Document:

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                                                                    Exhibit 10.4

                        FIRST AMENDED SECURITY AGREEMENT

1. DATE: Originally dated September 1,2002 Amended January 16,2003

2. BORROWER: International Travel CD's Inc., a Colorado corporation

3. BORROWER'S MAILING ADDRESS (INCLUDING COUNTY):

     111 Presidential Blvd, Suite 158
     Bala Cynwyd, PA 19004

4. SECURED PARTY'S MAILING ADDRESS (INCLUDING COUNTY):

     Trident Growth Fund, LP
     700 Gemini, Suite 104
     Houston, TX 77058

5.   CLASSIFICATION OF COLLATERAL:  Accounts,  cash, contract rights,  property,
     equipment,  general  intangibles,  instruments,  deposit accounts,  chattel
     paper, leases, mineral rights and all other assets.

6.   COLLATERAL  (INCLUDING ALL ACCESSIONS):  Accounts,  cash,  contract rights,
     property,  equipment, general intangibles,  instruments,  deposit accounts,
     chattel paper, leases, mineral rights and all other assets.

         a) All  attachments,  accessions  accessories,  tools,  parts supplies,
         increases,  and additions to and all replacements of and  substitutions
         for any property described above.

         b) All products  and produce of any of the  property  described in this
         Collateral section.

         c) All accounts,  contracts rights,  general intangibles,  instruments,
         rents, monies,  payments,  and all other rights, arising out of a sale,
         lease,  or other  disposition of any of the property  described in this
         Collateral section.

         d)  All  proceeds   (including   insurance  proceeds)  from  the  sale,
         destruction, loss, or other deposition of any of the property described
         in this Collateral section.

7.   OBLIGATION: Secured Promissory Notes ("Notes"), and all other indebtedness,
     liabilities  and obligations of the Borrower to the Secured Party now owing
     or hereinafter incurred.

         a) DATE:                           September 2002 and January 16,2003

         b) AMOUNT: $950,000

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         c) MAKER: The Borrower

         d) PAYEE: The Secured Party

         e) FINAL MATURITY DATE: As therein provided

         f) TERMS OF PAYMENT (OPTIONAL): As therein provided

Borrower  grants to Secured Party a security  interest in the Collateral and all
its proceeds to secure payment and performance of Borrower's  Obligation and all
renewals and extensions of any of the Obligation.

8.   BORROWER'S WARRANTIES:

         a)  OWNERSHIP.  Borrower owns the  Collateral  and has the authority to
         grant this security interest.

         b) FINANCIAL  STATEMENTS.  All information  about Borrower's  financial
         condition  provided to Secured  Party was accurate when  submitted,  as
         will be any information subsequently provided.

9. BORROWER'S COVENANTS:

         a)  PROTECTION  OF  COLLATERAL.  Borrower  will  defend the  Collateral
         against all claims and demands adverse to Secured  Party's  interest in
         it and will keep it free from all liens  except those for taxes not yet
         due and from all security interests except this one and Permitted Liens
         which are only liens granted to secure senior indebtedness consented to
         by Secured Party.  The Collateral will remain in Borrower's  possession
         or  control  at  all  times,  except  as  otherwise  provided  in  this
         agreement.  Borrower will maintain the Collateral in good condition and
         protect it against misuse,  abuse,  waste and deterioration  except for
         ordinary wear and tear resulting from its intended use.

         b) INSURANCE. Borrower, in the ordinary course of business, will insure
         the Collateral in accord with Secured Party's reasonable requirements.

         c) SECURED  PARTY'S COSTS.  Borrower will pay all expenses  incurred by
         Secured  Party in  obtaining,  preserving,  perfecting,  defending  and
         enforcing this security interest or the Collateral and in collecting or
         enforcing  the  Obligation.  Expenses  for  which  Borrower  is  liable
         include,  but  are  not  limited  to,  taxes,  assessments,  reasonable
         attorney's  fees,  and other legal  expenses.  These expenses will bear
         interest from the dates of payments at the highest rate stated in notes
         that are part of the  Obligation,  and Borrower  will pay Secured Party
         this  interest on demand at a time and place  reasonably  specified  by
         Secured  Party.  These  expenses  and  interest  will  be  part  of the
         Obligation and will be recovered as such in all respects.
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         d)  ADDITIONAL  DOCUMENTS.  Borrower  will sign any papers that Secured
         Party  considers  necessary  to  obtain,  maintain,  and  perfect  this
         security interest or to comply with any relevant law.

         e) NOTICE OF CHANGES. Borrower will immediately notify Secured Party of
         any material change in the Collateral other than in the ordinary course
         of business; change in Borrower's name, address, or location; change in
         any matter warranted or represented in this agreement;  change that may
         affect this security interest; and any Event of Default.

