MEDIA ARTS GROUP INC
EXHIBIT 10.60
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<TYPE>EX-10.60
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<DESCRIPTION>EXHIBIT 10.60
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<p align="right" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
10.60</font></b></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">AMENDMENT TO AGREEMENT</font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; THIS AMENDMENT TO
AGREEMENT (this &#147;Amendment&#148;) is entered into effective as of August 1, 2002
(the &#147;Effective Date&#148;), between MEDIA ARTS GROUP, INC., a Delaware corporation
(&#147;MAGI&#148;), and CREATIVE BRANDS GROUP, INC., a California corporation (&#147;CBG&#148;),
with respect to the following facts:</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; MAGI and CBG are parties to that
certain letter agreement dated as of July 17, 2002, a copy of which is attached
hereto and by this reference incorporated herein (the &#147;Agreement&#148;).</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; MAGI and CBG desire to amend the
Agreement as set forth in this Amendment.</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Buyer and Seller
agree as follows:</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All
capitalized terms used in this Amendment and not otherwise defined herein shall
have the meaning given such terms in the Agreement.</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Agreement will remain in full force and effect until July 31, 2006.&#160; After such expiration date, CBG&#146;s rights
under the Agreement, except for its rights to receive all of the compensation
and reimbursements provided for under the Agreement (as amended by this
Amendment) which accrue as of the expiration date, its right to review and
audit MAGI&#146;s books and records with regard to license revenues to ensure
compliance with the Agreement, and its rights regarding the enforcement of such
rights, all of which rights shall survive the expiration of the Agreement,
shall terminate.</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Commencing and effective as of the
Effective Date, the &#147;7.5%&#148; and the &#147;20%&#148; rates referred to in the paragraph of
the Agreement captioned &#147;Compensation to CBG; Term of Agreement&#148; (with regard
to increased revenues from pre-existing licensing relationships and with regard
to existing and new licensing relationships) are hereby deleted and replaced
with &#147;24%&#148;.&#160; All amounts necessary to
bring CBG&#146;s compensation current (retroactive to the Effective Date) shall be
paid upon the execution of this Amendment.</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For purposes of the Agreement (as
amended by this Amendment), the term &#147;existing licensing relationships&#148; (and
terms of similar import) shall be deemed to mean the relationships with the
parties identified in Schedule 1 attached hereto and by this reference
incorporated herein, and shall cover all license and product categories with
such parties which have been, or are hereafter, approved by MAGI.&#160; For purposes of the Agreement (as amended by
this Amendment), the term &#147;new licensing relationships&#148; (and terms of similar
import) shall be deemed to mean the relationships with the parties identified
in Schedule 2 attached hereto and by this reference incorporated herein, all to
the extent that CBG submits a deal point memo, executed by the proposed
licensee, to MAGI not later than sixty (60) days after January 6, 2003, and
shall cover all license and product categories with such parties which have
been, or are hereafter, approved by MAGI.&#160;
The deal point memo shall contain, among other things, the information
set forth in Exhibit &#147;A&#148; attached hereto and by this reference incorporated
herein.&#160; MAGI shall consider for
approval, in good faith, each of the deal memos for each of the new licensing
relationships during the aforesaid sixty (60) day period.&#160; Tony Thomopolous and Steve Paszkiewicz shall
personally oversee, and shall be the individuals making the approval decisions
on behalf of MAGI in connection with, the consideration process with regard to
the new </font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>


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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">licensing
relationships, and interface with Ken Raasch and Eric Kuskey of CBG during such
process.&#160; If MAGI disapproves any of the
new licensing relationships, it shall provide written notice to CBG specifying
the reasons for the disapproval.</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
paragraph of the Agreement which begins &#147;On revenues from new business
initiatives&#133;&#148; is hereby deleted.&#160; The
paragraph of the Agreement which begins &#147;The parties shall establish minimum
performance&#133;&#148; is hereby deleted.</font></p>

<p style="margin:0in 0in .0001pt .25in;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; 6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For purposes of clarification, the
parties agree that the licenses which are contemplated by the Agreement are
licenses to create art -based or non-art based products and/or services
associated with Thomas Kinkade, his sketches, drawings, paintings and other
works of art, and related trademarks, intellectual property, slogans, painting
titles, etc., but the products will specifically exclude two-dimensional art,
paper art and wall art (e.g., prints, canvases, lithographs and posters), and
any and all media, including, without limitation, television, movies, music
compact discs and other audio recordings, magazines, electronic rights, and,
subject to the following clause, books; specifically excepted from the
foregoing exclusion are books which are the subject of any CBG Protected
Agreements (defined below).</font></p>

