Document:

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                                                                   EXHIBIT 10.21

THE ISSUANCE OF THIS WARRANT AND THE SHARES OF COMMON STOCK PURCHASABLE UPON THE
EXERCISE HEREOF HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY
APPLICABLE STATE SECURITIES LAWS. THIS WARRANT AND SUCH SHARES OF COMMON STOCK
MAY NOT BE TRANSFERRED UNTIL INTERACTIVE NETWORK, INC. ("COMPANY") HAS BEEN
FURNISHED WITH EVIDENCE SATISFACTORY TO COUNSEL FOR THE COMPANY THAT THERE HAS
BEEN COMPLIANCE WITH ALL APPLICABLE FEDERAL AND STATE OR TERRITORIAL SECURITIES
LAWS WITH RESPECT TO THE SALE OR OTHER TRANSFER OF THE WARRANTS AND SUCH SHARES
OF COMMON STOCK INCLUDING, WITHOUT LIMITATION, AN OPINION OF COUNSEL
SATISFACTORY IN FORM AND SUBSTANCE TO COUNSEL FOR THE COMPANY THAT THE SALE OR
OTHER TRANSFER OF THE WARRANTS AND SUCH SHARES OF COMMON STOCK IS EXEMPT UNDER
FEDERAL STATE SECURITIES LAWS.

                          COMMON STOCK PURCHASE WARRANT

Date of Issuance:  __________, 2001           Warrant Certificate No. CN-_______

For value received, Interactive Network, Inc., a California corporation (the
"Company"), hereby grants to ___________ or his or its registered assigns (the
"Initial Holder") the right to purchase from the Company (the "Purchase Rights")
up to an aggregate of _____ shares (the "Shares") of the Company's Common Stock
at an initial exercise price ("Initial Exercise Price") of $0.60 per share. The
number of Shares and the Initial Exercise Price of this Warrant are subject to
adjustment pursuant to the provisions contained in this Warrant. (The terms
"Registered Holder" or "Registered Holders" shall mean herein the Initial
Registered Holder and any other Persons to which all or part of this Warrant has
been duly transferred pursuant to the terms of this Warrant.) This Warrant is
one of a series of warrants (the "Bridge Warrants") issued by the Company in its
offering of units beginning in June 2001, with each unit consisting of a
convertible promissory note in the original principal amount of $10,000.00 and a
Bridge Warrant to purchase 20,000 shares of Common Stock. Certain capitalized
terms used herein are defined in Section 3 hereof.

This Warrant is subject to the following provisions:

Section 1.  Exercise of Warrant.
            -------------------

         1.1 EXERCISE PERIOD. Subject to the provisions of Section 6 hereof, the
Purchase Rights may be exercised in whole or in part (but not as to a fractional
share of Common Stock) at any time beginning on the Date of Issuance and ending
at 5:00 o'clock p.m., Pacific time, on ____________, 2006 (the "Exercise
Period"). To the extent not exercised during the Exercise Period, the Purchase
Rights shall expire and shall not be exercisable after such Exercise Period.

         1.2 EXERCISE PROCEDURE.

                  (a) Subject to the provisions of Section 8 hereof, the
                  Purchase Rights will be deemed to have been exercised when the
                  Company has received, examined, and accepted all of the
                  following items (the "Exercise Time"):

                           (i) a duly completed and signed Exercise Agreement,
                           as described in Section 1.3 of this Agreement,
                           executed by the person exercising such Purchase
                           Rights (the "Purchaser");

                           (ii) this Warrant;

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                           (iii) if this Warrant is not registered in the name
                           of the Purchaser, a duly completed and signed
                           Assignment or Assignments in the form set forth in
                           EXHIBIT II evidencing the assignment of this Warrant
                           to the Purchaser, in which case the Registered Holder
                           will have complied with the provisions set forth in
                           Section 6 hereof;

                           (iv) a certified, cashier's or bank check or, in the
                           sole discretion of the Company, a personal check, in
                           an amount equal to the product of the Exercise Price
                           (as defined in Section 2) multiplied by the number of
                           Shares of Common Stock being purchased upon such
                           exercise; and

                           (v) an opinion of counsel as described in Section 6.2
                           hereof that the exercise of this Warrant is
                           permissible under applicable securities laws.

                  (b) Certificates evidencing the Shares of Common Stock
                  purchased upon exercise of the Purchase Rights will be
                  delivered by the Company to the Purchaser within fifteen (15)
                  days after the date of the Exercise Time. Unless all of the
                  Purchase Rights have expired or have been exercised, the
                  Company will prepare a new Warrant, substantially identical
                  hereto, representing the Purchase Rights formerly represented
                  by this Warrant which have not expired or been exercised and
                  will, within such fifteen (15) day period, deliver such new
                  Warrant to the Person duly designated for delivery in the
                  Exercise Agreement described in Section 1.2(a)(i).

                  (c) The Shares of Common Stock issuable upon the exercise of
                  the Purchase Rights will be deemed to have been issued to the
                  Purchaser at the Exercise Time, and the Purchaser will be
                  deemed for all purposes to have become the record holder of
                  such Shares at the Exercise Time.

                  (d) The issuance of certificates evidencing Shares of Common
                  Stock acquired upon exercise of the Purchase Rights will be
                  made without charge to the Registered Holders or the
                  Purchasers for any issuance tax or other cost incurred by the
                  Company in connection with such exercise and the related
                  issuance of Shares of Common Stock. Each Share of Common Stock
                  issuable upon exercise of the Purchase Rights will, upon
                  payment of the Exercise Price therefor, be fully paid and
                  nonassessable and free from all liens and charges with respect
                  to the issuance thereof, except such as may have been created
                  or caused by the Registered Holder or Purchaser.

