Document:

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                                                                     EXHIBIT 4.7

                                CREDIT AGREEMENT

                                 BY AND BETWEEN

                          COMERICA BANK-TEXAS ("BANK")

                                       AND

                    DIGITALCONVERGENCE.:COM INC. ("BORROWER")

                               DATED MAY 16, 2000

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                                                      INDEX
                                                                                                             PAGE
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SECTION 1.    DEFINITIONS.....................................................................................1

     1.1      Defined Terms...................................................................................1

     1.2      Accounting Terms................................................................................1

     1.3      Singular and Plural.............................................................................1

SECTION 2.    TERMS, CONDITIONS AND PROCEDURES FOR CREDIT FACILITIES..........................................1

SECTION 3.    REPRESENTATIONS AND WARRANTIES..................................................................2

     3.1      Authority.......................................................................................2

     3.2      Due Authorization...............................................................................2

     3.3      Title to Property...............................................................................2

     3.4      Encumbrances....................................................................................2

     3.5      Subsidiaries....................................................................................2

     3.6      Taxes...........................................................................................2

     3.7      No-Defaults.....................................................................................2

     3.8      Enforceability of Agreement and Loan Documents..................................................3

     3.9      Non-contravention...............................................................................3

     3.10     Actions, Suits, Litigation or Proceedings.......................................................3

     3.11     Compliance with Laws............................................................................3

     3.12     Consents, Approvals and Filings, Etc............................................................3

     3.13     Contracts, Agreements and Leases................................................................3

     3.14     ERISA...........................................................................................4

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     3.15     No Investment Company...........................................................................4

     3.16     Left blank intentionally........................................................................4

     3.17     Environmental Representations...................................................................4

     3.18     Accuracy of Information.........................................................................5

     3.19     Left blank intentionally........................................................................5

     3.20     Intellectual Property...........................................................................5

SECTION 4.    AFFIRMATIVE COVENANTS...........................................................................5

     4.1      Preservation of Existence, Etc..................................................................5

     4.2      Keeping of Books................................................................................6

     4.3      Reporting Requirements..........................................................................6

     4.4      Financial Covenants.............................................................................8

     4.5      Inspections.....................................................................................8

     4.6      Further Assurances; Financing Statements........................................................8

     4.7      Funds Used to Provide Collateral................................................................8

     4.8      Indemnification.................................................................................8

     4.9      Governmental and Other Approvals................................................................8

     4.10     Insurance.......................................................................................9

     4.11     Compliance with ERISA...........................................................................9

     4.12     Environmental Covenants.........................................................................9

     4.13     Prior Notice of Encumbrances...................................................................10

     4.14     Registration of Intellectual Property Rights...................................................10

     4.15     Intellectual Property..........................................................................11

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SECTION 5.    NEGATIVE COVENANTS.............................................................................11

     5.1      Capital Structure, Business Objects or Purpose.................................................11

     5.2      Mergers or Dispositions........................................................................11

     5.3      Comerica Bank Trust Account....................................................................12

     5.4      Acquisitions...................................................................................12

     5.5      Defaults on Other Obligations..................................................................12

     5.6      No Further Negative Pledges....................................................................12

SECTION 6.    EVENTS OF DEFAULT..............................................................................12

     6.1      Events of Default..............................................................................12

     6.2      Remedies Upon Event of Default.................................................................14

     6.3      Setoff.........................................................................................15

     6.4      Waiver of Certain Laws.........................................................................15

     6.5      Waiver of Defaults.............................................................................15

     6.6      Receiver.......................................................................................15

     6.7      Discretionary Credit and Credit Payable Upon Demand............................................15

     6.8      Application of Proceeds of Collateral..........................................................16

SECTION 7.    MISCELLANEOUS..................................................................................16

     7.1      Accounting Principles..........................................................................16

     7.2      Taxes and Fees.................................................................................16

     7.3      Governing Law..................................................................................16

     7.4      Audits of Collateral; Fees.....................................................................16

     7.5      Costs and Expenses.............................................................................17

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     7.6      Notices........................................................................................17

     7.7      Further Action.................................................................................17

     7.8      Successors and Assigns; Participation..........................................................17

     7.9      Indulgence.....................................................................................18

     7.10     Amendment and Waiver...........................................................................18

     7.11     Severability...................................................................................18

     7.12     Headings and Construction of Terms.............................................................18

     7.13     Independence of Covenants......................................................................18

     7.14     Reliance on and Survival of Various Provisions.................................................18

     7.15     Effective Upon Execution.......................................................................18

     7.16     Complete Agreement; Conflicts..................................................................19

     7.17     Exhibits and Addenda...........................................................................19

     7.18     Left blank intentionally.......................................................................19

     7.19     WAIVER OF JURY TRIAL...........................................................................19

     7.20     ORAL AGREEMENTS INEFFECTIVE....................................................................19

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ADDENDA:
         Defined Terms Addendum
         Financial Covenants Addendum
         Loan Terms, Conditions and Procedures Addendum

EXHIBITS:
         Exhibit A - Form of Compliance Certificate
         Exhibit B - Form of Borrowing Base Certificate

SCHEDULES:
         Schedule 3.5               Subsidiaries
         Schedule 3.14              Employee Benefit Plans

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         Schedule 3.17              Environmental Disclosures
         Schedule 3.20              Intellectual Property

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                                                                    EXHIBIT 4.7

                                CREDIT AGREEMENT

         THIS CREDIT AGREEMENT (this "AGREEMENT") is made and delivered
effective as of the 16th day of May, 2000, by and between
DIGITALCONVERGENCE.:COM INC., a Delaware corporation ("BORROWER"), and
COMERICA BANK-TEXAS, a Texas banking association ("BANK").

                                    RECITALS

         A.       Borrower desires to obtain certain credit facilities from the
Bank, and the Bank is willing to provide such credit facilities to and in favor
of Borrower.

         B.       Such credit facilities are subject to the terms and conditions
set forth herein and in every other Loan Document.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the premises and the mutual
promises herein contained, Borrower and Bank agree as follows:

SECTION 1.                 DEFINITIONS

         1.1      DEFINED TERMS. The terms as used in this Agreement shall have
the meanings assigned to such terms in the Defined Terms Addendum.

         1.2      ACCOUNTING TERMS. All accounting terms not specifically
defined in this Agreement shall be determined and construed in accordance with
GAAP.

         1.3      SINGULAR AND PLURAL. Where the context herein requires, the
singular number shall be deemed to include the plural, the masculine gender
shall include the feminine and neuter genders, and vice versa.

SECTION 2.                 TERMS, CONDITIONS AND PROCEDURES FOR CREDIT
                           FACILITIES

         Subject to the terms, conditions and procedures of this Agreement and
each other Loan Document including, but not limited to, the terms, conditions
and procedures set forth in the Defined Terms Addendum and Loan Terms,
Conditions and Procedures Addendum, Bank agrees to make credit available to the
Borrower on such dates and in such amounts as the Borrower shall request from
time to time or as may otherwise be agreed to by Borrower and Bank.

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SECTION 3.                 REPRESENTATIONS AND WARRANTIES

         Borrower represents and warrants, and such representations and
warranties shall be deemed to be continuing representations and warranties
during the entire life of this Agreement, and so long as Bank shall have any
commitment or obligation to issue any Letters of Credit hereunder, and so long
as any Indebtedness remains unpaid and outstanding under any Loan Document, as
follows:

         3.1      AUTHORITY. Borrower is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization and is duly qualified and authorized to do business in each other
jurisdiction in which the character of its assets or the nature of its business
makes such qualification necessary.

         3.2      DUE AUTHORIZATION. Each Loan Party has all requisite power and
authority to execute, deliver and perform its obligations under each Loan
Document to which it is a party or is otherwise bound, all of which have been
duly authorized by all necessary action, and are not in contravention of law or
the terms of any Loan Party's organizational or other governing documents.

         3.3      TITLE TO PROPERTY. Each Loan Party has good title to all
property and assets purported to be owned by it, including those assets
identified on the Financial Statements most recently delivered by Borrower to
Bank.

         3.4      ENCUMBRANCES. There are no security interests or other Liens
or encumbrances on, and no financing statements on file with respect to, any of
the property or assets of any Loan Party, except for those previously disclosed
in writing to Bank.

         3.5      SUBSIDIARIES. Borrower has no Subsidiaries, except as set
forth in SCHEDULE 3.5 which Schedule sets forth the percentage of ownership of
Borrower in each such Subsidiary as of the date of this Agreement.

         3.6      TAXES. Each Loan Party has filed, on or before their
respective due dates, all federal, state, local and foreign tax returns which
are required to be filed, or has obtained extensions for filing such tax
returns, and is not delinquent in filing such returns in accordance with such
extensions, and has paid all taxes which have become due pursuant to those
returns or pursuant to any assessments received by any such party, as the case
may be, to the extent such taxes have become due, except to the extent such tax
payments are being actively and diligently contested in good faith by
appropriate proceedings, and if requested by Bank, have been bonded or reserved
in an amount and manner satisfactory to Bank.

         3.7      NO-DEFAULTS. There exists no default (or event which, with the
giving of notice or passage of time, or both, would result in a default) under
the provisions of any instrument or agreement evidencing, governing, securing or
otherwise relating to any Debt of any Loan Party.

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         3.8      ENFORCEABILITY OF AGREEMENT AND LOAN DOCUMENTS. Each Loan
Document has been duly executed and delivered by duly authorized officer(s) or
other representative(s) of each Loan Party, and constitutes the valid and
binding obligations of each Loan Party, enforceable in accordance with their
respective terms, except to the extent that enforcement thereof may be limited
by applicable bankruptcy, reorganization, insolvency, moratorium or similar laws
affecting the enforcement of creditors' rights generally at the time in effect.

         3.9      NON-CONTRAVENTION. The execution, delivery and performance by
each Loan Party of the Loan Documents to which such Loan Party is a party or
otherwise bound, are not in contravention of the terms of any indenture,
agreement or undertaking to which any such Loan Party is a party or by which it
is bound, except to the extent that such terms have been waived of that failure
to comply with any such terms would not have a Material Adverse Effect.

         3.10     ACTIONS, SUITS, LITIGATION OR PROCEEDINGS. There are no
actions, suits, litigation or proceedings, at law or in equity, and no
proceedings before any arbitrator or by or before any Governmental Authority,
pending, or, to the best knowledge of Borrower, threatened against or affecting
any Loan Party, which, if adversely determined, could materially impair the
right of any Loan Party to carry on its business substantially as now conducted
or could have a Material Adverse Effect. No Loan Party is under investigation
by, or is operating under any restrictions imposed by, any Governmental
Authority.

         3.11     COMPLIANCE WITH LAWS. Each Loan Party has complied with all
Governmental Requirements, including, without limitation, Environmental Laws, to
the extent that failure to so comply could have a Material Adverse Effect.

         3.12     CONSENTS, APPROVALS AND FILINGS, ETC. Except as have been
previously obtained or as otherwise expressly provided in this Agreement, no
authorization, consent, approval, license, qualification or formal exemption
from, nor any filing, declaration or registration with, any Governmental
Authority and no material authorization, consent or approval from any other
Person, is required in connection with the execution, delivery and performance
by each Loan Party of any Loan Document to which it is a party. All such
authorizations, consents, approvals, licenses, qualifications, exemptions,
filings, declarations and registrations which have previously been obtained or
made, as the case may be, are in full force and effect and are not the subject
of any attack, or to the knowledge of Borrower, any threatened attack, in any
material respect, by appeal, direct proceeding or otherwise.

         3.13     CONTRACTS, AGREEMENTS AND LEASES. To Borrower's knowledge, no
Loan Party is in default (beyond any applicable period of grace or cure) in
complying with any provision of any material contract, agreement, indenture,
lease or instrument to which it is a party or by which it or any of its
properties or assets are bound, where such default would have a Material Adverse
Effect. To Borrower's knowledge, each such contract, commitment, undertaking,
agreement, indenture and instrument is in full force and effect and is valid and
legally binding.

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         3.14     ERISA. Except as shown on SCHEDULE 3.14, no Loan Party
maintains or contributes to any employee benefit plan subject to Title IV of
ERISA. Furthermore, no Loan Party has incurred any accumulated funding
deficiency within the meaning of ERISA or incurred any liability to the PBGC in
connection with any employee benefit plan established or maintained by such Loan
Party, and no reportable event or prohibited transaction, as defined in ERISA,
has occurred with respect to such plans.

         3.15     NO INVESTMENT COMPANY. No Loan Party is an "investment
company" within the meaning of the Investment Company Act of 1940, as amended,
nor is any Loan Party "controlled" by an "investment company" within the meaning
of the Investment Company Act of 1940, as amended.

         3.16     LEFT BLANK INTENTIONALLY.

         3.17     ENVIRONMENTAL REPRESENTATIONS.

                  (a)      No Loan Party has received any notice of any
                           violation of any Environmental Law(s); and no Loan
                           Party is a party to any litigation or administrative
                           proceeding, nor, so far as is known by Borrower, is
                           any litigation or administrative proceeding
                           threatened against any Loan Party which, in any case,
                           (i) asserts or alleges that any Loan Party violated
                           any Environmental Law(s), (ii) asserts or alleges
                           that any Loan Party is required to clean up, remove
                           or take any other remedial or response action due to
                           the disposal, depositing, discharge, leaking or other
                           release of any Hazardous Materials, or (iii) asserts
                           or alleges that any Loan Party is required to pay all
                           or a portion of any past, present or future clean-up,
                           removal or other remedial or response action which
                           arises out of or is related to the disposal,
                           depositing, discharge, leaking or other release of
                           any Hazardous Materials by any Loan Party, and which,
                           either singularly or in the aggregate, could have a
                           Material Adverse Effect.

                  (b)      To Borrower's knowledge, there are no conditions
                           existing currently which could subject any Loan Party
                           to damages, penalties, injunctive relief or clean-up
                           costs under any applicable Environmental Law(s), or
                           which require, or are likely to require, clean-up,
                           removal, remedial action or other response pursuant
                           to any applicable Environmental Law(s) by any Loan
                           Party, and which, in any case, either singularly or
                           in aggregate, could have a Material Adverse Effect.

                  (c)      No Loan Party is subject to any judgment, decree,
                           order or citation related to or arising out of any
                           applicable Environmental Law(s), which, either
                           singularly or in the aggregate, could have a Material
                           Adverse Effect; and, to Borrower's knowledge, no Loan
                           Party has been named or listed as a

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                           potentially responsible party by any Governmental
                           Authority in any matter arising under any applicable
                           Environmental Law(s), except as disclosed in SCHEDULE
                           3.17, and, in the event that any such matters are
                           disclosed in said SCHEDULE 3.17 they will not, either
                           singularly or in the aggregate, have a Material
                           Adverse Effect.

                  (d)      Each Loan Party has all permits, licenses and
                           approvals required under applicable Environmental
                           Laws, where the failure to so obtain or maintain any
                           such permits, licenses or approvals could have a
                           Material Adverse Effect.

         3.18     ACCURACY OF INFORMATION. The Financial Statements previously
furnished to Bank have been prepared in accordance with GAAP and fairly present
the financial condition of Borrower and, as applicable, the consolidated
financial condition of Borrower and such other Person(s) as such Financial
Statements purport to present, and the results of their respective operations as
of the dates and for the periods covered thereby; and since the date(s) of said
Financial Statements, there has been no material adverse change in the financial
condition of Borrower or any other Person covered by such Financial Statements.
No Loan Party, nor any such other Person has any material contingent
obligations, liabilities for taxes, long-term leases or long-term commitments
not disclosed by, or reserved against in, such Financial Statements. Each Loan
Party is solvent, able to pay its respective debts as they mature, has capital
sufficient to carry on its business and has assets the fair market value of
which exceed its liabilities, and no Loan Party will be rendered insolvent,
under-capitalized or unable to pay debts generally as they become due by the
execution or performance of any Loan Document to which it is a party or by which
it is otherwise bound.

         3.19     LEFT BLANK INTENTIONALLY.

         3.20     INTELLECTUAL PROPERTY. Borrower and each Loan Party own or
have rights to use all Intellectual Property necessary to continue to conduct
their respective businesses as now or heretofore conducted or proposed to be
conducted, and each patent, trademark, copyright and license held by Borrower or
such other Loan Party is listed, together with application or registration,
numbers, as applicable, on SCHEDULE 3.20.

SECTION 4.                 AFFIRMATIVE COVENANTS

         Borrower covenants and agrees that, so long as Bank is committed to
issue any Letter of Credit under this Agreement, and until all instruments and
agreements evidencing any Loan which is payable on demand or which conditions
advances upon the Bank's discretion are fully discharge and terminated, and
thereafter, so long as any Indebtedness remains outstanding, it will, and, as
applicable, it will cause each Loan Party within its control or under common
control to:

         4.1      PRESERVATION OF EXISTENCE, ETC. Preserve and maintain its
existence and preserve and maintain such of its rights, licenses, and privileges
as are material to the business and operations conducted by it; qualify and
remain qualified to do business in each jurisdiction in which such

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qualification is material to its business and operations or ownership of its
properties, continue to conduct and operate its business substantially as
conducted and operated during the present and preceding calendar year; at all
times maintain, preserve and protect all of its franchises and trade names and
preserve all the remainder of its property and keep the same in good repair,
working order and condition; and from time to time make, or cause to be made,
all needed and proper repairs, renewals, replacements, betterments and
improvements thereto.

         4.2      KEEPING OF BOOKS. Keep proper books of record and account in
which full and correct entries shall be made of all of its financial
transactions and its assets and businesses so as to permit the presentation of
financial statements (including, without limitation, those Financial Statements
to be delivered to Bank pursuant SECTION 4.3 hereof) prepared in accordance with
GAAP; and permit Bank, or its representatives, at reasonable times and
intervals, at Borrower's cost and expense, to visit any office of any Loan
Party, discuss its financial matters with its officers, employees and
independent certified public accountants, and by this provision, Borrower
authorizes such officers, employees and accountants to discuss the finances and
affairs of any Loan Party and to examine any of its books and other corporate
records.

         4.3      REPORTING REQUIREMENTS. Furnish to Bank, or cause to be
furnished to Bank, the following:

                  (a)      as soon as possible, and in any event within three
                           (3) calendar days after becoming aware of the
                           occurrence or existence of each Default or Event of
                           Default hereunder or any material adverse change in
                           the financial condition of any Loan Party, a written
                           statement of the chief financial officer of Borrower
                           (or in his or her absence, a responsible senior
                           officer of Borrower), setting forth details of such
                           Default, Event of Default or change, and the action
                           which Borrower has taken, or has caused to be taken,
                           or proposes to take, or to cause to be taken, with
                           respect thereto;

                  (b)      as soon as available, and in any event within
                           ninety (90) days after and as of the end of each
                           fiscal year of Borrower, audited Financial
                           Statements of Borrower and such other of the Loan
                           Parties as may be required by the Bank,
                           consolidated, as applicable, including a balance
                           sheet, income statement, statement of profit and
                           loss, surplus reconciliation statement and
                           statement of cash flows, for and as of such fiscal
                           year then ending, with comparative numbers for the
                           preceding fiscal year, and such other comments and
                           financial details as are usually included in
                           similar reports. Such audited Financial Statements
                           shall be prepared in accordance with GAAP by
                           independent certified public accountants of
                           recognized standing selected by Borrower and
                           approved by Bank and shall contain unqualified
                           opinions as to the fairness of the statements
                           therein contained.

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                  (c)      as soon as available, and in any event within thirty
                           (30) days after and as of the end of each calendar
                           month, including the last such reporting period of
                           each of Borrower's fiscal years, balance sheets and
                           income statements of Borrower and such of the other
                           Loan Parties as may be required by the Bank,
                           consolidated, as applicable, for and as of such
                           reporting period then ending and for and as of that
                           portion of the fiscal year then ending, with
                           comparative numbers for the same period of the
                           preceding fiscal year, in each case, certified by the
                           chief financial officer of Borrower and, as
                           applicable, each other Loan Party as to consistency
                           with prior financial reports and accounting periods,
                           accuracy and fairness of presentation;

                  (d)      promptly upon the request of the Bank, agings and
                           reports of accounts receivable of Borrower and such
                           of the Loan Parties as may be required by the Bank,
                           in form and detail satisfactory to Bank;

                  (e)      promptly upon the request of the Bank, agings and
                           reports of accounts payable of Borrower and such of
                           the other Loan Parties as may be required by the
                           Bank, in form and detail satisfactory to Bank;

                  (f)      simultaneously with any request by Borrower from time
                           to time that a Letter of Credit be issued pursuant to
                           the terms of this Agreement, a Borrowing Base
                           Certificate dated as of the date of such request for
                           issuance of a Letter of Credit;

                  (g)      promptly upon receipt thereof, copies of all
                           management letters and other substantive reports
                           submitted to any Loan Party by independent certified
                           public accountants in connection with any annual
                           audit of any such party;

                  (h)      within thirty (30) days after the end of each
                           calendar quarter, a Compliance Certificate dated as
                           of the end of such calendar quarter.

                  (i)      promptly after filing the same, a copy of Borrower's
                           annual federal income tax return; and

                  (j)      as soon as available, but in no event more than forty
                           (45) days after the end of each fiscal quarter, a
                           copy of Borrower's Form 10-Q as filed with the United
                           States Securities and Exchange Commission (the "Form
                           10-Q"); provided that Borrower shall not be required
                           to provide the Bank with a copy of the initial Form
                           10-Q until such time as Borrower is first required by
                           applicable law to file the same; and

                  (k)      promptly, and in form and detail reasonably
                           satisfactory to Bank, such other Information as Bank
                           may reasonably request from time to time.

