Document:

Exhibit 10.4

                               SECURITY AGREEMENT

         THIS SECURITY AGREEMENT (as amended, restated or otherwise modified
from time to time, the "Security Agreement") is entered into as of January 28,
2005, by and among National Lampoon, Inc., a Delaware corporation, National
Lampoon Networks, Inc., a Delaware corporation and National Lampoon Tours, Inc.,
a California corporation, (collectively "Grantors"), and N. Williams family
Investment, L.P. (together with any successor, or assign, "Secured Party").

                              W I T N E S S E T H:

         WHEREAS, simultaneously herewith, Secured Party and Grantors are
entering into that Secured Promissory Note dated as of January 28, 2005 (as
amended, restated, supplemented or otherwise modified, the "Secured Promissory
Note").

         WHEREAS, the Secured Party has required the Grantors to execute and
deliver this Security Agreement and grant to Secured Party a perfected first
priority continuing Lien in the Collateral (as hereinafter defined) in order to
secure the prompt and complete payment, observance and performance of all of the
Obligations (as hereinafter defined), and as a condition precedent to the making
of any loans, advances and any other financial accommodations by the Secured
Party.

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

         1. Defined Terms. All capitalized terms used but not otherwise defined
herein have the meanings given to them in Annex A attached hereto. All other
terms contained in this Security Agreement, unless the context indicates
otherwise, have the meanings provided for by the Code to the extent the same are
used or defined therein.

         2. Grant of Lien.

                  (a) To secure the prompt and complete payment, performance and
observance of all of the Obligations, Grantors hereby grant, assign, convey,
mortgage, pledge, hypothecate and transfer to Secured Party a Lien upon all of
Grantors' right, title and interest in, to and under all personal property and
other assets, whether now owned by or owing to, or hereafter acquired by or
arising in favor of Grantors (including under any trade names, styles or
derivations thereof), and whether owned or consigned by or to, or leased from or
to, Grantors, and regardless of where located (all of which being hereinafter
collectively referred to as the "Collateral"), including:

                           (i) all Accounts;

                           (ii) all Chattel Paper;

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                           (iii) all Documents;

                           (iv) all General Intangibles (including all Products,
Contracts, Intellectual Property, and payment intangibles);

                           (v) all Goods (including Inventory, Equipment and
Fixtures);

                           (vi) all Instruments;

                           (vii) all Investment Property;

                           (viii) all Deposit Accounts and all other bank
accounts and all deposits therein;

                           (ix) all money, cash or cash equivalents of Grantors;

                           (x) all Supporting Obligations and Letter-of-Credit
Rights of Grantors; and

                           (xi) to the extent not otherwise included, all
Proceeds, tort claims insurance claims and other rights to payments not
otherwise included in the foregoing and products of the foregoing and all
accessions to, substitutions and replacements for, and rents and profits of,
each of the foregoing.

                  (b) In addition, to secure the prompt and complete payment,
performance and observance of the Obligations and in order to induce Secured
Party as aforesaid, Grantors hereby grant to Secured Party a right of set-off
against the property of Grantors held by Secured Party, consisting of property
described above in Section 2(a) now or hereafter in the possession or custody of
or in transit to Secured Party, for any purpose, including safekeeping,
collection or pledge, for the account of Grantors, or as to which Grantors may
have any right or power.

         3. Secured Party's Rights, Limitations on Secured Party's Obligations.

                  (a) It is expressly agreed by Grantors that, anything herein
to the contrary notwithstanding, Grantors shall remain liable under each of
their Contracts and each of their Licenses to observe and perform all the
conditions and obligations to be observed and performed by them thereunder.
Secured Party shall not have any obligation or liability under any Contract or
License by reason of or arising out of this Security Agreement or the granting
herein of a Lien thereon or the receipt by Secured Party of any payment relating
to any Contract or License pursuant hereto. Secured Party shall not be required
or obligated in any manner to perform or fulfill any of the obligations of
Grantors under or pursuant to any Contract or License, or to make any payment,
or to make any inquiry as to the nature or the sufficiency of any payment
received by it or the sufficiency of any performance by any party under any
Contract or License, or to present or file any claims, or to take any action to
collect or enforce any performance or the payment of any amounts which may have
been assigned to it or to which it may be entitled at any time or times.

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                  (b) Secured Party may at any time after an Event of Default
involving nonpayment of money owed to Secured Party by the Grantors has occurred
and be continuing, without prior notice to Grantors, notify Account Debtors and
other Persons obligated on the Collateral that Secured Party has a security
interest therein, and that payments shall be made directly to Secured Party.
Upon the request of Secured Party, Grantors shall so notify Account Debtors and
other Persons obligated on Collateral. Once any such notice has been given to
any Account Debtor or other Person obligated on the Collateral, Grantors shall
not give any contrary instructions to such Account Debtor or other Person
without Secured Party's prior written consent.

                  (c) Secured Party may at any time after an Event of Default
has occurred and be continuing, in Secured Party's own name, in the name of a
nominee of Secured Party or in the name of Grantors communicate (by mail,
telephone, facsimile or otherwise) with Account Debtors, parties to Contracts
and obligors in respect of Instruments to verify with such Persons, to Secured
Party's satisfaction, the existence, amount, terms of, and any other matter
relating to, any Product, Accounts, General Intangibles (including all Products,
Contracts, Intellectual Property, and payment intangibles), Instruments or
Chattel Paper.

         4. Representations and Warranties. Grantors represent and warrant that:

                  (a) Grantors have rights in and the power to transfer each
item of the Collateral upon which they purport to grant a Lien hereunder free
and clear of any and all Liens other than Permitted Encumbrances.

                  (b) No effective security agreement, financing statement,
equivalent security or Lien instrument or continuation statement covering all or
any part of the Collateral is on file or of record in any public office, except
such as may have been filed (i) by Grantors in favor of Secured Party pursuant
to this Security Agreement, and (ii) in connection with any other Permitted
Encumbrances.

                  (c) This Security Agreement is effective to create a valid and
continuing Lien on and, upon the filing of the appropriate financing statements
listed on Schedule I hereto, a perfected Lien in favor of Secured Party on the
Collateral with respect to which a Lien may be perfected by filing pursuant to
the Code. Such Lien is prior to all other Liens, except Permitted Encumbrances
that would be prior to Liens in favor of Secured Party as a matter of law, and
upon recordation will be enforceable as such as against any and all creditors of
and purchasers from Grantors (other than purchasers and lessees of Inventory in
the ordinary course of business). All action by Grantors necessary or desirable
to protect and perfect such Lien on each item of the Collateral has been duly
taken.

                  (d) Schedule II hereto lists all Instruments, Letter-of-Credit
Rights and Chattel Paper of Grantor. All action by Grantors necessary or
desirable to protect and perfect the Lien of Secured Party on each item set
forth on Schedule II (including the delivery of all originals thereof to Secured
Party and the legending of all Chattel Paper as required by Section 5(b) hereof)
has been duly taken. The Lien of Secured Party on the Collateral listed on
Schedule II hereto is prior to all other Liens, except Permitted Encumbrances
that would be prior to the Liens in favor of Secured Party as a matter of law,

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and is enforceable as such against any and all creditors of and purchasers from
Grantors.

                  (e) Grantors' names as they appear in official filings in the
state(s) of their incorporation, the types of entities of Grantors,
organizational identification numbers issued by Grantors' state(s) of
incorporation or statement(s) that no such number has been issued, Grantors'
state(s) of incorporation, the location(s) of Grantors' chief executive
office(s), principal place(s) of business, offices, all warehouses and premises
where Collateral is stored or located, and the locations of their books and
records concerning the Collateral are set forth on Schedule III hereto.

                  (f) With respect to any Inventory of Grantors, (i) no
Inventory is now, or shall at any time or times hereafter be stored at any
location other than as set forth on Schedule III hereto without Secured Party's
prior consent, and if Secured Party gives such consent, Grantors will
concurrently therewith obtain bailee, landlord or mortgagee agreements, in each
case, satisfactory to Secured Party in its sole discretion, (ii) Grantors have
good, indefeasible and merchantable title to such Inventory and such Inventory
is not subject to any Lien or security interest or document whatsoever except
for the Lien granted to Secured Party and except for Permitted Encumbrances,
(iii) such Inventory is not subject to any licensing, patent, royalty,
trademark, trade name or copyright agreements with any third parties which would
require any consent of any third party upon sale or disposition of that
Inventory or the payment of any monies to any third party as a precondition of
such sale or other disposition, and (iv) the completion of manufacture, sale or
other disposition of such Inventory by Secured Party following an Event of
Default shall not require the consent of any Person and shall not constitute a
breach or default under any contract or agreement to which Grantors are parties
or to which such property is subject.

                  (g) Upon the filing of a UCC financing statement and the
Notice of Security Interest in Patents and Trademarks and the Notice of Security
Interest in Copyrights with the United State Patent and Trademark Office and the
United States Copyright Office, as applicable, the Liens granted hereunder with
respect to the Grantors' interest in their Intellectual Property are enforceable
as such as against any and all creditors of and purchasers from Grantors.

                  (h) Grantors (i) are corporations duly organized, validly
existing and in good standing under the laws of the State of Delaware and
California, as applicable; (ii) are duly qualified to conduct business and are
in good standing in each other jurisdiction where their ownership or lease of
property or the conduct of their business requires such qualification except
where the failure to be so qualified does not and would not have a material
adverse effect on the business, properties or assets of the Grantors; (iii) have
the requisite power and authority and the legal right to own, pledge, mortgage
or otherwise encumber and operate their properties, to lease the property they
operate under lease and to conduct their businesses as now, heretofore and
proposed to be conducted; (iv) have all material licenses, permits, consents or
approvals from or by, and have made all material filings with, and have given
all material notices to, all Governmental Authorities having jurisdiction, to
the extent required for such ownership, operation and conduct; and (v) are in
compliance with their charter, bylaws, and all applicable provisions of law,
except where the failure to comply, individually or in the aggregate, could not
reasonably be expected to have a material adverse effect upon Grantors.

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                  (i) The execution, delivery and performance by Grantors of
this Security Agreement, the Notice of Security Interest in Patents and
Trademarks, and the Notice of Security Interest in Copyrights and the creation
of all Liens provided for herein or therein: (i) are within Grantors' powers;
(ii) have been duly authorized by all necessary corporate action; (iii) do not
contravene any provision of Grantors' charters or bylaws; (iv) do not violate
any law or regulation, or any order or decree of any court or Governmental
Authority; (v) do not conflict with or result in the breach or termination of,
constitute a default under or accelerate or permit the acceleration of any
performance required by, any indenture, mortgage, deed of trust, lease,
agreement or other instrument to which such Person is a party or by which such
Person or any of its property is bound; (vi) do not result in the creation or
imposition of any Lien upon any of the property of such Person other than those
in favor of Secured Party pursuant to this Security Agreement; and (vii) do not
require the consent or approval of any Governmental Authority or any other
Person except to the extent any such consent was obtained prior to the date
hereof. This Security Agreement, the Notice of Security Interest in Patents and
Trademarks and the Notice of Security Interest in Copyrights executed
contemporaneously herewith have been duly executed and delivered by Grantors.
This Security Agreement, each Notice of Security Interest in Patents and
Trademarks, and each Notice of Security Interest in Copyrights executed
contemporaneously herewith shall constitute a legal, valid and binding
obligation of Grantors enforceable against them in accordance with its terms.

                  (j) No Fraudulent Transfers. No transfer of property is being
made by Grantors and no obligation is being incurred by Grantors in connection
with the transactions contemplated by this Security Agreement with the intent to
hinder, delay, or defraud either present or future creditors of Grantors.

5. Covenants. Grantors covenant and agree with Secured Party that from and after
the date of this Security Agreement and until the Termination Date:

                  (a) Further Assurances; Pledge of Instruments; Chattel Paper.

                           (i) At any time and from time to time, upon the
written request of Secured Party and at the sole expense of Grantors, Grantors
shall promptly and duly execute and deliver any and all such further instruments
and documents and take such further actions as Secured Party may deem desirable
to obtain the full benefits of this Security Agreement and of the rights and
powers herein granted, including (A) using best efforts to secure all consents
and approvals necessary or appropriate for the assignment to or for the benefit
of Secured Party of any License or Contract held by Grantors and to enforce the
security interests granted hereunder, and (B) filing any financing or
continuation statements under the Code with respect to the Liens granted
hereunder.

                           (ii) Unless Secured Party shall otherwise consent in
writing (which consent may be revoked), Grantors shall deliver to Secured Party
all Collateral consisting of negotiable Documents, certificated securities,
Chattel Paper and Instruments (in each case, accompanied by stock powers,
allonges or other instruments of transfer executed in blank) promptly after
Grantors receive the same.

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                           (iii) Grantors shall obtain or use best efforts to
obtain waivers or subordinations of Liens from landlords and mortgagees, and
Grantors shall in all instances obtain signed acknowledgements of Secured
Party's Liens from bailees having possession of Grantors' Goods that they hold
for the benefit of Secured Party.

                           (iv) If requested by Secured Party, Grantors shall
obtain authenticated Control Letters from each issuer of uncertificated
securities, securities intermediary, or commodities intermediary issuing or
holding any financial assets or commodities to or for Grantors.

                           (v) If Grantors are or become the beneficiary(ies) of
a letter of credit Grantors shall promptly, and in any event within two (2)
Business Days after becoming beneficiary(ies), notify Secured Party thereof and,
if requested by Secured Party, enter into a tri-party agreement with Secured
Party and the issuer and/or confirmation bank with respect to Letter-of-Credit
Rights assigning such Letter-of-Credit Rights to Secured Party and directing all
payments thereunder upon and during the continuance of a Default or Event of
Default to be made to an account identified by Secured Party, all in form and
substance reasonably satisfactory to Secured Party.

                           (vi) Grantors shall take all steps necessary to grant
the Secured Party control of all electronic chattel paper in accordance with the
Code and all "transferable records" as defined in each of the Uniform Electronic
Transactions Act and the Electronic Signatures in Global and National Commerce
Act.

                           (vii) Grantors hereby irrevocably authorize the
Secured Party at any time and from time to time to file in any filing office in
any Uniform Commercial Code jurisdiction any initial financing statements and
amendments thereto that (a) indicate the Collateral (i) as all assets of
Grantors or words of similar effect, regardless of whether any particular asset
comprised in the Collateral falls within the scope of Article 9 of the Code or
such jurisdiction, or (ii) as being of an equal or lesser scope or with greater
detail, and (b) contain any other information required by the Code for the
sufficiency or filing office acceptance of any financing statement or amendment,
including (i) whether Grantors are organizations, the types of organizations and
any organization identification number issued to such Grantors, and (ii) in the
case of a financing statement filed as a fixture filing or indicating Collateral
as as-extracted collateral or timber to be cut, a sufficient description of real
property to which the Collateral relates. Grantors agree to furnish any such
information to the Secured Party promptly upon request. Grantors also ratify
their authorization for the Secured Party to have filed in any Uniform
Commercial Code jurisdiction any initial financing statements or amendments
thereto if filed prior to the date hereof.

                           (viii) Grantors shall as soon as commercially
practicable after the same is acquired by it, notify Secured Party of any
commercial tort claim (as defined in the Code) acquired by it and unless
otherwise consented by Secured Party, Grantors shall enter into a supplement to
this Security Agreement, granting to Secured Party a Lien in such commercial
tort claim.

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                           (ix) Grantors shall as soon as commercially
practicable after forming or investing in any Wholly-Owned Subsidiary, or any
Subsidiary in which any Affiliate owns any Equity Security, cause such
Subsidiary to grant to Secured Party a first priority lien in all assets of such
Subsidiary pursuant to a security agreement in substantially the same form as
this Agreement. Grantors shall be under no obligation to cause any such
Subsidiary to grant any lien in their assets so long as the sole owners of
Equity Securities of such Subsidiary consist of Grantors and Persons who are not
Affiliates; provided, however, that if an Affiliate after the formation of any
such Subsidiary becomes an owner of any Equity Security in such Subsidiary, then
Grantors shall as soon as commercially practicable thereafter cause such
Subsidiary to grant to Secured Party a first priority lien in all assets of such
Subsidiary pursuant to a security agreement in substantially the same form as
this Agreement. Grantors will on demand pay any reasonable attorneys fees
incurred by Secured Party relating to or in connection with the granting of a
lien to Secured Party by any Subsidiary pursuant to this Section 5(a)(ix).