         f) USE AND  REMOVAL OF  COLLATERAL.  Borrower  will use the  Collateral
         primarily according to the stated  classification  unless Secured Party
         consents  otherwise in writing.  Borrower will not allow the Collateral
         to become an accession to any goods, to be commingled with other goods,
         or to become a  fixture,  accession,  or part of a product or mass with
         other goods  except as expressly  provided in this  agreement or in the
         ordinary course of business.

         g) SALE.  Borrower  will not sell,  transfer,  or  encumber  any of the
         Collateral  without the prior  written  consent of Secured  Party other
         than in the ordinary  course of business  except the Borrower may sell,
         transfer or encumber Collateral secured by Permitted Liens.

         h) Borrower agrees not to commingle the Rights to Payment,  proceeds or
         collections thereunder with other property.

         i) Borrower  agrees,  with regard to the Collateral and proceeds,  from
         time to time when reasonably requested by Secured Party, to prepare and
         deliver a  schedule  of all  Collateral  and  proceeds  subject to this
         agreement  and to assign in writing  and  deliver to secured  party all
         accounts,  contracts,  leases  and other  chattel  paper,  instruments,
         documents and other evidences thereof.

         j) Borrower  agrees with regard to the  Collateral  and proceeds in the
         event Secured Party elects to receive  payments of rights to payment or
         proceeds hereunder,  to pay all reasonable expenses incurred by secured
         party  in  connection  therewith,   including  reasonable  expenses  of
         accounting, correspondence, collection efforts, reporting to account or
         contract  Borrowers,  filing,  recording,  record  keeping and expenses
         incidental thereto.

10. RIGHTS AND REMEDIES OF SECURED PARTY:

         a)  GENERALLY.  Secured  Party may  exercise the  following  rights and
         remedies after the occurrence and continuance of an Event of Default:

                  i. take control of any proceeds of the Collateral;

                  ii.  release any Collateral in Secured  Party's  possession to
                  any Borrower, temporarily or otherwise;

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                  iii.  take control of any funds  generated by the  Collateral,
                  such as refunds from and proceeds of insurance, and reduce any
                  part of the Obligation  accordingly or permit  Borrower to use
                  such  funds  to  repair  or  replace   damaged  or   destroyed
                  Collateral covered by insurance; and

                  iv. demand,  collect,  convert,  redeem,  settle,  compromise,
                  receipt for, realize on, adjust, sue for, and foreclose on the
                  Collateral as Secured Party desires.

                  v. exercise any of the other remedies available to the Secured
                  Party under the Loan Agreement.

         b) INSURANCE.  If Borrower  fails to maintain  insurance as required by
         this agreement or otherwise by Secured Party, then after written notice
         to  Borrower,  Secured  Party may  purchase  single-interest  insurance
         coverage  up to  the  replacement  value  of  the  Collateral  that  is
         insurable  that will  protect  only  Secured  Party.  If Secured  Party
         purchases  this  insurance,  its  premiums  will  become  part  of  the
         Obligation.

11.  EVENTS OF DEFAULT:  Each of the following conditions is an Event of Default
     if not cured within an applicable cure period:

         a) if  Borrower  defaults  in  timely  payment  or  performance  of any
         obligation,  covenant,  or liability in any written  agreement  between
         Borrower and Secured Party or in any other transaction  secured by this
         agreement;

         b) if any warranty, covenant or representation made to Secured Party by
         or on behalf of  Borrower  proves  to have been  false in any  material
         respect when made;

         c) if a receiver is appointed for Borrower or any of the Collateral;

         d) if any financing  statement regarding the Collateral but not related
         to this security interest and not favoring Secured Party is filed other
         than financing statements for the purpose of noticing Permitted Liens;

         e) if any lien,  other than  Permitted  Liens,  attaches  to any of the
         Collateral;

         f) if any material amount of the Collateral is lost,  stolen,  damaged,
         or destroyed,  unless it is promptly  replaced with  Collateral of like
         quality or restored to its former condition.

         g)  Secured  party,  in good  faith,  believes  that  any or all of the
         Collateral  and/or  proceeds  to be in danger of  misuse,  dissipation,
         commingling,  loss,  theft,  damage or  destruction,  or  otherwise  in
         jeopardy or unsatisfactory in character or value.

         h) A Default shall occur and be continuing under the Notes.

