**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      20-F**

**(Mark      one)**

| **[                  ]** | **REGISTRATION                STATEMENT PURSUANT TO SECTION 12(****b****)3                OR (****g****)                OF THE SECURITIES EXCHANGE ACT OF                1934** |
|------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**OR**

| **[                X ]** | **ANNUAL                REPORT PURSUANT TO SECTION 13 OR 15(****d****)                OF THE SECURITIES EXCHANGE ACT OF                1934** |
|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

**April      30, 2006**

**OR**

| **[                  ]** | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(****d****)                OF THE SECURITIES EXCHANGE ACT OF                1934** |
|------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

**OR**

| **[                  ]** | **SHELL                COMPANY REPORT PURSUANT TO SECTION 13 OR 15(****d****)                OF THE SECURITIES EXCHANGE ACT OF                1934** |
|------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

**333-107199**

| **PACIFIC                GOLD ENTERTAINMENT INC.**                                                             |
|----------------------------------------------------------------------------------------------------------------|
| (Exact                name of Registrant specified in its charter)                                             |
|                                                                                                           |
| N/A                                                                                             |
| (Translation                of Registrant’s name into English)                                      |
|                                                                                                           |
| British                Columbia                                                                      |
| (Jurisdiction                of incorporation or organization)                                            |
|                                                                                                           |
| Suite                # 7, 536 Cambie Street, Vancouver, British Columbia, V6B 2N7,                Canada  |
| (Address                of principal executive                offices)                                    |

|  **Title                of each class** |  **Name                of each exchange on which registered** |
|----------------------------------------------|--------------------------------------------------------------------|
|                                         |                                                               |
| None                          | N/A                                                      |

**Page          - 1**

----

| None                            |
|---------------------------------|
| (Title                of Class) |

| Shares                of Common Stock |
|---------------------------------------|
| (Title                of Class)       |

| **Class**                             | **Outstanding                at April 30, 2006** |
|---------------------------------------|--------------------------------------------------|
| Shares                of Common Stock | 2,000,000                                        |

**[       ] Yes [ X ] No**

**[        ] Yes [ X ] No**

**[      X ] Yes [   ] No**

**Larger      accelerated filer [   ] **
**Accelerated      filer [   ]**
**Non-accelerated      filer [ X ]**

**[        ] Item 17 [ X ] Item 18**

**[        ] Yes [ X ] No**

**Page          - 2**

----

**PACIFIC      GOLD ENTERTAINMENT INC.**

**Form      20-F**

**PART      I**

**Item      1. Identity of Directors, Senior Management and Advisers. **

**Item      2. Offer Statistics and Expected Timetable. **

**Item      3. Key Information. **

**A.**
**Selected      financial data.**

**PGE      Inc.**

| **(US$)**                                                       | **April                30** |
|-----------------------------------------------------------------|-----------------------------|
| **Statement                of Operations Data**                 | **2006**                    | **2005** | **2004** | **2003** |
|                                                            | $                           | $ | $ | $ |
| Revenue                - Sales                                  | 0                           | 8,464 | 0 | 0 |
| Costs                of sales                                   | 0                           | 5,120 | 0 | 0 |
| Website                development and maintenance              | 4,218                       | 10,000 | 0 | 0 |
| Operating                expenses                               | 5,521                       | 9,513 | 0 | 0 |
| Total                expenses                                   | 9,739                       | 24,663 | 6,189 | 2,379 |
| Net                loss                                         | (9,739)                     | (16,169) | (6,189) | (2,379) |
| Other                comprehensive income (loss)                | (2,307)                     | 0 | 87 | (42) |
| Comprehensive                loss                               | (12,046)                    | (16,169) | (6,102) | (2,421) |
|                                                            |                        |   |   |   |
| Weighted                average number of shares                | 2,000,000                   | 2,000,000 | 2,000,000 | 219,178 |
| Basic                and diluted loss per shares                | $(0.01)                     | $(0.01) | $(0.01) | $(0.01) |
|                                                            |                        |   |   |   |
| **(US$)**                                                       | **April                30** |
| **Statement                of Operations Data**                 | **2006**                    | **2005** | **2004** | **2003** |
|                                                            | $                           | $ | $ | $ |
| Cash                and cash equivalents                        | 4,294                       | 0 | 13 | 1,389 |
|                                                            |                        |   |   |   |
| Total                current assets                             | 9,234                       | 3,344 | 13 | 1,389 |
|                                                            |                        |   |   |   |
| Total                Assets                                     | 9,234                       | 3,344 | 13 | 1,389 |
|                                                            |                        |   |   |   |
| Accounts                payable and accrued liabilities         | 15,988                      | 17,144 | 3,644 | 2,093 |
| Due                to related party                             | 28,589                      | 9,497 | 3,497 | 322 |
| Total                Liabilities                                | 44,577                      | 26,641 | 7,141 | 2,415 |
|                                                            |                        |   |   |   |
| Shareholders’                equity (deficiency)          | (35,343)                    | (23,297) | (7,128) | (1,026) |
|                                                            |                        |   |   |   |
| Total                Liabilities and Shareholders’ Equity | 9,234                       | 3,344 | 13 | 1,389 |

**Page          - 3**

----

**[Source:      Bank of Canada]**

| **High                and Low Exchange Rates for Previous Six Months** |
|------------------------------------------------------------------------|
|                                                                   | **High** | **Low** |
| October                2006                                            | 1.1385 | 1.1153 |
| September                2006                                          | 1.1273 | 1.1056 |
| August                2006                                             | 1.1315 | 1.1066 |
| July                2006                                               | 1.1416 | 1.1061 |
| June                2006                                               | 1.1245 | 1.1004 |
| May                2006                                                | 1.1233 | 1.0990 |

| **Annual                Average Exchange Rates** |
|--------------------------------------------------|
|                                             | CDN$                per US$1.00 |
| 2006                                             | 1.1779 |
| 2005                                             | 1,2637 |
| 2004                                             | 1.3015 |
| 2003                                             | 1.3916 |

**B.**
**Capitalization      and indebtedness.**

**C.**
**Reason      for offer and use of proceeds.**

**D.**
**Risk      factors.**

**Risks      associated with PGE Inc.’s business.**

| **1.  ** | **PGE                Inc. may not be able to continue as a going concern as a result of                its                history of operating losses and PGE Inc. not being able to raise                additional financing.** |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 4**

----

| **2.  ** | **PGE                Inc. has a limited history of operations and has losses that it expects                to                continue into the future. If the losses continue PGE Inc. will have                to                suspend operations or cease                operations.** |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.  ** | **PGE                Inc.****is                relatively new to the film production industry with a limited history                of                operations and, as a result, PGE Inc.’s ability to operate and compete                effectively may be affected                negatively.** |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4.  ** | **PGE                Inc. faces substantial capital requirements and financial                risks.** |
|--------------------|--------------------------------------------------------------------------------------------------------|

**Page          - 5**

----

| **5.  ** | **PGE                Inc.’s revenues and results of operations are difficult to predict and                are                influenced by a variety of factors, which may cause revenues and                results                of operations to fluctuate                significantly.** |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6.  ** | **PGE                Inc.’s profits, if any, may be negatively impacted by currency exchange                fluctuations****.** |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| **7.  ** | **Failure                to manage future growth may adversely affect PGE Inc.’s                business****.** |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

**Page          - 6**

----

| **8.  ** | **Since                PGE Inc.’s success depends on its arrangement with Pathway Films Inc. for                the use of the studio and equipment, any alternation to or the termination                of that arrangement may negatively effect PGE Inc.’s                operations****.** |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Risks      associated with PGE Inc.’s industry.**

| **9.  ** | **PGE                Inc.’s business operations could be adversely affected by strikes or other                union job actions.** |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| **10.  ** | **PGE                Inc. faces****substantial                competition in all aspects of PGE Inc.’s business****.** |
|---------------------|------------------------------------------------------------------------------------------------------------------------------|

| **11.  ** | **PGE                Inc. faces****risks                from doing business internationally****.** |
|---------------------|----------------------------------------------------------------------------------------------------|

**Page          - 7**

----

| **12.  ** | **PGE                Inc. may****lose                certain benefits by failing to meet certain Canadian regulatory                requirements****.** |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

*Investment      Canada Act (Canada)*

**Page          - 8**

----

| **13.  ** | **An                investment by non-Canadians in****PGE                Inc.’s business may constitute an acquisition of                control.** |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| **14.  ** | **Protecting                and defending against intellectual property claims may have a material                adverse effect on PGE Inc.’s****business.** |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **15.  ** | **Piracy                of motion pictures, including digital and internet piracy, may reduce                the                gross receipts from the exploitation of PGE Inc.’s                films.** |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 9**

----

**Risks      associated with PGE Inc.**

| **16.  ** | **The                loss of key personnel could adversely affect PGE Inc.’s                business.** |
|---------------------|---------------------------------------------------------------------------------------------------------------|

| **17.  ** | **PGE                Inc.’s****officers,                directors and principal shareholders own more than 50% of the outstanding                shares of common stock in the capital of PGE Inc., and as a result,                they                are able to decide who will be directors and you are not able to                elect any                directors, which may lead to the entrenchment of                management.** |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **18.  ** | **PGE                Inc.****does                not expect to pay cash dividends in the foreseeable                future**. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------|

| **19.  ** | **If                and when PGE Inc.’s shares of common stock are listed for quotation on the                NASD’s OTC Bulletin Board, any sale of a significant amount of PGE Inc.’s                shares of common stock into the public market may depress PGE Inc.’s stock                price.** |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **20.  ** | **“****Penny                Stock” rules may make buying or selling PGE Inc.’s shares of common stock                difficult, and severely limit the market and liquidity of the shares                of                common stock.** |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 10**

----

**Item      4. Information on Pacific Gold Entertainment Inc. **

**PGE      Inc.**

**A.**
**History      and development of Pacific Gold Entertainment Inc.**

**B.**
**Business      overview.**

**Products**

**Page          - 11**

----

**Blood**

**Beneath**

**Crimson**

**SUBhuman      2 - The Crimson Palace**

**SUBhuman      Extreme Edition**

**Butchers      Block**

**Beneath:      Buried Alive**

**Page          - 12**

----

**SUBhuman      Destroyer**

**Partners      in Production**

**Markets**

**Dependence      on Partners**

**Page          - 13**

----

**Competition**

**Film      Projects**

*Open      Water, Cabin Fever, Saw,*
*The      Blair Witch Project *
*Crash      *

**Video      Games**

**Government      Regulation**

**Page          - 14**

----

**Tax      Credits**

*Investment      Canada Act (Canada)*

**Investment      by Non-Canadians**

**Page          - 15**

----

**C.**
**Organizational      structure.**

**D.**
**Property,      plants and equipment.**

**Item      4A. Unresolved Staff Comments. **

**Item      5. Operating and Financial Review and Prospects. **

**A.**
**Operating      results.**

**Year      Comparisons between 2006 and 2005**

**B.**
**Liquidity      and capital resources.**

**C.**
**Research      and development, patents and licenses, etc.**

**Page          - 16**

----

**D.**
**Trend      information.**

**E.**
**Off-balance      sheet arrangements.**

**F.**
**Tabular      disclosure of contractual obligations.**

|                                                | **Payments                due (by period)** |
|-----------------------------------------------------|---------------------------------------------|
|                                                |                                        | less                than |   |   | more                than |
| **Contractual                Obligations**          | Total                                       | one                year | 1-3                years | 3-5                years | 5                years |
| Long-term                debt obligations           | $nil                                        | $nil | $nil | $nil | $nil |
| Debentures                                          | $nil                                        | $nil | $nil | $nil | $nil |
| Long-term                accounts payable           | $nil                                        | $nil | $nil | $nil | $nil |
| Contractual                commitments              | $nil                                        | $nil | $nil | $nil | $nil |
| Retirement                and severance indemnities | $nil                                        | $nil | $nil | $nil | $nil |

**G.**
**Safe      Harbor.**

**Page          - 17**

----

**Item      6. Directors, Senior Management and Employees. **

**A.**
**Directors      and senior management.**

***Mark      Tuit***

***Ron      Loudoun***

***Michael      George***

***Rene      Daignault***

***Advisory      Board***

***Bren      Lynne -***
**Lead      Developer**

***Mathew      Rose -***
**Video      Game Designer**

**Page          - 18**

----

***Robert      Merilees -***
**Industry      Advisor**

***Charles      Martin Smith -***
**Industry      Advisor**

**B.**
**Compensation.**

**C.**
**Board      practices.**

**Page          - 19**

----

**D.**
**Employees.**

**E.**
**Share      ownership.**

| **Title                of Class**                   | **Name                and Address of Beneficial Owner**                                                                                                               | **Amount                and Nature of Beneficial Owner** | **Percent****of                Class**[1] |
|-----------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|-------------------------------------------|
| shares                ofcommon                stock | **Ron                Loudoun**536                Cambie Street, Suite #7Vancouver,                British ColumbiaV6B                2N7 Canada                       | 3,500,000                [2]                             | 35%                                       |
| shares                ofcommon                stock | **Mark                Tuit**536                Cambie Street, Suite #7Vancouver,                British ColumbiaV6B                2N7 Canada                         | 400,000                                                  | 4.0%                                      |
| shares                ofcommon                stock | **Michael                George**536                Cambie Street, Suite #7Vancouver,                British ColumbiaV6B                2N7 Canada                    | 200,000                                                  | 2.0%                                      |
| shares                ofcommon                stock | **Rene                Daignault**1100                Melville Street, 6th                FloorVancouver,                British ColumbiaV6E                4A6 Canada | 200,000                [3]                               | 2.0%                                      |
| shares                ofcommon                stock | Directors                and Executive Officers (as a group)                                                                                                          | 4,300,000                                                | 43%                                       |

**Item      7. Major Shareholders and Related Party Transactions. **

**A.**
**Major      shareholders.**

**Page          - 20**

----

|  **Title                of Class**             |  **Name                and Address of Beneficial Owner**                                                                                      |  **Amount                and Nature of Beneficial Owner**[1] |  **Percent****of                Class**[2] |
|-----------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------|
| shares                ofcommon                stock | **Ron                Loudoun**536                Cambie Street, Suite #7Vancouver,                British ColumbiaV6B                2N7 Canada    | 3,500,000                [3]                                      | 35%                [4]                [5]       |
| shares                ofcommon                stock | **Richard                Powell**536                Cambie Street, Suite #9Vancouver,                British ColumbiaV6B                2N7 Canada | 3,000,000                [6]                                      | 30%                                             |
| shares                ofcommon                stock | **Will                Loudoun**1559                Pritchard DriveWestbank,                British ColumbiaV4T                1X4 Canada           | 1,032,500                                                         | 10.3%                [8]                        |

**B.**
**Related      party transactions.**

**Agreements      with Daval Productions Ltd.**

**Page          - 21**

----

**Options      Agreements with Mark Tuit**

**C.**
**Interest      of experts and counsel.**

**Item      8. Financial Information. **

**A.**
**Consolidated      Statements and Other Financial Information.**

**B.**
**Significant      Changes.**

**Item      9. The Offer and Listing. **

**A.**
**Offer      and listing details.**

**B.**
**Plan      of distribution.**

**C.**
**Markets.**

**D.**
**Selling      shareholders.**

**E.**
**Dilution.**

**F.**
**Expense      of the issue.**

**Page          - 22**

----

**Item      10. Additional Information. **

**A.**
**Share      capital.**

**B.**
**Memorandum      and articles of association.**

*Business      Corporations Act*

**C.**
**Material      contracts.**

**Option      & Literary Purchase Agreements**

**Agreements      with Daval Productions Ltd.**

**Page          - 23**

----

**D.**
**Exchange      controls.**

*Income      Tax Act*

**Competition      Act**

**ICA**

|   | (a) | acquisition                of shares of common stock by a person in the ordinary course of a                person’s                business as a trader or dealer in                securities; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | acquisition                of control of a Canadian corporation in connection with the realization                of                security granted for a loan or other financial assistance and not                for any                purpose related to the provisions of the ICA;                and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | acquisition                of control of a Canadian corporation by reason of an amalgamation,                merger,                consolidation or corporate reorganization following which the ultimate                direct or indirect control in fact of the corporation, through the                ownership of voting interests, remains                unchanged. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 24**

----

**E.**
**Taxation.**

**THERE      ARE RECIPROCAL TAX TREATIES BETWEEN CANADA AND THE UNITED STATES.**
**INVESTORS      IN PGE INC. ARE URGED TO CONSULT THEIR TAX ADVISORS AS TO THE PARTICULAR      CONSEQUENCES TO THEM UNDER U.S. FEDERAL, STATE, LOCAL AND APPLICABLE FOREIGN      TAX      LAWS OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF SHARES OF COMMON      STOCK.**

**Material      Canadian Federal Income Tax Consequences**

**Holder**
*Income      Tax Act*

***Dividends***

**Part      XIII Tax**
**Treaty**

***Capital      Gains***

*Income      Tax Act*

**Page          - 25**

----

**Material      United States Federal Income Tax Consequences**

**Code**
**IRS**
**This      discussion does not consider the potential effects, both adverse and beneficial,      of any recently proposed legislation, which, if enacted, could be applied,      possibly on a retroactive basis, at any time. This discussion is for general      information only and it is not intended to be, nor should it be construed to      be,      legal or tax advice to any holder or prospective holder of shares of common      stock of PGE Inc. and no opinion or representation with respect to United States      federal income tax consequences to any such holder or prospective holder is      made. Accordingly, holders and prospective holders of shares of common stock      of      PGE Inc. should consult their own tax advisors about the federal, state, local,      and foreign tax consequences of purchasing, owning and disposing of shares      of      common stock of PGE Inc.**

***U.S.      Holders***

**U.S.      Holder**

***Distribution      on Shares of Common Stock of PGE Inc.***

**Page          - 26**

----

***Information      Reporting and Backup Withholding***

***Foreign      Tax Credit***

***Disposition      of Shares of Common Stock of PGE Inc.***

**Page          - 27**

----

***Currency      Exchange Gains or Losses***

***Other      Considerations***

**●      **
**Foreign      Personal Holding Company**

**●      **
**Foreign      Investment Company**

**●      **
**Passive      Foreign Investment Company**

**PFIC**

**Page          - 28**

----

**Electing      U.S. Holder**

**Page          - 29**

----

**●      **
**Controlled      Foreign Corporation**

**Page          - 30**

----

**F.**
**Dividends      and paying agents.**

**G.**
**Statements      by experts.**

**H.**
**Documents      on display.**

**I.**
**Subsidiary      information.**

**Item      11. Quantitative and Qualitative Disclosure About Market Risk.**

*Statistics      *
*Canada*

**Item      12. Description of Securities Other than Equity Securities.**

**A.**
**Debt      Securities.**

**Page          - 31**

----

**B.**
**Warrants      and Rights.**

**C.**
**Other      Securities.**

**D.**
**American      Depository Shares.**

**PART      II**

**Item      13. Defaults, Dividends Arrearages and Delinquencies. **

**Item      14. Material Modifications to the Rights of Security Holders and Use of      Proceeds. **

**E.**
**Use      of proceeds.**

**Item      15. Controls and Procedures. **

**Disclosure      Controls and Procedures**

**Exchange      Act**
**Evaluation      Date**

**Management’s      annual report on internal control over financial      reporting**

**Page          - 32**

----

**Changes      in Internal Controls**

**Item      16A. Audit committee financial expert. **

**Item      16B. Code of Ethics. **

**Item      16C. Principal Accountant Fees and Services. **

**(1)        Audit Fees and Related Fees**

**(2)      Audit-Related Fees**

**Page          - 33**

----

**(3)        Tax Fees**

**(4)        All Other Fees**

**(5)**

**(6)**

**Item      16D. Exemptions from the Listing Standards for Audit Committees.**

**Item      16E. Purchase of Equity Securities by Pacific Gold Entertainment Inc. and      Affiliated Purchasers. **

**PART      III**

**Item      17. Financial Statements. **

**Item      18. Financial Statements. **

**Page          - 34**

----

**PACIFIC      GOLD**

**ENTERTAINMENT      INC.**

**(formerly      CyPacific Trading Inc.)**

**Financial      Statements**

**April      30, 2006 and 2005**

**(Expressed      in US dollars)**

**Index**
**Page**

**Report      of Independent Registered Public Accounting Firm**

**Financial      Statements**

**Page            - 35**

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

**TO      THE BOARD OF DIRECTORS OF PACIFIC GOLD ENTERTAINMENT INC.**

**(FORMERLY      CYPACIFIC TRADING INC.)**

*/s/      Pannell Kerr Forster*

**Page          - 36**

----

**PACIFIC      GOLD ENTERTAINMENT INC.**

**(formerly      CyPacific Trading Inc.)**

**(A      Development Stage Company)**

**Balance      Sheets (note 1)**

**April      30**

**(Expressed      in US dollars)**

|                                                                 |   | **2006** |   | **2005** |
|----------------------------------------------------------------------|--------|----------|--------|----------|
|                                                                 |   |     |   |     |
| **Assets**                                                           |   |     |   |     |
|                                                                 |   |     |   |     |
| **Current**                                                          |   |     |   |     |
| Cash                                                                 | $      | 4,294    | $      | 0        |
| Due                from Daval Productions Inc. (note 4)              |   | 3,679    |   | 3,344    |
| GST                receivable                                        |   | 1,261    |   | 0        |
|                                                                 |   |     |   |     |
| **Total                Current Assets and Assets**                   | $      | 9,234    | $      | 3,344    |
|                                                                 |   |     |   |     |
| **Liabilities**                                                      |   |     |   |     |
|                                                                 |   |     |   |     |
| **Current**                                                          |   |     |   |     |
| Accounts                payable and accrued liabilities              | $      | 15,988   | $      | 17,144   |
| Due                to related party (note 4)                         |   | 15,744   |   | 9,497    |
| Due                to Pathway Films (note 4)                         |   | 12,845   |   | 0        |
|                                                                 |   |     |   |     |
| **Total                Current Liabilities and Liabilities**         |   | 44,577   |   | 26,641   |
|                                                                 |   |     |   |     |
| **Stockholders’                Deficit**                       |   |     |   |     |
|                                                                 |   |     |   |     |
| **Common                Stock**                (note 8)              |   |     |   |     |
| Authorized                                                           |   |     |   |     |
| 100,000,000shares                of common stock without par value   |   |     |   |     |
| Issued                and outstanding                                |   |     |   |     |
| 2,000,000shares                of common stock                       |   | 1,395    |   | 1,395    |
| **Deficit                Accumulated During the Development Stage**  |   | (34,476) |   | (24,737) |
| **Accumulated                Other Comprehensive Income (Loss)**     |   | (2,262)  |   | 45       |
|                                                                 |   |     |   |     |
|                                                                 |   |     |   |     |
| **Total                Stockholders’ Equity (Deficit)**        |   | (35,343) |   | (23,297) |
|                                                                 |   |     |   |     |
| **Total                Liabilities and Stockholders’ Deficit** | $      | 9,234    | $      | 3,344    |

