first
occur.  The  addresses  for such  communications  shall be for (i) the Debtor as
provided in the Securities  Purchase Agreement for notices to the Company,  (ii)
for each Secured  Party as provided in the  Securities  Purchase  Agreement  for
notices  to the  relevant  Lender  and (iii) for the  Agent as  provided  in the
Securities  Purchase Agreement for notices to the Escrow Agent. Any party hereto

                                       6
<PAGE>

may from time to time change its address or facsimile  number for notices  under
this Section 12 in the manner contemplated by the Securities Purchase Agreement.

      Section 13. Agent.

      (a) Anything in the other provisions of this Security  Interest  Agreement
to the contrary notwithstanding,  the Secured Party may designate another entity
to act as agent (the  "Agent") for the Secured  Party with respect to any one or
more of the rights of Secured Party  hereunder,  including,  but not necessarily
limited to, the right to hold the security  interest  and/or be named as secured
party (as agent for the Secured Party) in any filed  financing  statement and to
take  action  in the  name  and  stead  of the  Secured  Party  hereunder.  Such
designation may be made with or without power of substitution,  Such designation
shall remain in effect until canceled by the Secured Party, as provided  herein;
provided,  however,  that such cancellation shall not affect the validity of any
action  theretofore  taken by such  agent  pursuant  to this  Security  Interest
Agreement.  The Debtor  acknowledges  and agrees to honor such  designation  and
acknowledges  that the Agent is acting as the agent of the Secured Party and not
as a principal.

      (b) Each  Secured  Party  hereby  confirms  that  the  Secured  Party  has
designated  Krieger &  Prager,  LLP  (acting  by  Samuel  M.  Krieger  or Ronald
Nussbaum,  or either  one of them),  as its  initial  Agent,  with full right of
substitution.

      (c) If there is more than one Secured Party,  the Agent shall act as agent
for all Secured  Parties.  Any revocation or  designation of an alternate  Agent
shall be done only by Secured  Parties  who  represent a Majority in Interest of
the Holders at that time.

      (d)  Reference  is  made to the  provisions  of  Sections  2  through  15,
inclusive of the Joint Escrow Instructions. All such provisions are incorporated
herein by  reference  as if set  forth  herein in full,  except  that,  for such
purposes, the references therein to (i) the "Escrow Agent" shall be deemed to be
references  to the "Agent"  under this  Security  Interest  Agreement,  (ii) the
"Company"  shall be deemed to be  references  to the Debtor under this  Security
Interest Agreement,  and (iii) each "Lender" shall be deemed to be references to
each Secured Party under this Security Interest Agreement.

      Section 14. Miscellaneous.

      (a) No failure on the part of the Secured Party to exercise,  and no delay
in  exercising,  and no course of dealing with  respect to, any right,  power or
remedy under this Security Interest Agreement shall operate as a waiver thereof;
nor shall any  single or partial  exercise  by the  Secured  Party of any right,
power or remedy under this Security Interest Agreement preclude the exercise, in
whole or in part,  of any other  right,  power or remedy.  The  remedies in this
Security  Interest  Agreement are  cumulative and are not exclusive of any other
remedies  provided by law.  Neither this  Security  Interest  Agreement  nor any
provision  hereof may be changed,  waived,  discharged or terminated  orally but
only by a statement in writing signed by the party against which  enforcement of
the change, waiver, discharge or termination is sought.

                                       7
<PAGE>

      (b) Unless  otherwise  defined  herein,  or unless the  context  otherwise
requires,  all terms  used  herein  which are  defined  in the New York  Uniform
Commercial Code have the meanings therein stated.

      (c) The  execution  and  delivery  by  Debtor  of this  Security  Interest
Agreement and all documents  delivered in connection herewith have been duly and
validly  authorized  by all  necessary  corporate  action  of  Debtor  and  this
Agreement and all documents  delivered in connection herewith have been duly and
validly  executed and delivered by Debtor.  The execution and delivery by Debtor
of this Security  Interest  Agreement and all documents  delivered in connection
herewith will not result in a breach or default of or under the  Certificate  of
Incorporation,  By-laws or any agreement,  contract or indenture of Debtor. This
Security Interest Agreement and all documents delivered in connection  therewith
are legal, valid and binding obligations of Debtor enforceable against Debtor in
accordance with their terms.

      (e) In the event that any  action is taken by Debtor or  Secured  Party in
connection with the this Security Interest Agreement, or any related document or
matter, the losing party in such legal action, in addition to such other damages
as he or it may be required to pay, shall pay reasonable  attorneys' fees to the
prevailing party.

      Section 15.  Separability.  If any provision hereof shall prove invalid or
unenforceable in any  jurisdiction  whose laws shall be deemed  applicable,  the
other  provisions  hereof  shall  remain  in  full  force  and  effect  in  such
jurisdiction and shall be liberally construed in favor of the Secured Party.

      Section 16. Governing Law.