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         4.4      FINANCIAL COVENANTS. Borrower will maintain all financial
covenants set forth in the Financial Covenants Addendum.

         4.5      INSPECTIONS. Permit Bank, through its authorized attorneys,
accountants and representatives, at Borrower's cost and expense, to examine each
Loan Party's books, accounts, records, ledgers, assets and properties of every
kind and description, wherever located, at all reasonable times during normal
business hours, upon oral or written request of Bank.

         4.6      FURTHER ASSURANCES; FINANCING STATEMENTS. Furnish Bank, at
Borrower's expense, upon Bank's request and in form satisfactory to Bank (and
execute and deliver or cause to be executed and delivered), such additional
pledges, assignments, lien instruments or other security instruments, consents,
acknowledgments, subordinations and financing statements covering any or all of
the Collateral pledged, assigned or encumbered pursuant to any Loan Document, of
every nature and description, whether now owned or hereafter acquired by
Borrower or any other Person providing such Collateral, together with such other
documents or instruments as Bank may require to effectuate more fully the
purposes of any Loan Document.

         4.7      FUNDS USED TO PROVIDE COLLATERAL. Use funds to obtain Comerica
Bank-Texas certificates of deposit, which certificates of deposit are to be
provided to Bank as Collateral for the issuance of any Letter of Credit
hereunder, which are: (i) not be subject to the prior Lien of any Person other
than Bank, (ii) obtained solely from the proceeds of sale by Borrower of equity
interests in Borrower, which proceeds of sale shall have been deposited in
Comerica Bank-Texas Custodial Account No. 43-01-100-0569808. Promptly upon the
request of the Bank, the Borrower shall provide to Bank such documentation and
other evidence satisfactory to Bank that such funds comply with this Section
4.7.

         4.8      INDEMNIFICATION. Indemnify, defend and save Bank harmless from
any and all claims, losses, costs, damages, liabilities, obligations and
expenses, including, without limitation, reasonable attorneys' fees (whether
inside or outside counsel is used), incurred by Bank by reason of any Default or
Event of Default, in defending or protecting the Liens which secure or purport
to secure all or any portion of the Indebtedness, whether existing under any
Loan Document or otherwise or the priority thereof, or in enforcing the
obligations of Borrower or any other Person under or pursuant to any Loan
Document, or in the prosecution or defense of any action proceeding concerning
any matter growing out of or connected with the Collateral or any Loan Document,
INCLUDING ANY CLAIMS, LOSES, COSTS, DAMAGES, LIABILITIES, OBLIGATIONS, AND
EXPENSES RESULTING FROM BANK'S OWN NEGLIGENCE, except and to the extent but only
to the extent caused by Bank's gross negligence or willful misconduct.

         4.9      GOVERNMENTAL AND OTHER APPROVALS. Apply for, obtain and/or
maintain in effect, as applicable, all authorizations, consents, approvals,
licenses, qualifications, exemptions, filings, declarations and registrations
(whether with any court, governmental agency, regulatory authority, securities
exchange or otherwise) which are necessary in connection with the execution,
delivery and/or performance by any Loan Party of any Loan Document to which it
is a party.

                                        8
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         4.10     INSURANCE. Maintain insurance coverage on its physical assets
and against other business risks in such amounts and of such types as are
customarily carried by companies similar in size and nature (including, without
limitation, loss of rent and/or business interruption insurance and boiler and
machinery insurance), and in the event of acquisition of additional property,
real or personal, or of the incurrence of additional risks of any nature,
increase such insurance coverage in such manner and to such extent as prudent
business judgment and present practice would dictate; and in the case of all
policies covering property subject to any Loan Document or property in which the
Bank shall have a Lien of any kind whatsoever, other than those policies
protecting against casualty liabilities to strangers, all such insurance
policies shall provide that the loss payable thereunder shall be payable to
Borrower (or other Person providing Collateral), and such policies shall also
provide that they may not be canceled or changed without thirty (30) days' prior
written notice to Bank. Upon the request of Bank, all of said policies, or
copies thereof, including all endorsements thereon and those required hereunder,
shall be deposited with Bank.

         4.11     COMPLIANCE WITH ERISA. In the event that any Loan Party or any
of its Subsidiaries maintain(s) or establish(es) a Pension Plan subject to
ERISA, (a) comply in all material respects with all requirements imposed by
ERISA as presently in effect or hereafter promulgated, including, but not
limited to, the minimum funding requirements thereof; (b) promptly notify Bank
upon the occurrence of a "reportable event" or "prohibited transaction" within
the meaning of ERISA, or that the PBGC or any Loan Party has instituted or will
institute proceedings to terminate any Pension Plan, together with a copy of any
proposed notice of such event which may be required to be filed with the PBGC;
and (c) furnish to Bank (or cause the plan administrator to furnish Bank) a copy
of the annual return (including all schedules and attachments) for each Pension
Plan covered by ERISA, and filed with the Internal Revenue Service by any Loan
Party not later than thirty (30) days after such report has been so filed.

         4.12     ENVIRONMENTAL COVENANTS.

                  (a)      Comply with all applicable Environmental Laws, and
                           maintain all permits, licenses and approvals required
                           under applicable Environmental Laws, where the
                           failure to do so could have a Material Adverse
                           Effect.

                  (b)      Promptly notify Bank, in writing, as soon as Borrower
                           becomes aware of any condition or circumstance which
                           makes any of the environmental representations or
                           warranties set forth in this Agreement incomplete,
                           incorrect or inaccurate in any material respect as of
                           any date; and promptly provide to Bank, immediately
                           upon receipt thereof, copies of any material
                           correspondence, notice, pleading, citation,
                           indictment, complaint, order, decree, or other
                           document from any source asserting or alleging a
                           violation of any Environmental Laws by any Loan
                           Party, or of any circumstance or condition which
                           requires or may require, a financial contribution by
                           any Loan Party, or a clean-up, removal, remedial
                           action or other response by or on behalf of any Loan
                           Party, under applicable Environmental Law(s), or
                           which

                                        9
<PAGE>

                           seeks damages or civil, criminal or punitive
                           penalties from any Loan Party or any violation or
                           alleged violation of Environmental Law(s).

                  (c)      Borrower hereby agrees to indemnify, defend and hold
                           Bank, and any of Bank's past, present and future
                           officers, directors, shareholders, employees,
                           representatives and consultants, harmless from any
                           and all claims, losses, damages, suits, penalties,
                           costs, liabilities, obligations and expenses
                           (including, without limitation, reasonable legal
                           expenses and attorneys' fees, whether inside or
                           outside counsel is used) incurred or arising out of
                           any claim, loss or damage of any property, injuries
                           to or death of any persons, contamination of or
                           adverse effects on the environment, or other
                           violation of any applicable Environmental Law(s), in
                           any case, caused by any Loan Party or in any way
                           related to any property owned or operated by any Loan
                           Party or due to any acts of any Loan Party or any of
                           its officers, directors, shareholders, employees,
                           consultants and/or representatives INCLUDING ANY
                           CLAIMS, LOSSES, DAMAGES, SUITS, PENALTIES, COSTS,
                           LIABILITIES, OBLIGATIONS OR EXPENSES, RESULTING FROM
                           BANK'S OWN NEGLIGENCE; provided however, that the
                           foregoing indemnification shall not be applicable,
                           and Borrower shall not be liable for any such claims,
                           losses, damages, suits, penalties, costs,
                           liabilities, obligations or expenses, to the extent
                           (but only to the extent) the same arise or result
                           from any gross negligence or willful misconduct of
                           Bank or any of its agents or employees.

         4.13     PRIOR NOTICE OF ENCUMBRANCES. Provide Bank with prior written
notice of any Encumbrance on the property or assets of Borrower or any Loan
Party.

         4.14     REGISTRATION OF INTELLECTUAL PROPERTY RIGHTS. Borrower and
each other Loan Party shall register or cause to be registered (to the extent
not already registered) with the United States Patent and Trademark Office or
the United States Copyright Office, as applicable, those Intellectual Property
rights listed in SCHEDULE 3.20 to this Agreement or in any security agreement
now or hereafter securing or purporting to secure any of the Indebtedness within
thirty (30) days of the date of such agreement. Borrower and each other Loan
Party shall register or cause to be registered with the United States Patent and
Trademark Office or the United States Copyright Office, as applicable, those
additional Intellectual Property rights developed or acquired by Borrower or
such other Loan Party from time to time prior to the sale or licensing of such
product to any third party including, without limitation, revisions or additions
to the Intellectual Property rights listed in SCHEDULE 3.20 to this Agreement or
in any agreement now or hereafter securing or purporting to secure any of the
Indebtedness.

                  (a)      Left blank intentionally.

                                       10

<PAGE>

                  (b)      Borrower and each other Loans Party shall (i)
                           protect, defend and maintain the validity and
                           enforceability of all trademarks, patents and
                           copyrights and other Intellectual Property now or
                           hereafter securing or purporting to secure any of the
                           Indebtedness, (ii) use commercially reasonable
                           efforts to detect infringements of the same and
                           promptly advise Bank in writing of material
                           infringements detected and not allow any of the same
                           to be abandoned, forfeited or dedicated to the
                           public.

                  (c)      Left blank intentionally.

         4.15     INTELLECTUAL PROPERTY. Borrower and each Loan Party will
conduct their respective businesses and affairs without infringement of or
interference with any Intellectual Property of any other Person.

SECTION 5.                 NEGATIVE COVENANTS

         Borrower covenants and agrees that, so long as Bank is committed to
issue any Letter of Credit under this Agreement, and thereafter, so long as any
Indebtedness remains outstanding, it will not, and it will not allow any Loan
Party within its control or under common control to, without the
prior written consent of the Bank:

         5.1      CAPITAL STRUCTURE, BUSINESS OBJECTS OR PURPOSE. Purchase,
acquire or redeem any of its equity ownership interests, or enter into any
reorganization or recapitalization or reclassify its equity ownership interests,
or make any material change in its capital structure or general business objects
or purpose; PROVIDED, HOWEVER, that Borrower shall (i) be permitted to receive
capital contributions (not loans) from investors, (ii) be permitted to establish
a holding company which may own 100% of the issued and outstanding shares of
Borrower, provided, however, that the property and assets of Borrower may not be
transferred to such holding company, and (iii) be permitted to proceed with the
initial public offering of stock pursuant to the terms of that certain
registration statement of Borrower dated April 28, 2000 and filed with the
United States Securities and Exchange Commission.

         5.2      MERGERS OR DISPOSITIONS. Change its name, enter into any
merger or consolidation, or sell, lease, transfer, relocate or dispose of all,
substantially all, or any material part of its assets (whether in a single
transaction or in a series of transactions), PROVIDED, HOWEVER, that Borrower
may enter into a merger or consolidation without the prior approval of Bank if
as a result of such merger: (i) Borrower is the surviving entity, (ii) The
majority of the management of Borrower immediately prior to such merger or
consolidation shall be the management of the surviving entity, and the Borrower
is not in violation of any covenant contained in this Agreement or the Loan
Documents at the time of such merger or consolidation, nor projected to be in
violation of any covenant following the consummation of such merger or
consolidation. Borrower shall promptly notify Bank of such merger or
consolidation upon consummation of the same.

                                       11
<PAGE>

         5.3      COMERICA BANK TRUST ACCOUNT. Permit funds from its operations
or any source other than the sale of equity interests in Borrower to be
deposited in Comerica Bank-Texas Custodial Account No. 43-01-100-0569808 (the
"Trust Account"), which Trust Account shall be the sole source of funds for
obtaining the certificates of deposit which are to be provided to Bank as
Collateral hereunder. Promptly upon the request of the Bank, Borrower shall
provide to Bank such documentation and other evidence satisfactory to Bank that
the funds on deposit in the Trust Account originate solely from the sale of
equity interests in Borrower.

         5.4      ACQUISITIONS. Purchase or otherwise acquire or become
obligated for the purchase of all or substantially all of the assets or business
interests of any Person or any shares of stock or other ownership interests of
any Person or in any other manner effectuate or attempt to effectuate an
expansion of present business by acquisition, PROVIDED, HOWEVER, that Borrower
may purchase or otherwise acquire or become obligated for the purchase of all or
substantially all of the assets or business interests of any Person or any
shares of stock or other ownership interests of any Person or in any other
manner effectuate or attempt to effectuate an expansion of present business by
acquisition without the prior approval of Bank if as a result of such
transaction: (i) Borrower is the surviving entity, (ii) the majority of the
management of Borrower immediately prior to such transaction shall be the
management of the surviving entity, and (iii) Borrower is not in violation of
any covenant contained in this Agreement or the Loan Documents at the time of
the transaction, nor projected to be in violation of any covenant following the
consummation of such transaction. Borrower shall promptly notify Bank of such
transaction upon consummation of the same.

         5.5      DEFAULTS ON OTHER OBLIGATIONS. Fail to perform, observe or
comply duly with any covenant, agreement or other obligation to be performed,
observed or complied with by any Loan Party, subject to any grace periods
provided therein, which failure could have a Material Adverse Effect.

         5.6      NO FURTHER NEGATIVE PLEDGES. Enter info or become subject to
any agreement (other than this Agreement or the Loan Documents) (a) prohibiting
the guaranteeing by any Loan Party of any obligations, (b) prohibiting the
creation or assumption of any Lien upon the properties or assets of any Loan
Party, whether now owned or hereafter acquired or (c) requiring an obligation to
become secured (or further secured) if another obligation is secured or further
secured.

SECTION 6.                 EVENTS OF DEFAULT

         6.1      EVENTS OF DEFAULT. The occurrence or existence of any of the
following conditions or events shall constitute an "Event of Default" hereunder:

                  (a)      upon non-payment of any principal, interest or other
                           sums due under the terms of this Agreement, or under
                           any other instrument or evidence of Indebtedness,
                           whether under this Agreement, or otherwise, in any
                           case, when due in accordance with the terms hereof or
                           thereof;

                                                        12
<PAGE>

                  (b)      default in the observance or performance of any of
                           the other conditions, covenants or agreements of
                           Borrower set forth in this Agreement;

                  (c)      any representation or warranty made by any Loan Party
                           in any Loan Document shall be untrue or incorrect in
                           any material respect;

                  (d)      any default or event of default, as the case may be,
                           in the observance or performance of any of the
                           conditions, covenants or agreements of any Loan Party
                           set forth in any Loan Document and continuation
                           thereof beyond any applicable period of grace or cure
                           provided with respect thereto;

                  (e)      any default by any Loan Party, in the payment of any
                           Debt (other than Debt owing to Bank), or in the
                           observance or performance of any conditions,
                           covenants or agreements related or given with respect
                           thereto and, in each such case, continuation thereof
                           beyond any applicable grace or cure period;

                  (f)      the rendering of one or more judgments or decrees for
                           the payment of money, against any Loan Party, and
                           such judgment(s) or decree(s) shall remain unvacated,
                           unbonded or unstayed, by appeal or otherwise, for
                           period of sixty (60) consecutive days after the date
                           of entry;

                  (g)      if there shall be any change in the management,
                           ownership or control of Borrower, whether by reason
                           of incapacity, death, resignation, termination or
                           otherwise, which, in Bank's sole judgment, shall have
                           a material adverse effect upon the future prospects
                           for the successful operation by Borrower, of its
                           businesses as conducted before such change, or its
                           ability to pay and perform its liabilities and
                           obligations under this Agreement, the Indebtedness,
                           or the Loan Documents;

                  (h)      the failure by any Loan Party, to meet the minimum
                           funding requirements under ERISA with respect to any
                           Pension Plan established or maintained by it; the
                           occurrence of any "reportable event", as defined in
                           ERISA, which could constitute grounds for termination
                           by the PBGC of any Pension Plan or for the
                           appointment by the appropriate United States District
                           Court of a trustee to administer such Pension Plan,
                           and such reportable event is not corrected and such
                           determination is not revoked within thirty (30) days
                           after notice thereof has been given to the plan
                           administrator or any Loan Party, as the case may be;
                           or the institution of any proceedings by the PBGC to
                           terminate any such Pension Plan or to appoint a
                           trustee by the appropriate United States District
                           Court to administer any such Pension Plan;

                  (i)      if any Loan Party, becomes insolvent or generally
                           fails to pay, or admits in writing its inability to
                           pay, its debts as they mature, or applies for,
                           consents

                                       13
<PAGE>

                           to, or acquiesces in the appointment of a trustee,
                           receiver, liquidator, conservator or other custodian
                           for any Loan Party, or a substantial part of its
                           property, or makes a general assignment for the
                           benefit of creditors; or in the absence of such
                           application, consent or acquiescence, a trustee,
                           receiver, liquidator, conservator or other custodian
                           is appointed for any Loan Party, or for a substantial
                           part of its property, and the same is not discharged
                           within thirty (30) days; or any bankruptcy,
                           reorganization, debt arrangement, or other
                           proceedings under any bankruptcy or insolvency law,
                           or any dissolution or liquidation proceeding, is
                           instituted by or against any Loan Party, and, if
                           instituted against any Loan Party, the same is
                           consented to or acquiesced in by any such Loan Party
                           or otherwise remains undismissed for thirty (30)
                           days; or any warrant of attachment is issued against
                           any substantial part of the property of any Loan
                           Party, which is not released within thirty (30) days
                           of service thereof; or

                  (j)      if any Loan Document shall be terminated, revoked, or
                           otherwise rendered void or unenforceable, in any
                           case, without Bank's prior written consent.

         6.2      REMEDIES UPON EVENT OF DEFAULT. At any time during the
existence of any Event of Default as it is defined in Section 6.1(b) or Section
6.1(d), which default remains uncured for a period of five (5) business days, or
upon the occurrence and at any time during the existence or continuance of any
other Event of Default, but in either occurrence without impairing or otherwise
limiting the Bank's right to demand payment of all or any portion of the
Indebtedness which is payable on demand, at Bank's option, Bank may give notice
to Borrower declaring all or any portion of the Indebtedness remaining unpaid
and outstanding, to be due and payable in full without presentation, demand,
protest, notice of dishonor, notice of intent to accelerate, notice of
acceleration or other notice of any kind, all of which are hereby expressly
waived, whereupon all such Indebtedness shall immediately become due and
payable. Furthermore, upon the occurrence of a Default or Event of Default and
at any time during the existence or continuance of any Default or Event of
Default, but without impairing or otherwise limiting the right of Bank, if
reserved under any Loan Document, to make or withhold financial accommodations
at its discretion, to the extent not yet disbursed, any commitment by Bank to
issue any further Letters of Credit for Borrower's account under this Agreement
shall automatically terminate; provided, should such Default or Event of Default
be cured to Bank's satisfaction, Bank may, but shall be under no obligation to,
reinstate any such commitment by written notice to Borrower. Notwithstanding the
foregoing, in the case of an Event of Default under Section 6.1(i), and
notwithstanding the lack of any notice, demand or declaration by Bank, the
entire Indebtedness remaining unpaid and outstanding shall become automatically
due and payable in full, and any commitment by Bank to issue any further Letters
of Credit for Borrower's account shall be automatically and immediately
terminated, without any requirement of notice or demand by Bank upon Borrower,
each of which are hereby expressly waived by Borrower. The foregoing rights and
remedies are in addition to any other rights, remedies and privileges Bank may
otherwise have or which may be available to it, whether under this Agreement,
any other Loan Document, by law, or otherwise.

                                       14
<PAGE>

         6.3      SETOFF. In addition to any other rights or remedies of Bank
under any Loan Document, by law or otherwise, upon the occurrence and during the
continuance or existence of any Event of Default, Bank may, at any time and from
time to time, without notice to Borrower (any requirements for such notice being
expressly waived by Borrower), setoff and apply against any or all of the
Indebtedness (whether or not then due), any or all deposits (general or special,
time or demand, provisional or final) at any time held by Borrower and other
indebtedness at any time owing by Bank to or for the credit or for the account
of Borrower, and any property of Borrower from time to time in possession or
control of Bank, irrespective of whether or not Bank shall have made any demand
hereunder or for payment of the Indebtedness and although such obligations ma be
contingent or unmatured, and regardless of whether any Collateral then held by
Bank is adequate to cover the Indebtedness. The rights of Bank under this
Section are in addition to any other rights and remedies (including, without
limitation, other rights of setoff) which Bank may otherwise have. Borrower
hereby grants Bank a Lien on and security interest in all such deposits
indebtedness and other property as additional collateral for the payment and
performance of the Indebtedness.

         6.4      WAIVER OF CERTAIN LAWS. To the extent permitted by applicable
law, Borrower hereby agrees to waive, and does hereby absolutely and irrevocably
waive and relinquish, the benefit and advantage of any valuation, stay,
appraisement, extension or redemption laws now existing or which may hereafter
exist, which, but for this provision, might be applicable to any sale made under
the judgment, order or decree of any court, on any claim to any security
interest or other Lien contemplated by or granted under or in connection with
this Agreement or the Indebtedness.

