Document:

THIS
      WARRANT AND THE SECURITIES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER
      THE
      SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY
      NOT
      BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE
      OF AN
      EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND ANY APPLICABLE STATE
      SECURITIES LAWS OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER
      SUCH
      ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

     

    WARRANT
      TO PURCHASE COMMON STOCK

     

    
      	
              Number
                of Shares:

               

            	
              264,700
                shares
                (or
                529,400 shares after July 31, 2006 if the Company does not voluntarily
                pre-pay the 16% Debenture in full on or before July 31, 2006)

               

            
	
              Warrant
                Price:

               

            	
              $3.00
                per share

               

            
	
              Issuance
                Date:

               

            	
              April
                18, 2006

               

            
	
              Expiration
                Date:

               

            	
              April
                18, 2011

               

            

    

     

    
      THIS
        WARRANT CERTIFIES THAT
        for value
        received, Pentagon Bernini Fund, Ltd. or its registered assigns (hereinafter
        called the “Holder”)
        is
        entitled to purchase from Interactive Television Networks, Inc. (hereinafter
        called the “Company”),
        the
        above referenced number of fully paid and nonassessable shares (the
“Shares”)
        of
        common stock (the “Common
        Stock”),
        of
        Company, at the Warrant Price per Share referenced above; the warrant price
        and
        the number of shares purchasable upon exercise of this Warrant referenced
        above
        being subject to adjustment from time to time as described herein. This Warrant
        is issued in connection with that certain 16% Secured Convertible Debenture
        dated as of April 18, 2006 (the “16%
        Debenture”),
        by and
        between the Company and Holder. The exercise of this Warrant shall be subject
        to
        the provisions, limitations and restrictions contained herein.

       

      1.  Term
        and Exercise.

       

      1.1  Term.
        This
        Warrant is exercisable in whole or in part (but not as to any fractional
        share
        of Common Stock), at any time and from time to time after the date hereof
        prior
        to 6:00 p.m. on the Expiration Date set forth above. 

       

      1.2  Warrant
        Price.
        The
        Warrant shall be exercisable at the Warrant Price described above. 

       

      1.3  Maximum
        Number of Shares.
        The
        maximum number of Shares of Common Stock exercisable pursuant to this Warrant
        is
        264,700 Shares; provided, however, that if the Company does not voluntarily
        pre-pay the entire outstanding balance of the 16% Debenture on or before
        July
        31, 2006, then after such date the maximum number of Shares of Common Stock
        exercisable pursuant to this Warrant is 529,400 Shares. However, notwithstanding
        anything herein to the contrary, in no event shall the Holder be permitted
        to
        exercise this Warrant for a number of Shares greater than the number that
        would
        cause the aggregate beneficial
        ownership of the Company’s Common Stock (calculated pursuant to Rule 13d-3 of
        the Securities Exchange Act of 1934, as amended) of the Holder and its
        affiliates to equal 9.99% of
        the
        Company’s Common Stock then outstanding. 

       

      1.4  Procedure
        for Exercise of Warrant.
        Holder
        may exercise this Warrant by delivering the following to the principal office
        of
        the Company in accordance with Section 5.1 hereof: (i) a duly executed
        Notice of Exercise in substantially the form attached as Schedule A,
        (ii) payment of the Warrant Price then in effect for each of the Shares
        being purchased, as designated in the Notice of Exercise, and (iii) this
        Warrant. Payment of the Warrant Price may be in cash, certified or official
        bank
        check payable to the order of the Company, or wire transfer of funds to the
        Company’s account (or any combination of any of the foregoing) in the amount of
        the Warrant Price for each share being purchased. 

       

      1.5  Delivery
        of Certificate and New Warrant.
        In the
        event of any exercise of the rights represented by this Warrant, a certificate
        or certificates for the shares of Common Stock so purchased, registered in
        the
        name of the Holder or such other name or names as may be designated by the
        Holder, together with any other securities or other property which the Holder
        is
        entitled to receive upon exercise of this Warrant, shall be delivered to
        the
        Holder hereof, at the Company’s expense, within a reasonable time, not exceeding
        fifteen (15) calendar days, after the rights represented by this Warrant
        shall
        have been so exercised; and, unless this Warrant has expired, a new Warrant
        representing the number of Shares (except a remaining fractional share),
        if any,
        with respect to which this Warrant shall not then have been exercised shall
        also
        be issued to the Holder hereof within such time. The person in whose name
        any
        certificate for shares of Common Stock is issued upon exercise of this Warrant
        shall for all purposes be deemed to have become the holder of record of such
        shares on the date on which the Warrant was surrendered and payment of the
        Warrant Price was received by the Company, irrespective of the date of delivery
        of such certificate, except that, if the date of such surrender and payment
        is
        on a date when the stock transfer books of the Company are closed, such person
        shall be deemed to have become the holder of such Shares at the close of
        business on the next succeeding date on which the stock transfer books are
        open.

       

      1.6  Restrictive
        Legend.
        Each
        certificate for Shares shall bear a restrictive legend in substantially the
        form
        as follows, together with any additional legend required by (i) any
        applicable state securities laws and (ii) any securities exchange upon
        which such Shares may, at the time of such exercise, be listed:

       

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

       

      Any
        certificate issued at any time in exchange or substitution for any certificate
        bearing such legend shall also bear such legend unless, in the opinion of
        counsel for the Holder thereof (which counsel shall be reasonably satisfactory
        to the Company), the securities represented thereby are not, at such time,
        required by law to bear such legend.

       

      1.7  Fractional
        Shares.
        No
        fractional Shares shall be issuable upon exercise or conversion of the Warrant.
        In the event of a fractional interest, the number of Shares to be issued
        shall
        be rounded down to the nearest whole Share. 

      
 

      
        
          
          

        

        
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      2.  Representations,
        Warranties and Covenants.

       

      2.1  Representations
        and Warranties.

       

      (a)  The
        Company is a corporation duly organized, validly existing and in good standing
        under the laws of its state of incorporation and has all necessary power
        and
        authority to perform its obligations under this Warrant;

       

      (b)  The
        execution, delivery and performance of this Warrant has been duly authorized
        by
        all necessary actions on the part of the Company and constitutes the legal,
        valid and binding obligation of the Company, enforceable against the Company
        in
        accordance with its terms; and

       

      (c)  This
        Warrant does not violate and is not in conflict with any of the provisions
        of
        the Company’s Articles of Incorporation or Certificate of Determination, Bylaws
        and any resolutions of the Company’s Board of Directors or stockholders, or any
        agreement of the Company, and no event has occurred and no condition or
        circumstance exists that might (with or without notice or lapse of time)
        constitute or result directly or indirectly in such a violation or
        conflict.

       

      2.2  Issuance
        of Shares.
        The
        Company covenants and agrees that all shares of Common Stock that may be
        issued
        upon the exercise of the rights represented by this Warrant will, upon issuance,
        be validly issued, fully paid and nonassessable, and free from all taxes,
        liens
        and charges with respect to the issue thereof. The Company further covenants
        and
        agrees that it will pay when due and payable any and all federal and state
        taxes
        which may be payable in respect of the issue of this Warrant or any Common
        Stock
        or certificates therefor issuable upon the exercise of this Warrant. The
        Company
        further covenants and agrees that the Company will at all times have authorized
        and reserved, free from preemptive rights, a sufficient number of shares
        of
        Common Stock to provide for the exercise in full of the rights represented
        by
        this Warrant. If at any time the number of authorized but unissued shares
        of
        Common Stock of the Company shall not be sufficient to effect the exercise
        of
        the Warrant in full, subject to the limitations set forth in Section 1.3
        hereto,
        then the Company will take all such corporate action as may, in the opinion
        of
        counsel to the Company, be necessary or advisable to increase the number
        of its
        authorized shares of Common Stock as shall be sufficient to permit the exercise
        of the Warrant in full, subject to the limitations set forth in Section 1.3
        hereto, including without limitation, using its best efforts to obtain any
        necessary stockholder approval of such increase. The Company further covenants
        and agrees that if any shares of capital stock to be reserved for the purpose
        of
        the issuance of shares upon the exercise of this Warrant require registration
        with or approval of any governmental authority under any federal or state
        law
        before such shares may be validly issued or delivered upon exercise, then
        the
        Company will in good faith and as expeditiously as possible endeavor to secure
        such registration or approval, as the case may be. If and so long as the
        Common
        Stock issuable upon the exercise of this Warrant is listed on any national
        securities exchange, the Nasdaq Stock Market, or the OTC Bulletin Board,
        the
        Company will, if permitted by the rules of such exchange or market, list
        and
        keep listed on such exchange or market, upon official notice of issuance,
        all
        shares of such Common Stock issuable upon exercise of this Warrant.