**Page            - 37**

----

**PACIFIC      GOLD ENTERTAINMENT INC.**

**(formerly      CyPacific Trading Inc.)**

**(A      Development Stage Company)**

**Statements      of Operations and Comprehensive Loss (note 1)**

**(Expressed      in US dollars)**

|                                         |      | **Year                Ended April 30, 2006** |      | **Year                Ended April 30, 2005** |      | **Year                Ended April 30, 2004** |   | **Cumulative                From Inception (March 21, 2003) to April 30,                2006** |
|----------------------------------------------|-----------|---------------------------------------------------|-----------|---------------------------------------------------|-----------|---------------------------------------------------|--------|------------------------------------------------------------------------------------------------|
|                                         |      |                                              |      |                                              |      |                                              |   |                                                                                           |
| **Sales**                                    | $         | 0                                                 | $         | 8,464                                             | $         | 0                                                 | $      | 8,464                                                                                          |
|                                         |      |                                              |      |                                              |      |                                              |   |                                                                                           |
| **Cost                of Sales**             |      | 0                                                 |      | 4,274                                             |      | 0                                                 |   | 4,274                                                                                          |
| **Sales                Commissions**         |      | 0                                                 |      | 846                                               |      | 0                                                 |   | 846                                                                                            |
|                                         |      |                                              |      |                                              |      |                                              |   |                                                                                           |
|                                         |      | 0                                                 |      | 5,120                                             |      | 0                                                 |   | 5,120                                                                                          |
|                                         |      |                                              |      |                                              |      |                                              |   |                                                                                           |
| **Revenue                from Operations**   |      | 0                                                 |      | 3,344                                             |      | 0                                                 |   | 3,344                                                                                          |
|                                         |      |                                              |      |                                              |      |                                              |   |                                                                                           |
| **General                and**               |      |                                              |      |                                              |      |                                              |   |                                                                                           |
| **Administrative                Expenses**   |      |                                              |      |                                              |      |                                              |   |                                                                                           |
| Website                construction and      |      |                                              |      |                                              |      |                                              |   |                                                                                           |
| Maintenance                                  |      | 4,218                                             |      | 10,000                                            |      | 0                                                 |   | 14,218                                                                                         |
| Cable                and Internet            |      | 337                                               |      | 0                                                 |      | 0                                                 |   | 337                                                                                            |
| Interest                and bank charges     |      | 207                                               |      | 0                                                 |      | 0                                                 |   | 207                                                                                            |
| Office                                       |      | 0                                                 |      | 13                                                |      | 77                                                |   | 412                                                                                            |
| Professional                fees             |      | 4,350                                             |      | 3,513                                             |      | 6,112                                             |   | 16,019                                                                                         |
| Consulting                fees               |      | 627                                               |      | 6,000                                             |      | 0                                                 |   | 6,627                                                                                          |
|                                         |      |                                              |      |                                              |      |                                              |   |                                                                                           |
|                                         |      | 9,739                                             |      | 19,526                                            |      | 6,189                                             |   | 37,820                                                                                         |
|                                         |      |                                              |      |                                              |      |                                              |   |                                                                                           |
| **Net                Loss**                  |      | (9,739)                                           |      | (16,182)                                          |      | (6,189)                                           |   | (34,476)                                                                                       |
| **Other                Comprehensive**       |      |                                              |      |                                              |      |                                              |   |                                                                                           |
| **Income                (Loss)**             |      |                                              |      |                                              |      |                                              |   |                                                                                           |
| Foreign                currency              |      |                                              |      |                                              |      |                                              |   |                                                                                           |
| Translation                gain (loss)       |      | (2,307)                                           |      | 0                                                 |      | 87                                                |   | (2,262)                                                                                        |
|                                         |      |                                              |      |                                              |      |                                              |   |                                                                                           |
| **Comprehensive                Loss**        | $         | (12,046)                                          | $         | (16,182)                                          | $         | (6,102)                                           | $      | (36,738)                                                                                       |
|                                         |      |                                              |      |                                              |      |                                              |   |                                                                                           |
| **Loss                Per Common Share,**    |      |                                              |      |                                              |      |                                              |   |                                                                                           |
| basic                and diluted             | $         | (0.01)                                            | $         | (0.01)                                            | $         | 0.00                                              | $      | 0.00                                                                                           |
|                                         |      |                                              |      |                                              |      |                                              |   |                                                                                           |
| **Weighted                Average Number**   |      |                                              |      |                                              |      |                                              |   |
| **of                Shares of Common Stock** |      |                                              |      |                                              |      |                                              |   |
| **Issued                and Outstanding**    | 2,000,000 |                                              | 2,000,000 |                                              | 2,000,000 |                                              |   |

**Page            - 38**

----

**PACIFIC      GOLD ENTERTAINMENT INC.**

**(formerly      CyPacific Trading Inc.)**

**(A      Development Stage Company)**

**Statements      of Stockholders’ Equity (Deficit)**

**Period      from Inception (March 21, 2003) to April 30, 2006**

**(Expressed      in US dollars)**

|                                               |   | Common                Stock |   | Deficit                Accumulated During the Development |   | Accumulated                Other Comprehensive Income |
|----------------------------------------------------|--------|-----------------------------|--------|-----------------------------------------------------------|--------|-------------------------------------------------------|
|                                               |   | Shares                      |   | Amount                                                    |   | Stage                                                 |   | (Loss) |
|                                               |   |                        |   |                                                      |   |                                                  |   |   |
| Inception,                March 21, 2003           |   | 0                           | $      | 0                                                         | $      | 0                                                     | $ | 0 |
| Shares                issued for cash              |   | 2,000,000                   |   | 1,395                                                     |   | 0                                                     |   | 0 |
| Foreign                currency translation (loss) |   | 0                           |   | 0                                                         |   | 0                                                     |   | (42) |
| Net                loss for period                 |   | 0                           |   | 0                                                         |   | (2,379)                                               |   | 0 |
|                                               |   |                        |   |                                                      |   |                                                  |   |   |
| Balance,                April 30, 2003             |   | 2,000,000                   |   | 1,395                                                     |   | (2,379)                                               |   | (42) |
| Foreign                currency translation gain   |   | 0                           |   | 0                                                         |   | 0                                                     |   | 87 |
| Net                loss for year                   |   | 0                           |   | 0                                                         |   | (6,189)                                               |   | 0 |
|                                               |   |                        |   |                                                      |   |                                                  |   |   |
| Balance,                April 30, 2004             |   | 2,000,000                   |   | 1,395                                                     |   | (8,568)                                               |   | 45 |
| Net                loss for year                   |   | 0                           |   | 0                                                         |   | (16,169)                                              |   | 0 |
|                                               |   |                        |   |                                                      |   |                                                  |   |   |
| Balance,                April 30, 2005             |   | 2,000,000                   |   | 1,395                                                     |   | (24,737)                                              |   | 45 |
| Foreign                currency translation (loss) |   | 0                           |   | 0                                                         |   | 0                                                     |   | (2,307) |
| Net                loss for year                   |   | 0                           |   | 0                                                         |   | (9,739)                                               |   | 0 |
|                                               |   |                        |   |                                                      |   |                                                  |   |   |
| Balance,                April 30, 2006             |   | 2,000,000                   | $      | 1,395                                                     | $      | (34,476)                                              | $ | (2,262) |

**Page            - 39**

----

**PACIFIC      GOLD ENTERTAINMENT INC.**

**(formerly      CyPacific Trading Inc.)**

**(A      Development Stage Company)**

**Statements      of Cash Flows (note 1)**

**(Expressed      in US dollars)**

|                                        |   | **Year                Ended April 30, 2006** |   | **Year                Ended April 30, 2005** |   | **Year                Ended April 30, 2004** |   | **Cumulative                From Inception (March 21, 2003) to April 30,                2006** |
|---------------------------------------------|--------|---------------------------------------------------|--------|---------------------------------------------------|--------|---------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|
|                                        |   |                                              |   |                                              |   |                                              |   |                                                                                                     |
| **Operating                Activities**     |   |                                              |   |                                              |   |                                              |   |                                                                                                     |
| Net                loss                     | $      | (9,739)                                           | $      | (16,169)                                          | $      | (6,189)                                           | $      | (34,476)                                                                                                 |
| **Changes                in Non-Cash**      |   |                                              |   |                                              |   |                                              |   | 0                                                                                                        |
| **Working                Capital**          |   |                                              |   |                                              |   |                                              |   | 0                                                                                                        |
| Due                from Daval               |   |                                              |   |                                              |   |                                              |   | 0                                                                                                        |
| Productions                Inc.             |   | (335)                                             |   | (3,344)                                           |   | 0                                                 |   | (3,679)                                                                                                  |
| Accounts                payable and         |   |                                              |   |                                              |   |                                              |   | 0                                                                                                        |
| accrued                liabilities          |   | (1,156)                                           |   | 13,500                                            |   | 1,490                                             |   | 15,988                                                                                                   |
| GST                receivable               |   | (1,261)                                           |   | 0                                                 |   | 0                                                 |   | (1,261)                                                                                                  |
| Due                to Pathway Films         |   | 12,845                                            |   | 0                                                 |   | 3,236                                             |   | 12,845                                                                                                   |
|                                        |   |                                              |   |                                              |   |                                              |   |                                                                                                     |
| **Cash                Provided by (Used**   |   |                                              |   |                                              |   |                                              |   |                                                                                                     |
| **in)                Operating Activities** |   | 354                                               |   | (6,013)                                           |   | (1,463)                                           |   | (10,583)                                                                                                 |
|                                        |   |                                              |   |                                              |   |                                              |   |                                                                                                     |
| **Financing                Activities**     |   |                                              |   |                                              |   |                                              |   |                                                                                                     |
| Due                to related party         |   | 6,247                                             |   | 6,000                                             |   | 0                                                 |   | 15,744                                                                                                   |
| Issuance                of common           |   |                                              |   |                                              |   |                                              |   |                                                                                                     |
| stock                for cash               |   | 0                                                 |   | 0                                                 |   | 0                                                 |   | 1,395                                                                                                    |
|                                        |   |                                              |   |                                              |   |                                              |   |                                                                                                     |
|                                        |   | 6,247                                             |   | 6,000                                             |   | 0                                                 |   | 17,139                                                                                                   |
|                                        |   |                                              |   |                                              |   |                                              |   |                                                                                                     |
| **Effect                of Foreign**        |   |                                              |   |                                              |   |                                              |   |                                                                                                     |
| **Currency                Translation**     |   | (2,307)                                           |   | 0                                                 |   | 87                                                |   | (2,262)                                                                                                  |
|                                        |   |                                              |   |                                              |   |                                              |   |                                                                                                     |
| **Inflow                (Outflow) of Cash** |   | 4,294                                             |   | (13)                                              |   | (1,376)                                           |   | 4,294                                                                                                    |
| **Cash,                Beginning of**       |   |                                              |   |                                              |   |                                              |   |                                                                                                     |
| **Period**                                  |   | 0                                                 |   | 13                                                |   | 1,389                                             |   | 0                                                                                                        |
|                                        |   |                                              |   |                                              |   |                                              |   |                                                                                                     |
| **Cash,                End of Period**      | $      | 4,294                                             | $      | 0                                                 | $      | 13                                                | $      | 4,294                                                                                                    |

**Page          - 40**

----

**PACIFIC        GOLD ENTERTAINMENT INC.**

**(formerly        CyPacific Trading Inc.)**

**(A        Development Stage Company)**

**Notes        to Financial Statements**

**Period        from Inception (March 21, 2003) to April 30, 2006**

**(Expressed        in US dollars)**

----

| **1.  ** | **INCORPORATION,                NATURE OF OPERATIONS AND                GOING-CONCERN** |
|--------------------|-----------------------------------------------------------------------------------------|

| **2.  ** | **SIGNIFICANT                ACCOUNTING POLICIES** |
|--------------------|----------------------------------------------------|

| (a)   | Revenue                recognition |
|-----------------|------------------------------------|

| (b)   | Loss                per share |
|-----------------|-------------------------------|

| (c)   | Foreign                currency translation |
|-----------------|---------------------------------------------|

| (i)   | Assets                and liabilities, at the rate of exchange at the balance sheet date;                and |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| (ii)   | Revenues                and expenses, at the average rate of exchange for the                year. |
|------------------|----------------------------------------------------------------------------------------------------|

**Page            - 41**

----

**PACIFIC        GOLD ENTERTAINMENT INC.**

**(formerly        CyPacific Trading Inc.)**

**(A        Development Stage Company)**

**Notes        to Financial Statements**

**Period        from Inception (March 21, 2003) to April 30, 2006**

**(Expressed        in US dollars)**

----

| **2.** | **SIGNIFICANT                ACCOUNTING POLICIES**                (Continued) |
|--------|-------------------------------------------------------------------------------|

| (c)   | Foreign                currency translation (Continued) |
|-----------------|---------------------------------------------------------|

| (d)   | Website                development and maintenance |
|-----------------|----------------------------------------------------|

| (e)   | Use                of estimates |
|-----------------|---------------------------------|

| (f)   | Income                taxes |
|-----------------|-----------------------------|

*“Accounting      for Income Taxes”*

| (g)   | Recent                accounting pronouncements |
|-----------------|-------------------------------------------------|

**Page          - 42**

----

**PACIFIC        GOLD ENTERTAINMENT INC.**

**(formerly        CyPacific Trading Inc.)**

**(A        Development Stage Company)**

**Notes        to Financial Statements**

**Period        from Inception (March 21, 2003) to April 30, 2006**

**(Expressed        in US dollars)**

----

**2.**
**SIGNIFICANT      ACCOUNTING POLICIES**

| (g)   | Recent                accounting pronouncements                (Continued) |
|-----------------|----------------------------------------------------------------------------|

*“Accounting      for Certain Financial Instruments with Characteristics of both Liabilities      and      Equity”*

*“Amendment      of Statement No. 133 on Derivative Instruments and Hedging      Activities”*

**Page          - 43**

----

**PACIFIC        GOLD ENTERTAINMENT INC.**

**(formerly        CyPacific Trading Inc.)**

**(A        Development Stage Company)**

**Notes        to Financial Statements**

**Period        from Inception (March 21, 2003) to April 30, 2006**

**(Expressed        in US dollars)**

----

| **3.  ** | **FINANCIAL                INSTRUMENTS** |
|--------------------|------------------------------------------|

| (a)   | Fair                value |
|-----------------|---------------------------|

| (b)   | Interest                rate risk |
|-----------------|-----------------------------------|

| (c)   | Translation                risk |
|-----------------|---------------------------------|

| **4.  ** | **RELATED                PARTY TRANSACTIONS** |
|--------------------|-----------------------------------------------|

|   | (a) | Amounts                due from Daval are unsecured, have no stated terms of repayments,                are                non-interest bearing, and must be translated from Canadian dollars                into US                dollars at exchange rates prevailing at the year end. Daval is owned                by a                director of the Company and is the Company’s sole customer, providing 100%                of the Company’s revenue to date. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The                Company entered into a contract to provide services to a company                in which                a principal was also the controlling shareholder of the Company.                The                amount owing has no fixed terms of repayment and does not bear                interest. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The                amount due to a director is unsecured, does not bear interest and                has no                fixed terms of repayment. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Amounts                due to Pathway are unsecured, have no stated terms of repayment,                are                non-interest bearing, and must be translated from Canadian dollars                into US                dollars at exchange rates prevailing at the year-end. Pathway is                100%                owned by a director of the Company. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **5.  ** | **COMMON                STOCK** |
|--------------------|---------------------------------|

**Page          - 44**

----

**PACIFIC        GOLD ENTERTAINMENT INC.**

**(formerly        CyPacific Trading Inc.)**

**(A        Development Stage Company)**

**Notes        to Financial Statements**

**Period        from Inception (March 21, 2003) to April 30, 2006**

**(Expressed        in US dollars)**

----

| **6.  ** | **INCOME                TAXES** |
|--------------------|---------------------------------|

| Expiry | Non-capital                losses for Canadian tax purposes |
|--------|-------------------------------------------------------------|
|   |                                                        |
| 2012   | $                8,600                                      |
| 2015   | $16,200                                                     |
| 2026   | $                9,700                                      |

|                                    | **2005** | **2004** |
|-----------------------------------------|----------|----------|
|                                    |     |
| Future                income tax assets | $        | 11,700   | $ | 8,800 |
| Valuation                allowance      |     | (11,700) |   | (8,800) |
|                                    |     |     |   |   |
|                                    | $        | 0        | $ | 0 |

| **7.  ** | **SUBSEQUENT                EVENTS** |
|--------------------|--------------------------------------|

| (c)   | Subsequent                to April 30, 2006, the Company changed its name from CyPacific                Trading Inc. to Pacific Gold Entertainment                Inc. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | On                June 27, 2006, the Company declared a four for one share stock dividend,                which resulted in an increase of the Company’s issued and outstanding                common stock from 2,000,000 common shares to 10,000,000 common                shares. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | On                July 10, 2006, the Company acquired five film projects from a company                wholly owned by the Company’s President and CEO. The film projects were                acquired pursuant to the terms and conditions of five separate Option                and                Literary Purchase Agreements. The Company acquired each film project                for                CDN $32,000 per film project, with payment due on the first day of                production for each film project. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 45**

----

**Item      19. Exhibits.**

**(a)**
**Index      to and Description of Exhibits.**

|  **Exhibit**  |  **Description**                                                                                                                                                                                                                                    |  **Status**  |
|-------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|
|  **1.1**      |  Memorandum,                filed as a Exhibit 3.1 to PGE Inc.’s Form F-1 (Registration Statement)                filed on July 18, 2003 and incorporated herein by reference.                                                                |  Filed       |
|  **1.2**      |  Articles                of Incorporation, filed as Exhibit 3.2 to PGE Inc.’s Form F-1                (Registration Statement) filed on July 18, 2003 and incorporated                herein by                reference.                     |  Filed       |
|  **1.3**      |  Transition                Application dated March 30, 2006.                                                                                                                                                                                        |  Included    |
|  **1.4**      |  Notice                of Articles dated June 27, 2006.                                                                                                                                                                                             |  Included    |
|  **4.1**      |  Option                & Literary Purchase Agreement dated July 10, 2006 between Pacific Gold                Entertainment Inc. and Somnambulist Imagery Inc. for the literary                property                “SUBhuman”    |  Included    |
|  **4.2**      |  Option                & Literary Purchase Agreement dated July 10, 2006 between Pacific Gold                Entertainment Inc. and Somnambulist Imagery Inc. for the literary                property                “Beneath”     |  Included    |
|  **4.3**      |  Option                & Literary Purchase Agreement dated July 10, 2006 between Pacific Gold                Entertainment Inc. and Somnambulist Imagery Inc. for the literary                property                “Crimson”     |  Included    |
|  **4.4**      |  Option                & Literary Purchase Agreement dated July 10, 2006 between Pacific Gold                Entertainment Inc. and Somnambulist Imagery Inc. for the literary                property                “Blood”       |  Included    |
|  **4.5**      |  Option                & Literary Purchase Agreement dated July 10, 2006 between Pacific Gold                Entertainment Inc. and Somnambulist Imagery Inc. for the literary                property                “SUBhuman 2”  |  Included    |
|  **11**       |  Code                of Ethics                                                                                                                                                                                                                      |  Included    |
|  **12**       |  Certifications                pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                           |  Included    |
|  **13**       |  Certification                pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002.                                                                               |  Included    |
|  **15.1**     |  Audit                Committee Charter                                                                                                                                                                                                             |  Included    |

**Page          - 46**

----

**SIGNATURES**

**PACIFIC      GOLD ENTERTAINMENT INC.**

*/s/      Mark Tuit*

**Mark      Tuit**

**:**
**Director      and CEO**

**November      29, 2006**

**Page          - 47**

----

**Exhibit      12**

**Page          - 48**

----

**PACIFIC      GOLD ENTERTAINMENT INC**
**.      **

**CERTIFICATIONS      PURSUANT TO **

**SECTION      302 OF THE SARBANES-OXLEY ACT OF 2002 **

**CERTIFICATION      **

*/s/      Mark Tuit*

**Page          - 49**

----

**PACIFIC      GOLD ENTERTAINMENT INC**
**.      **

**CERTIFICATIONS      PURSUANT TO **

**SECTION      302 OF THE SARBANES-OXLEY ACT OF 2002 **

**CERTIFICATION      **

*/s/      Ron Loudoun*

**Page          - 50**

----

**Exhibit      13**

**Page          - 51**

----

**CERTIFICATION      PURSUANT TO **

**18      U.S.C. SECTION 1350, **

**AS      ADOPTED PURSUANT TO **

**SECTION      906 OF THE SARBANES-OXLEY ACT OF 2002 **

*/s/      Mark Tuit*

**Page          - 52**

----

**CERTIFICATION      PURSUANT TO **

**18      U.S.C. SECTION 1350, **

**AS      ADOPTED PURSUANT TO **

**SECTION      906 OF THE SARBANES-OXLEY ACT OF 2002**

*/s/      Ron Loudoun*

**Page          - 53**

----

**Exhibit        1.3**

**Page            - 54**

----

**Page          - 55**

----

**Page          - 56**

----

**Page          - 57**

----

**Page          - 58**

----

**Exhibit        1.4**

**Page            - 59**

----

**Page          - 60**

----

**Page          - 61**

----

**Exhibit        4.1**

**Page            - 62**

----

**Pacific        Gold Entertainment Inc.**

**OPTION      & LITERARY PURCHASE AGREEMENT**

**PGE**
**      Seller**

**SELLER’S      REPRESENTATIONS AND WARRANTIES:**

| **(a)  ** | **Sole                Proprietor**:                The Seller represents and warrants to PGE that the Seller is the                sole and                exclusive proprietor, throughout the world of that certain original                literary material written by Mark Tuit entitled SUBHUMAN (previously                known                as SHELF LIFE) (the “**Literary                Property**”). |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(b)  ** | **Facts**:                The Seller represents and warrants to PGE that the following statements                are true and correct in all respects with respect to said literary                material: |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | The                Seller is the sole author of the Literary                Property. |
|-----------------|---------------------------------------------------------------------------------------|

| (ii)   | The                Literary Property was registered for copyright in the name of SUBHUMAN,                under copyright registration number (Pending), in the Office of the                United                States Register of Copyrights, Washington,                D.C. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(c)  ** | **No                Infringement or Violation of Third Party Rights**:                The Seller represents and warrants to PGE that the Seller has not                adapted                the Literary Property from any other literary, dramatic or other                material                of any kind, nature or description, nor, excepting for material which                is                in the public domain, has the Seller copied or used in the Literary                Property the plot, scenes, sequence or story of any other literary,                dramatic or other material; that the Literary Property does not infringe                upon any common law or statutory rights in any other literary, dramatic,                or other material; that as far as the Seller has knowledge, no material                in                the Literary Property is libelous or vocative of the right of privacy                of                any person and the full use of the rights in the Literary Property                which                are covered by the within option would not violate any rights of                any                person, firm or corporation; and that the Literary Property is not                in the                public domain in any country in the world where copyright protection                is                available. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(d)  ** | **No                Impairment of Rights**:                The Seller represents and warrants to PGE that the Seller is the                exclusive                proprietor, throughout the world, of the rights in the Literary Property,                which are covered by the within option; that the Seller has not assigned,                licensed nor in any manner encumbered, diminished or impaired these                rights; that the Seller has not committed nor omitted to perform                any act                by which these rights could or will be encumbered, diminished or                impaired;                and that there is no outstanding claim or litigation pending against                or                involving the title, ownership and/or copyright in the Literary Property,                or in any part of it, or in the rights which are covered by the within                option. The Seller further represents and warrants that no attempt                hereafter will be made to encumber, diminish or impair any of the                rights                herein granted and that all appropriate protections of such rights                will                continue to be maintained by the                Seller. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 63**

