Document:

<PAGE>

                                                                    EXHIBIT 10.4

                            CLOTHING SOURCE OF CA INC
                                  A DIVISION OF
                            BERGAMO ACQUISITION CORP

13101 WASHINGTON BLVD # 122 LA CA 90066   Tel: 310.566.7330    Fax: 310.566.7332
e:mail: BERGAMOCORP@AOL.COM               Car: 310.877.8584    Car: 714.936.9555
        -------------------
WEB    :  clothingsourceinc.com

05/15/2002
From   :  Clothing Source of California Inc Division of Bergamo Acquisition Corp
To: Jeff Port,
Wish Licensing LLC.

Dear Jeff Port,

This Letter is to confirm our Telephone Conversations of August 14th and 15th of
2002 and your fax communication of August the 14th 2002. Enclosed is the check
number 0132 drawn on Cal Fed Dated August 15th 2002 this is a Personal Check of
Sohail Parekh Sec Treasurer and CFO of Clothing Source of California Inc and
Bergamo Acquisition Corp. This Check for $25000.00 made out to Wish Licensing
LLC on behalf of Clothing Source of California Inc and Bergamo Acquisition Corp
is to cover the scheduled License royalty payment of Sept 1st 2002 to secure the
SAVE THE CHILDREN Agreement.

We have given you a copy of the Deposit slip and the check which was deposited
to Mr. Parekh account to indicate to you that the funds are on deposit and a
copy the availability of funds transaction from the Bank. This can be verified
by the operations Manager who's name is on the slip.

*2. This payment of $25000.00 is to secure for Clothing Source of California Inc
and Bergamo Acquisition Corp the sole and only right of sales representation
covered by the License agreement through Wish Licensing LLC for the Save the
Children Brand. There can no other sales representation of this brand except and
unless the parties Clothing Source of California Inc, Bergamo Acquisition Corp
and Wish Licensing LLC mutually agree.

*3. The Parties Clothing Source of California Inc, Bergamo Acquisition Corp and
Wish Licensing LLC also agree and acknowledge that this payment also secures the
sole right of sales representation to Clothing Source of California Inc and
Bergamo Acquisition Corp for the Dillards Stores to the Licensed products
covered by Wish Licensing LLC for Care Bears, Strawberry Short Cake, and any
other labels the parties may agree to. The exclusive sales rights Care Bears,
Strawberry Short Cakes; extends to all products sold by Clothing Source of
California Inc and Bergamo Acquisition Corp to the Lingerie Sleep Wear Lounge
Wear Missy and or Junior Department of Lingerie. As previously agreed to a 5%
sales commission will be paid to CSC INC AND BERGAMO ACQUISITION CORP against
the net sales invoice. In addition Wish has agreed to a price structure for the
sale of its merchandise any amount above and beyond the 5% commission. For
Dillard's only do these sales representation rights apply unless mutually agreed
in writing.

4. This agreement must be signed and acknowledged by all of he parties. The
acceptance and deposit of this check in and of itself will constitute and
agreement to all of the above. Please fax your signed copy to the following fax
number. Fax 214 747 6191 Attention Hillard Herzog or Sohail Parekh.

*Valid only if check #0132 is good by 08/19/02 latest.

Acknowledged by,            Acknowledge by,         Acknowledge by,

/s/Hillard Herzog           /s/ Sohail Parekh       /s/ Jeff Port
Hillard Herzog              Sohail Parekh           Jeff Port
CEO                         Sec Treasurer CFO       President Wish Licensing LLC
CSC INC. &                  CSC INC &
Bergamo Acquisition Corp    Bergamo Acquisition Corp<PAGE>

                                                                    EXHIBIT 10.5

                               eOFFICESUITES, INC.
                                  OFFICE LEASE
                                BASIC PROVISIONS
                                ----------------

A.       PARTIES. This Lease ("Lease") dated for reference purposes only,
         October 16, 2001, is made by and between eOfficeSuites, Inc., a
         California corporation (hereinafter "Landlord") and CLOTHING SOURCE OF
         CALIFORNIA, INC. (hereinafter "Tenant"), (collectively the "Parties,"
         or individually a "Party").

B.       PREMISES: That certain Suite commonly known by space number 122
         (hereinafter "Premises") as shown on Exhibit "B" attached hereto and
         located within an office building, and street address of 13101
         Washington Boulevard, in the City of Culver City, County of Los
         Angeles, State of California ("Building").

