Document:

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                                                                   Exhibit 10(v)

                           SECOND AMENDED AND RESTATED
                                LICENSE AGREEMENT
                                    (Canada)

         This Second Amended and Restated License Agreement (Canada) (the
"Agreement") is dated to be effective as of May 1, 2001 between TRS Quality,
Inc. ("TRS") and InterTAN Canada Ltd. ("ITC").

         WHEREAS, TRS is a corporation organized under the laws of the State of
Delaware, having its principal place of business in Wilmington, Delaware, and is
a wholly-owned subsidiary of RadioShack Corporation (formerly Tandy Corporation)
("RadioShack").

         WHEREAS, ITC is an entity organized under the laws of the Province of
Alberta, and continued into British Columbia, Canada, having a principal place
of business at 279 Bayview Drive, Barrie, Ontario, Canada, and is a wholly-owned
subsidiary of InterTAN, Inc. ("ITI").

         WHEREAS, TRS has adopted, used, and owns "RADIOSHACK" as a trade name
and service mark in Canada in connection with the operation of retail store
services dealing primarily in consumer electronic products and computers and
distribution of catalogs in Canada; TRS also owns those trademarks identified in
attached Exhibit 1.
         ---------

         WHEREAS, ITC wishes to continue to use "RADIOSHACK" as a trade name and
service mark for the operation of ITC owned (or managed) or ITC franchised
retail stores in Canada dealing primarily in consumer electronic products and
related services including catalog, mail order and repair services in Canada.
ITC also wishes to make or to have made certain products under certain
trademarks identified in Exhibit 1.
                         ---------

         WHEREAS, RadioShack previously assigned to TRS all of its rights, title
and interest to those certain trade names, trademarks and service marks
identified in this Agreement or any exhibit hereto.

         NOW, THEREFORE, it is agreed as follows:

         1. TRS grants an exclusive nonassignable license to ITC, provided ITC
is duly appointed a registered user if so required by applicable law, to use and
to grant sublicenses to others as herein provided, to use "RADIO SHACK" or
"RADIOSHACK" as a trade name and service mark in Canada in connection with the
operation of ITC owned or ITC franchised retail stores dealing primarily in
electronic products and related services including catalog, mail order and
repair services rendered in such stores in Canada, such use being subject to
royalties payable in accordance with Section 5 hereof.

                                       -1-

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         2. TRS grants to ITC a nonexclusive, nonassignable, royalty-free
license under all trademarks owned by TRS and used currently (or formerly) in
the United States by RadioShack, and which are identified in Exhibit 1 attached
                                                             ---------
to this Agreement, for use in Canada in connection with the advertising and sale
of products purchased through RadioShack International Procurement Limited
Partnership (formerly A&A International, Inc.), a wholly owned subsidiary of
RadioShack ("RIPLP"), and on (a) those products on which such trademark is used
currently (or formerly) in the United States by RadioShack which ITC does not
purchase through RIPLP and which, as of the date hereof, ITC makes or has made
for it by anyone other than RadioShack or one of its subsidiaries, all as
identified in Exhibit 2 attached to this Agreement, and which shall be sold only
              ---------
in accordance with the provisions of this Agreement in Canada or (b) such other
products as TRS may approve (collectively, the "Products"). The license granted
under this Section 2 shall be limited to use of the trademarks on and
advertising of the Products. All flyers, catalogs or other printed materials
used to advertise trademarked products must contain a notice identifying by name
the TRS trademarks used therein (as identified in Exhibit 1) and must explicitly
                                                  ---------
state that these trademarks are owned by TRS and are used under license. TRS
agrees that it will be sufficient for such notice to identify TRS trademarks
with an asterisk, together with an explanatory note that the asterisk identifies
a trademark of TRS which is used under license.

         3. The licenses granted in Sections 1 and 2 shall include the right to
grant sublicenses, subject to the terms of this Agreement, only to (a) dealers
for use with ITC dealer programs in Canada and (b) franchisees for use with ITC
franchise programs in Canada, to resell products on which the trademarks are
used. All sublicenses shall conform with the terms of this license and shall be
subject to similar terms and conditions, subject to the last sentence of this
Section 3, as the dealer and franchise agreements heretofore in use by ITC, as
exemplified by the attached Exhibit 3(a) and Exhibit 3(b). Any provisions in any
                            ------------     ------------
agreement pertaining to RadioShack or TRS not in conformity with Exhibit 3(a)
                                                                 ------------
and Exhibit 3(b), and any changes to provisions pertaining to RadioShack or TRS
    ------------
in any previously approved agreements, must be approved in writing by RadioShack
or TRS, as the case may be, prior to use by ITC. No sublicense shall be granted
unless TRS's rights to the trademarks and service marks sublicensed are secured
under applicable law, pursuant to appropriate filings of applications for
registrations and the filing and procuring of appropriate approvals for such use
including, but not limited to, registered user registrations, where applicable.
All dealer and franchise agreements entered into or received after the date
hereof shall disclose that TRS is the owner of the trade name, trademark and
service mark being sublicensed, as well as all trademarks identified in
Exhibit 1, and, to the extent ITC can, shall give TRS the right to inspect the
---------
premises of each dealer,

                                       -2-

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and franchisee to assure the quality of service and merchandise.

         3A. Attached hereto and made a part of this Agreement is Addendum A
                                                                  ----------
which sets forth the terms and conditions relating specifically to the
authorized sublicense from ITC to Chapters Online Inc. regarding certain
intellectual property rights owned by TRS.

         3B. Attached hereto and made a part of this Agreement is Addendum B
                                                                  ----------
which sets forth the terms and conditions relating specifically to the
authorized sublicense from ITC to AOL Canada regarding certain intellectual
property rights owned by TRS.

             4.   (a)  The term of this Agreement shall be from May 1, 2001 to
June 30, 2010.

Either party may terminate this Agreement at any time without cause during the
term by providing the other party five (5) years prior written notice of
termination. Such termination shall be effective on June 30 next following the
expiration of five (5) years from the date appearing on the written notice of
termination. Any and all of the foregoing notwithstanding, this Agreement shall
automatically terminate on the termination of the Second Amended and Restated
Merchandise Agreement (herein so called) among, RadioShack, RIPLP, ITI and ITC,
dated effective as of May 1, 2001. On or before June 30, 2005, the parties agree
to discuss further extension of this Agreement, however, such discussions shall
not imply any duty whatsoever on the part of TRS to do anything beyond
discussing the matter.

         (b) Any extensions of the licenses herein granted beyond the terms set
forth in Section 4(a) of this Agreement shall be at the sole discretion of TRS.
It is hereby agreed that any such extensions that are granted by TRS will
include payment of royalties from ITC to TRS at a rate which shall be negotiated
and agreed by the parties in good faith prior to any such extension.

         (c) TRS may permit other uses by ITC of the above-licensed trade name,
service mark and trademark (e.g., use of trade name and service mark on the
Internet), such use being subject to (i) whatever rules, regulations,
procedures, conditions and restrictions as TRS may impose upon ITC, and (ii)
royalties payable in accordance with paragraph 5 hereof.

         5.  (a) During the term of this Agreement (including any "run-off"
period as contemplated in Sections 7 and 14 below), ITC shall pay to TRS a
royalty on Gross Revenue derived from all retail stores or other facilities of
any kind or nature using or deriving benefit directly or indirectly from the use
of service marks or trade names licensed under Section 1 hereof. Such royalty
shall be calculated, on a consolidated basis with the other members of the
ITI-Group, and paid by ITC, in U.S. dollars to TRS in Fort Worth, Texas, U.S.A.
concurrently with the

                                       -3-

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submission of the Royalty and Sales Report specified in Section 5(c) at the
following rates:

                    (i)  On ITI-Group Gross Revenue (excluding income from
Services) derived from sales of product purchased through RIPLP ("RIPLP-sourced
Products") the rate shall be determined as follows:

                SCHEDULE OF ROYALTIES FOR RIPLP-SOURCED PRODUCTS
                ------------------------------------------------
           Percent of ITI-Group Gross Revenue            ITI-Group
               (excluding income from services)      Royalty Percentage
                 From RIPLP-sourced Products

                    46.9% or less                           1.00%
                    47.0% - 51.9%                           0.80%
                    52.0% - 56.9%                           0.60%
                    57.0% - 61.9%                           0.45%
                    62% or greater                          0.35%

By September 30 of each year ITC and the ITI-Group shall calculate its
consolidated revenue from sales of RIPLP-sourced Products (excluding income from
services) for the most recently completed fiscal year ended June 30 and its
total Gross Revenue (both excluding income from services and including income
from services) from sales of all products and services for the most recently
completed fiscal year ended June 30. The percentage of Gross Revenue represented
by sales of RIPLP-sourced Products will be calculated by dividing the total
Gross Revenue from sales of RIPLP-sourced Products (excluding income from
services) by the total Gross Revenue from sales of all Products. The resulting
percentage of Gross Revenue from RIPLP-sourced Products will be compared to the
percentages listed in the column entitled "Percent of ITI-Group Gross Revenue
from RIPLP-sourced Products (excluding income from services)" in the Schedule of
                                                                     -----------
Royalties for RIPLP-sourced Products set out above in order to determine the
------------------------------------
Royalty Percentage applicable to Gross Revenue from sales of RIPLP-sourced
                                                             -----
Products (excluding income from services) for the then-current fiscal year.

EXAMPLE:

FY 2000         Total Gross Revenue
                (excluding income from services) = 100
FY 2000         Gross Revenue (excluding income
                from services) from RIPLP-sourced Products =  50

50 / 100 = 50% of Gross Revenue of ITI-Group as a whole (excluding income from
services) are from sales of RIPLP-sourced Products.

                    If 50% is compared to the first column of the Schedule of
                                                                  -----------
Royalties for RIPLP-sourced Products, then for FY 2000, the Royalty Percentage
------------------------------------
is 0.80% on revenue from RIPLP-

                                       -4-

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sourced Products (excluding income from services), to be calculated and paid in
accordance with this Section 5(a) and Section 5(c) below.

                    (ii) On Gross Revenue derived from any and all other sources
(including income from services), the rate shall be 1.00% of such Gross Revenue.

                    Except where expressly stated otherwise, "Gross Revenue" as
used herein shall mean all revenue of the ITI-Group derived from the sale or
lease of products, and the rendering of services, minus any returns or
allowances.

               (b)  In the event of the sale or distribution at a special price,
directly or indirectly, to itself including without limitation any subsidiary of
ITC, or to any person, firm, or corporation related in any manner to ITC or its
officers, directors, or major stockholders, ITC shall pay a royalty with respect
to such sales or distribution based upon the price generally charged to a third
party by ITC in an arm's length transaction. It is hereby expressly understood,
however, that in the event any products are sold by ITC to a subsidiary or
division of ITC, or to another member of the ITI-Group, for the purpose of
resale by such subsidiary, division, or ITI-Group company, then in that event
the sale between ITC and such subsidiary, division or ITI-Group company, shall
not be included in the calculation of Gross Revenue.

               (c)  On or before the 30th day following the close of each
calendar quarter during the term of this Agreement, ITC and the ITI-Group shall
furnish to TRS a complete and accurate report, certified to be accurate by an
officer of ITI. Such report shall show ITI-Group consolidated figures on the
following: gross sales, itemized discounts and allowances deducted from gross
sales price, and returns of all products and services sold during the preceding
calendar quarter (all in U.S. dollars calculated using the average exchange rate
for such quarter) for each of Sections 5.(a)(i) and 5.(a)(ii). Each such report
is to be accompanied by payment in full by ITC of its portion of the amount of
royalties due. Receipt or acceptance by TRS of any report furnished pursuant to
this Agreement, or of any sums paid hereunder shall not preclude TRS from
questioning the correctness thereof at any time. In the event that any
inconsistencies or mistakes are discovered in such reports or payments, they
shall be rectified immediately and the appropriate payment made by ITC or
refunded to ITC by TRS, as the case may be, within 30 days of discovery.

