Document:

EXHIBIT
      10.1

     

    Interactive
      Television Networks, Inc.

     

    Shares
      of Common Stock 

     

    (Amendment
      to Certificate of Designation)

     

    SUBSCRIPTION
      AGREEMENT

     

    December
      14, 2006

    

     

    M.A.G.
      Capital, LLC

    Mercator
      Momentum Fund, L.P.

    Mercator
      Momentum Fund III, L.P.

    Monarch
      Pointe Fund, Ltd.

    c/o
      M.A.G. Capital, LLC

    555
      South
      Flower Street, Suite 4200

    Los
      Angeles, California 90071

    

    Ladies
      and Gentlemen:

     

    Interactive
      Television Networks, Inc., a Nevada corporation (the "Company"),
      hereby confirms its agreement with Mercator Momentum Fund, L.P. ("MMF"),
      Mercator Momentum Fund III, L.P. ("MMF
      III"),
      and
      Monarch Pointe Fund, Ltd. ("Monarch")
      as set
      forth below. Each of MMF, MMF III and Monarch are sometimes referred to herein
      as a "Purchaser"
      and
      together as the "Purchasers".
      The
      Purchasers currently are the record and beneficial owners of an aggregate of
      3,333,333 shares of the Company’s Series A Convertible Preferred Stock (the
      "Series
      A Stock"),
      which
      shares represent all of the currently issued and outstanding shares of the
      Series A Stock.

     

    1. The
      Transaction.
      Subject
      to the terms and conditions herein contained, the Company agrees that it shall:
      (a) Issue and sell to the Purchasers 933,333 shares (the “Securities”)
      of the
      Company's common stock, par value $0.001 per share (the "Common
      Stock");
      and
      (b) Amend the Certificate of Designation of Preferences and Rights of Series
      A
      Convertible Preferred Stock as currently on file with the Secretary of State
      of
      the State of Nevada (the "Series
      A Certificate of Designation")
      to
      reduce the Conversion Price (as defined in the Series A Certificate of
      Designation) from $3.75 to $0.75 per share. The form of the amendment of the
      Series A Certificate of Designation is attached hereto as Exhibit
      A.
      The
      3,333,333 shares of its Series A Convertible Preferred Stock (the "Series
      A Stock")
      shall
      continue to be convertible into shares (the "Conversion
      Shares")
      of the
      Common Stock in accordance with the formula set forth in the Series A
      Certificate of Designation. The number of Conversion Shares that any Purchaser
      may acquire at any time are subject to limitation in the Series A Certificate
      of
      Designation so that the aggregate number of shares of Common Stock of which
      such
      Purchaser and all persons affiliated with such Purchaser have beneficial
      ownership (calculated pursuant to Rule 13d-3 of the Securities Exchange Act
      of
      1934, as amended) does not at any time exceed 9.99% of the Company's then
      outstanding Common Stock.

     

    
      
         

      

      
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    This
      Agreement, the amendment to the Series A Certificate
      of
      Designation, and the Registration Rights Agreement by and among the Company
      and
      the Purchasers, entered into concurrently herewith and attached hereto as
Exhibit
      B,
      are
      sometimes herein collectively referred to as the "Transaction
      Documents."

     

    The
      Securities will be offered and sold to the Purchasers without such offers and
      sales being registered under the Securities Act of 1933, as amended (together
      with the rules and regulations of the Securities and Exchange Commission (the
      "SEC")
      promulgated thereunder, the "Securities
      Act"),
      in
      reliance on exemptions therefrom.

     

    In
      connection with the sale of the Securities, the Company has made available
      (including electronically via the SEC's EDGAR system) to Purchasers the
      Company's periodic and current reports, forms, schedules, proxy statements
      and
      other documents (including exhibits and all other information incorporated
      by
      reference) filed with the SEC under the Securities Exchange Act of 1934, as
      amended (the "Exchange
      Act").
      The
      Company's Annual Report on Form 10-KSB for the fiscal year ended December 31,
      2005, and all subsequent reports, forms, schedules, statements, documents,
      filings and amendments filed by the Company with the SEC under the Exchange
      Act,
      are collectively referred to as the "Disclosure
      Documents."
      All
      references in this Agreement to financial statements and schedules and other
      information which is "contained," "included" or "stated" in the Disclosure
      Documents (or other references of like import) shall be deemed to mean and
      include all such financial statements and schedules, documents, exhibits and
      other information which is incorporated by reference in the Disclosure
      Documents.

     

    2. Representations
      and Warranties of the Company.
      Except
      as set forth in the Disclosure Schedule, the Company represents and warrants
      to
      and agrees with Purchasers as follows:

     

    (a) The
      Disclosure Documents as of their respective dates did not, and will not (after
      giving effect to any updated disclosures therein) as of the Closing Date,
      contain any untrue statement of a material fact or omit to state a material
      fact
      necessary to make the statements therein, in the light of the circumstances
      under which they were made, not misleading. The Disclosure Documents and the
      documents incorporated or deemed to be incorporated by reference therein, at
      the
      time they were filed or hereafter are filed with the SEC, complied and will
      comply, at the time of filing, in all material respects with the requirements
      of
      the Securities Act and/or the Exchange Act, as the case may be, as
      applicable.

     

    (b) Schedule
      A
      of the
      Disclosure Schedules sets forth a complete list of the subsidiaries of the
      Company (the "Subsidiaries").
      Each
      of the Company and its Subsidiaries has been duly incorporated and each of
      the
      Company and the Subsidiaries is validly existing and in good standing as a
      corporation under the laws of its jurisdiction of incorporation, with the
      requisite corporate power and authority to own its properties and conduct its
      business as now conducted as described in the Disclosure Documents and is duly
      qualified to do business as a foreign corporation in good standing in all other
      jurisdictions where the ownership or leasing of its properties or the conduct
      of
      its business requires such qualification, except where the failure to be so
      qualified would not, individually or in the aggregate, have a material adverse
      effect on the business, condition (financial or other), properties or results
      of
      operations of the Company and the Subsidiaries, taken as a whole (any such
      event, a "Material
      Adverse Effect");
      as of
      the Closing Date, the Company will have the authorized, issued and outstanding
      capitalization set forth in on Schedule
      B
      (the
      "Company
      Capitalization");
      except as set forth in the Disclosure Documents or on Schedule
      A,
      the
      Company does not have any Subsidiaries or own directly or indirectly any of
      the
      capital stock or other equity or long-term debt securities of or have any equity
      interest in any other person; all of the outstanding shares of capital stock
      of
      the Company and the Subsidiaries have been duly authorized and validly issued,
      are fully paid and nonassessable and were not issued in violation of any
      preemptive or similar rights and are owned free and clear of all liens,
      encumbrances, equities, and restrictions on transferability (other than those
      imposed by the Securities Act and the state securities or "blue sky" laws)
      or
      voting; except as set forth in the Disclosure Documents, all of the outstanding
      shares of capital stock of the Subsidiaries are owned, directly or indirectly,
      by the Company; except as set forth in the Disclosure Documents, no options,
      warrants or other rights to purchase from the Company or any Subsidiary,
      agreements or other obligations of the Company or any Subsidiary to issue or
      other rights to convert any obligation into, or exchange any securities for,
      shares of capital stock of or ownership interests in the Company or any
      Subsidiary are outstanding; and except as set forth in the Disclosure Documents
      or on Schedule
      C,
      there
      is no agreement, understanding or arrangement among the Company or any
      Subsidiary and each of their respective stockholders or any other person
      relating to the ownership or disposition of any capital stock of the Company
      or
      any Subsidiary or the election of directors of the Company or any Subsidiary
      or
      the governance of the Company's or any Subsidiary's affairs, and, if any, such
      agreements, understandings and arrangements will not be breached or violated
      as
      a result of the execution and delivery of, or the consummation of the
      transactions contemplated by, the Transaction Documents. 

     

    
      
         

      

      
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    (c) The
      Company has the requisite corporate power and authority to execute, deliver
      and
      perform its obligations under the Transaction Documents. Each of the Transaction
      Documents has been duly and validly authorized by the Company and, when executed
      and delivered by the Company, will constitute a valid and legally binding
      agreement of the Company, enforceable against the Company in accordance with
      its
      terms except as the enforcement thereof may be limited by (A) bankruptcy,
      insolvency, reorganization, fraudulent conveyance, moratorium or other similar
      laws now or hereafter in effect relating to or affecting creditors' rights
      generally or (B) general principles of equity and the discretion of the
      court before which any proceeding therefore may be brought (regardless of
      whether such enforcement is considered in a proceeding at law or in equity)
      (collectively, the "Enforceability
      Exceptions").

     

    (d) The
      shares of Securities have been duly authorized and, when issued upon payment
      thereof in accordance with this Agreement, will have been validly issued, fully
      paid and non-assessable. The additional Conversion Shares that will be issuable
      as a result of the decrease in the Conversion Price have been duly authorized
      and validly reserved for issuance, and when issued upon conversion of the Series
      A Stock in accordance with the terms of the amended Series A Certificate of
      Designation, will have been validly issued, fully paid and non-assessable.
      The
      Common Stock of the Company conforms to the description thereof contained in
      the
      Disclosure Documents. The stockholders of the Company have no preemptive or
      similar rights with respect to the Common Stock.