      (a) This Security Interest Agreement shall be governed by and construed in
accordance  with the laws of the  State of New York for  contracts  to be wholly
performed  in such state and without  giving  effect to the  principles  thereof
regarding  the conflict of laws.  Each of the parties  consents to the exclusive
jurisdiction  of the federal  courts whose  districts  encompass any part of the
County of New York or the state  courts of the State of New York  sitting in the
County of New York in  connection  with any dispute  arising under this Security
Interest  Agreement and hereby waives,  to the maximum extent  permitted by law,
any  objection,  including any objection  based on forum non  coveniens,  to the
bringing of any such proceeding in such  jurisdictions or to any claim that such
venue of the suit, action or proceeding is improper. To the extent determined by
such court,  the Debtor shall  reimburse  the Secured  Party for any  reasonable
legal fees and disbursements  incurred by the Secured Party in enforcement of or
protection of any of its rights under this Security Interest Agreement.  Nothing
in this Section  shall  affect or limit any right to serve  process in any other
manner permitted by law.

      (b)  The  Debtor  and  the  Secured  Party   acknowledge  and  agree  that
irreparable  damage would occur in the event that any of the  provisions of this
Security Interest Agreement were not performed in accordance with their specific
terms or were  otherwise  breached.  It is  accordingly  agreed that the parties
shall be entitled to an injunction or injunctions to prevent or cure breaches of
the provisions of this Security Interest  Agreement and to enforce  specifically

                                       8
<PAGE>

the terms and provisions  hereof,  this being in addition to any other remedy to
which any of them may be entitled by law or equity.

      Section 16. Jury Trial  Waiver.  The Debtor and the Secured  Party  hereby
waive a trial by jury in any  action,  proceeding  or  counterclaim  brought  by
either of the parties  hereto against the other in respect of any matter arising
out of or in connection with the Debenture or this Security Interest Agreement.

      Section 17. Assignment. Only in connection with the transfer of the rights
under the Transaction Agreements in accordance with their terms, a Secured Party
may assign or transfer  the whole or any part of its security  interest  granted
hereunder,  and may  transfer as  collateral  security  the whole or any part of
Secured  Party's  security  interest in the  Collateral.  Any  transferee of the
Collateral  shall be vested  with all of the rights and powers of the  assigning
Secured Party hereunder with respect to the Collateral.

                   [Balance of page intentionally left blank]

                                       9
<PAGE>

      Section  18.  Waiver.  The  Debtor  waives  any right  that it may have to
require Secured Party to proceed against any other person, or proceed against or
exhaust any other security, or pursue any other remedy Secured Party may have.

      IN WITNESS  WHEREOF,  the Parties have  executed  this  Security  Interest
Agreement as of the day, month and year first above written.

      SECURED PARTIES (named in Schedule 1):
      By:  Krieger & Prager LLP, as their agent

      By:
      --------------------------------------------

      DEBTOR:
      CONSPIRACY ENTERTAINMENT CORPORATION

      By:
      --------------------------------------------
                                         President

      AGENT:
      KRIEGER & PRAGER, LLP

      By:
      --------------------------------------------

                                       10

<PAGE>

                                   SCHEDULE 1

The Secured Parties are:

Name                                  Address
------------------------------------- -----------------------------------------
Whalehaven Capital Fund Limited       3rd Floor
                                      14 Par-La-Ville Road
                                      Hamilton HM08 Bermuda
------------------------------------- -----------------------------------------
Stonestreet Limited Partnership       260 Town Centre Blvd, Ste 201
                                      Markham, Ontario L3Y 8H8 Canada
------------------------------------- -----------------------------------------
Alpha Capital AG                      Attn: Konrad Ackerman
                                      Pradafant 7
                                      Furstentums 9490
                                      Vaduz, Liechtenstein
------------------------------------- -----------------------------------------

The "Lender's Allocable Share" of each Secured Party is determined as provided
in the Securities Purchase Agreement.

                                       11

<PAGE>

                                  EXHIBIT A
                          EXCEPTIONS TO REPRESENTATIONS

1.    Pursuant to a Security  Interest  Agreement,  dated as of August 31, 2004,
      and Supplement No. 1 thereto,  dated as of September 28, 2004, the Company
      granted  a  security  interest  (the  "Prior  Security  Interest")  in the
      Collateral  to the Secured  Parties  named  therein  (the  "Prior  Secured
      Parties").(1)

2.    UCC-1 Financing Statements (and amendments  thereto),  naming the Company,
      as  Debtor,  and  Krieger & Prager  LLP,  as Agent  for the Prior  Secured
      Parties,  as Secured Party,  reflecting  the Prior Security  Interest were
      filed with the Secretary of States of California and Utah.

3.    The Prior  Security  Interest  has  priority  over the  security  interest
      granted to the Secured Parties named in the current Security  Agreement to
      which this Exhibit A is attached.

-----------------
1     Krieger & Prager LLP acted as agent for such Secured Parties.

<PAGE>

                                    EXHIBIT B
                   ADDITIONAL INFORMATION RE COLLATERAL, ETC.

CONSPIRACY ENTERTAINMENT HOLDINGS, INC.
612 SANTA MONICA BOULEVARD
SANTA MONICA, CA 90401

<PAGE>

                                    EXHIBIT C
                                   COPYRIGHTS

CONSPIRACY ENTERTAINMENT CORPORATION

<PAGE>

                                    EXHIBIT D
                             COPYRIGHT APPLICATIONS

NONE

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