               (d)  ITC shall keep, maintain and preserve in ITC's principal
place of business for at least two (2) years following termination or expiration
of the term of this Agreement, or any renewals hereof, complete and accurate
records of accounts including without limitation invoices, production and
receiving

                                       -5-

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records, correspondence, banking and financial and other records pertaining to
the various items required to be shown on the reports to be submitted by ITC.
Such records and accounts shall be available for inspection and/or audit at any
time or times during or after the term of this Agreement during usual business
hours and upon reasonable request by TRS or its nominees. ITC agrees not to
cause or permit any interference with TRS or its nominees in the performance of
their duties of inspection and/or audit.

               (e) If any such inspection and/or audit shows that the amount of
royalties paid by ITC to TRS during the time period covered by such inspection
and/or audit is less than the actual royalties that should have been paid by ITC
by more than five percent (5%) of the amount actually paid to TRS, then the
reasonable cost of such inspection and/or audit shall be paid for by ITC.

               (f) The exercise by TRS in whole or in part, at any time or
times, of the right to inspect or audit records and accounts, or of any other
right herein granted, or the acceptance by TRS of any report, or the receipt or
deposit by TRS of any payment from ITC shall be without prejudice to any other
rights or remedies of TRS and shall not stop or prevent TRS from thereafter
disputing the accuracy of any such report or payment.

         6.    [RESERVED]

         7.    On termination of the licenses to one or more trade names,
trademarks or service marks granted under Sections 1 and 2, ITC shall, within
six months or such lesser period of time as is practical, cease all use of such
trade names, trademarks and service marks so licensed and shall cause all those
in privity with it to similarly terminate such use. ITC shall also sign or have
signed such documents as may be necessary to formally terminate such use, vest
in TRS all goodwill associated with such trade names, trademarks and service
marks for which use has terminated, and to cancel any registered user
registrations which may then be in effect or to otherwise rectify the applicable
government records to the extent as may be required by law or by TRS.

         8.    All products made or services offered for sale under the licenses
to one or more trade names, trademarks or service marks granted under Sections 1
or 2 shall be sold by ITC (a) at retail in Canada through retail stores owned,
managed, or franchised by ITC, or through duly appointed dealers for use with
dealer programs, or through franchisees for use with franchise programs, or (b)
in such other manner as permitted by TRS.

         9.    (a)   The licenses granted  hereunder may be terminated by TRS on
written notice in the event of the occurrence of any of the following events of
default:

                                       -6-

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               (i)   ITC materially breaches this Agreement or fails to
diligently enforce the obligations of dealers and franchisees under sublicenses
and when permitted by law, after a request by TRS, terminate such sublicenses
when compliance by dealers and franchisees with their obligations related
thereto is not seasonably made;

               (ii)  ITC fails to make payments of sums that may become due
hereunder, or under royalty bearing extensions as provided under Section 4;

               (iii) ITC fails to perform any other obligation under this
Agreement;

               (iv)  an event of default occurs under the Second Amended and
Restated Merchandise Agreement;

               (v)   any member of the ITI-Group defaults on any agreement,
including lease agreements, to which any member of the ITI-Group and RadioShack,
or any of its affiliates, are parties or are in privity with third parties; or

               (vi)  there is a change of control of ITC or ITI (which entities,
together with their subsidiaries, comprise and are referred to collectively
herein as the "ITI-Group").

         For purposes of this Section 9, a "change of control" means:

         (A) The acquisition by any person, corporation, partnership,
association, joint stock company, trust, unincorporated organization, or
government, including a political subdivision thereof, (or any combination
thereof acting for the purpose of acquiring, holding, voting, or disposing of
equity securities of ITI) of the beneficial ownership of at least twenty percent
(20%) of the then issued and outstanding shares of capital stock of ITI carrying
voting rights in all circumstances;

         (B) The acquisition of ITC by any person, corporation, partnership,
association, joint stock company, trust, unincorporated organization, or
government, including a political subdivision thereof, (or any combination
thereof acting for the purpose of acquiring, holding, voting, or disposing of
equity securities of ITC) unless, as the result of such acquisition, not more
than twenty percent (20%) of the then issued and outstanding capital stock of
ITC carrying voting rights in all circumstances is acquired by persons other
than ITI;

         (C) ITI or ITC merges or amalgamates with one or more other
corporations unless, as a result of such merger or amalgamation, not more than
twenty percent (20%) of the issued and outstanding shares in the capital stock
of the merged or amalgamated

                                       -7-

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corporation carrying voting rights in all circumstances are held by persons
other than ITI or ITI's shareholders as existing before the merger or
amalgamation;

     (D) A change in the composition of the Board of Directors of ITI or ITC
that results in, on any day, a Board of Directors more than fifty percent (50%)
of the members of which (excluding those members elected or appointed to replace
deceased Directors or replacing any executive officer of ITI or ITC who was a
Director on or prior to May 1, 2001) were not members of the Board of Directors
two (2) years prior to such date; or

     (E) Substantially all the assets of ITI or ITC are sold.

         (b) ITC shall have the right to cure certain events of default as
follows:

             (i)   in the event of the occurrence of an event of default under
Section 9(a)(i) through 9(a)(iii) above, the ITI-Group shall have the right to
cure such event of default within thirty (30) days from and after the date of
written notice by TRS of such event of default; provided, however, that the
right to cure any such event of default shall be limited and shall not exceed a
total of three times during each fiscal year on defaults under 9(a)(i) and
9(a)(iii) and payment defaults under 9(a)(ii) on monthly amounts due; or once
each fiscal year on payment defaults under 9(a)(ii) on quarterly amounts due;

             (ii)  in the event of the occurrence of an event of default under
the provisions of paragraph 9(a)(iv) above, ITC shall have the right to cure
such event of default in accordance with the provisions of the Second Amended
and Restated Merchandise Agreement;

             (iii) in the event of the occurrence of an event of default under
paragraph 9(a)(v) above, ITC shall have the right to cure such event of default
in accordance with the provisions, if any, relating to the cure of an event of
default contained in any agreement included within the scope of the provisions
of such paragraph.

         (c) ITC shall not have the right to cure an event of default resulting
from a "change of control" of ITI or ITC, as described in paragraph 9(a)(vi)
above.

     9.1 In the event any entity of the ITI-Group: (a) becomes insolvent,
(b) initiates or otherwise becomes the subject of a bankruptcy or liquidation
proceeding, or (c) enters into an arrangement for the benefit of creditors, TRS
may, on written notice and at its option, terminate or partially terminate or
make non-exclusive the licenses herein granted.

                                       -8-

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         10.   Nothing in the licenses herein granted shall vest in ITC or any
party operating under a sublicense from ITC any title or ownership rights in any
trade name, trademark or service mark owned by TRS, or any goodwill appurtenant
thereto. Except to the extent as may be required by law to register "RADIO
SHACK" or "RADIOSHACK" as a trade name used by ITC, ITC expressly agrees not to
register in any commercial register a trade name that includes "RADIO SHACK" or
"RADIOSHACK" as a part thereof for operation of its business or the business of
a subsidiary or affiliate nor to permit a dealer, export dealer, or franchisee
to do the same without the written authorization of TRS. In the event that
"RADIO SHACK" or "RADIOSHACK" is registered as a trade name hereunder, ITC shall
promptly on termination of the licenses herein granted or on termination of use
of "RADIO SHACK" or "RADIOSHACK" as a trade name, whichever is first, cancel
such registration. In the event such registration is not promptly canceled by
ITC hereunder, ITC does hereby give TRS the full right and authority and power
of attorney to take such steps as may be required to cancel said registration.

         11.   ITC agrees to execute such additional documents and agreements as
may be reasonably necessary to maintain in TRS all rights, title, and interest
in and to all trade names, trademarks and service marks currently owned by TRS
and licensed hereunder, and further, to execute such additional documents and
filings including but not limited to registered user agreements, applications
and affidavits that are reasonably necessary to effect the terms and purposes of
this license.

         12.   ITC agrees not to (a) infringe upon any trade name, trademark or
service mark herein licensed; (b) use without the consent of TRS any trade name,
trademark or service mark that is a colorable imitation of or is likely to be
confused with any trade name, trademark or service mark licensed hereunder; (c)
use or permit the use of any trade name, trademark or service mark licensed
hereunder except in accordance with the terms of this license or as expressly
authorized pursuant to modifications or extensions agreed to in writing by TRS;
(d) register under the trademark laws or service mark laws of any government in
its own name or the name of a controlled entity or an entity in privity with it
any trademark or service mark licensed hereunder unless so authorized in writing
by TRS; (e) use or permit a controlled company or those in privity with it to
use or register with any governmental agency as part of the name of an entity,
domestic or foreign, any trademark or service mark herein licensed, (f) commit
any act of passing off which is likely to damage TRS or to dilute the value of
any trade name, trademark, service mark or goodwill of TRS and (g) sell products
bearing the trademarks herein licensed except for products obtained through
RIPLP or its designated and approved sources until duly appointed as a
registered user, if such registration is required by law.

                                       -9-

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         13. As used in this Agreement, the words, trade name, trademark,
service mark and plurals thereof shall have meanings normally attributed to them
under the laws of the United States.

         14. ITC agrees that after a period of six months or such lesser period
of time as is practical following the termination or expiration of the licenses
herein granted, it will not directly or indirectly own or operate in Canada
retail facilities under, or use or advertise, any trade name, trademark or
service mark which comprises or includes "RADIO SHACK", "RADIOSHACK", "THE
SHACK", "SHACK", "TANDY", "TANDY ELECTRONICS" or any other mark used or owned by
TRS or any colorable imitations thereof without the express written permission
of TRS.

         15. ITC agrees that products sold under any trademark licensed
hereunder and all packaging materials therefore shall be of first-class
merchantable quality, manufactured in accordance with first-class quality
standards prevailing in the industry and consistent with those maintained by
RadioShack in connection with comparable products. ITC further agrees that all
products sold under any trademark herein licensed shall be made, sold, and
advertised in conformity with all applicable laws, rules, regulations, and
insurance requirements for the country in which such products are made and sold.

         16. (a) ITC shall, on reasonable request from TRS, make available to
TRS samples of products which are being sold under any trademark licensed
pursuant to this Agreement together with packaging, promotional and advertising
material. TRS shall have the right to make a reasonable determination that such
products, packaging, promotional and/or the advertising material conform with
standards of quality as herein required. In the event that TRS determines that
the standards of quality have not been maintained, it shall notify ITC in
writing and ITC shall within 30 days of notification correct the items which do
not conform to the standards of quality, in accordance with the reasonable
requests of TRS. In the event that the necessary corrections to such
nonconforming items cannot be effected within the 30-day period, ITC shall
refrain from further manufacture, shipping and/or sale of such nonconforming
items until appropriate compliance with this provision can be effected. Failure
to comply with standards of quality as herein set forth shall be deemed a
material breach of this Agreement.

         (b) i. No less than 60 calendar days prior to production of any
Products to be sold under any trademark licensed pursuant to Section 2, ITC
shall submit to TRS specification sheets on and samples of such Products
together with packaging, promotional and advertising material ITC intends to use
in connection with such Products.

             ii.  In the event that ITC is planning to source Products with a
unit cost of goods to ITC of less than US$20.00

                                       -10-

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to be manufactured in non-Far East countries ("Locally Sourced Products"), then
all time periods specified in Section 16.(b)i. shall be decreased to fifteen
(15) calendar days after receipt by TRS of the material required by such Section
16.(b)i., and, subject to Section 16.(a) and for the purposes of Section
16.(b)ii. only, in the absence of TRS's written response to ITC within said 15
day period, ITC may proceed with production of such Locally Sourced Products.
TRS may, but is not obligated to, authorize ITC to inspect and test Locally
Sourced Products in strict compliance with standards, methods and procedures
provided in writing to ITC by TRS, and, in that event, ITC will allow TRS access
to its testing facilities at any time during normal business hours without
notice for the purpose of verifying such compliance. All of TRS's travel costs
associated with such verification shall be borne by TRS. TRS may in its sole
discretion raise or lower the unit cost of goods figure above at any time on 30
days prior written notice.

          iii.  In the event that TRS thereafter determines that any such
Product does not meet the standards of quality required herein or has a
trademark thereon inconsistent with the license granted in Section 2, TRS shall
so notify ITC in writing and ITC shall within 30 calendar days of notification
correct the standards of quality and/or affix a trademark in accordance with the
reasonable requests of TRS. In the event that the necessary corrections to the
quality standards of or the trademark on such Products cannot be effected within
the 30-day period, ITC shall refrain from further manufacture of such Products
until appropriate compliance with this provision can be effected. Failure to
comply with standards of quality and trademarks as herein set forth shall be
deemed a material breach of this Agreement.

          iv.   Any notice required or permitted hereunder shall be in writing
and shall be sufficiently given if personally delivered or mailed by certified
or registered mail, return receipt requested, or by confirmed telecopy,
addressed as follows:

          If to TRS:
          c/o RadioShack Corporation
          100 Throckmorton Street, Ste. 1900
          Fort Worth, Texas 76102
          Attn: Mr. David Christopher
          Fax:  (817)415-2647

          with a copy to:
          RadioShack Corporation
          100 Throckmorton, Ste. 1700
          Fort Worth, Texas 76102
          Attn: Vice President - Law
          Fax:  (817)415-6593

                                       -11-

<PAGE>

          If to ITC:
          InterTAN, Inc.
          The Royal Centre
          3300 Highway #7
          Suite 904
          Concord, Ontario  L4K 4M3
          Attn: General Counsel
          Fax:  (905)760-9722

(or to such other address as any party shall specify by written notice so
given), and shall be deemed to have been delivered as of the date so personally
delivered, mailed, or telecopied.