                  (e) The Company will not close its books against the transfer
                  of this Warrant or of any share of Common Stock issued or
                  issuable upon the exercise of the Purchase Rights in any
                  manner which interferes with the timely exercise of the
                  Purchase Rights. The Company will from time to time take all
                  such action as may be necessary to assure that the par value
                  per share of the unissued Common Stock acquirable upon
                  exercise of the Purchase Rights is at all times equal to or
                  less than the Exercise Price then in effect.

         1.3 EXERCISE AGREEMENT. Upon any exercise of the Purchase Rights, the
Purchaser shall duly complete, sign, and deliver to the Company an Exercise
Agreement in the form set forth in EXHIBIT I, and, in addition, if the Shares of
Common Stock are not to be issued in the name of the Person in whose name this
Warrant is registered, the Exercise Agreement also will state the name of the
Person to whom the certificates for the Shares of Common Stock are to be issued,
and if the number of Shares of Common Stock to be issued does not include all
the Shares of Common Stock purchasable hereunder, it will also state the name of
the Person to whom a new Warrant for the unexercised portion of the Purchase
Rights is to be delivered. Such Exercise Agreement will be dated the actual date
of execution thereof.

         1.4 FRACTIONAL SHARES. If a fractional Share of Common Stock would, but
for the provision of Section 1.1 hereof, be issuable upon exercise of the
Purchase Rights, the Company will, within fifteen (15) business days after the
date of the Exercise Time deliver to the Purchaser a check payable to the
Purchaser in lieu of such fractional share in an amount equal to the difference
between the Market Price of such fractional share as of the date of the Exercise
Time and the Exercise Price of such fractional share.

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         1.5 RESERVATION OF SHARES. The Company shall reserve, out of the
authorized and unissued shares of Common Stock, a number of shares sufficient to
provide for the exercise of the Purchase Rights represented by this Warrant, and
the Company and its transfer agent, if any, are hereby irrevocably authorized
and directed at all times until the expiration of the Purchase Rights to reserve
such number of authorized and unissued shares as shall be requisite for such
purpose. The Company will supply its transfer agent with duly executed stock
certificates for such purpose. The Company will furnish to its transfer agent a
copy of all notices of adjustments, and certificates related thereto,
transmitted pursuant to this Warrant.

Section 2.  Adjustment of Exercise Price and Number of Shares.
            -------------------------------------------------

To prevent dilution of the Purchase Rights, the Initial Exercise Price of any
Purchase Rights, or the Initial Exercise Price as adjusted pursuant to this
Section 2, shall be subject to adjustment from time to time as provided in this
Section 2 (the Initial Exercise Price or the Initial Exercise Price as last
adjusted pursuant to the terms of this Section 2, as the case may be, is called
the "Exercise Price"), and the number of Shares of Common Stock obtainable upon
exercise of the Purchase Rights shall be subject to adjustment from time to time
as provided in this Section 2.

         2.1 SUBDIVISION OR COMBINATION OF COMMON STOCK. If the Company at any
time subdivides (by any stock split, stock dividend or otherwise) one or more
classes of its outstanding shares of Common Stock into a greater number of
shares, the Exercise Price of all Purchase Rights in effect immediately prior to
such subdivision will be proportionately reduced, and the number of Shares of
Common Stock obtainable upon exercise of such Purchase Rights will be
proportionately increased. If the Company at any time combines (by reverse stock
split or otherwise) one or more classes of its outstanding shares of Common
Stock into a smaller number of shares, the Exercise Price of all Purchase Rights
in effect immediately prior to such combination will be proportionately
increased, and the number of Shares of Common Stock obtainable upon exercise of
such Purchase Rights will be proportionately decreased.

         2.2 REORGANIZATION, RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE.
Any capital reorganization, reclassification, amalgamation, consolidation,
merger or sale of all or substantially all of the Company's assets to another
Person which is effected in such a way that holders of Common Stock are entitled
to receive (either directly or upon subsequent liquidation) stock, securities or
assets with respect to or in exchange for Common Stock, is referred to herein as
an "Organic Change." Prior to the consummation of any Organic Change, the
Company will make appropriate provision (in form and substance satisfactory to
the registered holders of Bridge Warrants representing a majority of the Common
Stock purchasable upon exercise of the Bridge Warrants (the "Majority Registered
Holders") to insure that each of such registered holders will thereafter have
the right to acquire and receive in lieu of or addition to the Shares of Common
Stock immediately theretofore acquirable and receivable upon the exercise of the
Purchase Rights of all of the Bridge Warrants such shares of stock, securities
or assets as may be issued or payable with respect to or in exchange for the
number of Shares of Common Stock immediately theretofore acquirable and
receivable upon exercise of the Purchase Rights of all of the Bridge Warrants
had such Organic Change not taken place. In any such case, the Company will make
appropriate provision (in form and substance satisfactory to the Majority
Registered Holders) with respect to the Registered Holder's rights and interests
to insure that the provisions of this Section 2 will thereafter be applicable to
this Warrant. The Company will not effect any such amalgamation, consolidation,
merger or sale unless, prior to the consummation thereof, the successor
corporation (if other than the Company) resulting from such amalgamation,
consolidation or merger or the corporation purchasing such assets assumes by
written instrument (in form and substance satisfactory to the Majority
Registered Holders) the obligation to deliver to each such holder such shares of
stock, securities or assets as, in accordance with the foregoing provisions,
such holder may be entitled to acquire.