     

    
      
         

      

      
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    (e) No
      consent, approval, authorization, license, qualification, exemption or order
      of
      any court or governmental agency or body or third party is required for the
      performance of the Transaction Documents by the Company or for the consummation
      by the Company of any of the transactions contemplated thereby, or the
      application of the proceeds of the issuance of the Securities as described
      in
      this Agreement, except for such consents, approvals, authorizations, licenses,
      qualifications, exemptions or orders (i) as have been obtained on or prior
      to the Closing Date, (ii) as are not required to be obtained on or prior to
      the Closing Date that will be obtained when required, or (iii) the failure
      to obtain which would not, individually or in the aggregate, have a Material
      Adverse Effect.

     

    (f) Except
      as
      set forth on Schedule
      D
      of the
      Disclosure Schedule, none of the Company or the Subsidiaries is (i) in material
      violation of its articles of incorporation or bylaws (or similar organizational
      document), (ii) in breach or violation of any statute, judgment, decree, order,
      rule or regulation applicable to it or any of its properties or assets, which
      breach or violation would, individually or in the aggregate, have a Material
      Adverse Effect, or (iii) except as described in the Disclosure Documents, in
      default (nor has any event occurred which with notice or passage of time, or
      both, would constitute a default) in the performance or observance of any
      obligation, agreement, covenant or condition contained in any contract,
      indenture, mortgage, deed of trust, loan agreement, note, lease, license,
      franchise agreement, permit, certificate or agreement or instrument to which
      it
      is a party or to which it is subject, which default would, individually or
      in
      the aggregate, have a Material Adverse Effect.

     

    (g) The
      execution, delivery and performance by the Company of the Transaction Documents
      and the consummation by the Company of the transactions contemplated thereby
      and
      the fulfillment of the terms thereof will not (a) violate, conflict with or
      constitute or result in a breach of or a default under (or an event that, with
      notice or lapse of time, or both, would constitute a breach of or a default
      under) any of (i) the terms or provisions of any contract, indenture,
      mortgage, deed of trust, loan agreement, note, lease, license, franchise
      agreement, permit, certificate or agreement or instrument to which any of the
      Company or the Subsidiaries is a party or to which any of their respective
      properties or assets are subject, (ii) the Certificate of Incorporation or
      bylaws of any of the Company or the Subsidiaries (or similar organizational
      document) or (iii) any statute, judgment, decree, order, rule or regulation
      of any court or governmental agency or other body applicable to the Company
      or
      the Subsidiaries or any of their respective properties or assets or
      (b) result in the imposition of any lien upon or with respect to any of the
      properties or assets now owned or hereafter acquired by the Company or any
      of
      the Subsidiaries; which violation, conflict, breach, default or lien would,
      individually or in the aggregate, have a Material Adverse Effect.

     

    (h) The
      audited consolidated financial statements included in the Disclosure Documents
      present fairly the consolidated financial position, results of operations,
      cash
      flows and changes in shareholders' equity of the entities, at the dates and
      for
      the periods to which they relate and have been prepared in all material respects
      in accordance with generally accepted accounting principles applied on a
      consistent basis; the interim un-audited consolidated financial statements
      included in the Disclosure Documents present fairly the consolidated financial
      position, results of operations and cash flows of the entities, at the dates
      and
      for the periods to which they relate subject to year-end audit adjustments
      and
      have been prepared in all material respects in accordance with generally
      accepted accounting principles applied on a consistent basis with the audited
      consolidated financial statements included therein; the selected financial
      and
      statistical data included in the Disclosure Documents present fairly the
      information shown therein and have been prepared and compiled in all material
      respects on a basis consistent with the audited financial statements included
      therein, except as otherwise stated therein; and each of the auditors previously
      engaged by the Company or to be engaged in the future by the Company is an
      independent certified public accountant as required by the Securities Act for
      an
      offering registered thereunder.

     

    
      
         

      

      
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    (i) Except
      as
      described in the Disclosure Documents, there is not pending or, to the knowledge
      of the Company, threatened any action, suit, proceeding, inquiry or
      investigation, governmental or otherwise, to which any of the Company or the
      Subsidiaries is a party, or to which their respective properties or assets
      are
      subject, before or brought by any court, arbitrator or governmental agency
      or
      body, that, if determined adversely to the Company or any such Subsidiary,
      would, individually or in the aggregate, have a Material Adverse Effect or
      that
      seeks to restrain, enjoin, prevent the consummation of or otherwise challenge
      the issuance or sale of the Securities to be sold hereunder or the application
      of the proceeds therefrom or the other transactions described in the Disclosure
      Documents.

     

    (j) The
      Company and the Subsidiaries own or possess adequate licenses or other rights
      to
      use all patents, trademarks, service marks, trade names, copyrights and know-how
      that are necessary to conduct their businesses as described in the Disclosure
      Documents. None of the Company or the Subsidiaries has received any written
      notice of infringement of (or knows of any such infringement of) asserted rights
      of others with respect to any patents, trademarks, service marks, trade names,
      copyrights or know-how that, if such assertion of infringement or conflict
      were
      sustained, would, individually or in the aggregate, have a Material Adverse
      Effect.

     

    (k) Each
      of
      the Company and the Subsidiaries possesses all licenses, permits, certificates,
      consents, orders, approvals and other authorizations from, and has made all
      declarations and filings with, all federal, state, local and other governmental
      authorities, all self-regulatory organizations and all courts and other
      tribunals presently required or necessary to own or lease, as the case may
      be,
      and to operate its respective properties and to carry on its respective
      businesses as now or proposed to be conducted as set forth in the Disclosure
      Documents ("Permits"),
      except where the failure to obtain such Permits would not, individually or
      in
      the aggregate, have a Material Adverse Effect and none of the Company or the
      Subsidiaries has received any notice of any proceeding relating to revocation
      or
      modification of any such Permit, except as described in the Disclosure Documents
      and except where such revocation or modification would not, individually or
      in
      the aggregate, have a Material Adverse Effect.

     

    (l) Subsequent
      to September 30, 2006 and except as described in the Company’s Quarterly Report
      on Form 10-QSB for the quarter ended September 30, 2006 or in Schedule
      E,
      (i) the Company and the Subsidiaries have not incurred any material
      liabilities or obligations, direct or contingent, or entered into any material
      transactions not in the ordinary course of business or (ii) the Company and
      the Subsidiaries have not purchased any of their respective outstanding capital
      stock, or declared, paid or otherwise made any dividend or distribution of
      any
      kind on any of their respective capital stock or otherwise (other than, with
      respect to any of such Subsidiaries, the purchase of capital stock by the
      Company), (iii) there has not been any material increase in the long-term
      indebtedness of the Company or any of the Subsidiaries, (iv) there has not
      occurred any event or condition, individually or in the aggregate, that has
      a
      Material Adverse Effect, and (v) the Company and the Subsidiaries have not
      sustained any material loss or interference with respect to their respective
      businesses or properties from fire, flood, hurricane, earthquake, accident
      or
      other calamity, whether or not covered by insurance, or from any labor dispute
      or any legal or governmental proceeding.

     

    
      
         

      

      
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    (m) There
      are
      no material legal or governmental proceedings nor are there any material
      contracts or other documents required by the Securities Act to be described
      in a
      prospectus that are not described in the Disclosure Documents. Except as
      described in the Disclosure Documents, none of the Company or the Subsidiaries
      is in default under any of the contracts described in the Disclosure Documents,
      has received a notice or claim of any such default or has knowledge of any
      breach of such contracts by the other party or parties thereto, except for
      such
      defaults or breaches as would not, individually or in the aggregate, have a
      Material Adverse Effect.

     

    (n) Each
      of
      the Company and the Subsidiaries has good and marketable title to all real
      property described in the Disclosure Documents as being owned by it and good
      and
      marketable title to the leasehold estate in the real property described therein
      as being leased by it, free and clear of all liens, charges, encumbrances or
      restrictions, except, in each case, as described in the Disclosure Documents
      or
      such as would not, individually or in the aggregate, have a Material Adverse
      Effect. All material leases, contracts and agreements to which the Company
      or
      any of the Subsidiaries is a party or by which any of them is bound are valid
      and enforceable against the Company or any such Subsidiary, are, to the
      knowledge of the Company, valid and enforceable against the other party or
      parties thereto and are in full force and effect, in each case subject to the
      Enforceability Exceptions.

     

    (o) Each
      of
      the Company and the Subsidiaries has filed all necessary federal, state and
      foreign income and franchise tax returns, except where the failure to so file
      such returns would not, individually or in the aggregate, have a Material
      Adverse Effect, and has paid all taxes shown as due thereon; and other than
      tax
      deficiencies which the Company or any Subsidiary is contesting in good faith
      and
      for which adequate reserves have been provided in accordance with generally
      accepted accounting principles, there is no tax deficiency that has been
      asserted against the Company or any Subsidiary that would, individually or
      in
      the aggregate, have a Material Adverse Effect.