          (c)  Products sold under any trademark licensed pursuant to Section 2
and which are (1) identical (as to form, fit, function, quality, specifications
and trademark affixed) to Products sold in the United States by RadioShack and
(2) purchased from the same vendor as RadioShack - U.S. shall not be subject to
the pre-production submission requirements of paragraph 16(b). TRS, however, may
ascertain the compliance of such Products with the license terms herein by
invoking the procedures provided and rights conferred in paragraph 16(a).

     17.  In addition to complying with laws relating to packaging, ITC shall if
requested by TRS, imprint on all packaging and/or advertising material a legend
in a form and substance satisfactory to TRS to the effect that the trademarks
used on the products are licensed and/or are used with the permission of TRS.

     18.  ITC agrees it will not use any licensed trademark, service mark or
trade name in a manner which would be offensive to good taste, or which would
injure the reputation or goodwill of TRS or RadioShack, or of the products sold
by RadioShack. ITC agrees that it will actively use and promote the trade names,
trademarks and service marks during the term of the license thereof, and that it
will not abandon or take action which may be reasonably construed as an
abandonment thereof. ITC agrees that it will not use the "RADIO SHACK" or
"RADIOSHACK" trade name or service mark in conjunction with any other trade name
or service mark during the term of this Agreement. ITC further agrees that for
the term hereof it will not sell products which are to be sold under trademarks
licensed hereunder at any ITC-owned retail store not bearing the "RADIO SHACK"
or "RADIOSHACK" trade name.

     19.  ITC agrees, upon request, to provide TRS with the names and addresses
of its supplier of products which are to be sold under trademarks licensed
hereunder. ITC agrees to permit TRS to inspect the premises owned, managed or
operated by ITC and, to the extent ITC can, shall obtain permission from such
licensees whose licenses are granted after the date hereof, and cooperate in
obtaining permission from suppliers, and from sublicensees existing as of the
date hereof, to allow a representative of TRS to inspect the premises in which
products bearing licensed trade

                                      -12-

<PAGE>

names, trademarks and service marks are used and in which products to be sold
under trademarks licensed hereunder are manufactured, stored, or sold by or for
ITC, at reasonable times during normal business hours, for purposes of enabling
TRS to determine whether or not ITC is meeting acceptable standards of quality.

     20.  ITC shall not during or subsequent to the term of any license
hereunder contest TRS's sole and exclusive ownership rights to any trade names,
trademarks and service marks herein licensed, or raise or cause to be raised any
questions or objections to registrations of same or to their validity. All uses
by ITC and sublicensees of the trademarks, service marks and trade names herein
licensed shall enure to the benefit of TRS.

     21.  TRS shall, at its option, file and diligently pursue applications for
registration of those trademarks which are used on products sold in RadioShack
company-owned stores in the United States in those countries in which ITC
resells such products as are purchased by it from TRS. Failure to file and
prosecute such applications, however, shall not be deemed a breach of this
Agreement but shall only give rise to permit ITC to file such application and
prosecute them in TRS's name, if TRS fails to do so within 60 days of request by
ITC. If TRS deems it advisable to seek registration or recordal of any trademark
or service mark herein licensed or used by TRS on products sold by it or under
its authorization to ITC now or at any time during the term of this Agreement,
ITC agrees to supply TRS with such material as TRS may reasonably request for
such purposes and to give TRS its full cooperation in connection therewith. In
the event that ITC, for any reason, obtains a registration for any trademark or
service mark herein licensed, or any part thereof, the same shall be assigned to
TRS promptly. In the event that a product upon which a mark licensed hereunder
is sold by ITC but not by TRS in a particular country and such product is not
sold by TRS in RadioShack company-owned stores in the United States, it shall be
the responsibility of ITC to register such mark, at its own expense, in the name
of TRS and to become a registered user to the extent so required. TRS, however,
may on written notice assume responsibility for such proceedings. TRS shall be
kept fully informed of all such proceedings.

     22.  This Agreement shall not be deemed to constitute a partnership or
joint venture between the parties or any other relation other than that of
licensor and licensee. ITC shall have no authority to create or incur any
liability or obligation binding on TRS, and TRS shall have no liability with
respect to the manufacture or sale of products for which marks are herein
licensed, their containers or other packing, promotion, or advertising of their
fitness, quality, workmanship, character, or compliance with applicable law.

                                      -13-

<PAGE>

     23.  In the event ITC learns of a third party use of a mark or name that
may infringe upon or otherwise erode or diminish rights herein licensed, ITC
shall promptly inform TRS in writing.

     24.  TRS shall have the sole right to take such measures as its counsel
deems reasonable and advisable under the circumstances to police and enforce its
rights to any mark herein licensed, and Tandy shall have no liability to ITC by
reason of any action or inaction on TRS's part, whether such action or inaction
results in the inability of ITC to use any trade names, trademarks, or service
marks herein licensed or to prevent others from using the same.

     25.  TRS shall have the initial right and responsibility but at ITC's
entire expense to take such measures as its counsel deems reasonable and
advisable under the circumstances to police and enforce its rights in respect to
the trade names, trademarks and service marks herein licensed, but TRS shall
have no liability to ITC by reason of any inaction on TRS's part with respect to
such enforcement. In the event that TRS requests in writing, ITC shall, at its
own expense, initiate and diligently pursue any third-party use of a trade name,
trademark or service mark that, in the written opinion of TRS's trademark
counsel, infringes rights granted under Section 1. In any proceeding initiated
by ITC, TRS shall have the right to participate actively in the proceeding, at
its own expense. ITC shall reimburse TRS within 30 days of receipt of an
itemized invoice therefor regarding all out-of-pocket expenses incurred
hereunder.

     26.  ITC agrees at its own cost and expense to defend and indemnify and
save TRS or its affiliates, including without limitation RadioShack, and its or
their respective subsidiaries, stockholders, directors, officers, employees, and
agents, harmless from and against any and all losses, liabilities, claims,
suits, actions, proceedings, judgments, awards, damages, and expense including
without limitation reasonable attorney fees that they or any of them may incur
or suffer, which arise out of or is claimed by a claimant to arise from a state
of facts which would constitute a breach by ITC of any of the terms of this
Agreement. TRS agrees to notify ITC promptly of any such claim. TRS may at its
own expense have counsel of its own choice represent it or its affiliates in
such matter. However, if ITC fails to promptly and diligently defend, TRS or its
affiliate may, but shall have no obligation to, defend or settle the same
without ITC's consent. ITC agrees to pay the cost of defense and/or settlement
including without limitations reasonable counsel fees and judgments, awards, and
settlements incurred by TRS or its affiliates related thereto. Notwithstanding
the foregoing, TRS and its affiliates shall have sole control of such
proceedings and settlements at ITC's expense if (a) the same would adversely
affect a trade name, trademark or service mark herein licensed; or (b) an
adverse result would damage the goodwill of TRS or RadioShack; or (c) ITC fails
to provide TRS at its request proof satisfactory to TRS of the

                                      -14-

<PAGE>

financial responsibility of ITC or of its insurers for any judgment which may be
entered or, in the absence of such proof, with a satisfactory surety bond to
assure such payment.

     27.  ITC agrees to carry product liability insurance for such coverage and
in such amounts and with such insurers as shall be satisfactory to TRS so long
as it continues to use trade names, trademarks and service marks herein
licensed. ITC agrees to name TRS and its affiliates as additional insureds
thereunder with provision that the insurer will not cancel such insurance
without giving TRS 30-days written notice by certified mail of any cancellation
or of any other expiration of such insurance. ITC shall deliver to TRS a
certificate of its insurer to the foregoing effect upon the execution of this
Agreement and upon any renewal or substitution of coverage.

     28.  ITC acknowledges that TRS has no adequate remedy hereunder at law for
use of trade names, trademarks, or service marks in violation of this Agreement,
and that TRS shall be entitled to injunctive relief therefore.

     29.  There are no representations or warranties that use of any trade name,
trademark or service mark herein licensed will not infringe upon rights of
others, or that TRS's rights therein are sufficient to permit the licensed use
herein set forth. Nor is there any representation or warranty by TRS that the
trademarks, trade names and service marks are duly registered or, if registered,
will be maintained, or that new applications for registration will be filed.

     30.  These licenses hereunder and this Agreement may be assigned by TRS but
may not be assigned by ITC, except with the written permission of TRS.

     31.  This Agreement is entered into in and under the laws of the State of
Texas, United States of America, and the terms and the conditions shall be
construed thereunder. The parties to this Agreement expressly agree that the
State of Texas shall have jurisdiction and venue in respect to any dispute
arising under this Agreement. TRS may, at its election, seek to enforce any
provision of this Agreement or seek to negatively or affirmatively enjoin ITC
from doing, or compelling it to do, any act prohibited or required by this
Agreement, by instituting a lawsuit in any venue in a court of competent
jurisdiction within or without the United States of America where the parties to
this Agreement, or any of them, are "found" or are "doing business" as those
terms are construed and interpreted under the laws of the State of Texas.

     32.  Any provision of this Agreement found to be prohibited by law shall be
ineffective to the extent of such prohibition without invalidating the rest of
this Agreement.

                                      -15-

<PAGE>

     33.  This Agreement may not be terminated or modified except by written
instruments signed by an authorized officer of each party hereto.

     34.  ITC agrees to pay TRS all reasonable costs and expenses including, but
not limited to, reasonable attorneys' fees, expenses and court costs incurred by
TRS in enforcing any provision of this Agreement.

     35.  Notwithstanding anything herein to the contrary, TRS may, in its sole
discretion, waive any breach, default, or event of default arising under the
terms of this Agreement. No failure or delay in exercising any right, power or
remedy under any provision of this Agreement shall operate as a waiver of or
otherwise shall prejudice any of the rights, powers or remedies of TRS. No
right, power or remedy herein conferred upon TRS is intended to be exclusive of
any other right, power or remedy, and each and every such right, power or remedy
shall be cumulative of every other right, power or remedy given hereunder or now
or hereafter existing at law or in equity or by statute or otherwise.

     36.  TRS shall fully and promptly comply with the obligations of RadioShack
under the letter agreement dated April 6, 2001 between RadioShack and ITI as
though TRS were RadioShack and all references therein to the "License Agreement"
were references to this Agreement. Nothing in this Agreement shall supersede or
modify the terms of such letter agreement.

     IN WITNESS WHEREOF the parties hereto have executed this Agreement to be
effective as of the day and year first above written.

TRS Quality Inc.

By:    /s/ Joel H. Tiede
    ---------------------------
Title: President
       ------------------------

INTERTAN CANADA LTD.

By:    /s/ Brian E. Levy
    ---------------------------
Title: Director & President
       ------------------------

                                      -16-

<PAGE>

                                   Addendum A
                                   ----------

             InterTAN Canada Ltd. Sublicense to Chapters Online Inc.