<p style="margin:0in 0in .0001pt .25in;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Notwithstanding
paragraph 2 above, CBG&#146;s relationship management of the key accounts identified
in the Agreement shall terminate as of December 31, 2002.&#160; CBG will be entitled to the compensation
provided for in the Agreement with regard to said key accounts on all sales
orders placed on or before December 31, 2002.</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; During
the term of the Agreement, MAGI shall have the right, in the exercise of its
sole and absolute discretion, to (a) enter into or to reject agreements
proposed by CBG (&#147;Proposed Agreements&#148;) involving parties which are the subject
of new licensing relationships, as described in paragraph 3 above, (b) to renew
or elect not to renew upon the expiration of the license agreements which are
the subject of the Agreement, and/or (c) allow the expansion into new
categories of products involving such license agreements.&#160; With regard to (x) licensees under existing
licensing relationships, and (y) licensees under the new licensing
relationships who are listed in &#147;category 1&#148; in Schedule 2 attached hereto
(i.e., new licensing relationships with respect to which MAGI has approved a
signed letter of intent or deal memorandum, or equivalent writing, or is ready
to proceed to prepare or negotiate a license agreement) (licensing agreements
described in clauses (x) and (y) are referred to below collectively as the &#147;CBG
Protected Agreements&#148;), the following provisions shall apply:</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.75in;punctuation-wrap:simple;text-autospace:none;text-indent:-.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If MAGI fails or refuses to renew upon
expiration a CBG Protected Agreement, and MAGI subsequently (prior to the
second anniversary of the scheduled expiration of such license) enters into a
license agreement with a company or companies whose product(s) which is/are
licensed under such new license agreement(s) are substantially similar to the
products which were approved or produced under the CBG Protected Agreements, CBG
shall be compensated, on an annual basis for each year (prorated for any
partial year) of the remaining term of the Agreement, at a rate equal to 12% of
the revenues received by MAGI (as compared to the 24% rate described in
paragraph 3 above) with regard to the last twelve (12) months of the license
agreement(s) with respect to the licensee(s) whose licenses were not renewed
(subject to the provisions of clause 8(b) below).&#160; Notwithstanding the foregoing, </font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>


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<p style="margin:0in 0in .0001pt 1.75in;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the 12% rate described in
the preceding sentence shall be increased to 24% in the event that there is a
change of control at MAGI prior to any non-renewal of a CBG Protected
Agreement.</font></p>

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<p style="margin:0in 0in .0001pt 1.75in;punctuation-wrap:simple;text-autospace:none;text-indent:-.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If MAGI fails or refuses to renew upon
expiration a CBG Protected Agreement, and MAGI subsequently (prior to the
second anniversary of the scheduled expiration of such license) enters into a
license agreement with a company who was the subject of a CBG Protected
Agreement, for a product in a product category which the licensee produced
prior to the expiration, CBG shall be compensated, on an annual basis for the
remaining term of the Agreement, at a rate equal to 24% of the revenues
received by MAGI (as described in the Agreement and in paragraph 3 above) with
regard to the last twelve (12) months of the license agreement(s) with respect
to the licensee(s) whose licenses were not renewed.</font></p>

