# Management Services
Memorandum

CONFIDENTIAL

This Management Services Memorandum (Memorandum) is BY and BETWEEN

LIVESTAR Entertainment Group, Inc.
(LIVESTAR)having office at 4th floor 62 w. 8th Ave Vancouver,
BC V5Y 1M7

And 673100 BC Ltd. (673) at #5
 744 West 7th Avenue Vancouver, BC V5Z 1B8.

Whereas 673 is a corporation duly
established under the laws of the Province of British Columbia to provide management and
consulting services to other corporations;

Whereas LIVESTAR is a corporation
established under the laws of the State of Nevada and is desirous of utilizing the
services of 673;

Whereas this Memorandum outlines the
understanding of the parties of the following terms and conditions of Service between
LIVESTAR and 673;

Whereas this Memorandum outlines the
understanding of the parties of the following terms and conditions of Service between
LIVESTAR and 673.

| | 1. | Role and Scope of Work:
| | -- | -----------------------

| | a. | 673
will provide the services of Edwin Kwong (EK) to act as an officer and
               director and provide services to LIVESTAR and its LIVESTAR subsidiaries.
See                Schedule A for details.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2. | Term & Compensation:
| | -- | --------------------

| | a. | TERM
 Starting on January 1, 2004 for a term of 3 years.
| | -- | ---------------------------------------------------------

| | b. | Cash
               Compensation/Management Services Fees  $6,667 USD /month
| | -- | -----------------------------------------------------------------------------

| | c. | Fees
will be                paid on invoice from 673.
| | -- | -----------------------------------------------------

| | d. | Annual
Cash Compensation and Stock Compensation will be reviewed every six (6)
               months of the Term.
| | -- | -----------------------------------------------------------------------------------------------------------------

| | e. | The
Parties agree that, at their mutual discretion,                LIVESTAR has the right to
make an offer of employment to EK during the Term, and                that EK has the
right to accept such offer, without any hindrance from 673,                irrespective
of the terms of any employment or services agreement between 673                and EK
including non-compete and non-solicitation.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | f. | 673
will have the right to receive additional Cash Compensation from LIVESTAR
               subsidiaries/ventures that EK is contributing significant services.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | g. | Stock
Compensation  EK will have the right be granted Stock based
               Compensation whether in form of Stock Options or Stock Grants. Both
parties                agree to determine Stock Based Compensation as early as possible
in the Term.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | h. | Additional
Performance-Based Fees and/or Bonuses  673 will have the right                to
earn additional fees and/or bonuses from LIVESTAR or any of its
               subsidiaries/ventures. The type of additional fees/bonuses will be of the
               following nature:
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | i. | Additional
Cash Compensation/Service Fees based on To Be Determined (TBD)                milestones
ii. Additional Stock Compensation (Stock Options or Grants) based on                TBD
milestones iii. Additional Stock Options on TBD milestones iv. No such
               fees/bonuses will be payable until the specific performance bonus terms
are                determined  and approved by the board and subsequently earned by 673.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3. | Expenses: LIVESTAR agrees to meet all of 673s expenses in carrying out
               work for LIVESTAR provided that these are for valid and approved business
               purposes conducted on behalf of LIVESTAR, and that for all expenses above $25,
               they are supported by receipts. 673 will submit expense reimbursement claims
               once per month.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4. | Health Benefits: LIVESTAR will provide the same health benefits to EK as are
               provided to its own employees.
| | -- | --------------------------------------------------------------------------------------------------------------------------

| | 5. | Termination Terms:
| | -- | ------------------

| | a. | Notice
Terms  If LIVESTAR terminates this Memorandum it must give 673 60
               days written notice. IF 673 terminates this Memorandum it must give
LIVESTAR 90                days written notice.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b. | Termination
Provisions  If 673s services are terminated the                following
provisions will take effect:
| | -- | -------------------------------------------------------------------------------------------------------------------

| | c. | All
outstanding invoices or salaries from 673 will become due and payable
               immediately
| | -- | ----------------------------------------------------------------------------------------------------

| | d. | All
outstanding Loans from EK or 673 are due and payable                immediately
| | -- | -----------------------------------------------------------------------------------

| | e. | 673
will have the right to convert any outstanding invoices,                salaries, loans
payable or other income payable to common stock @ reasonable                discount to
market price with demand registration rights
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | f. | All
unvested options will be vested immediately
| | -- | -----------------------------------------------

| | g. | All
Property Development Compensation Agreements will remain in effect
| | -- | ----------------------------------------------------------------------

| | h. | LIVESTAR
will have the right to offer a buy out of 673s equity position,
          convertible rights and any and all Property Development Compensation Agreements
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | Both parties understand that this Memorandum provides the basis for a long-form
          agreement to be completed within 90 days of the signing of this Memorandum. In
          the case the long-form agreement is not fully executed before the end of
          aforementioned 90 days, the 90-day period will automatically be renewed to
          afford time to complete the long-form agreement.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | This Memorandum and any subsequent long-form agreement are subject to approval
          by the Board of Directors of LIVESTAR.
|-- | -------------------------------------------------------------------------------------------------------------------------------

|8. | This Memorandum once approved by the Board of Directors of LIVESTAR will be
          binding upon both parties until replaced by the aforementioned long form
          agreement.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | LIVESTAR acknowledges that 673 may have other clients and to the extent that
          EKs efforts may be required to service them he may do so provided that it
          does not impact the effectiveness of his work for LIVESTAR, does not compete
          with it in any way, and does not require material time from that available for
          LIVESTAR which is essentially full-time during the term of this Memorandum.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | Effective the date above written, this Memorandum supersedes and replaces the
          Management and Services Memorandum By and Between LIVESTAR and Edwin Kwong dated
          January 1, 2002.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. | This Memorandum is governed by the laws of the State of Nevada.
|--- | ---------------------------------------------------------------

Agreed and Accepted on this
1st day of January, 2004.

|________________________________________________
LIVESTAR Entertainment Group, Inc.              
Authorized Signatory | ______________________________________________
    673100 BC Ltd.
|---------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------

# Schedule A

Role and Scope of Work

| |  | ROLE
#1 - Director, COO and interim CFO LIVESTAR ENTERTAINMENT GROUP, INC.
| | - | --------------------------------------------------------------------------

| |  | All
above roles have the following scope of work duties including but not limited to the
following: developing, directing and managing the operational efficiency of the Company;
the management and support of all Accounting and Administrative functions within the
Company; business development; financial management.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------