       

      3.  Other
        Adjustments.

       

      3.1  Subdivision
        or Combination of Shares.
        In case
        the Company shall at any time subdivide its outstanding Common Stock into
        a
        greater number of shares, the Warrant Price in effect immediately prior to
        such
        subdivision shall be proportionately reduced, and the number of Shares subject
        to this Warrant shall be proportionately increased, and conversely, in case
        the
        outstanding Common Stock of the Company shall be combined into a smaller
        number
        of shares, the Warrant Price in effect immediately prior to such combination
        shall be proportionately increased, and the number of Shares subject to this
        Warrant shall be proportionately decreased.

       

      3.2  Dividends
        in Common Stock, Other Stock or Property.
        If at
        any time or from time to time the holders of Common Stock (or any shares
        of
        stock or other securities at the time receivable upon the exercise of this
        Warrant) shall have received or become entitled to receive, without payment
        therefor:

       

      (a)  Common
        Stock, Options or any shares or other securities which are at any time directly
        or indirectly convertible into or exchangeable for Common Stock, or any rights
        or options to subscribe for, purchase or otherwise acquire any of the foregoing
        by way of dividend or other distribution;

       

      (b)  any
        cash
        paid or payable otherwise than as a regular cash dividend; or

       

      (c)  Common
        Stock or additional shares or other securities or property (including cash)
        by
        way of spin-off, split-up, reclassification, combination of shares or similar
        corporate rearrangement (other than Common Stock issued as a stock split
        or
        adjustments in respect of which shall be covered by the terms of Section
        3.1
        above) and additional shares, other securities or property issued in connection
        with a Change (as defined below) (which shall be covered by the terms of
        Section
        3.4 below), then and in each such case, the Holder hereof shall, upon the
        exercise of this Warrant, be entitled to receive, in addition to the number
        of
        shares of Common Stock receivable thereupon, and without payment of any
        additional consideration therefor, the amount of stock and other securities
        and
        property (including cash in the cases referred to in clause (b) above and
        this
        clause (c)) which such Holder would hold on the date of such exercise had
        such
        Holder been the holder of record of such Common Stock as of the date on which
        holders of Common Stock received or became entitled to receive such shares
        or
        all other additional stock and other securities and property.

       

      3.3  Reorganization,
        Reclassification, Consolidation, Merger or Sale.
        If
        any
        recapitalization, reclassification or reorganization of the share capital
        of the
        Company, or any consolidation or merger of the Company with another corporation,
        or the sale of all or substantially all of its shares and/or assets or other
        transaction (including, without limitation, a sale of substantially all of
        its
        assets followed by a liquidation) shall be effected in such a way that holders
        of Common Stock shall be entitled to receive shares, securities or other
        assets
        or property (a “Change”),
        then,
        as a condition of such Change, lawful and adequate provisions shall be made
        by
        the Company whereby the Holder hereof shall thereafter have the right to
        purchase and receive (in lieu of the Common Stock of the Company immediately
        theretofore purchasable and receivable upon the exercise of the rights
        represented hereby) such shares, securities or other assets or property as
        may
        be issued or payable with respect to or in exchange for the number of
        outstanding Common Stock which such Holder would have been entitled to receive
        had such Holder exercised this Warrant immediately prior to the consummation
        of
        such Change. The Company or its successor shall promptly issue to Holder
        a new
        Warrant for such new securities or other property. The new Warrant shall
        provide
        for adjustments which shall be as nearly equivalent as may be practicable
        to
        give effect to the adjustments provided for in this Section 3 including,
        without
        limitation, adjustments to the Warrant Price and to the number of securities
        or
        property issuable upon exercise of the new Warrant. The provisions of this
        Section 3.3 shall similarly apply to successive Changes. 

       

      
        
          
          

        

        
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      4.  Ownership
        and Transfer.

       

      4.1  Ownership
        of This Warrant.
        The
        Company may deem and treat the person in whose name this Warrant is registered
        as the holder and owner hereof (notwithstanding any notations of ownership
        or
        writing hereon made by anyone other than the Company) for all purposes and
        shall
        not be affected by any notice to the contrary until presentation of this
        Warrant
        for registration of transfer as provided in this Section 4.

       

      4.2  Transfer
        and Replacement.
        This
        Warrant and all rights hereunder are transferable in whole or in part upon
        the
        books of the Company by the Holder hereof in person or by duly authorized
        attorney, and a new Warrant or Warrants, of the same tenor as this Warrant
        but
        registered in the name of the transferee or transferees (and in the name
        of the
        Holder, if a partial transfer is effected) shall be made and delivered by
        the
        Company upon surrender of this Warrant duly endorsed, at the office of the
        Company in accordance with Section 5.1 hereof. Upon receipt by the Company
        of
        evidence reasonably satisfactory to it of the loss, theft or destruction,
        and,
        in such case, of indemnity or security reasonably satisfactory to it, and
        upon
        surrender of this Warrant if mutilated, the Company will make and deliver
        a new
        Warrant of like tenor, in lieu of this Warrant; provided that if the Holder
        hereof is an instrumentality of a state or local government or an institutional
        holder or a nominee for such an instrumentality or institutional holder an
        irrevocable agreement of indemnity by such Holder shall be sufficient for
        all
        purposes of this Warrant, and no evidence of loss or theft or destruction
        shall
        be necessary. This Warrant shall be promptly cancelled by the Company upon
        the
        surrender hereof in connection with any transfer or replacement. Except as
        otherwise provided above, in the case of the loss, theft or destruction of
        a
        Warrant, the Company shall pay all expenses, taxes and other charges payable
        in
        connection with any transfer or replacement of this Warrant, other than income
        taxes and stock transfer taxes (if any) payable in connection with a transfer
        of
        this Warrant, which shall be payable by the Holder. Holder will not transfer
        this Warrant and the rights hereunder except in compliance with federal and
        state securities laws and except after providing evidence of such compliance
        reasonably satisfactory to the Company.

       

      5.  Miscellaneous
        Provisions.

       

      5.1  Notices.
        Any
        notice or other document required or permitted to be given or delivered to
        the
        Holder shall be delivered or forwarded to the Holder at Pentagon Bernini
        Fund,
        Ltd. c/o Pentagon Capital Management Plc., 88 Baker Street, London, England
        W1U
        6TQ, Attention: Lewis Chester, CEO (Facsimile No. +44 (0)20 7299-9988), or
        to
        such other address or number as shall have been furnished to the Company
        in
        writing by the Holder, with a copy to Sheppard Mullin Richter & Hampton LLP,
        333 South Hope Street, 48th
        Floor,
        Los Angeles, California 90071-1448 Attention: David C. Ulich, Esq. (Facsimile
        No. 213/ 620-1398). Any notice or other document required or permitted to
        be
        given or delivered to the Company shall be delivered or forwarded to the
        Company
        at 2010 Main Street, Suite 500, Irvine, CA 92614 Attention: Murray Williams,
        CFO
        (Facsimile No. (888) 886-1305), or to such other address or number as shall
        have been furnished to Holder in writing by the Company. 

       

      5.2  All
        notices, requests and approvals required by this Warrant shall be in writing
        and
        shall be conclusively deemed to be given (i) when hand-delivered to the other
        party, (ii) when received if sent by facsimile at the address and number
        set
        forth above; provided that notices given by facsimile shall not be effective,
        unless either (a) a duplicate copy of such facsimile notice is promptly given
        by
        depositing the same in the mail, postage prepaid and addressed to the party
        as
        set forth below or (b) the receiving party delivers a written confirmation
        of
        receipt for such notice by any other method permitted under this paragraph;
        and
        further provided that any notice given by facsimile received after 5:00 p.m.
        (recipient’s time) or on a non-business day shall be deemed received on the next
        business day; (iii) five (5) business days after deposit in the United States
        mail, certified, return receipt requested, postage prepaid, and addressed
        to the
        party as set forth below; or (iv) the next business day after deposit with
        an
        international overnight delivery service, postage prepaid, addressed to the
        party as set forth below with next business day delivery guaranteed; provided
        that the sending party receives confirmation of delivery from the delivery
        service provider.