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<p style="margin:0in 0in .0001pt 1.75in;punctuation-wrap:simple;text-autospace:none;text-indent:-.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If MAGI fails or refuses to renew upon
expiration a CBG Protected Agreement, and MAGI subsequently (prior to the
second anniversary of the scheduled expiration of such license) enters into a
license agreement with a company who was the subject of a CBG Protected
Agreement, for a product in a product category which is different than the one
that the licensee produced prior to the expiration, CBG shall be compensated,
on an annual basis for the remaining term of the Agreement, at a rate equal to
12% of the revenues received by MAGI (as described in the Agreement and in
paragraph 3 above) under such new license agreement(s).&#160; Notwithstanding the foregoing, the 12% rate
described in the preceding sentence shall be increased to 24% in the event that
there is a change of control at MAGI prior to any non-renewal of a CBG
Protected Agreement.</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.75in;punctuation-wrap:simple;text-autospace:none;text-indent:-.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If MAGI fails or refuses to enter into a
license agreement with a proposed licensee which is the subject of a CBG
Protected Agreement, and MAGI subsequently (prior to the second anniversary of
the date of a writing evidencing the end of negotiations regarding the proposed
license agreement) enters into a license agreement with that proposed licensee,
for a product in a product category which the licensee proposed to produce, CBG
shall be compensated, on an annual basis for the remaining term of the
Agreement, at a rate equal to 24% of the revenues received by MAGI (as
described in the Agreement and in paragraph 3 above) under such license
agreement(s).</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; MAGI
shall control the direction of its licensing program.&#160; Accordingly, with regard to proposed expansions of licenses under
the existing licensing relationships and/or the new licensing relationships,
unless and until CBG and MAGI have conferred and discussed new product
categories which may be approved with parties to the CBG Protected Agreements,
and MAGI has approved, in concept, potential new product categories, CBG will
not initiate discussions with such licensees to suggest new product categories.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>


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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; During
the term of the Agreement, CBG shall assist MAGI as the parties deem reasonably
appropriate with regard to the management of licensee relationships under the
existing licensing relationships and the new licensing relationships.&#160; Each party shall maintain, and make
available to the other, upon notice by the other, for review and copying, its
agreements, books and records which involve and/or relate to the license
agreements, the revenues to be derived therefrom, and other matters related
thereto.</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; During
the term of the Agreement, CBG shall be compensated as described in the Agreement
and in paragraph 3 above with regard to all agreements entered between MAGI and
a party under an existing licensing relationship and/or a new licensing
relationship.</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
first sentence of the Agreement is hereby deleted in its entirety and replaced
with the following: &#147;The purpose of this Letter Agreement (&#145;Agreement&#146;) is to
set forth the terms of the agreement by which Creative Brands Group, Inc.
(&#145;CBG&#146;) will manage and develop, and be compensated with respect to, certain
licensing and key account activities for Media Arts Group, Inc. (&#145;MAGI&#146; or the
&#145;Company&#146;).&#148;&#160; Additionally, the second
sentence of the Agreement is hereby deleted in its entirety.</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
first sentence of the section of the Agreement captioned &#147;Nature of Services to
be Provided&#148; (which sentence begins with the words &#147;CBG shall manage&#148;) is
hereby deleted in its entirety and replaced with the following: &#147;CBG shall
manage, grow, develop and service certain of MAGI&#146;s licensing relationships
(including under the &#145;CBG Protected Agreements&#146; and the &#145;new licensing
relationships&#146;, as defined herein) and key account relationships as set forth
herein.&#148;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
third and fourth sentences of the second paragraph of the section of the
Agreement captioned &#147;Compensation to CBG; Term of Agreement&#148; (beginning with
the words &#147;To the extent&#148;) are hereby deleted in their entirety.&#160; The fourth paragraph of that section is
hereby deleted in its entirety.</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
first sentence of the fourth paragraph of the section of the Agreement
captioned &#147;Additional Terms&#148; (which sentence begins with the words &#147;CBG shall
provide&#148;) is hereby deleted in its entirety and replaced with the following:
&#147;At MAGI&#146;s request, CBG shall provide on-site (at MAGI&#146;s Morgan Hill
headquarters) personnel for management of licensing issues and approvals, with
MAGI having final approval on such issues.&#148;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
fifth paragraph of the section of the Agreement captioned &#147;Additional Terms&#148;
(which begins with the words &#147;MAGI shall provide&#148;) is hereby deleted in its
entirety and replaced with the following: &#147;If MAGI chooses to have a booth at
licensing trade shows, CBG shall have the right to have its representatives
present in the booth in order to interact with licensees under the CBG
Protected Agreements and the new licensing relationships.&#160; If MAGI elects not to have a booth, and CBG
has a booth, MAGI shall have the right to negotiate with CBG to have CBG act as
a representative of MAGI at the show (which negotiation will also involve MAGI
sharing some of the related costs and expenses).&#148;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><font style="font-weight:bold;">IF A DISPUTE
OCCURS BETWEEN THE PARTIES WHICH ARISES OUT OF OR RELATES IN ANY WAY TO THIS
AGREEMENT OR ANY OTHER DOCUMENT SIGNED OR INITIALED IN CONNECTION WITH THIS
AGREEMENT, </font></b></font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>