----

**Pacific      Gold Entertainment Inc.**

| **2.  ** | **CONSIDERATION                FOR OPTION:**                In                consideration of the payment to the Seller of the sum of $1.00, receipt                of                which is acknowledged, the Seller agrees to and does give and grant                to PGE                the exclusive and irrevocable option to purchase from the Seller                the                rights in the Literary Property as described in Exhibit “A” for the total                purchase price specified and payable as provided in Exhibit “A”, provided                that any sums paid under this Clause 2 or any other provision of                this                agreement with respect to the option will be credited against the                first                sums payable on account of such purchase price. If PGE fails to exercise                this option, then the sums paid to the Seller hereunder with respect                to                the option will be and remain the sole property of the                Seller. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.  ** | **OPTION                PERIOD:**                The within option will be effective during the period commencing                on July                10, 2006 and ending August 1, 2008 (the “**Initial                Option Period**”). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4.  ** | **EXERCISE                OF OPTION**: |
|--------------------|----------------------------------------|

| **(a)  ** | **Notice                of Exercise**:                If PGE elects to exercise the within option, PGE (any time during                the                Initial Option Period) will serve upon the Seller notice of the exercise                of it. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | The                purchase price will be paid to the Seller according to Exhibit                “A”. |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| **5.  ** | **EFFECTIVENESS                OF EXHIBITS “A”****AND****“B”:**                Concurrently with the execution of this agreement, the Seller has                executed                Exhibits “A” (Literary Purchase Agreement) and “B” (Short Form Option                Agreement for Recordation), which are undated, and it is agreed that                if                PGE exercises the option (but not otherwise), then the signature                of the                Seller to Exhibits “A” and “B” will be deemed to be effective, and these                Exhibits will constitute valid and binding agreements and assignment                effective as of the date of exercise of such option, and PGE is authorized                and empowered to date such instruments accordingly. If PGE fails                to                exercise the option, then the signature of the Seller to Exhibits“A” and                “B” will be void and of no further force or effect whatever, and PGE                will                not be deemed to have acquired any rights in or to the Literary Property                other than the option hereinabove provided for. If PGE exercises                the                option, PGE will execute and deliver to the Seller copies of Exhibit“A”,                dated as of the date of the exercise of the option, and the Seller                will,                if so requested by PGE, execute and deliver to PGE additional copies                of                Exhibits “A” and “B”. Notwithstanding the failure or omission of either                party to execute and/or deliver such additional documents, it is                agreed                that upon the exercise of the option by PGE pursuant to the provisions                of                Exhibit “A” will be deemed vested in PGE, effective as of the date of                exercise of the option, which rights will be                irrevocable. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6.  ** | **RIGHT                TO ENGAGE IN PRE-PRODUCTION:**                The Seller acknowledges that PGE may, at its own expense, during                the                Initial Option Period, undertake pre-production activities in connection                with any of the rights to be acquired hereunder including, without                limitation, the preparation and submission of treatments and/or                screenplays based on the Literary                Property. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.  ** | **RESTRICTIONS:**                During the Initial Option Period, the Seller will not exercise or                otherwise use any of the rights herein granted to PGE and as more                particularly described in Exhibit “A” hereof nor the rights reserved to                the Seller pursuant to Clause 2 (Rights Reserved) of Exhibit “A”, nor will                the Seller permit the use of nor will the Seller use any other right                the                Seller has reserved in a way that would in any manner or for any                purpose                unfairly compete with, interfere with or conflict with the full and                unrestricted use of the rights herein granted to PGE and as described                in                Exhibit “A”. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 64**

----

**Pacific      Gold Entertainment Inc.**

| **8.  ** | **ASSIGNMENT:**                This agreement and the rights granted hereunder may be assigned by                PGE to                any other person, firm or corporation without the consent of the                Seller,                provided the assignee accepts all the obligations of PGE under this                agreement as a condition of the                assignment. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9.  ** | **FORCE                MAJEURE:**“Force                Majeure” means any fire, flood, earthquake or public disaster; strike,                labor dispute or unrest; embargo, riot, war, insurrection or civil                unrest;                any act of God, any act of legally constituted authority; or any                other                cause beyond PGE’s control which would excuse PGE’s performance as a                matter of law. If because of Force Majeure, PGE’s performance hereunder is                delayed or prevented, then the Initial Option period will be extended                for                the time of such delay or                prevention. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **10.  ** | **SECTION                HEADINGS:**                The headings of paragraphs, sections and other subdivisions of this                agreement are for convenient reference only and they will not be                used in                any way to govern, limit, modify, construe this agreement or any                part or                provision of it. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **11.  ** | **ARBITRATION:**                Any controversy or claim arising out of or in relation to this agreement                or the validity, construction or performance of this agreement, or                the                breach thereof, will be resolved by arbitration in accordance with                the                rules and procedures of the American Film Marketing Association,                as said                rules may be amended from time to time with rights of discovery if                requested from the arbitrator. Such rules and procedures are incorporated                and made a part of this agreement by reference. If the American Film                Marketing Association refuses to accept jurisdiction of such dispute,                then                the parties will arbitrate such matter before and in accordance with                the                rules of the Canadian Arbitration Association under its jurisdiction                in                Vancouver, British Columbia before a single arbitrator familiar with                entertainment law. The parties will have the right to engage in                pre-hearing discovery in connection with such arbitration proceedings                if                approved by the arbitrator. The parties hereto will abide by and                perform                any award rendered in any arbitration conducted pursuant hereto,                that any                court having jurisdiction thereof may issue a judgment based upon                such                award and that the prevailing party in such arbitration and/or                confirmation proceeding will be entitled to recover its reasonable                attorneys fees and expenses. The arbitration award will be final,                binding                and non-appealable. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **12.  ** | **ENTIRE                AGREEMENT:**                This agreement, including the Exhibits attached hereto, contains                the                complete understanding and agreement between the parties with respect                to                the within subject matter, and supersedes all other agreements between                the                parties whether written or oral relating thereto, and may not be                modified                or amended except by written instrument executed by both of the parties                hereto. This agreement will in all respects be subject to the laws                of the                Province of British Columbia applicable to agreements executed and                wholly                performed within such Province. All the rights, licenses, privileges                and                property herein granted to PGE are irrevocable and not subject to                rescission, restraint, or injunction under any or all                circumstances. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Pacific      Gold Entertainment Inc.**

*/s/      Ron Loudoun*

**Somnambulist      Imagery Inc.**

*/s/      Mark Tuit*

**Page            - 65**

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**Seller**
**PGE**

**Literary      Property**

| 1.   | **RIGHTS                GRANTED:**                The Seller sells, grants, conveys and assigns to PGE, its successors,                licensees and assigns exclusively and forever, all motion picture                rights                (including all silent, sound dialogue and musical motion picture                rights),                all television motion-picture and other television rights, with all                radio                broadcasting rights and all publication rights for advertisement,                publicity and exploitation purposes, and certain incidental and allied                rights, throughout the world, in and to the Literary Property and                in and                to the copyright of it and all renewals and extensions of copyright.                Included among the rights granted to PGE hereunder (without in any                way                limiting the grant of rights hereinabove made) are the following                sole and                exclusive rights throughout the                world: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | To                make, produce, adapt and copyright one or more motion picture adaptations                or versions, whether fixed on film, tape, disc, wire, audio-visual                cartridge, cassette, DVD, or through any other technical process                whether                now known or from now on devised, based in whole or in part on the                Literary Property, of every size, gauge, colour or type, including,                but                not limited to, musical motion pictures and remakes of and sequels                to any                motion picture produced hereunder and motion pictures in series or                serial                form, and for such purposes to record and reproduce and license others                to                record and reproduce, in synchronization with such motion pictures,                spoken                words taken from or based upon the text or theme of the property                and any                kinds of music, musical accompaniments and/or lyrics to be performed                or                sung by the performers in any such motion picture and any other kinds                of                sound and sound effects. |
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| (b)   | To                exhibit, perform, rent, lease and generally deal in and with any                motion                picture produced hereunder: |
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| (i)   | by                all means or technical processes whatsoever, whether now known or                from now                on devised including, by way of example only, film, tape, disc, wire,                audio-visual cartridge, cassette, DVD, or television (including                commercially sponsored, sustaining, and subscription or pay-per-view                television, or any derivative of it);                and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | anywhere                whatsoever, including homes, theatres and elsewhere, and whether                a fee is                charged, directly or indirectly, for viewing any such motion                picture. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | To                broadcast, transmit or reproduce the Literary Property or any adaptation                or version of it (including without limitations to, any motion picture                produced hereunder and/or any script or other material based on or                using                the Literary Property or any of the characters, themes or plots of                it), by                means of television or any process analogous thereto whether now                known or                from now on devised (including commercially sponsored, sustaining                and                subscription or pay-per-view television, Internet and Video on Demand),                by                motion pictures produced on films or by means of magnetic tape, wire,                disc, audio-visual cartridge, DVD, or any other device now known                or from                now on devised and including such television productions presented                in                series or serial form, and the exclusive right generally to exercise                for                television purposes all the rights granted to PGE hereunder for motion                picture purposes. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 66**

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**Pacific      Gold Entertainment Inc.**

| (d)   | Without                limiting any other rights granted PGE, to broadcast and/or transmit                by                television or radio or any process analogous thereto whether now                known or                from now on devised, all or any part of the Literary Property or                any                adaptation or version of it, including any motion picture or any                other                version or versions of it, and announcements about said motion picture                or                other version or versions, for advertising, publicizing or exploiting                such                motion picture or other version or versions, which broadcasts or                transmissions may be accomplished with living actors performing                simultaneously with such broadcast or transmission or by any other                method                or means including the use of motion pictures (including trailers)                reproduced on film or by means of magnetic tape or wire or through                other                recordings or transcriptions. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | To                publish and copyright or cause to be published and copyrighted in                the name                of the PGE or its nominee in any languages throughout the world,                in any                form or media, synopses, novelizations, serializations, dramatizations,                abridged and/or revised versions of the Literary Property, adapted                from                the Literary Property or from any motion picture and/or other version                of                the Literary Property for advertising, publicizing and/or exploiting                any                such motion picture and/or other                version. |
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| (f)   | For                the foregoing purposes to use all or any part of the Literary Property                and                any of the characters, plots, themes and/or ideas contained therein,                and                the title of the Literary Property and any title or subtitle of any                component of the Literary Property, and to use said titles or subtitles                for any motion picture or other version or adaptation whether the                same is                based on or adapted from the Literary Property and/or as the title                of any                musical composition contained in any such motion picture or other                version                or adaptation. |
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| (g)   | To                use and exploit commercial or merchandise tie-ups and recordings                of any                sort and nature arising out of or connected with the Literary Property                and/or its motion picture or other versions and/or the title or titles                of                it and/or the characters of it and/or their names or                characteristics. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Picture**
**Pictures**

| 2.   | **RIGHTS                RESERVED:**                The following rights are reserved to the Seller for the Seller’s use and                disposition, subject, however, to the provisions of this                agreement: |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)**  ** | **Stage                Rights**:                The right to perform the Literary Property or adaptations of it on                the                spoken stage with actors appearing in person in the immediate presence                of                the audience, provided no broadcast, telecast, recording, photography                or                other reproduction of such performance is made. The Seller agrees                not to                exercise, or permit any other person to exercise, said stage rights                earlier than three (3) years after the first general release or telecast,                if earlier, of the first Picture produced hereunder, or five (5)                years                after the date of exercise of PGE’s option to acquire the Literary                Property, whichever is earlier. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)**  ** | **Author-Written                Sequel**:                A                literary property (story, novel, drama or otherwise), whether written                before or after the Literary Property and whether written by the                Seller or                by a successor in interest of the Seller, using one or more of the                characters appearing in the Literary Property, participating in different                events from those found in the Literary Property, and whose plot                is                substantially different from that of the Literary Property. The Seller                will have the right to exercise publication rights (i.e., in book                or                magazine form) any time. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 67**

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**Pacific      Gold Entertainment Inc.**

| (c)   | The                Seller agrees not to exercise, or permit any other person to exercise,                any                other rights (including but not limited to motion picture or allied                rights) of any kind in or to any author-written sequel earlier than                one                year after the first general release of the first Picture produced                hereunder, or two years after the date of exercise of PGE’s option to                acquire the Literary Property, whichever is earlier, provided such                restriction on the Seller’s exercise of said author-written sequel rights                will be extended to any period during which there is in effect, in                any                particular country or territory, a network television broadcasting                agreement for a television motion picture, (i) based upon the Literary                Property, or (ii) based upon any Picture produced in the exercise                of                rights assigned herein, or (iii) using a character or characters                of the                Literary Property, plus one year, which will also be a restricted                period                in such country or territory, whether such period occurs wholly or                partly                during or entirely after the one (1) year period first referred to                in this                clause. Any disposition of motion picture or allied rights in an                author-written sequel made to any person or company other than PGE                will be                made subject to the following limitations and                restrictions: |
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| (d)   | Since                the characters of the Literary Property are included in the exclusive                grant of motion picture rights to PGE, no sequel rights or television                series rights to the Literary Property may be granted, but such characters                from the Literary Property which are contained in the author-written                sequel may be used in a motion picture and remakes of it whose plot                is                based substantially on the plot of the respective author-written                sequel. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | **RIGHT                TO MAKE CHANGES:**                The Seller agrees that PGE will have the unlimited right to vary,                change,                alter, modify, add to and/or delete from the Literary Property, and                to                rearrange and/or transpose the Literary Property and change the sequence                of it and the characters and descriptions of the characters contained                in                the Literary Property, and to use a portion or portions of the Literary                Property or the characters, plots, or theme of it with any other                literary,                dramatic or other material of any kind. The Seller waives the benefits                of                any provisions of law known as the “droit moral” or any similar law in any                country of the world and agrees not to permit or prosecute any action                or                lawsuit on the ground that any Picture or other version of the Literary                Property produced or exhibited by PGE, its assignees or licensees,                in any                way constitutes an infringement of any of the Seller’s droit moral or is                in any way a defamation or mutilation of the Literary Property or                any part                of it or contains unauthorized variations, alterations, modifications,                changes or translations. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | **DURATION                AND EXTENT OF RIGHTS GRANTED:**                PGE will enjoy, solely and exclusively, all the rights, licenses,                privileges and property granted hereunder throughout the world, in                perpetuity, as long as any rights in the Literary Property are recognized                in law or equity, except as far as such period of perpetuity may                be                shortened due to any now existing or future copyright by the Seller                of the                Literary Property and/or any adaptations of it, in which case PGE                will                enjoy its sole and exclusive rights, licenses, privileges and property                hereunder to the fullest extent permissible under and for the full                duration of such copyright or copyrights, whether common law or statutory,                and any renewals and/or extensions of it, and will after that enjoy                all                such rights, licenses, privileges and property non-exclusively in                perpetuity throughout the world. The rights granted herein are in                addition                to and will not be construed in derogation of any rights which PGE                may                have as a member of the public or pursuant to any other agreement.                All                rights, licenses, privileges and property granted herein to PGE are                irrevocable and not subject to rescission, restraint or injunction                under                any circumstances. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | All                rights granted or agreed to be granted to PGE under this agreement                will be                irrevocably vested in PGE and will not be subject to rescission by                the                Seller or any other party for any cause, nor will said rights be                subject                to termination or reversion by operation of law or otherwise, except                to                the extent, if any, that the provisions of any copyright law or similar                law relating to the right to terminate grants of, or recapture rights                in,                literary property may apply. If, pursuant to any such copyright law                or                similar law, the Seller or any successor or any other legally designated                party (all herein referred to as the “**terminating                party**”)                becomes entitled to exercise any right to reversion, recapture or                termination (the “**termination                right**”)                with respect to all or any part of the rights granted or to be granted                under this Agreement, |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 68**

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**Pacific      Gold Entertainment Inc.**

| (b)   | and                if the terminating party exercises said termination right with respect                to                all or part of said rights (the “**recaptured                rights**”),                then from and after the date on which the terminating party has the                right                to transfer to a third party all or part of the recaptured rights,                PGE                will have the first right to purchase and acquire the recaptured                rights                from the terminating party. If the terminating party is prepared                to accept                a bona fide offer from a third party with respect to all or part                of the                recaptured rights, then in each such instance the terminating party                will                notify PGE of such offer which the terminating party is prepared                to accept                and the name of the third party who made the offer to the terminating                party, and the terminating party will offer PGE the right to enter                into an                agreement with the terminating party with respect to the recaptured                rights                on the aforesaid terms and conditions. PGE will have 30 days from                the date                of its receipt of such written offer within which to notify the                terminating party of its acceptance of such offer. If PGE acquires                from                the terminating party all or part of the recaptured rights, then                the                terminating party agrees to enter into appropriate written agreements                with                PGE covering said acquisition. If PGE elects not to purchase the                recaptured rights from the terminating party, then the terminating                party                may dispose of said recaptured rights, but only to the aforesaid                third                party and only upon the terms and conditions specified in the aforesaid                written notice given by the terminating party to PGE, it being understood                and agreed that the terminating party may not dispose of said recaptured                rights either to: (i) any other proposed transferee; or (ii) upon                terms                and conditions which are more favorable to any transferee than the                terms                and conditions previously offered to PGE hereunder, without again                offering                to enter into an agreement with PGE on: (A) the terms offered to                such                other transferee; or (B) such more favorable terms and conditions                offered                to said proposed transferee, whichever of (A) or (B) will apply.                Any such                required offer made to PGE by the terminating party will be governed                by                the procedure set forth in the preceding four sentences of this Paragraph.                The unenforceability of any portion of this paragraph will not invalidate                or affect the remaining portions of this paragraph or this                agreement. |
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| 5.   | **CONSIDERATION:**                As                consideration for all rights granted and assigned to PGE and for                the                Seller’s representations and warranties, PGE agrees to pay to the Seller,                and the Seller agrees to accept: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | For                a theatrical or television motion picture $32,000. CDN payment (payable                first day of production, in equal but not preferred order to other                parties                involved in receiving deferred payment), besides any sums paid in                connection with the option periods so payable upon exercise of the                option                to acquire the Literary Property. |
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| **6.  ** | **REPRESENTATIONS                AND WARRANTIES:** |
|--------------------|----------------------------------------------------|

| (a)**  ** | **Sole                Proprietor**:                The Seller represents and warrants to PGE that the Seller is the                sole and                exclusive proprietor, throughout the universe, of that certain original                literary material written by the Seller entitled “SUBHUMAN” (formerly                known as “SHELF LIFE”). |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)**  ** | **Facts**:                The Seller represents and warrants to PGE as                follows: |
|---------------------|------------------------------------------------------------------------------------------------|

| (iii)   | None                of the rights herein granted and assigned to PGE have been granted                and/or                assigned to any person, firm or corporation other than                PGE. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 69**

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**Pacific      Gold Entertainment Inc.**

| **(c)  ** | **No                Infringement or Violation of Third-Party Rights**:                The Seller represents and warrants to PGE that the Seller has not                adapted                the Literary Property from any other literary, dramatic or other                material                of any kind, nature or description, nor, except material which is                in the                public domain, has the Seller copied or used in the Literary Property                the                plot, scenes, sequence or story of any other literary, dramatic or                other                material; that the Literary Property does not infringe upon any common                law                or statutory rights in any other literary, dramatic or other material;                that no material contained in the Literary Property is libelous or                violative of the right of privacy of any person; that the full utilization                of any and all rights in and to the Literary Property granted by                the                Seller pursuant to this agreement will not violate the rights of                any                person, firm or corporation; and that the Literary Property is not                in the                public domain in any country in the world where copyright protection                is                available. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | No                Impairment of Rights: The Seller represents and warrants to PGE that                the                Seller is the exclusive proprietor, throughout the universe, of all                rights                in and to the Literary Property granted herein to PGE; that the Seller                has                not assigned, licensed or in any manner encumbered, diminished or                impaired                any such rights; that the Seller has not committed or omitted to                perform                any act by which such rights could or will be encumbered, diminished                or                impaired; and that there is no outstanding claim or litigation pending                against or involving the title, ownership and/or copyright in the                Literary                Property, or in any part thereof, or in any rights granted herein                to PGE.                The Seller further represents and warrants that no attempt will be                made                hereafter to encumber, diminish or impair any of the rights granted                herein                and that all appropriate protection of such rights will continue                to be                maintained by the Seller. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.  ** | **INDEMNIFICATION:** |
|--------------------|----------------------|

| (a)   | The                Seller agrees to indemnify PGE against all judgments, liability,                damages,                penalties, losses and expense (including reasonable attorneys’ fees) which                may be suffered or assumed by or obtained against PGE by reason of                any                breach or failure of any warranty or agreement made by the Seller                in this                agreement. |
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| (b)   | PGE                will not be liable to the Seller for damages of any kind in connection                with any Picture it may produce, distribute or exhibit, or for damages                for                any breach of this agreement (except failure to pay the money                consideration herein specified) occurring or accruing before PGE                has had                reasonable notice and opportunity to adjust or correct such                matters. |
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| (c)   | All                rights, licenses and privileges herein granted to PGE are irrevocable                and                not subject to rescission, restraint or injunction under any                circumstances. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | **PROTECTION                OF RIGHTS GRANTED:**                The Seller grants to PGE the free and unrestricted right, but at                PGE’s own                cost and expense, to institute in the name and on behalf of the Seller,                or                the Seller and PGE jointly, any and all suits and proceedings at                law or in                equity, to enjoin and restrain any infringements of the rights herein                granted, and assigns and sets over to PGE any and all causes of action                relative to or based upon any such infringement, as well as any and                all                recoveries obtained thereon. The Seller will not compromise, settle                or in                any manner interfere with such litigation if brought; and PGE agrees                to                indemnify and hold the Seller harmless from any costs, expenses,                or                damages that the Seller may suffer as a result of any such suit or                proceeding. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | **COPYRIGHT:**                Regarding the copyright in and to the Literary Property, the Seller                agrees                that: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | The                Seller will prevent the Literary Property and any arrangements, revisions,                translations, novelizations, dramatizations or new versions thereof,                whether published or unpublished and whether copyrighted or not                copyrighted, from vesting in the public domain, and will take or                cause to                be taken any and all steps and proceedings required for copyright                or                similar protection in any and all countries in which the same may                be                published or offered for sale, insofar as such countries now or hereafter                provide for copyright or similar protection. Any contract or agreement                entered into by the Seller authorizing or permitting the publication                of                the Literary Property or any arrangements, revisions, translations,                novelizations, dramatizations or new versions thereof in any country                will                contain appropriate provisions requiring such publisher to comply                with all                the provisions of this clause. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 70**