                  (b) Maintenance of Records. Grantors shall keep and maintain,
at their own cost and expense, satisfactory and complete records of the
Collateral, including a record of any and all payments received and any and all
credits granted with respect to the Collateral and all other dealings with the
Collateral. Grantors shall mark their books and records pertaining to the
Collateral to evidence this Security Agreement and the Liens granted hereby. If
Grantors retain possession of any Chattel Paper or Instruments with Secured
Party's consent, such Chattel Paper and Instruments shall be marked with the
following legend: "This writing and the obligations evidenced or secured hereby
are subject to the security interest of N. Williams family Investment, L.P., as
Secured Party."

                  (c) Covenants Regarding Patent, Trademark and Copyright
Collateral.

                           (i) Grantors shall provide reasonable notice to
Secured Party of any material change to any application or registration relating
to any Patent, Trademark or Copyright (now or hereafter existing), including
information that such application or registration is or may become abandoned,
finally refused or expired or dedicated, or of any adverse determination or
development (including the institution of, or any such determination or
development in, any proceeding in the United States Patent and Trademark Office,
the United States Copyright Office or any court) regarding Grantors' ownership
of any Patent, Trademark or Copyright, right to register the same, or to keep
and exclusively maintain the same.

                           (ii) In no event shall Grantors, either directly or
through any agent, employee, licensee or designee, file an application for the
registration of any Patent, Trademark or Copyright with the United States Patent
and Trademark Office, the United States Copyright Office or any similar office
or agency without giving Secured Party prior written notice thereof, and, upon
request of Secured Party, Grantors shall execute and deliver any and all
applicable Notices of Security Interests in Patents and Trademarks and Notices
of Security Interests in Copyrights as Secured Party may request to evidence
Secured Party's Lien on such Patent, Trademark or Copyright, and the General
Intangibles of Grantors relating thereto or represented thereby.

                           (iii) Grantors shall take all actions necessary or
requested by Secured Party to maintain and pursue each application, to obtain
the relevant registration and to maintain the registration of each of the

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Patents, Trademarks and Copyrights (now or hereafter existing), including the
filing of applications for renewal, affidavits of continued use, affidavits of
incontestability and opposition and interference and cancellation proceedings,
unless Grantors reasonably shall determine that such Patent, Trademark or
Copyright is not material to the conduct of their business.

                           (iv) In the event that any of the Patent, Trademark
or Copyright Collateral is infringed upon, or misappropriated or diluted by a
third party, Grantors shall comply with Section 5(a)(viii) of this Security
Agreement. Grantors shall, unless they shall reasonably determine that such
Patent, Trademark or Copyright Collateral is not material to the conduct of
their business or operations, promptly sue for infringement, misappropriation or
dilution and to recover any and all damages for such infringement,
misappropriation or dilution, and shall take such other actions as Secured Party
shall deem appropriate under the circumstances to protect such Patent, Trademark
or Copyright Collateral.

                           (v) Concurrently herewith, Grantors shall deliver to
Secured Party: (A) a written notice in the form of Exhibit 5(c)(v)(A) (a "Notice
of Security Interest in Patents and Trademarks") in respect of all Patents and
Trademarks in which such Grantors have interest (including by way of exclusive
license), for filing with the United States Patent and Trademark Office, (B) a
written notice in the form of Exhibit 5(c)(v)(B) (a "Notice of Security Interest
in Copyrights") in respect of all Copyrights in which such Grantors has an
interest (including by way of an exclusive license), for filing with the United
States Copyright Office, and (C) all other supplemental documentation necessary
to perfect the security interest granted hereby with respect to all Intellectual
Property for filing in the appropriate governmental office, including any
foreign office in which any such Intellectual Property may be registered or
otherwise on file, in each case, duly completed and executed.

                  (d) Indemnification. In any suit, proceeding or action brought
by Secured Party relating to any Collateral for any sum owing with respect
thereto or to enforce any rights or claims with respect thereto, Grantors will
save, indemnify and keep Secured Party harmless from and against all expense
(including reasonable attorneys' fees and expenses), loss or damage suffered by
reason of any defense, setoff, counterclaim, recoupment or reduction of
liability whatsoever of the Account Debtor or other Person obligated on the
Collateral, arising out of a breach by Grantors of any obligation thereunder or
arising out of any other agreement, indebtedness or liability at any time owing
to, or in favor of, such obligor or successors from Grantors, except in the case
of Secured Party, to the extent such expense, loss, or damage is attributable
solely to the gross negligence or willful misconduct of Secured Party as finally
determined by a court of competent jurisdiction. All such obligations of
Grantors shall be and remain enforceable against and only against Grantors and
shall not be enforceable against Secured Party.

                  (e) Compliance with Terms of Accounts, etc. In all material
respects, Grantors will perform and comply with all obligations in respect of
the Collateral and all other agreements to which they are parties or by which
they are bound relating to the Collateral.

                  (f) Limitation on Liens on Collateral. Grantors will not
create, permit or suffer to exist, and will defend the Collateral against, and
take such other action as is necessary to remove, any Lien on the Collateral

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except Permitted Encumbrances and Permitted Junior Liens, and will defend the
right, title and interest of Secured Party in and to any of Grantors' rights
under the Collateral against the claims and demands of all Persons whomsoever.

                  (g) Limitations on Disposition. Grantors will not sell, lease,
license, transfer or otherwise dispose of any of the Collateral (including
without limitation any such transfer or disposition by way of capital or equity
contribution to another Person), or attempt or contract to do so except for (i)
sales, exchanges, trade-ins or other dispositions of Equipment that is
substantially worn, damaged, or obsolete in the ordinary course of business,
(ii) sales of Inventory to buyers in the ordinary course of business, and (iii)
licenses by Grantors of Patents, Trademarks, Copyrights, and other intellectual
property rights in the ordinary course of business, and not in a transaction or
as part of a series of related transactions whereby substantially all of the
Grantors' assets are transferred to one or more Persons, to (x) a Person that is
not an Affiliate or (y) if such transaction has been approved in advance by
Grantors' respective board of directors, a Person that is a Subsidiary;
provided, that a license shall be deemed to be not in the ordinary course of
business for purposes of this subsection if it is an exclusive license, unless
either (I) such license has been approved in advance by Grantors' board of
directors, or (II) such license relates only to a single product. The rights of
the transferee or licensee with respect to any transfer or license as authorized
in this subsection will be free and clear of the security interest of Secured
Party hereunder; provided, however, that such security interest shall in the
event of any such transfer or license continue to attach to all rights of
Grantors pursuant to such transfer or license and the proceeds of such transfer
or license as provided elsewhere herein.

                  (h) Further Identification of Collateral. Grantors will, if so
requested by Secured Party, furnish to Secured Party, as often as Secured Party
requests, statements and schedules further identifying and describing the
Collateral and such other reports in connection with the Collateral as Secured
Party may reasonably request, all in such detail as Secured Party may specify.

                  (i) Notices. Grantors will advise Secured Party promptly, in
reasonable detail, (i) of any Lien (other than Permitted Encumbrances) or claim
made or asserted against any of the Collateral, and (ii) of the occurrence of
any other event which would have a material adverse effect on the aggregate
value of the Collateral or on the Liens created hereunder.

                  (j) No Reincorporation; No Non-Ordinary Course Transactions.
Grantors shall not reincorporate or reorganize under the laws of any
jurisdiction other than the jurisdiction in which they were incorporated as of
the date hereof without the prior written consent of Secured Party. Grantors
shall not consummate or commit to consummate any non-ordinary course
transaction.

                  (k) Terminations; Amendments Not Authorized. Other than the
filing of financing statements in connection with the perfection of Permitted
Encumbrances or a Permitted Junior Lien, Grantors acknowledge that they are not
authorized to file any financing statement or amendment or termination statement
with respect to any financing statement without the prior written consent of
Secured Party and agree not do so without the prior written consent of Secured
Party, subject to such Grantors' rights under Section 9-509(d)(2) of the Code.

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                  (l) Limitation on Dividends and other Distributions. Grantors
shall not declare or pay any dividend, repurchase or redeem any shares of
capital stock, or make any other "distribution to shareholders" (as such term is
defined in Section 166 of the California Corporations Code) without the prior
written consent of Secured Party.

         6. Secured Party's Appointment as Attorney-in-Fact. Contemporaneously
herewith, Grantors shall execute and deliver to Secured Party a power of
attorney (the "Power of Attorney") substantially in the form attached hereto as
Exhibit A. The power of attorney granted pursuant to the Power of Attorney is a
power coupled with an interest and shall be irrevocable until the Termination
Date. The powers conferred on Secured Party under the Power of Attorney are
solely to protect Secured Party's interests in the Collateral and shall not
impose any duty upon Secured Party to exercise any such powers. Secured Party
agrees that (a) except for the powers granted in clause (h) of the Power of
Attorney, it shall not exercise any power or authority granted under the Power
of Attorney unless an Event of Default has occurred and is continuing, and (b)
Secured Party shall account for any monies received by Secured Party in respect
of any foreclosure on or disposition of Collateral pursuant to the Power of
Attorney, provided that Secured Party shall have no duty as to any Collateral,
and Secured Party shall be accountable only for amounts that it actually
receives as a result of the exercise of such powers. NONE OF SECURED PARTY OR
ITS AFFILIATES, AGENTS OR REPRESENTATIVES SHALL BE RESPONSIBLE TO GRANTORS FOR
ANY ACT OR FAILURE TO ACT UNDER ANY POWER OF ATTORNEY OR OTHERWISE, EXCEPT IN
RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION, NOR FOR
ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.

         7. Remedies, Rights Upon Default.

                  (a) In addition to all other rights and remedies granted to it
under this Security Agreement and under any other instrument or agreement
securing, evidencing or relating to any of the Obligations, if any Event of
Default shall have occurred and be continuing, Secured Party may exercise all
rights and remedies of a secured party under the Code. Without limiting the
generality of the foregoing, Grantors expressly agree that in any such event
Secured Party, without demand of performance or other demand, advertisement or
notice of any kind (except the notice specified below of time and place of
public or private sale) to or upon Grantors or any other Person (all and each of
which demands, advertisements and notices are hereby expressly waived to the
maximum extent permitted by the Code and other applicable law), may forthwith
enter upon the premises of Grantors where any Collateral is located through
self-help, without judicial process, without first obtaining a final judgment or
giving Grantors or any other Person notice and opportunity for a hearing on
Secured Party's claim or action, and may collect, receive, assemble, process,
appropriate and realize upon the Collateral, or any part thereof, and may
forthwith sell, lease, license, assign, give an option or options to purchase,
or sell or otherwise dispose of and deliver said Collateral (or contract to do
so), or any part thereof, in one or more parcels at a public or private sale or
sales, at any exchange at such prices as it may deem acceptable, for cash or on
credit or for future delivery without assumption of any credit risk. Secured
Party shall have the right upon any such public sale or sales and, to the extent
permitted by law, upon any such private sale or sales, to purchase the whole or
any part of said Collateral so sold, free of any right or equity of redemption,

                                       10
<PAGE>

which equity of redemption Grantors hereby release. Such sales may be adjourned
and continued from time to time with or without notice. Secured Party shall have
the right to conduct such sales on Grantors' premises or elsewhere and shall
have the right to use Grantors' premises without charge for such time or times
as Secured Party deems necessary or advisable. If any Event of Default shall
have occurred and be continuing, Grantors further agree, at Secured Party's
request, to assemble the Collateral and make it available to Secured Party at a
place or places designated by Secured Party which are reasonably convenient to
Secured Party and Grantors, whether at Grantors' premises or elsewhere. Until
Secured Party is able to effect a sale, lease, license or other disposition of
Collateral, Secured Party shall have the right to hold or use Collateral, or any
part thereof, to the extent that it deems appropriate for the purpose of
preserving Collateral or its value or for any other purpose deemed appropriate
by Secured Party. Secured Party shall have no obligation to Grantors to maintain
or preserve the rights of Grantors as against third parties with respect to
Collateral while Collateral is in the possession of Secured Party. Secured Party
may, if it so elects, seek the appointment of a receiver or keeper to take
possession of Collateral and to enforce any of Secured Party's remedies with
respect to such appointment without prior notice or hearing as to such
appointment. Secured Party shall apply the net proceeds of any such collection,
recovery, receipt, appropriation, realization or sale to the Obligations as
Secured Party shall determine in its sole discretion, and only after so paying
over such net proceeds, and after the payment by Secured Party of any other
amount required by any provision of law, need Secured Party account for the
surplus, if any, to Grantors. To the maximum extent permitted by applicable law,
Grantors waive all claims, damages, and demands against Secured Party arising
out of the repossession, retention or sale of the Collateral except such as
arise solely out of the gross negligence or willful misconduct of Secured Party
as finally determined by a court of competent jurisdiction. Grantors agree that
ten (10) days prior notice by Secured Party of the time and place of any public
sale or of the time after which a private sale may take place is reasonable
notification of such matters. Grantors shall remain liable for any deficiency if
the proceeds of any sale or disposition of the Collateral are insufficient to
pay all Obligations, including any attorneys' fees and other expenses incurred
by Secured Party to collect such deficiency.

                  (b) Except as otherwise specifically provided herein, Grantors
hereby waive presentment, demand, protest or any notice (to the maximum extent
permitted by applicable law) of any kind in connection with this Security
Agreement or any Collateral.

                  (c) To the extent that applicable law imposes duties on the
Secured Party to exercise remedies in a commercially reasonable manner, Grantors
acknowledge and agree that it is not commercially unreasonable for the Secured
Party (i) to fail to incur expenses reasonably deemed significant by the Secured
Party to prepare Collateral for disposition or otherwise to complete raw
material or work in process into finished goods or other finished products for
disposition, (ii) to fail to obtain third party consents for access to
Collateral to be disposed of, or to obtain or, if not required by other law, to
fail to obtain governmental or third party consents for the collection or
disposition of Collateral to be collected or disposed of, (iii) to fail to
exercise collection remedies against Account Debtors or other Persons obligated
on Collateral or to remove Liens on or any adverse claims against Collateral,
(iv) to exercise collection remedies against Account Debtors and other Persons
obligated on Collateral directly or through the use of collection agencies and
other collection specialists, (v) to advertise dispositions of Collateral

                                       11
<PAGE>

through publications or media of general circulation, whether or not the
Collateral is of a specialized nature, (vi) to contact other Persons, whether or
not in the same business as the Grantors, for expressions of interest in
acquiring all or any portion of such Collateral, (vii) to hire one or more
professional auctioneers to assist in the disposition of Collateral, whether or
not the Collateral is of a specialized nature, (viii) to dispose of Collateral
by utilizing internet sites that provide for the auction of assets of the types
included in the Collateral or that have the reasonable capacity of doing so, or
that match buyers and sellers of assets, (ix) to dispose of assets in wholesale
rather than retail markets, (x) to disclaim disposition warranties, such as
title, possession or quiet enjoyment, or (xi) to the extent deemed appropriate
by the Secured Party, to obtain the services of other brokers, investment
bankers, consultants and other professionals to assist the Secured Party in the
collection or disposition of any of the Collateral. Grantors acknowledge that
the purpose of this Section 7(c) is to provide non-exhaustive indications of
what actions or omissions by the Secured Party would not be commercially
unreasonable in the Secured Party's exercise of remedies against the Collateral
and that other actions or omissions by the Secured Party shall not be deemed
commercially unreasonable solely on account of not being indicated in this
Section 7(c). Without limitation upon the foregoing, nothing contained in this
Section 7(c) shall be construed to grant any rights to Grantors or to impose any
duties on Secured Party that would not have been granted or imposed by this
Security Agreement or by applicable law in the absence of this Section 7(c).

