EXHIBIT 10.27

                              CONSULTING AGREEMENT

         This Consulting Agreement (the "Consulting  Agreement") made as of June
1, 2000, by and between Owen Naccarato,  19600 Fairchild,  Suite 260, Irvine, CA
92612 ("Consultant") and Diamond  Entertainment  Corporation with offices at 800
Tucker Lane, Walnut, CA 91789 (the "Company").

                                   WITNESSETH

         WHEREAS,  the Company requires and will continue to require  consulting
services  relating  management,  strategic  planning and marketing in connection
with its business; and

         WHEREAS, Consultant can provide the Company with strategic planning and
marketing  consulting  services and is desirous of performing  such services for
the Company; and

         WHEREAS, the  Company  wishes  to  induce  Consultant  to provide these
consulting services to the Company,

         NOW,  THEREFORE,  in consideration of the mutual covenants  hereinafter
stated, it is agreed as follows:

         1.       APPOINTMENT.

         The Company hereby engages  Consultant and Consultant  agrees to render
services  to  the  Company  as  a  consultant  upon  the  terms  and  conditions
hereinafter set forth.

         2.       TERM.

         The  term of this  Consulting  Agreement  began  as of the date of this
Agreement,  and shall  terminate on May 31, 2001,  unless earlier  terminated in
accordance with paragraph 7 herein or extended as agreed to between the parties.

         3.       SERVICES.

         During the term of this Agreement,  Consultant  shall provide advice to
undertake  for and consult with the Company  concerning  management,  marketing,
consulting,  strategic planning, corporate organization and structure, financial
matters in  connection  with the  operation  of the  businesses  of the Company,
expansion of services, acquisitions and business opportunities, and shall review
and advise the Company  regarding  its overall  progress,  needs and  condition.
Consultant agrees to provide on a timely basis the following enumerated services
plus any additional services contemplated thereby:

                  (a) The implementation of short-range and long-term  strategic
planning to fully develop and enhance the Company's assets, resources,  products
and services; and

                  (b) Advise the Company  relative  to its legal needs  relating
specifically to its corporate transactional needs.

         4.       DUTIES OF THE COMPANY.

         The Company  shall provide  Consultant,  on a regular and timely basis,
with  all  approved  data  and  information  about  it,  its  subsidiaries,  its
management,  its products and services and its operations as shall be reasonably
requested by  Consultant,  and shall advise  Consultant of any facts which would
affect the accuracy of any data and information  previously supplied pursuant to
this  paragraph.  The Company shall  promptly  supply  Consultant  with full and
complete  copies of all  financial  reports,  all fillings  with all federal and
state  securities  agencies;  with full and complete  copies of all  stockholder
reports;  with all data and information  supplied by any financial analyst,  and
with  all  brochures  or other  sales  materials  relating  to its  products  or
services.

         5.       COMPENSATION.

         The Company will  immediately  grant  Consultant the option to purchase
2,000,000  shares of the Company's Common Stock with an exercise price at $..035
per  share,  which  option  shall  expire on May 31,  2001 at 5:00  P.M.  P.S.T.
Consultant in providing the foregoing services, shall not be responsible for any
out-of-pocket costs, including, without limitation,  travel, lodging, telephone,
postage and Federal Express charges.

         6.       REPRESENTATION AND INDEMNIFICATION.

         The   Company   shall  be  deemed  to  have  been  made  a   continuing
representation  of the accuracy of any and all facts,  material  information and
data which it  supplies  to  Consultant  and  acknowledges  its  awareness  that
Consultant will rely on such continuing  representation  in  disseminating  such
information and otherwise  performing its advisory functions.  Consultant in the
absence  of notice in  writing  from the  Company,  will rely on the  continuing
accuracy of material,  information and data supplied by the Company.  Consultant
represents  that  he has  knowledge  of  and is  experienced  in  providing  the
aforementioned services.

         7.       MISCELLANEOUS.

         Termination:  This  Agreement  may be  terminated  by either Party upon
written  notice to the other Party for any reason which shall be effective  five
(5)  business  days  from  the  date of such  notice.  This  Agreement  shall be
terminated   immediately  upon  written  notice  for  material  breach  of  this
Agreement.

         Modification:   This  Consulting   Agreement   sets  forth  the  entire
understanding  of the Parties with respect to the subject  matter  hereof.  This
Consulting Agreement may be amended only in writing signed by both Parties.

         Notices:  Any notice  required or permitted to be given hereunder shall
be in  writing  and  shall be  mailed  or  otherwise  delivered  in person or by
facsimile  transmission  at the address of such Party set forth above or to such
other address or facsimile telephone number as the Party shall have furnished in
writing to the other Party.

         Waiver: Any waiver by either Party of a breach of any provision of this
Consulting  Agreement shall not operate as or be construed to be a waiver of any
other breach of that  provision or of any breach of any other  provision of this
Consulting Agreement.  The failure of a Party to insist upon strict adherence to
any  term of this  Consulting  Agreement  on one or more  occasions  will not be
considered a waiver or deprive that Party of the right thereafter to insist upon
adherence to that term of any other term of this Consulting Agreement.

         Assignment:   The  Options  under  this Agreement are assignable at the
discretion of the Consultant.

         Severability: If any provision of this Consulting Agreement is invalid,
illegal, or unenforceable, the balance of this Consulting Agreement shall remain
in effect,  and if any provision is inapplicable to any person or  circumstance,
it shall nevertheless remain applicable to all other persons and circumstances.

         Disagreements: Any dispute or other disagreement arising from or out of
this Consulting  Agreement shall be submitted to arbitration  under the rules of
the American Arbitration Association and the decision of the arbiter(s) shall be
enforceable in any court having  jurisdiction  thereof.  Arbitration shall occur
only in Los Angeles County,  CA. The  interpretation and the enforcement of this
Agreement  shall be governed by  California  Law as applied to  residents of the
State of California relating to contracts executed in and to be performed solely
within the State of  California.  In the event any  dispute is  arbitrated,  the
prevailing Party (as determined by the arbiter(s))  shall be entitled to recover
that  Party's  reasonable   attorney's  fees  incurred  (as  determined  by  the
arbiter(s)).

         IN WITNESS WHEREOF,  this Consulting Agreement has been executed by the
Parties as of the date first above written.

Diamond Entertainment Corporation                   Consultant




/s/ James Lu                                         /s/ Owen Naccarato
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James Lu                                             Owen Naccarato
Chief Executive Officer