C.       TERMS: SIX MONTHS AND MONTH TO MONTH THEREAFTER ("Original Term")
         commencing October 16, 2001 "Commencement Date"), and ending April 15,
         2002 ("Ending Date"). Either party is required to give a minimum of 60
         days written notice prior to a change in any lease term including
         notice to vacate by tenant. To the extent that tenant vacates space
         prior to month-end, tenant will be obligated to pay rent through and
         including the end of the month in which tenant intends to vacate the
         space. Tenant is required to provide a written notice prior to a change
         in any lease term including notice to vacate by tenant.

D.       RECURRING MONTHLY RENT
         ----------------------

         Monthly base rent payable on the first day of each month commencing
         October 16, 001. A late fee will be charged of ten percent (10%) of any
         amount due if more than five (5) days late.

E.       BASE RENT                                                     $995.00
         ---------

F.       ADDITIONAL RENT:
         ----------------

(i)    Telephone lines and voice mail(s)     Three lines      $150.00
(ii)   Additional telephones line/s                              0.00
(iii)  Additional phone instrument/s                             0.00
(iv)   T-1 Internet port                     One port           $0.00
(v)    Voice Mail                            Included            0.00
(vi)   Parking Space/s                       1 parking         $75.00
(vii)  Storage Space/s
(viii) Kitchen service                       1 person          $25.00
(ix)   Other

RECURRING ADDITIONAL RENT                                     $250.00
-------------------------

TOTAL MONTHLY RENT                                                     $1245.00
------------------
NON RECURRING EXPENSE
---------------------
Move-In Fee: Phones, T-1, Signage, Furniture                  $250.00
T-1 internet service installation            Waived              0.00
Phone/fax line installation                  Waived              0.00
Security Deposit                             -1 month       $1,245.00
PRO-RATED AMOUNT: DUE NOV 1ST: $622.50

AMOUNT DUE ON ACCEPTANCE                                               $2,740.00

<PAGE>

K.       PERMITTED USE: N/A

L.       PARKING SPACES.  Tenant is granted 1 reserved parking space(s) and 0
         unreserved spaces.

M.       ADDENDA. N/A.

N.       FURNISHING. Landlord will provide office furniture to Tenant for use in
         the Premises as more particularly described in Exhibit "C" attached
         hereto.

O.       SERVICES INCLUDED WITH BASE MONTHLY RENT
         ----------------------------------------
                  Voice mail; (ii) 5 per office - totaling five hours free use
                  of furnished conference room or office for meetings per month
                  (not cumulative). Additional hours of use will be billed at
                  the rate established in the Price Schedule; (iii) Company name
                  identification on suite door and on Building directory; (iv)
                  Daily mail sorting; (v) Telephone system, professional staff
                  to answer phone; (vi) Janitorial services and utilities
                  (excluding telephone).

P.       SERVICES NOT INCLUDED IN THE BASE MONTHLY RENT
         ----------------------------------------------
                  (i) Word processing, facsimile, postage, photocopying and
                  other support service; (ii) High speed Internet access; (iii)
                  E-Mail; (iv) Web Hosting<PAGE>

                                                                    EXHIBIT 4.1

                PATENT, TRADEMARK AND LICENSE SECURITY AGREEMENT
                ------------------------------------------------

                  THIS PATENT, TRADEMARK AND LICENSE SECURITY AGREEMENT
("Security Agreement") made as of the 31st day of December, 2002, by TWO WAY TV
(US) INC. a Delaware corporation ("Debtor"), in favor of PERKINS CAPITAL
MANAGEMENT, INC., as secured party and as agent ("Agent") for the additional
secured parties identified on EXHIBIT A attached hereto (collectively, with
Agent, the "Existing Secured Parties").

                              W I T N E S S E T H:
                              --------------------

                  WHEREAS, Debtor is indebted to the Existing Secured Parties
pursuant to certain Amended and Restated 10% Convertible Promissory Notes in the
aggregate principal amount of $1,625,000 (the "Notes").