                  (d) Secured Party shall not be required to make any demand
upon, or pursue or exhaust any of their rights or remedies against, Grantors,
any other obligor, guarantor, pledgor or any other Person with respect to the
payment of the Obligations or to pursue or exhaust any of their rights or
remedies with respect to any Collateral therefor or any direct or indirect
guarantee thereof. Secured Party shall not be required to marshal the Collateral
or any guarantee of the Obligations or to resort to the Collateral or any such
guarantee in any particular order, and all of its and their rights hereunder
shall be cumulative. To the extent they may lawfully do so, Grantors absolutely
and irrevocably waive and relinquish the benefit and advantage of, and covenant
not to assert against Secured Party, any valuation, stay, appraisement,
extension, redemption or similar laws and any and all rights or defense they may
have as a sureties now or hereafter existing which, but for this provision,
might be applicable to the sale of any Collateral made under the judgment, order
or decree of any court, or privately under the power of sale conferred by this
Security Agreement, or otherwise.

         8. Grant of License to use Intellectual Property. For the sole purpose
of enabling Secured Party to exercise rights and remedies under Section 7 hereof
(including, without limiting the terms of Section 7 hereof, in order to take
possession of, hold, preserve, process, assemble, prepare for sale, market for
sale, sell or otherwise dispose of Collateral) at such time as Secured Party
shall be lawfully entitled to exercise such rights and remedies, Grantors hereby
grant to Secured Party an irrevocable, nonexclusive license (exercisable without
payment of royalty or other compensation to Grantors) to use, license or
sublicense any Intellectual Property now owned or hereafter acquired by
Grantors, and wherever the same may be located, and including in such license
access to all media in which any of the licensed items may be recorded or stored
and to all computer software and programs used for the compilation or printout
thereof.

         9. Limitation on Secured Party's Duties in Respect of Collateral.
Secured Party shall use reasonable care with respect to the Collateral in its
possession or under its control. Secured Party shall not have any other duty as

                                       12
<PAGE>

to any Collateral in its possession or control or in the possession or control
of any agent or nominee of Secured Party, or any income thereon or as to the
preservation of rights against prior parties or any other rights pertaining
thereto.

         10. Reinstatement. This Security Agreement shall remain in full force
and effect and continue to be effective should any petition be filed by or
against Grantors for liquidation or reorganization, should Grantors become
insolvent or make an assignment for the benefit of any creditor or creditors or
should a receiver or trustee be appointed for all or any significant part of
Grantors' assets, and shall continue to be effective or be reinstated, as the
case may be, if at any time payment and performance of the obligations, or any
part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or
must otherwise be restored or returned by any obligee of the Obligations,
whether as a "voidable preference," "fraudulent conveyance," or otherwise, all
as though such payment or performance had not been made. In the event that any
payment, or any part thereof, is rescinded, reduced, restored or returned, the
Obligations shall be reinstated and deemed reduced only by such amount paid and
not so rescinded, reduced, restored or returned.

         11. Notices. Except as otherwise provided herein, whenever it is
provided herein that any notice, demand, request, consent, approval, declaration
or other communication shall or may be given to or served upon any of the
parties by any other party, or whenever any of the parties desires to give and
serve upon any other party any communication with respect to this Security
Agreement, each such notice, demand, request, consent, approval, declaration or
other communication shall be in writing and shall be given (a) if to Grantors,
to Grantors' address(es) set forth below the names on the signature page hereof,
and (b) if to Secured Party, to Secured Party's address set forth below its name
on the signature page hereof, with a copy to John Dorris, Snell & Wilmer, LLP,
One Arizona Center, 400 East Van Buren Street, Phoenix, Arizona 85004-2202, or
to such other address as either party may furnish to the others in writing,
making specific reference to this Section 11.

         12. Severability. Whenever possible, each provision of this Security
Agreement shall be interpreted in a manner as to be effective and valid under
applicable law, but if any provision of this Security Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity without invalidating
the remainder of such provision or the remaining provisions of this Security
Agreement. This Security Agreement sets forth the complete understanding and
agreement of Secured Party and Grantors with respect to the matters referred to
herein.

         13. No Waiver, Cumulative Remedies. Secured Party shall not by any act,
delay, omission or otherwise be deemed to have waived any of its rights or
remedies hereunder, and no waiver shall be valid unless in writing, signed by
Secured Party and then only to the extent therein set forth. A waiver by Secured
Party of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy which Secured Party would otherwise
have had on any future occasion. No failure to exercise nor any delay in
exercising on the part of Secured Party, any right, power or privilege
hereunder, shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege hereunder preclude any other or future
exercise thereof or the exercise of any other right, power or privilege. The
rights and remedies hereunder provided are cumulative and may be exercised
singly or concurrently, and are not exclusive of any rights and remedies

                                       13
<PAGE>

provided by law. None of the terms or provisions of this Security Agreement may
be waived, altered, modified or amended except by an instrument in writing, duly
executed by Secured Party and Grantors.

         14. Limitation by Law. All rights, remedies and powers provided in this
Security Agreement may be exercised only to the extent that the exercise thereof
does not violate any applicable provision of law, and all the provisions of this
Security Agreement are intended to be subject to all applicable mandatory
provisions of law that may be controlling and to be limited to the extent
necessary so that they shall not render this Security Agreement invalid,
unenforceable, in whole or in part, or not entitled to be recorded, registered
or filed under the provisions of any applicable law.

         15. Termination of this Security Agreement. Subject to Section 10
hereof, this Security Agreement shall terminate upon the Termination Date.

         16. Successors and Assigns. This Security Agreement and all obligations
of Grantors hereunder shall be binding upon the successors and assigns of
Grantors (including any debtor-in-possession on behalf of Grantors) and shall,
together with the rights and remedies of Secured Party hereunder, inure to the
benefit of Secured Party, all future holders of any instrument evidencing any of
the Obligations and their respective successors and assigns. No sales of
participations, other sales, assignments, transfers or other dispositions of any
agreement governing or instrument evidencing the Obligations or any portion
thereof or interest therein shall in any manner affect the Lien granted to
Secured Party hereunder. Grantors may not assign, sell, hypothecate or otherwise
transfer any interest in or obligation under this Security Agreement and any
unconsented transfer shall be void ab initio.

         17. Counterparts. This Security Agreement may be authenticated in any
number of separate counterparts, each of which shall collectively and separately
constitute one and the same agreement. This Security Agreement may be
authenticated by manual signature, facsimile, or if approved in writing by
Secured Party, electronic means, all of which shall be equally valid.

         18. Governing Law. IN ALL RESPECTS, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS SECURITY AGREEMENT AND THE
OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF ARIZONA, APPLICABLE TO CONTRACTS
MADE AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF
AMERICA. GRANTORS HEREBY CONSENT AND AGREE THAT THE STATE OR FEDERAL COURTS
LOCATED IN MARICOPA COUNTY, PHOENIX, ARIZONA, SHALL HAVE EXCLUSIVE JURISDICTION
TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN GRANTORS AND SECURED PARTY
PERTAINING TO THIS SECURITY AGREEMENT OR TO ANY MATTER ARISING OUT OF OR
RELATING TO THIS SECURITY AGREEMENT, PROVIDED, THAT SECURED PARTY AND GRANTORS
ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT
LOCATED OUTSIDE OF MARICOPA COUNTY, AND, PROVIDED, FURTHER, NOTHING IN THIS
AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE SECURED PARTY FROM BRINGING
SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO REALIZE ON THE

                                       14
<PAGE>

COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT
OR OTHER COURT ORDER IN FAVOR OF SECURED PARTY. GRANTORS EXPRESSLY SUBMIT AND
CONSENT IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY
SUCH COURT, AND GRANTORS HEREBY WAIVE ANY OBJECTION WHICH THEY MAY HAVE BASED
UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND
HEREBY CONSENT TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
APPROPRIATE BY SUCH COURT. GRANTORS HEREBY WAIVE PERSONAL SERVICE OF THE
SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREE
THAT SERVICE OF SUCH SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE MADE BY
REGISTERED OR CERTIFIED MAIL ADDRESSED TO GRANTORS AT THE ADDRESS SET FORTH ON
THE SIGNATURE PAGES HERETO AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED
UPON THE EARLIER OF ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN
THE U.S. MAILS, PROPER POSTAGE PREPAID.

         19. Waiver of Jury Trial. BECAUSE DISPUTES ARISING IN CONNECTION WITH
COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN
EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL
LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT DISPUTES
ARISING HEREUNDER OR RELATING HERETO BE RESOLVED BY A JUDGE APPLYING SUCH
APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF
THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, BETWEEN SECURED PARTY AND
GRANTOR ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE
RELATIONSHIP ESTABLISHED IN CONNECTION WITH, THIS SECURITY AGREEMENT OR THE
TRANSACTIONS RELATED HERETO OR THERETO.

         20. Section Titles. The Section titles contained in this Security
Agreement are and shall be without substantive meaning or content of any kind
whatsoever and are not a part of the agreement between the parties hereto.

         21. No Strict Construction. The parties hereto have participated
jointly in the negotiation and drafting of this Security Agreement. In the event
an ambiguity or question of intent or interpretation arises, this Security
Agreement shall be construed as if drafted jointly by the parties hereto and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Security Agreement.

         22. Advice of Counsel. Each of the parties represents to each other
party hereto that it has discussed this Security Agreement and, specifically,
the provisions of Section 18 and Section 19, with its counsel.

                                       15
<PAGE>

         23. Integration. This Security Agreement, together with the other
agreements, documents, and instruments executed in connection with the
foregoing, reflect the entire understanding of the parties with respect to the
transactions contemplated hereby and shall not be contradicted or qualified by
any other agreement, oral or written, before the date hereof.

                                       16
<PAGE>

            IN WITNESS WHEREOF, each of the parties hereto has caused this
Security Agreement to be executed and delivered by its duly authorized officer
as of the date first set forth above.

                                           NATIONAL LAMPOON, INC.,
                                           As Grantor

                                           By:
                                               ---------------------------------
                                           Name:
                                                 -------------------------------
                                           Title:
                                                  ------------------------------

                                           (ADDRESS) ___________________________

                                           _____________________________________

                                           Attention:  _________________________

                                           Facsimile No.:  _____________________

                                           NATIONAL LAMPOON NETWORKS, INC.,
                                           As Grantor

                                           By:
                                               ---------------------------------
                                           Name:
                                                 -------------------------------
                                           Title:
                                                  ------------------------------

                                           (ADDRESS) ___________________________

                                           _____________________________________

                                           Attention:  _________________________

                                           Facsimile No.:  _____________________

                                           NATIONAL LAMPOON TOURS, INC.,
                                           As Grantor

                                           By:
                                               ---------------------------------
                                           Name:
                                                 -------------------------------
                                           Title:
                                                  ------------------------------

                                           (ADDRESS) ___________________________

                                           _____________________________________

                                           Attention:  _________________________

                                           Facsimile No.:  _____________________

                                       17
<PAGE>

                                           Accepted and agreed to as of the
                                           day and year first above written.

                                           N. WILLIAMS FAMILY INVESTMENTS, L.P.
                                           As Secured Party

                                           By:
                                               ---------------------------------
                                           Name:
                                           Title:

                                       18
<PAGE>

                                     ANNEX A
                                       TO
                               SECURITY AGREEMENT

                                   DEFINITIONS

          Capitalized terms used in the Security Agreement shall have the
following respective meanings, and all references to Sections, Exhibits,
Schedules or Annexes in the following definitions shall refer to Sections,
Exhibits, Schedules or Annexes of or to the Security Agreement:

          "Account Debtor" means any Person who is or may become obligated to
Grantors under, with respect to, or on account of, an Account, Chattel Paper or
General Intangibles (including a payment intangible).

          "Accounts" means all "accounts," as such term is defined in the Code,
now owned or hereafter acquired by Grantors, including (a) all accounts
receivable, other receivables, book debts and other forms of obligations (other
than forms of obligations evidenced by Chattel Paper or Instruments) (including
any such obligations that may be characterized as an account or contract right
under the Code), (b) all of Grantors' rights in, to and under all purchase
orders or receipts for goods or services, (c) all of Grantors' rights to any
goods represented by any of the foregoing (including unpaid sellers' rights of
rescission, replevin, reclamation and stoppage in transit and rights to
returned, reclaimed or repossessed goods), (d) all rights to payment due to
Grantors for property sold, leased, licensed, assigned or otherwise disposed of,
for a policy of insurance issued or to be issued, for a secondary obligation
incurred or to be incurred, for energy provided or to be provided, for the use
or hire of a vessel under a charter or other contract, arising out of the use of
a credit card or charge card, or for services rendered or to be rendered by
Grantors or in connection with any other transaction (whether or not yet earned
by performance on the part of Grantors), (e) all health care insurance
receivables and (f) all collateral security of any kind, given by any Account
Debtor or any other Person with respect to any of the foregoing.

          "Affiliate" means (a) any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with Grantors, (b) any
employee or director of Grantors or any Person specified in clauses (a) or (b),
(c) any member of the immediate family (as that term is defined in Item 404(a)
of Regulation S-K promulgated by the Securities and Exchange Commission) of any
Person specified in clauses (a) or (b), (d) a Person in which one or more
Persons described in (a), (b) or (c) have a direct or indirect beneficial
interest (except an interest not exceeding 5% of a Person whose shares are
publicly traded) and (e) any associate (as such term is defined in Rule 12b-2
promulgated under the Securities Exchange Act of 1934, as amended) of any Person
specified in clauses (a), (b), (c) or (d). For the purposes of this definition,
"control," when used with respect to any specified person, means the power to
direct the management and policies of such person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

                                       19
<PAGE>

          "Bankruptcy Code" means the provisions of Title 11 of the United
States Code, 11 U.S.C. Sections 101 et seq. "Business Day" means any day that is
not a Saturday, a Sunday or a day on which banks are required or permitted to be
closed in the State of California;

          "Charges" means all federal, state, county, city, municipal, local,
foreign or other governmental taxes, levies, assessments, charges, liens, claims
or encumbrances upon or relating to (a) the Collateral, (b) the Obligations, (c)
the employees, payroll, income or gross receipts of Grantors, (d) Grantors'
ownership or use of any properties or other assets, or (e) any other aspect of
Grantors' business.

          "Chattel Paper" means any "chattel paper," as such term is defined in
the Code, including electronic chattel paper, now owned or hereafter acquired by
Grantors.

          "Code" means the Uniform Commercial Code as the same may, from time to
time, be enacted and in effect in the State of Delaware; provided, that to the
extent that the Code is used to define any term herein and such term is defined
differently in different Articles of the Code, the definition of such term
contained in Article 9 shall govern; provided further, that in the event that,
by reason of mandatory provisions of law, any or all of the attachment,
perfection or priority of, or remedies with respect to, Secured Party' Lien on
any Collateral is governed by the Uniform Commercial Code as enacted and in
effect in a jurisdiction other than the State of Delaware, the term "Code" shall
mean the Uniform Commercial Code as enacted and in effect in such other
jurisdiction solely for purposes of the provisions thereof relating to such
attachment, perfection, priority or remedies and for purposes of definitions
related to such provisions.

          "Collateral" has the meaning ascribed to it in Section 2(a).

          "Contracts" means all "contracts," as such term is defined in the
Code, now owned or hereafter acquired by Grantors, in any event, including all
contracts, undertakings, or agreements (other than rights evidenced by Chattel
Paper, Documents or Instruments) in or under which Grantors may now or hereafter
have any right, title or interest, including any agreement relating to the terms
of payment or the terms of performance of any Product.

          "Control Letter" means a letter agreement between Secured Party and
(i) the issuer of uncertificated securities with respect to uncertificated
securities in the name of Grantors, (ii) a securities intermediary with respect
to securities, whether certificated or uncertificated, securities entitlements
and other financial assets held in a securities account in the name of Grantors,
(iii) a futures commission merchant or clearing house, as applicable, with
respect to commodity accounts and commodity contracts held by Grantors, whereby,
among other things, the issuer, securities intermediary or futures commission
merchant disclaims any security interest in the applicable financial assets,
acknowledges the Lien of Secured Party on such financial assets, and agrees to
follow the instructions or entitlement orders of Secured Party without further
consent by Grantors.

          "Copyright License" means any and all rights now owned or hereafter
acquired by Grantors under any written agreement granting any right to use any
Copyright or Copyright registration.

                                       20
<PAGE>

          "Copyright" means all of the following now owned or hereafter adopted
or acquired by Grantors: (a) all copyrights, all Product, and General
Intangibles of like nature (whether registered or unregistered), all
registrations and recordings thereof, and all applications in connection
therewith, including all registrations, recordings and applications in the
United States Copyright Office or in any similar office or agency of the United
States, any state or territory thereof, or any other country or any political
subdivision thereof, and (b) all reissues, extensions or renewals thereof.