General Statement
-----------------

ITC entered into as of June 1, 2000 with Chapters Online Inc. ("Chapters") that
certain Electronic Commerce Strategic Alliance Agreement (the "ITC/Chapters
Agreement").

The ITC/Chapters Agreement contemplates the grant of certain sublicense rights
from ITC to Chapters relating to the use of certain intellectual property rights
owned by TRS (the "RadioShack Marks") and licensed from TRS to ITC under the
Agreement to which this Addendum A is attached. TRS hereby authorizes the
                        ----------
sublicense from ITC to Chapters on the terms and conditions as specified below,
which shall each be in addition to any of the terms and conditions of the
Agreement. Any capitalized term used herein which is not otherwise defined shall
have the meaning as set forth in the Agreement.

Sublicense Terms and Conditions
-------------------------------

1.   ITC is hereby authorized to grant to Chapters a sublicense to use the
     RadioShack Marks as contemplated under the ITC/Chapters Agreement, the form
     and content of which has been approved by TRS. ITC agrees to use its best
     efforts to police Chapter's use of the RadioShack Marks consistent with its
     current obligations under the Agreement.

2.   ITC shall have no rights of further sublicense to any party other than
     Chapters. ITC shall have no right to assign its interest under the
     ITC/Chapters Agreement, nor shall ITC permit Chapters to assign its rights
     under the ITC/Chapters Agreement, unless and until the prior written
     consent of TRS is obtained. TRS may withhold such consent, in either event,
     with or without cause in its sole discretion.

3.   As contemplated under the ITC/Chapters Agreement, any time ITC and Chapters
     determine in the future to jointly make decisions regarding, among other
     things, the use of product tagging or labeling, graphical depictions,
     taglines, promotional materials, etc., which involve in any manner the use
     of a RadioShack Mark, ITC shall seek the prior written approval of TRS,
     unless it is clear to ITC under all of the relevant circumstances, that
     such proposed usage of any RadioShack Mark is in full accordance with TRS's
     or RadioShack's then current Graphics Standards Manual and the Agreement.
     In the event ITC is required to obtain TRS's prior written approval, TRS
     will respond to ITC in a prompt manner, which in any event will not exceed
     three (3) business days after TRS's receipt of ITC's written request for
     such approval.

                                      -17-

<PAGE>

4.   TRS shall have the right to audit such books and records of ITC from time
     to time upon reasonable request and prior notice, relating to (i) the
     performance of ITC under the ITC/Chapters Agreement with respect to ITC's
     obligations thereunder to prevent the shipment by ITC of any consumer
     electronics products (whether private label or nationally branded) from
     Canada into the United States, including in the District of Columbia,
     Puerto Rico and the U.S. Virgin Islands; (ii) the gross sales recorded by
     ITC as a result of the transactions contemplated under the ITC/Chapters
     Agreement; and (iii) the proper usage of the RadioShack Marks in ITC's
     advertising and packaging.

5.   TRS may revoke ITC's right to sublicense the RadioShack Marks to Chapters
     at any time, with immediate effect and without any liability therefor in
     any manner whatsoever, upon the occurrence of the following:

     (i)   TRS's discovery that consumer electronic product has been or is being
           shipped by ITC into the territories identified in 4(i) above in
           violation of the terms of the ITC/Chapters Agreement;

     (ii)  TRS's discovery of any under-reporting by ITC of its gross sales
           generated under the ITC/Chapters Agreement; or

     (iii) ITC permits the persistence of an uncured breach, either by ITC or by
           Chapters, under the ITC/Chapters Agreement which directly or
           indirectly relates to or has an effect on any RadioShack Mark as
           determined in TRS's sole discretion, acting reasonably.

6.   Any breach by ITC of the terms and conditions of this Addendum A may, in
                                                           ----------
     TRS's sole discretion, be deemed to constitute a breach of the Agreement.

7.   ITC agrees to further indemnify and hold harmless TRS and those other
     entities or persons identified in Section 26 of the Agreement, to the
     fullest extent provided in the indemnity provisions of Section 26 of the
     Agreement, for any breach by Chapters of any provisions of the ITC/Chapters
     Agreement.

8.   To clarify the understanding and intentions of TRS and ITC, it is agreed
     that the gross sales generated by ITC under the ITC/Chapters Agreement
     shall be subject to the royalty payment contemplated in Section 5 of the
     Agreement.

                                      -18-

<PAGE>

                                   Addendum B
                                   ----------

               InterTAN Canada Ltd. Sublicense to AOL Canada Inc.

General Statement
-----------------

ITC contemplates that it will enter into during June 2001 with AOL Canada Inc.
("AOL") that certain Strategic Marketing Agreement (the "ITC/AOL Agreement"),
the form of which TRS has reviewed and determined to be acceptable for its
purposes.

The ITC/AOL Agreement contemplates the grant of certain sublicense rights from
ITC to AOL relating to the use of certain intellectual property rights owned by
TRS (the "RadioShack Marks") and licensed from TRS to ITC under the Agreement to
which this Addendum B is attached. TRS hereby authorizes the sublicense from ITC
           ----------
to AOL on the terms and conditions as specified below, which shall each be in
addition to any of the terms and conditions of the Agreement. Any capitalized
term used herein which is not otherwise defined shall have the meaning as set
forth in the Agreement.

Sublicense Terms and Conditions
-------------------------------

1.   ITC is hereby authorized to grant to AOL a sublicense to use the RadioShack
     Marks as contemplated under the ITC/AOL Agreement, the form and content of
     which has been approved by TRS. ITC agrees to use its best efforts to
     police AOL's use of the RadioShack Marks consistent with its current
     obligations under the Agreement.

2.   ITC shall have no rights of further sublicense to any party other than AOL.
     ITC shall have no right to assign its interest under the ITC/AOL Agreement,
     nor shall ITC permit AOL to assign its rights under the ITC/AOL Agreement,
     unless and until the prior written consent of TRS is obtained. TRS may
     withhold such consent, in either event, with or without cause in its sole
     discretion.

3.   As contemplated under the ITC/AOL Agreement, any time ITC and AOL determine
     in the future to jointly make decisions regarding, among other things, the
     use of product tagging or labeling, graphical depictions, taglines,
     promotional materials, etc., which involve in any manner the use of a
     RadioShack Mark, ITC shall seek the prior written approval of TRS, unless
     it is clear to ITC under all of the relevant circumstances, that such
     proposed usage of any RadioShack Mark is in full accordance with TRS's or
     RadioShack's then current Graphics Standards Manual and the Agreement. In
     the event ITC is required to obtain TRS's prior written approval, TRS will
     respond to ITC in a prompt manner, which in any event will not exceed three
     (3) business days after TRS's receipt of ITC's written request for such
     approval.

                                      -19-

<PAGE>

4.   TRS shall have the right to audit such books and records of ITC from time
     to time upon reasonable request and prior notice, relating to (i) the
     performance of ITC under the ITC/AOL Agreement with respect to ITC's
     obligations thereunder to prevent the shipment by ITC of any consumer
     electronics products (whether private label or nationally branded) from
     Canada into the United States, including in the District of Columbia,
     Puerto Rico and the U.S. Virgin Islands; (ii) the gross sales recorded by
     ITC as a result of the transactions contemplated under the ITC/AOL
     Agreement; and (iii) the proper usage of the RadioShack Marks in ITC's
     advertising and packaging.

5.   TRS may revoke ITC's right to sublicense the RadioShack Marks to AOL at any
     time, with immediate effect and without any liability therefor in any
     manner whatsoever, upon the occurrence of the following:

     (i)   TRS's discovery that consumer electronic product has been or is being
           shipped by ITC into the territories identified in 4(i) above in
           violation of the terms of the ITC/AOL Agreement;

     (ii)  TRS's discovery of any under-reporting by ITC of its gross sales
           generated under the ITC/AOL Agreement; or

     (iii) ITC permits the persistence of an uncured breach, either by ITC or by
           AOL, under the ITC/AOL Agreement which directly or indirectly relates
           to or has an effect on any RadioShack Mark as determined in TRS's
           sole discretion, acting reasonably.

6.   Any breach by ITC of the terms and conditions of this Addendum B may, in
                                                           ----------
     TRS's sole discretion, be deemed to constitute a breach of the Agreement.

7.   ITC agrees to further indemnify and hold harmless TRS and those other
     entities or persons identified in Section 26 of the Agreement, to the
     fullest extent provided in the indemnity provisions of Section 26 of the
     Agreement, for any breach by AOL of any provisions of the ITC/AOL
     Agreement.

8.   To clarify the understanding and intentions of TRS and ITC, it is agreed
     that the gross sales generated by ITC under the ITC/AOL Agreement shall be
     subject to the royalty payment contemplated in Section 5 of the Agreement.

                                      -20-<PAGE>

                                                                   EXHIBIT 10(W)

                            SECOND AMENDED & RESTATED
                              MERCHANDISE AGREEMENT
                                  BY AND AMONG
                      INTERTAN, INC., INTERTAN CANADA LTD.,
                                       AND
                             RADIOSHACK CORPORATION
          AND RADIOSHACK INTERNATIONAL PROCUREMENT LIMITED PARTNERSHIP

     THIS SECOND AMENDED AND RESTATED MERCHANDISE AGREEMENT ("Merchandise
Agreement" or "Agreement") is made and entered into by and among InterTAN, Inc.
("ITI"), a corporation organized under the laws of the State of Delaware and
having its principal offices at Concord, Ontario, Canada, and InterTAN Canada
Ltd. ("ITC"), a corporation organized under the laws of Alberta, Canada and
continued into British Columbia, Canada and having its principal offices at
Barrie, Ontario, Canada(ITI and ITC, and their respective current or future
subsidiaries, being collectively referred to herein as the "ITI-GROUP"), and
RadioShack Corporation (formerly Tandy Corporation) (collectively with its
subsidiaries "RADIOSHACK"), a corporation organized under the laws of the State
of Delaware and having its principal offices at Fort Worth, Texas, and
RadioShack International Procurement Limited Partnership (formerly A&A
International, Inc.) ("RIPLP"), a limited partnership organized under the laws
of the State of Nevada and having its principal office at Fort Worth, Texas and
being a wholly-owned subsidiary of RADIOSHACK.

                                       -1-

<PAGE>

                              W I T N E S S E T H:

     WHEREAS, ITI is the parent corporation of ITC through direct or indirect
stock ownership; and

     WHEREAS, the parties desire to enter into this Merchandise Agreement which
states the agreements of the parties with respect to the purchase of merchandise
by the ITI-GROUP from and through RADIOSHACK and RIPLP and the designation of
RIPLP as the exclusive agent and exporter in the Far East (as herein defined) of
products for the members of the ITI-GROUP; and

     WHEREAS, in order to enable the ITI-GROUP to act as a single business
enterprise to obtain the benefits of this Merchandise Agreement, each member of
the ITI-GROUP desires to guarantee to RADIOSHACK and RIPLP the obligations of
each of the other members of the ITI-GROUP for any and all of their respective
payment obligations under this Merchandise Agreement as well as the indemnity
obligations of each under the terms of that certain Distribution Agreement dated
as of September 30, 1986, as amended;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements contained herein, the parties hereto agree as follows:

                                    ARTICLE I
                                   MERCHANDISE

     1.1 Purchase of Merchandise. Any member of the ITI-GROUP may purchase
         -----------------------
through RIPLP merchandise bearing trademarks owned or licensed by RADIOSHACK and
sold in its United States company-owned stores carrying a full line of
merchandise, including new and

                                       -2-

<PAGE>

replacement models, which merchandise is manufactured in the Far East and
included in the then-current U.S. catalog or, if RADIOSHACK ceases publication
of such U.S. catalogs, merchandise regularly sold in RADIOSHACK's full line
company-owned stores, in either case at merchandise prices to be negotiated. Any
other merchandise not manufactured in the Far East and not included in the
then-current U.S. catalog or not regularly sold in RADIOSHACK's full line
company-owned stores may be purchased by members of the ITI-GROUP through RIPLP
or RADIOSHACK only on mutual agreement between RIPLP or RADIOSHACK and any such
member. Members of the ITI-GROUP shall have no right to purchase through
RADIOSHACK or RIPLP any item of merchandise offered for sale by RADIOSHACK in
any of its retail stores other than in RADIOSHACK's company-owned United States
stores offering a full line of merchandise.