         6.5      WAIVER OF DEFAULTS. No Default or Event of Default shall be
waived by Bank except in a written instrument specifying the scope and terms of
such waiver and signed by an authorized officer of Bank, and such waiver shall
be effective only for the specific time(s) and purpose(s) given. No single or
partial exercise of any right, power or privilege hereunder, nor any delay in
the exercise thereof, shall preclude other or further exercise of Bank's rights.
No waiver of any Default or Event of Default shall extend to any other or
further Default or Event of Default. No forbearance on the part of Bank in
enforcing any of Bank's rights or remedies under any Loan Document shall
constitute a waiver of any of its rights or remedies. Borrower expressly agrees
that this Section may not be waived or modified by Bank by course of
performance, estoppel or otherwise.

         6.6      RECEIVER. Bank, in any action or suit to foreclose upon any of
the Collateral, shall be entitled, without notice or consent, and completely
without regard to the adequacy of any security for the Indebtedness, to the
appointment of a receiver of the business and premises in question, and of the
rents and profits derived therefrom. This appointment shall be in addition to
any other rights, relief or remedies afforded Bank. Such receiver, in addition
to any other rights to which he shall be entitled, shall be authorized to sell,
foreclose or complete foreclosure on Collateral for the benefit of Bank,
pursuant to provisions of applicable law.

         6.7      DISCRETIONARY CREDIT AND CREDIT PAYABLE UPON DEMAND. To the
extent that any of the Indebtedness shall, at anytime, be payable upon demand,
nothing contained in this Agreement, or any other Loan Document, shall be
construed to prevent Bank from making demand, without notice

                                       15
<PAGE>

and with or without reason, for immediate payment of all or any part of such
Indebtedness at any time or times, whether or not a Default or Event of Default
has occurred or exists. In the event that such demand is made upon any portion
of the Indebtedness, the Bank, at its election, may terminate any commitment by
Bank to issue any further Letters of Credit for Borrower's account under this
Agreement or otherwise. Furthermore, to the extent any Loan Document authorizes
the Bank, at its discretion, to make or to decline to make financial
accommodations to the Borrower, nothing contained in this Agreement or any other
Loan Document shall be construed to limit or impair such discretion or to commit
or otherwise obligate the Bank to make any such financial accommodation.

         6.8      APPLICATION OF PROCEEDS OF COLLATERAL. Notwithstanding
anything to the contrary set forth in any Loan Document, after an Event of
Default, the proceeds of any of the Collateral, together with any offsets,
voluntary payments, and any other sums received or collected in respect of the
Indebtedness, may be applied in such order and manner as determined by Bank in
its sole and absolute discretion.

SECTION 7.                 MISCELLANEOUS

         7.1      ACCOUNTING PRINCIPLES. Except to the extent expressly stated
to the contrary herein, where the character or amount of any asset or liability
or item of income or expense is required to be determined, or any consolidation
or other accounting computation is required to be made for purposes of this
Agreement, it shall be done in accordance with GAAP, and all accounting terms
not specifically defined in this Agreement shall be construed in accordance with
GAAP.

         7.2      TAXES AND FEES. Unless otherwise prohibited by applicable law,
should any tax (other than a tax based upon the net income of Bank,) or
recording or filing fee become payable in respect of any Loan Document, any of
the Collateral, any of the Indebtedness or any amendment, modification or
supplement hereof or thereof, Borrower agrees to pay such taxes (or reimburse
Bank therefor upon demand for reimbursement), together with any interest or
penalties thereon, and agrees to hold Bank harmless with respect thereto.

         7.3      GOVERNING LAW. Each Loan Document shall be deemed to have been
delivered in the State of Texas, and shall be governed by and construed and
enforced in accordance with the laws of the State of Texas, except to the extent
that the Uniform Commercial Code, other personal property law or real property
law of another jurisdiction where Collateral is located is applicable, and
except to the extent expressed to the contrary in any Loan Document. Whenever
possible, each provision of this Agreement shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Agreement shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.

         7.4      AUDITS OF COLLATERAL; FEES. Bank shall have the right from
time to time to audit Collateral pledged by any Loan Party, provided that such
audits will be conducted no more than one (1) time(s) in any fiscal year unless
an Event of Default has occurred. Borrower agrees to reimburse

                                       16
<PAGE>

Bank, on demand, for customary and reasonable fees and costs incurred by Bank
for such audits and for each appraisal of Collateral and financial analysis and
examination of Borrower or any other
Loan Party performed from time to time.

         7.5      COSTS AND EXPENSES. Borrower shall pay Bank, on demand, all
costs and expenses, including, without limitation, reasonable attorneys' fees
and legal expenses (whether inside or outside counsel is used), incurred by Bank
in perfecting, revising, protecting or enforcing any of its rights or remedies
against any Loan Party or any Collateral, or otherwise incurred by Bank in
connection with any Default or Event of Default or the enforcement of the Loan
Documents or the Indebtedness. Following Bank's demand upon Borrower for the
payment of any such costs and expenses, and until the same are paid in full, the
unpaid amount of such costs and expenses shall constitute Indebtedness and shall
bear interest at the Default Rate.

         7.6      NOTICES. All notices and other communications provided for in
any Loan Document (unless otherwise expressly stipulated therein) ox
contemplated thereby, given thereunder or required by law to be given, shall be
in writing (unless expressly provided to the contrary). If personally delivered,
such notices shall be effective when delivered, and in the case of mailing or
delivery by overnight courier, such notices shall be effective when placed in an
envelope and deposited at a post office or official depository under the
exclusive care and custody of the United States Postal Service or delivered to
an overnight courier, postage prepaid, in each case addressed to the parties as
set forth on the signature page of this Agreement, or to such other address as a
party shall have designated to the other in writing in accordance with this
Section. In the case of mailing, the mailing shall be by certified or first
class mail. The giving of at least five (5) days' notice before Bank shall take
any action described in any notice shall conclusively be deemed reasonable for
all purposes; provided, that this shall not be deemed to require Bank to give
such five (5) days' notice, or any notice, if not specifically required to do so
in this Agreement.

         7.7      FURTHER ACTION. Borrower, from time to time, upon written
request of Bank, will promptly make, execute, acknowledge and deliver, or cause
to be made, executed, acknowledged and delivered, all such further and
additional instruments, and promptly take all such further action as may be
reasonably required to carry out the intent and purpose of the Loan Documents,
and to provide for the Letters of Credit thereunder, according to the intent and
purpose therein expressed.

         7.8      SUCCESSORS AND ASSIGNS; PARTICIPATION. This Agreement shall be
binding upon and shall inure to the benefit of Borrower and Bank and their
respective successors and assigns. The foregoing shall not authorize any
assignment or transfer by Borrower, of any of its respective rights, duties or
obligations hereunder, such assignments or transfers being expressly prohibited.
Bank, however, may freely assign, whether by assignment, participation or
otherwise, its rights and obligations hereunder, and is hereby authorized to
disclose to any such assignee or participant (or proposed assignee or
participant) any financial or other information in its knowledge or possession
regarding any Loan Party or the Indebtedness.

                                       17
<PAGE>

         7.9      INDULGENCE. No delay or failure of Bank in exercising any
right, power or privilege hereunder or under any of the Loan Documents shall
affect such right, power or privilege, nor shall any single or partial exercise
thereof preclude any further exercise thereof, nor the exercise of any other
right, power or privilege available to Bank. The rights and remedies of Bank
hereunder are cumulative and are not exclusive of any rights or remedies of
Bank.

         7.10     AMENDMENT AND WAIVER. No amendment or waiver of any provision
of any Loan Document, nor consent to any departure by any Loan Party therefrom,
shall in any event be effective unless the same shall be in writing and signed
by Bank, and then such waiver or consent shall be effective only in the specific
instance(s) and for the specific time(s) and purpose(s) for which given.

         7.11     SEVERABILITY. In case any one or more of the obligations of
any Loan Party under any Loan Document shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of
the remaining obligations of such Loan Party shall not in any way be affected or
impaired thereby, and such invalidity, illegally or unenforceability in one
jurisdiction shall not affect the validity, legality or enforceability of the
obligations of such Loan Party under any Loan Document in any other
jurisdiction.

         7.12     HEADINGS AND CONSTRUCTION OF TERMS. The headings of the
various sub-Sections hereof are for convenience of reference only and shall in
no way modify or affect any of the terms or provisions hereof. Where the context
herein requires, the singular number shall include the plural, and any gender
shall include any other gender.

         7.13     INDEPENDENCE OF COVENANTS. Each covenant hereunder shall be
given independent effect so that if a particular action or condition is not
permitted by any such covenant, the fact that it would be permitted by an
exception to, or would be otherwise within the limitations of, another covenant
shall not avoid the occurrence of any Default or Event of Default.

         7.14     RELIANCE ON AND SURVIVAL OF VARIOUS PROVISIONS. All terms,
covenants, agreements, representations and warranties of any Loan Party made in
any Loan Document, or in any certificate, report, financial statement or other
document furnished by or on behalf of any Loan Party in connection with any Loan
Document, shall be deemed to have been relied upon by Bank, notwithstanding any
investigation heretofore or hereafter made by Bank or on Bank's behalf, and
those covenants and agreements of Borrower set forth in Sections 4.8 and 4.12
hereof (together with any other indemnities of Borrower contained elsewhere in
any Loan Document) shall survive the termination of this Agreement and the
repayment in full of the Indebtedness.

         7.15     EFFECTIVE UPON EXECUTION. This Agreement shall become
effective upon the execution hereof by Bank and Borrower, and shall remain
effective until the Indebtedness under this Agreement and each Letter of Credit
and the related Loan Documents shall have been repaid and discharged in full and
no commitment to extend any credit hereunder (whether optional or obligatory)
remains outstanding.

                                       18
<PAGE>

         7.16     COMPLETE AGREEMENT; CONFLICTS. The Loan Documents contain the
entire agreement of the parties thereto, and none of the parties shall be bound
by anything not expressed in writing. In the event that and to the extent that
any of the terms, conditions or provisions of any of the other Loan Documents
are inconsistent with or in conflict with any of the terms, conditions or
provisions of this Agreement, the applicable terms, conditions and provisions of
this Agreement shall govern and control.

         7.17     EXHIBITS AND ADDENDA. The following Addenda, Exhibits and
Schedules are attached to this Agreement and are incorporated into this
Agreement by this reference and made a part hereof for all purposes:

                  ADDENDA:
                  Defined Terms Addendum
                  Financial Covenants Addendum
                  Loan Terms, Conditions and Procedures Addendum

                  EXHIBITS:
                  Exhibit A - Form of Compliance Certificate
                  Exhibit B - Form of Borrowing Base Certificate

                  SCHEDULES:
                  Schedule 3.5          Subsidiaries
                  Schedule 3.14         Employee Benefit Plans
                  Schedule 3.17         Environmental Disclosures
                  Schedule 3.20         Intellectual Property

         7.18     LEFT BLANK INTENTIONALLY.

         7.19     WAIVER OF JURY TRIAL. BANK AND BORROWER EACH ACKNOWLEDGE THAT
THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED.
EACH OF THEM, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT, WITH
COUNSEL OF THEIR CHOICE, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY
RIGHT EITHER OF THEM MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION BASED UPON OR
ARISING OUT OF ANY LOAN DOCUMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THE
LOAN DOCUMENTS OR ANY COURSE OF CONDUCT, DEALING, STATEMENTS (WHETHER ORAL OR
WRITTEN), OR ACTION OF EITHER OF THEM. THESE PROVISIONS SHALL NOT BE DEEMED TO
HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY BANK OR BORROWER, EXCEPT BY
A WRITTEN INSTRUMENT EXECUTED BY EACH OF THEM.

         7.20     ORAL AGREEMENTS INEFFECTIVE. THIS AGREEMENT AND THE OTHER
"LOAN AGREEMENTS" (AS DEFINED IN SECTION 26.02 A (2) OF THE TEXAS

                                       19
<PAGE>

BUSINESS & COMMERCE CODE, AS AMENDED) REPRESENT THE FINAL AGREEMENT BETWEEN
THE PARTIES, AND THIS AGREEMENT AND THE OTHER WRITTEN LOAN AGREEMENTS MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES.

                              Remainder of the Page
                            Intentionally Left Blank

                            Signature Page to Follow

                                       20
<PAGE>

         WITNESS the due execution hereof as of the day and year first above
written.

COMERICA BANK - TEXAS                   DIGITALCONVERGENCE.:COM INC.

By:      /s/  Steven M. Moiles          By:   /s/  William S. Leftwich
   -------------------------------      ------------------------------------
Name:    Steven M. Moiles               Name:    William S. Leftwich
Title:   Vice President                 Title:   CFO

Address:  1601 Elm Street               Address:  9101 N. Central Expressway
          Dallas, Texas 75201                     6th Floor
          P.O. Box 650282                         Dallas, Texas 75231
          Dallas, Texas 75262-0282

Attn: Steven M. Moiles                  Attn: William Leftwich

Telefax No.: 214/890-4369               Telefax No.: 214/292-6914

                                       21

<PAGE>

                             DEFINED TERMS ADDENDUM

SECTION 1.                 DEFINITIONS

         1.1      DEFINED TERMS. As used in this Agreement, the following terms
shall have the following respective meanings:

         "ACCOUNT DEBTOR" shall mean the party who is obligated on or under any
Account.

         "ACCOUNTS," "CHATTEL PAPER," "DOCUMENTS", "EQUIPMENT," "FIXTURES,"
"GENERAL INTANGIBLES," "GOODS," "INSTRUMENTS" and "INVENTORY" shall have the
respective meanings assigned to them in the UCC on the date of this Agreement.

         "ACCOUNTS RECEIVABLE" shall mean and include all Accounts, Chattel
Paper, General Intangibles, contract rights, deposit accounts, documents and
Instruments now owned or hereafter acquired by Borrower and, to the extent
applicable, any other Loan Party pledging or purporting to pledge the same as
security for all or any part of the Indebtedness.

         "AFFILIATE" shall mean, when used with respect to any Person, any other
Person which, directly or indirectly, controls or is controlled by or is under
common control with such Person. For purposes of this definition, "control"
(including, with correlative meanings, the terms "controlled by" and "under
common control with"), with respect to any Person, shall mean possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting
securities, by contract or otherwise.

         "AFFILIATE RECEIVABLES" shall mean, as of any time of determination,
any amounts in respect of loans or advances owing to Borrower or another Loan
Party from any of its Subsidiaries or
Affiliates at such time.

         "AGREEMENT" shall mean this Credit Agreement, including the Defined
Terms Addendum, the Financial Covenants Addendum and the Loan Terms, Conditions
and Procedures Addendum, together with all exhibits and schedules, as it may be
amended from time to time.

         "BANKRUPTCY CODE" shall mean Title 11 of the United States Code, as
amended, or any successor act or code.

         "BORROWING BASE CERTIFICATE" shall mean a certificate in the form of
EXHIBIT B.

         "BORROWING BASE LIMITATION" shall mean the lesser of:

                  (a)      ONE HUNDRED MILLION DOLLARS ($100,000,000.00); or

                                        1
<PAGE>

                  (b)      The value of Comerica Bank-Texas certificates of
                           deposit issued in the name of Borrower and delivered
                           and pledged to Bank as Collateral.

         "BUSINESS DAY" shall mean any day, other than a Saturday, Sunday or
holiday, on which the Bank is open to carry on all or substantially all of its
normal commercial lending business in Dallas, Texas.

         "CAPITAL EXPENDITURE" shall mean any expenditure by a Person for (a) an
asset which will be used in a year or years subsequent to the year in which the
expenditure is made and which asset is properly classified in relevant financial
statements of such Person as equipment, real property, a fixed asset or a
similar type of capitalized asset in accordance with GAAP or (b) an asset
relating to or acquired in connection with an acquired business, and any and all
acquisition costs related to (a) or (b) above.

         "COLLATERAL" shall mean all property, assets and rights in which a Lien
or other encumbrance in favor of or for the benefit of Bank is or has been
granted or arises or has arisen, or may hereafter be granted or arise, under or
in connection with any Loan Document, or otherwise, to secure the
payment or performance of the Indebtedness.

         "COMPLIANCE CERTIFICATE" shall mean a certificate to be furnished by
Borrower to Bank, in the form of EXHIBIT A, certified by the chief financial
officer of Borrower (or in such officer' absence, another responsible officer of
Borrower) pursuant to SECTION 4.3 of this Agreement, certifying that, as of the
date thereof, no Default or Event of Default shall have occurred and be
continuing, or if any Default or Event of Default shall have occurred and be
continuing, specifying in detail the nature and period of existence thereof and
any action taken or proposed to be taken by Borrower with respect thereto, also
certifying as to whether Borrower is in compliance with the financial covenants
in the Financial Covenants Addendum to this Agreement (which certificate shall
set forth in reasonable detail the calculations and resultant ratios and
financial tests determined thereunder).

         "CONSOLIDATED" or "CONSOLIDATED" shall mean, when used with reference
to any financial term in this Agreement, the aggregate for two or more persons
of the amounts signified by such term for all such persons determined on a
consolidated basis in accordance with GAAP. Unless otherwise specified herein,
references to "consolidated" financial statements or data of the Borrower
includes consolidation with its Subsidiaries in accordance with GAAP.

         "DEBT" shall mean, as of any applicable date of determination thereof,
all items of indebtedness, obligation or liability of a Person, whether matured
or unmatured, liquidated or unliquidated, direct or indirect, absolute or
contingent, joint or several, that should be classified as liabilities in
accordance with GAAP. In the case of Borrower, the term "Debt" shall include,
without limitation, the Indebtedness.

         "DEFAULT" shall mean, any condition or event which, with the giving of
notice or the passage of time, or both, would constitute an Event of Default.

                                        2

<PAGE>

         "DEFAULT RATE" shall mean, at any time of determination thereof with
respect to the applicable portion of the Indebtedness, a per annum rate of
interest equal to the sum of the contractual rate of interest which would
apply to such Indebtedness if the Default Rate was not then in effect plus
three percent (3%).

         "DISBURSEMENT DATE" shall mean the date upon which Bank issues a Letter
of Credit under this Agreement.

         "DISTRIBUTION" shall mean any dividend on or other distribution
(whether by reduction of capital or otherwise) with respect to any shares of
capital stock (or other ownership interests), except for dividends from a
Subsidiary of a Loan Party to another of its Subsidiaries.

         "ENVIRONMENTAL LAW(S)" shall mean all laws, codes, ordinances, rules,
regulations, orders, decrees and directives issued by any federal, state, local,
foreign or other governmental or quasi governmental authority or body (or any
agency, instrumentality or political subdivision thereof) pertaining to
Hazardous Materials or otherwise intended to regulate or improve health, safety
or the environment, including, without limitation, any hazardous materials or
wastes, toxic substances, flammable, explosive or radioactive materials,
asbestos, and/or other similar materials; any so-called "superfund" or
"superlien" law, pertaining to Hazardous Materials on or about any of the
Collateral, or any other property at any time owned, leased or otherwise used by
any Loan Party, or any portion thereof, including, without limitation, those
relating to soil, surface, subsurface ground water conditions and the condition
of the ambient air; and any other federal, state, foreign or local statute, law,
ordinance, code, rule, regulation, order or decree regulating, relating to, or
imposing liability or standards of conduct concerning, any hazardous, toxic,
radioactive, flammable or dangerous waste, substance or material, as now or at
anytime hereafter in effect.

         "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as amended, or any successor act or code.

         "EVENT OF DEFAULT" shall mean any of those conditions or events listed
in Section 6.1 of this Agreement.

         "FINANCIAL STATEMENTS" shall mean all balance sheets, income
statements, statements of profit and loss, surplus reconciliation statements,
statements of cash flow and other financial data, statements and reports
(whether of Borrower, any of its Subsidiaries, or any other Loan Party or
otherwise) which are required to, have been, or may from time to time hereafter,
be furnished to Bank, for the purposes of, or in connection with, this
Agreement, the transactions contemplated hereby or any of the Indebtedness.

         "GAAP" shall mean generally accepted accounting principles consistently
applied.

         "GOOD FAITH" or "good faith" shall have the meaning ascribed to the
term "good faith" in Article 1.201 (19) of the UCC on the date of this
Agreement.

                                        3

<PAGE>

         "GOVERNMENTAL AUTHORITY" shall mean the United States, each state, each
county, each city, and each other political subdivision in which all or any
portion of the Collateral is located, and each other political subdivision,
agency, or instrumentality exercising jurisdiction over Bank, any Loan Party or
any Collateral.

         "GOVERNMENTAL REQUIREMENTS" shall mean all laws, ordinances, rules, and
regulations of any Governmental Authority applicable to any Loan Party, any of
the Indebtedness or any
Collateral.

         "HAZARDOUS MATERIAL" shall mean and include any hazardous, toxic or
dangerous waste, substance or material defined as such in, or for purposes of,
any Environmental Law(s).