       

      5.3  No
        Rights as Shareholder; Limitation of Liability.
        This
        Warrant shall not entitle the Holder to any of the rights of a shareholder
        of
        the Company except upon exercise in accordance with the terms hereof. No
        provision hereof, in the absence of affirmative action by the Holder to purchase
        shares of Common Stock, and no mere enumeration herein of the rights or
        privileges of the Holder, shall give rise to any liability of the Holder
        for the
        Warrant Price hereunder or as a shareholder of the Company, whether such
        liability is asserted by the Company or by creditors of the
        Company.

       

      5.4  Governing
        Law.
        This
        Warrant shall be governed by and construed in accordance with the laws of
        the
        State of New York, County of New York as applied to agreements made
        and to be performed entirely within the State of New York, without giving
        effect to the conflict of law principles thereof.

       

      5.5  Binding
        Effect on Successors.
        This
        Warrant shall be binding upon any corporation succeeding the Company by merger,
        consolidation or acquisition of all or substantially all of the Company’s assets
        and/or securities. All of the obligations of the Company relating to the
        Shares
        issuable upon the exercise of this Warrant shall survive the exercise and
        termination of this Warrant. All of the covenants and agreements of the Company
        shall inure to the benefit of the successors and assigns of the
        Holder.

       

      5.6  Waiver,
        Amendments and Headings.
        This
        Warrant and any provision hereof may be changed, waived, discharged or
        terminated only by an instrument in writing signed by both parties (either
        generally or in a particular instance and either retroactively or
        prospectively). The headings in this Warrant are for purposes of reference
        only
        and shall not affect the meaning or construction of any of the provisions
        hereof. 

       

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

       

      
        
          
          

        

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

       

      
        
          
          

        

        
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      IN
        WITNESS WHEREOF,
        the
        Company has caused this Warrant to be signed by its duly authorized officer
        this
        18th
        day of
        April, 2006.

       

      

      
        	
                COMPANY:

                 

              	
                INTERACTIVE
                  TELEVISION NETWORKS, INC. 

                 

                 

                 

                By
                  _____________________________________________

                 

                Print
                  Name: ______________________________________

                 

                Title:
                  ___________________________________________

                 

              

      

      

       

      
        
          
          

        

        
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      SCHEDULE
        A

       

      FORM
        OF NOTICE OF EXERCISE

       

      [To
        be signed only upon exercise of the Warrant]

       

      TO
        BE EXECUTED BY THE REGISTERED HOLDER

      TO
        EXERCISE THE WITHIN WARRANT

       

      The
        undersigned hereby elects to purchase _______ shares of Common Stock (the
        “Shares”) of Interactive Television Networks, Inc. under the Warrant to Purchase
        Common Stock dated April 18, 2006, which the undersigned is entitled to purchase
        pursuant to the terms of such Warrant. The undersigned has delivered $_________,
        the aggregate Warrant Price for _____ Shares purchased herewith, in full
        in cash
        or by certified or official bank check or wire transfer. 

       

      Please
        issue a certificate or certificates representing such shares of Common Stock
        in
        the name of the undersigned or in such other name as is specified below and
        in
        the denominations as is set forth below:

       

       

      _______________________________________________________

      [Type
        Name
        of Holder as it should appear on the stock certificate]

       

      _______________________________________________________

      [Requested
        Denominations - if no denomination is specified, a single certificate will
        be
        issued]

       

      The
        initial address of such Holder to be entered on the books of Company shall
        be:

       

      _______________________________________________________

      _______________________________________________________

      _______________________________________________________

       

       

       

      The
        undersigned hereby represents and warrants that the undersigned is acquiring
        such shares for his own account for investment purposes only, and not for
        resale
        or with a view to distribution of such shares or any part thereof.

       

      By:
________________________________________

       

      Print
        Name: ______________________________________________

       

      Title:
        ___________________________________________________

       

      Dated:
        __________________________________________________

      

 

      
        
          
          

        

        
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      FORM
        OF ASSIGNMENT
(ENTIRE)

       

      [To
        be signed only upon transfer of entire Warrant]

       

      TO
        BE EXECUTED BY THE REGISTERED HOLDER

      TO
        TRANSFER THE WITHIN WARRANT

       

      FOR
        VALUE RECEIVED
        ___________________________ hereby sells, assigns and transfers unto
        _______________________________ all rights of the undersigned under and pursuant
        to the within Warrant, and the undersigned does hereby irrevocably constitute
        and appoint _____________________ Attorney to transfer the said Warrant on
        the
        books of ________ _________, with full power of substitution.

       

      

       

       

      
        _______________________________________
[Type
        Name of Holder]

       

      

       

      By:
        ____________________________________

       

      Title:
        __________________________________

       

      

       

      Dated:
        ___________________________________

       

      

       

      NOTICE

       

      The
        signature to the foregoing Assignment must correspond exactly to the name
        as
        written upon the face of the within Warrant, without alteration or enlargement
        or any change whatsoever.

       

      

       

      
        
          
          

        

        
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      FORM
        OF ASSIGNMENT

      (PARTIAL)

       

      [To
        be signed only upon partial transfer of Warrant]

       

      TO
        BE EXECUTED BY THE REGISTERED HOLDER

      TO
        TRANSFER THE WITHIN WARRANT

       

      FOR
        VALUE
        RECEIVED ___________________________ hereby sells, assigns and transfers
        unto
        ____________________________ (i) the rights of the undersigned to purchase
        ____________________ shares of Common Stock under and pursuant to the within
        Warrant, and (ii) on a non-exclusive basis, all other rights of the
        undersigned under and pursuant to the within Warrant, it being understood
        that
        the undersigned shall retain, severally (and not jointly) with the transferee(s)
        named herein, all rights assigned on such non-exclusive basis. The undersigned
        does hereby irrevocably constitute and appoint __________________________
        Attorney to transfer the said Warrant on the books of Interactive Television
        Networks, Inc., with full power of substitution.

       

      

      _____________________________________________

      [Type
        Name
        of Holder]

       

      By:
        __________________________________________

       

      Title:
        ________________________________________

       

      

      Dated: 
        _______________________________________

       

      

       

      NOTICE

       

      The
        signature to the foregoing Assignment must correspond exactly to the name
        as
        written upon the face of the within Warrant, without alteration or enlargement
        or any change whatsoever.

       

    

    
      
        
        

      

      
        -1-Exhibit
      10.13
Dated: April 18, 2006

     

    NEITHER
      THIS DEBENTURE NOR THE SECURITIES INTO WHICH THIS DEBENTURE IS CONVERTIBLE
      HAVE
      BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY,
      MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
      OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, AS
      EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
      SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

     

    
      
        
          	No.1	
                   $1,000,000.00

                

        

      

       

    

    INTERACTIVE
      TELEVISION NETWORKS, INC.

     

    16%
      SECURED CONVERTIBLE DEBENTURE

    DUE
      April
      17, 2009

     

    THIS
      DEBENTURE is issued by INTERACTIVE TELEVISION NETWORKS, INC., a Nevada
      Corporation (the "Company").
      This
      Debenture is designated as the Company's 16% Secured Convertible Debenture,
      due
      on the date set forth above, in the aggregate principal amount of One Million
      Dollars ($1,000,000.00) (the "Debenture").

     

    FOR
      VALUE
      RECEIVED, the Company promises to pay to PENTAGON BERNINI FUND, LTD., an
      international business company organized under the laws of the British Virgin
      Islands, or its registered assigns (the "Holder"),
      the
      principal sum of $1,000,000.00, on or before the due date, or such earlier
      date
      or dates as the Debenture is required to be repaid as provided hereunder (the
      "Maturity
      Date")
      and to
      pay interest to the Holder on the aggregate unconverted and then outstanding
      principal amount of this Debenture at the rate of 16% per annum.

     

    Interest
      on this Debenture shall accrue daily commencing on the Original Issue Date
      (as
      defined in Section 5)
      until
      payment in full of the unconverted outstanding principal sum, together with
      all
      accrued and unpaid interest and other amounts, which may become due hereunder,
      has been made. Interest shall be payable quarterly in arrears on the last day
      of
      each January, April, July, and October, commencing on July 31, 2006 (except
      that, if any such day is not a Business Day, then such payment shall be due
      on
      the next succeeding Business Day) (each such date, an "Interest
      Payment Date").
      Interest shall be payable in cash, except that the Company may, in its sole
      discretion, pay up to 50% of the amount of interest payable on any Interest
      Payment Date by issuing additional debentures in accordance with the same terms
      as this Debenture (the “Interest
      Debentures”).
      Interest hereunder will be paid ratably to the Persons (as defined in
Section 5)
      in
      whose name this Debenture is registered on the records of the Company regarding
      registration and transfers of Debentures (the "Debenture
      Register")
      on the
      applicable Record Date (as defined in Section 5).
      Interest shall be calculated based on a 365-day year.