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**Pacific      Gold Entertainment Inc.**

| (b)   | Without                limiting the generality of the foregoing, if the Literary Property                or any                arrangement, revision, translation, novelizations, dramatization                or new                version thereof is published in the United States or in any other                country                in which registration is required for copyright or similar protection                in                accordance with the laws and regulations of such country, and the                Seller                further agrees to affix or cause to be affixed to each copy of the                Literary Property or any arrangement, revision, translation,                novelizations, dramatization or new version thereof which is published                or                offered for sale such notice or notices as may be required for copyright                or similar protection in any country in which such publication or                sale                occurs. |
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| (c)   | At                least six months prior to the expiration of any copyright required                by this                provision for the protection of the Literary Property, the Seller                will                renew (or cause to be renewed) such copyright, as permitted by applicable                law, and any and all rights granted PGE hereunder will be deemed                granted                to PGE throughout the full period of such renewed copyright, without                the                payment of any additional consideration, it being agreed that the                consideration payable to the Seller under this agreement will be                deemed to                include full consideration for the grant of such rights to PGE throughout                the period of such renewed                copyright. |
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| (d)   | If                the Literary Property, or any arrangement, revision, translation,                novelization, dramatization or new version thereof, will ever enter                the                public domain, then nothing contained in this agreement will impair                any                rights or privileges that the PGE might be entitled to as a member                of the                public; thus, the PGE may exercise any and all such rights and privileges                as though this agreement were not in existence. The rights granted                in this                agreement by the Seller to PGE, and the representations, warranties,                undertakings and agreements made under this agreement by the Seller,                will                endure in perpetuity and will be in addition to any rights, licenses,                privileges or property of PGE referred to in this sub clause                (d). |
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| 10.   | **CREDIT                OBLIGATIONS:**                PGE will have the right to publish, advertise, announce and use in                any                manner or medium, the name, biography and photographs or likenesses                of the                Seller in connection with any exercise by PGE of its rights hereunder,                provided such use will not constitute an endorsement of any product                or                service. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**WGC      Agreement**

**Page          - 71**

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**Pacific      Gold Entertainment Inc.**

| 11.   | **RIGHT                OF FIRST NEGOTIATION:**                The term “**Right                of First Negotiation**”                means that if, after the expiration of an applicable time limitation,                the                Seller desires to dispose of or exercise a particular right reserved                to                the Seller herein (the “**Reserved                Right**”),                whether directly or indirectly, then the Seller will notify PGE in                writing                and immediately negotiate with PGE regarding such Reserved Right.                If,                after the expiration of 90 days following the receipt of such notice,                no                agreement has been reached, then the Seller may negotiate with third                parties regarding such Reserved Right subject to Clause 12                infra. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.   | **RIGHT                OF LAST REFUSAL:**                The term “**Right                of Last Refusal**”                means that if PGE and the Seller fail to reach an agreement pursuant                to                PGE’s right of first negotiation, and the Seller makes and/or receives                any                bona fide offer to license, lease and/or purchase the particular                Reserved                Right or any interest therein (a “**Third-Party                Offer**”),                and if the proposed purchase price and other material terms of a                Third-Party Offer are no more favorable to the Seller than the terms                which                were acceptable to PGE during the first negotiation period, the Seller                will notify PGE, by registered mail or telegram, if the Seller proposes                to                accept such Third-Party Offer, the name of the offerer, the proposed                purchase price, and other terms of such Third-Party Offer. During                the                period of 30 days after PGE’s receipt of such notice, PGE will have the                exclusive option to license, lease and/or purchase, as the case may                be,                the particular Reserved Right or interest referred to in such Third-Party                Offer, at the same purchase price and upon the same terms and conditions                as set forth in such notice. If PGE elects to exercise thereof by                registered mail or telegram within such thirty (30) day period, failing                which the Seller will be free to accept such Third-Party Offer; provided                that if any such proposed license, lease and/or sale is not consummated                with a third party within 90 days following the expiration of the                aforesaid 30 day period, PGE’s Right of Last Refusal will revive and will                apply to each and every further offer or offers at any time received                by                the Seller relating to the particular Reserved Right or any interest                therein; provided, further, that PGE’s option will continue in full force                and effect, upon all terms and conditions of this paragraph, so long                as                the Seller retains any rights, title or interest in or to the particular                Reserved Right. PGE’s Right of Last Refusal will inure to the benefit of                PGE, its successors and assigns, and will bind the Seller and the                Seller’s                heirs, successors and assigns. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.   | **NO                OBLIGATION TO PRODUCE:**                Nothing herein will be construed to obligate PGE to produce, distribute,                release, perform or exhibit any motion picture, television, theatrical                or                other production based upon, adapted from or suggested by the Literary                Property, in whole or in part, or otherwise to exercise, exploit                or make                any use of any rights, licenses, privileges or property granted herein                to                PGE. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.   | **ASSIGNMENT:**                PGE may assign and transfer this agreement or all or any part of                its                rights hereunder to any person, firm or corporation without limitation,                and this agreement will be binding upon and inure to the benefit                of the                parties hereto and their successors, representatives and assigns                forever. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.   | **NO                PUBLICITY:**                The Seller will not, without PGE’s prior written consent in each instance,                issue or authorize the issuance or publication of any new story or                publicity relating to (i) this agreement, (ii) the subject matter                or terms                hereof, or to any use by PGE, its successors, licensees and assigns,                and                (iii) any of the rights granted PGE                hereunder. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.   | **AGENT                COMMISSIONS:**                PGE will not be liable for any compensation or fee to any agent of                the                Seller in connection with this                Agreement. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.   | **ADDITIONAL                DOCUMENTATION:**                The Seller agrees to execute and procure any other and further instruments                necessary to transfer, convey, assign and copyright all rights in                the                Literary Property granted herein by the Seller to PGE in any country                throughout the world. If it will be necessary under the laws of any                country that copyright registration be acquired in the name of the                Seller,                PGE is authorized by the Seller to apply for said copyright registration                thereof; and, in such event, the Seller will and does assign and                transfer                the same unto PGE, subject to the rights in the Literary Property                reserved                hereunder by the Seller. The Seller further agrees, upon request,                to duly                execute, acknowledge, procure and deliver to PGE such short form                assignments as may be requested by PGE for the purpose of copyright                recordation in any country, or otherwise. If the Seller fails to                so                execute and deliver, or cause to be executed and delivered, the                assignments or other instruments herein referred to, PGE is irrevocably                granted the power coupled with an interest to execute such assignments                and                instruments in the name of the Seller and as the Seller’s                attorney-in-fact. |
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**Pacific      Gold Entertainment Inc.**

| 18.   | **NOTICES:**                All notices to PGE under this agreement will be sent by Canada Post                registered mail, postage prepaid, or by telegram addressed to PGE                at #7 -                534 Cambie Street Vancouver BC V6B- 2N7, and all notices to the Seller                under this agreement will be sent by Canada Post registered mail,                postage                prepaid, or by telegram addressed to the Seller at #7 - 534 Cambie                Street,                Vancouver, British Columbia, V6B 2N7. The date of such deposit will                be                deemed to be the date of service of such                notice. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.   | **ARBITRATION:**                Any controversy or claim arising out of or in relation to this Agreement                or the validity, construction or performance of the Agreement, or                the                breach thereof, will be resolved by arbitration in accordance with                the                rules and procedures of the American Film Marketing Association,                as said                rules may be amended from time to time with rights of discovery if                requested from the arbitrator. Such rules and procedures are incorporated                and made a part of this Agreement by reference. If the American Film                Marketing Association will refuse to accept jurisdiction of such                dispute,                then the parties will arbitrate such matter before and in accordance                with                the rules of the Canadian Arbitration Association under its jurisdiction                in Vancouver, British Columbia before a single arbitrator familiar                with                entertainment law. The parties will have the right to engage in                pre-hearing discovery in connection with such arbitration proceedings                if                approved by the arbitrator. The parties hereto will abide by and                perform                any award rendered in any arbitration conducted pursuant hereto,                that any                court having jurisdiction thereof may issue a judgment based upon                such                award and that the prevailing party in such arbitration and/or                confirmation proceeding will be entitled to recover its reasonable                attorneys fees and expenses. The arbitration award will be final,                binding                and non-appealable. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 73**

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**Pacific      Gold Entertainment Inc.**

| **20.  ** | **MISCELLANEOUS:** |
|---------------------|--------------------|

| (a)   | Relationship:                This agreement between the parties does not constitute a joint venture                or                partnership of any kind. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Cumulative                Rights and Remedies: All rights, remedies, licenses, undertakings,                obligations, covenants, privileges and other property granted herein                will                be cumulative, and PGE may exercise or use any of them separately                or in                conjunction with any one or more of the                others. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Waiver:                A waiver by either party of any term or condition of this agreement                in any                instance will not be deemed or construed to be a waiver of such term                or                condition for the future, or any subsequent breach                thereof. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Severability:                If any provision of this agreement as applied to either party or                any                circumstances will be adjudged by a court to be void and unenforceable,                such will in no way affect any other provision of this agreement,                the                application of such provision in any other circumstance, or the validity                or enforceability of this                agreement. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Governing                Law: This agreement will be construed in accordance with the laws                of the                Province of British Columbia applicable to agreement which are executed                and fully performed within said                Province. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | Captions:                Captions are inserted for reference and convenience only and in no                way                define, limit or describe the scope of this agreement or intent of                any                provision. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | Entire                Understanding: This agreement contains the entire understanding of                the                parties relating to the subject matter, and this agreement cannot                be                changed except by written agreement executed by the party to be                bound. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Somnambulist      Imagery Inc.**

*/s/      Mark Tuit*

**Pacific      Gold Entertainment Inc.**

*/s/      Ron Loudoun*

**Page            - 74**

----

**Pacific      Gold Entertainment Inc.**

**Work**

**Option      Agreement**

*Per: */s/      Mark Tuit*             10      July      2006*

***/s/      Witness***
*10      July      2006*

**Page          - 75**

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**Exhibit      4.2**

**Page            - 76**

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**Pacific      Gold Entertainment Inc.**

**OPTION      & LITERARY PURCHASE AGREEMENT**

**PGE**
**      Seller**

**SELLER’S      REPRESENTATIONS AND WARRANTIES:**

| **(a)  ** | **Sole                Proprietor**:                The Seller represents and warrants to PGE that the Seller is the                sole and                exclusive proprietor, throughout the world of that certain original                literary material written by Mark Tuit entitled FEAR BENEATH (the                “**Literary                Property**”). |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(b)  ** | **Facts**:                The Seller represents and warrants to PGE that the following statements                are true and correct in all respects with respect to said literary                material: |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | The                Seller is the sole author of the Literary                Property. |
|-----------------|---------------------------------------------------------------------------------------|

| (ii)   | The                Literary Property was registered for copyright in the name of FEAR                BENEATH, under copyright registration number (Pending), in the Office                of                the United States Register of Copyrights, Washington,                D.C. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(c)  ** | **No                Infringement or Violation of Third Party Rights**:                The Seller represents and warrants to PGE that the Seller has not                adapted                the Literary Property from any other literary, dramatic or other                material                of any kind, nature or description, nor, excepting for material which                is                in the public domain, has the Seller copied or used in the Literary                Property the plot, scenes, sequence or story of any other literary,                dramatic or other material; that the Literary Property does not infringe                upon any common law or statutory rights in any other literary, dramatic,                or other material; that as far as the Seller has knowledge, no material                in                the Literary Property is libelous or vocative of the right of privacy                of                any person and the full use of the rights in the Literary Property                which                are covered by the within option would not violate any rights of                any                person, firm or corporation; and that the Literary Property is not                in the                public domain in any country in the world where copyright protection                is                available. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(d)  ** | **No                Impairment of Rights**:                The Seller represents and warrants to PGE that the Seller is the                exclusive                proprietor, throughout the world, of the rights in the Literary Property,                which are covered by the within option; that the Seller has not assigned,                licensed nor in any manner encumbered, diminished or impaired these                rights; that the Seller has not committed nor omitted to perform                any act                by which these rights could or will be encumbered, diminished or                impaired;                and that there is no outstanding claim or litigation pending against                or                involving the title, ownership and/or copyright in the Literary Property,                or in any part of it, or in the rights which are covered by the within                option. The Seller further represents and warrants that no attempt                hereafter will be made to encumber, diminish or impair any of the                rights                herein granted and that all appropriate protections of such rights                will                continue to be maintained by the                Seller. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 77**

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**Pacific      Gold Entertainment Inc.**

| **2.  ** | **CONSIDERATION                FOR OPTION:**                In                consideration of the payment to the Seller of the sum of $1.00, receipt                of                which is acknowledged, the Seller agrees to and does give and grant                to PGE                the exclusive and irrevocable option to purchase from the Seller                the                rights in the Literary Property as described in Exhibit “A” for the total                purchase price specified and payable as provided in Exhibit “A”, provided                that any sums paid under this Clause 2 or any other provision of                this                agreement with respect to the option will be credited against the                first                sums payable on account of such purchase price. If PGE fails to exercise                this option, then the sums paid to the Seller hereunder with respect                to                the option will be and remain the sole property of the                Seller. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.  ** | **OPTION                PERIOD:**                The within option will be effective during the period commencing                on July                10, 2006 and ending August 1, 2008 (the “**Initial                Option Period**”). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4.  ** | **EXERCISE                OF OPTION:** |
|--------------------|----------------------------------------|

| **(a)  ** | **Notice                of Exercise**:                If PGE elects to exercise the within option, PGE (any time during                the                Initial Option Period) will serve upon the Seller notice of the exercise                of it. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | The                purchase price will be paid to the Seller according to Exhibit                “A”. |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| **5.  ** | **EFFECTIVENESS                OF EXHIBITS “A”****AND****“B”:**                Concurrently with the execution of this agreement, the Seller has                executed                Exhibits “A” (Literary Purchase Agreement) and “B” (Short Form Option                Agreement for Recordation), which are undated, and it is agreed that                if                PGE exercises the option (but not otherwise), then the signature                of the                Seller to Exhibits “A” and “B” will be deemed to be effective, and these                Exhibits will constitute valid and binding agreements and assignment                effective as of the date of exercise of such option, and PGE is authorized                and empowered to date such instruments accordingly. If PGE fails                to                exercise the option, then the signature of the Seller to Exhibits“A” and                “B” will be void and of no further force or effect whatever, and PGE                will                not be deemed to have acquired any rights in or to the Literary Property                other than the option hereinabove provided for. If PGE exercises                the                option, PGE will execute and deliver to the Seller copies of Exhibit“A”,                dated as of the date of the exercise of the option, and the Seller                will,                if so requested by PGE, execute and deliver to PGE additional copies                of                Exhibits “A” and “B”. Notwithstanding the failure or omission of either                party to execute and/or deliver such additional documents, it is                agreed                that upon the exercise of the option by PGE pursuant to the provisions                of                Exhibit “A” will be deemed vested in PGE, effective as of the date of                exercise of the option, which rights will be                irrevocable. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6.  ** | **RIGHT                TO ENGAGE IN PRE-PRODUCTION:**                The Seller acknowledges that PGE may, at its own expense, during                the                Initial Option Period, undertake pre-production activities in connection                with any of the rights to be acquired hereunder including, without                limitation, the preparation and submission of treatments and/or                screenplays based on the Literary                Property. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.  ** | **RESTRICTIONS:**                During the Initial Option Period, the Seller will not exercise or                otherwise use any of the rights herein granted to PGE and as more                particularly described in Exhibit “A” hereof nor the rights reserved to                the Seller pursuant to Clause 2 (Rights Reserved) of Exhibit “A”, nor will                the Seller permit the use of nor will the Seller use any other right                the                Seller has reserved in a way that would in any manner or for any                purpose                unfairly compete with, interfere with or conflict with the full and                unrestricted use of the rights herein granted to PGE and as described                in                Exhibit “A”. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 78**

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**Pacific      Gold Entertainment Inc.**

| **8.  ** | **ASSIGNMENT:**                This agreement and the rights granted hereunder may be assigned by                PGE to                any other person, firm or corporation without the consent of the                Seller,                provided the assignee accepts all the obligations of PGE under this                agreement as a condition of the                assignment. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9.  ** | **FORCE                MAJEURE:**“Force                Majeure” means any fire, flood, earthquake or public disaster; strike,                labor dispute or unrest; embargo, riot, war, insurrection or civil                unrest;                any act of God, any act of legally constituted authority; or any                other                cause beyond PGE’s control which would excuse PGE’s performance as a                matter of law. If because of Force Majeure, PGE’s performance hereunder is                delayed or prevented, then the Initial Option period will be extended                for                the time of such delay or                prevention. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **10.  ** | **SECTION                HEADINGS:**                The headings of paragraphs, sections and other subdivisions of this                agreement are for convenient reference only and they will not be                used in                any way to govern, limit, modify, construe this agreement or any                part or                provision of it. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **11.  ** | **ARBITRATION:**                Any controversy or claim arising out of or in relation to this agreement                or the validity, construction or performance of this agreement, or                the                breach thereof, will be resolved by arbitration in accordance with                the                rules and procedures of the American Film Marketing Association,                as said                rules may be amended from time to time with rights of discovery if                requested from the arbitrator. Such rules and procedures are incorporated                and made a part of this agreement by reference. If the American Film                Marketing Association refuses to accept jurisdiction of such dispute,                then                the parties will arbitrate such matter before and in accordance with                the                rules of the Canadian Arbitration Association under its jurisdiction                in                Vancouver, British Columbia before a single arbitrator familiar with                entertainment law. The parties will have the right to engage in                pre-hearing discovery in connection with such arbitration proceedings                if                approved by the arbitrator. The parties hereto will abide by and                perform                any award rendered in any arbitration conducted pursuant hereto,                that any                court having jurisdiction thereof may issue a judgment based upon                such                award and that the prevailing party in such arbitration and/or                confirmation proceeding will be entitled to recover its reasonable                attorneys fees and expenses. The arbitration award will be final,                binding                and non-appealable. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **12.  ** | **ENTIRE                AGREEMENT:**                This agreement, including the Exhibits attached hereto, contains                the                complete understanding and agreement between the parties with respect                to                the within subject matter, and supersedes all other agreements between                the                parties whether written or oral relating thereto, and may not be                modified                or amended except by written instrument executed by both of the parties                hereto. This agreement will in all respects be subject to the laws                of the                Province of British Columbia applicable to agreements executed and                wholly                performed within such Province. All the rights, licenses, privileges                and                property herein granted to PGE are irrevocable and not subject to                     rescission, restraint, or injunction under any or all                circumstances. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Pacific      Gold Entertainment Inc.**

*/s/      Ron Loudoun*

**Somnambulist      Imagery Inc.**

*/s/      Mark Tuit*

**Page            - 79**

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**Pacific      Gold Entertainment Inc.**

**Seller**
**PGE**

**Literary      Property**

| 1.   | **RIGHTS                GRANTED:**                The Seller sells, grants, conveys and assigns to PGE, its successors,                licensees and assigns exclusively and forever, all motion picture                rights                (including all silent, sound dialogue and musical motion picture                rights),                all television motion-picture and other television rights, with all                radio                broadcasting rights and all publication rights for advertisement,                publicity and exploitation purposes, and certain incidental and allied                rights, throughout the world, in and to the Literary Property and                in and                to the copyright of it and all renewals and extensions of copyright.                Included among the rights granted to PGE hereunder (without in any                way                limiting the grant of rights hereinabove made) are the following                sole and                exclusive rights throughout the                world: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | To                make, produce, adapt and copyright one or more motion picture adaptations                or versions, whether fixed on film, tape, disc, wire, audio-visual                cartridge, cassette, DVD, or through any other technical process                whether                now known or from now on devised, based in whole or in part on the                Literary Property, of every size, gauge, colour or type, including,                but                not limited to, musical motion pictures and remakes of and sequels                to any                motion picture produced hereunder and motion pictures in series or                serial                form, and for such purposes to record and reproduce and license others                to                record and reproduce, in synchronization with such motion pictures,                spoken                words taken from or based upon the text or theme of the property                and any                kinds of music, musical accompaniments and/or lyrics to be performed                or                sung by the performers in any such motion picture and any other kinds                of                sound and sound effects. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | To                exhibit, perform, rent, lease and generally deal in and with any                motion                picture produced hereunder: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | by                all means or technical processes whatsoever, whether now known or                from now                on devised including, by way of example only, film, tape, disc, wire,                audio-visual cartridge, cassette, DVD, or television (including                commercially sponsored, sustaining, and subscription or pay-per-view                television, or any derivative of it);                and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | anywhere                whatsoever, including homes, theatres and elsewhere, and whether                a fee is                charged, directly or indirectly, for viewing any such motion                picture. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | To                broadcast, transmit or reproduce the Literary Property or any adaptation                or version of it (including without limitations to, any motion picture                produced hereunder and/or any script or other material based on or                using                the Literary Property or any of the characters, themes or plots of                it), by                means of television or any process analogous thereto whether now                known or                from now on devised (including commercially sponsored, sustaining                and                subscription or pay-per-view television, Internet and Video on Demand),                by                motion pictures produced on films or by means of magnetic tape, wire,                disc, audio-visual cartridge, DVD, or any other device now known                or from                now on devised and including such television productions presented                in                series or serial form, and the exclusive right generally to exercise                for                television purposes all the rights granted to PGE hereunder for motion                picture purposes. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 80**

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**Pacific      Gold Entertainment Inc.**

| (d)   | Without                limiting any other rights granted PGE, to broadcast and/or transmit                by                television or radio or any process analogous thereto whether now                known or                from now on devised, all or any part of the Literary Property or                any                adaptation or version of it, including any motion picture or any                other                version or versions of it, and announcements about said motion picture                or                other version or versions, for advertising, publicizing or exploiting                such                motion picture or other version or versions, which broadcasts or                transmissions may be accomplished with living actors performing                simultaneously with such broadcast or transmission or by any other                method                or means including the use of motion pictures (including trailers)                reproduced on film or by means of magnetic tape or wire or through                other                recordings or transcriptions. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | To                publish and copyright or cause to be published and copyrighted in                the name                of the PGE or its nominee in any languages throughout the world,                in any                form or media, synopses, novelizations, serializations, dramatizations,                abridged and/or revised versions of the Literary Property, adapted                from                the Literary Property or from any motion picture and/or other version                of                the Literary Property for advertising, publicizing and/or exploiting                any                such motion picture and/or other                version. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | For                the foregoing purposes to use all or any part of the Literary Property                and                any of the characters, plots, themes and/or ideas contained therein,                and                the title of the Literary Property and any title or subtitle of any                component of the Literary Property, and to use said titles or subtitles                for any motion picture or other version or adaptation whether the                same is                based on or adapted from the Literary Property and/or as the title                of any                musical composition contained in any such motion picture or other                version                or adaptation. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | To                use and exploit commercial or merchandise tie-ups and recordings                of any                sort and nature arising out of or connected with the Literary Property                and/or its motion picture or other versions and/or the title or titles                of                it and/or the characters of it and/or their names or                characteristics. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Picture**
**Pictures**

| 2.   | **RIGHTS                RESERVED:**                The following rights are reserved to the Seller for the Seller’s use and                disposition, subject, however, to the provisions of this                agreement: |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)**  ** | **Stage                Rights**:                The right to perform the Literary Property or adaptations of it on                the                spoken stage with actors appearing in person in the immediate presence                of                the audience, provided no broadcast, telecast, recording, photography                or                other reproduction of such performance is made. The Seller agrees                not to                exercise, or permit any other person to exercise, said stage rights                earlier than three (3) years after the first general release or telecast,                if earlier, of the first Picture produced hereunder, or five (5)                years                after the date of exercise of PGE’s option to acquire the Literary                Property, whichever is earlier. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)**  ** | **Author-Written                Sequel**:                A                literary property (story, novel, drama or otherwise), whether written                before or after the Literary Property and whether written by the                Seller or                by a successor in interest of the Seller, using one or more of the                characters appearing in the Literary Property, participating in different                events from those found in the Literary Property, and whose plot                is                substantially different from that of the Literary Property. The Seller                will have the right to exercise publication rights (i.e., in book                or                magazine form) any time. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 81**