         "INDEBTEDNESS" shall mean all loans, advances, indebtedness,
obligations and liabilities of any Loan Party to Bank under any Loan Document,
together with all other indebtedness, obligations and liabilities whatsoever of
Borrower to Bank, whether matured or unmatured, liquidated or unliquidated,
direct or indirect, absolute or contingent, joint or several, due or to become
due, now existing or hereafter arising, voluntary or involuntary, known or
unknown, originally payable to Bank or to a third party and subsequently
acquired by Bank including, without limitation, any: late charges; loan fees or
charges; overdraft indebtedness; costs incurred by Bank in establishing,
determining, continuing or defending the validity or priority of any Lien or in
pursuing any of its rights or remedies under any Loan Document or in connection
with any proceeding involving Bank as a result of any financial accommodation to
Borrower; debts, obligations and liabilities for which Borrower would otherwise
be liable to the Bank were it not for the invalidity or enforceability of them
by reason of any bankruptcy, insolvency or other law or for any other reason;
and reasonable costs and expenses of attorneys and paralegals, whether any suit
or other action is instituted, and to court costs if suit or action is
instituted, and whether any such fees, costs or expenses are incurred at the
trial court level or on appeal, in bankruptcy, in administrative proceedings, in
probate proceedings or otherwise; provided, however, that the term Indebtedness
shall not include any consumer loan to the extent treatment of such loan as part
of the Indebtedness would violate any Governmental Requirement.

         "INTELLECTUAL PROPERTY" shall mean:

                  (a)      copyright rights, copyright applications, copyright
                           registrations and like protections in work or
                           authorship and derivative work thereof, whether
                           published or unpublished and whether or not the same
                           also constitutes a trade secret (collectively, the
                           "COPYRIGHTS");

                  (b)      trade secrets and any and all intellectual property
                           rights in computer software and computer software
                           products;

                  (c)      design rights;

                                        4

<PAGE>

                  (d)      patents, patent applications and like protections
                           including without limitation improvements, divisions,
                           continuations, renewals, reissues, extensions and
                           continuations-in-part of the same;

                  (e)      trademark and servicemark rights, whether registered
                           or not, applications to register and registrations of
                           the same and like protections, and the entire
                           goodwill of the business connected with and
                           symbolized by such trademarks or servicemarks
                           (collectively, the "TRADEMARKS");

                  (f)      rights to the proceeds (excluding attorneys' and
                           other professional and expert fees and expenses)
                           arising from any and all claims or damages by way of
                           past, present and future infringement of any of the
                           rights included above, with the right, but not the
                           obligation, to sue on behalf of and collect such
                           damages for said use or infringement of the
                           intellectual property rights identified above;

                  (g)      licenses and other rights to use any of the
                           Copyrights, Patents or Trademarks, and all license
                           fees and royalties arising from such use to the
                           extent permitted by any such license or right;

                  (h)      amendments, renewals and extensions of any of the
                           Copyrights, Trademarks or Patents; and

                  (i)      proceeds and products of the foregoing, including
                           without limitation all payments under insurance or
                           any indemnity or warranty payable in respect of
                           any of the foregoing.

         "LETTER OF CREDIT" shall mean a letter of credit issued by the Bank for
the account of and/or upon the application of any Loan Party in accordance with
this Agreement, as such Letter of Credit may be amended, supplemented, extended
or confirmed from time to time.

         "LETTER OF CREDIT LIABILITIES" shall mean, at any time and in respect
of all Letters of Credit, the sum of (a) the aggregate amount available to be
drawn under all such Letters of Credit plus (b) the aggregate unpaid amount of
all Reimbursement Obligations then due and payable in respect of previous
drawings under such Letters of Credit.

         "LETTER OF CREDIT MATURITY DATE" shall mean February 1, 2001 or such
earlier date as established in a particular Letter of Credit on which date such
Letter of Credit terminates whether by the lapse of time, demand for payment,
acceleration or otherwise; provided, however, if any such date is not a Business
Day, then the Letter of Credit Maturity Date shall be the next succeeding
Business Day.

                                        5

<PAGE>

         "LETTER OF CREDIT MAXIMUM AMOUNT" shall mean the lesser of (a) ONE
HUNDRED MILLION DOLLARS ($100,000,000.00), or (b) the Borrowing Base Limitation.

         "LIEN" shall mean any valid and enforceable interest in any property,
whether real, personal or mixed, securing an indebtedness, obligation or
liability owed to or claimed by any Person other than the owner of such
property, whether such indebtedness is based on the common law or any statute or
contract and including, but not limited to, a security interest, pledge
mortgage, assignment, conditional sale, trust receipt, lease, consignment or
bailment for security purposes.

         "LOAN DOCUMENTS" shall mean collectively, this Agreement, any Letter of
Credit, any reimbursement agreement or other documentation executed in
connection with any Letter of Credit, and any other documents, instruments or
agreements evidencing, governing, securing, guaranteeing or otherwise relating
to or executed pursuant to or in connection with any of the Indebtedness or any
Loan Document (whether executed and delivered prior to, concurrently with or
subsequent to this Agreement), as such documents may have been or may hereafter
be amended from time to time.

         "LOAN PARTY" shall mean Borrower, each of its Subsidiaries (whether or
not a party to any Loan Document) and each other Person who or which shall be
liable for the payment or performance of all or any portion of the Indebtedness
or who or which shall own any property that is subject to (or purported to be
subject to) a Lien which secured all or any portion of the Indebtedness.

         "MATERIAL ADVERSE EFFECT" shall mean any act, event, condition or
circumstance which could materially and adversely affect the business,
operations, condition (financial or otherwise), performance or assets of any
Loan Party, the ability of any Loan Party to perform its obligations under any
Loan Document to which it is a party or by which it 'is bound or the
enforceability of any Loan Document.

         "MAXIMUM LEGAL RATE" shall mean the maximum rate of nonusurious
interest per annum permitted to be paid by Borrower or, if applicable, another
Loan Party or received by Bank with respect to the applicable portion of the
Indebtedness from time to time under applicable state or federal law as now or
as may be hereafter in effect, including, as to Chapter 1 D of Title 79 Vernon's
Texas Civil Statutes (and as the same may be incorporated by reference in other
Texas statutes), but otherwise without limitation, that rate based upon the
"WEEKLY CEILING RATE" (defined in Chapter 303 of the Texas Finance Code).

         "PBGC" shall mean the Pension Benefit Guaranty Corporation, or any
Person succeeding to the present powers and functions of the Pension Benefit
Guaranty Corporation.

         "PENSION PLAN(S)" shall mean any and all employee benefit pension plans
of Borrower and/or any of its Subsidiaries in effect from time to time, as such
term is defined in ERISA.

                                        6

<PAGE>

         "PERSON" or "PERSON" shall mean any individual, corporation,
partnership, joint venture, limited liability company, association, trust,
unincorporated association, joint stock company, government, municipality,
political subdivision or agency, or other entity.

         "REIMBURSEMENT OBLIGATIONS" shall mean, at any time and in respect of
all Letters of Credit, the aggregate obligations any Loan Party, then
outstanding or which may thereafter arise, to reimburse the Bank for any amount
paid or incurred by the Bank in respect of any and all drawings under such
Letter of Credit, together with any and all other Indebtedness, obligations and
liabilities of any Loan Party to Bank related to such Letter of Credit arising
under this Agreement, any Letter of Credit application or any other Loan
Document.

         "SUBSIDIARY" shall mean as to any particular parent entity, any
corporation, partnership, limited liability company or other entity (whether now
existing or hereafter organized or acquired) in which more than fifty percent
(50%) of the outstanding equity ownership interests having voting rights as of
any applicable date of determination, shall be owned directly, or indirectly
through one or more Subsidiaries, by such parent entity.

         "TANGIBLE NET WORTH" shall mean, with respect to any Person and as
of any applicable date of determination, (a) the net book value of all assets
of such Person (excluding Affiliate Receivables, patent rights, trademarks,
trade names, franchises, copyrights, licenses, goodwill, an all other
intangible assets of such Person), after all appropriate deductions in
accordance with GAAP (including, without limitation, reserves for doubtful
receivables, obsolescence, depreciation and amortization), less (b) all Debt
of such Person at such time.

         "TAX REFUNDS" shall mean refunds or claims for refunds of any taxes at
any time paid by Borrower to the United States of America or any state, city,
county or other governmental entity.

         "TELEPHONE NOTICE AUTHORIZATION" shall mean an agreement in form
satisfactory to Bank authorizing telephonic and facsimile notices of
borrowing and establishing a codeword system of identification in connection
therewith.

         "UCC" shall mean the Uniform Commercial Code as adopted and in force in
the State of Texas, as amended.

                                        7

<PAGE>

                          FINANCIAL COVENANTS ADDENDUM

SECTION 1.        FINANCIAL COVENANTS.

         1.1      TANGIBLE NET WORTH. Maintain a Tangible Net Worth at all times
of not less than the amount set forth below during the corresponding period set
forth below:

<TABLE>
<CAPTION>
              Period                                       Amount
              ------                                       ------
      <S>                                             <C>
      As of April 30, 2000                            $ 95,000,000.00
      As of June 30, 2000                             $ 80,000,000.00
      As of September 30, 2000                        $120,000,000.00
      As of December 31, 2000                         $ 65,000,000.00

</TABLE>
                                        1

<PAGE>

                 LOAN TERMS. CONDITIONS AND PROCEDURES ADDENDUM

SECTION 1.        LETTER OF CREDIT FACILITY

         1.1      LETTERS OF CREDIT.

                  (a)      LETTERS OF CREDIT. Subject to the terms and
                           conditions of this Agreement and the other Loan
                           Documents, the Bank shall, upon request from Borrower
                           from time to time prior to the Letter of Credit
                           Maturity Date, issue one or more Letters of Credit.
                           The Letter of Credit Liabilities shall not exceed the
                           Letter of Credit Maximum Amount. Letters of Credit
                           may be issued to facilitate orders by Borrower for
                           Tandy Corporation to manufacture the :Cue:C.A.T.
                           product. No Letter of Credit shall have a stated
                           expiration date later than February 1, 2001.

                  (b)      LETTER OF CREDIT FEE. Borrower shall pay to Bank a
                           fee based upon the following fee schedule:

                                    1% per annum on that portion of Letter of
                                    Credit Liabilities between $0 and
                                    $19,999,999, and

                                    0.75% per annum on that portion of Letter of
                                    Credit Liabilities between $20,000,000 and
                                    $29,999,999, and

                                    0.375% per annum on that portion of Letter
                                    of Credit Liabilities at or above
                                    $30,000,000.

                           Such fee shall be computed on a daily basis and shall
                           be payable monthly in arrears. Bank shall invoice
                           Borrower for such fees, which invoice shall be due
                           and payable within fifteen (15) days after receipt.

                  (c)      Notwithstanding anything contained in this Agreement
                           to the contrary, the Letter of Credit Liabilities
                           shall not exceed the Letter of Credit Maximum Amount.
                           If said limitations are exceeded at anytime, Borrower
                           shall immediately, without demand by Bank, pay to
                           Bank an amount not less than such excess, or, if
                           Bank, in its sole discretion, shall so agree,
                           Borrower shall provide Bank cash collateral in an
                           amount not less than such excess, and Borrower hereby
                           pledges and grants to Bank a security interest in
                           such cash collateral so provided to Bank.

                  (d)      ADDITIONAL PROVISIONS. The following additional
                           provisions shall apply to each Letter of Credit:

                                        1

<PAGE>

                           (i)      Borrower shall give the Bank written notice
                                    requesting each issuance of a Letter of
                                    Credit hereunder not less than five (5)
                                    Business Days prior to the requested
                                    issuance date and shall furnish such
                                    additional information regarding such
                                    transaction as Bank may request. The
                                    issuance by Bank of each Letter of Credit
                                    shall, in addition to the conditions
                                    precedent set forth elsewhere in this
                                    Agreement, be subject to the conditions
                                    precedent that:

                                    (A)      such Letter of Credit shall be in
                                             form and substance satisfactory to
                                             Bank;

                                    (B)      Borrower shall have delivered to
                                             Bank (a) one or more certificates
                                             of deposit issued by Comerica
                                             Bank-Texas in the name of Borrower
                                             in an aggregate amount equal to or
                                             greater than the aggregate amount
                                             available to be drawn under such
                                             Letter of Credit, and (b) a
                                             Security Agreement in form and
                                             substance acceptable to Bank
                                             evidencing the pledge of such
                                             certificate(s) of deposit as
                                             Collateral for the issuance of the
                                             Letter of Credit;

                                    (C)     Borrower shall have executed and
                                            delivered such applications and
                                            other instruments and agreements
                                            relating to such Letter of Credit as
                                            Bank shall have requested and are
                                            not inconsistent with the terms of
                                            this Agreement;

                                    (D)      each of the following statements
                                             are true as of the date of issuance
                                             of such Letter of Credit with
                                             respect to issuance of the same and
                                             constitute representations,
                                             warranties and certifications by
                                             Borrower that (1) both before and
                                             after the issuance of such Letter
                                             of Credit, the obligations set
                                             forth in the Loan Documents are and
                                             shall be valid, binding and
                                             enforceable obligations of each
                                             Loan Party, as applicable; (2) all
                                             terms and conditions precedent to
                                             the issuance of such Letter of
                                             Credit have been satisfied, and
                                             shall remain satisfied through the
                                             date of such Letter of Credit; (3)
                                             the issuance of such Letter of
                                             Credit will not cause the Letter of
                                             Credit Liabilities to exceed the
                                             Letter of Credit Maximum Amount;
                                             (4) no Default or Event of Default
                                             shall have occurred or be in
                                             existence, and none will exist or
                                             arise upon the issuance of such
                                             Letter of Credit; (5) the
                                             representations and warranties
                                             contained in the Loan Documents are
                                             true and correct in all material
                                             respects and shall be true and
                                             correct in all material respects as
                                             of the issuance of such Letter of
                                             Credit; and (6) the

                                        2
<PAGE>

                                            issuance of such Letter of Credit
                                            will not violate the terms or
                                            conditions of any contract,
                                            indenture, agreement or other
                                            borrowing of any Loan Party, and the
                                            submission of an application for
                                            issuance of a Letter of Credit shall
                                            constitute a representation,
                                            warranty and certification of
                                            Borrower to that effect; and

                                    (E)     no Letter of Credit may be issued if
                                            after giving effect thereto, the
                                            Letter of Credit Liabilities would
                                            exceed the Letter of Credit Maximum
                                            Amount.

                           (ii)     Borrower shall be irrevocably and
                                    unconditionally obligated forthwith to
                                    reimburse Bank for any amount paid by Bank
                                    upon any drawing under any Letter of Credit,
                                    without presentment, demand, protest or
                                    other formalities of any kind, all of which
                                    are hereby waived.

                  (e)      INDEMNIFICATION; RELEASE. Borrower hereby indemnifies
                           and agrees to defend and hold harmless Bank and its
                           officers, directors, employees, agents and
                           representatives from and against any and all claims
                           and damages, losses, liabilities, costs or expenses
                           which any such indemnified party may incur (or which
                           may be claimed against Bank or any such indemnified
                           party by any person whatsoever), REGARDLESS OF
                           WHETHER CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE
                           OF ANY OF THE INDEMNIFIED PARTIES, in connection with
                           the execution and delivery of any Letter of Credit or
                           transfer of or payment or failure to pay under any
                           Letter of Credit; PROVIDED that Borrower shall not be
                           required to indemnify any party seeking
                           indemnification for any claims, damages, losses,
                           liabilities, costs or expenses to the extent, but
                           only to the extent, caused by (i) the willful
                           misconduct or gross negligence of the party seeking
                           indemnification, or (ii) by the failure by the party
                           seeking indemnification to pay under any Letter of
                           Credit after the presentation to it of a request
                           required to be paid under application law.

SECTION 2.        PAYMENTS, RECOVERIES AND COLLECTIONS

         2.1      LEFT BLANK INTENTIONALLY.

         2.2      BANK'S BOOKS AND RECORDS. The amount and date of each Letter
of Credit hereunder and the amount of Letter of Credit Liabilities shall be
noted on Bank's books and records, which shall be conclusive evidence thereof,
absent manifest error; provided, however, any failure by Bank to make any such
notation, or any error in any such notation, shall not relieve Borrower of its
obligations to pay to Bank all amounts owing to Bank under or pursuant to the
Loan Documents, in each case, when due in accordance with the terms hereof or
thereof.

                                        3

<PAGE>

         2.3      PAYMENTS ON NON-BUSINESS DAY. In the event that any payment of
any principal, interest, fees or any other amounts payable by Borrower under or
pursuant to any Loan Document shall become due on any day which is not a
Business Day, such due date shall be extended to the next succeeding Business
Day, and, to the extent applicable, interest shall continue to accrue and be
payable at the Applicable Interest Rate(s) for and during any such extension.

         2.4      PAYMENT PROCEDURES. Unless otherwise expressly provided in a
Loan Document, all sums payable by Borrower to Bank under or pursuant to any
Loan Document, whether principal, interest, or otherwise, shall be paid, when
due, directly to Bank at the office of Bank identified on the signature page of
this Agreement, or at such other office of Bank as Bank may designate in writing
to Borrower from time to time, in immediately available United States funds, and
without setoff, deduction or counterclaim. Bank may, in its discretion, charge
any and all deposit or other accounts (including, without limitation, any
account evidenced by a certificate of deposit or time deposit) of Borrower
maintained with Bank for all or any part of any Indebtedness then due and
payable; provided, however, that such authorization shall not affect Borrower's
obligations to pay all Indebtedness, when due, whether or not any such account
balances maintained by Borrower with Bank are insufficient to pay any amounts
then due,

         2.5      MAXIMUM INTEREST RATE. At no time shall any Default Rate
under this Agreement, or otherwise in respect of any Indebtedness hereunder,
exceed the Maximum Legal Rate, giving due consideration to the execution of
this Agreement. In the event that any interest is charged or otherwise
received by Bank in excess of the Maximum Legal Rate, Borrower hereby
acknowledges and agrees that any such excess interest shall be the result of
an accidental and bona fide error, and any such excess shall be deemed to
have been payments of principal, and not of interest, and shall be applied,
first, to reduce the principal Indebtedness then outstanding, second, any
remaining excess, if any, shall be applied to reduce any other Indebtedness,
and third, any remaining excess, if any, shall be returned to Borrower.
Notwithstanding the foregoing or anything to the contrary contained in this
Agreement or any other Loan Document, but subject to all limitations
contained in this paragraph, if at anytime any Default Rate or other rate of
interest applicable to any portion of the Indebtedness is computed on the
basis of the Maximum Legal Rate, any subsequent reduction in the Default Rate
or such other rate of interest shall not reduce such interest rate thereafter
payable below the Maximum Legal Rate until the aggregate amount of interest
accrued equals the total amount of interest that would have accrued if
interest had, at all times, been computed solely on the basis of the Default
Rate or such other interest rate. This paragraph shall control all agreements
between the Borrower and the Bank.

         2.6      RECEIPT OF PAYMENTS BY BANK. Any payment by Borrower of any
of the Indebtedness made by mail will be deemed tendered and received by Bank
only upon actual receipt thereof by Bank at the address designated for such
payment, whether or not Bank has authorized payment by mail or in any other
manner, and such payment shall not be deemed to have been made in a timely
manner unless actually received by Bank on or before the date due for such
payment, time being of the essence. Borrower expressly assumes all risks of
loss or liability resulting from non-delivery or delay of delivery of any
item of payment transmitted by mail or in any other manner. Acceptance by

                                        4

<PAGE>

Bank of any payment in an amount less than the amount then due shall be
deemed an acceptance on account only, and any failure to pay the entire
amount then due shall constitute and continue to be an Event of Default
hereunder. Bank shall be entitled to exercise any and all rights and remedies
conferred upon and otherwise available to Bank under any Loan Document upon
the occurrence and during the continuance of any such Event of Default. Prior
to the occurrence of any Default, Borrower shall have the right to direct the
application of any and all payments made to Bank hereunder to the
Indebtedness. Borrower waives the right to direct the application of any and
all payments received by Bank hereunder at any time or times after the
occurrence and during the continuance of any Default. Borrower further agrees
that after the occurrence and during the continuance of any Default, or prior
to the occurrence of any Default if Borrower has failed to direct such
application, Bank shall have the continuing exclusive right to apply and to
reapply any and all payments received by Bank at any time or times, whether
as voluntary payments, proceeds from any Collateral, offsets, or otherwise,
against the Indebtedness in such order and in such manner as Bank may, in its
sole discretion, deem advisable, notwithstanding any entry by Bank upon any
of its books and records. Borrower hereby expressly agrees that, to the
extent that Bank receives any payment or benefit of or otherwise upon any of
the Indebtedness, and such payment or benefit, or any part thereof, is
subsequently invalidated, declared to be fraudulent or preferential, set
aside, or required to be repaid to a trustee, receiver, or any other Person
under any bankruptcy act, state or federal law, common law, equitable cause
or otherwise, then to the extent of such payment or benefit, the
Indebtedness, or part thereof, intended to be satisfied shall be revived and
continued in full force and effect as if such payment or benefit had not been
made or received by Bank, and, further, any such repayment by Bank shall be
added to and be deemed to be additional Indebtedness.

         2.7      SECURITY. Payment and performance of the Indebtedness shall
be secured by Liens on the Collateral of Borrower and such other Loan Parties
as Bank may require from time to time.

SECTION 3.        CONDITIONS PRECEDENT

         3.1      CONDITIONS PRECEDENT TO FIRST LETTER OF CREDIT. The
obligation of the Bank to issue the first Letter of Credit under or pursuant
to this Agreement shall be subject to the following conditions precedent:

                  (a)      EXECUTION OF THIS AGREEMENT AND OTHER LOAN DOCUMENTS.
                           Borrower shall have executed and delivered to Bank,
                           or caused to have been executed and delivered to
                           Bank, this Agreement and all other Loan Documents,
                           and this Agreement (including all addenda, schedules,
                           exhibits, certificates, opinions, financial
                           statements and other documents to be delivered
                           pursuant hereto) and all other Loan Documents shall
                           be in full force and effect and binding and
                           enforceable obligations of Borrower and, to the
                           extent that it is a party thereto or otherwise bound
                           thereby, of each other Person who may be a party
                           thereto or bound thereby.