         2.3 CERTAIN DISTRIBUTIONS. If the Company shall distribute to all
holders of its shares of Common Stock notes or other evidence of indebtedness or
assets (other than cash dividends not in excess of the Company's earnings for
the immediately preceding fiscal year) or Options or Convertible Securities,
then in each case the number of Shares of Common Stock thereafter obtainable
upon the exercise of the Purchase Rights shall be determined by multiplying the
number of Shares theretofore obtainable upon such exercise by a fraction, of
which the numerator shall be the then current Market Price per share of Common
Stock on the date of such distribution, and of which the denominator shall be
the then current Market Price per share of Common Stock, less the then current
Market Price of the portion of the assets, notes or other evidence of
indebtedness so distributed or of such Options or Convertible Securities
applicable to one share of Common Stock. Such adjustment shall be made whenever

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any such distribution is made, and shall become effective on the date of
distribution retroactive to the record date for the determination of
shareholders entitled to receive such distribution. In the event of a
distribution by the Company to all holders of its shares of Common Stock of
stock of a Subsidiary or securities convertible into or exercisable for such
stock, then in lieu of an adjustment in number of Shares of Common Stock
acquirable upon the exercise of the Purchase Rights, the Registered Holder of
this Warrant, upon the exercise thereof at any time after such distribution,
shall be entitled to receive from the Company, such Registered Subsidiary, or
both, as the Company shall determine, the stock or other securities to which
such Registered Holder would have been entitled if such Registered Holder had
exercised the Purchase Rights immediately prior thereto.

         2.4 CERTAIN EVENTS.

                  (a) ADJUSTMENT. If any event occurs of the type contemplated
                  by the provisions of this Section 2 but not expressly provided
                  for by such provisions, then the Company's board of directors
                  will make an appropriate adjustment in the Exercise Price and
                  the number of Shares of Common Stock obtainable upon exercise
                  of the Purchase Rights so as to protect the rights of the
                  Registered Holders of the Warrants.

                  (b) NO IMPAIRMENT. The Company will not, by amendment of its
                  charter or bylaws or through any Organic Change or other
                  reorganization, amalgamation, transfer of assets,
                  reclassification, merger, dissolution, issue or sale of
                  securities, or otherwise, avoid or seek to avoid the
                  observance or performance of any of the terms to be observed
                  or performed by the Company under this Warrant but will at all
                  times in good faith assist in the carrying out of all the
                  provisions of this Warrant and in the taking of all such
                  actions as may be necessary or appropriate in order to protect
                  the rights of the Registered Holders of this Warrant against
                  impairment.

         2.5 NOTICES.

                  (c) Immediately upon any adjustment of the Exercise Price or
                  number of Shares subject to this Warrant, the Company will
                  give written notice thereof to each Registered Holder.

                  (d) The Company will give written notice to the Registered
                  Holder at least fifteen (15) business days prior to the date
                  on which the Company closes its books or takes a record with
                  respect to any dividend or distribution upon the Common Stock,
                  with respect to any pro rata subscription offer to holders of
                  Common Stock, or for determining rights to vote with respect
                  to any Organic Change, dissolution or liquidation.

                  (e) The Company also will give written notice to the
                  Registered Holders at least fifteen (15) business days prior
                  to the date on which any Organic Change, dissolution or
                  liquidation will take place.

Section 3.  Definitions.
            -----------

For purposes of this Warrant, the following terms have the meanings set forth
below:

         3.1 "COMMON STOCK" means, collectively, the Company's common stock, no
par value, and any capital stock of any class of the Company hereafter
authorized which is not limited to a fixed sum or percentage of par or stated
value in respect to the rights of the holders thereof to participate in
dividends or in the distribution of assets upon any liquidation, dissolution or
winding up of the Company.

         3.2 "MARKET PRICE" of a share of Common Stock as of a particular date
(the "Determination Date") shall mean:

                  (a) If the Company's Common Stock is traded on an exchange or
                  is quoted on The Nasdaq National Market, the average closing
                  or last sale prices, respectively, reported for the ten (10)
                  consecutive trading days immediately preceding the
                  Determination Date;

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                  (b) If the Company's Common Stock is not traded on an exchange
                  or on The Nasdaq National Market but is quoted on The Nasdaq
                  SmallCap Market or in the over-the-counter market, the average
                  of the closing bid and asked prices reported for the ten (10)
                  consecutive trading days immediately preceding the
                  Determination Date; or

                  (c) If the Common Stock is not traded publicly, the value of
                  the Common Stock determined by the Company and the Registered
                  Holder(s) of this Warrant; provided, that if such parties are
                  unable to reach agreement within five (5) trading days after
                  the Determination Date, such Market Price shall be determined
                  by an appraiser jointly selected by the Company and the
                  Majority Registered Holders.

         3.3 "PERSON" means an individual, partnership, joint venture,
corporation, association, joint stock company, trust, unincorporated
organization and government entity or any department, agency or political
subdivision thereof.

         3.4 "SUBSIDIARY" means a corporation, partnership, joint venture,
association, joint stock company, trust, or unincorporated organization as to
which the Company has "control" (as the term "control" is defined in the
Securities Exchange Act of 1934).

Section 4.  Redemption Rights of the Company.
            --------------------------------

         4.1 This Warrant may be redeemed by the Company at any time on or
before __________, 2006 at a redemption price of $0.01 per Share, upon giving
notice of such redemption as set forth below, provided that (i) the closing sale
price of the Common Stock exceeds $1.26 per share (subject to adjustment as
provided in Section 2) for any thirty (30) consecutive trading days prior to
such notice and (ii) a registration statement covering the resale of the Shares
has been filed by the Company with the United States Securities and Exchange
Commission and is effective as of the date of such notice.

         4.2 Notice of redemption shall be mailed not less than thirty (30)
calendar days prior to the date fixed for redemption to the Registered Holder(s)
of this Warrant at his or their last registered address(es). Each such notice
shall specify the date set for redemption, the place of redemption and the
redemption price of $0.01 per Share at which each Warrant is to be redeemed, and
shall state that payment of redemption price of the Warrant will be made on
surrender of the Warrant at such place of redemption, and that if not exercised
by the close of business on the date fixed for redemption, the Purchase Rights
shall expire unless extended by the Company.

         4.3 If notice of redemption is given in compliance with this Section 4,
the Purchase Rights of this Warrant identified for redemption shall expire at
the close of business on such date of redemption unless extended by the Company.
Upon presentation and surrender of the Warrant at such place of payment
specified in the notice, the Warrant shall be redeemed at the redemption price
of $0.01 per Share.