<div style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=4,EFW="2106575",CP="MEDIA ARTS GROUP, INC.",DN="3",CHK=322578,FOLIO='4',FILE="DISK038:[03PAL3.03PAL1233.EDGAR]EX10-60_1233.CHC",USER="DNICHOL",CD='Mar 27 20:09 2003' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">OR IF
EITHER PARTY ALLEGES THAT THE OTHER PARTY IS IN DEFAULT UNDER THIS AGREEMENT OR
ANY OF THOSE OTHER DOCUMENTS, THEN THE DISPUTE OR ALLEGATION SHALL BE RESOLVED
BY ARBITRATION IN ACCORDANCE WITH THE COMMERCIAL ARBITRATION RULES OF THE
AMERICAN ARBITRATION ASSOCIATION.&#160; EITHER
PARTY MAY INITIATE THE ARBITRATION BY GIVING WRITTEN NOTICE TO THE OTHER PARTY
AND THE ESCROW HOLDER.&#160; THE ARBITRATION
SHALL BE CONDUCTED BY A NEUTRAL AND IMPARTIAL ARBITRATOR IN THE OFFICE OF
JAMS/ENDISPUTE, IN SAN FRANCISCO OR SAN JOSE, CALIFORNIA (&#147;JAMS&#148;) OR SUCH OTHER
ARBITRATOR AS IS MUTUALLY AGREED UPON IN WRITING BY THE PARTIES.&#160; THE ARBITRATOR&#146;S JUDGMENT SHALL BE FINAL AND
BINDING UPON THE PARTIES, AND MAY BE ENTERED IN ANY COURT HAVING PROPER
JURISDICTION.&#160; IF THE PARTIES DO NOT
AGREE UPON AN ARBITRATOR WITHIN TEN (10) BUSINESS DAYS AFTER THE DATE THE
ARBITRATION IS INITIATED, THEN THE ARBITRATOR SHALL BE CHOSEN BY JAMS.&#160; IN SELECTING THE ARBITRATOR, THE PROVISIONS
OF SECTION 1297.121 AND 1297.124 OF THE CODE OF CIVIL PROCEDURE SHALL
APPLY.&#160; THE FEE TO INITIATE THE
ARBITRATION SHALL BE PAID BY THE INITIATING PARTY, AND THAT FEE AND ALL OTHER
COSTS OF THE ARBITRATION, INCLUDING ATTORNEYS&#146; FEES INCURRED, SHALL ULTIMATELY
BE BORNE BY THE LOSING PARTY, AS DETERMINED BY THE ARBITRATOR.&#160; IN THE ABSENCE OF A DETERMINATION BY THE
ARBITRATOR, THE PARTIES SHALL EACH BEAR ONE-HALF OF THE FEES AND COSTS OF THE
ARBITRATION AND ALL OF ITS OWN ATTORNEYS&#146; FEES AND OTHER COSTS IN CONNECTION
THEREWITH.&#160; THE RESULTS OF THE ARBITRATION
SHALL BE FINAL, NON-APPEALABLE, BINDING UPON BOTH PARTIES, AND MAY BE ENFORCED
BY EITHER PARTY.&#160; THE ARBITRATION SHALL
BE PROMPTLY AND TIMELY COMMENCED (AND, IN ANY EVENT, WITHIN THIRTY (30) DAYS OF
THE DATE ON WHICH THE ARBITRATOR SHALL HAVE BEEN SELECTED) AND COMPLETED.</font></b></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In
the event of any conflict between the provisions of the Agreement (and/or any
other agreement between the parties) and the provisions of this Amendment, the
provisions of this Amendment shall control.&#160;
Except as set forth above, the Agreement shall continue in full force
and effect.</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All
exhibits and schedules attached to this Amendment are incorporated in full
herein and in the Agreement by this reference.</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, this Amendment has been executed
as of the date first set forth above.</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="33%" colspan="2" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:33.66%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MEDIA ARTS GROUP, INC.,</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:16.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="30%" colspan="2" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:30.52%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CREATIVE BRANDS GROUP, INC.,</font></p>
  </td>
  <td width="19%" colspan="2" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:19.46%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="33%" colspan="2" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:33.66%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a Delaware corporation</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:16.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="33%" colspan="3" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:33.76%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a California corporation</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:16.24%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="33%" colspan="2" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:33.66%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:16.36%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="33%" colspan="3" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:33.76%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:16.24%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:4.62%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By: </font></p>
  </td>
  <td width="29%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;width:29.04%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Anthony D. Thomopoulos</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:16.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:4.58%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="29%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;width:29.18%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Ken Raasch</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:16.24%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:4.62%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:</font></p>
  </td>
  <td width="29%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;width:29.04%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chairman &amp; CEO</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:16.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:4.58%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:</font></p>
  </td>
  <td width="29%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;width:29.18%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CEO</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:16.24%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:4.62%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="29%" valign="bottom" style="border:none;padding:0in 5.4pt 0in 5.4pt;width:29.04%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:16.36%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:4.58%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="29%" colspan="2" valign="bottom" style="border:none;padding:0in 5.4pt 0in 5.4pt;width:29.18%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:16.24%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:4.62%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="29%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;width:29.04%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Robert Murray</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:16.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:4.58%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="29%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;width:29.18%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Eric Kusky</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:16.24%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:4.62%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:</font></p>
  </td>
  <td width="29%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;width:29.04%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VP, General Counsel &amp; Secretary</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:16.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:4.58%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:</font></p>
  </td>
  <td width="29%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;width:29.18%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:16.24%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr height="0">
  <td width="34" style="border:none;"></td>
  <td width="213" style="border:none;"></td>
  <td width="120" style="border:none;"></td>
  <td width="34" style="border:none;"></td>
  <td width="191" style="border:none;"></td>
  <td width="24" style="border:none;"></td>
  <td width="119" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>