     1.2 Designation of RIPLP as Exclusive Export Agent. Each member of the
         ----------------------------------------------
ITI-GROUP hereby appoints RIPLP as its exclusive agent and exporter of products
obtained in the Far East (including Japan, Korea, Taiwan, China, Hong Kong,
Singapore, Philippines, Asia, Malaysia, Thailand, Indonesia and Macao) and
imported into Canada for those items of merchandise which RIPLP is obliged to
source or agrees to source for the ITI-GROUP pursuant to Section 1.1.

     1.3 Ordering of Merchandise by Members of the ITI-GROUP. Definition: "Same
         ---------------------------------------------------  ----------
SKU Merchandise" as used hereafter means ITI-GROUP-ordered merchandise which
bears the same SKU designation as

                                       -3-

<PAGE>

that ordered by RIPLP for sale in RADIOSHACK's stores in the United States and
is the same product (allowing for differences in packaging and instructions) as
that sold in such stores in the United States. Once a product is identified as
"Same SKU Merchandise" it shall remain "Same SKU Merchandise" for so long as it
is sold in RADIOSHACK stores in the United States, even if either party changes
its SKU number. Neither party may change a SKU number of a product identified as
Same SKU Merchandise without the consent of the other party, which will not be
unreasonably withheld.

         (a) When ordering merchandise from vendors in countries in the Far East
other than Korea, each ITI-GROUP member shall send to RIPLP, at the applicable
RIPLP offices in the Far East, confirmation booking telexes, e-mail or other
electronic transmissions, as specified by RIPLP ("Bookings"), followed
thereafter by purchase orders ("P.O.s"), and when ordering merchandise from
vendors in Korea, each ITI-GROUP member shall send to the RIPLP office
designated by RIPLP Bookings followed thereafter by P.O.s on RIPLP's form of
P.O., which Bookings shall specify in each case (1) the vendor, (2) the quantity
and price of the merchandise ordered, (3) the purchaser/consignee and (4) RIPLP
as payor or accountee. Upon receipt of such P.O.s, RIPLP, subject to Section
1.10(a)(ii) hereof, shall provide notice of such Bookings to the vendors named
therein on behalf of, and as agent for the applicable ITI-GROUP member.

         (b) In consideration of RIPLP performing its

                                       -4-

<PAGE>

obligations under Section 1.3(a) hereof, each ITI-GROUP member shall open and
maintain a letter of credit (L/C) for the benefit of RIPLP in such amounts and
on such terms as provided for herein, with banks acceptable to RIPLP. Each L/C
shall (i) be irrevocable in form, (ii) valid until the shipment date (such
shipment date being the later of the estimated shipment date and the scheduled
shipment date of any Open Order) furthest away in time of any Open Order covered
by such L/C, (iii) specify the applicable ITI-GROUP member as the applicant of
the L/C, (iv) specify RadioShack International Procurement Limited Partnership,
100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102, U.S.A. as the
beneficiary, (v) provide for payment to RIPLP in United States dollars, and (vi)
provide for payment to RIPLP upon the delivery of an original letter or telecopy
thereof signed by the President, any Vice President or the Controller of RIPLP
(or any other employee of RIPLP to whom such responsibility has been delegated
in writing), which letter or telecopy shall provide (1) the L/C number, (2) the
U.S. dollar amount being drawn and (3) a certification that the drawing is in
respect of an F.O.B. shipment of consumer electronic goods made pursuant to a
P.O. issued by a member of the ITI-GROUP.

         (c) Twice every calendar month RIPLP shall deliver, by telecopy, e-mail
or telex, a notice to the ITI-GROUP concerning L/C coverage on Open Orders (the
"L/C Notice") ("Open Orders" being Bookings placed or confirmed by RIPLP with
vendors for merchandise not yet shipped) instructing the ITI-GROUP to cause

                                       -5-

<PAGE>

the issuing bank of the L/C to adjust such L/C by the amount provided for in the
L/C Notice. In addition, in the months of April, June and July, RIPLP shall
deliver by telecopy, e-mail or telex an additional notice to the ITI-GROUP
member to cause the issuing bank of each L/C to adjust such L/C as of the first
day of May, July and August, as the case may be, by the additional amount, if
any, reflecting the ten percent (10%) increase of L/C coverage of Open Orders in
each of such months over the previous month as required pursuant to subsections
1. 3 (e) (ii) , (iii) and (iv) hereof.

         (d) The L/C Notice shall specify (i) the aggregate U.S. dollar amount
of all Open Orders issued by and relating to the ITI-GROUP (or member, as the
case may be) as of the date of such notice and as reflected in RIPLP's records;
(ii) the percentage applicable to (i) above as set out in subsection (e) below;
and (iii) the U.S. dollar amount by which the L/C intended to cover Open Orders
shall be adjusted and the aggregate U.S. dollar amount of the L/C after giving
effect to such adjustment; provided, however, that in the case of Open Orders
                           --------  -------
for products intended for sale in Canada and placed after May 15, 1996, the L/C
Notice shall specify instead of the above, the following: (i) the aggregate U.S.
dollar amount of all Open Orders issued by and relating to ITC, less the
aggregate U.S. dollar amount of Same SKU Merchandise as of the date of such
notice and as reflected in RIPLP's records; (ii) the percentage applicable to
(i) above as set out in subsection (e) below; (iii) the aggregate U.S. dollar

                                       -6-

<PAGE>

amount of Same SKU Merchandise on Open Orders issued by and relating to ITC as
of the date of such notice and as reflected in RIPLP's records; (iv) the
percentage applicable to (iii) above as set out in subsection (e) below; and (v)
the U.S. dollar amount by which each L/C intended to cover Open Orders shall be
adjusted and the aggregate U.S. dollar amount of each L/C after giving effect to
such adjustment.

         (e) The percentage of the aggregate U.S. dollar amount of Open Orders
specified in the L/C Notice to be covered by the L/C maintained by the ITI-GROUP
(or member, as the case may be) with respect to such Open Orders shall be in the
following amounts for the following periods:

               (i)    December 1 through April 30: 60% of the aggregate
U.S. dollar Amount of the Open Orders covered by the applicable L/C as
specified in the L/C Notice;

               (ii)   May 1 through June 30: 70% of the aggregate U.S. dollar
amount of the Open Orders covered by the applicable L/C as specified in the L/C
Notice;

               (iii)  July 1 through July 31: 80% of the aggregate U.S. dollar
amount of the Open Orders covered by the applicable L/C as specified in the L/C
Notice;

               (iv)   August 1 through August 31: 90% of the aggregate
U.S. dollar amount of the Open Orders covered by the applicable L/C as
specified in the L/C Notice;

               (v)    September 1 through September 30: 80% of the aggregate
U.S. dollar amount of the Open Orders covered by the

                                       -7-

<PAGE>

applicable L/C as specified in the L/C Notice; and

               (vi)  October 1 through November 30: 70% of the aggregate U.S.
dollar amount of the Open Orders covered by the applicable L/C as specified in
the L/C Notice.

               and provided further, that, in the case of Open Orders for
               --- -------- -------
products intended for sale in Canada and placed after May 15, 1996, the
percentage of the aggregate U.S. dollar amount of Open Orders specified in each
L/C Notice to be covered by ITC, or ITA, as appropriate, with respect to such
Open Orders shall be adjusted as follows for Same SKU Merchandise:

               (x)   Aggregate U.S. dollar amount of Open Orders less the
aggregate U.S. dollar amount of Same SKU Merchandise, the resulting amount then
multiplied by the applicable percentage stated in Section 1.3(e)(i), (ii),
(iii), (iv), (v) and (vi) above AND
                                ---

               (y)   The aggregate U.S. dollar amount of Same SKU Merchandise,
multiplied by 60%, the result of which shall be multiplied by the applicable
percentage stated in Section 1.3(e)(i), (ii), (iii), (iv), (v), and (vi) above.

          (f)  Within ten (10) business days of receipt of an L/C Notice (a
business day being a day in which commercial banks are open for business in the
United States) the ITI-GROUP (or member as the case may be), shall have caused
such issuing bank to have (i) adjusted such L/C by the amount specified in the
L/C Notice and (ii) sent to RADIOSHACK and RIPLP, or RIPLP's advising bank, by
telecopy or telex, confirmation of the adjustment to such L/C

                                       -8-

<PAGE>

by the amount specified in the L/C Notice.

     (g) With respect to any payment to be made to RIPLP for merchandise shipped
under an Open Order, at the time of shipment RIPLP shall be entitled to draw on
the L/C covering such Open Order the U.S. dollar amount of such shipment in
accordance with the terms and conditions of the L/C, provided, however, that in
the event that any Cash Deficiency Payments (as defined in Section 1.10(a)
hereof) have been deposited by the ITI-GROUP (or member, as the case may be)
with RIPLP as provided in Section 1.10(a) hereof, the amount of lower payment
shall be effected first, by set-off by RIPLP from the amount of such Cash
Deficiency Payments and second, by a drawing by RIPLP under the applicable L/C
for the balance of such payment not set-off by the Cash Deficiency Payments.

     (h) The ITI-GROUP covenants and agrees with RADIOSHACK and RIPLP that so
long as this Agreement is in effect and L/Cs are required to be issued as
provided for herein, the ITI-GROUP (or member, as the case may be) shall deliver
monthly to RADIOSHACK and RIPLP a statement with respect to the ITI-GROUP
setting forth as of the date of such statement (i) the maximum principal amount
(in U.S. dollars and the denominated currencies) of all credit facilities
provided by such banks in connection with which the ITI-GROUP (or member, as the
case may be) may request an L/C to be issued (the "Credit Facilities"), (ii) the
amounts (in U.S. dollars and the denominated currencies of the applicable Credit
Facilities) of all borrowing notices or

                                       -9-

<PAGE>

requests for credit delivered to any L/C issuing bank by the ITI GROUP (or
member, as the case may be) to the extent not reflected in (iii) below, (iii)
the aggregate principal amount in U.S. dollars of outstanding indebtedness owed
by the ITI-GROUP (or member, as the case may be), under the Credit Facilities,
(iv) the scheduled due date for repayment of such outstanding amounts, (v) the
aggregate amount of all cash balances of the ITI-GROUP (or member, as the case
may be), and (vi) such other information relating to the Credit Facilities and
the L/Cs as may be reasonably requested by RADIOSHACK or RIPLP.

     (i) As an alternative procedure to that stated in Section 1.3(a) through
(h) above, the parties agree that the ITI-GROUP (or member, as the case may be)
may post one or more standby letters of credit ("SL/C's") on terms acceptable to
RIPLP, in an amount or amounts acceptable to RIPLP at banks acceptable to RIPLP.
The ITI-GROUP shall notify RIPLP in writing of its intent to use this
alternative procedure at least 60 days prior to implementation of this
alternative procedure. Each SL/C shall (i) be irrevocable in form, (ii) valid
for a full calendar year, (iii) specify the ITI-GROUP (or member, as the case
may be) as the accountee (applicant), (iv) specify Radioshack International
Procurement Limited Partnership International, Inc., 100 Throckmorton Street,
Suite 1200, Fort Worth, Texas 76102, U.S.A. as the beneficiary, (v) provide for
payment to RIPLP in United States dollars, and (vi) provide for payment to RIPLP
upon the delivery of an original letter, or telecopy or

                                      -10-

<PAGE>

facsimile transmission thereof signed by the President, any Vice President or
the Controller of RIPLP (or any other employee of RIPLP to whom such
responsibility has been delegated in writing), which letter shall provide (1)
the SL/C number (if any), and (2) the amount, in U.S. dollars, that the
ITI-GROUP (or member, as the case may be) has failed to pay and which is past
due. The ITI-GROUP hereby agrees and the banks shall agree, that no affidavit or
sworn certification shall be required from RIPLP in order for RIPLP to draw on
the SL/C. The ITI-GROUP agrees to pay RIPLP all amounts due within five (5) days
from the date of the payment request, and agrees that upon its failure to do so,
RIPLP shall be entitled to immediately present the letter described above to the
bank and draw upon the SL/C for payment. Further, if for any reason RIPLP is
unable to draw upon the SL/C for payment, RIPLP may declare the ITI-GROUP in
default of this Agreement, terminate same, and enforce its rights hereunder.