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**Pacific      Gold Entertainment Inc.**

| (c)   | The                Seller agrees not to exercise, or permit any other person to exercise,                any                other rights (including but not limited to motion picture or allied                rights) of any kind in or to any author-written sequel earlier than                one                year after the first general release of the first Picture produced                hereunder, or two years after the date of exercise of PGE’s option to                acquire the Literary Property, whichever is earlier, provided such                restriction on the Seller’s exercise of said author-written sequel rights                will be extended to any period during which there is in effect, in                any                particular country or territory, a network television broadcasting                agreement for a television motion picture, (i) based upon the Literary                Property, or (ii) based upon any Picture produced in the exercise                of                rights assigned herein, or (iii) using a character or characters                of the                Literary Property, plus one year, which will also be a restricted                period                in such country or territory, whether such period occurs wholly or                partly                during or entirely after the one (1) year period first referred to                in this                clause. Any disposition of motion picture or allied rights in an                author-written sequel made to any person or company other than PGE                will be                made subject to the following limitations and                restrictions: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Since                the characters of the Literary Property are included in the exclusive                grant of motion picture rights to PGE, no sequel rights or television                series rights to the Literary Property may be granted, but such characters                from the Literary Property which are contained in the author-written                sequel may be used in a motion picture and remakes of it whose plot                is                based substantially on the plot of the respective author-written                sequel. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | **RIGHT                TO MAKE CHANGES:**                The Seller agrees that PGE will have the unlimited right to vary,                change,                alter, modify, add to and/or delete from the Literary Property, and                to                rearrange and/or transpose the Literary Property and change the sequence                of it and the characters and descriptions of the characters contained                in                the Literary Property, and to use a portion or portions of the Literary                Property or the characters, plots, or theme of it with any other                literary,                dramatic or other material of any kind. The Seller waives the benefits                of                any provisions of law known as the “droit moral” or any similar law in any                country of the world and agrees not to permit or prosecute any action                or                lawsuit on the ground that any Picture or other version of the Literary                Property produced or exhibited by PGE, its assignees or licensees,                in any                way constitutes an infringement of any of the Seller’s droit moral or is                in any way a defamation or mutilation of the Literary Property or                any part                of it or contains unauthorized variations, alterations, modifications,                changes or translations. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | **DURATION                AND EXTENT OF RIGHTS GRANTED:**                PGE will enjoy, solely and exclusively, all the rights, licenses,                privileges and property granted hereunder throughout the world, in                perpetuity, as long as any rights in the Literary Property are recognized                in law or equity, except as far as such period of perpetuity may                be                shortened due to any now existing or future copyright by the Seller                of the                Literary Property and/or any adaptations of it, in which case PGE                will                enjoy its sole and exclusive rights, licenses, privileges and property                hereunder to the fullest extent permissible under and for the full                duration of such copyright or copyrights, whether common law or statutory,                and any renewals and/or extensions of it, and will after that enjoy                all                such rights, licenses, privileges and property non-exclusively in                perpetuity throughout the world. The rights granted herein are in                addition                to and will not be construed in derogation of any rights which PGE                may                have as a member of the public or pursuant to any other agreement.                All                rights, licenses, privileges and property granted herein to PGE are                irrevocable and not subject to rescission, restraint or injunction                under                any circumstances. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | All                rights granted or agreed to be granted to PGE under this agreement                will be                irrevocably vested in PGE and will not be subject to rescission by                the                Seller or any other party for any cause, nor will said rights be                subject                to termination or reversion by operation of law or otherwise, except                to                the extent, if any, that the provisions of any copyright law or similar                law relating to the right to terminate grants of, or recapture rights                in,                literary property may apply. If, pursuant to any such copyright law                or                similar law, the Seller or any successor or any other legally designated                party (all herein referred to as the “**terminating                party**”)                becomes entitled to exercise any right to reversion, recapture or                termination (the “**termination                right**”)                with respect to all or any part of the rights granted or to be granted                under this Agreement, |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 82**

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**Pacific      Gold Entertainment Inc.**

| (b)   | and                if the terminating party exercises said termination right with respect                to                all or part of said rights (the “**recaptured                rights**”),                then from and after the date on which the terminating party has the                right                to transfer to a third party all or part of the recaptured rights,                PGE                will have the first right to purchase and acquire the recaptured                rights                from the terminating party. If the terminating party is prepared                to accept                a bona fide offer from a third party with respect to all or part                of the                recaptured rights, then in each such instance the terminating party                will                notify PGE of such offer which the terminating party is prepared                to accept                and the name of the third party who made the offer to the terminating                party, and the terminating party will offer PGE the right to enter                into an                agreement with the terminating party with respect to the recaptured                rights                on the aforesaid terms and conditions. PGE will have 30 days from                the date                of its receipt of such written offer within which to notify the                terminating party of its acceptance of such offer. If PGE acquires                from                the terminating party all or part of the recaptured rights, then                the                terminating party agrees to enter into appropriate written agreements                with                PGE covering said acquisition. If PGE elects not to purchase the                recaptured rights from the terminating party, then the terminating                party                may dispose of said recaptured rights, but only to the aforesaid                third                party and only upon the terms and conditions specified in the aforesaid                written notice given by the terminating party to PGE, it being understood                and agreed that the terminating party may not dispose of said recaptured                rights either to: (i) any other proposed transferee; or (ii) upon                terms                and conditions which are more favorable to any transferee than the                terms                and conditions previously offered to PGE hereunder, without again                offering                to enter into an agreement with PGE on: (A) the terms offered to                such                other transferee; or (B) such more favorable terms and conditions                offered                to said proposed transferee, whichever of (A) or (B) will apply.                Any such                required offer made to PGE by the terminating party will be governed                by                the procedure set forth in the preceding four sentences of this Paragraph.                The unenforceability of any portion of this paragraph will not invalidate                or affect the remaining portions of this paragraph or this                agreement. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | **CONSIDERATION:**                As                consideration for all rights granted and assigned to PGE and for                the                Seller’s representations and warranties, PGE agrees to pay to the Seller,                and the Seller agrees to accept: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | For                a theatrical or television motion picture $32,000. CDN payment (payable                first day of production, in equal but not preferred order to other                parties                involved in receiving deferred payment), besides any sums paid in                connection with the option periods so payable upon exercise of the                option                to acquire the Literary Property. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6.  ** | **REPRESENTATIONS                AND WARRANTIES:** |
|--------------------|----------------------------------------------------|

| **(a)  ** | **Sole                Proprietor**:                The Seller represents and warrants to PGE that the Seller is the                sole and                exclusive proprietor, throughout the universe, of that certain original                literary material written by the Seller entitled “FEAR                BENEATH”. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(b)  ** | **Facts**:                The Seller represents and warrants to PGE as                follows: |
|---------------------|------------------------------------------------------------------------------------------------|

| (iii)   | None                of the rights herein granted and assigned to PGE have been granted                and/or                assigned to any person, firm or corporation other than                PGE. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 83**

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**Pacific      Gold Entertainment Inc.**

| **(c)  ** | **No                Infringement or Violation of Third-Party Rights**:                The Seller represents and warrants to PGE that the Seller has not                adapted                the Literary Property from any other literary, dramatic or other                material                of any kind, nature or description, nor, except material which is                in the                public domain, has the Seller copied or used in the Literary Property                the                plot, scenes, sequence or story of any other literary, dramatic or                other                material; that the Literary Property does not infringe upon any common                law                or statutory rights in any other literary, dramatic or other material;                that no material contained in the Literary Property is libelous or                violative of the right of privacy of any person; that the full utilization                of any and all rights in and to the Literary Property granted by                the                Seller pursuant to this agreement will not violate the rights of                any                person, firm or corporation; and that the Literary Property is not                in the                public domain in any country in the world where copyright protection                is                available. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | No                Impairment of Rights: The Seller represents and warrants to PGE that                the                Seller is the exclusive proprietor, throughout the universe, of all                rights                in and to the Literary Property granted herein to PGE; that the Seller                has                not assigned, licensed or in any manner encumbered, diminished or                impaired                any such rights; that the Seller has not committed or omitted to                perform                any act by which such rights could or will be encumbered, diminished                or                impaired; and that there is no outstanding claim or litigation pending                against or involving the title, ownership and/or copyright in the                Literary                Property, or in any part thereof, or in any rights granted herein                to PGE.                The Seller further represents and warrants that no attempt will be                made                hereafter to encumber, diminish or impair any of the rights granted                herein                and that all appropriate protection of such rights will continue                to be                maintained by the Seller. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | **INDEMNIFICATION**: |
|----------------|----------------------|

| (a)   | The                Seller agrees to indemnify PGE against all judgments, liability,                damages,                penalties, losses and expense (including reasonable attorneys’ fees) which                may be suffered or assumed by or obtained against PGE by reason of                any                breach or failure of any warranty or agreement made by the Seller                in this                agreement. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | PGE                will not be liable to the Seller for damages of any kind in connection                with any Picture it may produce, distribute or exhibit, or for damages                for                any breach of this agreement (except failure to pay the money                consideration herein specified) occurring or accruing before PGE                has had                reasonable notice and opportunity to adjust or correct such                matters. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | All                rights, licenses and privileges herein granted to PGE are irrevocable                and                not subject to rescission, restraint or injunction under any                circumstances. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | **PROTECTION                OF RIGHTS GRANTED:**                The Seller grants to PGE the free and unrestricted right, but at                PGE’s own                cost and expense, to institute in the name and on behalf of the Seller,                or                the Seller and PGE jointly, any and all suits and proceedings at                law or in                equity, to enjoin and restrain any infringements of the rights herein                granted, and assigns and sets over to PGE any and all causes of action                relative to or based upon any such infringement, as well as any and                all                recoveries obtained thereon. The Seller will not compromise, settle                or in                any manner interfere with such litigation if brought; and PGE agrees                to                indemnify and hold the Seller harmless from any costs, expenses,                or                damages that the Seller may suffer as a result of any such suit or                proceeding. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | **COPYRIGHT:**                Regarding the copyright in and to the Literary Property, the Seller                agrees                that: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | The                Seller will prevent the Literary Property and any arrangements, revisions,                translations, novelizations, dramatizations or new versions thereof,                whether published or unpublished and whether copyrighted or not                copyrighted, from vesting in the public domain, and will take or                cause to                be taken any and all steps and proceedings required for copyright                or                similar protection in any and all countries in which the same may                be                published or offered for sale, insofar as such countries now or hereafter                provide for copyright or similar protection. Any contract or agreement                entered into by the Seller authorizing or permitting the publication                of                the Literary Property or any arrangements, revisions, translations,                novelizations, dramatizations or new versions thereof in any country                will                contain appropriate provisions requiring such publisher to comply                with all                the provisions of this clause. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 84**

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**Pacific      Gold Entertainment Inc.**

| (b)   | Without                limiting the generality of the foregoing, if the Literary Property                or any                arrangement, revision, translation, novelizations, dramatization                or new                version thereof is published in the United States or in any other                country                in which registration is required for copyright or similar protection                in                accordance with the laws and regulations of such country, and the                Seller                further agrees to affix or cause to be affixed to each copy of the                Literary Property or any arrangement, revision, translation,                novelizations, dramatization or new version thereof which is published                or                offered for sale such notice or notices as may be required for copyright                or similar protection in any country in which such publication or                sale                occurs. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | At                least six months prior to the expiration of any copyright required                by this                provision for the protection of the Literary Property, the Seller                will                renew (or cause to be renewed) such copyright, as permitted by applicable                law, and any and all rights granted PGE hereunder will be deemed                granted                to PGE throughout the full period of such renewed copyright, without                the                payment of any additional consideration, it being agreed that the                consideration payable to the Seller under this agreement will be                deemed to                include full consideration for the grant of such rights to PGE throughout                the period of such renewed                copyright. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | If                the Literary Property, or any arrangement, revision, translation,                novelization, dramatization or new version thereof, will ever enter                the                public domain, then nothing contained in this agreement will impair                any                rights or privileges that the PGE might be entitled to as a member                of the                public; thus, the PGE may exercise any and all such rights and privileges                as though this agreement were not in existence. The rights granted                in this                agreement by the Seller to PGE, and the representations, warranties,                undertakings and agreements made under this agreement by the Seller,                will                endure in perpetuity and will be in addition to any rights, licenses,                privileges or property of PGE referred to in this sub clause                (d). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | **CREDIT                OBLIGATIONS:**                PGE will have the right to publish, advertise, announce and use in                any                manner or medium, the name, biography and photographs or likenesses                of the                Seller in connection with any exercise by PGE of its rights hereunder,                provided such use will not constitute an endorsement of any product                or                service. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**WGC      Agreement**

**Page          - 85**

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**Pacific      Gold Entertainment Inc.**

| 11.   | **RIGHT                OF FIRST NEGOTIATION:**                The term “**Right                of First Negotiation**”                means that if, after the expiration of an applicable time limitation,                the                Seller desires to dispose of or exercise a particular right reserved                to                the Seller herein (the “**Reserved                Right**”),                whether directly or indirectly, then the Seller will notify PGE in                writing                and immediately negotiate with PGE regarding such Reserved Right.                If,                after the expiration of 90 days following the receipt of such notice,                no                agreement has been reached, then the Seller may negotiate with third                parties regarding such Reserved Right subject to Clause 12                infra. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.   | **RIGHT                OF LAST REFUSAL:**                The term “**Right                of Last Refusal**”                means that if PGE and the Seller fail to reach an agreement pursuant                to                PGE’s right of first negotiation, and the Seller makes and/or receives                any                bona fide offer to license, lease and/or purchase the particular                Reserved                Right or any interest therein (a “**Third-Party                Offer**”),                and if the proposed purchase price and other material terms of a                Third-Party Offer are no more favorable to the Seller than the terms                which                were acceptable to PGE during the first negotiation period, the Seller                will notify PGE, by registered mail or telegram, if the Seller proposes                to                accept such Third-Party Offer, the name of the offerer, the proposed                purchase price, and other terms of such Third-Party Offer. During                the                period of 30 days after PGE’s receipt of such notice, PGE will have the                exclusive option to license, lease and/or purchase, as the case may                be,                the particular Reserved Right or interest referred to in such Third-Party                Offer, at the same purchase price and upon the same terms and conditions                as set forth in such notice. If PGE elects to exercise thereof by                registered mail or telegram within such thirty (30) day period, failing                which the Seller will be free to accept such Third-Party Offer; provided                that if any such proposed license, lease and/or sale is not consummated                with a third party within 90 days following the expiration of the                aforesaid 30 day period, PGE’s Right of Last Refusal will revive and will                apply to each and every further offer or offers at any time received                by                the Seller relating to the particular Reserved Right or any interest                therein; provided, further, that PGE’s option will continue in full force                and effect, upon all terms and conditions of this paragraph, so long                as                the Seller retains any rights, title or interest in or to the particular                Reserved Right. PGE’s Right of Last Refusal will inure to the benefit of                PGE, its successors and assigns, and will bind the Seller and the                Seller’s                heirs, successors and assigns. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.   | **NO                OBLIGATION TO PRODUCE:**                Nothing herein will be construed to obligate PGE to produce, distribute,                release, perform or exhibit any motion picture, television, theatrical                or                other production based upon, adapted from or suggested by the Literary                Property, in whole or in part, or otherwise to exercise, exploit                or make                any use of any rights, licenses, privileges or property granted herein                to                PGE. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.   | **ASSIGNMENT:**                PGE may assign and transfer this agreement or all or any part of                its                rights hereunder to any person, firm or corporation without limitation,                and this agreement will be binding upon and inure to the benefit                of the                parties hereto and their successors, representatives and assigns                forever. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.   | **NO                PUBLICITY:**                The Seller will not, without PGE’s prior written consent in each instance,                issue or authorize the issuance or publication of any new story or                publicity relating to (i) this agreement, (ii) the subject matter                or terms                hereof, or to any use by PGE, its successors, licensees and assigns,                and                (iii) any of the rights granted PGE                hereunder. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.   | **AGENT                COMMISSIONS:**                PGE will not be liable for any compensation or fee to any agent of                the                Seller in connection with this                Agreement. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.   | **ADDITIONAL                DOCUMENTATION:**                The Seller agrees to execute and procure any other and further instruments                necessary to transfer, convey, assign and copyright all rights in                the                Literary Property granted herein by the Seller to PGE in any country                throughout the world. If it will be necessary under the laws of any                country that copyright registration be acquired in the name of the                Seller,                PGE is authorized by the Seller to apply for said copyright registration                thereof; and, in such event, the Seller will and does assign and                transfer                the same unto PGE, subject to the rights in the Literary Property                reserved                hereunder by the Seller. The Seller further agrees, upon request,                to duly                execute, acknowledge, procure and deliver to PGE such short form                assignments as may be requested by PGE for the purpose of copyright                recordation in any country, or otherwise. If the Seller fails to                so                execute and deliver, or cause to be executed and delivered, the                assignments or other instruments herein referred to, PGE is irrevocably                granted the power coupled with an interest to execute such assignments                and                instruments in the name of the Seller and as the Seller’s                attorney-in-fact. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 86**

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**Pacific      Gold Entertainment Inc.**

| 18.   | **NOTICES:**                All notices to PGE under this agreement will be sent by Canada Post                registered mail, postage prepaid, or by telegram addressed to PGE                at #7 -                534 Cambie Street Vancouver BC V6B- 2N7, and all notices to the Seller                under this agreement will be sent by Canada Post registered mail,                postage                prepaid, or by telegram addressed to the Seller at #7 - 534 Cambie                Street,                Vancouver, British Columbia, V6B 2N7. The date of such deposit will                be                deemed to be the date of service of such                notice. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.   | **ARBITRATION:**                Any controversy or claim arising out of or in relation to this Agreement                or the validity, construction or performance of the Agreement, or                the                breach thereof, will be resolved by arbitration in accordance with                the                rules and procedures of the American Film Marketing Association,                as said                rules may be amended from time to time with rights of discovery if                requested from the arbitrator. Such rules and procedures are incorporated                and made a part of this Agreement by reference. If the American Film                Marketing Association will refuse to accept jurisdiction of such                dispute,                then the parties will arbitrate such matter before and in accordance                with                the rules of the Canadian Arbitration Association under its jurisdiction                in Vancouver, British Columbia before a single arbitrator familiar                with                entertainment law. The parties will have the right to engage in                pre-hearing discovery in connection with such arbitration proceedings                if                approved by the arbitrator. The parties hereto will abide by and                perform                any award rendered in any arbitration conducted pursuant hereto,                that any                court having jurisdiction thereof may issue a judgment based upon                such                award and that the prevailing party in such arbitration and/or                confirmation proceeding will be entitled to recover its reasonable                attorneys fees and expenses. The arbitration award will be final,                binding                and non-appealable. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 87**

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| **20.  ** | **MISCELLANEOUS:** |
|---------------------|--------------------|

| (a)   | Relationship:                This agreement between the parties does not constitute a joint venture                or                partnership of any kind. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Cumulative                Rights and Remedies: All rights, remedies, licenses, undertakings,                obligations, covenants, privileges and other property granted herein                will                be cumulative, and PGE may exercise or use any of them separately                or in                conjunction with any one or more of the                others. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Waiver:                A waiver by either party of any term or condition of this agreement                in any                instance will not be deemed or construed to be a waiver of such term                or                condition for the future, or any subsequent breach                thereof. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Severability:                If any provision of this agreement as applied to either party or                any                circumstances will be adjudged by a court to be void and unenforceable,                such will in no way affect any other provision of this agreement,                the                application of such provision in any other circumstance, or the validity                or enforceability of this                agreement. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Governing                Law: This agreement will be construed in accordance with the laws                of the                Province of British Columbia applicable to agreement which are executed                and fully performed within said                Province. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | Captions:                Captions are inserted for reference and convenience only and in no                way                define, limit or describe the scope of this agreement or intent of                any                provision. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | Entire                Understanding: This agreement contains the entire understanding of                the                parties relating to the subject matter, and this agreement cannot                be                changed except by written agreement executed by the party to be                bound. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Somnambulist      Imagery Inc.**

*/s/      Mark Tuit*

**Pacific      Gold Entertainment Inc.**

*/s/      Ron Loudoun*

**Page            - 88**

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**Pacific      Gold Entertainment Inc.**

**Work**

**Option      Agreement**

*/s/      Mark Tuit*

***/s/      Witness                    ***

**Page          - 89**

----

**Exhibit      4.3**

**Page          - 90**

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**Pacific        Gold Entertainment Inc.**

**OPTION        & LITERARY PURCHASE AGREEMENT**

**PGE**
**        Seller**

**SELLER’S        REPRESENTATIONS AND WARRANTIES:**

| **(a)  ** | **Sole                Proprietor**:                The Seller represents and warrants to PGE that the Seller is the                sole and                exclusive proprietor, throughout the world of that certain original                literary material written by Mark Tuit entitled CRIMSON (the “**Literary                Property**”). |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(b)  ** | **Facts**:                The Seller represents and warrants to PGE that the following statements                are true and correct in all respects with respect to said literary                material: |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (i)   | The                Seller is the sole author of the Literary                Property. |
|-----------------|---------------------------------------------------------------------------------------|
| (ii)   | The                Literary Property was registered for copyright in the name of CRIMSON,                under copyright registration number (Pending), in the Office of the                United                States Register of Copyrights, Washington,                D.C. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(c)  ** | **No                Infringement or Violation of Third Party Rights**:                The Seller represents and warrants to PGE that the Seller has not                adapted                the Literary Property from any other literary, dramatic or other                material                of any kind, nature or description, nor, excepting for material which                is                in the public domain, has the Seller copied or used in the Literary                Property the plot, scenes, sequence or story of any other literary,                dramatic or other material; that the Literary Property does not infringe                upon any common law or statutory rights in any other literary, dramatic,                or other material; that as far as the Seller has knowledge, no material                in                the Literary Property is libelous or vocative of the right of privacy                of                any person and the full use of the rights in the Literary Property                which                are covered by the within option would not violate any rights of                any                person, firm or corporation; and that the Literary Property is not                in the                public domain in any country in the world where copyright protection                is                available. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(d)  ** | **No                Impairment of Rights**:                The Seller represents and warrants to PGE that the Seller is the                exclusive                proprietor, throughout the world, of the rights in the Literary Property,                which are covered by the within option; that the Seller has not assigned,                licensed nor in any manner encumbered, diminished or impaired these                rights; that the Seller has not committed nor omitted to perform                any act                by which these rights could or will be encumbered, diminished or                impaired;                and that there is no outstanding claim or litigation pending against                or                involving the title, ownership and/or copyright in the Literary Property,                or in any part of it, or in the rights which are covered by the within                option. The Seller further represents and warrants that no attempt                hereafter will be made to encumber, diminish or impair any of the                rights                herein granted and that all appropriate protections of such rights                will                continue to be maintained by the Seller. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 91**