                  WHEREAS, as provided in the Notes, Debtor anticipates that it
may become indebted to one or more persons or entities (herein, the "Future
Secured Parties" and, together with the Existing Secured Parties, the "Secured
Parties") in connection with additional financing of the Debtor in 2003 (the
"2003 Funding"), in an amount, if any, equal to the difference between
$2,700,000 and the sum of (i) the then-current balance of principal and interest
outstanding under all promissory notes issued pursuant to the 2002 Funding, plus
(ii) the amount of the royalty (the "Royalty") received by the Company from Two
Way TV Limited ("Two Way UK") in the approximate amount of $293,000 within the
time period prescribed in that certain Amended and Restated Termination and
License Agreement ("License Agreement") dated as of May 31, 2002 by and between
the Company and Two Way UK (such difference, if any, is referred to herein as
the "Shortfall").

                  WHEREAS, as set forth in the Notes, the Holder has agreed that
the Company may raise the 2003 Funding if Two Way UK does not pay the Royalty
within the time period prescribed by the License Agreement and that the
providers of the 2003 Funding may be granted a security interest in the
Company's assets on a pro rata basis with the holders of the Notes.

                  WHEREAS, Debtor has agreed to secure the Notes and any
indebtedness arising pursuant to the 2003 Funding, in an amount not to exceed
the Shortfall, if any, by this Security Agreement.

                  NOW, THEREFORE, in consideration of the premises set forth
herein and for other good and valuable consideration, the receipt, sufficiency
and adequacy of which are hereby acknowledged, Debtor agrees as follows:

<PAGE>

                  1. CAPITALIZED TERMS. All terms capitalized but not otherwise
defined herein shall have the same meanings herein as in the Notes.

                  2. SECURITY AGREEMENT OF PATENTS, TRADEMARKS AND LICENSES. To
secure the complete and timely satisfaction of all of Debtor's liabilities,
debts and obligations relating to or arising under the Notes and the 2003
Funding, if any (collectively, the "Debtor's Liabilities"), Debtor hereby
grants, bargains, assigns, mortgages, pledges, sells, creates a security
interest in, transfers and conveys to Agent, for the benefit of Agent and
Secured Parties, as and by way of a first mortgage and security interest having
priority over all other security interests, with power of sale, to the extent
permitted by law or by the specific license agreements, upon the occurrence of
an "Event of Default" (as defined in the Notes) all of Debtor's right, title and
interest in and to all of its now existing and hereafter created or acquired:

                  (i) patents and patent applications including, without
         limitation, the inventions and improvements described and claimed
         therein, and those patents listed on EXHIBIT B attached hereto and
         hereby made a part hereof, and (a) the reissues, divisions,
         continuations, renewals, extensions and continuations-in-part thereof,
         (b) all income, damages and payments now and hereafter due or payable
         under or with respect thereto, including, without limitation, damages
         and payments for past or future infringements thereof, (c) the right to
         sue for past, present and future infringements thereof, and (d) all
         rights corresponding thereto throughout the world (all of the foregoing
         patents and applications, together with the items described in clauses
         (a)-(d) of this subsection 2(i), are sometimes hereinafter referred to
         individually as a "Patent" and, collectively, as the "Patents");

                  (ii) trademarks, trademark registrations, trademark
         applications, tradenames and tradestyles, service marks, service mark
         registrations and service mark applications including, without
         limitation, the trademarks, tradenames, service marks and applications
         and registrations thereof listed on EXHIBIT C attached hereto and
         hereby made a part hereof, and (a) renewals or extensions thereof, (b)
         all income, damages and payments now and hereafter due or payable with
         respect thereto, including, without limitation, damages and payments
         for past or future infringements thereof, (c) the right to sue for
         past, present and future infringements thereof, and (d) all rights
         corresponding thereto throughout the world (all of the foregoing
         trademarks, tradenames and tradestyles, service marks and applications
         and registrations thereof, together with the items described in clauses
         (a)-(d) of this subsection 2(ii), are sometimes hereinafter referred
         individually as a "Trademark" and, collectively, as "Trademarks");

                  (iii) all license agreements with respect to any of the
         Patents or the Trademarks or any other patent, trademark, service mark
         or any application or registration thereof or any other tradename or
         tradestyle between Debtor and any other party, whether Debtor is a
         licensor or licensee under any such license agreement including,
         without limitation, the licenses listed on EXHIBIT D attached hereto
         and hereby made a part hereof (all of the foregoing license agreements
         and Debtor's rights thereunder are referred to collectively as
         "Licenses"); and

                                       2
<PAGE>

                  (iv) the goodwill of Debtor's business connected with and
         symbolized by the Trademarks.