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12. REMEDIES OF SECURED PARTY ON DEFAULT:

During the existence of any Event of Default and subject to any applicable  cure
periods,  Secured Party may declare the unpaid  principal and earned interest of
the Obligation  immediately due in whole or part,  enforce the  Obligation,  and
exercise any rights and remedies  granted by the Uniform  Commercial  Code or by
this agreement, including the following:

         a) require  Borrower to deliver to Secured  Party all books and records
         relating to the Collateral;

         b) require Borrower to assemble the Collateral and make it available to
         Secured Party at a place reasonably convenient to both parties;

         c) take  possession of any of the Collateral and for this purpose enter
         any premises  where it is located if this can be done without breach of
         the peace;

         d) sell, lease, or otherwise dispose of any of the Collateral in accord
         with the rights, remedies, and duties of a secured party under chapters
         2 and 9 of the Texas Uniform  Commercial  Code after notice as required
         by those chapters;  unless the Collateral threatens to decline speedily
         in value,  is  perishable,  or would  typically be sold on a recognized
         market,  Secured  Party  will give  Borrower  reasonable  notice of any
         public  sale  of the  Collateral  or of a time  after  which  it may be
         otherwise  disposed  of without  further  notice to  Borrower;  in this
         event,  notice  will be  deemed  reasonable  if it is  mailed,  postage
         prepaid,  to Borrower at the address  specified  in this  agreement  at
         least ten days  before any public sale or ten days before the time when
         the Collateral may be otherwise  disposed of without  further notice to
         Borrower;  in this  event,  notice will be deemed  reasonable  if it is
         mailed,  postage prepaid,  to Borrower at the address specified in this
         agreement  at least ten days before any private sale or ten days before
         any public  sale or ten days  before  time when the  Collateral  may be
         otherwise disposed of without further notice to Borrower;

         e) surrender any insurance policies covering the Collateral and receive
         the unearned premium;

         f) apply any proceeds from  disposition of the Collateral after default
         in the manner  specified in chapter 9 of the Uniform  Commercial  Code,
         including  payment of Secured  Party's  reasonable  attorney's fees and
         court expenses; and

         g) if disposition of the Collateral leaves the Obligation  unsatisfied,
         collect the deficiency from Borrower.

13. GENERAL PROVISIONS

         a) Parties Bound.  Secured  Party's  rights under this agreement  shall
         inure to the benefit of its successors  and assigns.  Assignment of any
         part of the Obligation and delivery by Secured Party

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         of  any part of the Collateral will fully discharge  Secured Party from
         responsibility  for  that part of the  Collateral.  If Borrower is more
         than  one, all their  representations,  warranties,  and agreements are
         joint and several.   Borrower's  obligations under this agreement shall
         bind Borrower's personal  representatives, successors, and assigns.

         b) Waiver.  Neither  delay in  exercise  nor  partial  exercise  of any
         Secured  Party's  remedies or rights  shall waive  further  exercise of
         those remedies or rights.  Secured Party's failure to exercise remedies
         or rights  does not waive  subsequent  exercise  of those  remedies  or
         rights.  Secured  Party's  waiver of any default does not waive further
         default.  Secured  Party's  waiver of any right in this agreement or of
         any  default is binding  only if it is in  writing.  Secured  Party may
         remedy any default without waiving it.

         c)  Reimbursement.  If  Borrower  fails to  perform  any of  Borrower's
         obligations,  Secured  Party  may  perform  those  obligations  and  be
         reimbursed by Borrower on demand at the place where the note is payable
         for any  sums so  paid,  including  attorney's  fees  and  other  legal
         expenses,  plus interest on those sums from the dates of payment at the
         rate  stated in the note for  matured,  unpaid  amounts.  The sum to be
         reimbursed shall be secured by this security agreement.

         d) Interest Rate.  Interest included in the Obligation shall not exceed
         the maximum amount of non-usurious interest that may be contracted for,
         taken, reserved, charged, or received under law; any interest in excess
         of that  maximum  amount  shall be  credited  to the  principal  of the
         obligation or, if that has been paid, refunded.  On any acceleration or
         required or permitted  prepayment  of the  Obligation,  any such excess
         shall be canceled  automatically  as of the  acceleration or prepayment
         or, if already paid, credited on the principal amount of the Obligation
         or, if the principal  amount has been paid,  refunded.  This  provision
         overrides other provisions in this and all other instruments concerning
         the Obligation.

         e) Modifications.  No provisions of this agreement shall be modified or
         limited except by written agreement.

         f)  Severability.   The  unenforceability  of  any  provision  of  this
         agreement will not effect the  enforceability  or validity of any other
         provision.

         g)  After-Acquired  Consumer Goods. This security interest shall attach
         to after acquired consumer goods only to the extent permitted by law.

         h) Applicable Law. This agreement will be construed  according to Texas
         laws.

         i) Place of  Performance.  This  agreement  is to be  performed  in the
         county of Secured Party's mailing address.  In this case, the agreement
         will be performed in Dallas county, Texas.

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         j) Financing Statement. A carbon,  photographic,  or other reproduction
         of this agreement or any financing statement covering the Collateral is
         sufficient as a financing statement.

         k) Presumption  of Truth and Validity.  If the Collateral is sold after
         default,  recitals in the bill of sale or transfer  will be prima facie
         evidence of their truth, and all prerequisites to the sale specified by
         this  agreement  and by the  Texas  Uniform  Commercial  Code  will  be
         presumed satisfied.