     

    (p) None
      of
      the Company or the Subsidiaries is, or immediately after the Closing Date will
      be, required to register as an "investment company" or a company "controlled
      by"
      an "investment company" within the meaning of the Investment Company Act of
      1940, as amended (the "Investment
      Company Act").

     

    (q) Since
      January 2002 none of the Company or the Subsidiaries or, to the knowledge of
      any
      of such entities' directors, officers, employees, agents or controlling persons,
      has taken, directly or indirectly, any action for the purpose of causing the
      stabilization or manipulation of the price of the Common Stock.

     

    (r) None
      of
      the Company, the Subsidiaries or any of their respective Affiliates (as defined
      in Rule 501(b) of Regulation D under the Securities Act) directly, or
      through any agent, engaged in any form of general solicitation or general
      advertising (as those terms are used in Regulation D under the Securities
      Act) in connection with the offering of the Securities or engaged in any other
      conduct that would cause such offering to constitute a public offering within
      the meaning of Section 4(2) of the Securities Act. Assuming the accuracy of
      the representations and warranties of the Purchaser in Section 6 hereof, it
      is not necessary in connection with the offer, sale and delivery of the
      Securities to the Purchaser in the manner contemplated by this Agreement to
      register any of the Securities under the Securities Act.

     

    
      
         

      

      
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    (s) There
      is
      no strike, labor dispute, slowdown or work stoppage with the employees of the
      Company or any of the Subsidiaries which is pending or, to the knowledge of
      the
      Company or any of the Subsidiaries, threatened.

     

    (t) Each
      of
      the Company and the Subsidiaries carries general liability insurance coverage
      comparable to other companies of its size and similar business.

     

    (u) Each
      of
      the Company and the Subsidiaries maintains internal accounting controls which
      provide reasonable assurance that (A) transactions are executed in
      accordance with management's authorization, (B) transactions are recorded
      as necessary to permit preparation of its financial statements and to maintain
      accountability for its assets, and (C) access to its material assets is
      permitted only in accordance with management's authorization and (D) the
      values and amounts reported for its material assets are compared with its
      existing assets at reasonable intervals.

     

    (v) The
      Company does not know of any claims for services, either in the nature of a
      finder's fee or financial advisory fee, with respect to the offering of the
      Securities and the transactions contemplated by the Transaction
      Documents.

     

    (w) The
      Common Stock is traded on the Over-the-Counter Bulletin Board (the "OTC
      BB").
      Except as described in the Disclosure Documents, the Company currently is not
      in
      violation of, and the consummation of the transactions contemplated by the
      Transaction Documents will not violate, any rule of the National Association
      of
      Securities Dealers. 

     

    (x) The
      Company is eligible to use Form SB-2 for the resale of the Securities and the
      Conversion Shares by Purchaser or their transferees. The Company has no reason
      to believe that it is not capable of satisfying the registration or
      qualification requirements (or an exemption therefrom) necessary to permit
      the
      resale of the Securities and the Conversion Shares under the securities or
      "blue
      sky" laws of any jurisdiction within the United States.

     

    (y) To
      the
      Company's knowledge, none of the officers or directors of the Company
      (i) has been convicted of any crime (other than  traffic
      violations  or misdemeanors not involving
      fraud) or is currently under investigation or indictment for any
      such crime, (ii) has been found by a court or governmental agency to have
      violated any securities or commodities law or to have committed fraud or is
      currently a party to any legal proceeding in which either is alleged, (iii)
      has been the subject of a proceeding under the bankruptcy laws or any
      similar state laws, or (iv) has been an officer, director, general partner,
      or managing member of an entity which has been the subject of such a
      proceeding.

     

    
      
         

      

      
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    3. Purchase,
      Sale, and Delivery of the Securities; Amendment of Certificate of
      Designation.
      (a)  On
      the basis of the representations, warranties, agreements and covenants herein
      contained and subject to the terms and conditions herein set forth, the Company
      agrees to issue and sell to the Purchasers, and Purchasers agree to purchase
      from the Company, a total of 933,333 shares of Common Stock. 

     

    (b) Subject
      to the fulfillment of each of the conditions to closing set forth herein, the
      closing of the transactions described herein (the "Closing")
      shall
      take place on December 14, 2006 or
      such
      later date as may be specified by the parties (the "Closing
      Date").
      On
      the
      Closing Date, Purchasers shall acquire 933,333
      shares of
      Common
      Stock. Within three business days following the
      Closing Date, the Company shall (i) deliver to Purchasers a certificate in
      definitive form for 933,333
      shares of Common Stock
      issued to the respective Purchasers, and (ii) file the amendment to the
      Certificate of Designation in the form set forth as Exhibit A hereto.  On
      the Closing Date, the Company, MMF, MMF III, Monarch shall execute and deliver
      that certain Registration Rights Agreement in the form attached hereto.

     

    (c) In
      consideration for the sale of the Securities and the amendment of the
      Certificate of Designation, the Purchasers shall, on the Closing Date, pay
      to
      the Company, by wire transfer, a total of $700,000.

     

    4. Certain
      Covenants of the Company.
      The
      Company covenants and agrees with Purchasers as follows:

     

    (a) None
      of
      the Company or any of its Affiliates will sell, offer for sale or solicit offers
      to buy or otherwise negotiate in respect of any "security" (as defined in the
      Securities Act) which would be integrated with the sale of the Securities in
      a
      manner which would require the registration under the Securities Act of the
      Securities.

     

    (b) The
      Company will not become, at any time prior to the expiration of three years
      after the Closing Date, an open-end investment company, unit investment trust,
      closed-end investment company or face-amount certificate company that is or
      is
      required to be registered under the Investment Company Act.

     

    (c) None
      of
      the proceeds of the Series A Stock will be used to reduce or retire any insider
      note or convertible debt held by an officer or director of the
      Company.

     

    (d) The
      Securities and the additional Conversion Shares will be eligible for trading
      on
      the OTC BB or such market on which the Company's shares are subsequently listed
      or traded, immediately following the effectiveness of the Registration
      Statement. 

     

    (e) The
      Company will do and perform all things required to be done and performed by
      it
      under this Agreement and the other Transaction Documents and to satisfy all
      conditions precedent on its part to the obligations of the Purchasers to
      purchase and accept delivery of the Securities. 

     

    
      
         

      

      
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    (f) The
      Company shall allocate the $700,000 of proceeds to be received under Section
      3(c) above substantially as follows: (i) $250,000 will be used to fund the
      payments required to be made under the recently announced distribution agreement
      between the Company and Major League Baseball Advanced Media, L.P.; (ii) $50,000
      will be used for the encoding and storage required under the Company’s agreement
      related to the programming of NBC Universal Cable; (iii) $400,000 will be used
      for sales and marketing and for working capital and general corporate
      purposes.

     

     

    5. Conditions
      to Closing.

     

     

    (a) The
      obligation of Purchasers to consummate the Closing is subject to the following
      conditions unless waived in writing by the Purchasers:

     

    (i) The
      representations and warranties of the Company contained in this Agreement shall
      be true and correct in all material respects (other than representations and
      warranties with a Material Adverse Effect qualifier, which shall be true and
      correct as written) on and as of the Closing Date and the Company shall have
      complied in all material respects with all agreements and satisfied all
      conditions on its part to be performed or satisfied hereunder at or prior to
      the
      Closing Date.

     

    (ii) No
      Event
      of Default or breach of any covenant under this Agreement or the Transaction
      Documents shall have occurred.

     

    (iii) The
      Company shall be current in all of its public filings.

     

    (iv) None
      of
the
      issuance
      and sale of the Securities pursuant to this Agreement or any of the transactions
      contemplated by any of the other Transaction Documents shall be enjoined
      (temporarily or permanently) and no restraining order or other injunctive order
      shall have been issued in respect thereof; and there shall not have been any
      legal action, order, decree or other administrative proceeding instituted or,
      to
      the Company's knowledge, threatened against the Company or against Purchaser
      relating to the issuance of the Securities or Purchasers' activities in
      connection therewith or any other transactions contemplated by this Agreement,
      the other Transaction Documents or the Disclosure Documents.

     

    (b) The
      obligation of the Company to consummate the Closing is subject to the condition
      (unless waived in writing by the Company) that the representations and
      warranties of the Purchasers contained in this Agreement shall be true and
      correct in all material respects (other than representations and warranties
      with
      a Material Adverse Effect qualifier, which shall be true and correct as written)
      on and as of the Closing Date and the Purchasers shall have complied in all
      material respects with all agreements and satisfied all conditions on their
      part
      to be performed or satisfied hereunder at or prior to the Closing
      Date.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    

     

    6. Representations
      and Warranties of the Purchasers.

     

    (a) Each
      Purchaser represents and warrants to the Company that the Securities to be
      acquired by it hereunder and the additional Conversion Shares that it may
      acquire upon conversion or exercise of the Series A Stock are being acquired
      for
      their own account for investment and with no intention of distributing or
      reselling such Securities or such additional Conversion Shares in any
      transaction which would be in violation of the securities laws of the United
      States of America or any State. Nothing in this Agreement, however, shall
      prejudice or otherwise limit the Purchasers' right to sell or otherwise dispose
      of all or any part of such Securities and additional Conversion Shares under
      an
      effective registration statement under the Securities Act and in compliance
      with
      applicable state securities laws or under an exemption from such registration.
      By executing this Agreement, each Purchaser further represents that such
      Purchaser does not have any contract, undertaking, agreement or arrangement
      with
      any person to sell, transfer or grant participation to any person with respect
      to any of the Securities.