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    On
      the
      first day of each month, commencing on November 1, 2007, and continuing
      monthly thereafter in accordance with the amortization schedule set forth on
      Exhibit A
      hereto
      (each, a "Monthly
      Redemption Date"),
      the
      Company shall make a principal payment on the Debenture in the amount of $55,555
      (except that the payment due on April 1, 2009, shall be in an amount equal
      to the then-remaining outstanding principal balance of the Debenture) (each
      a
      "Principal
      Payment").
      Principal hereunder will be paid ratably to the Persons in whose name this
      Debenture is registered on the Debenture Register on the applicable Record
      Date.
      The principal amount of this Debenture that is subject to redemption and
      repayment on the Maturity Date shall be reduced by the amount of principal
      that
      is, from time to time, converted into Common Stock by the Holder pursuant to
      Section 4.
      In the
      event that the outstanding principal balance of this Debenture is partially
      reduced as a result of a conversion of a portion of this Debenture, such
      reduction of the outstanding principal balance of this Debenture shall be
      applied to Principal Payments in reverse order of maturity and shall
      reduce/eliminate the Principal Payments payable on the latest Monthly Redemption
      Dates first. 

     

    The
      Company shall have the right to prepay this Debenture, in whole or in part,
      at
      any time and from time to time before the Maturity Date upon not less than
      fifteen (15) days prior written notice to the Holder specifying the
      prepayment date. Concurrently with each such prepayment, the Company shall
      pay
      all accrued and unpaid interest on the principal amount of the Debenture that
      is
      prepaid. No Prepayment Fee shall be payable with respect to prepayments of
      principal on this Debenture.

     

    In
      the
      event that the Company issues any additional debt or equity securities (other
      than Interest Debentures or Common Stock issued upon a conversion pursuant
      to
Section 4
      hereof
      or upon exercise of any of the Warrants or upon conversion or exercise of any
      other debentures or warrants previously issued to the Holder), the Holder shall
      have the right to require that up to fifty percent (50%) of the net proceeds
      of
      such debt or equity securities be applied to repay all or a portion of the
      principal amount outstanding on the 17% Secured Convertible Debenture, dated
      October 20, 2005, and the Holder shall have the right to require that up to
      one hundred percent (100%) of the remaining net proceeds of such debt or equity
      securities be applied to repay this Debenture. 

     

    The
      performance of the Company's obligations under this Debenture is secured by
      (i) that certain Security Agreement dated October 20, 2005 executed by the
      Company encumbering substantially all of the Company's personal property, and
      (ii) the pledge by Michael Martinez, David Koenig, Murray Williams and
      Charles Prast (collectively, the "Pledgors")
      of a
      total of 4,000,000 shares of common stock of the Company (collectively, the
      "Pledged
      Shares")
      pursuant to the terms of that certain Stock Pledge Agreement dated October
      20,
      2005 between the Pledgors and the Holder (the "Stock
      Pledge Agreement").

     

    This
      Debenture is subject to the following additional provisions:

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    Section
      1.  This
      Debenture is exchangeable for an equal aggregate principal amount of Debentures
      of different authorized denominations, as requested by the Holder surrendering
      the same. No service charge will be made for such registration of transfer
      or
      exchange.

     

    Section
      2.  This
      Debenture has been issued subject to certain investment representations of
      the
      original Holder set forth in the Purchase Agreement dated October 20, 2005
      and
      may be transferred or exchanged only in compliance with such Purchase Agreement.
      Prior to due presentment to the Company for transfer of this Debenture, the
      Company and any agent of the Company may treat the Person (as defined in
Section 5)
      in
      whose name this Debenture is duly registered on the Debenture Register as the
      owner hereof for the purpose of receiving payment as herein provided and for
      all
      other purposes, whether or not this Debenture is overdue, and neither the
      Company nor any such agent shall be affected by notice to the
      contrary.

     

    Section
      3.  Events
      of Default.

     

    (a)  An
      "Event
      of Default",
      wherever used herein, means any one of the following events (whatever the reason
      and whether it shall be voluntary or involuntary or effected by operation of
      law
      or pursuant to any judgment, decree or order of any court, or any order, rule
      or
      regulation of any administrative or governmental body):

     

    (i) 
      any
      default in the payment of the principal of, interest on, or damages in respect
      of the Debenture, free of any claim of subordination, as and when the same
      shall
      become due and payable (whether on a Conversion Date or the Maturity Date or
      by
      acceleration or otherwise) which is not cured within three (3) days after
      the date the payment became due and payable;

     

    (ii)
      the
      failure to include the Underlying Shares in the next Registration Statement
      that
      the Company files with the Commission, registering the resale of the Underlying
      Shares;

     

    (iii)
      the
      failure to observe or perform any other covenant, agreement or warranty
      contained in, or otherwise commit any breach of this Debenture and such failure
      or breach shall not have been remedied within ten (10) days after the date
      on which notice of such failure or breach shall have been given;

     

    (iv)
      the
      Company shall commence, or there shall be commenced against the Company and
      not
      dismissed within 60 days, a case under any applicable bankruptcy or insolvency
      laws as now or hereafter in effect or any successor thereto, or the Company
      commences any other proceeding under any reorganization, arrangement, adjustment
      of debt, relief of debtors, dissolution, insolvency or liquidation or similar
      law of any jurisdiction whether now or hereafter in effect relating to the
      Company, or there is commenced against the Company and not dismissed within
      60
      days, any such bankruptcy, insolvency or other proceeding; or the Company is
      adjudicated insolvent or bankrupt; or any order of relief or other order
      approving any such case or proceeding is entered; or the Company suffers any
      appointment of any custodian or the like for it or any substantial part of
      its
      property which continues undischarged or unstayed for a period of 60 days;
      or
      the Company makes a general assignment for the benefit of creditors; or the
      Company shall fail to pay, or shall state that it is unable to pay, or shall
      be
      unable to pay, its debts generally as they become due; or the Company shall
      call
      a meeting of its creditors with a view to arranging a composition, adjustment
      or
      restructuring of its debts; or the Company shall by any act or failure to act
      expressly indicate its consent to, approval of or acquiescence in any of the
      foregoing; or any corporate or other action is taken by the Company for the
      purpose of effecting any of the foregoing;

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    (v)
      the
      Common Stock shall cease to be quoted for trading or listed for trading on
      the
      National Association of Securities Dealers OTC Bulletin Board ("OTC")
      or the
      Nasdaq SmallCap Market, New York Stock Exchange, American Stock Exchange or
      the
      Nasdaq National Market (each, a "Subsequent
      Market")
      and
      shall not again be quoted or listed for trading thereon within five
      (5) Trading Days;

     

    (vi)
      the
      Company shall fail for any reason to deliver Common Stock certificates to a
      Holder prior to the fifth (5th)
      Trading
      Day after a Conversion Date pursuant to and in accordance with Section 4(b),
      or the
      Company shall provide notice to the Holder, including by way of public
      announcement, at any time, of its intention not to comply with requests for
      conversions of the Debenture in accordance with the terms hereof. If the
      Company's transfer agent is not open for business during a Trading Day, such
      Trading Day shall not be counted for purposes of determining the number of
      days
      for delivery of a Common Stock certificate;

     

    (vii)
      the
      Company shall fail for any reason to deliver the payment in cash pursuant to
      a
      Buy-In (as defined herein) within ten (10) Business Days after notice is
      deemed delivered hereunder;

     

    (viii)
      the
      Company shall fail for any reason to cause the number of authorized but unissued
      shares of its Common Stock to be increased to an amount sufficient to enable
      the
      Company to comply with the reserve requirement of Section 4(c)(v)
      within a
      period of sixty (60) days following its receipt of any Holder's notice
      under Section 4(c)(v)
      that
      such reserve is not being satisfied if, at the time of the notice, the number
      of
      authorized shares of the Company's Common Stock is insufficient for this
      purpose; or

     

    (ix)
      a
      breach
      by the Company of any of the covenants, representations or warranties set forth
      herein.