         1) Singular and Plural.  When the context requires,  singular nouns and
         pronouns include the plural.

         m) Cumulative  Remedies.  Foreclosure of this security interest by suit
         does not limit Secured  Party's  remedies,  including the right to sell
         the  Collateral  under the terms of this  agreement.  All  remedies  of
         Secured Party may be exercised at the same or different  times,  and no
         remedy  shall be a defense to any  other.  Secured  Party's  rights and
         remedies include all those granted by law or otherwise,  in addition to
         those specified in this agreement.

         n) Agency.  Borrower's appointment of Secured Party as Borrower's agent
         is  coupled  with an  interest  and  will  survive  any  disability  of
         Borrower.

Secured Party:

----------------------------
Trident Growth Fund, LP
By: Trident Management, LLC, its General Partner
By: Scotty Cook, Authorized Member

Borrower:
International CD's, Inc.

-----------------------------
Gerald Harrington
Title: President

<PAGE><PAGE>

                                                                    Exhibit 10.5

THE  SECURITIES REPRESENTED BY THESE WARRANTS AND THE COMMON STOCK ISSUABLE
THEREBY HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES  ACT"), OR ANY OTHER APPLICABLE  SECURITIES LAW. THE SECURITIES
REPRESENTED  BY THESE  WARRANTS MAY NOT BE  TRANSFERRED,  EXCEPT  PURSUANT TO AN
EFFECTIVE  REGISTRATION  STATEMENT  UNDER,  OR  IN  A  TRANSACTION  EXEMPT  FROM
REGISTRATION  UNDER,  THE  SECURITIES  ACT  AND IN  ACCORDANCE  WITH  ANY  OTHER
APPLICABLE SECURITIES LAWS.

                                    WARRANTS
                           to Purchase Common Stock of
                         International Travel CD's, Inc.
                          Expiring on January 16, 2008

Warrant No. 2003-1

         This Common Stock Purchase  Warrant (the "Warrant")  certifies that for
value  received,  Trident Growth Fund,  L.P. (the  "Holder") or its assigns,  is
entitled  to  subscribe  for and  purchase  from  the  Company  (as  hereinafter
defined),  in whole or in  part,  100,000  shares  of duly  authorized,  validly
issued,  fully paid and  nonassessable  shares of Common  Stock (as  hereinafter
defined)  at an  initial  Exercise  Price  (as  hereinafter  defined)  of $1.50,
subject,   however,  to  the  provisions  and  upon  the  terms  and  conditions
hereinafter  set forth.  The number of Warrants (as  hereinafter  defined),  the
number of shares of Common Stock purchasable  hereunder,  and the Exercise Price
therefore are subject to adjustment as hereinafter set forth. These Warrants and
all rights hereunder shall expire on 5:00 p.m., Houston, Texas time, January 16,
2008 (the "Expiration Date").

                                    ARTICLE I

                                   Definitions

         As used herein,  the following  terms shall have the meanings set forth
below:

         1.1 "Company" shall mean  International  Travel CD's,  Inc., a Colorado
corporation,  and shall also include any  successor  thereto with respect to the
obligations hereunder, by merger, consolidation or otherwise.

         1.2 "Common  Stock" shall mean and include the Company's  common stock,
$0.001  par value per share,  authorized  on the date of the  original  issue of
these  Warrants  and  shall  also  include  (i) in case  of any  reorganization,
reclassification,  consolidation,  merger,  share exchange or sale,  transfer or
other disposition of assets, the stock or other securities  provided for herein,
and (ii) any other  shares of common stock of the Company into which such shares
of Common Stock may be converted.

         1.3 "Exercise Price" shall mean the initial exercise price of$1.50,  as
adjusted from time to time pursuant to the provisions hereof.

<PAGE>

         1.4  "Market  Price" for any day,  when used with  reference  to Common
Stock,  shall mean the price of said Common Stock determined by reference to the
last  reported  sale  price for the  Common  Stock on such day on the  principal
securities  exchange on which the Common  Stock is listed or admitted to trading
or if no such sale takes place on such date,  the average of the closing bid and
asked prices thereof as officially reported, or, if not so listed or admitted to
trading on any securities exchange,  the last sale price for the Common Stock on
the National  Association of Securities  Dealers  national market system on such
date,  or, if there  shall  have been no  trading  on such date or if the Common
Stock  shall not be listed on such  system,  the  average of the closing bid and
asked prices in the over-the-counter market as furnished by any NASD member firm
selected  from time to time by the  Company  for such  purpose or, if the Common
Stock  is not  traded,  then  such  price  as is  reasonably  determined  by the
Company's Board of Directors.

         1.5  "Warrant"  shall mean the right upon   exercise  to  purchase  one
Warrant Share.