Section 5.  No Voting Rights.
            ----------------

This Warrant does and will not entitle the Registered Holder(s) hereof to any
voting rights or other rights as a shareholder of the Company with respect to
the Shares unless and to the extent the Warrant is exercised.

Section 6.  Conditions to Exercise or Transfer of Warrant.
            ---------------------------------------------

         6.1 TRANSFER OF WARRANT. Subject to the conditions referred to in the
legend endorsed hereon and as hereinafter set forth, this Warrant and all rights
hereunder are transferable, in whole or in part, without charge to the
Registered Holder, upon surrender of this Warrant with a properly executed
Assignment (in the form of EXHIBIT II hereto) at the principal office of the
Company.

         6.2 CONDITIONS TO TRANSFER. The Registered Holder, by acceptance
hereof, agrees to give written notice to the Company before transferring this
Warrant or any part hereof, or before transferring any Common Stock issued upon
the exercise hereof, of the Registered Holder's intention to do so, describing
briefly the manner of any proposed transfer. Promptly upon receiving such
written notice, or promptly upon receiving from the Registered Holder the items
described in Sections 1.2(a)(i) through (iv) hereof, the Company shall present

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copies thereof to the Company's counsel. If, in the opinion of such counsel, the
proposed exercise or transfer may be effected without registration or
qualification of the Warrant or the Shares of Common Stock purchasable upon the
exercise hereof, under any federal, state, or territorial securities laws, the
Company, as promptly as practicable, shall notify the Registered Holder of such
opinion. The Registered Holder then shall be entitled to exercise or transfer
this Warrant or any part hereof or to dispose of Shares of Common Stock received
upon the previous exercise of this Warrant in accordance with the terms of the
notice delivered by the Registered Holder to the Company; provided, however,
that an appropriate legend may be endorsed on the Warrant or the certificates
evidencing the Shares of Common Stock purchasable upon exercise of the Warrant,
which legend sets forth the restrictions upon the transfer thereof necessary or
advisable in the opinion of counsel satisfactory to the Company to prevent
further transfers which would be in violation of Section 5 of the Securities Act
of 1933, as amended, and applicable state or territorial securities laws. If, in
the opinion of the counsel referred to in this Section, the proposed exercise or
transfer or disposition of the Warrant or Shares described in the written notice
given pursuant to this Section may not be effected without registration or
qualification of this Warrant or the Shares of Common Stock issued upon the
exercise hereof, the Company shall promptly give written notice thereof to the
Registered Holder, and the Registered Holder will limit and conduct his
activities in respect to such as, in the opinion of such counsel, are permitted
by law.

Section 7.  Right to Convert.
            ----------------

         7.1 CONVERSION RIGHT. The Registered Holder shall have the right to
require the Company to convert this Warrant (the "Conversion Right"), at any
time prior to its expiration, into shares of Common Stock as provided for in
this Section. Upon exercise of the Conversion Right, the Company shall deliver
to the Registered Holder (without payment by the Registered Holder of any
exercise price) that number of shares of Common Stock equal to the quotient
obtained by dividing (i) the value of the Warrant at the time the Conversion
Right is exercised (determined by subtracting the aggregate exercise price for
the Shares in effect immediately prior to the exercise of the Conversion Right
from the aggregate Market Price for the Shares immediately prior to the exercise
of the Conversion Right) by (ii) the Market Price of one share of Common Stock
immediately prior to the exercise of the Conversion Right.

         7.2 EXERCISE OF CONVERSION RIGHT. The Conversion Right may be exercised
by the Registered Holder, at any time or from time to time, prior to its
expiration, on any business day, by delivering a written notice (the "Conversion
Notice"), the form of which is attached hereto as EXHIBIT III, to the Company at
the offices of the Company exercising the Conversion Right and specifying (i)
the total number of Shares the Registered Holder will purchase pursuant to such
conversion, and (ii) a place, and a date not less than five (5) nor more than
twenty (20) trading days from the date of the Conversion Notice, for the closing
of such purchase.

         7.3 CLOSING OF CONVERSION RIGHT. At any closing under Section 7.2
hereof, (i) the Registered Holder will surrender the Warrant and deliver the
items described in Sections 1.2(a)(iii) (if applicable) and 1.2(a)(v), (ii) the
Company will deliver to the Registered Holder a certificate or certificates for
the number of Shares of Common Stock issuable upon such conversion, together
with cash, in lieu of any fraction of a share, and (iii) the Company will
deliver to the Registered Holder a new Warrant representing the number of
Shares, if any, with respect to which the Warrant shall not have been exercised.

Section 8.  Warrant Exchangeable for Different Denominations.
            ------------------------------------------------

This Warrant is exchangeable, upon the surrender hereof by the Registered Holder
at the principal office of the Company, for new Warrants of like tenor
representing in the aggregate the Purchase Rights hereunder, and each of such
new Warrants will represent such portion of such Purchase Rights as is
designated by the Registered Holder at the time of such surrender. The date the
Company initially issues this Warrant will be deemed to be the "Date of
Issuance" hereof regardless of the number of times new certificates representing
the unexpired and unexercised Purchase Rights formerly represented by this
Warrant shall be issued. All Warrants representing portions of the Purchase
Rights hereunder are referred to herein as the "Warrants."

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Section 9.  Replacement.
            -----------

Upon receipt of evidence reasonably satisfactory to the Company of the ownership
and the loss, theft, destruction or mutilation of any certificate evidencing
this Warrant and, in the case of any such loss, theft or destruction, upon
receipt of indemnity reasonably satisfactory to the Company or, in the case of
any such mutilation, upon surrender of such certificate, the Company will (at
its expense) execute and deliver in lieu of such certificate a new certificate
of like kind representing the same rights represented by such lost, stolen,
destroyed or mutilated certificate and dated the date of such lost, stolen,
destroyed or mutilated certificate.