     

    (b)  If
      an
      Event of Default occurs, the Holder shall have the right to declare immediately
      due and payable all amounts owing under this Debenture. The Holder need not
      provide and the Company hereby waives any presentment, demand, protest or other
      notice of any kind, and the Holder may immediately and without expiration of
      any
      grace period enforce any and all of its rights and remedies hereunder and all
      other remedies available to it under applicable law. Such declaration may be
      rescinded and annulled by the Holder at any time prior to payment hereunder.
      No
      such rescission or annulment shall affect any subsequent Event of Default or
      impair any right consequent thereon. 

     

    (c)  If
      an
      Event of Default under Section 3(a)(i)
      occurs,
      then the Company shall pay, in addition to the amount of the required payment,
      a
      late charge equal to ten percent (10%) of the amount of the late payment as
      liquidated damages and not as a penalty. The Company acknowledges that the
      damage the Holder would suffer in the event of a late payment of any amount
      owing under this Debenture would be difficult or impossible to ascertain, and
      that the foregoing amount is a reasonable estimate of the damage the Holder
      would suffer in such event.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    (d)  If
      an
      Event of Default under Section 3(a)(ii)
      occurs,
      then
      (i) the Company shall pay liquidated damages to Holder equal to $1,000.00
      for each dayafter the filing of the next Registration statement (if the
      Underlying Shares are not included therein) until the Company files a
      Registration Statement in which the Underlying Shares are included; and
      (ii) the Conversion Price shall thereafter be reduced to $1.50 per share.
      Any amounts to be paid as liquidated damages shall be paid in cash monthly
      in
      arrears on or before the 30th
      day
      following the end of the month or partial month to which they relate. The
      Company acknowledges that the damage the Holder would suffer in the event of
      an
      Event of Default under Section 3(a)(ii) would
      be
      difficult or impossible to ascertain, and that the foregoing amount is a
      reasonable estimate of the damage the Holder would suffer in such
      event.

     

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

     

    Section
      4.  Conversion.

     

    (a)  (i)
      Conversion
      at Option of the Holder.

     

    (A)  This
      Debenture shall be convertible into shares of Common Stock at the option of
      the
      Holder, in whole or in part at any time and from time to time, after the
      Original Issue Date (subject to the limitations on conversion set forth in
      Section 4(a)(ii)
      hereof).
      The number of shares of Common Stock issuable upon a conversion hereunder equals
      the quotient obtained by dividing (x) the outstanding balance of this
      Debenture (principal plus unpaid interest) to be converted by (y) the
      Conversion Price (as defined in Section 4(c)(i)).

     

    (B)  The
      Holder shall effect conversions by simultaneously delivering to the Company
      a
      completed notice in the form attached hereto as Exhibit B
      (a
      "Conversion
      Notice")
      and a
      completed Conversion Schedule in the form of Schedule I
      attached
      to the Conversion Notice (as to each Conversion Notice, the "Conversion
      Schedule").
      The
      Conversion Schedule shall set forth the remaining principal amount of this
      Debenture and all accrued and unpaid interest thereon subsequent to the
      conversion at issue. The date on which a Conversion Notice is delivered to
      the
      Company is the "Conversion
      Date"
      relating to such Conversion Notice. Unless the Holder is converting the entire
      principal amount outstanding under this Debenture, the Holder is not required
      to
      physically surrender this Debenture to the Company in order to effect
      conversions. Subject to Section 4(b),
      each
      Conversion Notice, once given, shall be irrevocable. Conversions hereunder
      shall
      have the effect of reducing the outstanding principal amount of this Debenture
      plus all accrued and unpaid interest thereon by amount of the applicable
      conversion, which shall be evidenced by entries set forth in the Conversion
      Schedule. The Holder and the Company shall maintain records showing the
      principal amount converted and the date of such conversions. In the event of
      any
      dispute or discrepancy, the records of the Holder shall be controlling and
      determinative in the absence of manifest error.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    (ii)
      Certain
      Conversion Restrictions.
      (i) The Holder may not convert the Debenture, if and to the extent such
      issuance of conversion shares would result in the Holder, together with any
      affiliate thereof, beneficially owning (as determined in accordance with
      Section 13(d) of the Exchange Act and the rules promulgated thereunder) in
      excess of 9.9910% of the then-issued and outstanding shares of Common Stock,
      including shares issuable upon conversion of the Debenture held by such Holder
      after application of this Section 4(a)(ii).
      Since
      the Holder will not be obligated to report to the Company the number of shares
      of Common Stock it may hold at the time of a conversion hereunder, the Company
      may issue Interest Shares or Principal Shares unless such issuance would result
      in the issuance of shares of Common Stock in excess of 9.9910% of the then
      outstanding shares of Common Stock known by the Company to be owned by the
      Holder and its affiliates. In addition, unless the conversion at issue would
      result in the issuance of shares of Common Stock in excess of 9.9910% of the
      then-outstanding shares of Common Stock without regard to any other shares
      of
      Common Stock that may be beneficially owned by the Holder or an affiliate
      thereof, the Holder shall have the authority and obligation to determine whether
      the restriction contained in this Section 4(a)(ii)
      will
      limit any particular conversion hereunder, and to the extent that the Holder
      determines that the limitation contained in this Section 4(a)(ii)
      applies,
      the determination of which portion of the principal amount of the Debenture
      is
      convertible shall be the responsibility and obligation of the Holder. If the
      Holder has delivered a Conversion Notice for a principal amount of the Debenture
      that, without regard to any other shares that the Holder or its affiliates
      may
      beneficially own, would result in an issuance in excess of the amount permitted
      hereunder, the Company shall notify the Holder of this fact and shall honor
      the
      conversion for the maximum principal amount permitted to be converted on such
      Conversion Date in accordance with the periods described in Section 4(b)
      and, at
      the option of the Holder, either retain any principal amount tendered for
      conversion in excess of the amount permitted hereunder for future conversions
      or
      return such excess principal amount to the Holder. The provisions of this
      Section may be waived by a Holder (but only as to itself and not to any other
      Holder) upon not less than 65 days prior notice to the Company. Other Holders
      shall be unaffected by any such waiver.

     

    (b)   
       
(i)
      Reserved.

     

    (ii)
      Nothing
      herein shall limit a Holder's right to pursue actual damages or declare an
      Event
      of Default pursuant to Section 3
      herein
      for the Company's failure to deliver certificates representing shares of Common
      Stock upon conversion within the period specified herein, and such Holder shall
      have the right to pursue all remedies available to it at law. The exercise
      of
      any such rights shall not prohibit the Holder from seeking to enforce damages
      pursuant to any other Section hereof or under applicable law. Further, if the
      Company shall not have delivered any cash due in respect of conversion of the
      Debenture or as payment of interest thereon by the third (3rd) Trading
      Day after the Conversion Date, the Holder may, by notice to the Company, require
      the Company to issue shares of Common Stock pursuant to Section 4(c),
      except that for such purpose the Conversion Price applicable thereto shall
      be
      the lesser of the Conversion Price on the Conversion Date and the Conversion
      Price on the date of such Holder demand. Any such shares will be subject to
      the
      provisions of this Section.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    (iii)
      In
      addition to any other rights available to the Holder, if the Company fails
      to
      deliver to the Holder any certificate or certificates representing shares of
      Common Stock upon conversion within the period specified herein by the third
      (3rd) Trading Day after the Conversion Date, and if after such third
      (3rd) Trading Day the Holder purchases (in an open market transaction or
      otherwise) Common Stock to deliver in satisfaction of a sale by such Holder
      of
      the Underlying Shares which the Holder anticipated receiving upon such
      conversion (a "Buy-In"), then the Company shall (A) pay in cash to the Holder
      (in addition to any remedies available to or elected by the Holder) the amount
      by which (x) the Holder's total purchase price (including brokerage commissions,
      if any) for the Common Stock so purchased exceeds (y) the product of (1) the
      aggregate number of shares of Common Stock that such Holder anticipated
      receiving from the conversion at issue multiplied by (2) the market price of
      the
      Common Stock at the time of the sale giving rise to such purchase obligation
      and
      (B) at the option of the Holder, either reissue a Debenture in the principal
      amount equal to the principal amount of the attempted conversion or deliver
      to
      the Holder the number of shares of Common Stock that would have been issued
      had
      the Company timely complied with its delivery requirements. If the Company's
      transfer agent is not open for business during a Trading Day, such Trading
      Day
      shall not be counted for purposes of determining the number of days for delivery
      of a Common Stock certificate. For example, if the Holder purchases Common
      Stock
      having a total purchase price of $11,000 to cover a Buy-In with respect to
      an
      attempted conversion of Debentures with respect to which the market price of
      the
      Underlying Shares on the date of conversion was a total of $10,000 under clause
      (A) of the immediately preceding sentence, the Company shall be required to
      pay
      the Holder $1,000. The Holder shall provide the Company written notice
      indicating the amounts payable to the Holder in respect of the
      Buy-In.