         1.6 "Warrant Shares" shall mean the shares of Common Stock purchased or
purchasable by the holder hereof upon the exercise of the Warrants.

<PAGE>

                                   ARTICLE II

                              Exercise of Warrants

         II.1  METHOD  OF  EXERCISE.  The  Warrants  represented  hereby  may be
exercised by the holder  hereof,  in whole or in part, at any time and from time
to time on or after the date hereof until 5:00 p.m., Houston, Texas time, on the
Expiration  Date. To exercise the  Warrants,  the holder hereof shall deliver to
the Company,  at the Warrant Office designated  herein,  (i) a written notice in
the form of the  Subscription  Notice  attached  as an exhibit  hereto,  stating
therein  the  election of such  holder to  exercise  the  Warrants in the manner
provided in the Subscription  Notice; (ii) payment in full of the Exercise Price
(A) in cash or by bank check for all Warrant Shares purchased hereunder,  or (B)
through a "cashless"  or  "net-issue"  exercise of each such Warrant  ("Cashless
Exercise");  the  holder  shall  exchange  each  Warrant  subject  to a Cashless
Exercise for that number of Warrant Shares  determined by multiplying the number
of Warrant Shares issuable hereunder by a fraction, the numerator of which shall
be the  difference  between (x) the Market Price and (y) the Exercise  Price for
each such Warrant,  and the denominator of which shall be the Market Price;  the
Subscription  Notice  shall set forth the  calculation  upon which the  Cashless
Exercise is based,  or (C) a combination  of (A) and (B) above;  and (iii) these
Warrants. The Warrants shall be deemed to be exercised on the date of receipt by
the Company of the Subscription  Notice,  accompanied by payment for the Warrant
Shares and surrender of these Warrants, as aforesaid,  and such date is referred
to herein as the "Exercise  Date".  Upon such exercise,  the Company  shall,  as
promptly as practicable  and in any event within five business  days,  issue and
deliver to such holder a certificate or certificates  for the full number of the
Warrant  Shares  purchased  by such  holder  hereunder,  and  shall,  unless the
Warrants have expired,  deliver to the holder hereof a new Warrant  representing
the number of Warrants, if any, that shall not have been exercised, in all other
respects identical to these Warrants. As permitted by applicable law, the person
in whose name the certificates for Common Stock are to be issued shall be deemed
to have become a holder of record of such Common Stock on the Exercise  Date and
shall be entitled to all of the  benefits of such holder on the  Exercise  Date,
including   without   limitation  the  right  to  receive  dividends  and  other
distributions  for which the record date falls on or after the Exercise Date and
to exercise voting rights.

         II.2  EXPENSES AND TAXES.  The Company shall pay all expenses and taxes
(including,  without  limitation,  all  documentary,  stamp,  transfer  or other
transactional  taxes) other than income taxes  attributable to the  preparation,
issuance or delivery of the Warrants and of the shares of Common Stock  issuable
upon exercise of the Warrants.

         II.3  RESERVATION  OF SHARES.  The Company  shall  ensure that there is
reserved  at all times so long as the  Warrants  remain  outstanding,  free from
preemptive  rights,  out of its authorized but unissued  shares of Common Stock,
solely for the purpose of effecting the exercise of the  Warrants,  a sufficient
number of shares of Common Stock to provide for the exercise of the Warrants.

         II.4 Valid Issuance. All shares of Common Stock that may be issued upon
exercise of the Warrants will, upon issuance by the Company, be duly and validly
issued,  fully paid and nonassessable and free from all taxes, liens and charges
with respect to the issuance thereof and, without limiting the generality of the
foregoing,  the  Company  shall take no action or fail to take any action  which
will cause a contrary result  (including,  without  limitation,  any action that
would  cause the  Exercise  Price to be less than the par value,  if any, of the
Common Stock).

         II.5 LOAN  AGREEMENT.  The Warrants  represented  hereby were issued on
conjunction  with a Loan Agreement dated around of approximate  date hereof (the
"Loan  Agreement")  between  the Company  and the  Holder.  The Holder  shall be
entitled  to the  rights  to  registration  under  the  Securities  Act  and any
applicable  state  securities  or blue sky laws to the  extent  set forth in the
registration  rights  provision  found

<PAGE>

in the Loan  Agreement.  The terms of the  registration  rights  provisions  are
hereby  incorporated  herein for all purposes and shall be  considered a part of
this Warrant as if they had been fully set forth herein.

         II.6  ACKNOWLEDGMENT  OF  RIGHTS.  At the time of the  exercise  of the
Warrants in accordance with the terms hereof and upon the written request of the
holder hereof, the Company will acknowledge in writing its continuing obligation
to afford to such holder any rights (including, without limitation, any right to
registration  of the Warrant  Shares) to which such holder shall  continue to be
entitled  after  such  exercise  in  accordance  with  the  provisions  of these
Warrants;  provided,  however,  that if the Holder hereof shall fail to make any
such  request,  such failure shall not affect the  continuing  obligation of the
Company to afford to such Holder any such rights.