          "Default" means any event that, with the passage of time or notice or
both, would, unless cured or waived, become an Event of Default.

          "Deposit Accounts" means all "deposit accounts" as such term is
defined in the Code, nor or hereafter held in the name of Grantors.

          "Designated Breach" shall mean any breach by the Grantors of Sections
5(a)(ii), 5(a)(v), 5(a)(viii), 5(c)(i), 5(c)(ii), 5(f), 5(g), 5(i), 5(j), 5(k),
or 16 of this Agreement.

          "Documents" means all "documents," as such term is defined in the
Code, now owned or hereafter acquired by Grantors, wherever located.

          "Dollars" or "$" means lawful currency of the United States of
America.

          "Equipment" means all "equipment," as such term is defined in the
Code, now owned or hereafter acquired by Grantors, wherever located and, in any
event, including all Grantors' machinery and equipment, including processing
equipment, conveyors, machine tools, data processing and computer equipment,
including embedded software and peripheral equipment and all engineering,
processing and manufacturing equipment, office machinery, furniture, materials
handling equipment, tools, attachments, accessories, automotive equipment,
trailers, trucks, forklifts, molds, dies, stamps, motor vehicles, rolling stock
and other equipment of every kind and nature, trade fixtures and fixtures not
forming a part of real property, together with all additions and accessions
thereto, replacements therefor, all parts therefor, all substitutes for any of
the foregoing, fuel therefor, and all manuals, drawings, instructions,
warranties and rights with respect thereto, and all products and proceeds
thereof and condemnation awards and insurance proceeds with respect thereto.

          "Equity Security" means (a) in the case of a corporation, corporate
stock, (b) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
corporate stock, (c) in the case of a partnership, partnership interests
(whether general or limited), (d) in the case of a limited liability company,
limited liability company interests, (e) any other interest or participation
that confers on a Person the right to receive a share of the profits and losses
of, or distributions of assets of, the issuing Person and (f) any stock or
security that is directly or indirectly convertible into, exercisable for, or
exchangeable for any of the securities described in clauses (a), (b), (c), (d)
and (e) above, including without limitation any option, warrant or exchangeable
debt security.

          "Event of Default" means (a) the failure by Grantors to pay any
amounts when due to Secured Party under the Secured Promissory Note or the
occurrence of any other event of default thereunder; (b) any material breach of

                                       21
<PAGE>

any obligation of Grantors pursuant to this Agreement not constituting a payment
obligation, or (c) the bankruptcy, insolvency, or liquidation of any Grantor.

          "Event of Default Designated Breach" means any breach by Grantors of
Sections 5(a)(ii) (as it relates to a pledge of Grantors' equity interests with
respect to any Subsidiary), 5(a)(ix), 5(f), 5(g), 5(i), 5(j), 5(k), 5(l) or 16
of this Agreement and any breach by Grantors of any obligation of Grantors under
the Secured Promissory Note not constituting a payment obligation.

          "Fixtures" means all "fixtures" as such term is defined in the Code,
now owned or hereafter acquired by Grantors.

          "GAAP" means generally accepted accounting principles in the United
States of America consistently applied.

          "General Intangibles" means all "general intangibles," as such term is
defined in the Code, now owned or hereafter acquired by Grantors, including all
right, title and interest that Grantors may now or hereafter have in or under
any Contract, all payment intangibles, customer lists, Licenses, Copyrights,
Trademarks, Patents, and all applications therefor and reissues, extensions or
renewals thereof, rights in Intellectual Property (including any collateral,
allied, subsidiary or merchandising rights appurtenant or related to any Product
or rights to distribute, sell, rent, license the exhibition of, and otherwise
exploit and turn to account any Product), interests in partnerships, joint
ventures and other business associations, licenses, permits, copyrights, trade
secrets, proprietary or confidential information, inventions (whether or not
patented or patentable), technical information, procedures, designs, knowledge,
know-how, software, data bases, data, skill, expertise, experience, processes,
models, drawings, materials and records, goodwill (including the goodwill
associated with any Trademark or Trademark License), all rights and claims in or
under insurance policies (including insurance for fire, damage, loss and
casualty, whether covering personal property, real property, tangible rights or
intangible rights, all liability, life, key man and business interruption
insurance, and all unearned premiums), uncertificated securities, choses in
action, deposit, checking and other bank accounts, rights to receive tax refunds
and other payments, rights to receive dividends, distributions, cash,
Instruments and other property in respect of or in exchange for pledged Stock
and Investment Property, rights of indemnification, all books and records,
correspondence, credit files, invoices and other papers, including without
limitation all tapes, cards, computer runs and other papers and documents in the
possession or under the control of Grantors or any computer bureau or service
company from time to time acting for Grantors.

          "Goods" means all "goods" as defined in the Code, now owned or
hereafter acquired by Grantors, wherever located, including embedded software to
the extent included in "goods" as defined in the Code.

          "Instruments" means all "instruments," as such term is defined in the
Code, now owned or hereafter acquired by Grantors, wherever located, and, in any
event, including all certificated securities, all certificates of deposit, and
all promissory notes and other evidences of indebtedness, other than instruments
that constitute, or are a part of a group of writings that constitute, Chattel
Paper.

                                       22
<PAGE>

          "Intellectual Property" means any and all Licenses, Patents,
Copyrights, Trademarks, and the goodwill associated with such Trademarks.

          "Inventory" means all "inventory," as such term is defined in the
Code, now owned or hereafter acquired by Grantors, wherever located, and in any
event including inventory, merchandise, goods and other personal property that
are held by or on behalf of Grantors for sale or lease or are furnished or are
to be furnished under a contract of service, or that constitute raw materials,
work in process, finished goods, returned goods, or materials or supplies of any
kind, nature or description used or consumed or to be used or consumed in
Grantors' business or in the processing, production, packaging, promotion,
delivery or shipping of the same, including all supplies and embedded software.

          "Investment Property" means all "investment property" as such term is
defined in the Code now owned or hereafter acquired by Grantors, wherever
located, including (i) all securities, whether certificated or uncertificated,
including stocks, bonds, interests in limited liability companies, partnership
interests, treasuries, certificates of deposit, and mutual fund shares; (ii) all
securities entitlements of Grantors, including the rights of Grantors to any
securities account and the financial assets held by a securities intermediary in
such securities account and any free credit balance or other money owing by any
securities intermediary with respect to that account; (iii) all securities
accounts of Grantors; (iv) all commodity contracts of Grantors; and (v) all
commodity accounts held by Grantors.

          "Letter-of-Credit Rights" means "letter-of-credit rights" as such term
is defined in the Code, now owned or hereafter acquired by Grantors, including
rights to payment or performance under a letter of credit, whether or not
Grantors, as beneficiary, has demanded or is entitled to demand payment or
performance.

          "License" means any Copyright License, Patent License, Trademark
License or other license of rights or interests now held or hereafter acquired
by Grantors.

          "Lien" means any mortgage or deed of trust, pledge, hypothecation,
assignment, deposit arrangement, lien, charge, claim, security interest,
easement or encumbrance, or preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever (including any lease
or title retention agreement, any financing lease having substantially the same
economic effect as any of the foregoing, and the filing of, or agreement to
give, any financing statement perfecting a security interest under the Code or
comparable law of any jurisdiction).

          "Notice of Security Interest in Copyrights" and "Notice of Security
Interest in Patents and Trademarks" are each defined in Section 5(c)(v).

          "Obligations" means all loans, advances, debts, liabilities and
obligations for the performance of covenants, tasks or duties or for payment of
monetary amounts (whether or not such performance is then required or
contingent, or such amounts are liquidated or determinable) owing by Grantors to
Secured Party, and all covenants and duties regarding such amounts, of any kind
or nature, present or future, whether or not evidenced by any note, agreement or
other instrument, arising under the Secured Promissory Note, this Security
Agreement or any other agreement executed in connection with the foregoing. This

                                       23
<PAGE>

term includes all principal, interest (including all interest that accrues after
the commencement of any case or proceeding by or against Grantors in bankruptcy,
whether or not allowed in such case or proceeding), Charges, expenses,
attorneys' fees and any other sum chargeable to Grantors under the Secured
Promissory Note, this Security Agreement or any other agreement heretofore or
hereafter executed by Grantors in favor of Secured Party.

          "Patent License" means rights under any written agreement now owned or
hereafter acquired by Grantors granting any right with respect to any invention
on which a Patent is in existence.

          "Patents" means all of the following in which Grantors now holds or
hereafter acquires any interest: (a) all letters patent of the United States or
of any other country, all registrations and recordings thereof, and all
applications for letters patent of the United States or of any other country,
including registrations, recordings and applications in the United States Patent
and Trademark Office or in any similar office or agency of the United States,
any State, or any other country, and (b) all reissues, continuations,
continuations-in-part or extensions thereof.

          "Permitted Encumbrances" means the following encumbrances: (a) Liens
for taxes or assessments or other governmental Charges not yet due and payable
or which are being contested in good faith by Grantors; (b) pledges or deposits
of money securing statutory obligations under workmen's compensation,
unemployment insurance, social security or public liability laws or similar
legislation; (c) pledges or deposits of money securing bids, tenders, contracts
(other than contracts for the payment of money) or leases to which Grantors is a
party as lessee made in the ordinary course of business; (d) inchoate and
unperfected guild, workers', mechanics' or similar liens arising in the ordinary
course of business; (e) carriers', warehousemen's, suppliers' or other similar
possessory liens arising in the ordinary course of business and securing
liabilities in an outstanding aggregate amount not in excess of $25,000 at any
time, so long as such Liens attach only to Inventory; (f) deposits securing, or
in lieu of, surety, appeal or customs bonds in proceedings to which Grantors are
parties; (g) presently existing or hereafter created Liens in favor of Secured
Party; and (h) presently existing Liens in favor of National Lampoon, Inc.
pursuant to that certain General Security Agreement dated August, 2002, but
solely to the extent the same remain subordinated to the Liens granted hereunder
in accordance with the terms of that certain Subordination Agreement of even
date herewith between National Lampoon, Inc. and National Lampoon Networks, Inc.

          "Permitted Junior Lien" means a lien or encumbrance on the Collateral
(a) that is in all respects junior in priority to the Liens granted to Secured
Party pursuant hereto and (b) that is granted to a financial institution as part
of a financing transaction in which the Grantors incurs funded indebtedness.

          "Person" means any individual, sole proprietorship, partnership, joint
venture, trust, unincorporated organization, association, corporation, limited
liability company, institution, public benefit corporation, other entity or
government (whether federal, state, county, city, municipal, local, foreign, or
otherwise, including any instrumentality, division, agency, body or department
thereof).

                                       24
<PAGE>

          "Proceeds" means "proceeds," as such term is defined in the Code,
including (a) any and all proceeds of any insurance, indemnity, warranty or
guaranty payable to Grantors from time to time with respect to any of the
Collateral, (b) any and all payments (in any form whatsoever) made or due and
payable to Grantors from time to time in connection with any requisition,
confiscation, condemnation, seizure or forfeiture of all or any part of the
Collateral by any Governmental Authority (or any Person acting under color of
governmental authority), (c) any claim of Grantors against third parties (i) for
past, present or future infringement of any Patent or Patent License, or (ii)
for past, present or future infringement or dilution of any Copyright, Copyright
License, Trademark or Trademark License, or for injury to the goodwill
associated with any Trademark or Trademark License, (d) any recoveries by
Grantors against third parties with respect to any litigation or dispute
concerning any of the Collateral including claims arising out of the loss or
nonconformity of, interference with the use of, defects in, or infringement of
rights in, or damage to, Collateral, (e) all amounts collected on, or
distributed on account of, other Collateral, including dividends, interest,
distributions and Instruments with respect to Investment Property and pledged
Stock, and (f) any and all other amounts, rights to payment or other property
acquired upon the sale, lease, license, exchange or other disposition of
Collateral and all rights arising out of Collateral.

          "Product" means, without limitation, the cinematographic film
photoplay and sound records thereof, as well as trailers and clips thereof,
produced by means of any photographic, electronic, mechanical or other processes
or devises now or hereafter known, invented, used or contemplated, by which
photographs, films, drawings, images or other visual reproductions or
representations are or may be printed, imprinted, recorded or otherwise
preserved on film, tape or any other material of any description (whether
translucent or not) for later projection, exhibition or transmission by any
means or media now known or hereafter devised, in such manner that the same are
or appear to be in motion or in sequence on a screen, mirror, tube or other
medium or device, whether or not accompanied by sound record, relating to assets
owned by Grantors.

          "Security Agreement" means the Security Agreement of even date
herewith by and between Grantors and Secured Party, as the same may be amended,
supplemented, restated or otherwise modified from time to time.

          "Software" means all "software" as such term is defined in the Code,
now owned or hereafter acquired by Grantors, other than software embedded in any
category of Goods, including all computer programs and all supporting
information provided in connection with a transaction related to any program.

          "Solvent" means, with respect to any Person on a particular date, that
on such date (a) at fair valuations, all of the properties and assets of such
Person are greater than the sum of the debts, including contingent liabilities,
of such Person, (b) the present fair salable value of the properties and assets
of such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become absolute and
matured, (c) such Person is able to realize upon its properties and assets and
pay its debts and other liabilities, contingent obligations and other
commitments as they mature in the normal course of business, (d) such Person
does not intend to, and does not believe that it will, incur debts beyond such
Person's ability to pay as such debts mature, and (e) such Person is not engaged
in business or a transaction, and is not about to engage in business or a

                                       25
<PAGE>

transaction, for which such Person's properties and assets would constitute
unreasonably small capital after giving due consideration to the prevailing
practices in the industry in which such Person is engaged. In computing the
amount of contingent liabilities at any time, it is intended that such
liabilities will be computed at the amount that, in light of all the facts and
circumstances existing at such time, represents the amount that reasonably can
be expected to become an actual or matured liability.

          "Stock" means all shares, options, warrants, general or limited
partnership interests, membership interests or other equivalents (regardless of
how designated) of or in a corporation, partnership, limited liability company
or equivalent entity whether voting or nonvoting, including common stock,
preferred stock or any other "equity security" (as such term is defined in Rule
3a11-1 of the General Rules and Regulations promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934).

          "Subsidiary" means any Person of which equity securities or other
ownership interests having ordinary voting power to elect a majority of the
board of directors or other persons performing similar functions is owned or
controlled, directly or indirectly, by Grantors, one or more Subsidiaries of
Grantors, or any combination thereof.

          "Supporting Obligations" means all "supporting obligations" as such
term is defined in the Code, including letters of credit and guaranties issued
in support of Accounts, Chattel Paper, Documents, General Intangibles,
Instruments, or Investment Property.

          "Trademark License" means rights under any written agreement now owned
or hereafter acquired by Grantors granting any right to use any Trademark.

          "Trademarks" means all of the following now owned or hereafter
existing or adopted or acquired by Grantors: (a) all trademarks, trade names,
corporate names, business names, trade styles, service marks, logos, other
source or business identifiers, prints and labels on which any of the foregoing
have appeared or appear, designs and general intangibles of like nature (whether
registered or unregistered), all registrations and recordings thereof, and all
applications in connection therewith, including registrations, recordings and
applications in the United States Patent and Trademark Office or in any similar
office or agency of the United States, any state or territory thereof, or any
other country or any political subdivision thereof; (b) all reissues, extensions
or renewals thereof; and (c) all goodwill associated with or symbolized by any
of the foregoing.

          "Wholly-Owned Subsidiary" means any Subsidiary of which one hundred
percent (100%) of the voting stock, membership interests, or other equity
interests having ordinary voting power to elect directors or other persons
performing similar functions is owned or controlled, directly or indirectly, by
Grantors or one ore more Wholly-Owned Subsidiaries of Grantors.