     (j) (i) The parties agree that the ITI-GROUP, as an alternative or
conjunctive procedure to that stated in Section 1.3(b) through (i) above, may
from time to time post one or more Surety Bonds (individually a "Surety Bond"
and collectively, the "Surety Bonds") in form and substance acceptable to RIPLP
in an amount or amounts acceptable to RIPLP and with a surety or sureties
acceptable to RIPLP. The Surety Bond(s) may be posted as either partial or
complete fulfillment of the security required hereunder, up to the penal amount
of the Surety Bond(s). In the event the amounts due and owing under this
Agreement, for

                                      -11-

<PAGE>

which an L/C would have been otherwise required, exceeds the penal sum of the
Surety Bond(s), the ITI-GROUP shall arrange for L/C's (as per Section 1.3(b)
through (i) above) or Cash Deposits to secure payments as required under this
Agreement. Each Surety Bond posted by the ITI-GROUP shall contain such terms and
conditions as deemed mutually acceptable to RIPLP, the ITI-GROUP, and the issuer
of the Surety Bond. Notwithstanding anything herein to the contrary, no Surety
Bond shall be deemed acceptable to RIPLP until such time as RIPLP has, in
writing, acknowledged and accepted such Surety Bond. If, for any reason, RIPLP
is unable to draw upon any Surety Bond for payment, RIPLP may declare the
ITI-GROUP in default of this Agreement and absent a cure by the ITI-GROUP, may
terminate same and enforce its rights hereunder.

     (ii) The ITI-GROUP agrees that, regarding RIPLP's right to receive payment
under any Surety Bond, and, as a material inducement for RIPLP to enter into
this Agreement and to accept a Surety Bond in lieu of a documentary letter of
credit, the ITI-GROUP jointly and severally hereby waives any and all claims,
defenses or offsets of any kind that it or any member has or may have against
RIPLP relating to, or serving as a basis for, non-payment under any Surety Bond
posted under this Agreement. Without limiting the foregoing, all of the
following are hereby waived and shall not be asserted by the ITI-GROUP or any
member thereof as a defense, a claim for reimbursement, or a basis for
non-payment under any Surety Bond:

                                      -12-

<PAGE>

                   (1) Any claim or defense based upon the ITI-GROUP's, or any
member's, failure to pay RIPLP due to force majeure, laches, impracticability,
impossibility, or unconscionability, material alteration of this Agreement,
extension of time to pay, failure to mitigate by RIPLP, improper/inadequate
notice of default, usury, or release or loss of collateral.

                   (2) Any claim or defense based upon nonconformity of finished
product with the corresponding purchase order or similar documents.

                   (3) Any claim or defense based upon warranties or
representations, whether express or implied, made by RIPLP to the ITI-GROUP
and/or any member thereof under the terms of this Agreement.

           (iii)   In the event of a default in payment by any member of the
ITI-GROUP necessitating a claim to be made under any Surety Bond, RIPLP agrees
to use commercially reasonable efforts to assist the ITI-GROUP (or member, as
the case may be) to cancel product orders placed by the ITI-GROUP (or member, as
the case may be) in accordance with Section 1.10(c) of this Agreement, as
previously amended.

      (iv) Open Orders secured by any Surety Bond posted in the manner as
described in (i) above shall be subject to (1) the same percentage formula as
applicable to L/C postings and (2) the Same SKU Merchandise formula, each as
specified in Section 1.3(e)

                                      -13-

<PAGE>

of this Agreement. Prior to the posting of any Surety Bond under this Section
1.3(j), the ITI-GROUP shall notify RIPLP in writing as to the manner in which
the full face amount of any Surety Bond shall be allocated between the members
of the ITI-GROUP. The ITI-GROUP shall be entitled to reallocate, from time to
time, the full face amount of any Surety Bond between the ITI-GROUP members;
provided RIPLP shall be notified not less than ten (10) days prior to any such
reallocation of the full face amount.

         1.4 Purchasing Agent's Commission. RIPLP will perform the export agent
             -----------------------------
services described above for the following purchasing agent's commission
described below:

                          Purchasing Agent's Commission
                          -----------------------------

                          Unit Price              Unit Price
                          ----------              ----------
                       Under $1.00 F.O.B.      Over $1.00 F.O.B.
                       ------------------      ----------------

Merchandise             6% gross margin           4% gross margin
(excluding parts)

Parts (spare &/or      10% gross margin          10% gross margin
repair parts for
finished goods)

"unit" price = the price per item, or per group of items (if such items are sold
at a single price for a certain number of items), normally charged by a
manufacturer.

"gross profit" = sales price minus unit price

"gross margin" = gross profit of an item divided by the sales price

"sales price" = unit price plus gross profit

Formula:          X                 where "X" = gross profit
          ----------------
           unit price + X   = a     and "a" = gross margin desired

                                      -14-

<PAGE>

         FORMULA EXAMPLE 1:
         UNIT PRICE = $.50
         GROSS MARGIN DESIRED = 6%

         ( X
          ---
         .5 + X) = 6%

         Steps:    1.  X = (.5 + X) x  .06
                   2.  X = .03 + .06X
                   3.  X - .06X = .03
                   4.  .94X = .03
                   5.  X = .03
                           ---
                           .94
                   X (gross profit) = .0319

                   unit price + gross profit = sales price
                                  .5 + .0319 = $.5319

                   gross margin = .0319 (gross profit)
                                  --------------------
                                  .5319 (sales price)     = 6%

         The ITI-GROUP will pay to RIPLP a per-unit purchasing agent's
commission of $.032 on each unit with a unit price of $.50.

Add-on Calculations:  unit price x  6.38% = gross profit necessary
                                              for 6% gross margin
                   unit price x  4.17% = gross profit necessary
                                              for 4% gross margin
                   unit price x 11.11% = gross profit necessary
                                              for 10% gross margin

         ADD-ON CALCULATION EXAMPLE:

         $.50 x 6.38% = .0319 gross profit necessary for 6% gross
                         margin

         .0319 (gross profit)
         --------------------
         .5319 (sales price)        = 6% gross margin

         The ITI-GROUP will pay to RIPLP a per-unit purchasing agent's
commission of $.032 on each unit with a unit price of $.50

         1.5 Purchasing Agent/Exporter Fee. In addition to the purchasing
             -----------------------------
agent's commission, RIPLP shall receive a Purchasing Agent/Exporter Fee ("P/E
Fee"). The P/E Fee shall consist of a

                                      -15-

<PAGE>

minimum annual base fee of U.S.$532,500 from the ITI-GROUP, subject to increase
as provided below. A portion of the minimum annual base fee will be paid in
quarterly installments of 12-1/2% of the minimum annual base fee. Such quarterly
installments shall be due and payable on the last day of September, December,
March and June of each year during the term hereof. The balance of the P/E Fee
may be paid by a merchandise credit, as described below, to the extent purchases
through RIPLP are sufficient. The settlement of the balance will be made on or
before August 31 following the end of each Annual Period ("AP"). An AP is from
July 1 through June 30. "AP Sales" shall be the net sales reported in the
audited, consolidated Annual Report of the ITI-GROUP.

         The minimum annual base fee will be increased by an additional sum, if
any, based upon the following calculation (all figures in U.S. dollars):

                  AP Sales over $400,000,000
                  --------------------------
                           $400,000,000           x    $532,500

                  EXAMPLE:  AP Sales = $412,000,000
                  -------

                  Purchasing Agent/Exporter Fee ("P/E Fee") =
                  -----------------------------------------

                  $532,500 + [(12,000,000
                               ----------
                               400,000,000) x $532,500] = $548,475

                  Fees on all purchases made on or before April 30, 2001 shall
be calculated in accordance with the terms and conditions of the merchandise
agreement in effect as of April 30, 2001, adjusted for the portion of the AP
during which it was in effect, and shall take into account purchases made by
InterTAN Australia Limited prior to its sale and disassociation from the
ITI-GROUP on April 30, 2001.

                                      -16-

<PAGE>

     1.6 Merchandise Credit. RIPLP will give the ITI-GROUP a credit up to but
         ------------------
not exceeding the base fee, in the amount obtained by multiplying one-fourth of
one percent (0.25%) times all purchases of merchandise F.O.B.C. (free on board
plus purchasing agent's commission) made by the ITI-GROUP through RIPLP during
an Annual Period as reflected on invoices or reports issued by RIPLP to the
ITI-GROUP or any of its members. If the total of the quarterly installments (as
described above) plus the merchandise credit for any Annual Period is less than
the P/E Fee, then on or before August 31 following each such Annual Period, the
ITI-GROUP will pay the deficiency to RIPLP. If the total of the quarterly
installments (as described above) and the Merchandise Credit for any Annual
Period is in excess of the P/E Fee, then on or before August 31 following each
such Annual Period, RIPLP will refund the excess, but not in excess of the total
of all quarterly installments paid during such Annual Period.

     Formula: P - (I + C) = Amount due or refundable.
     Where:  P = P/E Fee
             I = Quarterly Installments paid toward the minimum base fee
             during AP
             C = Merchandise Credit earned during AP
     (All figures in U.S. Dollars)

     Example 1:
     ----------

     Assuming purchases of merchandise F.O.B.C. by the ITI-GROUP through RIPLP
     of $100,000,000 during an Annual Period, the formula would have the results
     indicated below:

     $548,475-[($66,562.50x4)+($100,000,000x0.0025)]=$32,225

     The ITI-GROUP would pay RIPLP $32,225 on or before August 31.

                                       -17-

<PAGE>

     Example 2:
     ----------

     Assuming purchase of merchandise F.O.B.C. by the ITI-GROUP through RIPLP of
     $300,000,000 during an Annual Period, the formula would have the results
     indicated below:

     $548,475-[($66,562.50x4)+($300,000,000x0.0025)]=($467,775)

     RIPLP would refund to the ITI-GROUP on or before August 31 $266,250 which
     is the maximum amount of the refund due under this Section 1.6.

     Credits on all purchases made on or before April 30, 2001 shall be
     calculated in accordance with the terms and conditions of the merchandise
     agreement in effect as of April 30, 2001, adjusted for the portion of the
     AP during which it was in effect, and shall take into account purchases
     made by InterTAN Australia Limited prior to its sale and disassociation
     from the ITI-GROUP on April 30, 2001.

     1.7  Adjustment for First Annual Period. During the first AP under this
          ----------------------------------
Merchandise Agreement, the calculations set out in Sections 1.5 and 1.6 above
will be adjusted as follows:

          (a) The adjusted AP will be the period from May 1, 2001 through June
30, 2001.

          (b) AP Sales will be the net sales reported in the audited,
consolidated Annual Report (for FYE 6-30-01) of the ITI-GROUP, less the sales
                                                               ----
for each fiscal quarter reported in the published ITI-GROUP Quarterly Reports
for the periods ending September 30, 2000, December 31, 2000 and March 31, 2001,
plus an adjustment to be determined by the parties for InterTAN Australia
Limited sales occurring between April 1, 2001 and April 30, 2001, inclusive.

          (c) The minimum annual base fee for purposes of calculating the P/E
Fee for the adjusted AP will be U.S. $88,750.

                                       -18-

<PAGE>

The minimum annual base fee during the first AP will be increased by an
additional sum, if any, based upon the following calculation (all figures in
U.S. dollars):

     AP Sales Over $66,667,000
     -------------------------
             $66,667,000           x  88,750

     Example: AP Sales = $75,000,000
     -------

                            (8,333,000
                           -----------
     P/E Fee = $88,750 + [ 66,667,000) x $88,750] = $99,843.24

          (d) An installment of $73,958.33 will be due for the remaining quarter
of the first AP payable on or before June 30, 2001. The ITI-GROUP would pay
$14,791.67 on or before August 31, 2001.

          (e) The merchandise credit will be obtained by multiplying one-fourth
of one percent (0.25%) times all purchases of merchandise F.O.B.C. made during
the adjusted AP set out in Section 1.7(a) above, not to exceed the adjusted base
fee set out in Section 1.7(c) above.