                  3. WARRANTIES AND REPRESENTATIONS. Debtor warrants and
represents to Secured Parties that:

                  (i) The Patents, Trademarks and Licenses have not been
         adjudged invalid or unenforceable and have not been cancelled, in whole
         or in part, and are presently subsisting;

                  (ii) Each of the Patents, Trademarks and Licenses is valid and
         enforceable;

                  (iii) Debtor is the sole and exclusive owner of the entire and
         unencumbered right, title and interest in and to each of the Patents,
         Trademarks and Licenses, free and clear of any liens, charges and
         encumbrances including, without limitation, licenses, shop rights and
         covenants by Debtor not to sue third persons; provided, however, that
         (a) Two Way TV (UK), Ltd. ("Ltd.") has certain rights to use certain of
         the Debtor's Patents, Trademarks and/or Licenses pursuant to the
         License Agreement, and (b) Ltd. has certain rights to the property
         licensed to Debtor pursuant to the License Agreement, and the
         assignments, pledges, security interests and other grants and transfers
         to Agent and Secured Parties hereunder are subject to all such rights
         and interests;

                  (iv) Debtor has adopted, used and is currently using all of
         the Trademarks;

                  (v) Debtor has no notice of any suits or actions commenced or
         threatened with reference to the Patents, Trademarks or Licenses, other
         than a pending lawsuit in Canada between Interactive Network, Inc.
         (which merged into Debtor in April 2002) and NTN, in which NTN has made
         certain allegations as to the invalidity of one or more of the Patents
         (the "NTN Litigation"); and

                  (vi) Debtor has the right to execute and deliver this Security
         Agreement and perform its terms.

                  4. RESTRICTIONS ON FUTURE AGREEMENTS. Debtor agrees that until
Debtor's Liabilities shall have been satisfied in full, Debtor shall not sell or
assign its interest in, or grant any license under, the Patents, Trademarks or
Licenses, or enter into any other agreement with respect to the Patents,
Trademarks or Licenses which is inconsistent with Debtor's obligations under
this Security Agreement, without the prior written consent of Agent, and Debtor
further agrees that it shall not take any action, or permit any action to be
taken by others subject to its control, including licensees, or fail to take any

                                       3
<PAGE>

action (solely with respect to the Patents and the Trademarks), which would
affect the validity or enforcement of the rights transferred to Secured Parties
under this Security Agreement; provided, however, that Agent's consent shall not
be required for licenses of the Patents, Trademarks or Licenses by Debtor in the
ordinary course of Debtor's business, consistent with Debtor's prior licensing
practices.

                  5. NEW PATENTS, TRADEMARKS, AND LICENSES. Debtor represents
and warrants that, to the best of Debtor's knowledge, the Patents, Trademarks
and Licenses listed on EXHIBITS B, C AND D, respectively, constitute all of the
Patents, Trademarks, and Licenses now owned by Debtor. If, before Debtor's
Liabilities shall have been satisfied in full, Debtor shall (i) become aware of
any existing Patents, Trademarks or Licenses of which Debtor has not previously
informed Agent, (ii) obtain rights to any new patentable inventions, Patents,
Trademarks or Licenses, or (iii) become entitled to the benefit of any Patents,
Trademarks or Licenses or any improvement on any Patent, the provisions of this
Security Agreement above shall automatically apply thereto and Debtor shall give
to Agent prompt written notice thereof. Debtor hereby authorizes Agent to modify
this Security Agreement by amending EXHIBITS B, C AND D, as applicable, to
include any such Patents, Trademarks and Licenses.

                  6. ROYALTIES; TERMS. The term of the mortgages granted herein
shall extend until the earlier of (i) the expiration of each of the respective
Patents, Trademarks and Licenses assigned hereunder, or (ii) Debtor's
Liabilities have been paid in full. Upon the occurrence of an Event of Default,
Debtor agrees that the use by Secured Parties of all Patents, Trademarks and
Licenses shall be without any liability for royalties or other related charges
from Secured Parties to the Debtor.