          All undefined terms contained herein shall, unless the context
indicates otherwise, have the meanings provided for by the Code to the extent
the same are used or defined therein; in the event that any term is defined
differently in different Articles of the Code, the definition contained in
Article 9 shall control. Unless otherwise specified, references in the Security

                                       26
<PAGE>

Agreement to a Section, subsection section or clause refer to such Section,
subsection section or clause as contained in the Security Agreement. The words
"herein," "hereof" and "hereunder" and other words of similar import refer to
the Security Agreement as a whole, including all Annexes, Exhibits and
Schedules, as the same may from time to time be amended, restated, modified or
supplemented, and not to any particular section, subsection section or clause
contained in the Security Agreement or any such Annex, Exhibit or Schedule.

          Wherever from the context it appears appropriate, each term stated in
either the singular or plural shall include the singular and the plural, and
pronouns stated in the masculine, feminine or neuter gender shall include the
masculine, feminine and neuter genders. The words "including", "includes" and
"include" shall be deemed to be followed by the words "without limitation"; the
word "or" is not exclusive; references to Persons include their respective
successors and assigns or, in the case of governmental Persons, Persons
succeeding to the relevant functions of such Persons; and all references to
statutes and related regulations shall include any amendments of the same and
any successor statutes and regulations. Whenever any provision in this Security
Agreement refers to the knowledge (or an analogous phrase) of Grantors, such
words are intended to signify that Grantors has actual knowledge or awareness of
a particular fact or circumstance or that Grantors, if it had exercised
reasonable diligence, would have known or been aware of such fact or
circumstance.

                                       27
<PAGE>

                                       TO
                               SECURITY AGREEMENT

                              FILING JURISDICTIONS

                                       28
<PAGE>

                                   SCHEDULE II
                                       TO
                               SECURITY AGREEMENT

             INSTRUMENTS, CHATTEL PAPER, AND LETTER-OF-CREDIT RIGHTS

                                     [None]

                                       29
<PAGE>

                                  SCHEDULE III
                                       TO
                               SECURITY AGREEMENT

                SCHEDULE OF OFFICES, LOCATIONS OF COLLATERAL AND
                          RECORDS CONCERNING COLLATERAL

I.       Grantors' official names: National Lampoon, Inc., National Lampoon
         Networks, Inc., and National Lampoon Tours, Inc.

II.      Type of entity (e.g., corporation, partnership, business trust, limited
         partnership, limited liability company): Corporation

III.     Organizational identification numbers issued by Grantors' state of
         incorporation or organization or a statement that no such number has
         been issued:

         (a) National Lampoon, Inc., (Delaware) 3562246

         (b) National Lampoon Networks, Inc., (Delaware) 35557653

         (c) National Lampoon Tours, Inc., (California) C2464187

IV.      State(s) of Incorporation of Grantors:

         (a) National Lampoon, Inc., - Delaware

         (b) National Lampoon Networks, Inc., - Delaware

         (c) National Lampoon Tours, Inc., - California

V.       Chief Executive Office(s) and principal place(s) of business of
         Grantors:

            ---------------------------
            10900 Wilshire Boulevard, Suite 1000
            Los Angeles, California 90024

VI.      Corporate Offices of Grantors:

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

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

VII.     Warehouses: None

VIII.    Other Premises at which Collateral is Stored or Located: None

                                       30
<PAGE>

IX.      Locations of Records Concerning Collateral:

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

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

                                       31
<PAGE>

                                    EXHIBIT A

                                POWER OF ATTORNEY

          This Power of Attorney is executed and delivered by National Lampoon,
Inc., National Lampoon Networks, Inc., and National Lampoon Tours, Inc.,
("Grantors")to N. Williams Family Investment, L.P. (hereinafter referred to as
"Attorney"), as Secured Party, under a Security Agreement, dated as of January
28, 2005, and other related documents (the "Loan Documents"). No person to whom
this Power of Attorney is presented, as authority for Attorney to take any
action or actions contemplated hereby, shall be required to inquire into or seek
confirmation from Grantors as to the authority of Attorney to take any action
described below, or as to the existence of or fulfillment of any condition to
this Power of Attorney, which is intended to grant to Attorney unconditionally
the authority to take and perform the actions contemplated herein, and Grantors
irrevocable waive any right to commence any suit or action, in law or equity,
against any person or entity which acts in reliance upon or acknowledges the
authority granted under this Power of Attorney. The power of attorney granted
hereby is coupled with an interest, and may not be revoked or canceled by
Grantors without Attorney's written consent.

          Grantors hereby irrevocably constitute and appoint Attorney (and all
officers, employees or agents designated by Attorney), with full power of
substitution, as Grantors' true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of Grantors and in the
names of Grantors or in its own name, from time to time in Attorney's
discretion, to take any and all appropriate action and to execute and deliver
any and all documents and instruments which may be necessary or desirable to
accomplish the purposes of the Security Agreement and, without limiting the
generality of the foregoing, Grantors hereby grant to Attorney the power and
right, on behalf of Grantors, without notice to or assent by Grantors, and at
any time, to do the following: (a) change the mailing address of Grantors, open
a post office box on behalf of Grantors, open mail for Grantors, and ask,
demand, collect, give acquaintances and receipts for, take possession of,
endorse any invoices, freight or express bills, bills of lading, storage or
warehouse receipts, drafts against debtors, assignments, verifications, and
notices in connection with any property of Grantors; (b) effect any repairs to
any asset of Grantors, or continue or obtain any insurance and pay all or any
part of the premiums therefor and costs thereof, and make, settle and adjust all
claims under such policies of insurance, and make all determinations and
decisions with respect to such policies; (c) pay or discharge any taxes, liens,
security interests, or other encumbrances levied or placed on or threatened
against Grantors or their property; (d) defend any suit, action or proceeding
brought against Grantors if Grantors do not defend such suit, action or
proceeding or if Attorney believes that Grantors are not pursuing such defense
in a manner that will maximize the recovery to Attorney, and settle, compromise
or adjust any suit, action, or proceeding described above and, in connection
therewith, give such discharges or releases as Attorney may deem appropriate;
(e) file or prosecute any claim, litigation, suit or proceeding in any court of
competent jurisdiction or before any arbitrator, or take any other action
otherwise deemed appropriate by Attorney for the purpose of collecting any and
all such moneys due to Grantors whenever payable and to enforce any other right
in respect of Grantors' property; (f) cause the certified public accountants
then engaged by Grantors to prepare and deliver to Attorney at any time and from
time to time, promptly upon Attorney's request, the following reports: (1) a
reconciliation of all accounts, (2) an aging of all accounts, (3) trial

                                       32
<PAGE>

balances, (4) test verifications of such accounts as Attorney may request, and
(5) the results of each physical verification of inventory; (g) communicate in
its own name with any party to any Contract with regard to the assignment of the
right, title and interest of such Grantors in and under the Contracts and other
matters relating thereto; (h) to file such financing statements with respect to
the Security Agreement, with or without Grantors' signature, or to file a
photocopy of the Security Agreement in substitution for a financing statement,
as Secured Party may deem appropriate and to execute in each Grantor's name such
financing statements and amendments thereto and continuation statements which
may require such Grantor's signature; and (i) execute any endorsements,
assignments or other instruments of conveyance or transfer with respect to the
Collateral and to otherwise direct such sale or resale, all as though Attorney
were the absolute owner of the property of Grantors for all purposes, and to do,
at Attorney's option and Grantors' expense, at any time or from time to time,
all acts and other things that Attorney reasonably deems necessary to perfect,
preserve, or realize upon Grantors' property or assets and Attorney's Liens
thereon, all as fully and effectively as Grantors might do. Grantors hereby
ratify, to the extent permitted by law, all that said Attorney shall lawfully do
or cause to be done by virtue hereof.

          IN WITNESS WHEREOF, this Power of Attorney is executed by Grantors,
and Grantors have caused the seals to be affixed pursuant to the authority of
the board of directors this 28th day of January, 2005.

                                             GRANTORS:

                                             NATIONAL LAMPOON, INC.,

                                             By:
                                                 -------------------------------
                                             Name:
                                                   -----------------------------
                                             Title:
                                                    ----------------------------

                                             NATIONAL LAMPOON NETWORKS, INC.,

                                             By:
                                                 -------------------------------
                                             Name:
                                                   -----------------------------
                                             Title:
                                                    ----------------------------

                                       33
<PAGE>

                                             NATIONAL LAMPOON TOURS, INC.,

                                             By:
                                                 -------------------------------
                                             Name:
                                                   -----------------------------
                                             Title:
                                                    ----------------------------

                                       34
<PAGE>

                                             NOTARY PUBLIC CERTIFICATE

          On this 28th day of January, 2005, ____________________ who is
personally known to me appeared before me in his/her capacity as the
___________________ of _________ ("Grantor") and executed on behalf of Grantor
the Power of Attorney in favor of _____________ to which this Certificate is
attached.

                                        ------------------------------------
                                        Notary Public

                                       35
<PAGE>

                               EXHIBIT 5(c)(v)(A)

                                     FORM OF
                     NOTICE OF SECURITY INTEREST IN PATENTS
                                 AND TRADEMARKS

          NOTICE IS HEREBY GIVEN that National Lampoon, Inc., a Delaware
corporation, National Lampoon Networks, Inc., a Delaware corporation and
National Lampoon Tours, Inc., a California corporation, (collectively
"Grantors") with office located at 10900 Wilshire Boulevard, Suite 1000, Los
Angeles, California 90024, and N. Williams Family Investments, L.P. (the
"Secured Party") with an address at c/o Lake City Bank, P.O. Box 11053, Fort
Wayne, Indiana 46855, Attn: Keith Davis, Trust Officer, have entered into a
Security Agreement dated as of January 28, 2005 (the "Security Agreement").

          Pursuant to the Security Agreement, the Grantors have conveyed,
pledged, assigned and transferred to the Secured Party, and have granted to the
Secured Party, a security interest in, (a) the registered patents, applications
for registration of patents, and licenses of registered patents listed in
Schedule A hereto, (b) the registered trademarks and service marks, applications
for registration of trademarks and service marks, and licenses of registered
trademarks and service marks listed in Schedule B hereto, together with the
goodwill of the business symbolized thereby, (c) all actions for infringement
concerning the foregoing, and (d) all receivables arising out of the foregoing,
to secure the payment, performance and observance of the Obligations as defined
in the Security Agreement.

          The Commissioner of Patents and Trademarks is requested to record this
notice in its records.

Dated: January 28, 2005

                                              NATIONAL LAMPOON, INC.,

                                              By:
                                                  ------------------------------
                                              Name:
                                                   -----------------------------
                                              Title:
                                                     ---------------------------

                                              NATIONAL LAMPOON NETWORKS, INC.,

                                              By:
                                                  ------------------------------
                                              Name:
                                                   -----------------------------
                                              Title:
                                                     ---------------------------

                                       1
<PAGE>

                                              NATIONAL LAMPOON TOURS, INC.,

                                              By:
                                                  ------------------------------
                                              Name:
                                                   -----------------------------
                                              Title:
                                                     ---------------------------

                                       2
<PAGE>

                               EXHIBIT 5(c)(v)(B)

                                     FORM OF
                         NOTICE OF SECURITY INTEREST IN
                     AND COLLATERAL ASSIGNMENT OF COPYRIGHTS

          NOTICE IS HEREBY GIVEN that National Lampoon, Inc., a Delaware
corporation, National Lampoon Networks, Inc., a Delaware corporation and
National Lampoon Tours, Inc., a California corporation, (collectively
"Grantors"), with office located at 10900 Wilshire Boulevard, Suite 1000, Los
Angeles, California 90024, and N. Williams Family Investments, L.P. (the
"Secured Party") with an address at c/o Lake City Bank, P.O. Box 11053, Fort
Wayne, Indiana 46855, Attn: Keith Davis, Trust Officer, have entered into a
Security Agreement dated as of January 28, 2005 (the "Security Agreement").

          To secure the Obligations described in the Security Agreement,
Grantors grant and pledge to Secured Party a security interest in all of
Grantors' right, title and interest in, to and under all Copyrights, whether now
owned by or owing to, or hereafter acquired by or arising in favor of Grantors
including without limitation all Copyrights listed on Schedule A, all Products
related thereto, and including without limitation all proceeds thereof (such as,
by way of example but not by way of limitation, license royalties and proceeds
of infringement suits), the right to sue for past, present and future
infringements, all rights corresponding thereto throughout the world and all
re-issues, divisions continuations, renewals, extensions and
continuations-in-part thereof.

          This security interest is granted in conjunction with the security
interest granted to Secured Party under the Security Agreement. The rights and
remedies of Secured Party with respect to the security interest granted hereby
are in addition to those set forth in the Security Agreement, and those which
are now or hereafter available to Secured Party as a matter of law or equity.

          Each right, power and remedy of Secured Party provided for herein or
in the Security Agreement, or now or hereafter existing at law or in equity
shall be cumulative and concurrent and shall be in addition to every right,
power or remedy provided for herein and the exercise by Secured Party of any one
or more of the rights, powers or remedies provided for in this Intellectual
Property Security Agreement or the Security Agreement, or now or hereafter
existing at law or in equity, shall not preclude the simultaneous or later
exercise by any person, including Secured Party, of any or all other rights,
powers or remedies.

Dated: January 28, 2005

                                       3
<PAGE>

                                               NATIONAL LAMPOON, INC.,

                                               By:
                                                   -----------------------------
                                               Name:
                                                    ----------------------------
                                               Title:
                                                      --------------------------

                                               NATIONAL LAMPOON NETWORKS, INC.,

                                               By:
                                                   -----------------------------
                                               Name:
                                                    ----------------------------
                                               Title:
                                                      --------------------------

                                               NATIONAL LAMPOON TOURS, INC.,

                                               By:
                                                   -----------------------------
                                               Name:
                                                    ----------------------------
                                               Title:
                                                      --------------------------