                                        5

<PAGE>

                  (b)      AUTHORITY DOCUMENTS. Bank shall have received: (i)
                           copies of resolutions of the board of directors,
                           partners or members or managers, as applicable, of
                           each Loan Party evidencing approval of the borrowing
                           hereunder and the transactions contemplated by the
                           Loan Documents, and authorizing the execution,
                           delivery and performance by each Loan Party of each
                           Loan Document to which it is a party or by which it
                           is otherwise bound, which resolutions shall have been
                           certified by a duly authorized officer, partner or
                           other representative, as applicable, of each Loan
                           Party as of the date of this Agreement as being
                           complete, accurate and in full force and effect; (ii)
                           incumbency certifications of a duly authorized
                           officer, partner or other representative, as
                           applicable, of each Loan Party, in each case,
                           identifying those individuals who are authorized to
                           execute the Loan Documents for and on behalf of such
                           Person(s), respectively, and to otherwise act for and
                           on behalf of such Person(s); (iii) certified copies
                           of each of such Person(s)' articles of incorporation
                           and bylaws, partnership agreement, certificate of
                           limited partnership, articles of organization,
                           regulations or operating agreement, as applicable,
                           and all amendments thereto; and (iv) certificates of
                           existence, good standing and authority to do
                           business, as applicable, certified substantially
                           contemporaneously with the date of this Agreement,
                           from the state or other jurisdiction of each of such
                           Person(s)' organization and from every other state or
                           jurisdiction in which such Person is required, under
                           applicable law, to be qualified to do business.

                  (c)      COLLATERAL DOCUMENTS. As security and support for the
                           payment and performance of all Indebtedness of
                           Borrower to Bank, Borrower shall have furnished,
                           executed and delivered to Bank, or shall have caused
                           to have been furnished, executed and delivered to
                           Bank, prior to or concurrently with the Disbursement
                           Date for the initial Letter of Credit hereunder, in
                           form satisfactory to Bank, the following documents,
                           and Bank shall have received proof that appropriate
                           security agreements, financing statements, mortgages,
                           deeds of trust, collateral and other documents
                           covering the Collateral shall have been executed and
                           delivered by the appropriate Persons and recorded or
                           filed in such jurisdictions and such other steps
                           shall have been taken as necessary to perfect the
                           Liens granted thereby:

                           (i)      one or more certificates of deposit issued
                                    by Comerica Bank-Texas in the name of
                                    Borrower in an aggregate amount equal to or
                                    greater than the amount available to be
                                    drawn under such initial Letter of Credit;

                           (ii)     security agreement in form and substance
                                    acceptable to Bank evidencing the pledge of
                                    the certificate(s) of deposit referenced in
                                    (i) above as Collateral for the issuance of
                                    the initial Letter of Credit;

                                        6

<PAGE>

                           (iii)    financing statements required or requested
                                    by Bank to perfect all security interests to
                                    be conferred upon Bank under the Loan
                                    Documents and to accord Bank a perfected
                                    security position in the Collateral;

                           (iv)     such additional documents or certificates as
                                    may be required by Bank and/or required
                                    under the terms of any and every Loan
                                    Document; and

                           (v)      such other documents or agreements of
                                    security and appropriate assurances of
                                    validity, perfection and priority of Lien as
                                    Bank may request.

                  (d)      LEGAL OPINION LETTER. Borrower shall have furnished
                           to Bank an opinion of Borrower's legal counsel, dated
                           as of the date of this Agreement, and covering such
                           matters as are required by Bank and which is
                           otherwise satisfactory in form and substance to Bank.

                  (e)      LICENSES, PERMITS, APPROVALS, ETC. To the extent
                           necessary and applicable, Borrower shall have
                           received any and all necessary authorizations,
                           approvals and consents from all applicable
                           Governmental Authorities in respect of the issuance
                           of any Letters of Credit hereunder, the Loan
                           Documents and the transactions contemplated by any
                           Loan Document; and Bank shall have also received
                           copies of each authorization, license, permit,
                           consent, order or approval of, or registration,
                           declaration or filing with, any Governmental
                           Authority or any securities exchange or other Person
                           obtained or made by Borrower or any other Person in
                           connection with the transactions contemplated by the
                           Loan Documents and which is material to the financial
                           condition of Borrower or such other Person or the
                           conduct of its business or the transactions
                           contemplated hereby or the Collateral.

                  (f)      UCC LIEN SEARCH. Bank shall have received UCC, tax
                           lien and judgment lien record and copy searches (and,
                           if any collateral constitutes Intellectual Property,
                           patent, copyright and trademark searches), disclosing
                           no notice of any Liens or encumbrances filed against
                           any of the Collateral.

                  (g)      CASUALTY INSURANCE. Borrower shall have furnished to
                           Bank, or cause to have been furnished to Bank, in
                           form and content and in amounts and with companies
                           satisfactory to Bank, certificates evidencing
                           casualty insurance policies relating to the assets
                           and properties (including, but not limited to, the
                           Collateral) of Borrower and any applicable Loan
                           Party.

                                        7

<PAGE>

                  (h)      APPROVAL OF BANK COUNSEL. All actions, proceedings,
                           instruments and documents required to carry out the
                           borrowings and transactions contemplated by this
                           Agreement or any other Loan Document or incidental
                           thereto, and all other related legal matters, shall
                           have been satisfactory to and approved by legal
                           counsel for Bank, and said counsel shall have been
                           furnished with such certified copies of actions and
                           proceedings and such other instruments and documents
                           as they shall have requested.

                  (i)      COMPLIANCE WITH CERTAIN DOCUMENTS AND AGREEMENTS.
                           Each Loan Party shall have each performed and
                           complied with all agreements and conditions contained
                           in the Loan Documents applicable to it and which are
                           then in
                           effect.

                  (j)      OTHER DOCUMENTS AND INSTRUMENTS. Bank shall have
                           received such other instruments and documents (not
                           inconsistent with the terms hereof) as Bank may
                           request in connection with the issuance of any
                           Letters of Credit hereunder, and all such instruments
                           and documents shall be satisfactory in
                           form and substance to Bank.

         3.2      CONDITIONS PRECEDENT TO ISSUANCE OF ALL LETTERS OF CREDIT.
In addition to any other terms and conditions set forth in this Agreement,
including, without limitation, those set forth in SECTION 3.1 above, the
obligation of Bank to issue any Letter of Credit under this Agreement,
including, without limitation, the initial Letter of Credit hereunder, shall
be further subject to the satisfaction of each of the following conditions
precedent on or before the Disbursement Date for such Letter of Credit:

                  (a)      LOAN DOCUMENTS BINDING AND ENFORCEABLE. All Loan
                           Documents shall be in full force and effect and
                           binding and enforceable obligations of each Loan
                           Party.

                  (b)      REPRESENTATIONS AND WARRANTIES. Each of the
                           representations and warranties of each Loan Party
                           under any Loan Document shall be true and correct in
                           all material respects.

                  (c)      NO DEFAULT OR MATERIAL ADVERSE CHANGE. No Default or
                           Event of Default shall have occurred and be
                           continuing; there shall have been no material adverse
                           change in the condition (financial or otherwise),
                           properties, business, or operations of any Loan Party
                           since the date of the Financial Statements most
                           recently delivered to Bank prior to the date of this
                           Agreement; and no provision of law, any order of any
                           Governmental Authority, or any regulation, rule or
                           interpretation thereof, shall have had any material
                           adverse effect on the validity or enforceability of
                           any Loan Document.

                                        8

<PAGE>

                  (d)      COLLATERAL SOURCE. Borrower shall provide to Bank
                           such documentation and other evidence satisfactory to
                           Bank that the source of funds utilized by the
                           Borrower to provide Collateral for any Letter of
                           Credit complies with covenants set forth in Section
                           4.7 and Section 5.3 of the Agreement.

                                                         9<PAGE>

                                                                    EXHIBIT 10.7

--------------------------------------------------------------------------------
  Neither party shall be bound by any agreement in whole or in part unless and
         until this document is executed and delivered by both parties.
       This document is otherwise intended for discussion purposes only.
--------------------------------------------------------------------------------
                                :CRQ-TM- :Cue-TM-
                  BROADCAST STATION AND CABLE CHANNEL AGREEMENT

                       THE PARTIES TO THIS AGREEMENT ARE:

--------------------------------------------------------------------------------
("DCCI")                                          ("BELO")
--------------------------------------------------------------------------------
DIGITALCONVERGENCE.:COM INC.                      BELO INTERACTIVE, INC.
630 Fifth Avenue                                  714 Jackson Street, Suite 1025
New York, NY 10111                                Dallas, Texas 75202
Phone 212 218 5270                                Phone 214 977 6685
Fax 212 218 5263                                  Fax 214 977 7151
Attn: John G. Huncke                              Attn: James M. Moroney, III
Executive Vice President, Media Group             President
jhuncke@digitalconvergence.com
--------------------------------------------------------------------------------

                               - PRINCIPAL TERMS -

         This :CRQ-TM- :Cue-TM- Broadcast Station Agreement and Cable Channel
agreement (the "Agreement") between DCCI and Belo (the "PARTIES") is dated as of
April 4, 2000 and, upon execution by both Parties, shall bind them in accordance
with the terms and conditions of these Principal Terms and the General that are
annexed below and made a part of this Agreement. Capitalized terms not defined
in the Principal Terms or the Annex of Definitions attached hereto as Exhibit I,
which is incorporated by reference, are defined in the General Terms.

         A.       As used in this Agreement:

         1.       "TERM" means the period beginning as of August 1, 2000 and
                  continuing for eighteen (18) months thereafter, subject to all
                  provisions below. Belo has the right to renew the Term for a
                  consecutive additional eighteen (18) month period ("FIRST
                  RENEWAL PERIOD") as follows: Beginning ninety (90) days before
                  the end of the Term, the Parties will negotiate in good faith
                  the economic terms of the license for the Renewal Period for
                  up to sixty (60) days. DCCI will offer to Belo economic terms
                  for such Renewal Period for each of its Belo Stations,
                  Station-by-Station, on a most-favored-nations basis with any
                  other free over-the-air local television stations and local
                  basic cable channel or program service then under license from
                  DCCI for the :CRQ :Cue Technology in comparable market areas
                  to those in which such Belo Stations are located. For purposes
                  of the prior sentence, unless otherwise agreed by the Parties,
                  the Parties will compare one Belo Television Market to another
                  station market with reference to the cost per rating point in
                  the respective markets. Provided the Parties extend the Term
                  for a particular Belo Station for the First Renewal Period,
                  Belo shall have the right to extend the Term for such Belo
                  Station for a second consecutive Renewal Period of eighteen
                  (18) months ( the "SECOND RENEWAL PERIOD") under the same
                  procedure above as for the First Renewal Period.

                                        1

<PAGE>

         2.       "MARKETS" shall mean the Belo Cable News Markets and the Belo
                  Television Markets, as specified in the fee table set forth as
                  Exhibit II, which is incorporated by reference, as amended
                  from time to time by the written mutual agreement of the
                  Parties (the "FEE TABLE") to reflect new Belo Television
                  Stations and new Belo Cable News Channels. The "BELO CABLE
                  NEWS MARKETS" are the urban region or state, as applicable,
                  specified for each Belo Cable News Channel in the Fee Table.
                  The "BELO TELEVISION MARKETS" shall refer to the Designated
                  Market Area ("DMA") for a Belo Television Station, as defined
                  by Nielsen Media Research, Inc. and set forth in the Fee
                  Table.

         B.       FEE. As a condition to performance of DCCI's obligations under
this Agreement, Belo shall pay DCCI either (i) the Fixed Annual License Fee or
(ii) the Per Commercial :Cue Fee (the "FEE") set forth in the Fee Table;
PROVIDED, HOWEVER, that DCCI shall bill and accept payment by the applicable
Belo Station if such Belo Station has agreed in writing to make all required
payments to DCCI in accordance with the terms of this Agreement, failing such
agreement Belo will be responsible for all such payments. The Fee is payable as
provided further below in this paragraph. The foregoing notwithstanding, Belo
shall have the right prior to the commencement of the Term to telecast Content
and Promotional :Cue's free of charge in a beta environment subject to mutual
approval by Belo and DCCI with respect to the procedure for such telecasts.

         Except where stated "Not Applicable" in the attached Fee Table, Belo
will have a one-time election between the Fixed Annual License Fee and the Per
Commercial :Cue Fee arrangement, of which it will notify DCCI in writing by June
1, 2000, failing which Belo will be deemed to have elected the Fixed Annual
License Fee. The Per Commercial :Cue Fees in the attached Fee Table are for
Prime Time telecasts; non-prime time Per Commercial :Cue Fees are half of the
applicable prime-time fees. Notwithstanding the immediately preceding sentence,
if Belo, in its sole discretion, elects to treat its two (2) television station
Affiliates in Phoenix, Arizona (stations KTVK and KASW) as a single station for
purposes of the exclusivity provisions set forth in Paragraph D of the Principal
Terms (and Belo has elected to do so in relation to any license DCCI grants to a
Scripps station; i.e., Belo consents to DCCI licensing to such Scripps station),
the Fixed Annual License Fee and Per Commercial :Cue Fee applicable to KASW
shall be one-half that reflected on the Fee Table. There will be no charge for
(i) Commercial :Cues incorporated and telecast in the first three (3) months
following the Launch Date; (ii) Commercial :Cues that constitute "make good"
:Cues as provided in Section 7 of the General Terms; and (iii) Commercial :Cues
sold to Launch Partners of DCCI that are subject to the separate payment
provisions set forth in Paragraph D of the Principal Terms provided all payments
required pursuant to Paragraph D (including without limitation Paragraph D(3)
below) have been made. Under both Fee arrangements above, there is no additional
charge for Content and Promotional :Cue usage.

         During the eighteen (18)-month period of the Term commencing August 1,
2000 (the "INITIAL PAYMENT PERIOD") (without regard to any permitted extensions
of such Term), Belo will be required to pay the applicable Fixed Annual License
Fee in equal monthly installments at the beginning of each month of the Initial
Payment Period. Notwithstanding the immediately preceding sentence, if the
Launch Date does not occur on or before September 1, 2000 and Belo shall have
elected or deemed to have elected to pay the Fixed Annual License Fee, then Belo
shall automatically be switched to the applicable Per Commercial :Cue Fee until
such time as the Launch Date occurs, whereupon Belo shall return to the Fixed
Annual License Fee payment schedule, pro rated for the remainder of the Term.
The foregoing shall be Belo's sole and exclusive remedy for any failure of the
Launch Date to occur by September 1, 2000. During the First and Second Renewal
Periods, if any, the new applicable fixed annual license fee (as mutually agreed
by the parties) will apply to each twelve (12)-month period during such Renewal
Periods (i.e., such mutually agreed license fee will be paid over twelve (12)
months and not over eighteen (18) months, as is the case with the Initial
Payment Period only). The Per Commercial :Cue Fee will be payable for each
Commercial :Cue telecast during the Term and according to

                                        2
<PAGE>

the accounting and payment terms specified in the General Terms below. The Fee
shall not be reduced if Belo transmits fewer than the Permitted Number of :Cues.
The Per Commercial :Cue Fee rates reflected on the Fee Table are based on thirty
(30) second commercial spots and will be prorated up and down for commercials of
different duration. Belo shall not be entitled to receive compensation from
third parties for telecasting Content :Cues or Promotional :Cues that link to
third party websites unless the parties mutually agree in writing to a revenue
sharing arrangement as set forth more fully in Paragraph 2 of the General Terms.

         C.       BELO PROMOTIONAL REQUIREMENTS. Belo shall place the DCCI Icon
and mutually approved explanatory text on the Belo-Related Linked Websites, and
shall use commercially reasonable efforts to have such DCCI Icon and mutually
approved explanatory text placed on the Non-Belo Linked Websites on terms to be
mutually agreed by the parties. The DCCI Icon, when activated, will allow a user
to download the :CRQ Software to such user's personal computer. Belo shall place
the DCCI Icon on pages not more than one click away from the home pages of all
Belo-Related Linked Websites. Belo shall use commercially reasonable efforts to
arrange for the DCCI Icon to be placed on pages not more than one click away
from the home pages of all websites other than Belo-Related Linked Websites with
which Belo is affiliated or has a financial or other interest ("AFFILIATED
WEBSITES"); provided, that if any such Affiliated Website declines to place the
DCCI Icon not more than one click away from its home page, then such other
Affiliated Website shall not be entitled to place the DCCI Icon on its site,
unless DCCI authorized placement of the DCCI Icon thereon. Each Belo Station
shall provide a mutually agreed number of on-air mentions in support of the :CRQ
:Cue Technology and promoting the download of the :CRQ :Cue Technology. Each
Belo Station shall further provide advertising at no cost to DCCI in support of
the :CRQ :Cue Technology on a schedule and in an amount to be determined by the
parties. Without limitation of the foregoing, the Belo Stations shall use
reasonable efforts to otherwise promote the :CRQ :Cue Technology and use Content
:Cues and Promotional :Cues, including, but not limited to, on-air GRP
commitments, off-air support and an overall unified branding strategy, the
details of which will be negotiated by the Parties in good faith. Belo shall use
commercially reasonable efforts to encourage all Belo Stations to promote the
:CRQ :Cue Technology and use Content :Cues and Promotional :Cues. DCCI will
furnish Belo with the :CRQ Software in the form of a CD-ROM, which :CRQ Software
Belo shall make available to users for download from the Belo-Related Linked
Websites and Affiliated Websites on which the DCCI Icon appears, provided that
Belo shall make such software available in such a manner that on-line consumer
response does not exceed the on-line infrastructure capacities of the applicable
website. In the event that any Belo-Related Linked Website propagates the
download or the installation of :CRQ Software at that site, DCCI shall provide
to Belo prominent exclusive positioning on the face (i.e., the window or frame
in the center of the player) of those players downloaded from such Belo-Related
Linked Websites and Affiliate Websites displayed in connection with DCCI's
Virtual Network, as to be negotiated by the Parties in good faith.

         D.       LICENSE GRANT AND EXCLUSIVITY. Subject to the terms and
conditions of this Agreement, DCCI hereby grants to the Belo Stations a
non-transferable, limited exclusive license and right up to and during the Term
and solely in the Belo Markets to use the :CRQ :Cue Technology in order to
effectuate the transmission of :Cues as contemplated in this Agreement, subject
to the following terms:

         1.       TELEVISION EXCLUSIVITY: Belo Television Stations shall have
                  the exclusive right to use the :CRQ :Cue Technology in locally
                  produced or originated programming (i.e., as distinguished
                  from network or nationally syndicated programming) in free
                  over-the-air telecasts in the Belo Television Markets as
                  against all other free over-the-air broadcast television
                  stations in such market, and DCCI shall not license or allow
                  such other stations to telecast :Cues in their locally
                  produced or originated television programming within each of
                  the Belo Television Markets, PROVIDED, HOWEVER, that if only
                  one Belo Television Station serves a Belo Television Market,
                  DCCI shall have the right to license the :CRQ :Cue Technology
                  to one other free, over-the-air

                                        3

<PAGE>

                  broadcast television station in the Belo Television Market (an
                  "OTHER PERMITTED LICENSEE"), but subject to the limitation
                  that if the Belo Television Station in that Market is an ABC,
                  NBC or CBS affiliate, the Other Permitted Licensee must
                  constitute a FOX, UPN or WB affiliate. If the Belo Television
                  Station is not an ABC, NBC or CBS affiliate, DCCI may license
                  to any Other Permitted Licensee.

                  Solely for purposes of determining whether DCCI shall have
                  the right to license the :CRQ :Cue Technology to another
                  licensee in a Belo Television Market, the two Belo
                  Television Stations serving the Seattle/Tacoma DMA (KING
                  and KONG), the Spokane, Washington DMA (KREM and KSKN), and
                  the Tucson, Arizona DMA (KMSB and KTTU) shall be treated as
                  a single Belo Television Station. The two (2) Belo
                  Television Stations serving the Phoenix, Arizona DMA (KTVK
                  and KASW) shall be treated as a single Belo Television
                  Station only upon the written election of Belo, in its sole
                  discretion; provided, however, that Belo hereby agrees to
                  treat KTVK and KASW as a single station for purposes of the
                  exclusivity provision in the Phoenix, Arizona DMA to the
                  extent the Other Permitted Licensee in such Market
                  constitutes KNXV-TV, Channel 15, owned by the E.W. Scripps
                  Company. The fact that Belo Television Stations are treated
                  as a single station for purposes of the exclusivity
                  provisions shall not reduce the Permitted :Cues or the
                  Minimum :Cues for each such station under subparagraphs 4
                  and 5 of this Paragraph D, respectively. If DCCI licenses
                  to another television station in the Phoenix, Arizona DMA
                  (Belo shall be deemed to consent to DCCI's licensing to any
                  Scripps station), then the KASW Fee as set forth in the
                  attached Fee Schedule shall be $87,500 as the Fixed Annual
                  License Fee or $87.50 as the Per Commercial :Cue Fee, if
                  applicable, which adjustment shall be effective as of the
                  beginning of the Initial Payment Period.