Section 10. Notices.
            -------

Except as otherwise expressly provided herein, all notices given pursuant to or
in connection with this Warrant will be in writing and will be delivered
personally or by telecopy or by registered or certified mail, return receipt
requested, postage prepaid, and will be deemed to have been given when so
delivered or confirmed as received by telecopy or five (5) days after the date
on which so mailed (i) to the Company, at its principal executive offices, (ii)
to the Registered Holder of this Warrant at such Registered Holder's address as
it appears in the records of the Company (unless otherwise indicated by any such
Registered Holder), and (iii) to such other address as the Company or the
Registered Holder shall advise the other pursuant to the provisions of this
Section.

Section 11. Amendment and Waiver.
            --------------------

Except as otherwise provided herein, the provisions of the Bridge Warrants,
including this Warrant, may be amended, and the Company may take any action
herein prohibited, or omit to perform any act herein required to be performed by
it, only if the Company has obtained the written consent of the Majority
Registered Holders.

Section 12. Descriptive Headings; Governing Law; Dollar Amounts.
            ---------------------------------------------------

The descriptive headings of the several parts and paragraphs of this Warrant are
inserted for convenience only and do not constitute a part of this Warrant. The
construction, validity and interpretation of this Warrant will be governed by
the internal law, and not the conflicts law, of the State of Delaware. All
dollar amounts used herein are in United States dollars.

Section 13. Registration.
            ------------

The Company will register the resale of the Shares under the Registration
Statement on Form S-4 to be filed by the Company in connection with its proposed
merger with TWIN Entertainment, Inc.

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed and
attested by its duly authorized officers under its corporate seal and to be
dated the Date of Issuance hereof.

                                   INTERACTIVE NETWORK, INC.

Attest:                            By:_____________________________________
                                      Bruce W. Bauer
                                      Its: President and Chief Executive Officer
_________________________________

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                                    EXHIBIT I
                                    ---------

                               EXERCISE AGREEMENT
                               ------------------

To:

Dated:

The undersigned, pursuant to the provisions set forth in the attached Warrant
(Certificate No. _____), hereby agrees to subscribe for and purchase _______
shares of the Common Stock covered by such Warrant and makes payment in full at
the price per share provided by such Warrant.

                                             ___________________________________
                                             Signature

                                             ___________________________________
                                             Name Typed or Printed

                                             ___________________________________
                                             Address

                                             ___________________________________

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                                   EXHIBIT II
                                   ----------

                                   ASSIGNMENT
                                   ----------

FOR VALUE RECEIVED, ______________________________ sells, assigns and transfers
all of the rights under the attached Warrant (Certificate No. _____) with
respect to the number of shares of the Common Stock set forth below, unto:

Name of Assignee                    Address                            No. of
----------------                    -------                            Shares
                                                                       ------

Dated:                                       ___________________________________
                                             Signature

                                             ___________________________________
                                             Name Typed or Printed

                                             Witness:___________________________

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                                   EXHIBIT III
                                   -----------

                                CONVERSION NOTICE
                                -----------------

To:  Interactive Network, Inc.

Dated: ________________, 200__

The undersigned, pursuant to Section 7 of the attached Warrant Certificate
(Certificate No.____), hereby agrees to subscribe for and purchase _________
shares of Common Stock covered by such Warrant by converting other shares
covered by such Warrant according to the following formula:

________________________________  multiplied by ________________________________
Per Share Market Price                       number of shares subject to Warrant

MINUS

________________________________  multiplied by ________________________________
Exercise price per share                     number of shares subject to Warrant

DIVIDED BY

________________________________
Per share Market Price

EQUALS:_________________________

Please indicate dates and price for each day used to determine Market Price:

Dates:          _____     _____     _____     _____     _____    _____    _____
Last
Sales Price:    _____     _____     _____     _____     _____    _____    _____

                                         _______________________________________
                                         Signature

                                         _______________________________________
                                         Name Typed or Printed

                                         _______________________________________
                                         Address

                                         _______________________________________
                                         Telephone number (including area code)

                                       27<PAGE>

                              EMPLOYMENT AGREEMENT

                                       OF

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

         THIS EMPLOYMENT AGREEMENT of ____________________ (this "Agreement") is
entered into this 20th day of July 2001, and for all intents and purposes is
effective as of the 20th day of July 2001, (the "Effective Date") by and between
VENDINGDATA CORPORATION, a Nevada corporation (the "Company") and
____________________ (the "Employee").

                                    RECITALS

         WHEREAS, the Employee is currently the Company's
_________________________________________, and the Company desires to retain the
services of the Employee under the terms and conditions of this Agreement;

         WHEREAS, the Employee and the Company will receive benefits from this
Agreement, and as such, each agrees to be bound under the terms and conditions
of this Agreement, including the non-competition and non-disclosure provisions
contained herein;

         WHEREAS, the Company desires the knowledge, skills and ability of the
Employee for the benefit of the Company;

         WHEREAS, the Employee wishes to be retained by the Company in
accordance with the terms of this Agreement;

         WHEREAS, the Employee recognizes the legitimate need of the Company for
protection of its confidential information; and

         WHEREAS, the Company recognizes and acknowledges the value of the
Employee's services and deems it necessary and desirable to retain the
Employee's services for the period herein described.

         NOW THEREFORE, in consideration of the mutual promises set forth
herein, the Company and the Employee agree as follows:

         1. EMPLOYMENT. The Company hereby retains the Employee upon the terms
and conditions hereinafter set forth, and the Employee hereby accepts said terms
and conditions.

         2. TERM AND RENEWAL. Except as otherwise provided, this Agreement shall
commence as of July 20, 2001, and continue for a term of two (2) years, subject
to the early termination provisions of Article 8. Upon the expiration of this
Agreement, this Agreement shall be considered renewed for regular successive one
(1) year terms unless either party submits a notice of termination not less than
thirty (30) days prior to the end of the preceding period.