         II.7 NO FRACTIONAL  SHARES.  The Company shall not be required to issue
fractional  shares of Common  Stock on the exercise of these  Warrants.  If more
than one Warrant  shall be  presented  for exercise at the same time by the same
holder,  the number of full shares of Common Stock which shall be issuable  upon
such exercise  shall be computed on the basis of the  aggregate  number of whole
shares of Common Stock purchasable on exercise of the Warrants so presented.  If
any fraction of a share of Common Stock would, except for the provisions of this
Section,  be issuable on the exercise of this Warrant,  the Company shall pay an
amount in cash  calculated by it to be equal to the Market Price of one share of
Common Stock at the time of such exercise  multiplied by such fraction  computed
to the nearest whole cent.

                                   ARTICLE III

                                    Transfer

         III.1 WARRANT OFFICE.  The Company shall maintain an office for certain
purposes specified herein (the "Warrant  Office"),  which office shall initially
be the Company's offices at 111 Presidential  Blvd.,  Suite 158, Bala Cynwyd, PA
19004  and may  subsequently  be such  other  office  of the  Company  or of any
transfer agent of the Common Stock in the continental  United States as to which
written  notice has  previously  been given to the  Holder.  The  Company  shall
maintain,  at the  Warrant  Office,  a register  for the  Warrants  in which the
Company  shall  record  the name and  address  of the Person in whose name these
Warrants  has been  issued,  as well as the name and  address of each  permitted
assignee of the rights of the registered owner hereof.

         III.2 OWNERSHIP OF WARRANTS.  The Company may deem and treat the Person
in whose name the Warrants are  registered  as the holder and owner hereof until
provided  with notice to the  contrary.  The  Warrants  may be  exercised  by an
assignee for the purchase of Warrant Shares without having new Warrants issued.

         III.3  RESTRICTIONS  ON TRANSFER OF  WARRANTS.  These  Warrants  may be
transferred,  in whole or in part, by the Holder. The Company agrees to maintain
at the Warrant Office books for the  registration  and transfer of the Warrants.
The Company,  from time to time,  shall register the transfer of the Warrants in
such  books  upon  surrender  of this  Warrant at the  Warrant  Office  properly
endorsed or  accompanied  by  appropriate  instruments  of transfer  and written
instructions for transfer. Upon any such transfer and upon payment by the holder
or its transferee of any applicable transfer taxes, new Warrants shall be issued
to the transferee and the transferor (as their respective  interests may appear)
and the  surrendered  Warrants  shall be cancelled  by the Company.  The Company
shall pay all taxes (other than  securities  transfer taxes or income taxes) and
all other  expenses and charges  payable in connection  with the transfer of the
Warrants pursuant to this Section.
<PAGE>

         III.4  COMPLIANCE  WITH  SECURITIES  LAWS.  Subject to the terms of the
Registration  Rights  provision of the Loan  Agreement and  notwithstanding  any
other provisions contained in these Warrants,  the Holder understands and agrees
that the  following  restrictions  and  limitations  shall be  applicable to all
Warrant  Shares and to all resales or other  transfers  thereof  pursuant to the
Securities Act:

                  III.4.l The holder hereof  agrees that the Warrant  Shares may
  not be sold or otherwise  transferred unless the Warrant Shares are registered
  under the Securities Act and applicable  state  securities or blue sky laws or
  are exempt therefrom.
                  IIIA.2 A legend in  substantially  the following  form will be
  placed on the certificate (s) evidencing the Warrant Shares:

                  "THE SECURITIES  REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED   UNDER  THE   SECURITIES  ACT  OF  1933,  AS  AMENDED  (THE
         "SECURITIES  ACT"),  OR  ANY  OTHER  APPLICABLE   SECURITIES  LAW  AND,
         ACCORDINGLY,  THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE
         RESOLD,  PLEDGED,  0 R  OTHERWISE  TRANSFERRED,  EXCEPT  PURSUANT TO AN
         EFFECTIVE REGISTRATION STATEMENT UNDER, OR IN A TRANSACTION EXEMPT FROM
         REGISTRA TION UNDER,  THE  SECURITIES  ACT AND IN  ACCORDANCE  WITH ANY
         OTHER APPLICABLE SECURITIES LAWS."