     EXAMPLE:
     --------

     Assuming purchases of merchandise F.O.B.C. by the ITI-GROUP through RIPLP
of $30,000,000 during the adjusted AP, the formula set out in Section 1.6 using
the first year adjustments would have the results indicated below:

     $99,843.24-[($73,958.33)+($30,000,000 x 0.0025)]=($49,115.09)

     RIPLP would refund to the ITI-GROUP $49,115.09 on or before August 31,
2001.

     1.8  Payment Terms. Invoices for commissions, fees and expenses chargeable
          -------------
to the ITI-GROUP under this Agreement shall be

                                       -19-

<PAGE>

due and payable within thirty (30) days of the receipt of invoice or facsimile
thereof by the applicable ITI-GROUP member. In the alternative, RIPLP, at its
option, may bill for commissions, fees and expenses charged to the ITI-GROUP
under this Agreement by means of a month-end statement which statement shall be
due and payable within fifteen (15) days of the statement date. Anything in this
Agreement notwithstanding, P/E Fee installments are due as set out in Section
1.5 above and, during the first AP, as set out in Section 1.7(d) and the
ITI-GROUP will pay those installments to RIPLP as set out in paragraphs 1.5 and
1.7 without requirement of an invoice or statement from RIPLP. If a Surety Bond
or SL/C is used in place of an L/C, the ITI-GROUP agrees to pay RIPLP by wire
transfer all amounts due for merchandise in the amount(s) specified in the
applicable Merchandise Payment Request ("MPR") within three (3) business days
from the date of receipt of the applicable MPR by the ITI-GROUP (or member, as
the case may be), the form of which will be provided by RIPLP. Notwithstanding
the foregoing, RIPLP may, in its sole discretion, extend the payment period and
adjust any amount(s) specified in a MPR in order to resolve any inaccuracies or
discrepancies, or to make similar adjustments to the MPR which may be required.

     1.9 Interest Charges. Past due amounts owed to RIPLP hereunder shall accrue
         ----------------
interest at the prime rate published in the Money Rates section of The Wall
                                                                   --------
Street Journal (Southwest Edition) on the date the amounts become past due, plus
--------------
one (1) percentage point per annum.

                                       -20-

<PAGE>

     1.10 Cash Deficiency Payments; Cancellation of Open Orders;
          ------------------------------------------------------
Non-Acceptance of Bookings.
---------------------------

          (a) (i) If at any time the ITI-GROUP or any member fails or is unable
to maintain or adjust any L/C for any reason whatsoever, in the form and in the
amounts and during the periods provided for hereunder, the ITI-GROUP shall
immediately pay into an account designated by RIPLP in immediately available
funds the U.S. dollar amount equal to the difference between (x) the U.S. dollar
amounts of Open Orders required to be covered at such time by L/Cs as provided
for hereunder and (y) the U.S. dollar amounts of Open Orders actually covered by
L/Cs and Cash Deficiency Payments at such time (such payment being a "Cash
Deficiency Payment").

               (ii) Within five (5) business days of receipt of notice by RIPLP
from the ITI-GROUP of a repayment obligation under this Section 1.10(a)(ii),
RIPLP shall repay in immediately available funds to the ITI-GROUP or its order
the U.S. dollar amount equal to the positive difference between (x) the U.S.
dollar amounts of Open Orders actually covered by L/Cs and Cash Deficiency
Payments at any time and (y) the U.S. dollar amounts of open Orders required to
be covered at such time by L/Cs and Cash Deficiency Payments as provided for
hereunder. Such repayments by RIPLP shall not include interest and shall be made
solely from and limited to the amounts of Cash Deficiency Payments, if any,
deposited pursuant to Section 1.10(a)(i) hereof.

                                       -21-

<PAGE>

          (b) In the event that the ITI-GROUP, or any member, fails or is unable
to maintain or adjust any L/C for any reason whatsoever, in the form and in the
amounts and during the periods provided for hereunder and fails to make any Cash
Deficiency Payments for any reason whatsoever, in the amounts provided for
hereunder, then irrespective of whether RIPLP has declared or waived any event
of default pursuant to Section 2.1 hereof, RIPLP (i) shall be entitled in its
sole discretion to cancel any Open Order, provided that RIPLP shall use its best
efforts, to the extent not contrary to its best interests as determined in its
sole discretion, to cancel only Open Orders or amounts of Open Orders by amounts
such that after giving effect thereto the balance of Open Orders will be covered
by L/Cs and Cash Deficiency Payments in the amounts provided for hereunder; and
(ii) shall not be required to initiate or accept any Booking from the ITI-GROUP
or place or confirm on behalf of the ITI-GROUP any Booking with any vendor
unless prior to acceptance or placement or confirmation of such Booking the
ITI-GROUP pays into an account designated by RIPLP in immediately available
funds the full U.S. dollar amount of such Booking. Nothing in this subsection
(b) shall be construed as limiting in any way the right of RIPLP to declare an
event of default pursuant to Section 2.1 hereof.

          (c) With respect to cancellation of Open Orders in circumstances other
than in subsection (b) above, (i) in countries other than Korea, the ITI-GROUP
shall have the sole

                                       -22-

<PAGE>

right to cancel any Open Order and to negotiate cancellation fees directly with
vendors and (ii) in Korea, both RIPLP and the ITI-GROUP shall have the right to
cancel any Open Order. RIPLP, in its capacity as purchasing agent, will assist
(provided such assistance does not involve the incurrence of any expense on the
part of RIPLP) the ITI-GROUP in canceling any Open Order in an attempt to
mitigate and minimize the ITI-GROUP's liability to any vendor.

          (d) RIPLP shall have the option to refuse to act as purchasing
agent/exporter for the ITI-GROUP with any vendor with respect to which the
ITI-GROUP has canceled, through RIPLP or otherwise, an Open Order. In such
circumstances, the ITI-GROUP may then deal directly with such vendor,
notwithstanding the terms of this Agreement.

     1.11 Indemnification.
          ----------------

          (a) Each member of the ITI-GROUP, jointly and severally, hereby agrees
to indemnify and hold harmless RADIOSHACK and RIPLP and each of their respective
affiliates, directors, officers, employees, agents and advisors (each, an
"Indemnified Party") against (i) all claims, damages, losses, liabilities,
costs, fees (including reasonable attorney fees), expenses and charges that may
be incurred by, or asserted or awarded against an Indemnified Party, in each
case arising out of or in connection with the cancellation or attempted
cancellation of any Open Order pursuant to Section 1.10 hereof or otherwise, or
any proceeding or litigation or threatened proceeding or

                                       -23-

<PAGE>

litigation relating thereto; (ii) all costs, fees (including reasonable attorney
fees), expenses and charges, including without limitation all bank fees and
charges, that may be incurred by or awarded against an Indemnified Party in
connection with any drawing under any L/C, or any proceeding or litigation or
threatened proceeding or litigation relating thereto; and (iii) all costs,
damages, losses, liabilities, fees (including reasonable attorney fees),
expenses and charges that may be incurred by or awarded against an Indemnified
Party, in each case arising out of or in connection with enforcing or defending
the provisions of this Agreement and any subsequent amendments thereto, whether
involving any ITI-GROUP member or any third party.

          (b) In connection with any claim for indemnification by an Indemnified
Party under subsection (a)(i) hereof arising out of or in connection with any
proceeding or litigation or threatened proceeding or litigation by a vendor
against any Indemnified Party relating in any way to the cancellation or
attempted cancellation of an Open Order, upon reasonable written notice to
RADIOSHACK and such Indemnified Party, the ITI-GROUP may at its option contest,
manage, and defend any such claim for which it has, or may have, responsibility
for payment, provided that during the pendency of any such proceeding or
             --------
litigation, the ITI-GROUP will reimburse such Indemnified Party currently on a
monthly basis for all reasonable legal and other expenses incurred by it in
defending, or assisting in the defense of, any

                                       -24-

<PAGE>

such proceeding or litigation notwithstanding the absence of a judicial or
quasi-judicial determination as to the merit of the claim or as to the propriety
and enforceability of the ITI-GROUP's responsibility for such claim and
expenses.

     1.12  Fee and Credit Renegotiation. Each of the Purchasing Agent's
           ----------------------------
Commission set out in Section 1.4 above, the Purchasing Agent/Exporter Fee set
out in Section 1.5 above, and the Merchandise Credit set out in Section 1.6
above may be renegotiated by the parties at any time upon the request of either
party.

     1.12A Term. This Agreement will expire upon the termination of the Second
           ----
Amended and Restated License Agreement (Canada) dated as of May 1, 2001 between
TRS Quality, Inc. (an affiliate of RADIOSHACK) and ITC.

                                   ARTICLE II
                                    DEFAULT

     2.1   Events of Default.
           -----------------
           (a) The use of RIPLP as exclusive agent for the purchase of
merchandise under Article I of this Merchandise Agreement by the ITI-GROUP and
all obligations of RIPLP related thereto may be terminated by RADIOSHACK or
RIPLP upon written notice to ITI (it being understood and agreed by all parties
to this Merchandise Agreement that neither RADIOSHACK nor RIPLP shall be
required to give any such notice to any other member of the ITI-GROUP and that
notice to ITI constitutes notice to all members

                                      -25-

<PAGE>

of the ITI-GROUP), at its principle offices at Concord, Ontario, Canada in the
event of the occurrence of any of the following events of default:

           (i)   Any member of the ITI-GROUP:

                 (A) fails to make any payment to RADIOSHACK or RIPLP, when due,
of any purchasing agent's commission or purchasing agent/exporter fee, or any
other amounts payable to RADIOSHACK or RIPLP under this Merchandise Agreement;
or

                 (B) fails to perform any other material obligation under this
Merchandise Agreement, including, without limitation, the guarantee obligations
set forth in Article III hereof; or

           (ii)  Any member of the ITI-GROUP defaults on any agreement,
including lease agreements, to which any member of the ITI-GROUP and RADIOSHACK
are parties or are in privity with third parties; or

           (iii) Any license agreement between RADIOSHACK, as licensor, and any
member of the ITI-GROUP, as licensee, expires or is terminated for any reason,
or any member of the ITI-GROUP fails to make payment of any sums of money due to
RADIOSHACK under any license agreement; or

           (iv)  There is a "change of control" of ITI or ITC as that phrase is
used and defined in the license agreement between TRS Quality, Inc. and ITC,
which amended and restated license agreement is being entered into
contemporaneously with this Merchandise Agreement.

                                      -26-

<PAGE>

     (b)  The ITI-GROUP, acting collectively by and through ITI, shall have the
right to cure certain events of default as follows:

          (i)   In the event of the occurrence of an event of default under
Section 2.1(a)(i) above, the ITI-GROUP shall have the right to cure such event
of default within thirty (30) days from and after the date of written notice by
RADIOSHACK or RIPLP of such event of default; provided, however, that the right
to cure any such event of default shall be limited and shall not exceed a total
of three times during each AP on defaults under 2.1(a)(i)B and payment defaults
on monthly amounts due; or once each AP on payment defaults on quarterly amounts
due;

          (ii)  In the event of the occurrence of an event of default under
Section 2.1(a)(ii) above, the ITI-GROUP shall have the right to cure such event
of default in accordance with the provisions, if any, relating to the cure of an
event of default contained in any agreement included within the scope of the
provisions of such Section; and

          (iii) In the event of the occurrence of an event of default under the
provisions of Section 2.1(a)(iii) above, the ITI-GROUP shall have the right to
cure such event of default in accordance with the provisions of the license
agreement referred to in such Section relating to the cure of an event of
default; provided, however, that the ITI-GROUP shall not have the right to
extend the term of an expired license agreement between RADIOSHACK, as licensor,
and ITC, as licensee, and upon termination or expiration of any such license
agreement this

                                      -27-

<PAGE>

Merchandise Agreement shall terminate and shall be of no further force or
effect.

     (c) The ITI-GROUP shall not have the right to cure an event of default
resulting from a "change of control" as described in Section 2.1(a)(iv) above.