     

    (b) Each
      Purchaser understands that neither the Securities nor the Conversion Shares
      have
      been registered under the Securities Act and may not be offered, resold, pledged
      or otherwise transferred except (a) pursuant to an exemption from
      registration under the Securities Act (and, if requested by the Company, based
      upon an opinion of counsel acceptable to the Company) or pursuant to an
      effective registration statement under the Securities Act and (b) in
      accordance with all applicable securities laws of the states of the United
      States and other jurisdictions.

     

    Each
      Purchaser agrees to the imprinting, so long as appropriate, of the following
      legend on the Securities and the Conversion Shares that it may acquire upon
      conversion of the Series A Stock:

     

    The
      shares of stock evidenced by this certificate have not been registered under
      the
      U.S. Securities Act of 1933, as amended, and may not be offered, sold, pledged
      or otherwise transferred ("transferred") in the absence of such registration
      or
      an applicable exemption therefrom. In the absence of such registration, such
      shares may not be transferred unless, if the Company requests, the Company
      has
      received a written opinion from counsel in form and substance satisfactory
      to
      the Company stating that such transfer is being made in compliance with all
      applicable federal and state securities laws.

     

    The
      legend set forth above may be removed if and when the Securities or Conversion
      Shares, as the case may be, are disposed of pursuant to an effective
      registration statement under the Securities Act or in the opinion of counsel
      to
      the Company experienced in the area of United States Federal securities laws
      such legends are no longer required under applicable requirements of the
      Securities Act. The Securities and the Conversion Shares shall also bear any
      other legends required by applicable Federal or state securities laws, which
      legends may be removed when in the opinion of counsel to the Company experienced
      in the applicable securities laws, the same are no longer required under the
      applicable requirements of such securities laws. The Company agrees that it
      will
      provide Purchasers, upon request, with a substitute certificate, not bearing
      such legend at such time as such legend is no longer applicable. Each Purchaser
      agrees that, in connection with any transfer of the Securities or the Conversion
      Shares by it pursuant to an effective registration statement under the
      Securities Act, such Purchaser will comply with all prospectus delivery
      requirements of the Securities Act. 

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    

     

    (c) Each
      Purchaser represents and warrants to the Company that it is an "accredited
      investor" within the meaning of Rule 501(a) of Regulation D under the Securities
      Act. Each Purchaser represents and warrants to the Company that such Purchaser
      did not learn of the opportunity to acquire Securities or any other security
      issuable by the Company through any form of general advertising or public
      solicitation.

     

    (d) Each
      Purchaser represents and warrants to the Company that it has such knowledge,
      sophistication and experience in business and financial matters so as to be
      capable of evaluating the merits and risks of the prospective investment in
      the
      Securities, having been represented by its own independent counsel, and has
      so
      evaluated the merits and risks of such investment and is able to bear the
      economic risk of such investment and, at the present time, is able to afford
      a
      complete loss of such investment.

     

    (e) Each
      Purchaser represents and warrants to the Company that its overall commitment
      to
      investments which are not readily marketable is not disproportionate to its
      net
      worth, and its purchase of the Securities will not cause such overall commitment
      to become excessive.

     

    (f) Each
      Purchaser recognizes that the purchase of the Securities involves a high degree
      of risk.

     

    (g) Each
      Purchaser represents and warrants to the Company that all information it has
      provided to the Company including, but not limited to, its financial position
      and its knowledge of financial and business matters is true, correct and
      complete as of the date of execution of this Agreement. Each Purchaser
      undertakes to provide promptly to the Company written notice of any material
      changes in its financial position or otherwise, and such information shall
      be
      true, correct and complete as of the date given. Each Purchaser understands
      that
      the Company will rely to a material degree upon the representations contained
      therein.

     

    (h) Each
      Purchaser represents and warrants to the Company that (i) the purchase of the
      Securities to be purchased by it hereunder has been duly and properly authorized
      and this Agreement has been duly executed and delivered by it or on its behalf
      and constitutes the valid and legally binding obligation of Purchaser,
      enforceable against Purchaser in accordance with its terms, subject to the
      Enforceability Exceptions, (ii) the purchase of the Securities to be
      purchased by it does not conflict with or violate its charter, by-laws or any
      law, regulation or court order applicable to it; and (iii) the purchase of
      the Securities to be purchased by it does not impose any penalty or other
      onerous condition on Purchaser under or pursuant to any applicable law or
      governmental regulation.

     

    (i) Each
      Purchaser represents and warrants to the Company that neither it nor any of
      its
      directors, officers, employees, agents, partners, members, controlling persons
      or shareholders holding 5% or more of the Common Stock outstanding on the
      Closing Date, has taken or will take, directly or indirectly, any actions
      designed, or might reasonably be expected to cause or result in the
      stabilization or manipulation of the price of the Common Stock.

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    

     

    (j) Each
      Purchaser acknowledges it or its representatives have reviewed and understand
      the Transaction Documents and Disclosure Documents and further acknowledges
      that
      it or its representatives have been afforded (i) the opportunity to ask such
      questions as it has deemed necessary of, and to receive answers from,
      representatives of the Company concerning the terms and conditions of the
      offering of the Securities and the merits and risks of investing in the
      Securities; (ii) access to information about the Company and the Company's
      financial condition, results of operations, business, properties, management
      and
      prospects sufficient to enable it to evaluate its investment in the Securities;
      and (iii) the opportunity to obtain such additional information which the
      Company possesses or can acquire without unreasonable effort or expense that
      is
      necessary to verify the accuracy and completeness of the information contained
      in the Disclosure Documents.

     

    (k) Each
      Purchaser represents and warrants to the Company that it has based its
      investment decision solely upon the information contained in the Disclosure
      Documents and such other information as may have been provided to it or its
      representatives by the Company in response to their inquiries, and has not
      based
      its investment decision on any research or other report regarding the Company
      prepared by any third party ("Third
      Party Reports").
      Each
      Purchaser understands and acknowledges that (i) the Company does not endorse
      any
      Third Party Reports and (ii) its actual results may differ materially from
      those
      projected in any Third Party Report.

     

    (l) Each
      Purchaser represents and warrants to the Company that no oral or written
      representations have been made and no oral or written information has been
      furnished to them or their advisors in connection with this offering that were
      in any way inconsistent with the information set forth in the Disclosure
      Documents.

     

    (m) Each
      Purchaser understands and acknowledges that (i) any forward-looking information
      included in the Disclosure Documents supplied to Purchaser by the Company or
      its
      management is subject to risks and uncertainties, including those risks and
      uncertainties set forth in the Disclosure Documents; and (ii) the Company's
      actual results may differ materially from those projected by the Company or
      its
      management in such forward-looking information.

     

    (n) Each
      Purchaser understands and acknowledges that (i) the Securities are offered
      and sold without registration under the Securities Act in a private placement
      that is exempt from the registration provisions of the Securities Act and
      (ii) the availability of such exemption depends in part on, and that the
      Company and its counsel will rely upon, the accuracy and truthfulness of the
      foregoing representations and each of the Purchasers hereby consents to such
      reliance.

     

    (o) Each
      Purchaser understands that no U.S. federal or state agency, or any agency or
      governmental or regulatory authority in any other country, including without
      limitation, the U.S. Securities and Exchange Commission, has passed upon the
      Securities or made any finding or determination as to the fairness of this
      investment.

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    

     

    (p) Each
      Purchaser represents and warrants to the Company that it is not a prohibited
      investor under the anti-money laundering or anti-terrorism laws of any
      jurisdiction, including without limitation, any country, territory, nation
      or
      national association.

     

    (q) Each
      Purchaser understands that the Company and its assets may be subject to the
      laws
      and regulations of many jurisdictions, including but not limited to
      anti-terrorism laws and anti-money laundering laws. No Purchaser, nor
any
      person or entity who controls Purchaser, nor, to the best of Purchasers'
      knowledge, any person or entity who owns any direct equity interest in it,
      is
      identified on the list of "Specially Designated Nationals and Blocked Persons"
      ("SDNs")
      maintained by the U.S. Department of Treasury's Office of Foreign Assets Control
      ("OFAC"),
      and
      Purchaser is not owned or controlled by any SDN. Each Purchaser is not involved
      in business arrangements or otherwise engaged in transactions with or involving
      countries subject to economic or trade sanctions imposed by the United States
      Government, or with or involving SDNs in violation of the regulations maintained
      by the OFAC. Each Purchaser is in full compliance with the Bank Secrecy Act
      (31
      U.S.C. § 5311 et. seq.) and 18 U.S.C. §§ 1956 and 1957 and the regulations under
      such statutes; and any other applicable anti-terrorist or anti-money laundering
      Laws and regulations.