         3. DUTIES. The Company hereby retains the Employee as
__________________________________, and the Employee hereby promises to perform
the duties related thereto and to perform such other duties as the Company may,
from time to time, assign. As directed by the appropriate representative(s) of
the Company, the Employee shall also render services for and perform duties for
entities related to the Company and for persons or entities having a contractual
relationship with the Company requiring the Company to provide such services.
The Employee shall perform all of these duties at such place or places and at
such times as the Company shall in good faith require and as the interest,
needs, business, or opportunity of the Company shall require. The Company
retains the right to supervise the Employee in the performance of his duties.

         4. TIME AND EFFORTS OF EMPLOYEE. So long as this Agreement continues in
effect, the Employee promises to devote his time and energies to the business
affairs of the Company as necessary to achieve the business objectives of the
Company, to use his best efforts, skills, and abilities to promote the Company's
interest, to perform the duties described in Article 3 of this Agreement, and to
perform such other duties as may be assigned to him by the Company.

                                       22
<PAGE>

         5. COMPENSATION AND BENEFITS.

         5.1 COMPENSATION. For all services rendered by the Employee under this
Agreement and the Employee's obligations under Articles 6 and 7 herein, the
Employee shall be compensated as follows:

                  (a) BASE SALARY. From the Effective Date through August 31,
2001, the Employee shall receive the salary in effect as of the Effective Date.
Beginning September 1, 2001, the Employee shall receive a "Base Salary" of not
less than ____________________ Dollars ($_______) for each calendar year during
the term of this Agreement, or until such time as a new Base Salary is
negotiated. The Base Salary shall be reviewed and increased at least on an
annual basis, or more frequently, and shall be payable in equal semi-monthly
installments.

                  (b) STOCK OPTIONS. In addition to the Base Salary, the
Employee shall receive "Stock Options" to purchase ___________________________
(_______) shares of the Company's $.001 par value common stock ("Shares") under
the following terms and conditions:

                  (i) Upon the Effective Date of this Agreement, the Employee
         shall have a vested right to acquire ______________ (______) Shares at
         Two Dollars and Sixty Cents ($2.60) per Share and ______________
         (______) Shares at Thirty-Five Cents ($.35) per Share.

                  (ii) Upon the Employee fulfilling his obligations through the
         first year of the term of this Agreement, the Employee shall have the
         right to acquire up to an additional ______________ (______) Shares at
         Thirty-Five Cents ($.35) per Share. The Stock Options to be issued
         under this subparagraph shall be vested in the Employee on the one year
         anniversary of this Agreement, subject to the requirement that Employee
         continue to be employed by the Company on the one year anniversary of
         this Agreement.

                  (iii) Upon the Employee fulfilling his obligations, though the
         second year of the term of this Agreement, the Employee shall have the
         right to acquire up to an additional ______________ (______) Shares at
         Thirty-Five Cents ($.35) per Share. The Stock Options to be issued
         under this subparagraph shall be vested in the Employee on the second
         year anniversary of this Agreement, subject to the requirement that
         Employee continue to be employed by the Company on the second year
         anniversary of this Agreement.

                  (iv)The Stock Options must be exercised within five (5) years
         from the date the Employee's rights are vested hereunder. The Shares
         will be issued within thirty (30) days after the Employee notifies the
         Company of his intent to exercise the options under this Agreement and
         tenders the purchase price to the Company. The Company offers no
         warranty as to the tradability of the Shares or as to whether such
         Shares will be registered with the Securities and Exchange Commission.

                  (v) If the Company is to be sold, the portion of the Stock
         Options granted pursuant to paragraph 5.1(b)(i-iii) of this Agreement
         that have not yet vested shall vest in the Employee thirty (30) days
         prior to such sale.

                  (vi)If the Company is sold, all of the Stock Options granted
         to the Employee by virtue of paragraph 5.1(b) must be exercised as of
         the last business day prior to the sale of the Company, unless the
         Employee and the purchaser of the Company agree otherwise.

                  (vii) For purposes of paragraph 5(b)(v) hereof, the Company
         shall notify the Employee in writing of (1) the impending sale, (2) the
         right of the Employee to exercise the Stock Options, and (3) the terms
         and conditions of the proposed sale of the Company. For purposes of
         this Agreement, the Company shall be deemed sold if substantially all
         of its assets are sold, including patents and goodwill, or the
         Company's stock is sold or transferred causing the person or persons
         who currently have majority control of the Company to be the beneficial
         owners of less than twenty (20%) of the issued and outstanding stock of

                                       23
<PAGE>

         the Company. This paragraph does not apply to transfers of stock of the
         Company: (1) by an assignment to a revocable living trust in which the
         holder is and remains a trustee and a beneficiary, or (2) by reason of
         death of the holder. It is within the Employee's discretion to exercise
         the Stock Options prior to the proposed sale. Any Stock Options vested
         in this subparagraph shall remain vested in the Employee, whether or
         not they are exercised before the sale, under the terms of subparagraph
         (iv).

         5.2 PAYMENT OF COMPENSATION. All payments made hereunder shall be made
to the Employee, unless the Employee notifies the Company otherwise.

         5.3 OTHER BENEFITS. The Employee shall be entitled to participate on a
reasonable basis in any deferred compensation, medical reimbursement, pension,
profit sharing, thrift, savings, vacation, group insurance, or other plan or
program, and to receive any other benefits for which he is eligible and which
the Company may provide for him or for its employees generally.