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**Pacific        Gold Entertainment Inc.**
| **2.  ** | **CONSIDERATION                FOR OPTION:**                In                consideration of the payment to the Seller of the sum of $1.00, receipt                of                which is acknowledged, the Seller agrees to and does give and grant                to PGE                the exclusive and irrevocable option to purchase from the Seller                the                rights in the Literary Property as described in Exhibit “A” for the total                purchase price specified and payable as provided in Exhibit “A”, provided                that any sums paid under this Clause 2 or any other provision of                this                agreement with respect to the option will be credited against the                first                sums payable on account of such purchase price. If PGE fails to exercise                this option, then the sums paid to the Seller hereunder with respect                to                the option will be and remain the sole property of the                Seller. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **3.  ** | **OPTION                PERIOD:**                The within option will be effective during the period commencing                on July                10, 2006 and ending August 1, 2008 (the “**Initial                Option Period**”). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **4.  ** | **EXERCISE                OF OPTION:** |
|--------------------|----------------------------------------|
| **(a)  ** | **Notice                of Exercise**:                If PGE elects to exercise the within option, PGE (any time during                the                Initial Option Period) will serve upon the Seller notice of the exercise                of it. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | The                purchase price will be paid to the Seller according to Exhibit                “A”. |
|-----------------|-------------------------------------------------------------------------------------------------------------------|
| **5.  ** | **EFFECTIVENESS                OF EXHIBITS “A”****AND****“B”:**                Concurrently with the execution of this agreement, the Seller has                executed                Exhibits “A” (Literary Purchase Agreement) and “B” (Short Form Option                Agreement for Recordation), which are undated, and it is agreed that                if                PGE exercises the option (but not otherwise), then the signature                of the                Seller to Exhibits “A” and “B” will be deemed to be effective, and these                Exhibits will constitute valid and binding agreements and assignment                effective as of the date of exercise of such option, and PGE is authorized                and empowered to date such instruments accordingly. If PGE fails                to                exercise the option, then the signature of the Seller to Exhibits“A” and                “B” will be void and of no further force or effect whatever, and PGE                will                not be deemed to have acquired any rights in or to the Literary Property                other than the option hereinabove provided for. If PGE exercises                the                option, PGE will execute and deliver to the Seller copies of Exhibit“A”,                dated as of the date of the exercise of the option, and the Seller                will,                if so requested by PGE, execute and deliver to PGE additional copies                of                Exhibits “A” and “B”. Notwithstanding the failure or omission of either                party to execute and/or deliver such additional documents, it is                agreed                that upon the exercise of the option by PGE pursuant to the provisions                of                Exhibit “A” will be deemed vested in PGE, effective as of the date of                exercise of the option, which rights will be                irrevocable. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **6.  ** | **RIGHT                TO ENGAGE IN PRE-PRODUCTION:**                The Seller acknowledges that PGE may, at its own expense, during                the                Initial Option Period, undertake pre-production activities in connection                with any of the rights to be acquired hereunder including, without                limitation, the preparation and submission of treatments and/or                screenplays based on the Literary                Property. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **7.  ** | **RESTRICTIONS:**                During the Initial Option Period, the Seller will not exercise or                otherwise use any of the rights herein granted to PGE and as more                particularly described in Exhibit “A” hereof nor the rights reserved to                the Seller pursuant to Clause 2 (Rights Reserved) of Exhibit “A”, nor will                the Seller permit the use of nor will the Seller use any other right                the                Seller has reserved in a way that would in any manner or for any                purpose                unfairly compete with, interfere with or conflict with the full and                unrestricted use of the rights herein granted to PGE and as described                in                Exhibit “A”. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 92**

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**Pacific        Gold Entertainment Inc.**
| **8.  ** | **ASSIGNMENT:**                This agreement and the rights granted hereunder may be assigned by                PGE to                any other person, firm or corporation without the consent of the                Seller,                provided the assignee accepts all the obligations of PGE under this                agreement as a condition of the                assignment. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **9.  ** | **FORCE                MAJEURE:**“Force                Majeure” means any fire, flood, earthquake or public disaster; strike,                labor dispute or unrest; embargo, riot, war, insurrection or civil                unrest;                any act of God, any act of legally constituted authority; or any                other                cause beyond PGE’s control which would excuse PGE’s performance as a                matter of law. If because of Force Majeure, PGE’s performance hereunder is                delayed or prevented, then the Initial Option period will be extended                for                the time of such delay or prevention. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **10.  ** | **SECTION                HEADINGS:**                The headings of paragraphs, sections and other subdivisions of this                agreement are for convenient reference only and they will not be                used in                any way to govern, limit, modify, construe this agreement or any                part or                provision of it. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **11.  ** | **ARBITRATION:**                Any controversy or claim arising out of or in relation to this agreement                or the validity, construction or performance of this agreement, or                the                breach thereof, will be resolved by arbitration in accordance with                the                rules and procedures of the American Film Marketing Association,                as said                rules may be amended from time to time with rights of discovery if                requested from the arbitrator. Such rules and procedures are incorporated                and made a part of this agreement by reference. If the American Film                Marketing Association refuses to accept jurisdiction of such dispute,                then                the parties will arbitrate such matter before and in accordance with                the                rules of the Canadian Arbitration Association under its jurisdiction                in                Vancouver, British Columbia before a single arbitrator familiar with                entertainment law. The parties will have the right to engage in                pre-hearing discovery in connection with such arbitration proceedings                if                approved by the arbitrator. The parties hereto will abide by and                perform                any award rendered in any arbitration conducted pursuant hereto,                that any                court having jurisdiction thereof may issue a judgment based upon                such                award and that the prevailing party in such arbitration and/or                confirmation proceeding will be entitled to recover its reasonable                attorneys fees and expenses. The arbitration award will be final,                binding                and non-appealable. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **12.  ** | **ENTIRE                AGREEMENT:**                This agreement, including the Exhibits attached hereto, contains                the                complete understanding and agreement between the parties with respect                to                the within subject matter, and supersedes all other agreements between                the                parties whether written or oral relating thereto, and may not be                modified                or amended except by written instrument executed by both of the parties                hereto. This agreement will in all respects be subject to the laws                of the                Province of British Columbia applicable to agreements executed and                wholly                performed within such Province. All the rights, licenses, privileges                and                property herein granted to PGE are irrevocable and not subject to                rescission, restraint, or injunction under any or all                circumstances. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Pacific        Gold Entertainment Inc.**

*/s/        Ron Loudoun*

**Somnambulist        Imagery Inc.**

*/s/        Mark Tuit*

**Page            - 93**

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**Pacific        Gold Entertainment Inc.**

**Seller**
**PGE**

**Literary        Property**

| **1.  ** | **RIGHTS                GRANTED:**                The Seller sells, grants, conveys and assigns to PGE, its successors,                licensees and assigns exclusively and forever, all motion picture                rights                (including all silent, sound dialogue and musical motion picture                rights),                all television motion-picture and other television rights, with all                radio                broadcasting rights and all publication rights for advertisement,                publicity and exploitation purposes, and certain incidental and allied                rights, throughout the world, in and to the Literary Property and                in and                to the copyright of it and all renewals and extensions of copyright.                Included among the rights granted to PGE hereunder (without in any                way                limiting the grant of rights hereinabove made) are the following                sole and                exclusive rights throughout the world: |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | To                make, produce, adapt and copyright one or more motion picture adaptations                or versions, whether fixed on film, tape, disc, wire, audio-visual                cartridge, cassette, DVD, or through any other technical process                whether                now known or from now on devised, based in whole or in part on the                Literary Property, of every size, gauge, colour or type, including,                but                not limited to, musical motion pictures and remakes of and sequels                to any                motion picture produced hereunder and motion pictures in series or                serial                form, and for such purposes to record and reproduce and license others                to                record and reproduce, in synchronization with such motion pictures,                spoken                words taken from or based upon the text or theme of the property                and any                kinds of music, musical accompaniments and/or lyrics to be performed                or                sung by the performers in any such motion picture and any other kinds                of                sound and sound effects. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | To                exhibit, perform, rent, lease and generally deal in and with any                motion                picture produced hereunder: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| (i)   | by                all means or technical processes whatsoever, whether now known or                from now                on devised including, by way of example only, film, tape, disc, wire,                audio-visual cartridge, cassette, DVD, or television (including                commercially sponsored, sustaining, and subscription or pay-per-view                television, or any derivative of it); and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ii)   | anywhere                whatsoever, including homes, theatres and elsewhere, and whether                a fee is                charged, directly or indirectly, for viewing any such motion                picture. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | To                broadcast, transmit or reproduce the Literary Property or any adaptation                or version of it (including without limitations to, any motion picture                produced hereunder and/or any script or other material based on or                using                the Literary Property or any of the characters, themes or plots of                it), by                means of television or any process analogous thereto whether now                known or                from now on devised (including commercially sponsored, sustaining                and                subscription or pay-per-view television, Internet and Video on Demand),                by                motion pictures produced on films or by means of magnetic tape, wire,                disc, audio-visual cartridge, DVD, or any other device now known                or from                now on devised and including such television productions presented                in                series or serial form, and the exclusive right generally to exercise                for                television purposes all the rights granted to PGE hereunder for motion                picture purposes. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 94**

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**Pacific        Gold Entertainment Inc.**
| (d)   | Without                limiting any other rights granted PGE, to broadcast and/or transmit                by                television or radio or any process analogous thereto whether now                known or                from now on devised, all or any part of the Literary Property or                any                adaptation or version of it, including any motion picture or any                other                version or versions of it, and announcements about said motion picture                or                other version or versions, for advertising, publicizing or exploiting                such                motion picture or other version or versions, which broadcasts or                transmissions may be accomplished with living actors performing                simultaneously with such broadcast or transmission or by any other                method                or means including the use of motion pictures (including trailers)                reproduced on film or by means of magnetic tape or wire or through                other                recordings or transcriptions. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (e)   | To                publish and copyright or cause to be published and copyrighted in                the name                of the PGE or its nominee in any languages throughout the world,                in any                form or media, synopses, novelizations, serializations, dramatizations,                abridged and/or revised versions of the Literary Property, adapted                from                the Literary Property or from any motion picture and/or other version                of                the Literary Property for advertising, publicizing and/or exploiting                any                such motion picture and/or other version. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (f)   | For                the foregoing purposes to use all or any part of the Literary Property                and                any of the characters, plots, themes and/or ideas contained therein,                and                the title of the Literary Property and any title or subtitle of any                component of the Literary Property, and to use said titles or subtitles                for any motion picture or other version or adaptation whether the                same is                based on or adapted from the Literary Property and/or as the title                of any                musical composition contained in any such motion picture or other                version                or adaptation. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (g)   | To                use and exploit commercial or merchandise tie-ups and recordings                of any                sort and nature arising out of or connected with the Literary Property                and/or its motion picture or other versions and/or the title or titles                of                it and/or the characters of it and/or their names or                characteristics. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Picture**
**Pictures**

| **2.  ** | **RIGHTS                RESERVED:**                The following rights are reserved to the Seller for the Seller’s use and                disposition, subject, however, to the provisions of this                agreement: |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(a)  ** | **Stage                Rights**:                The right to perform the Literary Property or adaptations of it on                the                spoken stage with actors appearing in person in the immediate presence                of                the audience, provided no broadcast, telecast, recording, photography                or                other reproduction of such performance is made. The Seller agrees                not to                exercise, or permit any other person to exercise, said stage rights                earlier than three (3) years after the first general release or telecast,                if earlier, of the first Picture produced hereunder, or five (5)                years                after the date of exercise of PGE’s option to acquire the Literary                Property, whichever is earlier. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(b)  ** | **Author-Written                Sequel**:                A                literary property (story, novel, drama or otherwise), whether written                before or after the Literary Property and whether written by the                Seller or                by a successor in interest of the Seller, using one or more of the                characters appearing in the Literary Property, participating in different                events from those found in the Literary Property, and whose plot                is                substantially different from that of the Literary Property. The Seller                will have the right to exercise publication rights (i.e., in book                or                magazine form) any time. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 95**

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**Pacific        Gold Entertainment Inc.**
| (c)   | The                Seller agrees not to exercise, or permit any other person to exercise,                any                other rights (including but not limited to motion picture or allied                rights) of any kind in or to any author-written sequel earlier than                one                year after the first general release of the first Picture produced                hereunder, or two years after the date of exercise of PGE’s option to                acquire the Literary Property, whichever is earlier, provided such                restriction on the Seller’s exercise of said author-written sequel rights                will be extended to any period during which there is in effect, in                any                particular country or territory, a network television broadcasting                agreement for a television motion picture, (i) based upon the Literary                Property, or (ii) based upon any Picture produced in the exercise                of                rights assigned herein, or (iii) using a character or characters                of the                Literary Property, plus one year, which will also be a restricted                period                in such country or territory, whether such period occurs wholly or                partly                during or entirely after the one (1) year period first referred to                in this                clause. Any disposition of motion picture or allied rights in an                author-written sequel made to any person or company other than PGE                will be                made subject to the following limitations and                restrictions: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | Since                the characters of the Literary Property are included in the exclusive                grant of motion picture rights to PGE, no sequel rights or television                series rights to the Literary Property may be granted, but such characters                from the Literary Property which are contained in the author-written                sequel may be used in a motion picture and remakes of it whose plot                is                based substantially on the plot of the respective author-written                sequel. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **3.  ** | **RIGHT                TO MAKE CHANGES:**                The Seller agrees that PGE will have the unlimited right to vary,                change,                alter, modify, add to and/or delete from the Literary Property, and                to                rearrange and/or transpose the Literary Property and change the sequence                of it and the characters and descriptions of the characters contained                in                the Literary Property, and to use a portion or portions of the Literary                Property or the characters, plots, or theme of it with any other                literary,                dramatic or other material of any kind. The Seller waives the benefits                of                any provisions of law known as the “droit moral” or any similar law in any                country of the world and agrees not to permit or prosecute any action                or                lawsuit on the ground that any Picture or other version of the Literary                Property produced or exhibited by PGE, its assignees or licensees,                in any                way constitutes an infringement of any of the Seller’s droit moral or is                in any way a defamation or mutilation of the Literary Property or                any part                of it or contains unauthorized variations, alterations, modifications,                changes or translations. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **4.  ** | **DURATION                AND EXTENT OF RIGHTS GRANTED:**                PGE will enjoy, solely and exclusively, all the rights, licenses,                privileges and property granted hereunder throughout the world, in                perpetuity, as long as any rights in the Literary Property are recognized                in law or equity, except as far as such period of perpetuity may                be                shortened due to any now existing or future copyright by the Seller                of the                Literary Property and/or any adaptations of it, in which case PGE                will                enjoy its sole and exclusive rights, licenses, privileges and property                hereunder to the fullest extent permissible under and for the full                duration of such copyright or copyrights, whether common law or statutory,                and any renewals and/or extensions of it, and will after that enjoy                all                such rights, licenses, privileges and property non-exclusively in                perpetuity throughout the world. The rights granted herein are in                addition                to and will not be construed in derogation of any rights which PGE                may                have as a member of the public or pursuant to any other agreement.                All                rights, licenses, privileges and property granted herein to PGE are                irrevocable and not subject to rescission, restraint or injunction                under                any circumstances. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | All                rights granted or agreed to be granted to PGE under this agreement                will be                irrevocably vested in PGE and will not be subject to rescission by                the                Seller or any other party for any cause, nor will said rights be                subject                to termination or reversion by operation of law or otherwise, except                to                the extent, if any, that the provisions of any copyright law or similar                law relating to the right to terminate grants of, or recapture rights                in,                literary property may apply. If, pursuant to any such copyright law                or                similar law, the Seller or any successor or any other legally designated                party (all herein referred to as the “**terminating                party**”)                becomes entitled to exercise any right to reversion, recapture or                termination (the “**termination                right**”)                with respect to all or any part of the rights granted or to be granted                under this Agreement, |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 96**

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**Pacific        Gold Entertainment Inc.**
| (b)   | and                if the terminating party exercises said termination right with respect                to                all or part of said rights (the “**recaptured                rights**”),                then from and after the date on which the terminating party has the                right                to transfer to a third party all or part of the recaptured rights,                PGE                will have the first right to purchase and acquire the recaptured                rights                from the terminating party. If the terminating party is prepared                to accept                a bona fide offer from a third party with respect to all or part                of the                recaptured rights, then in each such instance the terminating party                will                notify PGE of such offer which the terminating party is prepared                to accept                and the name of the third party who made the offer to the terminating                party, and the terminating party will offer PGE the right to enter                into an                agreement with the terminating party with respect to the recaptured                rights                on the aforesaid terms and conditions. PGE will have 30 days from                the date                of its receipt of such written offer within which to notify the                terminating party of its acceptance of such offer. If PGE acquires                from                the terminating party all or part of the recaptured rights, then                the                terminating party agrees to enter into appropriate written agreements                with                PGE covering said acquisition. If PGE elects not to purchase the                recaptured rights from the terminating party, then the terminating                party                may dispose of said recaptured rights, but only to the aforesaid                third                party and only upon the terms and conditions specified in the aforesaid                written notice given by the terminating party to PGE, it being understood                and agreed that the terminating party may not dispose of said recaptured                rights either to: (i) any other proposed transferee; or (ii) upon                terms                and conditions which are more favorable to any transferee than the                terms                and conditions previously offered to PGE hereunder, without again                offering                to enter into an agreement with PGE on: (A) the terms offered to                such                other transferee; or (B) such more favorable terms and conditions                offered                to said proposed transferee, whichever of (A) or (B) will apply.                Any such                required offer made to PGE by the terminating party will be governed                by                the procedure set forth in the preceding four sentences of this Paragraph.                The unenforceability of any portion of this paragraph will not invalidate                or affect the remaining portions of this paragraph or this                agreement. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **5.  ** | **CONSIDERATION:**                As                consideration for all rights granted and assigned to PGE and for                the                Seller’s representations and warranties, PGE agrees to pay to the Seller,                and the Seller agrees to accept: |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | For                a theatrical or television motion picture $32,000. CDN payment (payable                first day of production, in equal but not preferred order to other                parties                involved in receiving deferred payment), besides any sums paid in                connection with the option periods so payable upon exercise of the                option                to acquire the Literary Property. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **6.  ** | **REPRESENTATIONS                AND WARRANTIES:** |
|--------------------|----------------------------------------------------|
| **(a)  ** | **Sole                Proprietor**:                The Seller represents and warrants to PGE that the Seller is the                sole and                exclusive proprietor, throughout the universe, of that certain original                literary material written by the Seller entitled                “CRIMSON”. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(b)  ** | **Facts**:                The Seller represents and warrants to PGE as                follows: |
|---------------------|------------------------------------------------------------------------------------------------|
| (iii)   | None                of the rights herein granted and assigned to PGE have been granted                and/or                assigned to any person, firm or corporation other than                PGE. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 97**

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**Pacific        Gold Entertainment Inc.**
| **(c)  ** | **No                Infringement or Violation of Third-Party Rights**:                The Seller represents and warrants to PGE that the Seller has not                adapted                the Literary Property from any other literary, dramatic or other                material                of any kind, nature or description, nor, except material which is                in the                public domain, has the Seller copied or used in the Literary Property                the                plot, scenes, sequence or story of any other literary, dramatic or                other                material; that the Literary Property does not infringe upon any common                law                or statutory rights in any other literary, dramatic or other material;                that no material contained in the Literary Property is libelous or                violative of the right of privacy of any person; that the full utilization                of any and all rights in and to the Literary Property granted by                the                Seller pursuant to this agreement will not violate the rights of                any                person, firm or corporation; and that the Literary Property is not                in the                public domain in any country in the world where copyright protection                is                available. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | No                Impairment of Rights: The Seller represents and warrants to PGE that                the                Seller is the exclusive proprietor, throughout the universe, of all                rights                in and to the Literary Property granted herein to PGE; that the Seller                has                not assigned, licensed or in any manner encumbered, diminished or                impaired                any such rights; that the Seller has not committed or omitted to                perform                any act by which such rights could or will be encumbered, diminished                or                impaired; and that there is no outstanding claim or litigation pending                against or involving the title, ownership and/or copyright in the                Literary                Property, or in any part thereof, or in any rights granted herein                to PGE.                The Seller further represents and warrants that no attempt will be                made                hereafter to encumber, diminish or impair any of the rights granted                herein                and that all appropriate protection of such rights will continue                to be                maintained by the Seller. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **7.  ** | **INDEMNIFICATION:** |
|--------------------|----------------------|
| (a)   | The                Seller agrees to indemnify PGE against all judgments, liability,                damages,                penalties, losses and expense (including reasonable attorneys’ fees) which                may be suffered or assumed by or obtained against PGE by reason of                any                breach or failure of any warranty or agreement made by the Seller                in this                agreement. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | PGE                will not be liable to the Seller for damages of any kind in connection                with any Picture it may produce, distribute or exhibit, or for damages                for                any breach of this agreement (except failure to pay the money                consideration herein specified) occurring or accruing before PGE                has had                reasonable notice and opportunity to adjust or correct such                matters. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | All                rights, licenses and privileges herein granted to PGE are irrevocable                and                not subject to rescission, restraint or injunction under any                circumstances. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **8.  ** | **PROTECTION                OF RIGHTS GRANTED:**                The Seller grants to PGE the free and unrestricted right, but at                PGE’s own                cost and expense, to institute in the name and on behalf of the Seller,                or                the Seller and PGE jointly, any and all suits and proceedings at                law or in                equity, to enjoin and restrain any infringements of the rights herein                granted, and assigns and sets over to PGE any and all causes of action                relative to or based upon any such infringement, as well as any and                all                recoveries obtained thereon. The Seller will not compromise, settle                or in                any manner interfere with such litigation if brought; and PGE agrees                to                indemnify and hold the Seller harmless from any costs, expenses,                or                damages that the Seller may suffer as a result of any such suit or                proceeding. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **9.  ** | **COPYRIGHT:**                Regarding the copyright in and to the Literary Property, the Seller                agrees                that: |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | The                Seller will prevent the Literary Property and any arrangements, revisions,                translations, novelizations, dramatizations or new versions thereof,                whether published or unpublished and whether copyrighted or not                copyrighted, from vesting in the public domain, and will take or                cause to                be taken any and all steps and proceedings required for copyright                or                similar protection in any and all countries in which the same may                be                published or offered for sale, insofar as such countries now or hereafter                provide for copyright or similar protection. Any contract or agreement                entered into by the Seller authorizing or permitting the publication                of                the Literary Property or any arrangements, revisions, translations,                novelizations, dramatizations or new versions thereof in any country                will                contain appropriate provisions requiring such publisher to comply                with all                the provisions of this clause. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 98**