     

    (r) Each
      Purchaser represents and warrants to the Company that none of the Purchasers,
      nor any of their affiliates has, directly or indirectly, offered to "short
      sell", contracted to "short sell," otherwise engaged in any "short selling"
      or
      encouraged others to "short sell" the securities of the Company, including,
      without limitation, shares of Common Stock that will be received as a result
      of
      the conversion of the Series A Stock; provided, however, that nothing contained
      herein shall prohibit the Purchasers from selling any shares of the Company's
      Common Stock "against the box." 

     

    (s) Each
      Purchaser has the requisite power and authority to execute, deliver and perform
      its obligations under this Agreement and the Registration Rights Agreement,
      and
      all other documents executed and delivered by such Purchaser in connection
      with
      the purchase of the Securities (collectively, the “Purchaser
      Documents”).
      Each
      of the Purchaser Documents has been duly and validly authorized by the Purchaser
      and, when executed and delivered by such Purchaser, will constitute a valid
      and
      legally binding agreement of the Purchaser, enforceable against the Purchaser
      in
      accordance with its terms except as the enforcement thereof may be limited
      by
Enforceability
      Exceptions.

     

    (t) Neither
      the execution and delivery of the Purchaser Documents nor the consummation
      or
      performance of any of the transactions contemplated thereby will, directly
      or
      indirectly (with or without notice or lapse of time) (i) contravene, conflict
      with, or result in a violation of any provision of the charter documents of
      the
      Purchasers, or (ii) contravene, conflict with, or result in a violation of,
      or
      give any governmental body or other person the right to challenge any of the
      contemplated transactions.

     

    7. Covenants
      of Purchasers.

     

    (a) Not
      to
      Short Sell Stock.
      Purchaser, on behalf of itself, its affiliates, its successors and assigns
      and
      any other direct or indirect transferee holding any of the Securities or any
      shares of Common Stock issuable upon the conversion of any shares of the Series
      A Stock, hereby covenants and agrees not to, directly or indirectly, offer
      to
      "short sell", contract to "short sell" or otherwise "short sell" or encourage
      others to "short sell" the securities of the Company, including, without
      limitation, shares of Common Stock that will be received as a result of the
      conversion of the Series A Stock; provided, however, that nothing contained
      herein shall prohibit the Purchasers from selling any shares of the Company's
      Common Stock "against the box." 

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    

     

    (b) Consent
      to Amendment of Series A Certificate of Designation.
      The
      Purchasers, representing the holders of all of the issued and outstanding shares
      of Series A Stock, hereby consent to the amendment of the Series A Certificate
      of Designation in the form set forth as Exhibit A attached hereto. This consent
      shall constitute the consent required to be given by the holders of the
      preferred stock under with NRS 78.1955(3) of the Nevada Corporate Law. The
      Purchasers hereby further agree to execute and deliver any and all consent
      forms
      or stockholder resolutions reasonably requested by the Company in order to
      evidence their consent to the amendment of the Series A Certificate of
      Designation.

     

    8. Termination.

     

    (a) This
      Agreement may be terminated in the sole discretion of the Company by notice
      to
      Purchasers if at the Closing Date:

     

    (i) the
      representations and warranties made by Purchasers in Section 6 are not true
      and
      correct in all material respects; or

     

    (ii) as
      to the
      Company, the sale of the Securities hereunder (i) is prohibited or enjoined
      by
      any applicable law or governmental regulation or (ii) subjects the Company
      to
      any penalty, or in its reasonable judgment, other onerous condition under or
      pursuant to any applicable law or government regulation that would materially
      reduce the benefits to the Company of the sale of the Securities to Purchasers,
      so long as such regulation, law or onerous condition was not in effect in such
      form at the date of this Agreement.

     

    (b) This
      Agreement may be terminated by the Purchasers by notice to the Company given
      in
      the event that the Company shall have failed, refused or been unable to satisfy
      all material conditions on its part to be performed or satisfied hereunder
      on or
      prior to the Closing Date, or if after the execution and delivery of this
      Agreement and immediately prior to the Closing Date, trading in securities
      of
      the Company on the OTC BB shall have been suspended.

     

    (c) This
      Agreement may be terminated by mutual written consent of all
      parties.

     

    9. Registration.
      The
      Company shall prepare and file with the SEC a Registration Statement on Form
      SB-2 covering the resale of the (i) the Securities and (ii) the maximum number
      of additional Conversion Shares issuable upon conversion of the Series A Stock
      which may be acquired by the Purchasers as a result of the reduction in the
      Conversion Price (collectively, the "Registrable
      Securities"),
      on or
      before January 31, 2007, as set forth in the Registration Rights Agreement.
      

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    

     

    10. Indemnification.
      In
      consideration of the Company acquiring the IBD Securities, the Purchasers
      jointly and severally shall defend, protect, indemnify and hold harmless the
      Company from and against any and all causes of action, suits, claims, losses,
      costs, liabilities and damages incurred by any the Company as a result of,
      or
      arising out of, the gross negligence or willful misconduct of any Purchaser
      with
      respect to the Purchaser's ownership of the IBD Securities free and clear of
      encumbrances.

     

    11. Event
      of Default.
      If an
      Event of Default (as defined below) occurs and remains uncured for a period
      of
      15 days, each Purchaser shall have the right to exercise any or all of the
      rights given to each Purchaser relating to the Securities or the Series A Stock.
      In addition, the Company shall pay the Purchasers an aggregate of $1,500 per
      day
      during which an Event of Default is occurring and remains uncured.

     

    Each
      Purchaser need not provide and the Company hereby waives any presentment,
      demand, protest or other notice of any kind, and each Purchaser may immediately
      and without expiration of any grace period enforce any and all of its rights
      and
      remedies hereunder and all other remedies available to it under applicable
      law.
      Such declaration may be rescinded and annulled by Purchaser at any time prior
      to
      payment hereunder. No such rescission or annulment shall affect any subsequent
      Event of Default or impair any right consequent thereon. 

     

    An
      "Event
      of Default"
      shall
      include the commencement by the Company of a voluntary case or proceeding under
      the bankruptcy laws or the Company's failure to: (i) discharge or stay a
      bankruptcy proceeding within 60 days of such action being taken against the
      Company, (ii) file the Registration Statement with the SEC on or before January
      31, 2007, and (iii) maintain trading of the Company’s Common Stock on the
      OTC BB except for any periods when the stock is listed on the NASDAQ Small
      Stock
      Market, the NASDAQ National Stock Market, the AMEX or the NYSE. 

     

    12.  Notices.
      All
      communications hereunder shall be in writing and shall be hand delivered, mailed
      by first-class mail, couriered by next-day air courier or by facsimile and
      confirmed in writing (i) if to the Company, at the addresses set forth below,
      or
      (ii) if to a Purchaser, to the address set forth on the signature page
      hereto.

     

    
      	 	
              If
                to the Company:

               

            
	 	
              Interactive
                Television Networks, Inc.

            
	 	
              2010
                Main Street, Suite 500

            
	 	
              Irvine,
                California 92614 

            
	 	
              Facsimile:
                (888) 886-1305

            
	 	
              Attention:
                Murray Williams, CFO

            

    

     

    All
      such
      notices and communications shall be deemed to have been duly given: (i) when
      delivered by hand, if personally delivered; (ii) five business days after being
      deposited in the mail, postage prepaid, if mailed certified mail, return receipt
      requested; (iii) one business day after being timely delivered to a next-day
      air
      courier guaranteeing overnight delivery; (iv) the date of transmission if sent
      via facsimile to the facsimile number as set forth in this Section or the
      signature page hereof prior to 6:00 p.m. on a business day, or (v) the business
      day following the date of transmission if sent via facsimile at a facsimile
      number set forth in this Section or on the signature page hereof after 6:00
      p.m.
      or on a date that is not a business day. Change of a party's address or
      facsimile number may be designated hereunder by giving notice to all of the
      other parties hereto in accordance with this Section.

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    

     

    13. Survival
      Clause.
      The
      respective representations, warranties, agreements and covenants of the Company
      and the Purchasers set forth in this Agreement shall survive until December
      31,
      2007, except that the rights and remedies of Purchasers upon the existence
      of an
      Event of Default shall continue to survive.

     

    14. Fees
      and Expenses.
      Each
      party shall pay its own legal expenses incurred in connection with the
      preparation and negotiation of the Transaction Documents.

     

    15. Attorneys'
      Fees.
      If any
      action at law or in equity is necessary to enforce or interpret the terms of
      this Agreement or to the amendment to the Series A Certificate of Designation,
      the prevailing party or parties shall be entitled to receive from the other
      party or parties reasonable attorneys’ fees, costs and necessary disbursements
      in addition to any other relief to which the prevailing party or parties may
      be
      entitled. 

     

    16. Successors.
      This
      Agreement shall inure to the benefit of and be binding upon the Purchasers
      and
      the Company and their respective successors and legal representatives, and
      nothing expressed or mentioned in this Agreement is intended or shall be
      construed to give any other person any legal or equitable right, remedy or
      claim
      under or in respect of this Agreement, or any provisions herein contained;
      this
      Agreement and all conditions and provisions hereof being intended to be and
      being for the sole and exclusive benefit of such persons and for the benefit
      of
      no other person. Neither the Company nor any Purchaser may assign this Agreement
      or any rights or obligation hereunder without the prior written consent of
      the
      other party.