                                       4

<PAGE>

                                   SCHEDULE A

                              INTELLECTUAL PROPERTY

                             NATIONAL LAMPOON, INC.
               SCHEDULE OF REGISTERED INTELLECTUAL PROPERTY RIGHTS

1.       Federal Patent Registrations and Applications: None.

2.       Federal Copyright Registrations:

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
Heidi Miller's body          Video Cassette       National Lampoon, Inc.                   PA-386-058         08/15/1988
sculpting
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
How to have a moneymaking    Video Cassette       National Lampoon, Inc.                   PA-387-814         08/15/1988
garage sale
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Smart cookies don't crumble  Video Cassette       National Lampoon, Inc.                   PA-388-027         08/15/1988
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Chef Paul Prudhomme's        Video Cassette       National Lampoon, Inc.                   PA-388-030         08/15/1988
Louisiana kitchen
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Franco Columbu's Superset    Video Cassette       National Lampoon, Inc.                   PA-388-031         08/15/1988
shape-up
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Tracy Scoggins' Tough stuff  Video Cassette       National Lampoon, Inc.                   PA-410-491         08/15/1988
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Teen Steam                   Video Cassette       National Lampoon, Inc.                   PA-411-068         08/15/1988
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Ball talk:  baseball's       Video Cassette       National Lampoon, Inc.                   PA-418-830         04/25/1989
voices of summer
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Stand-up Reagan              Video Cassette       National Lampoon, Inc.                   PA-418-867         04/25/1989
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Debby Boone's Hug-a-long     Video Cassette       National Lampoon, Inc.                   PA-455-172         02/19/1989
songs
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Cybercops:  episode 1.       Website              National Lampoon, Inc.                  PA-1-000-987        08/02/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Gunnerville High.            Website              National Lampoon, Inc.                  PA-1-003-663        08/02/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       5
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
Ain't no time.               Sound Cassette and   National Lampoon, Inc.                 PAu-1-742-811        02/25/1993
                             Lyrical Sheet
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Rainbow TV: the              Sound Cassette       National Lampoon, Inc.                   SR-276-732         01/20/2000
all-inclusive network.
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Gunnerville High School.     Sound Cassette       National Lampoon, Inc.                   SR-276-734         01/20/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Editor's rant.               Sound Cassette       National Lampoon, Inc.                   SR-276-735         01/20/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Apocalyptic Al.              Sound Cassette       National Lampoon, Inc.                   SR-276-746         01/20/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Or we'll shoot this dog.     Sound Cassette       National Lampoon, Inc.                   SR-276-747         01/20/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Jenni.cam                    Sound Cassette       National Lampoon, Inc.                   SR-276-748         01/20/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
NLBS. Sound Cassette National Lampoon, Inc. SR-276-750 01/20/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Fantasy loser's league.      Sound Cassette       National Lampoon, Inc.                   SR-276-751         01/20/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon totally     Book                 National Lampoon, Inc.                  TX-3-984-295        12/12/1994
true facts:  a brand-new
collection of absurd
but-true real-life funny
stuff
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon's truly     Book                 National Lampoon, Inc.                  TX-4-051-392        11/02/1995
twisted cartoons:  if it's
tasteless, it's in here
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       6
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
National Lampoon presents    Book                 National Lampoon, Inc.                  TX-4-171-211        12/22/1995
true facts:  the big
book:  the complete,
unexpurgated assembly of
amazing ads, stupefying
signs, weird wedding
announcements, and other
absurd-but-true samples of
real -life funny stuff
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon's white     Book                 National Lampoon, Inc.                  TX-4-254-012        10/17/1995
bread snaps.
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National lampoon virtual     Printout             National Lampoon, Inc.                  TX-5-054-405        02/10/2000
candidate 2000.
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Trash tattoo.                Page                 National Lampoon, Inc.                  TX-5-067-799        02/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Smash & grab.                Website              National Lampoon, Inc.                  TX-5-357-156        01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Jenni.cam. Website National Lampoon, Inc. TX-5-357-157 01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
News on the march.           Website              National Lampoon, Inc.                  TX-5-357-158        01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Virtual candidate 2000.      Artwork for Website  National Lampoon, Inc.                  VA-1-021-500        02/10/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Enter this site or we'll     Photoprint           National Lampoon, Inc.                  VA-1-058-221        01/28/2000
shoot this dog
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Gunnerville High School.     Photoprint           National Lampoon, Inc.                  VA-1-058-222        01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Flashbacks. Computer Graphics National Lampoon, Inc. VA-1-058-223 01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Editor's rant.               Photoprint           National Lampoon, Inc.                  VA-1-058-224        01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       7
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
Apocalyptic Al               Computer Graphics    National Lampoon, Inc.                  VA-1-058-225        01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Adelphian Lodge.             Computer Graphics    National Lampoon, Inc.                  VA-1-058-226        01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Stick it to em.              Computer Graphics    National Lampoon, Inc.                  VA-1-058-227        01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Jenni.cam                    Photoprint           National Lampoon, Inc.                  VA-1-058-228        01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Rainbow TV - the             Photoprint and       National Lampoon, Inc.                  VA-1-058-229        01/28/2000
all-inclusive network.       Computer Graphics
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Worldwide waste of time.     Computer Graphics    National Lampoon, Inc.                  VA-1-058-230        01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Voyercam. Computer Graphics National Lampoon, Inc. VA-1-058-231 01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Trash tattoo.                Computer Graphics    National Lampoon, Inc.                  VA-1-058-232        01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Cybercops. Computer Graphics National Lampoon, Inc. VA-1-058-233 01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Gunnerville High School.     Computer Graphics    National Lampoon, Inc.                  VA-1-058-234        01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
NLBS. Computer Graphics National Lampoon, Inc. VA-1-058-235 01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Fantasy Loser's League.      Computer Graphics    National Lampoon, Inc.                  VA-1-058-236        01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Smash & grab.                Computer Graphics    National Lampoon, Inc.                  VA-1-058-237        01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
The dregs                    Website              National Lampoon, Inc.                  TX 5-092-744        01/28/2000
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                   B: 578989
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 581764
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 594460
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 596546
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 606623
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       8
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
National Lampoon                                  National Lampoon, Inc.                    B 611489
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 624921
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 618430
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 633959
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 633958
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 639914
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 668972
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 668973
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 668974
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 668975
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 674274
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 688090
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 688714
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 697369
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 709177
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 711551
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 717768
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 725263
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 735998
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 740465
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 745276
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 757418
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       9
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
National Lampoon                                  National Lampoon, Inc.                    B 758587
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 767782
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 773307
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 782489
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 785901
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 801588
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 803007
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 809087
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 818221
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 825730
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 834403
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 837511
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 848924
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 855812
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 860635
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 871008
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 874933
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 884387
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 891302
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 902787
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 918610
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 918611
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       10
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
National Lampoon                                  National Lampoon, Inc.                    B 925057
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 935241
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 937733
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 958315
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 958316
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 971823
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 973535
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 984166
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 988340
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 996475
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                     B 4297
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 12808
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 21720
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 25065
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 33125
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 40529
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 48703
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 57325
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 64185
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 74832
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 81754
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 85384
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       11
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
National Lampoon                                  National Lampoon, Inc.                    B 137088
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 156295
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 152103
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 156296
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 164353
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 170216
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 177760
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 233599
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 248569
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 248570
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 265694
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 273054
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                    B 281437
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon.  The                            National Lampoon, Inc.                    B 907480
Best of Number 4
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
The Best of National                              National Lampoon, Inc.                    A 336334
Lampoon No. 1
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
The Best of National                              National Lampoon, Inc.                    A 423189
Lampoon No. 3
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Letters From the Editor of                        National Lampoon, Inc.                    A 420415
National lampoon
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       12
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
National Lampoon:  This                           National Lampoon, Inc.                    A 532080
Side of Parodies
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Would You By a Used Car                           National Lampoon, Inc.                    A 317995
From This Man?
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon:  a Dirty                        National Lampoon, Inc.                    A 728026
Book
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Art Poster Book                                   National Lampoon, Inc.                    A 694476
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon:  The                            National Lampoon, Inc.                    A 764189
Best of No. 6
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon Presents                         National Lampoon, Inc.                    A 854544
the Naked and the Nude
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon, the                             National Lampoon, Inc.                    A 578840
Paperback Conspiracy
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon:  the                            National Lampoon, Inc.                    A 529031
Best of Number 4, Vol. 1,
No. 5
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon:  The                            National Lampoon, Inc.                    A 681033
Gentleman's Bathroom
Companion
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
The 199th Birthday Book                           National Lampoon, Inc.                    A 741350
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
The Job of Sex:  A                                National Lampoon, Inc.                    A 550712
Workingman's Guide to
Productive Lovemaking
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       13
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
Missing White House Tapes;                        National Lampoon, Inc.                    DU 89349          01/30/1974
Impeachment Day Ceremonies
Script
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon 1964 High                        National Lampoon, Inc.                    A 541513
School Yearbook Parody
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon Presents                         National Lampoon, Inc.                    A 828588
the Up Yourself Book
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
The Breast of National                            National Lampoon, Inc.                    A 377706
Lampoon; a Collection of
Sexual Humor
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon Comics                           National Lampoon, Inc.                    A 572874
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
The National Lampoon                              National Lampoon, Inc.                    A 479368
Encyclopedia of Humor
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon comedy                           National Lampoon, Inc.                 PAu-1-434-923        09/20/1990
playoffs.
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon, another                         National Lampoon, Inc.                   TX-232-406         03/29/1979
dirty book
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon Sunday                           National Lampoon, Inc.                   TX-347-662         08/31/1979
newspaper parody
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       14
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
National Lampoon, slightly                        National Lampoon, Inc.                   TX-365-426         11/07/1979
higher in Canada:  an
unassuming anthology of
Canadian-type material
from the pages of the
National Lampoon
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
The Iron on book:  sixteen                        National Lampoon, Inc.                   TX-379-403         08/31/1979
original designs for your
chest
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
The National Lampoon's                            National Lampoon, Inc.                   TX-384-974         11/19/1979
Animal house book
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon's                                National Lampoon, Inc.                   TX-396-473         11/05/1979
Cartoons even we wouldn't
dare print:  a collection
of thoroughly
reprehensible cartoons
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Jeff Greenfield's Book of                         National Lampoon, Inc.                   TX-402-260         11/16/1979
books
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon's tenth                          National Lampoon, Inc.                   TX-540-642         03/25/1980
anniversary anthology
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon foto                             National Lampoon, Inc.                   TX-544-611         07/08/1980
funnies
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon true facts                       National Lampoon, Inc.                   TX-808-981         12/03/1981
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       15
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
Hitler's favorite cartoons                        National Lampoon, Inc.                   TX-907-682         04/21/1982
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon peekers                          National Lampoon, Inc.                   TX-945-741         06/23/1982
and other true facts
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon son of                           National Lampoon, Inc.                  TX-1-622-171        07/25/1985
cartoons even we wouldn't
dare print II:  a sequel
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon dirty                            National Lampoon, Inc.                  TX-1-797-519        04/15/1986
joke book
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon true                             National Lampoon, Inc.                  TX-2-906-982        08/07/1990
facts 1991 calendar
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon presents                         National Lampoon, Inc.                  TX-3-159-281        04/26/1991
true facts:  the book
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon true                             National Lampoon, Inc.                  TX-3-223-950        09/12/1991
facts 1992 calendar
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon presents                         National Lampoon, Inc.                  TX-3-273-518        03/17/1992
More true facts:  an
all-new collection of
absurd-but-true real-life
funny stuff
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon's Truly                          National Lampoon, Inc.                  TX-3-462-011        10/23/1992
tasteless cartoons:  the
best of the worst
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       16
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
That's sick:  The National                        National Lampoon, Inc.                  TX-3-799-435        04/14/1994
lampoon's rudest and
crudest cartoons
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                   TX 244-608         03/14/1979
                             -------------------- ------------------------------------ ------------------- -----------------
                                                                                           TX 244-607         03/14/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 244-606         03/14/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 244-605         03/14/1979
                             -------------------- ------------------------------------ ------------------- -----------------
                                                                                           TX 244-604         03/14/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 244-603         03/14/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 244-600         03/14/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 244-601         03/14/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 244-602         03/14/1979
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                   TX 347-663         03/14/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 347-668         03/14/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 347-672         03/14/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 347-669         05/03/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 347-667         05/03/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 347-666         05/01/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 347-673         05/01/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 347-674         05/01/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 347-664         09/04/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 347-665         09/04/1979
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       17
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
                                                                                           TX 347-670         09/05/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 347-671         09/05/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 360-828         10/19/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 360-829         10/19/1979
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                   TX 418-860         12/14/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 418-861         02/21/1980
                             -------------------- ------------------------------------ ------------------- -----------------
                                                                                           TX 418-862         02/21/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 424-859         02/21/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 483-274         03/24/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 486-569         05/29/1980
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                   TX 509-660         04/21/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 521-123         07/07/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 518-472         07/28/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 537-416         09/08/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 592-060         12/05/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 581-606         11/10/1980
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                   TX 644-795         12/01/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 644-828         01/05/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 675-911         04/23/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 644-829         01/26/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 671-101         03/03/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 675-910         03/30/1981
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       18
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
                                                                                           TX 689-192         05/01/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 706-321         05/22/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 718-965         06/25/1981
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                   TX 740-533         07/27/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 750-923         08/24/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 775-880         09/28/1981
                             -------------------- ------------------------------------ ------------------- -----------------
                                                                                           TX 789-928         10/23/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 823-506         12/30/1981
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                   TX 871-131         01/21/1982
                             --------------------                                      ------------------- -----------------
                                                                                           TX 854-039         02/26/1982
                             --------------------                                      ------------------- -----------------
                                                                                           TX 879-048         03/31/1982
                             --------------------                                      ------------------- -----------------
                                                                                           TX 895-622         04/21/1982
                             --------------------                                      ------------------- -----------------
                                                                                           TX 916-440         05/24/1982
                             --------------------                                      ------------------- -----------------
                                                                                           TX 923-569         06/23/1982
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                   TX 808-982         11/27/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 938-965         07/26/1982
                             --------------------                                      ------------------- -----------------
                                                                                           TX 973-106         08/25/1982
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-004-476        09/27/1982
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-004-477        10/25/1982
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-011-809        11/26/1982
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 1-054-013        12/27/1982
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-053-080        01/28/1983
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       19
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
                                                                                          TX 1-062-587        03/01/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-089-298        04/05/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-106-578        04/25/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-119-853        05/27/1983
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 1-190-353        06/24/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-194-913        07/25/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-193-077        08/25/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-204-103        10/03/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-230-792        10/31/1983
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 1-251-409        12/09/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-272-725        01/06/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-275-407        01/30/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-303-745        03/05/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-326-005        03/29/1984
                             --------------------                                      ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 1-349-455        04/26/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-352-688        05/29/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-383-533        06/28/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-394-294        07/26/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-408-020        08/24/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-425-928        09/26/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-456-819        10/29/1984
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 1-476-774        11/26/1984
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       20
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
                                                                                          TX 1-497-995        01/14/1985
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-515-582        01/29/1985
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-527-380        03/12/1985
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-553-740        04/03/1985
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-566-445        05/02/1985
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 1-582-633        05/29/1985
                             -------------------- ------------------------------------ ------------------- -----------------
                                                                                          TX 1-617-807        06/25/1985
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-634-940        07/29/1985
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-658-436        08/28/1985
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-662-714        09/20/1985
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-688-882        10/28/1985
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-702-932        12/02/1985
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 1-723-939        12/23/1985
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-744-842        01/27/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-791-363        02/26/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-794-559        04/07/1986
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 1-858-428        05/27/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-841-564        06/09/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-885-884        08/13/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-890-213        08/13/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-919-800        09/22/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-936-540        10/20/1986
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       21
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
National Lampoon                                  National Lampoon, Inc.                  TX 2-001-853        12/30/1986
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 2-142-606        09/21/1987
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-165-789        10/07/1987
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-171-738        10/28/1987
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 2-280-402        04/11/1988
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-280-401        04/11/1988
                             -------------------- ------------------------------------ ------------------- -----------------
                                                                                          TX 2-215-857        12/21/1987
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-218-600        12/24/1987
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-246-544        02/18/1988
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-299-669        04/18/1988
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 2-368-614        03/25/1988
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-368-620        03/25/1988
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-336-235        06/13/1988
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-376-066        08/22/1988
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 2-502-608        02/24/1989
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-526-863        11/02/1988
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-466-526        12/23/1988
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-465-327        12/23/1988
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-499-560        02/23/1989
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-528-082        04/14/1989
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 2-579-005        06/14/1989
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-620-993        08/18/1989
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       22
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
                                                                                          TX 2-670-005        10/27/1989
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 2-708-426        12/29/1989
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-811-501        04/23/1990
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-811-500        04/23/1990
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 2-858-033        07/17/1990
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-878-499        08/24/1990
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-924-929        10/30/1990
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 3-032-465        04/03/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-032-466        04/03/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-034-811        04/03/1991
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon                                  National Lampoon, Inc.                  TX 3-097-183        05/01/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-128-004        08/27/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-132-814        08/21/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-136-111        08/28/1991
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon best of                          National Lampoon, Inc.                   TX 347-661         08/31/1979
number . . .
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon best of                          National Lampoon, Inc.                   TX 418-992         08/31/1979
number . . .
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon best of                          National Lampoon, Inc.                   TX 810-136         12/10/1981
number . . .
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Gentleman's bathroom                              National Lampoon, Inc.                   TX 418-991         08/31/1979
companion . . .
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon . . .                            National Lampoon, Inc.                   TX 521-124         06/19/1980
anniversary anthology
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       23
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
                                                                                           TX 580-087         11/06/1980
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
National Lampoon All-new                          National Lampoon, Inc.                  TX 1-937-589        10/21/1986
true facts . . .
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
The National Lampoon                              National Lampoon, Inc.                  TX 3-243-157        02/12/1992
Treasury of Humor
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
That's sick:  The National                        National Lampoon, Inc.                  TX 3-799-435        04/14/1994
Lampoon's rudest and
crudest cartoons
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                   TX 141-752         03/10/1978
                             --------------------                                      ------------------- -----------------
                                                                                           TX 141-751         03/10/1978
                             --------------------                                      ------------------- -----------------
                                                                                           TX 141-750         03/10/1978
                             --------------------                                      ------------------- -----------------
                                                                                           TX 113-307         08/01/1978
                             --------------------                                      ------------------- -----------------
                                                                                           TX 117-728         09/28/1978
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                   TX 230-188         07/03/1978
                             --------------------                                      ------------------- -----------------
                                                                                           TX 230-189         07/03/1978
                             --------------------                                      ------------------- -----------------
                                                                                           TX 230-190         07/03/1978
                             --------------------                                      ------------------- -----------------
                                                                                           TX 230-191         07/03/1978
                             --------------------                                      ------------------- -----------------
                                                                                           TX 212-254         08/30/1978
                             --------------------                                      ------------------- -----------------
                                                                                           TX-212-253         11/15/1978
                             --------------------                                      ------------------- -----------------
                                                                                           TX-240-977         05/04/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 263-685         02/01/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX-254-991         02/08/1979
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       24
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
                                                                                           TX 277-479         07/03/1979
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                   TX 307-041         05/04/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 330-366         09/14/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 288-211         05/15/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 342-498         10/05/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 342-499         10/05/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 315-700         08/15/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 321-276         09/04/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 345-419         10/05/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 362-170         11/05/1979
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                   TX 461-212         11/19/1979
                             --------------------                                      ------------------- -----------------
                                                                                           TX 403-640         01/10/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 444-814         03/25/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 461-213         03/24/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 444-813         03/25/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 463-862         04/21/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 474-389         05/19/1980
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                   TX 510-133         06/19/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX-529-905         08/11/1980
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                   TX 628-621         10/31/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 628-620         10/31/1980
                             --------------------                                      ------------------- -----------------
                                                                                           TX 628-619         10/31/1980
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       25
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
                                                                                           TX 716-913         04/03/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 716-914         04/03/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 716-912         04/03/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 705-631         04/01/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 720-512         06/19/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 718-850         06/18/1981
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                   TX 744-974         04/01/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 752-833         07/28/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 760-062         09/08/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 772-506         09/28/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 808-343         11/23/1981
                             --------------------                                      ------------------- -----------------
                                                                                           TX 803-073         11/23/1981
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                   TX 826-660         12/17/1981
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
                                                                                           TX 844-264         01/27/1982
                             --------------------                                      ------------------- -----------------
                                                                                           TX 853-885         02/16/1982
                             --------------------                                      ------------------- -----------------
                                                                                           TX 888-162         04/12/1982
                             --------------------                                      ------------------- -----------------
                                                                                           TX 905-724         05/13/1982
                             --------------------                                      ------------------- -----------------
                                                                                           TX 921-984         06/17/1982
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                   TX 956-852         08/09/1982
                             --------------------                                      ------------------- -----------------
                                                                                           TX 965-368         09/08/1982
                             --------------------                                      ------------------- -----------------
                                                                                           TX 961-553         08/26/1982
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       26
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
                                                                                           TX 980-776         09/23/1982
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                  TX 1-074-929        10/15/1982
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-116-447        05/19/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-051-494        01/21/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-124-575        05/19/1983
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                  TX 1-136-605        11/16/1982
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-143-785        02/14/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-133-247        04/25/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-133-248        04/25/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-167-089        07/19/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-162-199        07/18/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-203-083        09/23/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-203-088        09/23/1983
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                  TX 1-256-837        12/07/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-249-255        12/05/1983
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-281-944        02/03/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-284-550        02/03/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-299-064        02/03/1984
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                  TX 1-395-577        05/21/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-352-273        05/21/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-352-250        05/21/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-392-501        07/20/1984
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       27
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
                                                                                          TX 1-433-721        09/24/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-398-583        07/20/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-451-520        10/12/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-446-273        10/12/1984
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-451-513        10/15/1984
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                  TX 1-560-747        04/25/1985
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-571-973        04/25/1985
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-566-298        04/25/1985
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-566-297        04/25/1985
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-562-352        04/25/1985
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                  TX 1-624-872        07/12/1985
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                  TX 1-948-492        11/28/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-948-493        11/28/1986
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                  TX 1-954-688        12/03/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-954-653        12/03/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-986-533        12/03/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-986-532        12/03/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-954-150        12/01/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-954-149        12/01/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-964-852        12/15/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-964-855        12/16/1986
                             --------------------                                      ------------------- -----------------
                                                                                          TX 1-964-853        12/15/1986
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       28
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
Heavy Metal                                       National Lampoon, Inc.                  TX 2-130-268        08/19/1987
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-136-702        08/19/1987
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-134-966        08/19/1987
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                  TX 2-879-177        08/06/1990
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-882-592        08/06/1990
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-879-582        08/06/1990
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-938-906        09/26/1990
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                   TX 19-219          03/09/1978
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-020-452        01/23/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-988-990        01/23/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-041-468        01/23/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-041-467        01/23/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-003-884        01/23/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 2-995-258        01/23/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-020-454        01/23/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-020-453        01/23/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-055-982        02/12/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-003-108        02/12/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-064-954        05/20/1991
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Heavy Metal                                       National Lampoon, Inc.                  TX 3-087-955        06/05/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-137-047        09/05/1991
                             --------------------                                      ------------------- -----------------
                                                                                          TX 3-162-297        09/30/1991
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       29
<PAGE>