     

    (c)   (i)
      The
      "Conversion
      Price"
      shall
      be Two Dollars ($2.00) per share.

     

    (ii)
      If
      the
      Company, at any time while the Debenture is outstanding, shall (a) pay a
      stock dividend or otherwise make a distribution or distributions on shares
      of
      its Common Stock or any other equity or equity equivalent securities payable
      in
      shares of Common Stock, (b) subdivide outstanding shares of Common Stock
      into a larger number of shares, (c) combine (including by way of reverse
      stock split) outstanding shares of Common Stock into a smaller number of shares,
      or (d) issue by reclassification of shares of Common Stock any shares of
      capital stock of the Company, then the Conversion Price shall be multiplied
      by a
      fraction of which the numerator shall be the number of shares of Common Stock
      (excluding treasury shares, if any) outstanding before such event and of which
      the denominator shall be the number of shares of Common Stock outstanding after
      such event. Any adjustment made pursuant to this Section 4(c)(ii)
      shall
      become effective immediately after the record date for the determination of
      stockholders entitled to receive such dividend or distribution and shall become
      effective immediately after the effective date in the case of a subdivision,
      combination or re-classification.

     

    (iii)
      If
      the
      Company, at any time while the Debenture is outstanding, shall distribute to
      all
      holders of Common Stock (and not to the Holder) evidences of its indebtedness
      or
      assets or rights or warrants to subscribe for or purchase any security, then
      in
      each such case the Conversion Price at which the Debenture shall thereafter
      be
      convertible shall be determined by multiplying the Conversion Price in effect
      immediately prior to the record date fixed for determination of stockholders
      entitled to receive such distribution by a fraction of which the denominator
      shall be the Per Share Market Value determined as of the record date mentioned
      above, and of which the numerator shall be such Per Share Market Value on such
      record date less the then fair market value at such record date of the portion
      of such assets or evidence of indebtedness so distributed applicable to one
      outstanding share of the Common Stock, as determined by the Board of Directors
      in good faith. In either case the adjustments shall be described in a written
      statement provided to the Holder describing of the portion of assets or
      evidences of indebtedness so distributed or such subscription rights applicable
      to one share of Common Stock. Such adjustment shall be made whenever any such
      distribution is made and shall become effective immediately after the record
      date mentioned above.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    (iv)
      In
      case
      of any reclassification of the Common Stock or any compulsory share exchange
      pursuant to which the Common Stock is converted into other securities, cash
      or
      property, the Holder shall have the right thereafter to convert the then
      outstanding principal amount, together with all accrued but unpaid interest
      and
      any other amounts then owing hereunder in respect of this Debenture only into
      the shares of stock and other securities, cash and property receivable upon
      or
      deemed to be held by holders of the Common Stock following such reclassification
      or share exchange, and the Holder of the Debenture shall be entitled upon such
      event to receive such amount of securities, cash or property as the shares
      of
      the Common Stock of the Company into which the then outstanding principal
      amount, together with all accrued but unpaid interest and any other amounts
      then
      owing hereunder in respect of this Debenture could have been converted
      immediately prior to such reclassification or share exchange would have been
      entitled.

     

    (v)
      The
      Company shall maintain a share reserve of not less than 105% of the shares
      of
      Common Stock issuable upon conversion of the Debenture; and within five
      (5) Business Days following the receipt by the Company of a Holder's notice
      that such minimum number of Underlying Shares is not so reserved, the Company
      shall if there are sufficient authorized but unissued shares promptly reserve
      a
      sufficient number of shares of Common Stock to comply with such requirement.
      If
      there are not sufficient authorized but unissued shares, the Company shall
      use
      its best efforts to call a special shareholders' meeting within sixty
      (60) days of such notice to increase the number of authorized shares of
      Common Stock.

     

    (vi)
      All
      calculations under this Section 4 shall be made to the nearest ten
      thousandth. No adjustments in either the Conversion Price shall be required
      if
      such adjustment is less than $0.0001, provided, however, that any adjustments
      which by reason of this Section are not required to be made shall be carried
      forward and taken into account in any subsequent adjustment.

     

    (vii)
      Whenever
      the Conversion Price is adjusted pursuant to this Section 4(c), the Company
      shall promptly mail to the Holder a notice setting forth the Conversion Price
      after such adjustment and setting forth a brief statement of the facts requiring
      such adjustment.

     

    (viii)
      If
      (A)
      the Company shall declare a dividend (or any other distribution) on the Common
      Stock; (B) the Company shall declare a special nonrecurring cash dividend on
      or
      a redemption of the Common Stock; (C) the Company shall authorize the granting
      to all holders of the Common Stock rights or warrants to subscribe for or
      purchase any shares of capital stock of any class or of any rights; (D) the
      approval of any stockholders of the Company shall be required in connection
      with
      any reclassification of the Common Stock, any consolidation or merger to which
      the Company is a party, any sale or transfer of all or substantially all of
      the
      assets of the Company, of any compulsory share exchange whereby the Common
      Stock
      is converted into other securities, cash or property; (E) the Company shall
      authorize the voluntary or involuntary dissolution, liquidation or winding
      up of
      the affairs of the Company; then, in each case, the Company shall cause to
      be
      filed at each office or agency maintained for the purpose of conversion of
      the
      Debenture, and shall cause to be mailed to the Holder at its last address as
      it
      shall appear upon the stock books of the Company, at least ten
      (10) calendar days prior to the applicable record or effective date
      hereinafter specified, a notice stating (x) the date on which a record is to
      be
      taken for the purpose of such dividend, distribution, redemption, rights or
      warrants, or if a record is not to be taken, the date as of which the holders
      of
      the Common Stock of record to be entitled to such dividend, distributions,
      redemption, rights or warrants are to be determined or (y) the date on which
      such reclassification, consolidation, merger, sale, transfer or share exchange
      is expected to become effective or close, and the date as of which it is
      expected that holders of the Common Stock of record shall be entitled to
      exchange their shares of the Common Stock for securities, cash or other property
      deliverable upon such reclassification, consolidation, merger, sale, transfer
      or
      share exchange, provided, that the failure to mail such notice or any defect
      therein or in the mailing thereof shall not affect the validity of the corporate
      action required to be specified in such notice. The Holder is entitled to
      convert the Debenture during the ten (10) day calendar period commencing the
      date of such notice to the effective date of the event triggering such
      notice.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    (ix)
      In
      case
      of any (1) merger or consolidation of the Company with or into another Person,
      or (2) sale by the Company of more than one-half (1⁄2) of its assets in one or a
      series of related transactions, a Holder shall have the right to (A) convert
      the
      aggregate principal amount of the Debenture then outstanding into the shares
      of
      stock and other securities, cash and property receivable upon or deemed to
      be
      held by holders of Common Stock following such merger, consolidation or sale,
      and such Holder shall be entitled upon such event or series of related events
      to
      receive such amount of securities, cash and property as the shares of Common
      Stock into which such aggregate principal amount of the Debenture could have
      been converted immediately prior to such merger, consolidation or sales would
      have been entitled, or (B) in the case of a merger or consolidation, require
      the
      surviving entity to issue to the Holder a convertible debenture with a principal
      amount equal to the aggregate principal amount of the Debenture then held by
      such Holder, plus all accrued and unpaid interest and other amounts owing
      thereon, which such newly issued convertible debenture shall have terms
      identical (including with respect to conversion) to the terms of this Debenture,
      and shall be entitled to all of the rights and privileges of the Holder of
      the
      Debenture set forth herein and the agreements pursuant to which the Debentures
      were issued. In the case of clause (B), the conversion price applicable for
      the
      newly issued shares of convertible preferred stock or convertible debentures
      shall be based upon the amount of securities, cash and property that each share
      of Common Stock would receive in such transaction and the Conversion Price
      in
      effect immediately prior to the effectiveness or closing date for such
      transaction. The terms of any such merger, sale or consolidation shall include
      such terms so as to continue to give the Holder the right to receive the
      securities, cash and property set forth in this Section upon any conversion
      or
      redemption following such event. This provision shall similarly apply to
      successive such events.