     

    17. No
      Waiver; Modifications in Writing.
      No
      failure or delay on the part of the Company or the Purchasers in exercising
      any
      right, power or remedy hereunder shall operate as a waiver thereof, nor shall
      any single or partial exercise of any such right, power or remedy preclude
      any
      other or further exercise thereof or the exercise of any other right, power
      or
      remedy. The remedies provided for herein are cumulative and are not exclusive
      of
      any remedies that may be available to the Company or the Purchasers at law
      or in
      equity or otherwise. No waiver of or consent to any departure by the Company
      or
      the Purchasers from any provision of this Agreement shall be effective unless
      signed in writing by the party entitled to the benefit thereof, provided
that
      notice of any such waiver shall be given to each party hereto as set forth
      below. Except as otherwise provided herein, no amendment, modification or
      termination of any provision of this Agreement shall be effective unless signed
      in writing by or on behalf of each of the Company and the Purchaser. Any
      amendment, supplement or modification of or to any provision of this Agreement,
      any waiver of any provision of this Agreement, and any consent to any departure
      by the Company or the Purchasers from the terms of any provision of this
      Agreement shall be effective only in the specific instance and for the specific
      purpose for which made or given. Except where notice is specifically required
      by
      this Agreement, no notice to or demand on the Company in any case shall entitle
      the Company to any other or further notice or demand in similar or other
      circumstances.

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    

     

    18. Entire
      Agreement.
      This
      Agreement, together with Transaction Documents, constitutes the entire agreement
      among the parties hereto and supersedes all prior agreements, understandings
      and
      arrangements, oral or written, among the parties hereto with respect to the
      subject matter hereof and thereof.

     

    19. Severability.
      If any
      provision of this Agreement is held to be invalid or unenforceable in any
      respect, the validity and enforceability of the remaining terms and provisions
      of this Agreement shall not in any way be affected or impaired
      thereby.

     

    20. APPLICABLE
      LAW.
      THE
      VALIDITY AND INTERPRETATION OF THIS AGREEMENT, AND THE TERMS AND CONDITIONS
      SET
      FORTH HEREIN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
      OF
      THE STATE OF CALIFORNIA, WITHOUT GIVING EFFECT TO PROVISIONS RELATING TO
      CONFLICTS OF LAW TO THE EXTENT THE APPLICATION OF THE LAWS OF ANOTHER
      JURISDICTION WOULD BE REQUIRED THEREBY. THE PARTIES HEREBY IRREVOCABLY AND
      UNCONDITIONALLY AGREE THAT ACTIONS, SUITS OR PROCEEDINGS ARISING OUT OF OR
      RELATING TO THIS AGREEMENT MAY BE BROUGHT ONLY IN STATE OR FEDERAL COURTS
      LOCATED IN THE CITY OF LOS ANGELES, CALIFORNIA AND HEREBY SUBMIT TO THE
      EXCLUSIVE JURISDICTION OF SUCH COURTS FOR SUCH PURPOSE.

     

    21. Counterparts.
      This
      Agreement may be executed in two or more counterparts and may be delivered
      by
      facsimile transmission, each of which shall be deemed an original, but all
      of
      which together shall constitute one and the same instrument. 

     

    If
      the
      foregoing correctly sets forth our understanding, please indicate your
      acceptance thereof in the space provided below for that purpose, whereupon
      this
      Agreement shall constitute a binding agreement among the Company and the
      Purchasers.

    

    
      	 	
              Very
                truly yours,

               

            
	 	
              Interactive
                Television Networks, Inc.

            
	 	 	 
	 	
              By:

            	
              ___________________________

            
	 	 	
              Name:
                Charles Prast

            
	 	
               

            	
              
                Title:  
                  Chief Executive
                  Officer

              

            

    

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    ACCEPTED
      AND AGREED:

     

    
      	
              Shares
                of Common Stock: -0-

            	 	 
	 	 	
              Mecator
                Momentum Fund, L.P.

            
	 	 	 
	 	
              By:

            	
              __________________________

            
	 	 	
              David
                Firestone

            
	 	 	
              Managing
                Partner

            
	 	 	 
	 	 	
              __________________________

            
	 	 	
              Harry
                Aharonian

            
	 	 	
              Portfolio
                Manager

            
	
              Shares
                of Common Stock: -0-

            	 	 
	 	 	
              Mecator
                Momentum Fund III, L.P.

            
	 	 	 
	 	
              By:

            	
              __________________________

            
	 	 	
              David
                Firestone

            
	 	 	
              Managing
                Partner

            
	 	 	 
	 	 	
              __________________________

            
	 	 	
              Harry
                Aharonian

            
	 	 	
              Portfolio
                Manager

            
	
              Shares
                of Common Stock: 933,333

            	 	 
	 	 	
              Monarch
                Pointe Fund Ltd.

            
	 	 	 
	 	
              By:

            	
              __________________________

            
	 	 	
              David
                Firestone

            
	 	 	
              Managing
                Partner

            
	 	 	 
	 	 	
              __________________________

            
	 	 	
              Harry
                Aharonian

            
	 	 	
              Portfolio
                Manager

            
	 	 	 

    

    

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

    

    
      	 	
              Addresses
                for Notice to any Purchaser:

               

              c/o
                M.A.G. Capital, LLC

              555
                South Flower Street, Suite 4500

              Los
                Angeles, California 90071

              Attention:
                David Firestone

              or:
                Harry Aharonian

              Facsimile:
                (213) 533-8285

              with
                copy to:

               

              Ricardo
                J. Hollingsworth

              Kirkpatrick
                & Lockhart Nicholson Graham LLP

              599
                Lexington Avenue

              New
                York, NY 10022-6030

              Tel
                : 212-536-4859

              Fax:
                212-536-3901

            

    

    

     

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

    Exhibit
      A

     

    Amendment
      to Certificate of Designation of

     

    Series
      A
      Convertible Preferred Stock

     

    

     

    Section
      (f)(iii) of the Certificate of Designation of Series A Convertible Preferred
      Stock is hereby restated in its entirety to read as follows: 

     

    (iii)Conversion
      Price.
      The
      number of shares into which one share of Series A Preferred Stock shall be
      convertible shall be determined by dividing the Series A Purchase Price by
      the
      then existing Conversion Price (as set forth below)
      (the
"Conversion
      Ratio").
      The
      "Conversion
      Price"
      per
      share for the Series A Preferred Stock shall be equal
      to
      $0.75 (subject to appropriate adjustment for stock splits, stock dividends,
      combinations, recapitalizations or other recapitalization affecting the Series
      A
      Preferred Stock and as otherwise set forth herein).
      The
      Conversion Price shall
      be
      further adjusted upon the occurrence of any event in
      paragraph (f)(iv)-(vi)
      or
      (ix).

     

    

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    Exhibit
      B

     

    Registration
      Rights Agreement

     

     

    
      
         

      

      
        -2-EXHIBIT
      10.2

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    AGREEMENT
      dated as
      of December 14,
      2006,
      among Mercator Momentum Fund, L.P. ("MMF"),
      Mercator Momentum Fund III, L.P. ("MMF
      III"),
      Monarch Pointe Fund, Ltd. ("Monarch")
      (collectively, the "Funds")
      (the
      Funds and any other holder being referred to as a "Holder"
      and
      collectively as the "Holders"),
      and
      Interactive Television Networks, Inc., a Nevada corporation (the "Company").

     

    WHEREAS,
      pursuant to a Subscription Agreement dated as of December 14, 2006 among the
      Funds and the Company (the "Subscription
      Agreement"),
      on
      the date hereof the Funds have agreed to purchase 933,333 shares of the
      Company's common stock, par value $0.001 per share (the "Common
      Stock");
      

     

    WHEREAS,
      the
      Holders currently are the record and beneficial owners of an aggregate of
      3,333,333 shares of the Company’s Series A Convertible Preferred Stock (the
      "Series
      A Stock"),
      which
      shares represent all of the currently issued and outstanding shares of the
      Series A Stock.

     

    WHEREAS,
      pursuant to the Subscription Agreement, the Company has agreed to amend the
      Certificate of Designation of Preferences and Rights of Series A Convertible
      Preferred Stock as currently on file with the Secretary of State of the State
      of
      Nevada (the "Certificate
      of Designation")
      to
      reduce the Conversion Price (as defined in the Series A Certificate of
      Designation) of the shares of Series A Stock from $3.75 to $0.75 per share.
      As a
      result of the decrease in the Conversion Price, all additional 13,333,332 shares
      of Common Stock will be issuable to the Holders upon the conversion of all
      of
      the currently issued and outstanding shares of Series A Stock; 

     

    WHEREAS,
      the
      Company desires to grant to the Holders the registration rights set forth herein
      with respect to the 933,333 shares of Common Stock sold in the Subscription
      Agreement and the additional 13,333,332 shares of Common Stock issuable upon
      the
      conversion of the outstanding shares of Series A Stock.