<TABLE>
<CAPTION>
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
           TITLE                 DESCRIPTION                   CLAIMANT                     REG. NO.          REG. DATE
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
<S>                          <C>                  <C>                                      <C>                <C>
The Best Of Heavy Metal                           National Lampoon, Inc.                  TX 2-134-970        08/19/1987
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
My bod is for God                                 National Lampoon, Inc.                  PAu-424-054         07/29/1982
---------------------------- -------------------- ------------------------------------ ------------------- -----------------
Apocalypso now                                    National Lampoon, Inc.                  PAu-424-055         07/29/1982

---------------------------- -------------------- ------------------------------------ ------------------- -----------------
</TABLE>

                                       30
<PAGE>

3.       Federal Trademark and Service Mark Registrations:

<TABLE>
<CAPTION>
----------------------------- ---------------- ------------------------ ----------------------- ----------------------
     TRADEMARK/SERVICE          REGISTRANT         DESCRIPTION OF          REGISTRATION NO.       REGISTRATION DATE
            MARK                                   GOODS/SERVICES
----------------------------- ---------------- ------------------------ ----------------------- ----------------------
<S>                           <C>              <C>                            <C>                    <C>
NATIONAL LAMPOON              National         Magazine in                     907,211               02/02/1971
                              Lampoon, Inc.    International Class 16

                              National
                              Lampoon, Inc.

NATIONAL                                       Burly Bear and
LAMPOON                                        National Lampoon
                                               Networks shows
----------------------------- ---------------- ------------------------ ----------------------- ----------------------
HALF BAKED                    National         Entertainment, namely          2,183,937              08/25/1998
                              Lampoon          a continuing comedy
                              Networks, Inc.   show distributed over
                              (by assignment   television, satellite,
                              from Burly       audio an video media
                              Bear Networks,
                              Inc., on
                              9/30/2002)
----------------------------- ---------------- ------------------------ ----------------------- ----------------------
</TABLE>

                                       31
<PAGE>

<TABLE>
<CAPTION>
----------------------------- ---------------- ------------------------ ----------------------- ----------------------
     TRADEMARK/SERVICE          REGISTRANT         DESCRIPTION OF          REGISTRATION NO.       REGISTRATION DATE
            MARK                                   GOODS/SERVICES
----------------------------- ---------------- ------------------------ ----------------------- ----------------------
<S>                           <C>              <C>                            <C>                    <C>
BURLYVISION                   National         Entertainment services         2,417,408              01/02/2001
                              Lampoon          in the nature of a
                              Networks, Inc.   television show
                              (by assignment   featuring the best in
                              from Burly       student and
                              Bear Networks,   independent film work
                              Inc., on         distributed over
                              9/30/2002)       television, satellite,
                                               audio and video media,
                                               and via the global
                                               computer network
----------------------------- ---------------- ------------------------ ----------------------- ----------------------
STRIPPED DOWN                 National         Entertainment, namely,         2,418,998              01/09/2001
                              Lampoon          a continuing talk show
                              Networks, Inc.   in the field of drug
                              (by assignment   abuse, abortion and
                              from Burly       youth issues,
                              Bear Networks,   targeting college
                              Inc., on         students, distributed
                              9/30/2002)       over television,
                                               satellite, audio and
                                               video media, and via a
                                               global computer network
------------------------------ ------------------ ----------------------- --------------------- ----------------------
</TABLE>

                                       32
<PAGE>

<TABLE>
<CAPTION>
----------------------------- ---------------- ------------------------ ----------------------- ----------------------
     TRADEMARK/SERVICE          REGISTRANT         DESCRIPTION OF          REGISTRATION NO.       REGISTRATION DATE
            MARK                                   GOODS/SERVICES
----------------------------- ---------------- ------------------------ ----------------------- ----------------------
<S>                           <C>              <C>                            <C>                    <C>
PRESS JUNKY                    National Lampoon   Entertainment                2,419,086             01/09/2001
                               Networks, Inc.     services in the
                               (by assignment     nature of a show
                               from Burly Bear    featuring interviews
                               Networks, Inc.,    and promotion movies
                               on 9/30/2002)      distributed over
                                                  television,
                              satellite, audio and
                              video media, and via
                               the global computer
                                                  network.
------------------------------ ------------------ ----------------------- --------------------- ----------------------
LAARR'S LOUNGE                 National Lampoon   Entertainment                2,421,040             01/16/2001
                               Networks, Inc.     services in the
                               (by assignment     nature of a
                               from Burly Bear    television show
                               Networks, Inc.,    featuring the best in
                               on 9/30/2002)      student and
                                                  independent film work
                                                  distributed over television,
                                                  satellite, audio and video
                                                  media , and via the global
                                                  computer network.
------------------------------ ------------------ ----------------------- --------------------- ----------------------
</TABLE>

                                       33
<PAGE>

<TABLE>
<CAPTION>
----------------------------- ---------------- ------------------------ ----------------------- ----------------------
     TRADEMARK/SERVICE          REGISTRANT         DESCRIPTION OF          REGISTRATION NO.       REGISTRATION DATE
            MARK                                   GOODS/SERVICES
----------------------------- ---------------- ------------------------ ----------------------- ----------------------
<S>                           <C>              <C>                            <C>                    <C>
BURLYTV                        National Lampoon   Entertainment                2,560,466             04/09/2002
                               Networks, Inc.     services, namely,
                               (by assignment     television
                               from Burly Bear    production,
                               Networks, Inc.,    programming, and
                               on 9/30/2002)      distribution services
------------------------------ ------------------ ----------------------- --------------------- ----------------------
BURLY BEAR NETWORK PRESENTS    National Lampoon   Entertainment in the         2,618,289             09/10/2002
CELEBRITY HIGHWAY (and         Networks, Inc.     nature of an animated
design)                        (by assignment     television comedy
                               from Burly Bear    series
                               Networks, Inc.,
                               on 9/30/2002)
------------------------------ ------------------ ----------------------- --------------------- ----------------------
</TABLE>

4.       Internet domain name registrations:
         nationallampoon.com -- registered by J2 Communications
         nationalampoon.com -- registered by J2 Communications

                                       34Exhibit 10.5

                               REPAYMENT GUARANTY

         THIS  REPAYMENT  GUARANTY  (the  "Guaranty")  is made as of January 27,
2005, by National Lampoon Networks,  Inc., a Delaware corporation,  and National
Lampoon Tours, Inc., a California corporation (collectively, jointly, severally,
and jointly  and  severally,  the  "Guarantor"),  whose  address is set forth in
Paragraph 9 hereof, in favor of N. WILLIAMS FAMILY INVESTMENTS, L.P., an Arizona
limited  partnership  ("Lender"),  whose address is c/o Lake City Bank, P.O. Box
11053, Fort Wayne, Indiana 46855.

         1. Except as otherwise provided in this Guaranty,  all terms defined in
that certain  Security  Agreement of even date herewith by and between  National
Lampoon, Inc., a Delaware corporation ("Borrower"), Guarantor, and Lender (as it
may be amended and modified from time to time) (the "Security  Agreement") shall
have the same meaning when used in this Guaranty. Such defined terms are denoted
in the Security Agreement and in this Guaranty by initial capital letters.

         2. In order to induce Lender to loan to Borrower the sum of Two Million
Seven Hundred Thousand and No/100 Dollars  ($2,700,000.00)  (the "Loan"),  to be
evidenced  by that  certain  Secured  Promissory  Note (the "Note") of even date
herewith,  executed  by Borrower  and payable to the order of Lender,  Guarantor
hereby  unconditionally  and irrevocably,  jointly and severally,  guarantees to
Lender and to its  successors,  endorsees  and/or  assigns,  the full and prompt
payment of the principal sum of the Note in accordance  with its terms when due,
by acceleration or otherwise,  together with all interest accrued  thereon,  the
full and prompt  payment of all other sums,  together with all interest  accrued
thereon,  when due  under  the  terms  of the  Note,  and in any deed of  trust,
security  agreement,  and  other  assignment  or  agreement  referred  to in the
Security  Agreement and/or now or hereafter  securing the Note, or setting forth
obligations of Borrower in connection with the Loan (which  documents,  together
with the Note and the Security Agreement, are collectively referred to herein as
the "Loan Documents").  The obligations  guaranteed pursuant to this Paragraph 2
are hereinafter referred to as the "Guaranteed Obligations".  All payments under
this  Guaranty  shall be made to Lender in lawful money of the United  States of
America at the address of Lender at the beginning of this Guaranty or such other
location as Lender may  designate  in  writing.  Any amount  payable  under this
Guaranty  not paid when due and any  judgment  for such an amount  and  interest
thereon  shall bear  interest at the default rate set forth in the Note from the
due date or such  judgment  date,  respectively,  until such amount and interest
thereon are paid in full.  Guarantor agrees to pay such interest on demand.  All
Guaranteed   Obligations  will  be  paid  and  performed  by  Guarantor  without
counterclaim, deduction, defense, deferment, reduction or set-off.

         3. Each Guarantor agrees, represents and warrants to Lender as follows:

                  (a) Guarantor  shall continue to be liable under this Guaranty
and the provisions hereof shall remain in full force and effect  notwithstanding
(i) any modification,  agreement or stipulation  between Borrower and Lender, or
their respective  successors and assigns,  with respect to the Loan Documents or
the  obligations  encompassed  thereby,   including,   without  limitation,  the
Guaranteed Obligations; (ii) Lender's waiver of or failure to enforce any of the

<PAGE>

terms,  covenants  or  conditions  contained  in the  Loan  Documents  or in any
modification thereof;  (iii) any release of Borrower or any other guarantor from
any liability with respect to the Guaranteed Obligations; or (iv) any release or
subordination  of any real or personal  property then held by Lender as security
for the performance of the Guaranteed Obligations.

                  (b)  Guarantor's  liability under this Guaranty shall continue
until  all sums due  under  the  Note  have  been  paid in full  and  until  all
Guaranteed Obligations of Borrower to Lender have been satisfied,  and shall not
be reduced by virtue of any payment by Borrower of any amount due under the Note
or under any of the Loan Documents or by Lender's  recourse to any collateral or
security,  except  to the  extent  that  such  payment  or  collateral  has been
indefeasibly  paid to or obtained by Lender,  and applied against the Guaranteed
Obligations of Borrower.  Each Guarantor  acknowledges that Lender may apply any
payment made by Borrower to Lender to any obligation of Borrower to Lender under
the terms of any Loan  Documents  in such  amounts and such manner as Lender may
elect,  regardless of whether such application  complies with any instruction or
designation  given or made by Borrower  with  respect to such payment and agrees
that  any  such  application  shall  not in any  manner  reduce,  extinguish  or
otherwise affect the liability of the Guarantor or any one of them hereunder.

                  (c)  Guarantor  warrants and  represents to Lender that it now
has  and  will  continue  to  have  full  and  complete  access  to any  and all
information  concerning the  transactions  contemplated by the Loan Documents or
referred  to  therein,  the  value  of the  assets  owned or to be  acquired  by
Borrower,  Borrower's  financial  status and its  ability to pay and perform the
Guaranteed Obligations owed to Lender. Guarantor further warrants and represents
that it has approved  copies of the Loan  Documents and is fully informed of the
remedies Lender may pursue, with or without notice to Borrower,  in the event of
default under the Note or other Loan Documents. So long as any of the Guaranteed
Obligations remains unsatisfied or owing to Lender,  Guarantor shall keep itself
fully  informed  as to all aspects of  Borrower's  financial  condition  and the
performance of the Guaranteed Obligations.

                  (d)  Guarantor has filed or caused to be filed all tax returns
(federal,  state,  or local)  required to be filed by Guarantor and has paid all
taxes and other amounts shown thereon to be due (including,  without limitation,
any interest or penalties).