                  7. GRANT OF LICENSE TO DEBTOR. Unless and until an Event of
Default shall have occurred, Agent hereby grants to Debtor the exclusive,
nontransferable right and license to use the Trademarks in the ordinary course
of its business, to exercise Secured Parties' rights under the Licenses, and to
make, have made, use and sell the inventions disclosed and claimed in the
Patents for Debtor's own benefit and account and for none other. Debtor shall
use the Trademarks only on goods of at least as high quality as the goods on
which Debtor or its predecessor used the goods prior to the date hereof. Debtor
agrees not to sell or assign its interest in, or grant any sublicense under, the
license granted to Debtor in this Section 7, without the prior written consent
of Agent; provided, however, that Agent's consent shall not be required for
licenses of the Patents, Trademarks or Licenses by Debtor in the ordinary course
of Debtor's business, consistent with Debtor's prior licensing practices. From
and after the occurrence of an Event of Default, Debtor's license with respect
to the Patents, Trademarks and Licenses set forth in this Section 7 shall
terminate forthwith, and Secured Parties shall have, in addition to all other
rights and remedies given them by this Security Agreement, those allowed by law
and the rights and remedies of a secured party under the Uniform Commercial Code
as enacted in any of the jurisdictions in which the Patents, Trademarks or
Licenses may be located.

                  8. AGENT'S RIGHT TO INSPECT. Agent shall have the right, at
any time and from time to time during normal business hours and prior to payment
in full of Debtor's Liabilities, to inspect Debtor's premises and to examine
Debtor's books, records and operations, including, without limitation, Debtor's

                                       4
<PAGE>

quality control processes. Agent and Secured Parties shall maintain in
confidence all trade secret and confidential information of Debtor obtained in
any such examinations and shall execute any nondisclosure agreements reasonably
requested by Debtor in advance of any such inspection or examination. Debtor
agrees (i) to exercise its best efforts to maintain the quality of any and all
products in connection with which the Trademarks are used, consistent with the
quality of said products as of the date hereof and (ii) to provide Agent, upon
Agent's request from time to time, with a certificate of an officer of Debtor
certifying Debtor's compliance with the foregoing. Upon the occurrence of an
Event of Default, Debtor agrees that Agent, or a conservator appointed by Agent,
shall have the right to establish such additional product quality controls as
Agent, or said conservator, in its sole judgment, may deem necessary to assure
maintenance of the quality of products sold by Debtor under the Trademarks.

                  9. RELEASE OF SECURITY AGREEMENT. This Security Agreement is
made for collateral purposes only. Upon payment in full of Debtor's Liabilities
and termination of the Loan Agreements, Agent shall execute and deliver to
Debtor an instrument in such form as may be reasonably necessary to re-vest in
Debtor full title to the Patents, Trademarks, and Licenses, subject to any
disposition thereof which may have been made by Agent pursuant hereto.

                  10. EXPENSES. All expenses incurred in connection with the
performance of any of the agreements set forth herein shall be borne by Debtor.
All fees, costs and expenses, of whatever kind or nature, including reasonable
attorneys' and paralegals' fees and legal expenses, incurred by Secured Parties
in connection with the filing or recording of any documents (including all taxes
in connection therewith) in public offices, the payment or discharge of any
taxes, counsel fees, maintenance fees, encumbrances or otherwise in protecting,
maintaining or preserving the Patents, Trademarks and Licenses, or in defending
or prosecuting any actions or proceedings arising out of or related to the
Patents, Trademarks and Licenses, shall be borne by and paid by Debtor on demand
by Agent and until so paid shall be added to the principal amount of Debtor's
Liabilities and shall bear interest at the rate set forth in the Notes.

                  11. DUTIES OF DEBTOR. Debtor shall have the duty, to the
extent commercially reasonable, to use its best efforts (i) to prosecute
diligently any patent, trademark or service mark applications pending as of the
date hereof or thereafter until Debtor's Liabilities shall have been paid in
full, (ii) to make application on unpatented but patentable inventions and on
trademarks and service marks, as appropriate, (iii) to preserve and maintain all
rights in the Patents, Trademarks and Licenses, and (iv) to ensure that the
Patents, Trademarks and Licenses are and remain enforceable. Any expenses
incurred in connection with Debtor's obligations under this Section 11 shall be
borne by Debtor. Debtor shall not abandon any right to file a patent, trademark
or service mark application, or abandon any pending patent application, or any
other Patent, Trademark or License without the consent of Agent, except to the
extent it is not commercially reasonable not to so abandon any such right,
application, Patent, Trademark or License; provided, however, that Debtor may
abandon the NTN Litigation.