     

    NOW,
      THEREFORE,
      the
      parties hereto mutually agree as follows: 

     

    1. Registrable
      Securities.
      As used
      herein the terms "Registrable
      Security"
      means
      (i) the 933,333 shares of Common Stock issued pursuant to the Subscription
      Agreement, and (ii) the additional 13,333,332 shares of Common Stock issuable
      to
      the Holders upon the conversion of all of the currently issued and outstanding
      shares of Series A Stock as a result of the decrease in the Conversion Price,
      provided, however, that with respect to any particular Registrable Security,
      such security shall cease to be a Registrable Security as of the date of
      determination that (a) it has been effectively registered under the
      Securities Act of 1933, as amended (the "Securities
      Act"),
      and
      disposed of pursuant thereto, or (b) registration under the Securities Act
      is no longer required for the immediate public distribution of such security.
      The term "Registrable
      Securities"
      means
      any and/or all of the securities falling within the foregoing definition of
      a
      "Registrable Security." In the event of any merger, reorganization,
      consolidation, recapitalization or other change in corporate structure affecting
      the Common Stock, such adjustment shall be made in the definition of
      "Registrable Security" as is appropriate in order to prevent any dilution or
      enlargement of the rights granted pursuant to this Section 1.

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    

     

    2. Registration.

     

    (a) The
      Company shall file a registration statement (the "Registration
      Statement")
      with
      the Securities and Exchange Commission (the "SEC")
      no
      later than January 31, 2007 in order to register the resale of the Registrable
      Securities under the Securities Act. The Company shall cause the Registration
      Statement to become effective no later than May 11, 2007. Once effective, the
      Company shall maintain the effectiveness of the Registration Statement until
      the
      earliest of the following dates (the "Expiration
      Date")
      (i) the date that all of the Registrable Securities have been sold, or
      (ii) the date that the Company receives an opinion of counsel to the
      Company that all of the Registrable Securities may be freely traded without
      registration under the Securities Act, under Rule 144 promulgated under the
      Securities Act or otherwise..

     

    (b) The
      Company
      will initially include in the Registration Statement as Registrable Securities
      14,266,665
      shares
      of Common Stock, which number represents the 933,333 shares sold pursuant to
      the
      Subscription Agreement and the additional
      13,333,332 shares of Common Stock issuable to the Holders upon the conversion
      of
      all of the currently issued and outstanding shares of Series A Stock.

     

    (c) If
      the
      Company fails to (i) file the Registration Statement with the SEC by January
      31,
      2007, or (ii) cause
      the
      Registration Statement to become effective on or before May 11, 2007,
the
      Company shall pay to Holders an amount equal to One Thousand Five Hundred
      Dollars ($1,500) per day until the Registration Statement is declared
      effective.

     

    3. Covenants
      of the Company with Respect to Registration.

     

    The
      Company covenants and agrees as follows: 

     

    (a) If
      any
      stop order shall be issued by the SEC in connection therewith, the Company
      shall
      use commercially reasonable efforts to obtain promptly the removal of such
      order. Following the effective date of the Registration Statement, the Company
      shall, upon the request of any Holder, forthwith supply such reasonable number
      of copies of the Registration Statement, preliminary prospectus and prospectus
      meeting the requirements of the Securities Act, and any other documents
      necessary or incidental to the public offering of the Registrable Securities,
      as
      shall be reasonably requested by the Holder to permit the Holder to make a
      public distribution of the Holder's Registrable Securities. The obligations
      of
      the Company hereunder with respect to the Holder's Registrable Securities are
      subject to the Holder's furnishing to the Company such appropriate information
      concerning the Holder, the Holder's Registrable Securities and the terms of
      the
      Holder's offering of such Registrable Securities as the Company may reasonably
      request in writing.

     

    (b) The
      Company shall pay all costs, fees and expenses in connection with the
      Registration Statement filed pursuant to Section 2 hereof including,
      without limitation, the Company's legal and accounting fees, printing expenses,
      and blue sky fees and expenses; provided, however, that each Holder shall be
      solely responsible for the fees of any counsel retained by the Holder in
      connection with such registration and any transfer taxes or underwriting
      discounts, commissions or fees applicable to the Registrable Securities sold
      by
      the Holder pursuant thereto.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    

     

    (c) The
      Company will take all actions which may be required to qualify or register
      the
      Registrable Securities included in the Registration Statement for the offer
      and
      sale under the securities or blue sky laws of such states as are reasonably
      requested by each Holder of such securities, provided that the Company shall
      not
      be obligated to execute or file any general consent to service of process or
      to
      qualify as a foreign corporation to do business under the laws of any such
      jurisdiction. 

     

    4. Additional
      Terms.

     

    (a) The
      Company shall indemnify and hold harmless the Holders and each underwriter,
      within the meaning of the Securities Act, who may purchase from or sell for
      any
      Holder, any Registrable Securities, from and against any and all losses, claims,
      damages and liabilities caused by any untrue statement of a material fact
      contained in the Registration Statement, any other registration statement filed
      by the Company under the Securities Act with respect to the registration of
      the
      Registrable Securities, any post-effective amendment to such registration
      statements, or any prospectus included therein or caused by any omission to
      state therein a material fact required to be stated therein or necessary to
      make
      the statements therein not misleading, except insofar as such losses, claims,
      damages or liabilities are caused by any such untrue statement or omission
      based
      upon information furnished or required to be furnished in writing to the Company
      by the Holders or underwriter expressly for use therein, which indemnification
      shall include each person, if any, who controls any Holder or underwriter within
      the meaning of the Securities Act and each officer, director, employee and
      agent
      of each Holder and underwriter; provided, however, that the indemnification
      in
      this Section 4(a) with respect to any prospectus shall not inure to the
      benefit of any Holder or underwriter (or to the benefit of any person
      controlling any Holder or underwriter) on account of any such loss, claim,
      damage or liability arising from the sale of Registrable Securities by the
      Holder or underwriter, if a copy of a subsequent prospectus correcting the
      untrue statement or omission in such earlier prospectus was provided to such
      Holder or underwriter by the Company prior to the subject sale and the
      subsequent prospectus was not delivered or sent by the Holder or underwriter
      to
      the purchaser prior to such sale and provided further, that the Company shall
      not be obligated to so indemnify any Holder or any such underwriter or other
      person referred to above unless the Holder or underwriter or other person,
      as
      the case may be, shall at the same time indemnify the Company, its directors,
      each officer signing the Registration Statement and each person, if any, who
      controls the Company within the meaning of the Securities Act, from and against
      any and all losses, claims, damages and liabilities caused by any untrue
      statement of a material fact contained in the Registration Statement, any
      registration statement or any prospectus required to be filed or furnished
      by
      reason of this Agreement or caused by any omission to state therein a material
      fact required to be stated therein or necessary to make the statements therein
      not misleading, insofar as such losses, claims, damages or liabilities are
      caused by any untrue statement or omission based upon information furnished
      in
      writing to the Company by the Holder or underwriter expressly for use therein.
      

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    

     

    (b) The
      Holders shall indemnify and hold harmless the Company, from and against any
      and
      all losses, claims, damages and liabilities caused by any untrue statement
      of a
      material fact contained in the Registration Statement, any registration
      statement or any prospectus required to be filed or furnished by reason of
      this
      Agreement or caused by any omission to state therein a material fact required
      to
      be stated therein or necessary to make the statements therein not misleading,
      insofar as such losses, claims, damages or liabilities are caused by any
      material untrue statement or material omission based upon information furnished
      in writing to the Company by any Holder expressly for use therein.

     

    (c) If
      for
      any reason the indemnification provided for in the preceding section is held
      by
      a court of competent jurisdiction to be unavailable to an indemnified party
      with
      respect to any loss, claim, damage, liability or expense referred to therein,
      then the indemnifying party, in lieu of indemnifying such indemnified party
      thereunder, shall contribute to the amount paid or payable by the indemnified
      party as a result of such loss, claim, damage or liability in such proportion
      as
      is appropriate to reflect the relative fault of the indemnified party and the
      indemnifying party, as well as any other relevant equitable considerations.
      

     

    (d) Promptly
      after receipt by an indemnified party under this Section 4 of notice of the
      commencement of any action (including
      any
      governmental action), such indemnified party will, if a claim in respect thereof
      is to be made against any indemnifying party under this Section 4, deliver
      to the indemnifying party a written notice of the commencement thereof, and
      the
      indemnifying party shall have the right to participate in, and, to the extent
      the indemnifying party so desires, to assume the defense thereof with counsel
      mutually satisfactory to the parties; provided,
      however,
      that an
      indemnified party shall have the right to retain its own counsel, with the
      fees
      and expenses to be paid by the indemnifying party, if representation of such
      indemnified party by the counsel retained by the indemnifying
      party
      would be inappropriate due to actual or potential conflict of interests between
      such indemnified party and any other party represented by such counsel in such
      proceeding. The failure to deliver written notice to the indemnifying party
      within a reasonable time of the commencement of any such action shall relieve
      such indemnifying party of liability to the indemnified party under this
      Section 4 only to the extent the indemnifying party is prejudiced as a
      result thereof.