     

    (d)  The
      Company covenants that it will at all times reserve and keep available out
      of
      its authorized and unissued shares of Common Stock, solely for the purpose
      of
      issuance upon conversion of the Debenture and payment of interest on the
      Debenture, each as herein provided, free from preemptive rights or any other
      actual or contingent purchase rights of persons other than the Holder, not
      less
      than such number of shares of the Common Stock as shall (subject to any
      additional requirements of the Company as to reservation of such shares set
      forth in the Debenture) be issuable (taking into account the adjustments and
      restrictions of Section 4(a)(ii))
      upon
      the conversion of the outstanding principal amount of the Debenture and payment
      of interest hereunder. The Company covenants that all shares of Common Stock
      so
      issuable shall, upon issue, be duly and validly authorized, issued and fully
      paid, nonassessable and, if the registration statement registering the resale
      of
      the Underlying Shares has been declared effective under the Securities Act,
      registered for public sale in accordance with such registration
      statement.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    (e)  Upon
      a
      conversion hereunder the Company shall not be required to issue stock
      certificates representing fractions of shares of the Common Stock, but may
      if
      otherwise permitted, make a cash payment in respect of any final fraction of
      a
      share based on the Per Share Market Value at such time. If the Company elects
      not, or is unable, to make such a cash payment, the Holder shall be entitled
      to
      receive, in lieu of the final fraction of a share, one whole share of Common
      Stock.

     

    (f)  The
      issuance of certificates for shares of the Common Stock on conversion of the
      Debenture shall be made without charge to the Holder thereof for any documentary
      stamp or similar taxes that may be payable in respect of the issuance or
      delivery of such certificates, provided
      that the
      Company shall not be required to pay any tax that may be payable in respect
      of
      any transfer involved in the issuance or delivery of any such certificates
      upon
      conversion in a name other than that of the Holder of the Debenture so
      converted, and the Company shall not be required to issue or deliver such
      certificates unless or until the person or persons requesting the issuance
      thereof shall have paid to the Company the amount of such tax or shall have
      established to the satisfaction of the Company that such tax has been
      paid.

     

    (g)  Any
      and
      all notices or other communications or deliveries to be provided by the Holder
      hereunder, including, without limitation, any Conversion Notice, shall be in
      writing and delivered personally, by facsimile, sent by a nationally recognized
      overnight courier service or sent by certified or registered mail, postage
      prepaid, addressed to the Company, at

     

    
      	
              If
                to the Company:

               

              Interactive
                Television Networks, Inc.

              2010
                Main Street, Suite 500

              Irvine,
                CA 92614

              Telephone
                No.: (949) 223-4100

              Facsimile
                No.: (888) 886-1305

              Attention:
                Murray Williams, CFO

               

              If
                to the Holder:

               

              Pentagon
                Bernini Fund, Ltd.

              c/o
                Pentagon Capital Management Plc.

              88
                Baker Street

              London,
                England W1U 6TQ

              Telephone
                No.: +44 (0)20 7299-9999

              Facsimile
                No.: +44 (0)20 7299-9988

              Attention:
                Mr. Lewis Chester, CEO 

            

    

    
 

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    
      With
        a
        copy to: 

       

      Sheppard,
        Mullin, Richter & Hampton,
        LLP

      333
        South
        Hope Street, 48th Floor

      Los
        Angeles, CA 90071

      Telephone
        No.: (213) 620-1780

      Facsimile
        No.: (213) 620-1398 

      Attention:
        David C. Ulich, Esquire

    

     

    or
      such
      other address or facsimile number as the Company may specify for such purposes
      by notice to the Holder delivered in accordance with this Section. Any and
      all
      notices or other communications or deliveries to be provided by the Company
      hereunder shall be in writing and delivered personally, by facsimile, sent
      by a
      nationally recognized overnight courier service or sent by certified or
      registered mail, postage prepaid, addressed to each Holder at the facsimile
      telephone number or address of such Holder appearing on the books of the
      Company. Any notice or other communication or deliveries hereunder shall be
      deemed given and effective on the earliest of (i) the date of transmission,
      if such notice or communication is delivered via facsimile at the facsimile
      telephone number specified in this Section prior to 5:00 p.m. (the
      recipient's time), (ii) the date after the date of transmission, if such
      notice or communication is delivered via facsimile at the facsimile telephone
      number specified in this Section later than 5:00 p.m. (the recipient's
      time) on any date and earlier than 11:59 p.m. (the recipient's time) on
      such date, (iii) four (4) days after deposit in the United States
      mail, (iv) the Business Day following the date of mailing, if sent by
      nationally recognized overnight courier service, or (v) upon actual receipt
      by the party to whom such notice is required to be given.

     

    Section
      5.  Definitions.
      For the
      purposes hereof, the following terms shall have the following
      meanings:

     

    "Business
      Day"
      means
      any day except Saturday, Sunday and any day that is a federal legal holiday
      in
      the United States or a day on which banking institutions are authorized or
      required by law or other government action to close.

     

    "Commission"
      means
      the Securities and Exchange Commission.

     

    "Common
      Stock"
      means
      the common stock, $0.001 par value per share, of the Company and stock of any
      other class into which such shares may hereafter be changed or
      reclassified.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    "Exchange
      Act"
      means
      the Securities Exchange Act of 1934, as amended.

     

    "Market
      Price"
      on any
      given date means the average of the three lowest intra-day trading prices of
      the
      Company's Common Stock during the ten (10) immediately preceding Trading
      Days (which may include Trading Days prior to the Original Issue Date),
provided,
      that
      such 10-Trading Day period shall be extended by the number of Trading Days
      during such period on which (i) trading in the Common Stock is suspended
      by, or not traded on, the OTC or a Subsequent Market on which the Common Stock
      is then traded, or (ii) after the date the registration statement for the
      Underlying Shares is declared effective by the SEC, the prospectus included
      in
      the registration statement may not be used by the Holder for resale of
      Underlying Shares (provided such inability to use the prospectus is not
      (a) caused by the Holder or (b) the result of the Company's filing of
      post-effective amendments to the registration statement.

     

    "Original
      Issue Date"
      means
      the date of the first issuance of the Debenture, regardless of the number of
      transfers and regardless of the number of instruments that may be issued to
      evidence such Debenture.

     

    "Per
      Share Market Value"
      on any
      given date means the price per share in the last reported trade of the Common
      Stock on the OTC or on a Subsequent Market on which the Common Stock is then
      listed.

     

    "Person"
      means
      an individual, a corporation, a limited liability company, a partnership, an
      unincorporated association, a business trust, a government or political
      subdivision thereof or a governmental agency.

     

    "Record
      Date"
      means,
      with respect to each Interest Payment Date or Quarterly Redemption Date, the
      date that is five (5) Business Days prior to such Interest Payment Date or
      Quarterly Redemption Date.

     

    "Securities
      Act"
      means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder.

     

    "Trading
      Day"
      means a
      day on which shares of Common Stock are quoted on the OTC or quoted or traded
      on
      any Subsequent Market on which shares of Common Stock are then quoted or listed;
      provided
      that in
      the event shares of Common Stock are not so quoted or listed, then "Trading
      Day"
      shall mean a Business Day.

     

    "Underlying
      Shares"
      means
      the shares of Common Stock issuable upon conversion of the Debenture in
      accordance with the terms hereof.

     

    "Warrants"
      means
      the Warrants to Purchase Common Stock, dated April 18, 2006, that were issued
      by
      the Company to the Holder and all other Holders concurrently with the issuance
      of the Debenture on April 18, 2006.

     

    Section
      6.  Except
      as
      expressly provided herein, no provision of this Debenture shall alter or impair
      the obligations of the Company, which are absolute and unconditional, to pay
      the
      principal of, and interest on, this Debenture at the time, place, and rate,
      and
      in the coin or currency, herein prescribed. This Debenture is a direct
      obligation of the Company. This Debenture ranks pari passu with all other
      Debentures previously issued or issued concurrently herewith and shall be senior
      to other convertible Debentures issued in the future. As long as the Debenture
      is outstanding, the Company shall not and shall cause its subsidiaries not
      to,
      without the consent of the Holder, amend its certificate of incorporation,
      bylaws or other charter documents so as to adversely affect any rights of the
      Holder.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    Section
      7.  This
      Debenture shall not entitle the Holder to any of the rights of a stockholder
      of
      the Company, including without limitation, the right to vote, to receive
      dividends and other distributions, or to receive any notice of, or to attend,
      meetings of stockholders or any other proceedings of the Company, unless and
      to
      the extent converted into shares of Common Stock in accordance with the terms
      hereof.