         2.       CABLE EXCLUSIVITY: Belo Cable News Channels shall have the
                  exclusive right to use the :CRQ :Cue Technology for locally
                  produced or originated programming in the Belo Cable Markets
                  as against all locally produced or originated programming by
                  local basic cable television news channels and program
                  services in such markets and cable systems selling :Cues in
                  their local advertising availabilities.

         3.       SUBLICENSING RIGHTS: Belo's exclusivity includes the right to
                  sublicense to local advertisers the right to incorporate
                  Commercial :Cues in each such local advertiser's commercials
                  which are telecast in locally produced or originated
                  programming on (i) other free over-the-air broadcast
                  television stations in Belo's Television Markets and (ii)
                  local or regional basic cable television news channels or
                  program services in Belo's Cable News Markets, from such
                  respective station's or basic cable news channel or program
                  services' local inventory of commercial advertising time
                  (which exclusivity shall apply even as against DCCI in the
                  applicable Belo Markets, except as otherwise specified in
                  Paragraph 3 below regarding the Launch Partners and Other
                  Permitted Licensees) for telecasting Commercial :Cues within
                  the scope of the licenses granted to the Belo Stations in
                  subparagraphs 1 and 2 of this Paragraph D, but only under the
                  following circumstances:

                           (a)      Belo shall only have the right to permit
                                    advertiser Commercial :Cues to be telecast
                                    on free over-the-air broadcast television
                                    stations in Markets in which Belo has Belo
                                    Television Stations or on local or regional
                                    basic cable news channels or program
                                    services in Markets in which Belo has Belo
                                    Cable News Channels.

                                        4

<PAGE>

                           (b)      from August 15, 2000 through December 31,
                                    2000, Belo Stations may sublicense to not
                                    more than ten (10) national strategic
                                    advertiser launch partners (e.g., Coca Cola)
                                    selected by DCCI and referred to Belo (each
                                    selected national advertiser being referred
                                    to herein as a "LAUNCH PARTNER") the right
                                    to telecast Commercial :Cues on other free
                                    over-the-air broadcast television stations
                                    in Belo's Markets and local or regional
                                    basic cable television news channels or
                                    program services in Belo's Markets. If DCCI
                                    refers one or more Launch Partners to Belo,
                                    Belo shall have one (1) week from the date
                                    of each referral for each Launch Partner to
                                    determine whether to sublicense to such
                                    Launch Partner. If Belo elects to sublicense
                                    to such Launch Partner, Belo shall pay DCCI
                                    the Commercial :Cue rate for the applicable
                                    market, and Belo and DCCI shall share the
                                    excess as specified below in this paragraph.
                                    In the event Belo elects not to sublicense
                                    to such Launch Partner DCCI has referred to
                                    Belo, then DCCI shall have the right to sell
                                    Commercial :Cues directly to each such
                                    Launch Partner in the Belo Stations'
                                    respective Markets and any other market,
                                    which right shall continue for the remainder
                                    of the Term.

                           (c)      during the Term of this Agreement, Belo
                                    Stations may sublicense to advertisers the
                                    right to run Commercial :Cues on other free
                                    over-the-air broadcast television stations
                                    and local or regional basic cable television
                                    news channels or program services in Belo's
                                    Markets for such stations' or such basic
                                    cable news channels or program services'
                                    local advertisers selected in the sole
                                    discretion of such Belo Station (other than
                                    Other Permitted Licensees).

                           (d)      Belo shall use reasonable commercial efforts
                                    to ensure that Belo's sublicensing of the
                                    :Cues does not unreasonably interfere with
                                    DCCI's ability to license :Cues
                                    to Other Permitted Licensees.

                           (e)      Belo shall impose on any advertiser to whom
                                    it sublicenses rights hereunder the same
                                    requirements and restrictions that Belo is
                                    required to impose or elects to impose on
                                    advertisers telecasting :Cues on Belo
                                    Stations (including, by way of example only,
                                    restrictions on obscene or infringing
                                    content, etc.). Belo shall obtain from each
                                    permitted sublicensee all information
                                    regarding when sublicensed :Cues are
                                    telecast, the frequency with which such
                                    :Cues are telecast, the permitted television
                                    stations or cable news channels or program
                                    services on which such :Cues are telecast
                                    and the price paid and received for each
                                    such :Cue. Belo shall furnish DCCI with all
                                    of the foregoing information in accordance
                                    with the reporting provisions set forth
                                    herein. Belo shall ensure in any sublicense
                                    that it retains the right to audit the
                                    applicable books and records of each
                                    sublicensee, on its behalf and on behalf of
                                    DCCI.

                           With respect to :Cues telecast on other free
                           over-the-air broadcast television stations the
                           Commercial :Cues shall be sublicensed for a price per
                           :Cue (the "SUBLICENSE FEE") no less than the Per
                           :Commercial :Cue Fee that a Belo Television Station
                           in the applicable Market would pay DCCI for the same
                           Commercial :Cue during the Term of this Agreement.
                           With respect to :Cues telecast on other local or
                           regional basic cable news channels or program
                           services, the Commercial :Cues shall be sublicensed
                           for a price per :Cue no less than the fair market
                           value of such Commercial :Cues as negotiated by Belo

                                        5

<PAGE>

                           on an arms-length basis and approved by DCCI (such
                           approval not to be unreasonably withheld).

                           With respect to :Cues telecast on other free
                           over-the-air broadcast television stations, the
                           sublicensing Belo Television Stations shall pay DCCI,
                           with respect to each sublicensed Commercial :Cue, an
                           amount equal to the applicable Per Commercial :Cue
                           Fee plus fifty percent (50%) of the gross amount that
                           the Sublicense Fee exceeds the Per Commercial :Cue
                           Fee without any other deduction or offset by Belo
                           according to the accounting and payment terms
                           specified in the General Terms. With respect to :Cues
                           telecast on other local or regional basic cable news
                           channels or program services, the sublicensing Belo
                           Cable News Channel shall pay DCCI, with respect to
                           each sublicensed Commercial :Cue, an amount equal to
                           fifty percent (50%) of the gross amount received by
                           such Belo Cable News Channel without any other
                           deduction or offset by Belo according to the
                           accounting and payment terms specified in the General
                           Terms.

         4.       PERMITTED :CUES: For Commercial :Cues, each Belo Station is
                  permitted to telecast Commercial :Cues in an amount equal to
                  two (2) per half-hour of non-network programming not counting
                  (a) Commercial :Cues that constitute "make good" :Cues to
                  which a Belo Station is entitled pursuant to Section 7 of the
                  General Terms, (b) unauthorized :Cues as described in
                  subparagraph 6 below, and (c) sublicensed Commercial :Cues
                  granted under subparagraph 3 above. Notwithstanding the
                  foregoing, if for any calendar month beginning more than
                  thirty (30) days following the Launch Date, a Belo Station
                  fails to telecast Content :Cues during such calendar month
                  that would result in an average telecast of two (2) Content
                  :Cues per day for the entire calendar month (the "MONTHLY
                  MINIMUM"), then: (i) deficits in Content :Cues shall be
                  carried forward to subsequent calendar months and accumulate;
                  (ii) until such time, if ever, as each Belo Station shall
                  reach the Monthly Minimum, factoring in the deficits carried
                  forward from previous calendar months, such Belo Station shall
                  have the right to telecast a maximum of only one Commercial
                  :Cue for each Content :Cue telecast; and (iii) thereafter, the
                  Permitted Number of Commercial :Cues for such Belo Station
                  shall be calculated without regard to the limitation set forth
                  in the immediately preceding sentence so long as the Monthly
                  Minimum continues to be satisfied. The Monthly Minimum
                  obligation shall commence on the date the applicable Belo
                  Station, regardless of whether a Belo Television Station or
                  Belo Cable News Channel, telecasts its first :Cue. There is no
                  limitation on the number of Promotional :Cues and Content
                  :Cues that Belo Stations can telecast during the Term in their
                  programs, provided that Belo shall generally choose its level
                  of promotion and content usage such that on-line consumer
                  response does not exceed the on-line infrastructure capacities
                  of the respective Belo Stations, Belo-Related Linked Website.
                  There shall be no cross-collateralization (i.e., deferring,
                  crediting, etc.) between or among Belo Stations and/or between
                  or among kinds and number of :Cues, programming half- hours or
                  days, as applicable.

         5.       MINIMUM :CUES: Respecting Commercial :Cues charged on a
                  per-use basis, Belo will pay DCCI for a minimum of two (2)
                  Commercial :Cues per day (the "MINIMUM") for each Belo
                  Television Station at the non-prime time rate for such Belo
                  Television Station during the Term commencing three (3) months
                  after the Launch Date. Belo shall pay such Minimums regardless
                  of the number of :Cues actually telecast, but such Minimums
                  shall be creditable against the Per Commercial :Cue Fee
                  payable for :Cues actually telecast during each month without
                  credit for prior or subsequent months.

                                        6

<PAGE>

         6.       UNAUTHORIZED :CUES: Belo will provide in its agreements with
                  advertisers that, without limiting any other rights or
                  remedies, if an advertiser telecasts or otherwise exploits a
                  :Cue beyond the terms of its license with Belo or its
                  representative that the advertiser will pay, in addition to
                  the spot rate charged for commercials containing authorized
                  :Cues, a penalty equal to ten percent (10%) of the spot rate
                  for the commercial in which the :Cue was telecast as
                  liquidated damages, which penalty will be divided equally
                  between Belo and DCCI.

         7.       NEW BELO STATIONS: If during the Term, Belo acquires a
                  television station in a new DMA, or a basic cable television
                  news channel or program service in a new locality, the new
                  Belo Station will have licensing rights under this Agreement,
                  to the same extent as other Belo Stations, provided: (i) any
                  additions of Belo Stations shall be subject to the terms of
                  this Agreement, (ii) the Parties are able to agree on License
                  Fees for such additional Belo Stations, and (iii) the addition
                  of any such Belo Stations does not put DCCI in default of a
                  third party agreement or otherwise expose DCCI to any third
                  party liability.

         8.       COMMERCIAL :CUES DIRECTED TO SPECIFIC DEMOGRAPHICS: If, during
                  the Term, DCCI develops and commercially deploys the ability
                  to direct viewers to a specific website tailored to such
                  viewer based on his/her demographic profile, then DCCI shall
                  make such technology available to Belo. The premium over the
                  standard fees payable by Belo to DCCI for such targeting
                  technology shall be mutually agreed upon by the Parties, but
                  shall not exceed fifty percent (50%) of the fees set forth in
                  this Agreement.

         E.       TRADEMARKS. Subject to the terms and conditions of this
Agreement, DCCI hereby grants to the Belo Stations a non-transferable,
non-exclusive limited license and right during the Term throughout the world
to use the DCCI Icon on Belo-Related Linked Websites and Affiliated Websites,
as well as other mutually approved Non-Belo Related Websites, and the DCCI
Marks to advertise and promote the :CRQ :Cue Technology. Also, subject to the
terms and conditions of this Agreement, Belo hereby grants to DCCI a
worldwide, royalty free, fully paid-up, non-exclusive, non-transferable
license to use, reproduce and display the Belo Marks and Belo Links solely in
connection with (i) DCCI's Virtual Network and the advertising and promotion
thereof, (ii) the advertising and promotion of the :CRQ :Cue Technology, and
(iii) other uses set forth in this Agreement, provided that Belo shall have
final right of approval over the use of the Belo Marks and Belo Links in
connection with such use and such approval shall not be unreasonably
withheld, delayed or conditioned, it being understood that such approval
shall be applied to DCCI no less favorably than to any other third party.
Belo shall use commercially reasonable efforts to furnish DCCI with
pre-approvals in connection with DCCI's use of the Belo Marks and Belo Links
as soon as possible but in no event later than sixty (60) days before July 1,
2000. Without limitation of the foregoing,

                  (1)      Belo further authorizes DCCI to cause DCCI's Virtual
                           Network to appear on and in connection with
                           Belo-Related Linked Websites, and warrants and
                           represents that it has
                           the right to do so;

                  (2)      Belo agrees that the Belo Stations shall not direct
                           :Cues to any Non-Belo Linked Websites unless (a) Belo
                           first has delivered to the party or parties that own
                           and control such Non-Belo Linked Website a standards
                           and practices fact sheet, prepared by DCCI,
                           describing such :Cues, that shall include the
                           appearance of DCCI's Virtual Network on and in
                           connection therewith, and giving such party a
                           reasonable opportunity to object, and (b) Belo has
                           used reasonable commercial efforts to obtain an
                           explicit written authorization

                                        7

<PAGE>

                           from such party for DCCI to cause DCCI's Virtual
                           Network to appear on and in connection with such
                           Non-Belo Linked Website; and

                  (3)      Both Parties agree that, if Belo complies with the
                           foregoing, then to the extent that either party
                           incurs any liability, cost or expense in connection
                           with the appearance of DCCI's Virtual Network on and
                           in connection with any Non-Belo Linked Website, both
                           Parties shall contribute to each other such that such
                           liability, cost and expense is shared
                           equally.

         F.       MOST FAVORED NATIONS. Notwithstanding any other provision
of this Agreement, (i) the economic terms of the licenses to use and
sublicense to local advertisers the :CRQ :Cue Technology granted to Belo and
each of its Belo Stations under this Agreement shall be provided to the Belo
Stations, prospective as of the date of the applicable third party agreement:
(a) with respect to Belo Television Stations, on a most favored nations basis
with (I) any other free, over-the-air broadcast television station in the
applicable Belo Television Market and (II) any free, over-the-air broadcast
television stations in a comparable market to the applicable Belo Television
Market (as determined in accordance with Paragraph A(i) of the Principal
Terms) that is part of a free over-the-air broadcast group licensing
agreement with DCCI; and (b) with respect to Belo Cable News Channels, on a
most favored nations basis with local or regional basic cable channels and
program services in the respective Markets of such Belo Cable News Channels
(i.e., on a channel-by-channel or program service-by-program service basis);
(ii) during the Term of this Agreement, Belo Television Stations and Belo
Cable News Channels will be entitled to use and sublicense the :CRQ :Cue
Technology on terms and conditions no less favorable than those applicable to
NBC Stations serving Belo Markets or comparable markets (as determined in
accordance with Paragraph A(i) of the Principal Terms), and the Belo Stations
shall automatically and without any further action be granted the benefit of
such more favorable terms and conditions, and this Agreement shall be deemed
amended to reflect such more favorable terms and conditions on a prospective
basis. DCCI agrees to notify Belo in writing in the event DCCI enters into
any agreement with a third party in a Belo Market (including an NBC Station)
that contains terms and conditions more favorable than those applicable to
the Belo Station in such Market. The foregoing notwithstanding: (i) Belo
shall not be on a most favored nations basis with respect to access to
Personal Data in connection with any third party agreement; and (ii) Belo's
right to sublicense to local advertisers shall be on a most favored nations
basis only relative to other stations in comparable markets (as set forth
above) selling to local advertisers.

         G.       DCCI MARKETING AND PROMOTION SUPPORT. In support of Belo's
marketing and promotion of DCCI's technology under this Agreement, DCCI will
provide to Belo free of charge: (1) on-air radio and television spots; (2)
artwork for incorporation into advertising layouts for use in TV Guide and
newspapers; (3) customary sales and marketing support materials that DCCI may
provide Belo from time to time; and (4) deployment by DCCI of a national,
branding campaign of DCCI's technology, including, without limitation,
DCCI-funded introductory parties at each Belo location, what DCCI intends
will be an approximately $20 million national media campaign and other public
relations/promotional support. DCCI shall also provide technical support and
services in accordance with the DCCI Service Levels attached as Exhibit III
hereto, which is incorporated herein by reference; PROVIDED, HOWEVER, that if
at any time DCCI provides more favorable service level guarantees to any
other user of the :CRQ :Cue Technology, then the Belo Stations shall
automatically and without any further action be granted the benefit of such
more favorable service levels, and Exhibit III shall be deemed replaced by
such more favorable service levels.

                                        8
<PAGE>

         H.       DATA RIGHTS. The following terms shall apply to the ownership
of and access to :CRQ User Data and :Cue User Data:

         1.       DATA OWNERSHIP. All aggregated :CRQ User Data (that is not
                  Personal Data) will be jointly owned by DCCI and Belo. To the
                  extent any right, title or interest in or to any such
                  aggregated user data vests, by operation of law or otherwise,
                  in either Party, such Party shall, and hereby does,
                  irrevocably assign to the other Party a one-half, undivided
                  interest in and to any and all such right, title and interest
                  therein. Belo shall comply with DCCI's privacy policies;
                  provided, that DCCI shall not make any changes to such privacy
                  policies in bad faith in order to defeat Belo's rights to data
                  under this Agreement. All other data, including, without
                  limitation, :Cue User Data and any Personal Data shall be
                  owned exclusively by DCCI.

         2.       ACCESS TO :CRQ USER DATA: During the Term, DCCI shall provide
                  Belo with copies of all of aggregated :CRQ User Data (that is
                  not Personal Data) on a monthly basis via the delivery method
                  and in the format generally used by DCCI to provide data and
                  information to its other partners. The Parties shall work
                  together to ensure that Belo is able to access and interpret
                  such aggregated data in a cost effective manner.

         3.       ACCESS TO AGGREGATED DATA. Without limiting the foregoing,
                  DCCI shall provide Belo with copies of all aggregated data
                  (but not any Personal Data associated therewith) collected by
                  DCCI during the Term with respect to all registered users of
                  the :CRQ Software who have received a :Cue from Belo Stations
                  during the Term, including, without limitation, the number of
                  registered users, demographic data with respect to such users,
                  source of the :CRQ Software, and breakdown of the number of
                  Content :Cues, Promotional :Cues and Commercial :Cues
                  delivered, with such data to be provided to Belo via the
                  delivery method and in the format generally used by DCCI to
                  provide data and information to its other partners; provided,
                  that the amount and quality of such aggregated data provided
                  to Belo shall be no less than that provided to any other
                  partner of DCCI. The Parties shall work together to ensure
                  that Belo is able to access and interpret such data in a cost
                  effective manner.

         BY SIGNING BELOW, THE PARTIES HERETO AGREE TO BE BOUND BY THE TERMS AND
CONDITIONS OF THIS AGREEMENT, INCLUDING THE PRINCIPAL TERMS, THE GENERAL TERMS
AND THE EXHIBITS ATTACHED HERETO, WHICH
ARE INCORPORATED HEREIN BY REFERENCE.

--------------------------------------------------------------------------------
BELO INTERACTIVE, INC.                           DIGITAL CONVERGENCE.:COM INC.
--------------------------------------------------------------------------------
BY:      /s/ JIM MORONEY                         BY:      /s/ MICHAEL GARIN

--------------------------------------------------------------------------------
TITLE:  PRESIDENT, BELO INTERACTIVE, INC.        TITLE:  PRESIDENT
--------------------------------------------------------------------------------
DATE:  MAY 9, 2000                               DATE:  MAY 9, 2000
--------------------------------------------------------------------------------

                                        9
<PAGE>

                                  GENERAL TERMS

         :CRQ-TM- :CUE-TM- BROADCAST STATION AND CABLE CHANNEL AGREEMENT

1.    GRANT OF RIGHTS: SIMILAR TECHNOLOGY. All rights not specifically granted
      to Belo and each of the Belo Stations are reserved to DCCI. Belo shall not
      use any technology that is similar to any patented (or patent pending)
      technology of DCCI (including, without limitation, any technology that
      uses a sound file to launch websites, web-based information or data files
      or that could confuse the public that the technologies are related,
      similar or from the same source) ("SIMILAR TECHNOLOGY"). The foregoing
      exclusivity provision shall cover only technologies for which DCCI has
      obtained United States patent protection (or for which a patent is
      pending) and which is not subsequently found invalid or unenforceable by a
      court or administrative agency. Notwithstanding the foregoing, Belo shall
      not be precluded from engaging in business relationships with other
      interactive television platform providers, as long as such activity does
      not involve using Similar Technology. Further, the foregoing exclusivity
      provision shall not be construed to prevent Belo from broadcasting or
      otherwise exhibiting advertisements into which an advertiser may have
      incorporated technology, whether produced or developed by the advertiser
      or a third party, which DCCI may deem to be similar to the :CRQ :Cue
      Technology.

2.    USE OF :CUES; CONTENT OF LINKED SITES. Subject to Paragraph F of the
      Principal Terms, each :Cue must be telecast by the Belo Stations in its
      entirety at all times (i.e., both the complete Audio Component and the
      complete Visual Service Mark must be included) precisely in the form
      furnished to Belo by DCCI, and neither the Audio Component nor the Visual
      Service Mark may be telecast by Belo without the other component, or with
      any additional component, at any time. Except as provided in Paragraph 7
      below respecting "make goods," Belo shall not exceed the Permitted Number
      of :Cues set forth in the Principal Terms at any time. Belo agrees that
      (i) Belo-Related Linked Websites will not contain any content that is
      obscene, indecent, libelous or slanderous, or which infringes on the
      rights of third parties or which is in violation of any laws or statutes,
      (ii) all Content :Cues must link to non-commercial, content-oriented
      Linked Websites in order to be deemed Content :Cues subject to the final
      sentence of this Paragraph 2, and (iii) content-oriented Linked Websites
      may not automatically redirect viewers to commercial-oriented websites.
      Nothing in this paragraph shall be construed to forbid standard banner
      advertising, signage, requests for information, or Station-related
      announcements, which may be included (in the discretion of Belo) on each
      page of each Linked Site. Anything to the contrary contained in
      subparagraph (ii) above notwithstanding, the Parties shall negotiate in
      good faith regarding an arrangement pursuant to which Belo would be
      entitled to use Content :Cues and/or Promotional :Cues in order to link
      viewers directly or indirectly to one or more Non-Belo Related Websites,
      and pursuant to which Belo would be entitled to receive compensation;
      provided, that if such agreement is reached between Belo and DCCI, any net
      revenues actually received by Belo in connection therewith would be split
      eighty percent (80%) to Belo and twenty percent (20%) to DCCI, with the
      more specific terms of such arrangement to be mutually agreed; and failing
      such agreement, Content and Promotional :Cues must be telecast free of
      charge.