                  12. AGENT'S RIGHT TO SUE. After the occurrence of an Event of
Default, Agent shall have the right, but shall in no way be obligated, to bring
suit in its own name to enforce the Patents, Trademarks and Licenses and, if
Agent shall commence any such suit, Debtor shall, at the request of Agent, do

                                       5
<PAGE>

any and all lawful acts and execute any and all proper documents required by
Agent in aid of such enforcement and Debtor shall promptly, upon demand,
reimburse and indemnify Agent for all reasonable costs and expenses incurred by
Agent in the exercise of its rights under this Section 12.

                  13. WAIVERS. No course of dealing between Debtor and Agent,
nor any failure to exercise, nor any delay in exercising, on the part of Agent,
any right, power or privilege hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, power or privilege hereunder
or thereunder preclude any other or further exercise thereof or the exercise of
any other right, power or privilege.

                  14. SEVERABILITY. The provisions of this Security Agreement
are severable, and if any clause or provision shall be held invalid and
unenforceable in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such clause or provision, or part thereof, in
such jurisdiction, and shall not in any manner affect such clause or provision
in any other jurisdiction, or any other clause or provision of this Security
Agreement in any jurisdiction.

                  15. MODIFICATION. This Security Agreement cannot be altered,
amended or modified in any way, except as specifically provided in Section 5
hereof or by a writing signed by the parties hereto.

                  16. CUMULATIVE REMEDIES; POWER OF ATTORNEY; EFFECT ON
FINANCING AGREEMENT. All of Agent's rights and remedies with respect to the
Patents, Trademarks and Licenses, whether established hereby or by any other
agreements or by law shall be cumulative and may be exercised singularly or
concurrently. Upon the occurrence of an Event of Default, Debtor hereby
authorizes Agent to make, constitute and appoint any officer or agent of Agent
as Agent may select, in its sole discretion, as Debtor's true and lawful
attorney-in-fact, with power to (i) endorse Debtor's name on all applications,
documents, papers and instruments necessary or desirable for Agent in the use of
the Patents, Trademarks and Licenses, or (ii) take any other actions with
respect to the Patents, Trademarks and Licenses as Agent deems to be in the best
interest of Secured Parties, or (iii) grant or issue any exclusive or
non-exclusive license under the Patents, Trademarks or Licenses to anyone, or
(iv) assign, pledge, convey or otherwise transfer title in or dispose of the
Patents, Trademarks or Licenses to anyone. Agent hereby ratifies all that such
attorney shall lawfully do or cause to be done by virtue hereof. This power of
attorney shall be irrevocable until Debtor's Liabilities shall have been paid in
full and the Security Agreement, including any amendments thereto, has been
terminated. Debtor acknowledges and agrees that this Security Agreement is not
intended to limit or restrict in any way the rights and remedies of Secured
Parties under applicable law but rather is intended to facilitate the exercise
of such rights and remedies. Secured Parties shall have, in addition to all
other rights and remedies given it by the terms of this Security Agreement, all
rights and remedies allowed by law and the rights and remedies of a secured
party under the Uniform Commercial Code as enacted in any jurisdiction in which
the Patents, Trademarks or Licenses may be located.

                                       6
<PAGE>

                  17. BINDING EFFECT; BENEFITS. This Security Agreement shall be
binding upon the Debtor and its respective successors and assigns, and shall
inure to the benefit of Secured Parties, their successors, nominees and assigns.

                  18. GOVERNING LAW. This Security Agreement shall be governed
by and construed in accordance with the internal laws of the State of Delaware.

                  19. HEADINGS. Paragraph headings used herein are for
convenience only and shall not modify the provisions which they precede.

                  20. FURTHER ASSURANCES. Debtor agrees to execute and deliver
such further agreements, instruments and documents, and to perform such further
acts, as Agent shall reasonably request from time to time in order to carry out
the purpose of this Security Agreement and agreements set forth herein.

                  21. SURVIVAL OF REPRESENTATIONS. All representations and
warranties of Debtor contained in this Security Agreement shall survive the
execution and delivery of this Security Agreement.