     2.2 Acceleration of Payment. Upon written notice to members of the
         -----------------------
ITI-GROUP, RADIOSHACK or RIPLP may also declare any and all purchasing agent's
commissions and purchasing agent/exporter fees, as well as any other amounts
payable to RADIOSHACK or RIPLP under this Merchandise Agreement, to be
immediately due and payable upon any of the events of default described in
Sections (i) through (iv) of Section 2.1(a) above, subject to the right of the
ITI-GROUP to cure certain specified events of default as provided in Section
2.1(b) above, provided that RADIOSHACK or RIPLP may not take any action
contemplated by this Section 2.2 so long as the failure of the ITI-GROUP to make
payments under Section 2.1(a)(ii)(A) above is the result of a reasonable dispute
pursued in good faith and, with regard to such dispute, RADIOSHACK has received
from the ITI-GROUP within five (5) business days prior to the date payment is
due under this Agreement a detailed written notice of the amounts, invoices, and
the basis for dispute, and provided further that all undisputed amounts are paid
to RADIOSHACK or RIPLP in accordance with the terms of this Agreement. The
parties shall make their best, good faith effort to resolve any such dispute
within thirty (30) days

                                      -28-

<PAGE>

after the due date of the statement or invoice which includes the disputed
amounts. Within fifteen (15) days after the due date of the statement or invoice
which includes the disputed amounts, the chief financial officer of the
ITI-GROUP and the chief financial officer of RADIOSHACK shall attempt to resolve
the matter. In the event the chief financial officers are unable to resolve the
dispute within the initial fifteen (15) day period, the chief executive officer
of the ITI-GROUP and the chief executive officer of RADIOSHACK shall discuss the
matter during the fifteen (15) days next following in an attempt to resolve the
dispute. In any event, if the dispute is not resolved within thirty (30) days
after the due date of the statement or invoice which includes the disputed
amount, then RIPLP shall have the right to terminate, without notice, the right
of the ITI-GROUP to purchase products through RIPLP and to immediately
terminate, without notice, all purchasing agent services performed by RIPLP
under Sections 1.1 and 1.2 of this Agreement.

     2.3 Non-assignment and Termination. The ITI-GROUP acknowledges that its
         ------------------------------
right to purchase products through RADIOSHACK or RIPLP as provided in Article I
of this Merchandise Agreement, any economic benefits secured by RADIOSHACK or
RIPLP from its vendors for members of the ITI-GROUP under any licensing,
software and hardware agreements, and the agreement of RIPLP to perform
purchasing agent services for members of the ITI-GROUP as provided in Section
1.2 of this Merchandise Agreement, are nonassignable, except with the express
written consent of

                                      -29-

<PAGE>

RADIOSHACK and RIPLP, which consent may be withheld by RADIOSHACK or RIPLP in
their sole discretion. Further, such rights and obligations shall terminate
automatically, without need for any action, including notice from RADIOSHACK or
RIPLP, in the event any member of the ITI-GROUP

     (a) becomes insolvent,

     (b) initiates or otherwise becomes the subject of a foreign or domestic
receivership, arrangement, composition, liquidation, reorganization, bankruptcy,
or other insolvency proceeding, or

     (c) enters into an arrangement or composition for the benefit of creditors.

                                   ARTICLE III
                    GUARANTEE BY EACH MEMBER OF THE ITI-GROUP

     3.1 Guarantee. Each of ITI and ITC (hereinafter "Guarantors" or each
         ---------
"Guarantor") hereby irrevocably and unconditionally, jointly and severally,
guarantees to RADIOSHACK and RIPLP the due and punctual payments, observance and
performance of all of the obligations, terms, conditions and covenants of each
of the other members of the ITI-GROUP pursuant to this Merchandise Agreement,
including, but without limitation, the payment to RADIOSHACK and/or RIPLP when
due of the purchasing agent's commissions, purchasing agent/exporter fees and
any other amounts payable to RADIOSHACK or RIPLP under this Merchandise
Agreement. For purposes of clarity, this guarantee fully extends to any payments
requried to be made under this Agreement to RADIOSHACK or RIPLP that arise from,
or relate in any manner to,

                                      -30-

<PAGE>

matters existing prior to May 1, 2001, including without limitation product
orders placed by InterTAN Australia Limited (or any affiliate) through
RADIOSHACK or RIPLP. Furthermore, this guarantee is a continuing guarantee and
shall be binding upon each Guarantor, its successors and assigns, and shall
inure to the benefit of, and be enforceable by, RADIOSHACK and RIPLP, and their
respective successors, transferees and assigns.

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

     Each member of the ITI-GROUP represents and warrants to RADIOSHACK and
RIPLP as follows:

     4.1  Due Authority; Enforceability; No Breach. The execution, delivery and
          ----------------------------------------
performance by it of this Agreement and the consummation of the transactions
contemplated hereby, have been duly authorized by its Board of Directors and by
all other necessary corporate action. This Agreement has been duly executed and
delivered by it and is a legal, valid and binding obligation of it, enforceable
against it. Neither the execution, delivery and performance by it of this
Agreement, nor the consummation by it of the transactions contemplated hereby,
nor the compliance by it with, or fulfillment by it of the terms and provisions
hereof will

          (i) conflict with or result in a breach or violation of any of the
terms, conditions or provisions of its certificate of incorporation or bylaws,
or applicable corporate organizational documents; (ii) with or without the
giving of notice or lapse of

                                      -31-

<PAGE>

time or both, conflict with or result in a breach or violation of, or default
under, or permit the acceleration of any obligation under any provision of any
agreement, indenture, mortgage, lien, lease or other instrument or restriction
of any kind to which it is a party or by which it is otherwise bound or
affected; or (iii) violate any judgment, order, writ, injunction, decree, law,
statute, rule or regulation applicable to it.

                                    ARTICLE V
                                  MISCELLANEOUS

     5.1 Severability. In the event that any provision of this Merchandise
         ------------
Agreement shall be determined to be invalid or prohibited by law, such provision
shall be ineffective to the extent of such invalidity or prohibition without
invalidating the remainder of this Merchandise Agreement.

     5.2 Waiver. No failure or delay in exercising any right, power or remedy
         ------
under any provision of this Merchandise Agreement shall operate as a waiver of
or otherwise shall prejudice any of the rights, powers or remedies of RADIOSHACK
or RIPLP. No right, power or remedy herein conferred upon RADIOSHACK or RIPLP is
intended to be exclusive of any other right, power or remedy, and each and every
such right, power or remedy shall be cumulative of every other right, power or
remedy given hereunder or now or hereafter existing at law or in equity or by
statute or otherwise.

     5.3 Amendment. This Merchandise Agreement may be amended only by a document
         ---------
subscribed in writing by all parties hereto.

     5.4 Notices. All notices pursuant to this Merchandise
         -------

                                      -32-

<PAGE>

Agreement shall be in writing and shall be deemed given when personally
delivered or when mailed by certified or registered mail, return receipt
requested, postage prepaid and properly addressed, or when sent by legible
facsimile transmission (proper transmission confirmed) properly addressed as
follows:

     If to any ITI-GROUP member:  InterTAN, Inc.
                                  The Royal Centre
                                  3300 Highway #7
                                  Suite 904
                                  Concord, Ontario L4K 4M3
                                  Attn: General Counsel
                                  Fax:  (905)760-9722

     If to RADIOSHACK or RIPLP:   RadioShack Corporation
                                  100 Throckmorton St., Ste. 1700
                                  Fort Worth, Texas 76102
                                  Attn: Mr. David S. Goldberg
                                  Vice President - Law

                                  Fax: (817)415-6593

     5.5 Counterparts. This Merchandise Agreement may be executed in
         ------------
counterparts, any or all of which shall constitute one and the same document.

     5.6 Further Assurances. RADIOSHACK and RIPLP each member of the ITI-GROUP
         ------------------
agree that they will at any time and from time to time, upon request of the
other, execute, acknowledge and deliver all such further instruments and
documents and to do, or cause to be done, all such further acts as may be
required to carry out the purpose and intent of this Merchandise Agreement.

     5.7 Merger of Prior Negotiations. All prior negotiations and agreements
         ----------------------------
between the parties hereto with respect to the subject matter of this
Merchandise Agreement are merged herein.

                                      -33-

<PAGE>

     5.8  Binding effect. This Merchandise Agreement shall be binding on the
          --------------
parties hereto and their respective permitted successors and permitted assigns.

     5.9  Headings. The article and section headings in this Merchandise
          --------
Agreement are for convenience and reference only, and shall not be utilized in
any way to explain, modify, amplify or add to the interpretation, construction
or meaning of this Merchandise Agreement.

     5.10 April 6, 2001 Letter Agreement. The reference in the letter agreement
          ------------------------------
dated April 6, 2001 between RadioShack and ITI to the "Merchandise Agreement"
shall be deemed to be a reference to this Merchandise Agreement. Nothing in this
Merchandise Agreement shall supersede or modify the terms of such letter
agreement.

                                   ARTICLE VI
                  GOVERNING LAW AND SUBMISSION TO JURISDICTION

6.1 TEXAS LAW APPLICABLE; SUBMISSION TO JURISDICTION. THIS MERCHANDISE AGREEMENT
    ----------------------------------------------------------------------------
AND ALL AMENDMENTS THERETO, AND ANY AND ALL CLAIMS, DEMANDS OR ACTIONS OR IN ANY
--------------------------------------------------------------------------------
WAY RELATING THERETO OR INVOLVING ANY DISPUTE BETWEEN OR AMONG ANY OF THE
-------------------------------------------------------------------------
PARTIES HERETO, WHETHER ARISING IN CONTRACT OR TORT, AT LAW, IN EQUITY OR
-------------------------------------------------------------------------
STATUTORILY, SHALL BE GOVERNED, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE
--------------------------------------------------------------------------------
LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CHOICE OF
--------------------------------------------------------------------------------
LAWS OF SUCH STATE. EACH PARTY HERETO IRREVOCABLY SUBMITS ITSELF TO THE
-----------------------------------------------------------------------
EXCLUSIVE JURISDICTION OF THE COURTS OF THE FEDERAL COURTS OF THE UNITED STATES,
--------------------------------------------------------------------------------
NORTHERN DISTRICT OF TEXAS, FORT WORTH DIVISION, AND TO
-------------------------------------------------------

                                      -34-

<PAGE>

THE COURTS OF THE STATE OF TEXAS LOCATED IN TARRANT COUNTY, TEXAS, AS TO ANY
----------------------------------------------------------------------------
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THE MERCHANDISE AGREEMENT,
------------------------------------------------------------------------------
AS IT MAY BE AMENDED FROM TIME TO TIME, AND AGREES AND CONSENTS THAT SERVICE OF
-------------------------------------------------------------------------------
PROCESS MAY BE HAD UPON IT IN ACCORDANCE WITH THE PROCEDURES, RULES AND LAWS OF
-------------------------------------------------------------------------------
TEXAS IN ANY SUCH DISPUTES. EACH MEMBER OF THE ITI-GROUP HEREBY WAIVES PERSONAL
-------------------------------------------------------------------------------
SERVICE OF ANY AND ALL PROCESS ON IT. EACH MEMBER OF THE ITI-GROUP ALSO CONSENTS
--------------------------------------------------------------------------------
TO SERVICE OF PROCESS BY REGISTERED MAIL DIRECTED TO ITI's PRINCIPAL OFFICE IN
------------------------------------------------------------------------------
CONCORD, ONTARIO, CANADA AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED TEN
--------------------------------------------------------------------------------
(10) DAYS AFTER THE SAME SHALL HAVE BEEN POSTED.
------------------------------------------------

IN WITNESS WHEREOF, the parties hereto have executed this Merchandise Agreement
to be effective as of May 1, 2001.

     InterTAN, Inc.

     By:      /s/ Brian E. Levy
         ------------------------------
     Title:   President & CEO
            ---------------------------

     InterTAN Canada Ltd.

     By:      /s/ Brian E. Levy
         ------------------------------
     Title:   Director and President
            ---------------------------

     RadioShack Corporation

     By:      /s/ David S. Goldberg
         ------------------------------
     Its:     Vice President - Law
          -----------------------------

                                      -35-

<PAGE>

     RadioShack International Procurement Limited Partnership
        By: RadioShack Corporation, its General Partner

     By:   /s/ David S. Goldberg
         ---------------------------------

     Its:  Vice President - Law
          --------------------------------

                                      -36-

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