         6. CONFIDENTIAL INFORMATION

         6.1 DISCLOSURE OF CONFIDENTIAL INFORMATION.

                  (a) DEFINITION. "Confidential Information" shall mean and
include: (i) all records of the accounts of customers, route books, customer
lists, and any other records and books relating in any matter to the customers
and/or suppliers of the Company (whether such records, books, or lists are
prepared by the Employee or otherwise come into the possession or use of the
Employee); (ii) any product information, technical data, know-how,
specifications, processes, drawing, sketches, formulas, computations, and any
other information of any kind whatsoever, whether written or not, concerning any
process, manufacture, composition of matter, plant, design, idea, method,
system, or plan in which the Company has a possessory interest and which becomes
known to Employee; and (iii) any accounting, sales, advertising, marketing or
management information, methods or techniques, any business plans, any computer
programs and routines of the Company and any other information of any kind
whatsoever, whether written or not, concerning, directly or indirectly, the
Company, its plans, programs or operations, which information is not generally
known in the businesses or industries in which the Company is or may become
engaged during Employee's period of employment with the Company or during the
term of this Agreement.

                  (b) RESTRICTION ON USE. Any Confidential Information received
or developed by the Employee shall be used only in the Employee's conduct of the
Company's business. The Confidential Information shall not be used by the
Employee for any other purpose unless otherwise directed or authorized in
writing by the Board of Directors. The Employee acknowledges that the Company's
primary assets consist of its gaming products and accessories. Any unauthorized
disclosure of the design or marketing of these products by the Employee shall
violate this Agreement.

                  (c) PROTECTION OF CONFIDENTIAL INFORMATION. The Company and
the Employee expressly recognize and acknowledge that any Confidential
Information disclosed to or developed by Employee will not, at any time either
during or after the term of this Agreement, in any manner, either directly or
indirectly, be divulged, disclosed, or communicated to any person, firm or
corporation, or any other business entity by the Employee, nor shall the
Employee use for his own benefit for any purpose other than the exclusive
benefit of the Company, its subsidiaries, successors, or assigns, Confidential
Information or any information whatsoever concerning matters effecting or
relating to the business of the Company which the Employee knows or has reason
to know would be valuable to competitors or potential competitors of the
Company, including, but not limited to, Confidential Information or information
relating to the Company's relationships with actual or potential customers or
suppliers and to the needs and requirements of any such actual or potential
customers. Furthermore, but not by way of limitation of the foregoing, the
Employee shall not: (i) make known to any firm, person or corporation the names
or addresses of any of the customers of the Company or any other information
pertaining to them; or (ii) call on, solicit, or take away or attempt to call
on, solicit, or take away any of the customers of the Company on whom the
Employee called or with whom he became acquainted during his tenure with the
Company, either for himself or for any other person, firm or corporation.

                                       24
<PAGE>

         6.2 BOOKS AND RECORDS. The Employee further promises that he shall not,
without the prior written approval of the Company, make copies of any books,
drawings, documents, records, or other written or printed, photographic,
encoded, taped, electrostatically or electromagnetically encoded data or
information of whatever nature (the "Documents") of the Company; that he shall
not, without the prior written approval of the Company, remove any of the
foregoing from the premises of the Company, and that he shall not, without the
prior written approval of the Company, make available to third parties access to
the Documents of the Company. The Employee agrees that all records and books
relating in any manner whatsoever to the customers (whether actual or potential)
of the Company, whether prepared by the Employee or otherwise coming into his
possession, shall be the exclusive property of the Company regardless of who
actually purchased or created the original book or record. All such books and
records shall be immediately returned to the Company by the Employee upon any
termination of this Agreement. If the Employee purchases an original book or
record, he shall immediately inform the Company, which shall immediately
reimburse the Employee.

         6.3 LIMITATION. Nothing contained in this Article or in any other part
of this Agreement shall restrict the ability of the Employee to make, with the
written consent of the Company and in the ordinary course of his employment,
such disclosures as may be necessary or appropriate for the effective and
efficient discharge of his duties to the Company.

         6.4 TERM. Notwithstanding any other provision of this Agreement, the
provisions of this Article 6 shall continue in full force and effect following
the expiration or termination of this Agreement.

         7. EMPLOYEE'S COVENANT NOT TO COMPETE

         7.1 COVENANT NOT TO COMPETE.

                  (a) GENERAL. The Company and the Employee expressly recognize
and acknowledge that the Company is engaged in a business which is highly
competitive, that any knowledge of the Company's Confidential Information or
business affairs would give a competitor or potential competitor an unfair
competitive advantage over the Company, that consulting or employment, directly
or indirectly, of the Employee anywhere in the area in which the Company
conducts its business (including, but not limited to gaming and non-gaming,
security and productivity equipment and products) would give to such competitor
an unfair competitive advantage, and that the Employee possesses valuable skills
and knowledge. In recognition of the aforementioned, the Employee and the
Company hereby expressly agree that the restrictions on competition by the
Employee contained in this Article 7 are reasonable, will not overburden the
Employee, and are in the best interests of both the Employee and the Company.

                  (b) TIME PERIOD AND AREA COVERED. The Employee promises that,
during the term of this Agreement, as set forth in Article 2 hereof, and for a
period of one (1) year after the expiration or termination of this Agreement, he
shall not, either directly or indirectly, engage in competition with the
Company, or with any subsidiary, successor or appointee of the Company, as
constituted during the term of this Agreement as of his resignation, departure,
discharge or termination with the Company in Nevada, and within a fifty (50)
mile radius of any other: (i) place of business operated by the Company or (ii)
location, establishment or business where the equipment, product, or technology
of the Company is operating as of such date. The Employee acknowledges that the
Company's business is national and international in scope and that the
solicitation of the Company's domestic or international clients in competition
with the Company is a violation of this Agreement.

                  (c) AFFILIATIONS COVERED. The Employee further promises that,
during the term of this Agreement, as set forth in Article 2 hereof and for a
period of one (1) year after the expiration or other termination of this
Agreement, he shall not engage, directly or indirectly, as a proprietor,
partner, shareholder, director, officer, employee, agent, or in any other
capacity or manner whatsoever, in any business activity competitive with the
business of the Company or of any subsidiary, successor or appointee of the
Company, as constituted during his employment.