     

    Section
      8.  If
      this
      Debenture is mutilated, lost, stolen or destroyed, the Company shall execute
      and
      deliver, in exchange and substitution for and upon cancellation of the mutilated
      Debenture, or in lieu of or in substitution for a lost, stolen or destroyed
      debenture, a new Debenture for the principal amount of this Debenture so
      mutilated, lost, stolen or destroyed but only upon receipt of evidence of such
      loss, theft or destruction of such Debenture, and of the ownership hereof,
      and
      indemnity, if requested, all reasonably satisfactory to the
      Company.

     

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

     

    Section
      10.  Any
      waiver by the Company or the Holder of a breach of any provision of this
      Debenture shall not operate as or be construed to be a waiver of any other
      breach of such provision or of any breach of any other provision of this
      Debenture. The failure of the Company or the Holder to insist upon strict
      adherence to any term of this Debenture on one or more occasions shall not
      be
      considered a waiver or deprive that party of the right thereafter to insist
      upon
      strict adherence to that term or any other term of this Debenture. Any waiver
      must be in writing.

     

    Section
      11.  If
      any
      provision of this Debenture is invalid, illegal or unenforceable, the balance
      of
      this Debenture shall remain in effect, and if any provision is inapplicable
      to
      any person or circumstance, it shall nevertheless remain applicable to all
      other
      persons and circumstances. If it shall be found that any interest or other
      amount deemed interest due hereunder shall violate applicable laws governing
      usury, the applicable rate of interest due hereunder shall automatically be
      lowered to equal the maximum permitted rate of interest. The Company covenants
      (to the extent that it may lawfully do so) that they shall not at any time
      insist upon, plead, or in any manner whatsoever claim or take the benefit or
      advantage of, any stay, extension or usury law or other law which would prohibit
      or forgive the Company from paying all or any portion of the principal of or
      interest on the Debenture as contemplated herein, wherever enacted, now or
      at
      any time hereafter in force, or which may affect the covenants or the
      performance of this indenture, and the Company (to the extent it may lawfully
      do
      so) hereby expressly waives all benefits or advantage of any such law, and
      covenants that it will not, by resort to any such law, hinder, delay or impeded
      the execution of any power herein granted to the Holder, but will suffer and
      permit the execution of every such as though no such law has been
      enacted.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    Section
      12.  Whenever
      any payment or other obligation hereunder shall be due on a day other than
      a
      Business Day, such payment shall be made on the next succeeding Business
      Day.

     

    Section
      13.  The
      Company may not assign this Debenture or any rights or obligations hereunder
      without the prior written consent of Holder. Holder may assign this Agreement,
      in whole or in part, and any rights or obligation hereunder without the prior
      written consent of Company by delivery of written notice to Company of such
      assignment.

     

    Section
      14.  The
      Company shall provide the Holder with no less than fifteen (15) Trading Days
      advance notice, in writing, of a redemption/prepayment of some or all of the
      outstanding principal balance of this Debenture. Such written notice shall
      state
      the (i) amount of this Debenture that will be subject to
      redemption/prepayment, and (ii) the payment date of the
      pre-payment/redemption. The Holder shall be entitled to convert some or all
      of
      this Debenture until the close of business on the Business Day immediately
      preceding the date set by the Company for the pre-payment/redemption pursuant
      to
      this Section 14.

     

    Section
      15.  If
      any
      action at law or equity is necessary to enforce or interpret this Agreement,
      the
      prevailing party shall be entitled to received from the other party or parities
      reasonable attorneys fees, costs and necessary disbursements (including costs
      of
      collection) in addition to any other relief to which the prevailing party or
      parties maybe entitled. 

     

    IN
      WITNESS WHEREOF, the Company has caused this 16% Secured Convertible
      Debenture to be duly executed by a duly authorized officer as of the date first
      above indicated.

     

    
      	
              INTERACTIVE
                TELEVISION NETWORKS, 

              INC.,
                a
                Nevada corporation

               

               

               

              By:
                _________________________________

              Name:
                ______________________________

              Title:
                _______________________________

            	 
	 

    

    
      
        
        

      

      
        -14-

        
          

        

      

       

    

    EXHIBIT
      A

     

    AMORTIZATION
      SCHEDULE

     

    
      	
              November
                1, 2007

               

            	
              $55,555.00

               

            
	
              December
                1, 2007

               

            	
              $55,555.00

               

            
	
              January
                1, 2008

               

            	
              $55,555.00

               

            
	
              February
                1, 2008

               

            	
              $55,555.00

               

            
	
              March
                1, 2008

               

            	
              $55,555.00

               

            
	
              April
                1, 2008

               

            	
              $55,555.00

               

            
	
              May
                1, 2008

               

            	
              $55,555.00

               

            
	
              June
                1, 2008

               

            	
              $55,555.00

               

            
	
              July
                1, 2008 

               

            	
              $55,555.00

               

            
	
              August
                1, 2008

               

            	
              $55,555.00

               

            
	
              September
                1, 2008 

               

            	
              $55,555.00

               

            
	
              October
                1, 2008 

               

            	
              $55,555.00

               

            
	
              November
                1, 2008

               

            	
              $55,555.00

               

            
	
              December
                1, 2008

               

            	
              $55,555.00

               

            
	
              January
                1, 2009

               

            	
              $55,555.00

               

            
	
              February
                1, 2009

               

            	
              $55,555.00

               

            
	
              March
                1, 2009

               

            	
              $55,555.00

               

            
	
              April
                1, 2009

               

            	
              $55,565.00

               

            

    

    

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

     

    NOTICE
      OF CONVERSION

     

    (To
      be
      Executed by the Registered Holder

    in
      order
      to Convert the Debenture)

    

    The
      undersigned hereby elects to convert the attached Debenture into shares of
      common stock, $0.001 par value per share (the "Common
      Stock"),
      of
      Interactive Television Networks, Inc., a Nevada corporation (the "Company"),
      according to the conditions hereof, as of the date written below. If shares
      are
      to be issued in the name of a person other than the undersigned, the undersigned
      will pay all transfer taxes payable with respect thereto and is delivering
      herewith such certificates and opinions as reasonably requested by the Company
      in accordance therewith. No fee will be charged to the holder for any
      conversion, except for such transfer taxes, if any.

     

    Conversion
      Calculations:

    
      	
              ____________________________________________

              Date
                to Effect Conversion

               

               

              ____________________________________________

              Principal
                Amount of Debentures to be Converted

            
	
              $__________

            	 
	 	 
	 	 
	 
	
              ___________________________________________

              Number
                of shares of Common Stock to be Issued

               

            
	
              ___________________________________________

              Applicable
                Conversion Price

               

            
	
              ___________________________________________

              Signature

               

            
	
              ___________________________________________

              Name

               

            
	
              ___________________________________________

              Address

            

    

     

    

 

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    Schedule
      1

     

    CONVERSION
      SCHEDULE

     

    INTERACTIVE
      TELEVISION NETWORKS, INC.

     

    16%
      Convertible Debenture due April 1, 2009, in the aggregate principal amount
      of $1,000,000.00 issued by Interactive Television Networks, Inc., a Nevada
      corporation. This Conversion Schedule reflects conversions made under
Section 4(a)(i)
      of the
      above-referenced
      Debenture.

     

    Dated:

     

    
      	
              Date
                of Conversion

               

              (or
                for first entry, Original Issue Date)

               

            	
              Amount
                of Conversion

               

            	
              Aggregate
                Principal Amount Remaining Subsequent to Conversion

               

              (or
                original Principal Amount)

               

            	
              Company
                Attest

               

            	 
	
               

            	 	 	 	 
	
               

            	 	 	 	 
	
               

            	 	 	 	 
	
                

            	 	 	 	 
	
               

            	 	 	 	 
	
               

            	 	 	 	 
	
               

            	 	 	 	 
	
               

            	 	 	 	 
	
              
              

            	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

     

     

     

    
      
        
        

      

      
        -17-

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