<PAGE>

                                   ARTICLE IV

                                  Anti-Dilution

         IV.I If and whenever any  Additional  Common Stock (as herein  defined)
shares  shall  be  issued  by  the  Company  (the  "Stock  Issue  Date")  for  a
consideration per share less than the Exercise Price, then in each such case the
initial  Exercise  Price shall be reduced to a new  Exercise  Price in an amount
equal to the  consideration per share received by the Company for the additional
shares of Common  Stock then issued and the number of shares  issuable to Holder
upon conversion shall be proportionately  increased;  and, in the case of shares
issued  without  consideration,  the initial  Exercise Price shall be reduced in
amount and the number of shares issued upon conversion  shall be increased in an
amount so as to maintain for the Holder the right to exereise  into shares equal
in amount to the same percentage  interest in the Common Stock of the Company as
existed for the Holder immediately preceding the Stock Issue Date.

         IV.2 Sale of Shares: In case of the issuance of Additional Common Stock
for a  consideration  part or all of which shall be cash, the amount of the cash
consideration therefore shall be deemed to be the amount of the cash received by
Company  for such  shares,  after  any  compensation  or  discount  in the sale,
underwriting or purchase thereof by underwriters or dealers or others performing
similar services or for any expenses incurred in connection  therewith.  In case
of the issuance of any shares of  Additional  Common  Stock for a  consideration
part or all of which shall be other than cash,  the amount of the  consideration
therefore,  other than cash, shall be deemed to be the then fair market value of
the property  received as determined  by an investment  banking firm selected by
Lender.

         IV.3  Reclassification  of Shares: In case of the  reclassification  of
securities  into shares of Common  Stock,  the shares of Common  Stock issued in
such  reclassification  shall be deemed to have been issued for a  consideration
other than cash.  Shares of Additional Common Stock issued by way of dividend or
other  distribution on any class of stock of the Company shall be deemed to have
been issued without consideration.

         IV.4 Split up or Combination of Shares:  In case issued and outstanding
shares of Common Stock shall be subdivided or split up into a greater  number of
shares  of the  Common  Stock,  the  Exercise  Price  shall  be  proportionately
decreased,  and in case issued and  outstanding  shares of Common Stock shall be
combined  into a smaller  number of shares of Common Stock,  the Exercise  Price
shall be proportionately  increased,  such increase or decrease, as the case may
be, becoming effective at the time of record of the split-up or combination,  as
the case may be.

         IV.5 Exceptions:  The term "Additional  Common Stock" herein shall mean
in the most broadest  sense all shares of Common Stock  hereafter  issued by the
Company (including,  but not limited to Common Stock held in the treasury of the
Company and common stock  purchasable  via derivative  security or option on the
date of such  grant),  except  Common  Stock  issued  upon the  exercise of this
warrant or the Convertible Notes.

         IV.6 In the event of  distribution  to all Common Stock  holders of any
stock,  indebtedness  of the  Company  or  assets or other  rights  to  purchase
securities or assets,  then,  after such event, the Exercise Price reduced to so
as to entitle the Holder to the economic  interest he had  immediately  prior to
the occurrence of such event.

         IV.7 In case of any  capital  reorganization,  reclassification  of the
stock of the Company (other than a change in par value or as a result of a stock
dividend,  subdivision,  split up or combination of shares),  the Exercise Price
reduced  to so as to  entitle  the  Holder  to  the  economic  interest  he  had

<PAGE>

immediately  prior to the  occurrence  of such event.  The  provisions  of these
foregoing  sentences  shall  similarly  apply  to  successive   reorganizations,
reclassifications,   consolidations,   exchanges,  leases,  transfers  or  other
dispositions or other share exchanges.

         IV.8 Notice of  Adjustment.  (A) In the event the Company shall propose
to take any action which shall result in an  adjustment  in the Exercise  Price,
the Company  shall give notice to the Holder,  which  notice  shall  specify the
record  date,  if any,  with  respect to such  action and the date on which such
action is to take place.  Such notice shall be given on or before the earlier of
10 days  before the record  date or the date which such  action  shall be taken.
Such notice shall also set forth all facts (to the extent known) material to the
effect of such action on the  Exercise  Price and the  number,  kind or class of
shares or other securities or property which shall be deliverable or purchasable
upon the occurrence of such action or deliverable  upon exercise of this warrant
(B)  Following  completion  of an event  wherein  the  Exercise  Price  shall be
adjusted,  the Company  shall  furnish to the Holder a  statement,  signed by an
authorized  officer of the Company of the facts  creating  such  adjustment  and
specifying the resultant adjusted Exercise Price then in effect.

<PAGE>

                                    ARTICLE V

                                  Miscellaneous

         V.I ENTIRE AGREEMENT. These Warrants,  together wit the Loan Agreement,
contain  the entire  agreement  between the holder  hereof and the Company  with
respect to the Warrant Shares  purchasable  upon exercise hereof and the related
transactions  and  supersedes  all prior  arrangements  or  understandings  with
respect thereto.

         V.2  GOVERNING  LAW. This warrant shall be governed by and construed in
accordance  with the laws of the State of Texas in the courts located in Dallas,
Texas.