                  22. SECURED PARTIES; AGENT. By their signature set forth on
Exhibit A hereto, each of the Existing Secured Parties hereby designates and
appoints Agent as their agent for all purposes hereunder, with full power and
authority to act on their behalf in accordance with the terms set forth in this
Security Agreement. Each Future Secured Party, by its contribution of funds to
the Debtor pursuant to the 2003 Funding shall be and become a Secured Party
hereunder, and accepts the Agent as its agent for all purposes hereunder, with
full power and authority to act on its behalf in accordance with the terms set
forth in this Security Agreement.

                                       7
<PAGE>

                  IN WITNESS WHEREOF, Debtor has duly executed this Security
Agreement in favor of Secured Parties as of the date first written above.

ATTEST:                                         TWO WAY TV (US) INC.

                                                /S/ BRUCE W. BAUER
                                                -------------------------------
_______________________________                 By:  Bruce W. Bauer
Title: ________________________                 Title:  Chief Executive Officer

AGREED AND ACCEPTED this 31st day
of December, 2002

Perkins Capital Management, Inc., as Agent
and Secured Party

_______________________________
By: ___________________________
Title: ________________________

THIS INSTRUMENT PREPARED BY AND
AFTER FILING RETURN TO:

James W. Dierking, Esq.
Winthrop & Weinstine, P.A.
3000 Dain Rauscher Plaza
60 South Sixth Street
Minneapolis, MN 55402-4430

                                       8
<PAGE>

                                 ACKNOWLEDGMENT
                                 --------------

STATE OF SAN MATEO         )
         ---------         )  SS.
COUNTY OF SAN MATEO        )
          ---------

                  The foregoing Patent, Trademark and License Security Agreement
was executed and acknowledged before me this 15th day of January, 2003, by Bruce
W. Bauer, personally known to me to be the CEO & Chairman of TWO WAY TV (US)
INC., a Delaware corporation, on behalf of such corporation, and has identified
himself by satisfactory evidence under California Law.

     [Notary Seal]                        /s/ IRAJ SHAHROK, ATTORNEY AT LAW
                                              -----------------------------
                                                     Notary Public

                                          State of California, County, San Mateo

                                          My Commission expires: 9.15.2003

                                       9
<PAGE>

<TABLE>
                                         EXHIBIT A
                                         ---------
                                      Secured Parties
<CAPTION>

<S>                                             <C>
Industricorp & Co., Inc. (FBO Twin              USB Piper Jaffray, as Custodian FBO
City Carpenters Pension Fund)                   William R. Kennedy IRA #2

By: ____________________________                By: /S/ R.W. PERKINS
   Its: ________________________                    ---------------------
                                                    Its: Attorney-in-Fact

Esher Limited
                                                /S/ R.W. PERKINS, ATTORNEY-IN-FACT
By: ____________________________                ----------------------------------
   Its: ________________________                E. Robert Kinney

/S/ PAMELA L. BROWN                             /S/ R.W. PERKINS, ATTORNEY-IN-FACT
--------------------------------------          ----------------------------------
Pamela L. Brown, Trustee FBO Pamela L.          Margaret Velie Kinney
Brown U/A Dated 9/16/88

Ellis Family Limited Partnership                MB Partnership

By: /S/ R.W. PERKINS                            By: /S/ R.W. PERKINS
   ---------------------                            ---------------------
   Its: Attorney-in-Fact                            Its: Attorney-in-Fact

/S/ R.W. PERKINS, ATTORNEY-IN-FACT              USB Piper Jaffray, as Custodian FBO
----------------------------------              Harold Roitenberg IRA
Sandra J. Hale
                                                By: /S/ R.W. PERKINS
                                                    ---------------------
USB Piper Jaffray, as Custodian FBO                 Its: Attorney-in-Fact
Mark Halsten IRA

By:  /S/ R.W. PERKINS                           Perkins Foundation
   Its: Attorney-in-Fact
                                                By: /S/ R.W. PERKINS
                                                    ----------------
USB Piper Jaffray, as Custodian FBO                 Its: President
William R. Kennedy IRA #1
                                                Perkins & Partners Inc. Profit Sharing Plan
By: /S/ R.W. PERKINS                            & Trust U/A Dated 10/19/76
   Its: Attorney-in-Fact
                                                By: /S/ R.W. PERKINS
                                                    ----------------
                                                    Its: Trustee
</TABLE>