3.    REPORTS AND ACCOUNTINGS/AUDIT RIGHTS. Within forty-five days after the end
      of each Quarter, Belo shall furnish and/or cause each Belo Station to
      furnish DCCI a :Cue Report and pay the Fees due under Paragraph B of the
      Principal Terms for the prior Quarter. Upon thirty (30) business days'
      notice, each Party may inspect, or have a mutually agreeable independent
      auditor inspect, the books and records of the other Party to verify
      compliance with the accounting and tracking terms and conditions of this
      Agreement. Any such audit shall be conducted at the audited Party's
      relevant facilities during normal business hours. Each Party may invoke
      its audit rights under this Section 3 once every year during the Term of
      this Agreement and for one (1) year thereafter. The auditing Party shall
      conduct, or cause to be conducted, such audit at its own expense, except
      that the auditing Party shall be entitled to reimbursement of its auditing
      expenses by the auditing Party in the event that such audit reveals that
      the audited Party has overcharged or underpaid the other Party for an
      amount fairly valued at an amount greater than five percent (5%) of the
      proper amount, or properly valued amount, for the audited time period.
      Each Party shall only have access to those records necessary to verify the
      fees and data required to be paid and tracked, respectively, under this
      Agreement. Each party must use a Certified Public Accountant to conduct an
      audit under this Section 3. Each Party shall maintain complete and
      accurate records in accordance with sound accounting or other customary
      practices to substantiate fees or charges and will preserve such records
      for a period of at least one (1) year after the Term of this Agreement.

4.    OWNERSHIP OF MARKS AND :CUE TECHNOLOGY. Regarding the ownership of Belo
      Marks and DCCI Marks (collectively or separately referred to as the
      "MARKS"), each Party agrees that the Marks of the other Party are and will
      remain the sole property of such other Party. Neither DCCI nor Belo shall
      do anything inconsistent with such ownership. All uses by one Party of the
      other Party's Marks, including all goodwill generated by the party using
      such Marks, shall accrue and inure to the benefit of and be on behalf of
      the owner of such Marks. DCCI and Belo each agree that it shall not (i)
      register or apply for registration of any element of the other Party's
      Marks, (ii) assert any adverse claim against the other Party based upon
      its use of the other Party's Marks and/or (iii) challenge or contest the
      validity or ownership by the other Party of its Marks. DCCI and Belo each
      reserve all rights to control the use of its respective Marks, and neither
      Party shall use, change, or modify the other Party's Marks in any manner
      without prior written authorization from the owner of such Marks. DCCI and
      Belo each shall (i) cause the appropriate designation "-TM-" or the
      registration symbol "-Registered Trademark-" to be placed adjacent to the
      other Party's Marks in connection with each use or display thereof and to
      indicate such additional information as the owner of the Marks shall
      reasonably specify from time to time concerning the use of its Marks, and
      (ii) comply with all applicable laws pertaining to trademarks in force. In
      the event that either DCCI or Belo reasonably determines that its Marks
      are being used by the other Party in a manner that is inconsistent with
      the owner's quality standards and reasonably demonstrates such
      inconsistency to the other Party, the other Party will within thirty (30)
      days thereafter cure such inconsistency or cease such use. Except as
      expressly granted in this Agreement, each Party shall have no other rights
      of any kind in the Marks of the other Party. Under no circumstances will
      anything in this Agreement be construed as granting, by implication,
      estoppel or otherwise, a license to any of DCCI's or Belo's Intellectual
      Property other than the use of each Party's respective Marks in accordance
      with the terms of this Agreement. DCCI and Belo each acknowledge that the
      other's Marks are the sole property of such Party, and this Agreement
      only grants DCCI and Belo a limited right to use the Marks of the other
      Party under the terms and conditions of this Agreement. The :CRQ :Cue
      Technology, Encoding Hardware, :Cue Visual Service Mark, :Cue Audio
      Component; :CRQ Software and all related

                                       10
<PAGE>

      Intellectual Property are the sole property of DCCI. Belo shall not make
      any other use whatsoever of DCCI's hardware, software or related
      Intellectual Property or other proprietary information or materials.
      Without limiting the foregoing, Belo shall not (i) reverse assemble,
      reverse compile, reverse engineer, or disassemble DCCI's hardware,
      software or related Intellectual Property; (ii) rent, lease, modify,
      merge, create derivative works from, incorporate within any other
      software, copy or transfer copies of the DCCI's hardware, software or
      other Intellectual Property; or (iii) license or sublicense DCCI's
      hardware, software or other Intellectual Property, in whole or in part, to
      any third party unless specifically authorized in this Agreement. The
      foregoing notwithstanding, DCCI shall have no right, title or interest in
      the Belo Marks, Belo Links, content owned by Belo or content contained on
      the Belo-Related Linked Websites or other Linked Websites.

5.    PRESS RELEASES/PROMOTION/ CONFIDENTIALITY. Except to the extent required
      by applicable law or as otherwise specified herein, any use by one Party
      of the other Party's name, trademarks or service marks in any press
      releases, customer lists, marketing materials or other announcements
      concerning the matters covered by this Agreement, or for promotional,
      advertising or other purposes, shall require the other Party's prior
      written approval. Each party shall keep the terms of this Agreement
      confidential and not disclose them to any third party without the prior
      consent in writing of the other except as required by law or court order
      and except to each party's accountants and attorneys who shall also keep
      such information confidential.

6.    REPRESENTATIONS AND WARRANTIES/INDEMNITIES. DCCI and Belo each represent
      and warrant that it has the right to enter into this Agreement and grant
      the rights herein granted, and that the person executing this Agreement is
      duly authorized to do so. DCCI hereby represents and warrants to Belo, and
      covenants and agrees with Belo that (a) it is either the owner of the :CRQ
      :Cue Technology or it has the right to license to Belo the right to use
      such :CRQ :Cue Technology as licensed herein; and (b) DCCI has not
      knowingly attached or authorized the attachment of any virus, worm, Trojan
      horse or similar instrumentality to the :CRQ :Cue Technology. Belo hereby
      represents and warrants to DCCI, and covenants and agrees with DCCI that:
      (a) it will furnish DCCI with accurate, up-to-date URL addresses of Linked
      Websites; (b) Belo has, or will obtain on or prior to the time a
      particular :Cue is telecast, the right to authorize DCCI to effect links
      to all Linked Websites, and to have the Virtual Network appear on and in
      connection with Belo-Related Linked Websites, (c) when arranging to effect
      links to Linked Websites other than Belo-Related Linked Websites, it will
      provide the owners and/or operators of such Linked Websites with a notice
      prepared by DCCI and made available to the Belo Stations which shall
      contain DCCI's standard terms with respect to :Cues, and (d) Belo or its
      Affiliates have not knowingly attached or authorized the attachment of any
      virus, worm, Trojan horse or similar instrumentality to any content or
      software on the Belo-Related Linked Websites. Each party shall indemnify
      and hold the other harmless from and against any claims, suits or
      proceedings brought by or on behalf of any third party unaffiliated with
      the indemnified party, arising out of or relating to any breach of any
      representation, warranty or agreement by the indemnifying party herein
      including, without limitation all damages, losses, civil and criminal
      penalties and fines, costs and expenses including reasonable outside
      attorneys' fees incurred as a result of any such claims, suits or
      proceedings. This obligation shall survive the expiration or termination
      of this Agreement.

7.    LIMITED WARRANTIES. Except as otherwise specifically provided in this
      Agreement, the DCCI Software, the DCCI Hardware, all :Cues, and the
      services and materials being furnished by DCCI hereunder are furnished by
      DCCI under this Agreement "AS IS," without any warranties of any kind,
      whatsoever, provided that if DCCI is unable to deliver any :Cue to which
      Belo is entitled hereunder, DCCI's shall provide Belo one substitute
      "make-good" :Cue of the same type as the undelivered :Cue during the Term
      for each such undelivered :Cue or, at DCCI's election, provide a pro rata
      reduction of the Fee, and the foregoing shall be DCCI's sole obligation
      and Belo's sole and exclusive remedy for undelivered :Cues. In no event
      shall DCCI be liable for damages or the Belo Stations entitled to a refund
      in such event. EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED IN THIS
      AGREEMENT, NEITHER PARTY MAKES ANY OTHER WARRANTIES, EITHER EXPRESS,
      IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED
      WARRANTIES OF TITLE, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
      TO THE MAXIMUM EXTENT PERMITTED BY LAW, NEITHER PARTY, NOR THEIR
      RESPECTIVE EMPLOYEES, OFFICERS, DIRECTORS, AFFILIATES, AGENTS OR
      SUPPLIERS, SHALL BE LIABLE FOR ANY CONSEQUENTIAL, SPECIAL, INCIDENTAL, OR
      INDIRECT DAMAGES, OR LOST OR IMPUTED PROFITS OR ROYALTIES, LOST DATA OR
      COST OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES ARISING FROM OR
      RELATED TO THIS AGREEMENT, WHETHER FOR BREACH OF WARRANTY OR ANY
      OBLIGATION ARISING THEREFROM OR OTHERWISE, HOWEVER CAUSED AND ON ANY
      THEORY OF LIABILITY (INCLUDING NEGLIGENCE OR STRICT LIABILITY), AND
      IRRESPECTIVE OF WHETHER THE PARTY HAS ADVISED OR BEEN ADVISED OF THE
      POSSIBILITY OF ANY SUCH LOSS OR DAMAGE. UNDER NO CIRCUMSTANCES SHALL BELO
      BE ENTITLED TO SPECIFIC PERFORMANCE, INJUNCTIVE RELIEF OR OTHER EQUITABLE
      REMEDY ARISING OUT OF, OR RELATED TO THE SUBJECT MATTER OF, THIS AGREEMENT
      AND BELO WAIVES ALL RIGHTS THERETO.

8.    TERMINATION/EXPIRATION. Before the end of the Term, either Party may
      terminate this Agreement (except for those terms that survive
      termination): (i) upon thirty (30) days written notice to the other Party,
      if such other Party has defaulted in the performance of any material
      provision of this Agreement (timely accounting and payment as provided
      herein being material) and fails to cure such default prior to expiration
      of thirty (30) days after such notice; or (ii) upon written notice to the
      other Party upon: (a) the institution by or against such other Party of
      insolvency, receivership or bankruptcy proceedings or any other
      proceedings for the settlement of such Party's debts, (b) such other
      Party's making an assignment for the benefit of creditors, or (c) upon
      such other Party's dissolution or ceasing to do business. Notwithstanding
      anything stated herein, if this Agreement is terminated for any reason by
      either Party, all rights and licenses granted pursuant to this Agreement
      shall immediately revert and be fully vested in the grantor. In such
      event, each Party shall promptly return to the other Party all
      Intellectual Property, software and related documentation, hardware, or
      other goods provided by such Party hereunder, unless otherwise agreed. In
      addition, Belo shall have forty-five (45) days to submit or cause the Belo
      Stations to submit a :Cue Report and to pay any fees or cause Belo to pay
      any Fees due to DCCI pursuant to Paragraph B of the Principal Terms.
      Except as required pursuant to Section 25 of Exhibit I, following
      termination, DCCI shall have the option of terminating existing links to
      Belo-Related Linked Websites or Linked Websites effected through :Cues
      created during the Term and/or inserting a message to be displayed to
      users attempting to activate a :Cue created during the Term notifying them
      that the :Cue is no longer available. The termination or expiration of
      this Agreement,

                                       11

<PAGE>

      howsoever occasioned, shall not affect any of the provisions of this
      Agreement that are expressly or by implication to come into or continue in
      force after such termination or expiration.

9.    INFRINGEMENT INDEMNIFICATION. DCCI shall indemnify, defend and hold
      harmless Belo, the Belo Stations, their Affiliates and their respective
      officers, shareholders, agents, directors, members, employees and agents
      (the "RELATED INDEMNIFIED PARTIES"), from and against any and all losses,
      claims, liabilities, damages, costs and expenses (including, without
      limitation, reasonable outside attorneys' fees) arising out of or incurred
      by any Belo-Related Indemnified Party as a result of any actual or
      threatened third party (i.e., not an Affiliate, for the purposes of this
      Section 9) claim, action, investigation, proceeding or suit (each, a
      "CLAIM") alleging that the licensing, use, reproduction, display,
      publishing, distribution or other exploitation of the :CRQ :Cue Technology
      by any of the Belo-Related Indemnified Parties in accordance with the
      rights granted hereunder constitutes an infringement, dilution or
      unauthorized use of any patent, copyright, trademark, trade secret,
      proprietary information, right of privacy or any other proprietary right
      of any third party (collectively, an "INFRINGEMENT"). Belo similarly shall
      indemnify, defend and hold harmless DCCI and its Related Indemnified
      Parties from and against any and all Claims alleging that the licensing,
      use, reproduction, display, publishing distribution and other exploitation
      of content and/or software contained on all Belo-Related Linked Websites,
      and/or in the programming of any Belo Station, constitutes an
      Infringement, or that Belo's authorization of any such link was not
      permitted. To the extent that Belo obtains an indemnity from parties who
      own or control any and all Non-Belo Linked Websites to indemnify, defend
      and hold harmless Belo and/or its Related Indemnified Parties from and
      against Claims alleging that the licensing, use, reproduction, display,
      publishing distribution and other exploitation of content and/or software
      contained on such Non-Belo-Related Linked Websites, constitutes an
      Infringement, Belo shall indemnify, defend and hold harmless DCCI and its
      Related Indemnified Parties from such Claims to the same extent. In the
      event some or all of the :CRQ :Cue Technology is held by a court of
      competent jurisdiction to infringe a third party proprietary right, an
      injunction is obtained against use of any material portion of the :CRQ
      :Cue Technology, then DCCI shall promptly, at its option and expense,
      either: (i) procure for Belo the right to continue to use the infringing
      :CRQ :Cue Technology as set forth in this Agreement, (ii) replace or
      modify the infringing :CRQ :Cue Technology to make its use non-infringing
      while being capable of performing essentially the same functions, or (iii)
      if, using its best efforts, DCCI is unable to do either of the
      aforementioned options, then DCCI may require Belo to return the
      infringing material and shall refund to Belo any fees paid to DCCI under
      this Agreement and have the option of terminating this Agreement. The
      foregoing shall be Belo's sole remedy in the event the :CRQ :Cue
      Technology is found to be infringing.

10.   FORCE MAJEURE. The performance of the Parties shall be suspended during
      any event of force majeure, as such term is commonly understood, except
      that each Party shall have the right to terminate this Agreement in the
      event any event of force majeure lasts longer than ninety (90) days.

11.   MISCELLANEOUS. To the extent there is any inconsistency between these
      General Terms and the Principal Terms, the Principal Terms shall govern.
      Each Party shall be responsible for any and all taxes, if any, incurred by
      such Party in connection with this Agreement. Belo and DCCI are
      independent contractors under this Agreement, and nothing herein shall be
      construed to create a partnership, joint venture or agency relationship
      between Belo and DCCI. Belo has no authority to enter into agreements of
      any kind on behalf of DCCI. Belo Stations may not assign this Agreement or
      any of their rights or delegate any of their duties hereunder without the
      prior consent in writing of DCCI and any purported assignment or
      delegation without such required consent shall be null and void. This
      Agreement shall be construed in accordance with the laws of the State of
      New York. Any and all disputes, differences or controversies arising out
      of, under or in connection with this Agreement, or the breach or alleged
      breach thereof, shall be submitted to arbitration to be held in New York,
      New York under the rules and regulations of the American Arbitration
      Association before a single arbitrator, and judgment upon the award
      rendered may be entered in any court having jurisdiction thereof; except
      any claim (including defenses thereto) which potentially concerns the
      validity, enforceability or infringement of Intellectual Property owned or
      controlled by DCCI shall not be resolved by arbitration without the prior
      approval in writing of DCCI, and instead shall be resolved exclusively in
      a court of competent jurisdiction located in New York, New York, and both
      parties waive any objections to jurisdiction or venue with respect
      thereto. All notices, demands and other communications hereunder shall be
      in writing and shall be deemed to have been duly given: (i) if mailed by
      certified mail, postage prepaid, on the date three (3) days following the
      date of mailing, (ii) if delivered by overnight courier, when received by
      the addressee or (iii) if sent by confirmed telecommunication, one
      business day following receipt by the addressee at the address set forth
      at the beginning of this Agreement, or such other address as either party
      may specify in writing. This Agreement may be executed in one or more
      counterpart copies, each of which shall be considered an original, and all
      of which when taken together shall constitute one and the same agreement.
      Delivery of an executed counterpart of a signature page by telecopier
      shall be as effective as delivery of an original manually executed
      counterpart. No waiver of any breach of any provision of this Agreement
      shall constitute a waiver of any prior, concurrent or subsequent breach of
      the same or any other provisions hereof, and no waiver shall be effective
      unless made in writing and signed by an authorized representative of the
      waiving party. In the event any provision of this Agreement shall for any
      reason be held to be invalid, illegal or unenforceable in any respect, the
      remaining provisions shall remain in full force and effect. In resolving
      any dispute or construing any provision hereunder, there shall be no
      presumptions made or inferences drawn (i) because the attorneys for one of
      the parties drafted the agreement; (ii) because of the drafting history of
      the agreement; or (iii) because of the inclusion of a provision not
      contained in a prior draft, or the deletion of a provision contained in a
      prior draft. Section headings are for convenience only and are not a part
      of this Agreement. This Agreement contains the entire understanding of the
      parties hereto with respect to the transactions and matters contemplated
      hereby, supersedes all previous agreements between DCCI and Belo
      concerning the subject matter, and cannot be amended except by a writing
      signed by both parties. No party hereto has relied on any statement,
      representation or promise of any other party or with any other officer,
      agent, employee or attorney for the other party in executing this
      Agreement except as expressly stated herein.

                                       12
<PAGE>

                                    EXHIBIT I

                              ANNEX OF DEFINITIONS

1.       "AFFILIATE" means any Person that is directly or indirectly, through
         one or more intermediaries, Controlled by or under common Control with
         a Party. For purposes of this definition, "CONTROL" shall mean
         possessing, directly or indirectly, the power to direct or cause the
         direction of the management, policies and operations of a Person,
         whether through ownership of voting securities, by contract or
         otherwise.

2.       "BELO CABLE NEWS CHANNEL" means those Belo Affiliates that constitute
         owned-and-operated cable news program services or channels set forth in
         the Fee Table attached as Exhibit II hereto that transmit television
         programs over cable or via satellite; provided that any such
         service or channel not listed may be added to this Agreement only if:
         (i) any additions shall be subject to the terms of this Agreement, (ii)
         the Parties are able to agree on License Fees for such additional cable
         services or channels, and (iii) the addition of any such cable services
         or channels does not put DCCI in default of a third party agreement or
         otherwise expose DCCI to any third party liability.

3.       "BELO LINKS" means any Belo Marks, icons, buttons or other graphic
         elements that, when activated by a computer user, link such user to
         specific pages on Belo-Related Linked Websites.

4.       "BELO MARKS" mean the trademarks, trade names, service marks, logos,
         domain names and indicia owned, controlled by or licensed by Belo or
         any Affiliate relating to Belo or any Affiliate which are specified
         on Exhibit IV hereto.

5.       "BELO-RELATED LINKED WEBSITE" means each website owned and/or operated
         by Belo or a Belo Station.

6.       "BELO STATIONS" means each of the Belo Television Stations and Belo
         Cable News Channels, and other entities which DCCI may approve in
         writing from time to time.

7.       "BELO TELEVISION STATION" means those Affiliates of Belo that create
         and broadcast content and programs available to the public by means of
         free, over-the-air television, either as an owner/operator or as a
         programmer pursuant to a local marketing agreement, and which are
         listed on the Fee Table attached as Exhibit II hereto; provided that
         any such free over-the-air television station not listed may be added
         to this Agreement, provided (i) any additions shall be subject to the
         terms of this Agreement, (ii) the Parties are able to agree on License
         Fees for such additional stations, and (iii) the addition of any such
         stations does not put DCCI in default of a third party agreement or
         otherwise expose DCCI to any third party liability.

8.       ":CAT SCANNER" means a DCCI proprietary bar code scanning pen for use
         with the :CRQ Software.

9.       "COMMERCIAL :CUE" means a :Cue created by DCCI at the request of Belo
         and telecast in a commercial spot, sponsored announcement or otherwise
         where the Linked Website of the

                                       13
<PAGE>

         :Cue relates primarily to any commercial service or product (i.e., as
         opposed to relating to informational content or specific promotions of
         Belo programs).