         V.3 WAIVER AND  AMENDMENT.  Any term or provision of these Warrants may
be waived at any time by the party which is entitled to the benefits thereof and
any term or provision of these  Warrants may be amended or  supplemented  at any
time by agreement of the holder  hereof and the Company,  except that any waiver
of any term or condition, or any amendment or supplementation, of these Warrants
shall be in  writing.  A waiver of any breach or  failure to enforce  any of the
terms or  conditions  of these  Warrants  shall not in any way effect,  limit or
waive a  party's  rights  hereunder  at any time to  enforce  strict  compliance
thereafter with every term or condition of these Warrants.

         V.4  ILLEGALITY.  In the event  that  anyone or more of the  provisions
contained  in this  Warrant  shall  be  determined  to be  invalid,  illegal  or
unenforceable  in any  respect  for  any  reason,  the  validity,  legality  and
enforceability  of any such  provision  in any other  respect and the  remaining
provisions  of these  Warrants  shall not, at the election of the party for whom
the benefit of the provision exists, be in any way impaired.

         V.5 COPY OF WARRANT.  A copy of these Warrants shall be filed among the
records of the Company.

         V.6 NOTICE.  Any notice or other  document  required or permitted to be
given or delivered to the holder hereof shall be in writing and delivered at, or
sent by certified or  registered  mail to such holder at, the last address shown
on  the  books  of  the  Company  maintained  at  the  Warrant  Office  for  the
registration of these Warrants or at any more recent address of which the holder
hereof shall have notified the Company in writing.

         V.7 LIMITATION OF LIABILITY;  NOT  STOCKHOLDERS.  No provision of these
Warrants  shall be construed as  conferring  upon the holder hereof the right to
vote,  consent,  receive  dividends  or receive  notices  (other  than as herein
expressly  provided) in respect of meetings of stockholders  for the election of
directors of the Company or any other matter  whatsoever as a stockholder of the
Company. No provision hereof, in the absence of affirmative action by the holder
hereof to purchase shares of Common Stock, and no mere enumeration herein of the
rights or privileges of the holder  hereof,  shall give rise to any liability of
such  holder  for the  purchase  price of any  shares  of  Common  Stock or as a
stockholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

         V.8  EXCHANGE,  LOSS,  DESTRUCTION,  ETC. OF WARRANT.  Upon  receipt of
evidence reasonably  satisfactory to the Company of the loss, theft,  mutilation
or destruction  of these  Warrants,  and in the case of any such loss,  theft or
destruction  upon delivery of an appropriate  affidavit in such form as shall be
reasonably satisfactory to the Company and include reasonable indemnification of
the Company,  or in the event of such mutilation upon surrender and cancellation
of these Warrants, the Company will make and deliver new Warrants of like tenor,
in lieu of such lost,  stolen,  destroyed

<PAGE>

or mutilated Warrants.  Any Warrants issued under the provisions of this Section
in lieu of any Warrants alleged to be lost,  destroyed or stolen,  or in lieu of
any mutilated Warrants,  shall constitute an original contractual  obligation on
the part of the  Company.  These  Warrants  shall be  promptly  canceled  by the
Company  upon  the  surrender   hereof  in  connection   with  any  exchange  or
replacement.  The Company  shall pay all taxes (other than  securities  transfer
taxes or income taxes) and all other expenses and charges  payable in connection
with the  preparation,  execution  and  delivery  of  Warrants  pursuant to this
Section.

         V.9 HEADINGS. The Article and Section and other headings herein are for
convenience  only and are not a part of this  Warrant  and shall not  affect the
interpretation thereof.

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be signed in
its name dated January 16,2003.

                                           International Travel CD's, Inc.

                                           -------------------------------------
                                           Gerald Harrington
                                           Title: President

                                           -------------------------------------
                                           Witness

<PAGE>

                               SUBSCRIPTION NOTICE

         The undersigned, the holder of the foregoing Warrants, hereby elects to
exercise purchase rights  represented  thereby for, and to purchase  thereunder,
____________  shares of the Common Stock covered by such Warrants,  and herewith
makes payment in full for such shares,  and requests (a) that  certificates  for
such shares  (and any other  securities  or other  property  issuable  upon such
exercise)  be issued in the name of, and  delivered  to, and (b), if such shares
shall not include all of the shares issuable as provided in such Warrants,  that
new  Warrants  of like tenor and date for the  balance  of the  shares  issuable
thereunder be delivered to the undersigned.

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

Date: ________________________

<PAGE>

                                   ASSIGNMENT

         For value received,  _____________________,  hereby sells,  assigns and
transfers unto __________  these Warrants,  together with all rights,  title and
interest    therein,    and   does    irrevocably    constitute    and   appoint
_______________________  attorney, to transfer such Warrants on the books of the
Company, with full power of substitution.

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

Date: ________________________

<PAGE>

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