                                            10
<PAGE>

<TABLE>
<CAPTION>
<S>                                                <C>
Perkins Capital Management, Inc. Profit
Sharing Plan U/A Dated 12/15/86
                                                   /S/ R.W. PERKINS
By: /S/ R.W. PERKINS                               ---------------------------------------
    ----------------                               Richard W. Perkins, Trustee FBO Richard
    Its: Trustee                                   W. Perkins Trust U/A Dated 6/14/78

Pyramid Partners, L.P.                             /S/ R.W. PERKINS, TRUSTEE
                                                   ----------------------------------
By: /S/ R.W. PERKINS                               Dana L. Rocheford (Special Account)
    --------------------
    Its: General Partner                           /S/ EE STRICKLAND
                                                   ---------------------------------
                                                   BY R.W. PERKINS, ATTORNEY-IN-FACT
Strickland Family Limited Partnership              Edward E. Strickland

By: /S/ R.W. PERKINS
    ---------------------                          /S/ R.W. PERKINS, ATTORNEY-IN-FACT
    Its: Attorney-in-Fact                          ----------------------------------
                                                   John F. Rooney

/S/ CT DAHL BY R.W. PERKINS, ATTORNEY-IN-FACT      Greenwood Nominees Limited
Christopher T. Dahl
                                                   By:________________________________
___________________________________                   Its: ___________________________
Andrew Redleaf

___________________________________                /S/ R.W. PERKINS, ATTORNEY-IN-FACT
U. S. Bank National Association, Trustee, Dorsey   ----------------------------------
& Whitney Master Trust FBO Thomas O. Moe           Devron Char

/S/ H. LEIGH SEVERANCE                             H. L. Severance, Inc. Profit Sharing Plan &
----------------------                             Trust
H. Leigh Severance

                                                   By: /S/ H. LEIGH SEVERANCE
___________________________________                    ----------------------
Wayne W. Mills                                         Its: Trustee

___________________________________                /S/ R.W. PERKINS, ATTORNEY-IN-FACT
Gary Kohler                                        ------------------------------------------
                                                   Elliott A. and Jean E. Cobb, joint tenants

/S/ R.W. PERKINS, ATTORNEY-IN-FACT                 /S/ R.W. PERKINS, ATTORNEY-IN-FACT
----------------------------------                 ----------------------------------------
M. Elizabeth Cramer                                USB Piper Jaffray, as Custodian FBO Gary
                                                   B. Davis IRA
/S/ R.W. PERKINS, ATTORNEY-IN-FACT
-----------------------------------------          /S/ R.W. PERKINS, ATTORNEY-IN-FACT
USB Piper Jaffray, as Custodian FBO James          ----------------------------------
H. Lehr IRA                                        James F. Lyons
</TABLE>

                                              11
<PAGE>

                                    EXHIBIT B
                                    ---------

                                     PATENTS
                                     -------

----------------------------- ------------- ----------- -----------------------
APPLICANT                     SERIAL NO.    COUNTRY     DESCRIPTION
----------------------------- ------------- ----------- -----------------------
Lockton, Fascenda             4592546       U.S.A.      Live Event Game
----------------------------- ------------- ----------- -----------------------
Lockton, Fascenda             507982        Canada      Live Event Game
----------------------------- ------------- ----------- -----------------------
Interactive Network, Inc.     5083800       U.S.A.      Common Game Event
----------------------------- ------------- ----------- -----------------------
Interactive Network, Inc.     2018597       Canada      Common Game Event
----------------------------- ------------- ----------- -----------------------
Interactive Network, Inc.     5120076       U.S.A.      Game Data Evaluation
----------------------------- ------------- ----------- -----------------------
Interactive Network, Inc.     5013038       U.S.A.      Game Data Evaluation
----------------------------- ------------- ----------- -----------------------
Interactive Network, Inc.     0504267       E.P.        Game Data Evaluation
----------------------------- ------------- ----------- -----------------------

                              APPLICATIONS PENDING
                              --------------------

NONE

                                       12
<PAGE>

                                    EXHIBIT C
                                    ---------

                                   TRADEMARKS
                                   ----------

NONE

                                       13
<PAGE>

                                    EXHIBIT D
                                    ---------

                                    LICENSES
                                    --------

1.       Amended and Restated License Agreement dated as of May 31, 2001,
         between Debtor, as licensee, and Two Way TV Limited, as licensor.

2.       Amended and Restated Termination and License Agreement dated as of
         April __, 2002, between Debtor, as licensor, and Two Way TV Limited, as
         licensee.

                                       14

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