<div style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>


<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=5,EFW="2106575",CP="MEDIA ARTS GROUP, INC.",DN="3",CHK=705125,FOLIO='5',FILE="DISK038:[03PAL3.03PAL1233.EDGAR]EX10-60_1233.CHC",USER="DNICHOL",CD='Mar 27 20:09 2003' -->
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="5" face="Times New Roman" style="font-size:18.0pt;">Creative Brands
Group &#151; Media Arts Group Inc.</font></p>

<p style="margin:4.0pt 0in .0001pt;text-align:center;"><font size="4" face="Times New Roman" style="font-size:14.0pt;">Licensee Deal Memorandum</font></p>

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<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Licensee:</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.54%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="26%" valign="top" style="padding:0in .7pt 0in .7pt;width:26.7%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="5" face="Times New Roman" style="font-size:16.0pt;">XYZ Corp</font></p>
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">City, State</font></p>
  </td>
  <td width="26%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:26.16%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="22%" valign="top" style="padding:0in .7pt 0in .7pt;width:22.16%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Date:</font></b></p>
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Contract
  Version:</font></b></p>
  </td>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3/24/03</font></p>
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New Contract</font></p>
  </td>
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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" valign="bottom" style="border:none;border-top:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="4" face="Times New Roman" style="font-size:14.0pt;font-weight:bold;">CONTRACT
  DETAILS</font></b></p>
  </td>
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  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Articles:</font></b></p>
  </td>
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  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
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  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <h1 style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Territory:</font></b></h1>
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  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
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  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Market:</font></b></p>
  </td>
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  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
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  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exclusions:</font></b></p>
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  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
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  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Term:</font></b></p>
  </td>
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  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
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  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exclusivity:</font></b></p>
  </td>
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  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
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  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">First
  Marketing Deadline:</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Minimum
  Production Qty:</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Royalty
  Rate:</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
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  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Advance:</font></b></p>
  </td>
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  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Guarantee:</font></b></p>
  </td>
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  <td width="100%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
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  <td width="100%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
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<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="4" face="Times New Roman" style="font-size:14.0pt;font-weight:bold;">Notice to Licensee:</font></b></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the foregoing accurately states our
understanding, please sign and return a copy of this Deal Memorandum on or
before 5:00 p.m. on __________, 200_. Upon receipt of the signed Deal
Memorandum from you, we will forward it to Media Arts Group, Inc.&#160; This Deal Memorandum is not a binding
agreement on you, Creative Brands Group, Inc., or Media Arts Group, Inc.</font></p>

<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="79%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:79.42%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
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  <td width="20%" valign="bottom" style="border:none;padding:0in 5.4pt 0in 5.4pt;width:20.58%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="79%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:79.42%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
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  <td width="20%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:20.58%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="79%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:79.42%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;width:20.58%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="79%" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:79.42%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
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<p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>


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