                  (d) BOARD OF DIRECTORS APPROVAL. Either or both of the
provisions contained in Subsections (b) and (c) above may be waived at any time
in writing by the Board of Directors of the Company, in its sole discretion. No
such waiver shall be considered as a waiver of any other term, covenant or
provision of this Agreement, nor shall it be considered a waiver of any
subsequent action by the Employee.

                                       25
<PAGE>

         7.2 LIMITATION. Nothing contained in this Article 7 shall prevent the
Employee from purchasing or causing or permitting to be purchased for his direct
or indirect benefit, securities of any corporation whose securities are
regularly traded on any national or regional securities exchange; provided,
however, that such purchase must not, without the written approval of the
Company, result in the direct or indirect beneficial ownership of more than one
percent of any outstanding class of equity securities of any corporation engaged
directly or indirectly in any trade or business activities competitive with that
carried on by the Company.

         8. TERMINATION

         8.1 GROUNDS FOR TERMINATION. This Agreement shall terminate as it
relates to the Employee upon the first to occur of the following events:

                  (a) The death of the Employee;

                  (b) Immediately upon five (5) days written notice from the
Company to the Employee "for cause". "For cause" is defined as:

                  (i) a breach of the terms and conditions of this Agreement by
         the Employee (other than a breach described in subparagraph 8.1(b)(ii)
         herein below), including the performance of the Employee's obligations
         and duties hereunder, which remains uncured for a period of twenty (20)
         days after written notice by the Company to the Employee of any such
         breach; or

                  (ii) a breach of the terms and conditions of this Agreement by
         the Employee, which consists of dishonest or criminal conduct, or which
         constitutes gross negligence by the Employee in failing to perform his
         duties and obligations under this Agreement.

                  (c) Upon the passing of fifteen (15) days after notice from
the Company to the Employee of a bona fide decision by the Company to terminate
its business.

         8.2 SEVERANCE PAY. If this Agreement is terminated for any reason,
other than for a reason under Section 8.1, the Company shall pay the Employee,
upon termination, severance pay in a one time lump sum equal to seven (7) months
of the Employee's Base Salary in effect at the time of severance.

         8.3 EFFECT OF TERMINATION ON STOCK OPTIONS. Under no circumstances
shall the Employee be entitled to any Stock Option that has not vested or
accrued prior to the Employee's termination.

         8.4 EFFECT OF TERMINATION ON ARTICLES 6 AND 7. Notwithstanding the
provisions of this Article, the provisions of Articles 6 and 7 will not
terminate upon the occurrence of an event described above, but will continue in
full force and effect for the periods described in those Articles. The severance
pay shall constitute additional consideration for the enforcement of such
provisions.

         9. MISCELLANEOUS

         9.1 ASSIGNMENT OF AGREEMENT. The knowledge and skills of the Employee
are unique, and his services bargained for by this Agreement may not be
delegated by the Employee to any other person. This Agreement shall inure to the
benefit of and be binding upon the Employee and his testate or intestate
distributees, and the Company, its successors and assigns including, without
limitation, any person, partnership, trust, corporation or other legal entity
which may acquire all or substantially all of the Company's assets or which may
acquire a controlling interest, either direct or beneficial, in the Company or
with or into which the Company may be consolidated or merged. As used in this
Agreement, the term "Company", shall include any such successors or assignees.

         9.2 REMEDIES. It is agreed that any breach of Article 6 or 7 of this
Agreement by the Employee will result in irreparable injury to the Company and
will authorize recourse by the Company to equitable remedies, including, but not
limited to, affirmative or negative injunctive relief. It is further agreed that
in the event of such breach, violation, or evasion of any of the Articles
hereinbefore mentioned, or of any other Article herein, the Company may
forthwith terminate this Agreement and thereafter be released from all claims of
the Employee hereunder, provided, however, that such a termination shall not

                                       26
<PAGE>

release the Employee from any warrant, covenant, term, or condition under
Articles 6 or 7 of this Agreement. Nothing contained herein shall be deemed to
obligate the Company to undertake such termination, and nothing contained herein
shall be deemed to preclude the Company from pursuing any remedy, whether legal
or equitable, which is available to it in the event of any breach, violation or
evasion of any Article of this Agreement.

         9.3 ENFORCEMENT COSTS. The prevailing party shall be entitled to all
costs of enforcing this Agreement, regardless of whether an action at law or in
equity is commenced or maintained, including but not limited to, court costs and
reasonable attorneys' fees.

         9.4 WAIVER OF BREACH. The waiver of the breach of any term or condition
of this Agreement shall not be deemed to constitute the waiver of any other or
subsequent breach of the same or any other terms or conditions.

         9.5 SEVERABILITY. All terms and conditions contained in this Agreement
are severable, and in the event that any of them shall be held or considered to
be unenforceable by any court of competent jurisdiction, this Agreement shall be
interpreted as if such unenforceable term or condition was not contained herein.

         9.6 APPLICABLE LAW. This Agreement shall be governed by and interpreted
according to the laws of the State of Nevada. Each party submits to the personal
jurisdiction of all courts, whether Federal or State, within Nevada, and agrees
that any action pertaining to this Agreement shall be brought in a court in
Clark County, Nevada.

         9.7 NOTICE. Any notice required or permitted to be given under this
Agreement shall be sufficient if in writing, and if sent by registered mail to
his last residence as recorded on the records of the Company in the case of the
Employee, or to the principal office of the Company, in the case of the Company.

         9.8 MODIFICATION OF AGREEMENT. No waiver or modification of this
Agreement or of any terms or conditions contained herein shall be valid unless
in writing and signed by the parties hereto.

         9.9 GENDER, NUMBER, ETC. Where applicable, the singular includes the
plural, the masculine includes the feminine, and vice versa.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                        VENDINGDATA CORPORATION

                                        BY:___________________________________
                                             Steven J. Blad
                                        Its: President & Chief Executive Officer

                                        EMPLOYEE

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

                                       27

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