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**Pacific        Gold Entertainment Inc.**
| (b)   | Without                limiting the generality of the foregoing, if the Literary Property                or any                arrangement, revision, translation, novelizations, dramatization                or new                version thereof is published in the United States or in any other                country                in which registration is required for copyright or similar protection                in                accordance with the laws and regulations of such country, and the                Seller                further agrees to affix or cause to be affixed to each copy of the                Literary Property or any arrangement, revision, translation,                novelizations, dramatization or new version thereof which is published                or                offered for sale such notice or notices as may be required for copyright                or similar protection in any country in which such publication or                sale                occurs. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | At                least six months prior to the expiration of any copyright required                by this                provision for the protection of the Literary Property, the Seller                will                renew (or cause to be renewed) such copyright, as permitted by applicable                law, and any and all rights granted PGE hereunder will be deemed                granted                to PGE throughout the full period of such renewed copyright, without                the                payment of any additional consideration, it being agreed that the                consideration payable to the Seller under this agreement will be                deemed to                include full consideration for the grant of such rights to PGE throughout                the period of such renewed copyright. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | If                the Literary Property, or any arrangement, revision, translation,                novelization, dramatization or new version thereof, will ever enter                the                public domain, then nothing contained in this agreement will impair                any                rights or privileges that the PGE might be entitled to as a member                of the                public; thus, the PGE may exercise any and all such rights and privileges                as though this agreement were not in existence. The rights granted                in this                agreement by the Seller to PGE, and the representations, warranties,                undertakings and agreements made under this agreement by the Seller,                will                endure in perpetuity and will be in addition to any rights, licenses,                privileges or property of PGE referred to in this sub clause                (d). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **10.  ** | **CREDIT                OBLIGATIONS:**                PGE will have the right to publish, advertise, announce and use in                any                manner or medium, the name, biography and photographs or likenesses                of the                Seller in connection with any exercise by PGE of its rights hereunder,                provided such use will not constitute an endorsement of any product                or                service. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**WGC        Agreement**

**Page            - 99**

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**Pacific        Gold Entertainment Inc.**
| **11.  ** | **RIGHT                OF FIRST NEGOTIATION:**                The term “**Right                of First Negotiation**”                means that if, after the expiration of an applicable time limitation,                the                Seller desires to dispose of or exercise a particular right reserved                to                the Seller herein (the “**Reserved                Right**”),                whether directly or indirectly, then the Seller will notify PGE in                writing                and immediately negotiate with PGE regarding such Reserved Right.                If,                after the expiration of 90 days following the receipt of such notice,                no                agreement has been reached, then the Seller may negotiate with third                parties regarding such Reserved Right subject to Clause 12                infra. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **12.  ** | **RIGHT                OF LAST REFUSAL:**                The term “**Right                of Last Refusal**”                means that if PGE and the Seller fail to reach an agreement pursuant                to                PGE’s right of first negotiation, and the Seller makes and/or receives                any                bona fide offer to license, lease and/or purchase the particular                Reserved                Right or any interest therein (a “**Third-Party                Offer**”),                and if the proposed purchase price and other material terms of a                Third-Party Offer are no more favorable to the Seller than the terms                which                were acceptable to PGE during the first negotiation period, the Seller                will notify PGE, by registered mail or telegram, if the Seller proposes                to                accept such Third-Party Offer, the name of the offerer, the proposed                purchase price, and other terms of such Third-Party Offer. During                the                period of 30 days after PGE’s receipt of such notice, PGE will have the                exclusive option to license, lease and/or purchase, as the case may                be,                the particular Reserved Right or interest referred to in such Third-Party                Offer, at the same purchase price and upon the same terms and conditions                as set forth in such notice. If PGE elects to exercise thereof by                registered mail or telegram within such thirty (30) day period, failing                which the Seller will be free to accept such Third-Party Offer; provided                that if any such proposed license, lease and/or sale is not consummated                with a third party within 90 days following the expiration of the                aforesaid 30 day period, PGE’s Right of Last Refusal will revive and will                apply to each and every further offer or offers at any time received                by                the Seller relating to the particular Reserved Right or any interest                therein; provided, further, that PGE’s option will continue in full force                and effect, upon all terms and conditions of this paragraph, so long                as                the Seller retains any rights, title or interest in or to the particular                Reserved Right. PGE’s Right of Last Refusal will inure to the benefit of                PGE, its successors and assigns, and will bind the Seller and the                Seller’s                heirs, successors and assigns. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **13.  ** | **NO                OBLIGATION TO PRODUCE:**                Nothing herein will be construed to obligate PGE to produce, distribute,                release, perform or exhibit any motion picture, television, theatrical                or                other production based upon, adapted from or suggested by the Literary                Property, in whole or in part, or otherwise to exercise, exploit                or make                any use of any rights, licenses, privileges or property granted herein                to                PGE. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **14.  ** | **ASSIGNMENT:**                PGE may assign and transfer this agreement or all or any part of                its                rights hereunder to any person, firm or corporation without limitation,                and this agreement will be binding upon and inure to the benefit                of the                parties hereto and their successors, representatives and assigns                forever. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **15.  ** | **NO                PUBLICITY:**                The Seller will not, without PGE’s prior written consent in each instance,                issue or authorize the issuance or publication of any new story or                publicity relating to (i) this agreement, (ii) the subject matter                or terms                hereof, or to any use by PGE, its successors, licensees and assigns,                and                (iii) any of the rights granted PGE                hereunder. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **16.  ** | **AGENT                COMMISSIONS:**                PGE will not be liable for any compensation or fee to any agent of                the                Seller in connection with this Agreement. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **17.  ** | **ADDITIONAL                DOCUMENTATION:**                The Seller agrees to execute and procure any other and further instruments                necessary to transfer, convey, assign and copyright all rights in                the                Literary Property granted herein by the Seller to PGE in any country                throughout the world. If it will be necessary under the laws of any                country that copyright registration be acquired in the name of the                Seller,                PGE is authorized by the Seller to apply for said copyright registration                thereof; and, in such event, the Seller will and does assign and                transfer                the same unto PGE, subject to the rights in the Literary Property                reserved                hereunder by the Seller. The Seller further agrees, upon request,                to duly                execute, acknowledge, procure and deliver to PGE such short form                assignments as may be requested by PGE for the purpose of copyright                recordation in any country, or otherwise. If the Seller fails to                so                execute and deliver, or cause to be executed and delivered, the                assignments or other instruments herein referred to, PGE is irrevocably                granted the power coupled with an interest to execute such assignments                and                instruments in the name of the Seller and as the Seller’s                attorney-in-fact. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 100**

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**Pacific        Gold Entertainment Inc.**
| **18.  ** | **NOTICES:**                All notices to PGE under this agreement will be sent by Canada Post                registered mail, postage prepaid, or by telegram addressed to PGE                at #7 -                534 Cambie Street Vancouver BC V6B- 2N7, and all notices to the Seller                under this agreement will be sent by Canada Post registered mail,                postage                prepaid, or by telegram addressed to the Seller at #7 - 534 Cambie                Street,                Vancouver, British Columbia, V6B 2N7. The date of such deposit will                be                deemed to be the date of service of such                notice. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **19.  ** | **ARBITRATION:**                Any controversy or claim arising out of or in relation to this Agreement                or the validity, construction or performance of the Agreement, or                the                breach thereof, will be resolved by arbitration in accordance with                the                rules and procedures of the American Film Marketing Association,                as said                rules may be amended from time to time with rights of discovery if                requested from the arbitrator. Such rules and procedures are incorporated                and made a part of this Agreement by reference. If the American Film                Marketing Association will refuse to accept jurisdiction of such                dispute,                then the parties will arbitrate such matter before and in accordance                with                the rules of the Canadian Arbitration Association under its jurisdiction                in Vancouver, British Columbia before a single arbitrator familiar                with                entertainment law. The parties will have the right to engage in                pre-hearing discovery in connection with such arbitration proceedings                if                approved by the arbitrator. The parties hereto will abide by and                perform                any award rendered in any arbitration conducted pursuant hereto,                that any                court having jurisdiction thereof may issue a judgment based upon                such                award and that the prevailing party in such arbitration and/or                confirmation proceeding will be entitled to recover its reasonable                attorneys fees and expenses. The arbitration award will be final,                binding                and non-appealable. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 101**

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**Pacific        Gold Entertainment Inc.**
| **20.  ** | **MISCELLANEOUS:** |
|---------------------|--------------------|
| (a)   | Relationship:                This agreement between the parties does not constitute a joint venture                or                partnership of any kind. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | Cumulative                Rights and Remedies: All rights, remedies, licenses, undertakings,                obligations, covenants, privileges and other property granted herein                will                be cumulative, and PGE may exercise or use any of them separately                or in                conjunction with any one or more of the                others. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | Waiver:                A waiver by either party of any term or condition of this agreement                in any                instance will not be deemed or construed to be a waiver of such term                or                condition for the future, or any subsequent breach                thereof. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | Severability:                If any provision of this agreement as applied to either party or                any                circumstances will be adjudged by a court to be void and unenforceable,                such will in no way affect any other provision of this agreement,                the                application of such provision in any other circumstance, or the validity                or enforceability of this agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (e)   | Governing                Law: This agreement will be construed in accordance with the laws                of the                Province of British Columbia applicable to agreement which are executed                and fully performed within said Province. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (f)   | Captions:                Captions are inserted for reference and convenience only and in no                way                define, limit or describe the scope of this agreement or intent of                any                provision. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (g)   | Entire                Understanding: This agreement contains the entire understanding of                the                parties relating to the subject matter, and this agreement cannot                be                changed except by written agreement executed by the party to be                bound. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Somnambulist        Imagery Inc.**

*/s/        Mark Tuit*

**Pacific        Gold Entertainment Inc.**

*/s/        Ron Loudoun*

**Page            - 102**

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**Pacific        Gold Entertainment Inc.**

**Work**

**Option        Agreement**

*/s/          Mark Tuit*

***/s/        Witness                    ***

**Page            - 103**

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**Exhibit      4.4**

**Page          - 104**

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**Pacific        Gold Entertainment Inc.**

**OPTION        & LITERARY PURCHASE AGREEMENT**

**PGE**
**        Seller**

**SELLER’S        REPRESENTATIONS AND WARRANTIES:**

| **(a)  ** | **Sole                Proprietor**:                The Seller represents and warrants to PGE that the Seller is the                sole and                exclusive proprietor, throughout the world of that certain original                literary material written by Mark Tuit entitled BLOOD (the “**Literary                Property**”). |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(b)  ** | **Facts**:                The Seller represents and warrants to PGE that the following statements                are true and correct in all respects with respect to said literary                material: |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (i)   | The                Seller is the sole author of the Literary                Property. |
|-----------------|---------------------------------------------------------------------------------------|
| (ii)   | The                Literary Property was registered for copyright in the name of BLOOD,                under                copyright registration number (Pending), in the Office of the United                States Register of Copyrights, Washington,                D.C. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(c)  ** | **No                Infringement or Violation of Third Party Rights**:                The Seller represents and warrants to PGE that the Seller has not                adapted                the Literary Property from any other literary, dramatic or other                material                of any kind, nature or description, nor, excepting for material which                is                in the public domain, has the Seller copied or used in the Literary                Property the plot, scenes, sequence or story of any other literary,                dramatic or other material; that the Literary Property does not infringe                upon any common law or statutory rights in any other literary, dramatic,                or other material; that as far as the Seller has knowledge, no material                in                the Literary Property is libelous or vocative of the right of privacy                of                any person and the full use of the rights in the Literary Property                which                are covered by the within option would not violate any rights of                any                person, firm or corporation; and that the Literary Property is not                in the                public domain in any country in the world where copyright protection                is                available. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(d)  ** | **No                Impairment of Rights**:                The Seller represents and warrants to PGE that the Seller is the                exclusive                proprietor, throughout the world, of the rights in the Literary Property,                which are covered by the within option; that the Seller has not assigned,                licensed nor in any manner encumbered, diminished or impaired these                rights; that the Seller has not committed nor omitted to perform                any act                by which these rights could or will be encumbered, diminished or                impaired;                and that there is no outstanding claim or litigation pending against                or                involving the title, ownership and/or copyright in the Literary Property,                or in any part of it, or in the rights which are covered by the within                option. The Seller further represents and warrants that no attempt                hereafter will be made to encumber, diminish or impair any of the                rights                herein granted and that all appropriate protections of such rights                will                continue to be maintained by the Seller. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 105**

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**Pacific        Gold Entertainment Inc.**
| **2.  ** | **CONSIDERATION                FOR OPTION:**                In                consideration of the payment to the Seller of the sum of $1.00, receipt                of                which is acknowledged, the Seller agrees to and does give and grant                to PGE                the exclusive and irrevocable option to purchase from the Seller                the                rights in the Literary Property as described in Exhibit “A” for the total                purchase price specified and payable as provided in Exhibit “A”, provided                that any sums paid under this Clause 2 or any other provision of                this                agreement with respect to the option will be credited against the                first                sums payable on account of such purchase price. If PGE fails to exercise                this option, then the sums paid to the Seller hereunder with respect                to                the option will be and remain the sole property of the                Seller. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **3.  ** | **OPTION                PERIOD:**                The within option will be effective during the period commencing                on July                10, 2006 and ending August 1, 2008 (the “**Initial                Option Period**”). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **4.  ** | **EXERCISE                OF OPTION:** |
|--------------------|----------------------------------------|
| **(a)  ** | **Notice                of Exercise**:                If PGE elects to exercise the within option, PGE (any time during                the                Initial Option Period) will serve upon the Seller notice of the exercise                of it. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | The                purchase price will be paid to the Seller according to Exhibit                “A”. |
|-----------------|-------------------------------------------------------------------------------------------------------------------|
| **5.  ** | **EFFECTIVENESS                OF EXHIBITS “A”****AND****“B”:**                Concurrently with the execution of this agreement, the Seller has                executed                Exhibits “A” (Literary Purchase Agreement) and “B” (Short Form Option                Agreement for Recordation), which are undated, and it is agreed that                if                PGE exercises the option (but not otherwise), then the signature                of the                Seller to Exhibits “A” and “B” will be deemed to be effective, and these                Exhibits will constitute valid and binding agreements and assignment                effective as of the date of exercise of such option, and PGE is authorized                and empowered to date such instruments accordingly. If PGE fails                to                exercise the option, then the signature of the Seller to Exhibits“A” and                “B” will be void and of no further force or effect whatever, and PGE                will                not be deemed to have acquired any rights in or to the Literary Property                other than the option hereinabove provided for. If PGE exercises                the                option, PGE will execute and deliver to the Seller copies of Exhibit“A”,                dated as of the date of the exercise of the option, and the Seller                will,                if so requested by PGE, execute and deliver to PGE additional copies                of                Exhibits “A” and “B”. Notwithstanding the failure or omission of either                party to execute and/or deliver such additional documents, it is                agreed                that upon the exercise of the option by PGE pursuant to the provisions                of                Exhibit “A” will be deemed vested in PGE, effective as of the date of                exercise of the option, which rights will be                irrevocable. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **6.  ** | **RIGHT                TO ENGAGE IN PRE-PRODUCTION:**                The Seller acknowledges that PGE may, at its own expense, during                the                Initial Option Period, undertake pre-production activities in connection                with any of the rights to be acquired hereunder including, without                limitation, the preparation and submission of treatments and/or                screenplays based on the Literary                Property. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **7.  ** | **RESTRICTIONS:**                During the Initial Option Period, the Seller will not exercise or                otherwise use any of the rights herein granted to PGE and as more                particularly described in Exhibit “A” hereof nor the rights reserved to                the Seller pursuant to Clause 2 (Rights Reserved) of Exhibit “A”, nor will                the Seller permit the use of nor will the Seller use any other right                the                Seller has reserved in a way that would in any manner or for any                purpose                unfairly compete with, interfere with or conflict with the full and                unrestricted use of the rights herein granted to PGE and as described                in                Exhibit “A”. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Pacific        Gold Entertainment Inc.**
| **8.  ** | **ASSIGNMENT:**                This agreement and the rights granted hereunder may be assigned by                PGE to                any other person, firm or corporation without the consent of the                Seller,                provided the assignee accepts all the obligations of PGE under this                agreement as a condition of the                assignment. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **9.  ** | **FORCE                MAJEURE:**“Force                Majeure” means any fire, flood, earthquake or public disaster; strike,                labor dispute or unrest; embargo, riot, war, insurrection or civil                unrest;                any act of God, any act of legally constituted authority; or any                other                cause beyond PGE’s control which would excuse PGE’s performance as a                matter of law. If because of Force Majeure, PGE’s performance hereunder is                delayed or prevented, then the Initial Option period will be extended                for                the time of such delay or prevention. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **10.  ** | **SECTION                HEADINGS:**                The headings of paragraphs, sections and other subdivisions of this                agreement are for convenient reference only and they will not be                used in                any way to govern, limit, modify, construe this agreement or any                part or                provision of it. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **11.  ** | **ARBITRATION:**                Any controversy or claim arising out of or in relation to this agreement                or the validity, construction or performance of this agreement, or                the                breach thereof, will be resolved by arbitration in accordance with                the                rules and procedures of the American Film Marketing Association,                as said                rules may be amended from time to time with rights of discovery if                requested from the arbitrator. Such rules and procedures are incorporated                and made a part of this agreement by reference. If the American Film                Marketing Association refuses to accept jurisdiction of such dispute,                then                the parties will arbitrate such matter before and in accordance with                the                rules of the Canadian Arbitration Association under its jurisdiction                in                Vancouver, British Columbia before a single arbitrator familiar with                entertainment law. The parties will have the right to engage in                pre-hearing discovery in connection with such arbitration proceedings                if                approved by the arbitrator. The parties hereto will abide by and                perform                any award rendered in any arbitration conducted pursuant hereto,                that any                court having jurisdiction thereof may issue a judgment based upon                such                award and that the prevailing party in such arbitration and/or                confirmation proceeding will be entitled to recover its reasonable                attorneys fees and expenses. The arbitration award will be final,                binding                and non-appealable. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **12.  ** | **ENTIRE                AGREEMENT:**                This agreement, including the Exhibits attached hereto, contains                the                complete understanding and agreement between the parties with respect                to                the within subject matter, and supersedes all other agreements between                the                parties whether written or oral relating thereto, and may not be                modified                or amended except by written instrument executed by both of the parties                hereto. This agreement will in all respects be subject to the laws                of the                Province of British Columbia applicable to agreements executed and                wholly                performed within such Province. All the rights, licenses, privileges                and                property herein granted to PGE are irrevocable and not subject to                rescission, restraint, or injunction under any or all                circumstances. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Pacific        Gold Entertainment Inc.**

*/s/        Ron Loudoun*

**Somnambulist        Imagery Inc.**

*/s/        Mark Tuit*

**Page            - 107**

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**Pacific        Gold Entertainment Inc.**

**Seller**
**PGE**

**Literary        Property**

| **1.  ** | **RIGHTS                GRANTED:**                The Seller sells, grants, conveys and assigns to PGE, its successors,                licensees and assigns exclusively and forever, all motion picture                rights                (including all silent, sound dialogue and musical motion picture                rights),                all television motion-picture and other television rights, with all                radio                broadcasting rights and all publication rights for advertisement,                publicity and exploitation purposes, and certain incidental and allied                rights, throughout the world, in and to the Literary Property and                in and                to the copyright of it and all renewals and extensions of copyright.                Included among the rights granted to PGE hereunder (without in any                way                limiting the grant of rights hereinabove made) are the following                sole and                exclusive rights throughout the world: |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | To                make, produce, adapt and copyright one or more motion picture adaptations                or versions, whether fixed on film, tape, disc, wire, audio-visual                cartridge, cassette, DVD, or through any other technical process                whether                now known or from now on devised, based in whole or in part on the                Literary Property, of every size, gauge, colour or type, including,                but                not limited to, musical motion pictures and remakes of and sequels                to any                motion picture produced hereunder and motion pictures in series or                serial                form, and for such purposes to record and reproduce and license others                to                record and reproduce, in synchronization with such motion pictures,                spoken                words taken from or based upon the text or theme of the property                and any                kinds of music, musical accompaniments and/or lyrics to be performed                or                sung by the performers in any such motion picture and any other kinds                of                sound and sound effects. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | To                exhibit, perform, rent, lease and generally deal in and with any                motion                picture produced hereunder: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| (i)   | by                all means or technical processes whatsoever, whether now known or                from now                on devised including, by way of example only, film, tape, disc, wire,                audio-visual cartridge, cassette, DVD, or television (including                commercially sponsored, sustaining, and subscription or pay-per-view                television, or any derivative of it); and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ii)   | anywhere                whatsoever, including homes, theatres and elsewhere, and whether                a fee is                charged, directly or indirectly, for viewing any such motion                picture. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | To                broadcast, transmit or reproduce the Literary Property or any adaptation                or version of it (including without limitations to, any motion picture                produced hereunder and/or any script or other material based on or                using                the Literary Property or any of the characters, themes or plots of                it), by                means of television or any process analogous thereto whether now                known or                from now on devised (including commercially sponsored, sustaining                and                subscription or pay-per-view television, Internet and Video on Demand),                by                motion pictures produced on films or by means of magnetic tape, wire,                disc, audio-visual cartridge, DVD, or any other device now known                or from                now on devised and including such television productions presented                in                series or serial form, and the exclusive right generally to exercise                for                television purposes all the rights granted to PGE hereunder for motion                picture purposes. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | Without                limiting any other rights granted PGE, to broadcast and/or transmit                by                television or radio or any process analogous thereto whether now                known or                from now on devised, all or any part of the Literary Property or                any                adaptation or version of it, including any motion picture or any                other                version or versions of it, and announcements about said motion picture                or                other version or versions, for advertising, publicizing or exploiting                such                motion picture or other version or versions, which broadcasts or                transmissions may be accomplished with living actors performing                simultaneously with such broadcast or transmission or by any other                method                or means including the use of motion pictures (including trailers)                reproduced on film or by means of magnetic tape or wire or through                other                recordings or transcriptions. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Pacific        Gold Entertainment Inc.**
| (e)   | To                publish and copyright or cause to be published and copyrighted in                the name                of the PGE or its nominee in any languages throughout the world,                in any                form or media, synopses, novelizations, serializations, dramatizations,                abridged and/or revised versions of the Literary Property, adapted                from                the Literary Property or from any motion picture and/or other version                of                the Literary Property for advertising, publicizing and/or exploiting                any                such motion picture and/or other version. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (f)   | For                the foregoing purposes to use all or any part of the Literary Property                and                any of the characters, plots, themes and/or ideas contained therein,                and                the title of the Literary Property and any title or subtitle of any                component of the Literary Property, and to use said titles or subtitles                for any motion picture or other version or adaptation whether the                same is                based on or adapted from the Literary Property and/or as the title                of any                musical composition contained in any such motion picture or other                version                or adaptation. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (g)   | To                use and exploit commercial or merchandise tie-ups and recordings                of any                sort and nature arising out of or connected with the Literary Property                and/or its motion picture or other versions and/or the title or titles                of                it and/or the characters of it and/or their names or                characteristics. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Picture**
**Pictures**