                  (e) Guarantor understands the Obligations of Borrower pursuant
to the Loan  Documents  and the  Guaranteed  Obligations  and has had  access to
information  about the  financial  condition  of  Borrower  and the  ability  of
Borrower to perform the Obligations of Borrower pursuant to the Loan Documents.

                  (f)  Guarantor  is providing  this  Guaranty at the request of
Borrower   in  order  to  induce   Lender  to  extend  or   continue   financial
accommodations to Borrower.

         4. The  liability  of  Guarantor  under this  Guaranty is a guaranty of
payment and not of collectability, and is not conditioned or contingent upon the
genuineness,  validity,  regularity or  enforceability  of the Loan Documents or
other  instruments  relating to the creation or  performance  of the  Guaranteed

                                       2
<PAGE>

Obligations  or the  pursuit by Lender of any  remedies  which it now has or may
hereafter have with respect thereto under the Loan Documents,  at law, in equity
or otherwise.

         5.  Guarantor  hereby  waives to the extent  permitted  by law: (i) all
notices to Guarantor,  to Borrower, or to any other person,  including,  but not
limited  to,  notices  of the  acceptance  of this  Guaranty,  or the  creation,
renewal, extension, modification or accrual of any of the Guaranteed Obligations
owed to Lender  and,  except to the  extent  set  forth in  Paragraph  7 hereof,
enforcement of any right or remedy with respect thereto, and notice of any other
matters  relating  thereto;  (ii) diligence and demand of payment,  presentment,
protest,  dishonor  and notice of  dishonor;  (iii) any  statute of  limitations
affecting  Guarantor's  liability hereunder or the enforcement thereof; and (iv)
all  principles  or  provisions  of law  which  conflict  with the terms of this
Guaranty.  Guarantor  further  agrees that Lender may enforce this Guaranty upon
the occurrence and during the continuation of an Event of Default under the Note
or the Loan Documents (as Event of Default is defined therein),  notwithstanding
the  existence  of any dispute  between  Borrower and Lender with respect to the
existence of the default or  performance  of the  Guaranteed  Obligations or any
counterclaim,  set-off or other claim which  Borrower may allege  against Lender
with respect thereto. Moreover,  Guarantor agrees that its obligations shall not
be affected by any circumstances which constitute a legal or equitable discharge
of a guarantor or surety.

         6. Guarantor  agrees that Lender may enforce this Guaranty  without the
necessity of resorting to or exhausting  any security or collateral  and without
the necessity of enforcing any other guaranty or proceeding  against Borrower or
any other guarantor,  including  without  limitation,  any other Guarantor named
herein.  Guarantor  hereby waives the right to require Lender to proceed against
Borrower,  to proceed against any other guarantor,  including without limitation
any other Guarantor named herein,  to foreclose any lien on any real or personal
property,  to exercise any right or remedy under the Loan  Documents,  to pursue
any other remedy or to enforce any other right.

         7. (a) Guarantor  further  agrees that nothing  contained  herein shall
prevent Lender from suing on the Note or from exercising any rights available to
it thereunder or under any of the Loan Documents and that the exercise of any of
the aforesaid rights shall not constitute a legal or equitable  discharge of any
Guarantor.  Guarantor  hereby fully and completely  waives and  relinquishes any
right of  subrogation  against  Borrower  and  that  Guarantor  understands  and
acknowledges   that  Guarantor  may  therefore  incur  a  partially  or  totally
non-reimbursable liability hereunder; nevertheless,  Guarantor hereby authorizes
and  empowers  Lender  to  exercise,  in its sole  discretion,  any  rights  and
remedies,  or any  combination  thereof,  which may then be available to Lender,
since it is the intent and purpose of Guarantor that the  obligations  hereunder
shall  be   absolute,   independent   and   unconditional   under  any  and  all
circumstances.   For  example,  but  without  limiting  the  generality  of  the
foregoing,  under current California law (Section 580d of the California Code of
Civil  Procedure  ("CCP")  as  interpreted  in Union  Bank v.  Gradsky,  265 ---
Cal.App.2d  40  (1968)),  Guarantor  may be  entitled  to  assert a  defense  to
liability under this Guaranty if Lender  forecloses  nonjudicially  against real
property  security for the Loan.  By executing  this  Guaranty,  Guarantor:  (1)
waives and  relinquishes  that defense;  (2) agrees that it will not assert that

                                       3
<PAGE>

defense in any action or  proceeding  which  Lender may commence to enforce this
Guaranty;  and (3) acknowledges and agrees that Lender is relying on this waiver
in making the Loan, and that this waiver is a material part of the consideration
which Lender is receiving for making the Loan.

                  (b)  Without   limiting  the   generality  of  the  foregoing,
Guarantor  waives all rights and defenses arising out of an election of remedies
by  Lender,  even  though  that  election  of  remedies,  such as a  nonjudicial
foreclosure with respect to security for a Guaranteed Obligation,  has destroyed
the Guarantor's rights of subrogation and reimbursement  against the Borrower by
the operation of Section 580d of the Code of Civil Procedure or otherwise.

                  (c)  Without   limiting  the   generality  of  the  foregoing,
Guarantor  hereby  expressly  waives any and all  benefits  and  defenses  under
California  Civil Code ("CC") Sections 2809,  2810, 2819, 2845, 2847, 2848, 2849
and 2850  including,  without  limitation,  the right to  require  Lender to (i)
proceed against Borrower or any other guarantor or pledgor, (ii) proceed against
or exhaust any security or collateral Lender may hold, or (iii) pursue any other
right or remedy for the benefit of Guarantor.  Guarantor  also hereby  expressly
waives any and all benefits and defenses  under (x) CCP Section 580a which would
otherwise limit  Guarantor's  liability after a nonjudicial  foreclosure sale to
the difference  between the  obligations  guaranteed  herein and the fair market
value of the property or interests sold at such  nonjudicial  foreclosure  sale,
(y) CCP Sections 580b and 580d,  which would  otherwise  limit Lender's right to
recover a deficiency  judgment with respect to purchase  money  obligations  and
after a  nonjudicial  foreclosure  sale,  respectively,  and (z) CCP Section 726
which, among other things,  would otherwise require Lender to exhaust all of its
security  before a personal  judgment may be obtained for a deficiency and would
limit Guarantor's  liability after a judicial foreclosure sale to the difference
between  the  obligations  guaranteed  herein and the fair  market  value of the
property or interests sold at such judicial  foreclosure  sale.  Notwithstanding
any  foreclosure  of the lien of any deed of trust or  security  agreement  with
respect to any or all of any real or personal property secured thereby,  whether
by the  exercise  of the  power of sale  contained  therein,  by an  action  for
judicial  foreclosure or by an acceptance of a deed in lieu of foreclosure,  and
notwithstanding  any  enforcement of any other  guaranty  executed in accordance
with the Loan, Guarantor shall remain bound under this Guaranty.

                  (d)   Guarantor   agrees  that  it  shall  have  no  right  of
subrogation,  reimbursement  or  contribution  against  Borrower  or against any
collateral  or  security  provided  for in the Loan  Documents  for  payment  or
performance of any right of subrogation,  reimbursement or contribution  against
Borrower now or in the future in  connection  with the  Guaranteed  Obligations.
Guarantor hereby forever waives and  relinquishes any and all such  subrogation,
reimbursement,   and  contribution   rights,   whether  or  not  the  Guaranteed
Obligations have been fully satisfied,  all obligations owed to Lender under the
Loan Documents have been fully performed and Lender has released, transferred or
disposed of all of its right, title and interest in such collateral or security.
Guarantor  further  agrees  that to the  extent  the  waiver  of its  rights  of
subrogation, reimbursement and/or contribution as set forth herein is found by a
court of  competent  jurisdiction  to be void or voidable  for any  reason,  any

                                       4
<PAGE>

rights of  subrogation,  reimbursement  and/or  contribution  Guarantor may have
against  Borrower or against  any  collateral  or  security  shall be junior and
subordinate  to any rights  Lender may have  against  Borrower and to all right,
title and interest  Lender may have in such  collateral or security.  Lender may
use,  sell or  dispose  of any item of  collateral  or  security  as it sees fit
without regard to any subrogation, reimbursement and/or contribution rights that
Guarantor may have pursuant to the immediately preceding sentence,  and upon any
disposition  or sale,  any such  rights  of  subrogation,  reimbursement  and/or
contribution that Guarantor may have shall terminate. Guarantor understands that
it may record a Request for Notice of Default  pursuant to California Civil Code
ss. 2924b and thereby  receive  notice of any proposed  foreclosure  of any real
property  collateral  then securing the  Borrower's  obligations  under the Loan
Documents.  With  respect to the  foreclosure  of any  security  interest in any
personal property  collateral then securing the Guaranteed  Obligations,  Lender
agrees to give Guarantor ten (10) days' prior written notice,  in the manner set
forth in Paragraph 9 hereof,  of any sale or  disposition  of any such  personal
property  collateral,  other than collateral  which is perishable,  threatens to
decline speedily in value, is of a type customarily sold on a recognized market,
or is cash, cash equivalents, certificates of deposit or the like.

                  (e)   Guarantor's   sole  right  with   respect  to  any  such
foreclosure of real or personal property collateral shall be to bid at such sale
in accordance with applicable law. Guarantor acknowledges and agrees that Lender
may also bid at any such sale and in the event such collateral is sold to Lender
in whole or partial  satisfaction of the obligations  owed to Lender,  Guarantor
shall  not  have  any  further   right  or  interest   with   respect   thereto.
Notwithstanding  anything to the contrary contained herein, no provision of this
Guaranty  shall be deemed  to limit,  decrease,  or in any way to  diminish  any
rights of set-off  Lender may have with respect to any cash,  cash  equivalents,
certificates of deposit,  notes or the like which may now or hereafter be put on
deposit with Lender by Borrower or by Guarantor.

                  (f) To the extent any  dispute  exists at any time  between or
among any  guarantors  as to  Guarantor's  right to  contribution  or otherwise,
Guarantor  agrees to  indemnify,  defend and hold Lender  harmless for, from and
against any loss, damage,  claim, demand, cost or any other liability (including
reasonable  attorneys'  fees and  costs)  Lender  may suffer as a result of such
dispute.

                  (g) If from time to time Borrower  shall have  liabilities  or
obligations  to Guarantor,  such  liabilities  and  obligations  and any and all
assignments as security, grants in trust, liens, mortgages,  security interests,
other encumbrances, and other interests and rights securing such liabilities and
obligations  shall  at all  times  be  fully  subordinate  with  respect  to (i)
assignment as security, grant in trust, lien, mortgage, security interest, other
encumbrance,  and other  interest  and  right  (if any),  (ii) time and right of
payment and  performance,  and (iii) rights against any collateral  therefor (if
any), to payment and  performance in full of the Guaranteed  Obligations and the
right of  Lender  to  realize  upon any or all  security  for such  obligations.
Guarantor  agrees that such liabilities and obligations of Borrower to Guarantor
shall not be  secured  by any  assignment  as  security,  grant in trust,  lien,
mortgage, security interest, other encumbrance or other interest or right in any

                                       5
<PAGE>

property,  interests  in  property,  or rights to property of Borrower  and that
Borrower shall not pay, and Guarantor shall not receive,  payments of any or all
liabilities  or  obligations  of Borrower to Guarantor  until after  payment and
performance of the  Guaranteed  Obligations  in full.  If,  notwithstanding  the
foregoing,  Guarantor receives any payment from Borrower,  such payment shall be
held in trust by Guarantor for the benefit of Lender,  shall be segregated  from
the other funds of Guarantor, and shall forthwith be paid by Guarantor to Lender
and applied to payment of the Guaranteed  Obligations,  whether or not then due.
To secure  the  Guaranteed  Obligations,  Guarantor  grants to Lender a lien and
security  interest in all  liabilities and obligations of Borrower to Guarantor,
in any  assignments as security,  grants in trust,  liens,  mortgages,  security
interests,   other  encumbrances,   other  interests  or  rights  securing  such
liabilities  and  obligations,  and in  all of  Guarantor's  right,  title,  and
interest in and to any payments,  property,  interests in property, or rights to
property  acquired  or  received by  Guarantor  from  Borrower in respect of any
liabilities or obligations of Borrower to Guarantor.

         8. (a) Guarantor warrants and represents that any financial  statements
of Guarantor heretofore delivered to Lender are true and correct in all material
respects.

                  (b)  Guarantor  covenants  and  agrees to  immediately  notify
Lender of any material adverse change in Guarantor's financial status.

         9. All  notices,  requests  and  demands  to be made  hereunder  to the
parties  hereto shall be in writing and shall be  delivered by hand,  or sent by
registered or certified mail, postage prepaid,  through the United States Postal
Service to the addresses  shown below or such other  addresses which the parties
may provide to one another in accordance  herewith.  Such notices,  requests and
demands,  if sent by mail,  shall be deemed given two (2) days after  deposit in
the United  States  mail,  and if  delivered  by hand shall be deemed given when
delivered.

                 To Guarantor:  National Lampoon Networks, Inc.,
                                10850 Wilshire Boulevard, Suite 1000
                                Los Angeles, California 90024
                                Attn:  President

                                National Lampoon Tours, Inc.,
                                10850 Wilshire Boulevard, Suite 1000
                                Los Angeles, California 90024
                                Attn:  President

                 To Lender:     N. Williams Family Investments, L.P.
                                c/o Lake City Bank
                                P.O. Box 11053
                                Fort Wayne, Indiana 46855
                                Attn:  Keith Davis, Trust Officer

         10. This  Guaranty  shall be binding  upon  Guarantor,  its  respective
successors  and  assigns  and  shall  inure  to  the  benefit  of and  shall  be
enforceable by Lender,  its successors,  endorsees and assigns.  As used herein,

                                       6
<PAGE>

the singular  shall  include the plural,  and the  masculine  shall  include the
feminine and neuter and vice versa, if the context so requires.

         11. If any or all of the Guaranteed  Obligations are not paid when due,
Guarantor  agrees to pay all costs of enforcement and collection and preparation
therefore (including, without limitation, reasonable attorneys' fees) whether or
not any action or proceeding is brought (including, without limitation, all such
costs incurred in connection with any bankruptcy,  receivership,  or other court
proceedings (whether at the trial or appellate level)).

         12. THIS GUARANTY SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE LAWS OF THE STATE OF  CALIFORNIA,  WITHOUT GIVING EFFECT TO CONFLICT OF LAWS
PRINCIPLES.

         13. This Guaranty is solely for the benefit of Lender,  its successors,
endorsees  and assigns,  and is not intended to nor shall it be deemed to be for
the benefit of any third party, including Borrower.

         14.  If  any   provision  of  this  Guaranty  is   unenforceable,   the
enforceability  of the other  provisions  shall not be  affected  and they shall
remain in full force and effect.

         15.  This  Guaranty  may be  executed  in  counterparts,  all of  which
executed counterparts shall together constitute a single document.

         16.  GUARANTOR,   AND,  BY  ACCEPTING  THIS  GUARANTY,   LENDER  HEREBY
VOLUNTARILY,  KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE
A JURY PARTICIPATE IN RESOLVING ANY DISPUTE  (WHETHER BASED UPON CONTRACT,  TORT
OR OTHERWISE)  BETWEEN OR AMONG THE  UNDERSIGNED AND LENDER ARISING OUT OF OR IN
ANY WAY RELATED TO THIS GUARANTY OR ANY OTHER RELATED  DOCUMENT.  THIS PROVISION
IS A MATERIAL  INDUCEMENT TO LENDER TO PROVIDE THE FINANCING DESCRIBED HEREIN OR
IN THE OTHER LOAN DOCUMENTS.

                         [SIGNATURES ON FOLLOWING PAGE]

                                       7
<PAGE>

         IN WITNESS WHEREOF,  Guarantor has executed this Guaranty as of the day
and year first above written.

                                         NATIONAL LAMPOON NETWORKS, INC., A
                                         Delaware corporation

                                         By:
                                             -----------------------------------
                                         Name:
                                               ---------------------------------
                                         Title:
                                                --------------------------------

                                         NATIONAL LAMPOON TOURS, INC., A
                                         California corporation

                                         By:
                                             -----------------------------------
                                         Name:
                                               ---------------------------------
                                         Title:
                                                --------------------------------

                                       8

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