10.      "CONTENT :CUE" means a :Cue created by DCCI at the request of Belo and
         telecast in a television program where the Linked Website of the :Cue
         relates primarily to the creative or editorial content of the program
         and where no payment or other consideration is received. All Content
         :Cues must link to non-commercial, content-oriented Linked Websites in
         order to be deemed Content :Cues, and such content-oriented Linked
         Websites may not automatically redirect viewers to commercial-oriented
         matter.

11.      ":CRQ :CUE TECHNOLOGY" means DCCI's proprietary software, hardware or
         other technology, and any Intellectual Property related thereto, used
         to transmit :Cues in a television signal and to allow personal
         computers programmed with the :CRQ Software to automatically access or
         be directed to Linked Websites (including, without limitation, the :CRQ
         Software, the Encoding Hardware, the Audio Component and the Visual
         Service Mark.

12.      ":CRQ SOFTWARE" means DCCI's proprietary software, available to
         consumers via disk, CD-ROM, download over the Internet or via such
         other means as DCCI shall determine, and that, when installed on a
         personal computer, will allow a television viewer or a user of a :Cat
         Scanner to automatically access or be directed to a Linked Website or
         data file in response to receipt of a :Cue or data from a :Cat Scanner.

13.      ":CRQ USER DATA" means (i) any and all data and information collected
         during the process through which viewers register to use the :CRQ
         Software (e.g., name, e-mail address, address, sex, age, etc.), as well
         as (ii) any and all data, information and content relating to Belo
         :Cues (but not the look, feel or presentation of such content)
         concerning :CRQ Software users collected by or on behalf of DCCI during
         the Term; provided in the case of all the foregoing: (a) such users
         have downloaded the :CRQ Software directly from Belo-Related Linked
         Websites and registered through use thereof, and (b) such users have
         not opted out of sharing such data with Belo (e.g., by affirmatively
         "un-checking" a pre-checked opt-out box stating that the user agrees to
         permit such sharing of data).

14.      ":CUE" means the simultaneous broadcast or transmission to the public
         of the :Cue Visual Service Mark with the :Cue Audio Component, which
         broadcast or transmission can remotely enable a television viewer's
         personal computer programmed with the :CRQ Software and access the
         World Wide Web to link automatically with a designated Linked Website.

15.      ":CUE AUDIO COMPONENT" means a brief audio tone (the "SCREECH") in
         which encoded information is embedded to direct the :CRQ Software to a
         designated Linked Website which is played by a television speaker. The
         Screech shall be accompanied by a sound(s) or musical phrase that is
         mutually chosen by DCCI and Belo (the "AUDIO SERVICE MARK") that is
         played by a television speaker at the minimum volume required to
         guarantee the operation of the :CRQ :Cue Technology; provided, that the
         volume of the Screech and the Audio Service Mark shall always be
         identical and shall never exceed fifty-two (52) decibels; provided,
         further, that if Belo and DCCI are unable to agree upon the specific
         sound(s) or musical phrase to be used, then a single musical note
         selected by DCCI shall be used. The :Cue Audio Component will always be
         broadcast or transmitted simultaneously with the :Cue

                                       14
<PAGE>

         Visual Service Mark. The :Cue Audio Component will be furnished by DCCI
         at the request of Belo from DCCI's server in accordance with the terms
         of this Agreement.

16.      ":CUE REPORT" means a list of all Belo :Cues telecast during each
         calendar month during the Term by Belo or any sublicensee, including at
         least an identification of the type of :Cue telecast, the originating
         Belo Station or third party station, if applicable, and the date and
         time
         when the applicable :Cue was telecast.

17.      ":CUE USER DATA" means any and all data and information collected
         during the registration process (e.g., name, e-mail address, address,
         sex, etc.), as well as any and all data, information and content
         related to Belo :Cues (but not the look, feel or presentation of such
         content) collected by or on behalf of DCCI during the Term concerning
         :CRQ Software users who have received a :Cue broadcast or transmitted
         by a Belo Station and accessed a Linked Website via such :Cue.

18.      ":CUE VISUAL SERVICE MARK" means the animated version of DCCI's service
         mark (i.e., an inverse bass-clef or such other service mark as DCCI
         shall determine) as furnished by DCCI to Belo that will give television
         viewers a visual cue that the :Cue is being transmitted; provided, that
         the animation of the :Cue shall be substantially similar to that
         demonstrated to Belo's technical staff on or before the Effective Date.
         The :Cue Visual Service mark shall appear (underscan and small screen
         title safe) in the lower right quadrant of the television or monitor
         viewing area, shall appear in a size that is (a) 40 pixels from left to
         right and (b) 32 lines from top to bottom on a conventional television
         set, and which :Cue Visual Service Mark shall always appear in its
         entirety. The :Cue Visual Service Mark shall always be broadcast or
         transmitted simultaneously with the :Cue Audio Component. The Visual
         Service Mark will be furnished to Belo by DCCI in the form of a
         graphics element prior to the commencement of the Term.

19.      "DCCI ICON" means the DCCI icon or button or other graphic element in
         the form of the :Cue Visual Service Mark, and accompanying explanatory
         text to be mutually agreed by the Parties (with Belo not to
         unreasonably withhold or delay its agreement thereto), appearing on
         Belo-Related Linked Websites or Affiliated Websites which, when
         activated by a computer user, will allow the user to download the :CRQ
         Software and which DCCI Icon will be readily legible to the average
         user.

20.      "DCCI MARKS" means the trademarks, trade names, service marks, logos,
         domain names and other indicia owned or controlled by or licensed by
         DCCI or any Affiliate relating to DCCI or any Affiliate which are
         specified on Exhibit V attached hereto.

21.      "DCCI'S VIRTUAL NETWORK" means the border controlled by DCCI
         surrounding Linked Websites accessed via the :CRQ Software and
         consisting of (i) a vertical bar on the side of the computer screen or
         monitor ("THIRD PARTY BANNER BAR"), and (ii) a horizontal bar on the
         bottom side of the computer screen or monitor ("CATEGORY TAB BAR").
         Unless modified by the viewer, the maximum width of the Third Party
         Banner Bar will be 100 pixels and the maximum height of the Category
         Tab Bar will be 60 pixels. The Third Party Banner Bar and Category Tab
         Bar will be dynamic (i.e., their size, color and other characteristics
         will be adjusted depending on the Linked Site), but the icons and text
         contained on each bar will be readily

                                       15
<PAGE>

         legible to the average user and the DCCI Virtual Network will be
         designed and delivered to the user containing HTML Size 1 links.

22.      "ENCODING HARDWARE" means DCCI's proprietary hardware that DCCI will
         furnish Belo prior to commencement of the Term for use by the Belo
         Stations use during the Term, subject to the terms and conditions of
         this Agreement, which Encoding Hardware will allow the Belo
         Stations to insert :Cues into live programming.

23.      "INTELLECTUAL PROPERTY" means all patents and patent applications;
         trademarks, service marks, and trademark or service mark registrations
         and applications, trade names, Internet domain names, and general
         intangibles of like nature, together with all goodwill related to the
         foregoing; copyrights, copyright registrations, renewals and
         applications for copyrights; trade secrets and other proprietary
         information and know-how.

24.      "LAUNCH DATE" means the date on which a package of the :CRQ Software
         and :Cat Scanner is distributed to at least five (5) million persons
         and at least five (5) million persons have loaded or downloaded the
         :CRQ Software and registered through the use thereof.

25.      "LINKED WEBSITE" means the website address (or other address acceptable
         to DCCI) furnished by Belo to DCCI in connection with each :Cue
         requested by Belo. DCCI shall enable, and Belo shall maintain, links
         from :Cues transmitted by Belo during the Term to associated Linked
         Websites for one hundred eighty (180) days from the first telecast of
         the :Cue (and Belo shall notify DCCI of such dates within thirty (30)
         days of the telecast), subject to the terms and conditions set forth in
         this Agreement; provided, that this 180-day period shall not be
         abridged with respect to any particular :Cue by any expiration of this
         Agreement or termination by Belo of this Agreement. During the Term,
         after the aforementioned 180-day period when a Belo :Cue is no longer
         in use, DCCI shall try to recycle such :Cues back to Belo when Belo
         requests a :Cue from DCCI; and during the Term (and for particular
         :Cues during the aforementioned 180-day period to the extent they may
         extend beyond the Term) shall try not to assign such :Cues to third
         parties. After the 180-day period, DCCI may terminate links to
         Belo-Related Linked Websites and/or other Linked Websites, and/or
         insert a message to be displayed to viewers activating a :Cue created
         during the Term notifying them that the :Cue is no longer available.

26.      "NBC STATIONS" means local, over-the-air, broadcast television stations
         or cable television channels or program services that are owned and
         operated by the National Broadcasting Company, Inc.

27.      "NON-BELO LINKED WEBSITES" means Linked Websites that are not
         Belo-Related Websites.

28.      "PERMITTED :CUES" means Content, Promotional and Commercial :Cues, in
         the quantities per time period specified in this Agreement.

29.      "PERSON" means an individual or a corporation, partnership, limited
         liability company, joint venture, trust or any other entity or
         organization.

30.      "PERSONAL DATA" means data relating to the personal identity of the
         party to whom the data relates, such as name, phone number, address or
         any similar information that could identify

                                       16
<PAGE>

         a party as a particular individual, which data shall not be shared with
         Belo hereunder notwithstanding any other provision contained in this
         Agreement.

31.      "PRIME TIME" means 8:00 p.m. through 11:30 p.m. in the Eastern Time
         Zone, 7:00 p.m. through 10:30 p.m. in the Central and Mountain Time
         Zones, and 8:00 p.m. through 11:30 p.m. in the Pacific Time Zone.

32.      "PROMOTIONAL :CUE" means a :Cue created by DCCI at the request of Belo
         and telecast in (i) a spot promoting programming of a Belo Station,
         (ii) in a corporate promotional spot for the Belo Station itself or
         Belo-Related Linked Website, or (iii) public service announcements and
         (iv) other promotional spots; and in all of the foregoing cases, where
         the Linked Website relates primarily to the subject matter of the
         promotion and where no payment or other consideration is received.

33.      "QUARTER" means each three (3) month period during the Term that is
         ninety (90) days following the Launch Date.

                                       17
<PAGE>

                                   EXHIBIT II

                                    FEE TABLE

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                  DMA-STATION                              FIXED ANNUAL LICENSE FEE                     PERSONAL COMMERCIAL :CUE FEE
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>                                          <C>
Dallas/Fort Worth, Texas--WFAA                                      $350,000                                          $350
------------------------------------------------------------------------------------------------------------------------------------
Houston, Texas--KHOU                                                $350,000                                          $350
------------------------------------------------------------------------------------------------------------------------------------
Seattle/Tacoma, Washington--KING                                    $350,000                                          $350
------------------------------------------------------------------------------------------------------------------------------------
Seattle/Tacoma, Washington--KONG                                   No Charge                                       No Charge
------------------------------------------------------------------------------------------------------------------------------------
St. Louis, Missouri--KMOV                                           $200,000                                          $200
------------------------------------------------------------------------------------------------------------------------------------
Portland, Oregon--KGW                                               $200,000                                          $200
------------------------------------------------------------------------------------------------------------------------------------
Charlotte, North Carolina--WCNC                                     $200,000                                          $200
------------------------------------------------------------------------------------------------------------------------------------
San Antonio, Texas--KENS                                            $100,000                                          $100
------------------------------------------------------------------------------------------------------------------------------------
Hampton/Norfolk, Virginia--WVEC                                     $100,000                                          $100
------------------------------------------------------------------------------------------------------------------------------------
New Orleans, Louisiana--WWL                                         $100,000                                          $100
------------------------------------------------------------------------------------------------------------------------------------
Louisville, Kentucky--WHAS                                          $100,000                                          $100
------------------------------------------------------------------------------------------------------------------------------------
Tulsa, Oklahoma--KOTV                                               $100,000                                          $100
------------------------------------------------------------------------------------------------------------------------------------
Spokane, Washington--KREM                                           $100,000                                          $100
------------------------------------------------------------------------------------------------------------------------------------
Spokane, Washington--KSKN                                          No Charge                                       No Charge
------------------------------------------------------------------------------------------------------------------------------------
Tucson, Arizona--KMSB                                               $100,000                                          $100
------------------------------------------------------------------------------------------------------------------------------------
Tucson, Arizona--KTTU                                               $25,000                                           $25
------------------------------------------------------------------------------------------------------------------------------------
Boise, Idaho--KTVB                                                  $100,000                                          $100
------------------------------------------------------------------------------------------------------------------------------------
Austin, Texas--KVUE                                                 $100,000                                          $100
------------------------------------------------------------------------------------------------------------------------------------
Phoenix, Arizona--KTVK                                              $350,000                                          $350
------------------------------------------------------------------------------------------------------------------------------------
Phoenix, Arizona--KASW                                             $175,000*                                         $175*
------------------------------------------------------------------------------------------------------------------------------------
*Subject to Paragraph D(1) of the
Principal terms
------------------------------------------------------------------------------------------------------------------------------------
CABLE NEWS CHANNEL** (see footnote)
         on following page)
------------------------------------------------------------------------------------------------------------------------------------
Texas                                                              $25,000                                      Not Applicable
------------------------------------------------------------------------------------------------------------------------------------
Northwest (i.e., Washington, Oregon,                               $25,000                                      Not Applicable
Idaho)
------------------------------------------------------------------------------------------------------------------------------------
Arizona                                                            $25,000                                      Not Applicable
------------------------------------------------------------------------------------------------------------------------------------
New Orleans, Louisiana                                             $15,000                                      Not Applicable
------------------------------------------------------------------------------------------------------------------------------------
Norfolk/Portsmouth/                                                $15,000                                      Not Applicable
Newport News, Virginia
------------------------------------------------------------------------------------------------------------------------------------
Louisville, Kentucky                                               $15,000                                      Not Applicable
------------------------------------------------------------------------------------------------------------------------------------
St. Louis, Missouri                                                $15,000                                      Not Applicable
------------------------------------------------------------------------------------------------------------------------------------
Tulsa, Oklahoma                                                    $15,000                                      Not Applicable
------------------------------------------------------------------------------------------------------------------------------------
Charlotte, North Carolina                                          $15,000                                      Not Applicable
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       18
<PAGE>

                                   EXHIBIT II
                                FEE TABLE (CON'T)

         ** Belo represents and warrants that it has an operational Belo Cable
News Channel and associated website in the Northwest (i.e., Washington,
Oregon, Idaho). With respect to the foregoing Belo Cable News Channel, Belo
shall pay DCCI the applicable Fixed Annual License Fee effective as of the
beginning of the Initial Payment Period, except as otherwise set forth in
Paragraph B of the Principal Terms.

         Belo represents and warrants that it has operational Belo Cable News
Channels, but no associated websites, in (a) Texas, (b) Arizona; (c) New
Orleans, Louisiana; and (d) Norfolk/Portsmouth/Newport News, Virginia. With
respect to the Belo Cable News Channel in Texas, Belo shall pay DCCI the
applicable Fixed Annual License Fee, which fee shall be due on the earliest of
the following dates: (i) the date on which Belo has launched the website for
the Texas Belo Cable News Channel; (ii) the date on which Belo telecasts the
first :Cue on the Texas Belo Cable News Channel; or (iii) January 1, 2001. The
applicable Fixed Annual License Fee shall be prorated based on the length of
the Term remaining after the earliest date set forth in the immediately
preceding sentence.

         Belo represents and warrants that it has neither operational Belo
Cable News Channels nor associated websites in (a) Louisville, Kentucky; (b)
St. Louis, Missouri; (c) Tulsa, Oklahoma; or (d) Charlotte, North Carolina.
With respect to the foregoing four (4) Belo Cable News Channels, and with
respect to the operational Belo Cable News Channels in Arizona, New Orleans,
Louisiana and Norfolk/Portsmouth/Newport News, Virginia (where Belo has
operational Belo Cable News Channels but no associated websites), Belo shall
pay DCCI the Fixed Annual License Fee on the earlier of the following dates:
(a) the date on which the applicable website becomes operational, or (b) the
date on which the applicable Belo Cable News Channel telecasts the first :Cue
on the applicable Belo Cable News Channel. The applicable Fixed Annual License
Fee shall be prorated based on the length of the Term remaining after the
earliest date set forth in the immediately preceding sentence.

         In the event DCCI during the Term wishes to enter into negotiations
with a third party cable channel or program service in a market in which Belo
does not yet have an operational Belo Cable News Channel, DCCI shall notify
Belo of the existence of such intention, whereupon Belo shall have thirty (30)
days from receipt of such notice to advise DCCI in writing that it intends to
begin operation of a Belo Cable News Channel and related website in the
applicable market within one hundred twenty (120) days from the date DCCI
furnished Belo with notice. If DCCI does not receive such notice of intention
from Belo within the foregoing thirty (30) day period, or if Belo notifies
DCCI that it will not have a Belo Cable News Channel and related website
operational by the end of the one hundred twenty (120) day period, then Belo
shall have no further rights with respect to the applicable Belo Cable News
Channel and DCCI shall be free to enter into an agreement or other arrangement
with any other third party.

                                       19

<PAGE>

                                   EXHIBIT III
                               DCCI SERVICE LEVELS

         The DCCI Service levels are intended to: (i) enable the Belo Stations
to understand clearly what level of service to expect from DCCI, (ii) enable
DCCI to understand clearly what level of service to provide to the Belo
Stations, and (iii) define what measures and actions should be taken if that
level of service is not provided.

         1.       TELEPHONE SUPPORT. DCCI shall make available to the Belo
Stations technical support via e-mail or telephone. DCCI shall provide
appropriate technical support personnel who shall have a sufficient level of
skill and experience in order to handle all reasonably foreseeable problems
with the :CRQ :Cue Technology, the Encoding Hardware, the CRQ Software, the
DCCI Virtual Network, the Encoding Hardware and the other hardware and
software used by DCCI in association therewith (the "DCCI Systems").

         2.       UPTIME. DCCI shall provide the services specified in this
Agreement such that they are available and accessible for 99.8% of the time
during each calendar month. Downtime will be not be deemed to have occurred
where the interruption is the result of circumstances or caused beyond the
reasonable control of DCCI.

         3.       SCHEDULED MAINTENANCE. DCCI shall schedule maintenance for
various nodes of its network to minimize impact on the Belo Stations. DCCI
shall schedule these windows corresponding to the recognized activity on the
network services in order to achieve that goal. A subscription based e-mail
mailing list shall be made available to each Belo Station which will announce
in advance these schedule outages and impacts.

         4.       DELIVERY OF :CUE AUDIO COMPONENTS. In order for :Cues to be
successfully deployed by the Belo Stations, the applicable Belo Station must
request and receive :Cue Audio Component from DCCI for insertion into the
audio portion of the television signal. Such request may be made by Belo
Stations via the CM Internet system made available by DCCI to the Belo
Stations. DCCI commits to delivering such Audio Components to the applicable
Belo Stations such that it is received with in two (2) hours of receipt of the
request; provided, that DCCI will not be deemed to have failed to meet this
obligation to the extent such DCCI will not be deemed to have failed to meet
this obligation to the extent such failure is due to circumstances or caused
beyond the reasonable control of DCCI.

         5.       DIRECTION TO LINKED WEBSITES. In order for viewers to obtain
the benefits of the :Cues, the viewer's Internet browser must be accurately
directed to the Linked Websites specified by the applicable Belo Station in a
timely manner. DCCI commits that if a viewer of a Permitted :Cue has complied
with DCCI's specifications regarding the installation of hardware and
software, such viewer's Internet browser will be directed to the Linked
Website specified by the applicable Belo Station within an average of thirty
(30) seconds of the time the applicable Audio Component is telecast; provided,
that DCCI will not be deemed to have failed to meet this obligation to the
extent such failure is due to circumstances or causes beyond the reasonable
control of DCCI.

         6.       PROBLEM MANAGEMENT. DCCI shall continuously monitor the
performance of its systems and shall promptly notify each Belo Station of any
bug or other problem which has or is likely to result in a failure by DCCI to
meet the standards set forth herein. If a permanent repair cannot be made, a
temporary resolution (bypass and recovery) will be implemented and a permanent
repair implemented thereafter as soon as possible. DCCI shall maintain
sufficient staff and resources in order to achieve the high level of service
described in this Agreement and this Exhibit III.

                                       20

<PAGE>

         7.       REMEDIES. In the event that any failure on the part of DCCI
to comply with the standards set forth in this Exhibit III results in the
failure of a Commercial :Cue to be properly received by viewers, then with
respect to each such failure, each affected Belo Station shall receive one (1)
"make good" Commercial :Cue plus one (1) additional free Commercial "Cue. In
the event that any series of failures on the part of DCCI to comply with the
standards set forth in this Exhibit III results in the failure of a four (4)
Content :Cues and/or Promotional :Cues to be properly received by viewers,
then with respect to each such four (4) failures, each affected Belo Station
shall receive four (4) "make good" Promotional or Content :Cues plus one (1)
additional free Promotional or Content :Cue.

         8.       CONTACT MANAGERS. Each Belo Station and DCCI shall specify
an account manager (each, an "Account Manager") who shall be the primary
points of contact for problems and inquiries under the Agreement, and each
Account Manager shall provide the Account Managers with such information and
assistance as may be reasonably requested by the Account Managers from time to
time. DCCI and each Belo Station may change its designated Account Manager by
giving the Account Managers written notice of such change.

                                       21

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