     

    (e) Neither
      the filing of a Registration Statement by the Company pursuant to this Agreement
      nor the making of any request for prospectuses by the Holder shall impose upon
      any Holder any obligation to sell the Holder's Registrable Securities.

     

    (f) Each
      Holder, upon receipt of notice from the Company that an event has occurred
      which
      requires a Post-Effective Amendment to the Registration Statement or a
      supplement to the prospectus included therein, shall promptly discontinue the
      sale of Registrable Securities until the Holder receives a copy of a
      supplemented or amended prospectus from the Company, which the Company shall
      provide as soon as practicable after such notice. 

     

    (g) If
      the
      Company fails to keep the Registration Statement referred to above continuously
      effective during the requisite period, then the Company shall, promptly upon
      the
      request of any Holder, use commercially reasonable efforts to update the
      Registration Statement or file a new registration statement covering the
      Registrable Securities remaining unsold, subject to the terms and provisions
      hereof, so that the registration of such unsold Registered Securities is
      maintained for a number of days beyond the Expiration Date equal to the number
      of days that the Holder is unable to sell pursuant to Section 4(f)
      above.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    

     

    (h) Each
      Holder agrees to provide the Company with any information or undertakings
      reasonably requested by the Company in order for the Company to include any
      appropriate information concerning the Holder in the Registration Statement
      or
      in order to promote compliance by the Company or the Holder with the Securities
      Act. 

     

    (i) Each
      Holder, by its acceptance of the Registrable Securities, agrees to cooperate
      with the Company as reasonably requested by the Company in connection with
      the
      preparation and filing of a Registration Statement hereunder.

     

    (j) Each
      Holder, on behalf of itself, its affiliates, its successors and assigns and
      any
      other direct or indirect transferee holding any of the Series A Stock or the
      Registrable Securities, hereby covenants and agrees not to, directly or
      indirectly, offer to "short sell", contract to "short sell" or otherwise "short
      sell" or encourage others to "short sell" any securities of the Company,
      including, without limitation, shares of Common Stock that will be received
      as a
      result of the conversion of the Series A Stock; provided, however, that nothing
      contained herein shall prohibit the Funds from selling any Registrable
      Securities "against the box." 

     

    5. Governing
      Law.
      The
      Registrable Securities will be, if and when issued, delivered in California.
      This
      Agreement shall be deemed to have been made and delivered in the State of
California
      and
      shall be governed as to validity, interpretation, construction, effect and
      in
      all other respects by the internal substantive laws of the State of California,
      without
      giving effect to the choice of law rules thereof. 

     

    6. Amendment.
      This
      Agreement may only be amended by a written instrument executed by the Company
      and the Holders. 

     

    7. Entire
      Agreement.
      This
      Agreement constitutes the entire agreement of the parties hereto with respect
      to
      the subject matter hereof, and supersedes all prior agreements and
      understandings of the parties, oral and written, with respect to the subject
      matter hereof. 

     

    8. Execution
      in Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      document. 

     

    9. Notices.
      All
      communications hereunder shall be in writing and shall be hand delivered, mailed
      by first-class mail, couriered by next-day air courier or by facsimile at the
      addresses set forth below. 

     

    
      	 	
              If
                to the Funds

            	
              c/o
                M.A.G. Capital, LLC

            
	 	 	
              555 South
                Flower Street, Suite 4500

            
	 	 	
              Los Angeles,
                CA 90071

            
	 	 	
              Facsimile:
                (213) 533-8285

            
	 	 	
              Attention:
                David Firestone

            
	 	 	
               
                or: Harry Aharonian

            

    

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    

     

    
      	 	 	
              With
                a copy to

               

            
	 	 	
              Ricardo
                J. Hollingsworth

            
	 	 	
              Kirkpatrick
                & Lockhart Nicholson Graham LLP

            
	 	 	
              599
                Lexington Avenue

            
	 	 	
              New
                York, NY 10022-6030

            
	 	 	
              Tel
                : 212-536-4859

            
	 	 	
              Fax:
                212-536-3901

            
	 	 	 
	 	
              If
                to the Company,

            	
              Interactive
                Television Networks, Inc.

            
	 	 	
              2010
                Main Street, Suite 500

            
	 	 	
              Irvine,
                California 92614 

            
	 	 	
              Facsimile:
                (888) 886-1305

            
	 	
               

            	
              Attention:
                Murray Williams, CFO

            

    

    

    All
      such
      notices and communications shall be deemed to have been duly given: (i) when
      delivered by hand, if personally delivered; (ii) five business days after being
      deposited in the mail, postage prepaid, if mailed certified mail, return receipt
      requested; (iii) one business day after being timely delivered to a next-day
      air
      courier guaranteeing overnight delivery; (iv) the date of transmission if sent
      via facsimile to the facsimile number as set forth in this Section or the
      signature page hereof prior to 4:00 p.m. on a business day, or (v) the business
      day following the date of transmission if sent via facsimile at a facsimile
      number set forth in this Section or on the signature page hereof after 4:00
      p.m.
      or on a date that is not a business day. Change of a party's address or
      facsimile number may be designated hereunder by giving notice to all of the
      other parties hereto in accordance with this Section.

    

    10. Binding
      Effect; Benefits.
      Any
      Holder may assign its rights hereunder. This Agreement shall inure to the
      benefit of, and be binding upon, the parties hereto and their respective heirs,
      legal representatives, successors and permitted assigns. Nothing herein
      contained, express or implied, is intended to confer upon any person other
      than
      the parties hereto and their respective heirs, legal representatives and
      successors, any rights or remedies under or by reason of this Agreement.

     

    11. Headings.
      The
      headings contained herein are for the sole purpose of convenience of reference,
      and shall not in any way limit or affect the meaning or interpretation of any
      of
      the terms or provisions of this Agreement. 

     

    12. Severability.
      Any
      provision of this Agreement which is held by a court of competent jurisdiction
      to be prohibited or unenforceable in any jurisdiction(s) shall be, as to such
      jurisdiction(s), ineffective to the extent of such prohibition or
      unenforceability without invalidating the remaining provisions of this Agreement
      or affecting the validity or enforceability of such provision in any other
      jurisdiction. 

     

    13. Jurisdiction.
      Each of
      the parties irrevocably agrees that any and all suits or proceedings based
      on or
      arising under this Agreement may be brought only in and shall be resolved in
      the
      federal or state courts located in the City of Los Angeles, California
      and
      consents to the jurisdiction of such courts for such purpose. Each of the
      parties irrevocably waives the defense of an inconvenient forum to the
      maintenance of such suit or proceeding in any such court. Each of the parties
      further agrees that service of process upon such party mailed by first class
      mail to the address set forth in Section 9 shall be deemed in every respect
      effective service of process upon such party in any such suit or proceeding.
      Nothing herein shall affect the right of either party
      to serve
      process in any other manner permitted by law. Each of the parties agrees that
      a
      final non-appealable judgment in any such suit or proceeding shall be conclusive
      and may be enforced in other jurisdictions by suit on such judgment or in any
      other lawful manner.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    

     

    14. Attorneys'
      Fees and Disbursements.
      If any
      action at law or in equity is necessary to enforce or interpret the terms of
      this Agreement, the prevailing party or parties shall be entitled to receive
      from the other party or parties reasonable attorneys’ fees and disbursements in
      addition to any other relief to which the prevailing party or parties may be
      entitled. 

     

    [The
      balance of this page is intentionally left blank.]

     

    

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      this
      Agreement has been executed and delivered by the parties hereto as of the date
      first above written.

     

    
      	 	
              INTERACTIVE
                TELEVISION NETWORKS, INC.

               

            
	 	
              By:__________________________

            
	 	
              Name:
                Charles Prast

            
	 	
              Its:
                Chief Executive Officer

            
	 	
               

              FUNDS:

            

    

     

    
      	
               

            	
              Mecator
                Momentum Fund, L.P.

            
	 	 	 
	 	
              By:

            	
              __________________________

            
	 	 	
              David
                Firestone

            
	 	 	
              Managing
                Partner

            
	 	 	 
	 	
              By:

            	
              __________________________

            
	 	 	
              Harry
                Aharonian

            
	 	 	
              Portfolio
                Manager

            
	 	 	 
	
               

            	
              Mecator
                Momentum Fund III, L.P.

            
	 	 	 
	 	
              By:

            	
              __________________________

            
	 	 	
              David
                Firestone

            
	 	 	
              Managing
                Partner

            
	 	 	 
	 	 	
              __________________________

            
	 	 	
              Harry
                Aharonian

            
	 	 	
              Portfolio
                Manager

            
	
               

            	
               

              Monarch
                Pointe Fund Ltd.

            
	 	 	 
	 	
              By:

            	
              __________________________

            
	 	 	
              David
                Firestone

            
	 	 	
              Managing
                Partner

            
	 	 	 
	 	
              By:

            	
              __________________________

            
	 	 	
              Harry
                Aharonian

            
	 	 	
              Portfolio
                Manager

            
	 	 	 

    

    

    

    
      
         

      

      
        -8-

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