| **2.  ** | **RIGHTS                RESERVED:**                The following rights are reserved to the Seller for the Seller’s use and                disposition, subject, however, to the provisions of this                agreement: |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)**  ** | **Stage                Rights**:                The right to perform the Literary Property or adaptations of it on                the                spoken stage with actors appearing in person in the immediate presence                of                the audience, provided no broadcast, telecast, recording, photography                or                other reproduction of such performance is made. The Seller agrees                not to                exercise, or permit any other person to exercise, said stage rights                earlier than three (3) years after the first general release or telecast,                if earlier, of the first Picture produced hereunder, or five (5)                years                after the date of exercise of PGE’s option to acquire the Literary                Property, whichever is earlier. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)**  ** | **Author-Written                Sequel**:                A                literary property (story, novel, drama or otherwise), whether written                before or after the Literary Property and whether written by the                Seller or                by a successor in interest of the Seller, using one or more of the                characters appearing in the Literary Property, participating in different                events from those found in the Literary Property, and whose plot                is                substantially different from that of the Literary Property. The Seller                will have the right to exercise publication rights (i.e., in book                or                magazine form) any time. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Pacific        Gold Entertainment Inc.**
| (c)   | The                Seller agrees not to exercise, or permit any other person to exercise,                any                other rights (including but not limited to motion picture or allied                rights) of any kind in or to any author-written sequel earlier than                one                year after the first general release of the first Picture produced                hereunder, or two years after the date of exercise of PGE’s option to                acquire the Literary Property, whichever is earlier, provided such                restriction on the Seller’s exercise of said author-written sequel rights                will be extended to any period during which there is in effect, in                any                particular country or territory, a network television broadcasting                agreement for a television motion picture, (i) based upon the Literary                Property, or (ii) based upon any Picture produced in the exercise                of                rights assigned herein, or (iii) using a character or characters                of the                Literary Property, plus one year, which will also be a restricted                period                in such country or territory, whether such period occurs wholly or                partly                during or entirely after the one (1) year period first referred to                in this                clause. Any disposition of motion picture or allied rights in an                author-written sequel made to any person or company other than PGE                will be                made subject to the following limitations and                restrictions: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | Since                the characters of the Literary Property are included in the exclusive                grant of motion picture rights to PGE, no sequel rights or television                series rights to the Literary Property may be granted, but such characters                from the Literary Property which are contained in the author-written                sequel may be used in a motion picture and remakes of it whose plot                is                based substantially on the plot of the respective author-written                sequel. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **3.  ** | **RIGHT                TO MAKE CHANGES:**                The Seller agrees that PGE will have the unlimited right to vary,                change,                alter, modify, add to and/or delete from the Literary Property, and                to                rearrange and/or transpose the Literary Property and change the sequence                of it and the characters and descriptions of the characters contained                in                the Literary Property, and to use a portion or portions of the Literary                Property or the characters, plots, or theme of it with any other                literary,                dramatic or other material of any kind. The Seller waives the benefits                of                any provisions of law known as the “droit moral” or any similar law in any                country of the world and agrees not to permit or prosecute any action                or                lawsuit on the ground that any Picture or other version of the Literary                Property produced or exhibited by PGE, its assignees or licensees,                in any                way constitutes an infringement of any of the Seller’s droit moral or is                in any way a defamation or mutilation of the Literary Property or                any part                of it or contains unauthorized variations, alterations, modifications,                changes or translations. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **4.  ** | **DURATION                AND EXTENT OF RIGHTS GRANTED:**                PGE will enjoy, solely and exclusively, all the rights, licenses,                privileges and property granted hereunder throughout the world, in                perpetuity, as long as any rights in the Literary Property are recognized                in law or equity, except as far as such period of perpetuity may                be                shortened due to any now existing or future copyright by the Seller                of the                Literary Property and/or any adaptations of it, in which case PGE                will                enjoy its sole and exclusive rights, licenses, privileges and property                hereunder to the fullest extent permissible under and for the full                duration of such copyright or copyrights, whether common law or statutory,                and any renewals and/or extensions of it, and will after that enjoy                all                such rights, licenses, privileges and property non-exclusively in                perpetuity throughout the world. The rights granted herein are in                addition                to and will not be construed in derogation of any rights which PGE                may                have as a member of the public or pursuant to any other agreement.                All                rights, licenses, privileges and property granted herein to PGE are                irrevocable and not subject to rescission, restraint or injunction                under                any circumstances. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | All                rights granted or agreed to be granted to PGE under this agreement                will be                irrevocably vested in PGE and will not be subject to rescission by                the                Seller or any other party for any cause, nor will said rights be                subject                to termination or reversion by operation of law or otherwise, except                to                the extent, if any, that the provisions of any copyright law or similar                law relating to the right to terminate grants of, or recapture rights                in,                literary property may apply. If, pursuant to any such copyright law                or                similar law, the Seller or any successor or any other legally designated                party (all herein referred to as the “**terminating                party**”)                becomes entitled to exercise any right to reversion, recapture or                termination (the “**termination                right**”)                with respect to all or any part of the rights granted or to be granted                under this Agreement, |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 110**

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| (b)   | and                if the terminating party exercises said termination right with respect                to                all or part of said rights (the “**recaptured                rights**”),                then from and after the date on which the terminating party has the                right                to transfer to a third party all or part of the recaptured rights,                PGE                will have the first right to purchase and acquire the recaptured                rights                from the terminating party. If the terminating party is prepared                to accept                a bona fide offer from a third party with respect to all or part                of the                recaptured rights, then in each such instance the terminating party                will                notify PGE of such offer which the terminating party is prepared                to accept                and the name of the third party who made the offer to the terminating                party, and the terminating party will offer PGE the right to enter                into an                agreement with the terminating party with respect to the recaptured                rights                on the aforesaid terms and conditions. PGE will have 30 days from                the date                of its receipt of such written offer within which to notify the                terminating party of its acceptance of such offer. If PGE acquires                from                the terminating party all or part of the recaptured rights, then                the                terminating party agrees to enter into appropriate written agreements                with                PGE covering said acquisition. If PGE elects not to purchase the                recaptured rights from the terminating party, then the terminating                party                may dispose of said recaptured rights, but only to the aforesaid                third                party and only upon the terms and conditions specified in the aforesaid                written notice given by the terminating party to PGE, it being understood                and agreed that the terminating party may not dispose of said recaptured                rights either to: (i) any other proposed transferee; or (ii) upon                terms                and conditions which are more favorable to any transferee than the                terms                and conditions previously offered to PGE hereunder, without again                offering                to enter into an agreement with PGE on: (A) the terms offered to                such                other transferee; or (B) such more favorable terms and conditions                offered                to said proposed transferee, whichever of (A) or (B) will apply.                Any such                required offer made to PGE by the terminating party will be governed                by                the procedure set forth in the preceding four sentences of this Paragraph.                The unenforceability of any portion of this paragraph will not invalidate                or affect the remaining portions of this paragraph or this                agreement. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **5.  ** | **CONSIDERATION:**                As                consideration for all rights granted and assigned to PGE and for                the                Seller’s representations and warranties, PGE agrees to pay to the Seller,                and the Seller agrees to accept: |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | For                a theatrical or television motion picture $32,000. CDN payment (payable                first day of production, in equal but not preferred order to other                parties                involved in receiving deferred payment), besides any sums paid in                connection with the option periods so payable upon exercise of the                option                to acquire the Literary Property. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **6.  ** | **REPRESENTATIONS                AND WARRANTIES:** |
|--------------------|----------------------------------------------------|
| **(a)  ** | **Sole                Proprietor**:                The Seller represents and warrants to PGE that the Seller is the                sole and                exclusive proprietor, throughout the universe, of that certain original                literary material written by the Seller entitled                “BLOOD”. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(b)  ** | **Facts**:                The Seller represents and warrants to PGE as                follows: |
|---------------------|------------------------------------------------------------------------------------------------|
| (iii)   | None                of the rights herein granted and assigned to PGE have been granted                and/or                assigned to any person, firm or corporation other than                PGE. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 111**

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**Pacific        Gold Entertainment Inc.**
| **(c)  ** | **No                Infringement or Violation of Third-Party Rights**:                The Seller represents and warrants to PGE that the Seller has not                adapted                the Literary Property from any other literary, dramatic or other                material                of any kind, nature or description, nor, except material which is                in the                public domain, has the Seller copied or used in the Literary Property                the                plot, scenes, sequence or story of any other literary, dramatic or                other                material; that the Literary Property does not infringe upon any common                law                or statutory rights in any other literary, dramatic or other material;                that no material contained in the Literary Property is libelous or                violative of the right of privacy of any person; that the full utilization                of any and all rights in and to the Literary Property granted by                the                Seller pursuant to this agreement will not violate the rights of                any                person, firm or corporation; and that the Literary Property is not                in the                public domain in any country in the world where copyright protection                is                available. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | No                Impairment of Rights: The Seller represents and warrants to PGE that                the                Seller is the exclusive proprietor, throughout the universe, of all                rights                in and to the Literary Property granted herein to PGE; that the Seller                has                not assigned, licensed or in any manner encumbered, diminished or                impaired                any such rights; that the Seller has not committed or omitted to                perform                any act by which such rights could or will be encumbered, diminished                or                impaired; and that there is no outstanding claim or litigation pending                against or involving the title, ownership and/or copyright in the                Literary                Property, or in any part thereof, or in any rights granted herein                to PGE.                The Seller further represents and warrants that no attempt will be                made                hereafter to encumber, diminish or impair any of the rights granted                herein                and that all appropriate protection of such rights will continue                to be                maintained by the Seller. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **7.  ** | **INDEMNIFICATION:** |
|--------------------|----------------------|
| (a)   | The                Seller agrees to indemnify PGE against all judgments, liability,                damages,                penalties, losses and expense (including reasonable attorneys’ fees) which                may be suffered or assumed by or obtained against PGE by reason of                any                breach or failure of any warranty or agreement made by the Seller                in this                agreement. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | PGE                will not be liable to the Seller for damages of any kind in connection                with any Picture it may produce, distribute or exhibit, or for damages                for                any breach of this agreement (except failure to pay the money                consideration herein specified) occurring or accruing before PGE                has had                reasonable notice and opportunity to adjust or correct such                matters. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | All                rights, licenses and privileges herein granted to PGE are irrevocable                and                not subject to rescission, restraint or injunction under any                circumstances. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **8.  ** | **PROTECTION                OF RIGHTS GRANTED:**                The Seller grants to PGE the free and unrestricted right, but at                PGE’s own                cost and expense, to institute in the name and on behalf of the Seller,                or                the Seller and PGE jointly, any and all suits and proceedings at                law or in                equity, to enjoin and restrain any infringements of the rights herein                granted, and assigns and sets over to PGE any and all causes of action                relative to or based upon any such infringement, as well as any and                all                recoveries obtained thereon. The Seller will not compromise, settle                or in                any manner interfere with such litigation if brought; and PGE agrees                to                indemnify and hold the Seller harmless from any costs, expenses,                or                damages that the Seller may suffer as a result of any such suit or                proceeding. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **9.  ** | **COPYRIGHT:**                Regarding the copyright in and to the Literary Property, the Seller                agrees                that: |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | The                Seller will prevent the Literary Property and any arrangements, revisions,                translations, novelizations, dramatizations or new versions thereof,                whether published or unpublished and whether copyrighted or not                copyrighted, from vesting in the public domain, and will take or                cause to                be taken any and all steps and proceedings required for copyright                or                similar protection in any and all countries in which the same may                be                published or offered for sale, insofar as such countries now or hereafter                provide for copyright or similar protection. Any contract or agreement                entered into by the Seller authorizing or permitting the publication                of                the Literary Property or any arrangements, revisions, translations,                novelizations, dramatizations or new versions thereof in any country                will                contain appropriate provisions requiring such publisher to comply                with all                the provisions of this clause. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 112**

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| (b)   | Without                limiting the generality of the foregoing, if the Literary Property                or any                arrangement, revision, translation, novelizations, dramatization                or new                version thereof is published in the United States or in any other                country                in which registration is required for copyright or similar protection                in                accordance with the laws and regulations of such country, and the                Seller                further agrees to affix or cause to be affixed to each copy of the                Literary Property or any arrangement, revision, translation,                novelizations, dramatization or new version thereof which is published                or                offered for sale such notice or notices as may be required for copyright                or similar protection in any country in which such publication or                sale                occurs. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | At                least six months prior to the expiration of any copyright required                by this                provision for the protection of the Literary Property, the Seller                will                renew (or cause to be renewed) such copyright, as permitted by applicable                law, and any and all rights granted PGE hereunder will be deemed                granted                to PGE throughout the full period of such renewed copyright, without                the                payment of any additional consideration, it being agreed that the                consideration payable to the Seller under this agreement will be                deemed to                include full consideration for the grant of such rights to PGE throughout                the period of such renewed copyright. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | If                the Literary Property, or any arrangement, revision, translation,                novelization, dramatization or new version thereof, will ever enter                the                public domain, then nothing contained in this agreement will impair                any                rights or privileges that the PGE might be entitled to as a member                of the                public; thus, the PGE may exercise any and all such rights and privileges                as though this agreement were not in existence. The rights granted                in this                agreement by the Seller to PGE, and the representations, warranties,                undertakings and agreements made under this agreement by the Seller,                will                endure in perpetuity and will be in addition to any rights, licenses,                privileges or property of PGE referred to in this sub clause                (d). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **10.  ** | **CREDIT                OBLIGATIONS:**                PGE will have the right to publish, advertise, announce and use in                any                manner or medium, the name, biography and photographs or likenesses                of the                Seller in connection with any exercise by PGE of its rights hereunder,                provided such use will not constitute an endorsement of any product                or                service. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**WGC        Agreement**

**Page            - 113**

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**Pacific        Gold Entertainment Inc.**
| **11.  ** | **RIGHT                OF FIRST NEGOTIATION:**                The term “**Right                of First Negotiation**”                means that if, after the expiration of an applicable time limitation,                the                Seller desires to dispose of or exercise a particular right reserved                to                the Seller herein (the “**Reserved                Right**”),                whether directly or indirectly, then the Seller will notify PGE in                writing                and immediately negotiate with PGE regarding such Reserved Right.                If,                after the expiration of 90 days following the receipt of such notice,                no                agreement has been reached, then the Seller may negotiate with third                parties regarding such Reserved Right subject to Clause 12                infra. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **12.  ** | **RIGHT                OF LAST REFUSAL:**                The term “**Right                of Last Refusal**”                means that if PGE and the Seller fail to reach an agreement pursuant                to                PGE’s right of first negotiation, and the Seller makes and/or receives                any                bona fide offer to license, lease and/or purchase the particular                Reserved                Right or any interest therein (a “**Third-Party                Offer**”),                and if the proposed purchase price and other material terms of a                Third-Party Offer are no more favorable to the Seller than the terms                which                were acceptable to PGE during the first negotiation period, the Seller                will notify PGE, by registered mail or telegram, if the Seller proposes                to                accept such Third-Party Offer, the name of the offerer, the proposed                purchase price, and other terms of such Third-Party Offer. During                the                period of 30 days after PGE’s receipt of such notice, PGE will have the                exclusive option to license, lease and/or purchase, as the case may                be,                the particular Reserved Right or interest referred to in such Third-Party                Offer, at the same purchase price and upon the same terms and conditions                as set forth in such notice. If PGE elects to exercise thereof by                registered mail or telegram within such thirty (30) day period, failing                which the Seller will be free to accept such Third-Party Offer; provided                that if any such proposed license, lease and/or sale is not consummated                with a third party within 90 days following the expiration of the                aforesaid 30 day period, PGE’s Right of Last Refusal will revive and will                apply to each and every further offer or offers at any time received                by                the Seller relating to the particular Reserved Right or any interest                therein; provided, further, that PGE’s option will continue in full force                and effect, upon all terms and conditions of this paragraph, so long                as                the Seller retains any rights, title or interest in or to the particular                Reserved Right. PGE’s Right of Last Refusal will inure to the benefit of                PGE, its successors and assigns, and will bind the Seller and the                Seller’s                heirs, successors and assigns. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **13.  ** | **NO                OBLIGATION TO PRODUCE:**                Nothing herein will be construed to obligate PGE to produce, distribute,                release, perform or exhibit any motion picture, television, theatrical                or                other production based upon, adapted from or suggested by the Literary                Property, in whole or in part, or otherwise to exercise, exploit                or make                any use of any rights, licenses, privileges or property granted herein                to                PGE. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **14.  ** | **ASSIGNMENT:**                PGE may assign and transfer this agreement or all or any part of                its                rights hereunder to any person, firm or corporation without limitation,                and this agreement will be binding upon and inure to the benefit                of the                parties hereto and their successors, representatives and assigns                forever. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **15.  ** | **NO                PUBLICITY:**                The Seller will not, without PGE’s prior written consent in each instance,                issue or authorize the issuance or publication of any new story or                publicity relating to (i) this agreement, (ii) the subject matter                or terms                hereof, or to any use by PGE, its successors, licensees and assigns,                and                (iii) any of the rights granted PGE                hereunder. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **16.  ** | **AGENT                COMMISSIONS:**                PGE will not be liable for any compensation or fee to any agent of                the                Seller in connection with this Agreement. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **17.  ** | **ADDITIONAL                DOCUMENTATION:**                The Seller agrees to execute and procure any other and further instruments                necessary to transfer, convey, assign and copyright all rights in                the                Literary Property granted herein by the Seller to PGE in any country                throughout the world. If it will be necessary under the laws of any                country that copyright registration be acquired in the name of the                Seller,                PGE is authorized by the Seller to apply for said copyright registration                thereof; and, in such event, the Seller will and does assign and                transfer                the same unto PGE, subject to the rights in the Literary Property                reserved                hereunder by the Seller. The Seller further agrees, upon request,                to duly                execute, acknowledge, procure and deliver to PGE such short form                assignments as may be requested by PGE for the purpose of copyright                recordation in any country, or otherwise. If the Seller fails to                so                execute and deliver, or cause to be executed and delivered, the                assignments or other instruments herein referred to, PGE is irrevocably                granted the power coupled with an interest to execute such assignments                and                instruments in the name of the Seller and as the Seller’s                attorney-in-fact. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **18.  ** | **NOTICES:**                All notices to PGE under this agreement will be sent by Canada Post                registered mail, postage prepaid, or by telegram addressed to PGE                at #7 -                534 Cambie Street Vancouver BC V6B- 2N7, and all notices to the Seller                under this agreement will be sent by Canada Post registered mail,                postage                prepaid, or by telegram addressed to the Seller at #7 - 534 Cambie                Street,                Vancouver, British Columbia, V6B 2N7. The date of such deposit will                be                deemed to be the date of service of such                notice. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **19.  ** | **ARBITRATION:**                Any controversy or claim arising out of or in relation to this Agreement                or the validity, construction or performance of the Agreement, or                the                breach thereof, will be resolved by arbitration in accordance with                the                rules and procedures of the American Film Marketing Association,                as said                rules may be amended from time to time with rights of discovery if                requested from the arbitrator. Such rules and procedures are incorporated                and made a part of this Agreement by reference. If the American Film                Marketing Association will refuse to accept jurisdiction of such                dispute,                then the parties will arbitrate such matter before and in accordance                with                the rules of the Canadian Arbitration Association under its jurisdiction                in Vancouver, British Columbia before a single arbitrator familiar                with                entertainment law. The parties will have the right to engage in                pre-hearing discovery in connection with such arbitration proceedings                if                approved by the arbitrator. The parties hereto will abide by and                perform                any award rendered in any arbitration conducted pursuant hereto,                that any                court having jurisdiction thereof may issue a judgment based upon                such                award and that the prevailing party in such arbitration and/or                confirmation proceeding will be entitled to recover its reasonable                attorneys fees and expenses. The arbitration award will be final,                binding                and non-appealable. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 114**

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**Pacific        Gold Entertainment Inc.**
| **20.  ** | **MISCELLANEOUS:** |
|---------------------|--------------------|
| (a)   | Relationship:                This agreement between the parties does not constitute a joint venture                or                partnership of any kind. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | Cumulative                Rights and Remedies: All rights, remedies, licenses, undertakings,                obligations, covenants, privileges and other property granted herein                will                be cumulative, and PGE may exercise or use any of them separately                or in                conjunction with any one or more of the                others. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | Waiver:                A waiver by either party of any term or condition of this agreement                in any                instance will not be deemed or construed to be a waiver of such term                or                condition for the future, or any subsequent breach                thereof. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | Severability:                If any provision of this agreement as applied to either party or                any                circumstances will be adjudged by a court to be void and unenforceable,                such will in no way affect any other provision of this agreement,                the                application of such provision in any other circumstance, or the validity                or enforceability of this agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (e)   | Governing                Law: This agreement will be construed in accordance with the laws                of the                Province of British Columbia applicable to agreement which are executed                and fully performed within said Province. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (f)   | Captions:                Captions are inserted for reference and convenience only and in no                way                define, limit or describe the scope of this agreement or intent of                any                provision. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (g)   | Entire                Understanding: This agreement contains the entire understanding of                the                parties relating to the subject matter, and this agreement cannot                be                changed except by written agreement executed by the party to be                bound. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Somnambulist        Imagery Inc.**

*/s/        Mark Tuit*

**Pacific        Gold Entertainment Inc.**

*/s/        Ron Loudoun*

**Page            - 115**

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**Pacific        Gold Entertainment Inc.**

**Work**

**Option        Agreement**

*/s/          Mark Tuit*

***/s/          Witness                    ***

**Page          - 116**

----

**Exhibit        4.5**

**Page            - 117**

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**Pacific      Gold Entertainment Inc.**

**OPTION      & LITERARY PURCHASE AGREEMENT**

**PGE**
**      Seller**

**SELLER’S      REPRESENTATIONS AND WARRANTIES:**

| **(a)  ** | **Sole                Proprietor**:                The Seller represents and warrants to PGE that the Seller is the                sole and                exclusive proprietor, throughout the world of that certain original                literary material written by Mark Tuit entitled SUBHUMAN 2 (the                “**Literary                Property**”). |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(b)  ** | **Facts**:                The Seller represents and warrants to PGE that the following statements                are true and correct in all respects with respect to said literary                material: |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | The                Seller is the sole author of the Literary                Property. |
|-----------------|---------------------------------------------------------------------------------------|

| (ii)   | The                Literary Property was registered for copyright in the name of SUBHUMAN                2,                under copyright registration number (Pending), in the Office of the                United                States Register of Copyrights, Washington,                D.C. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(c)  ** | **No                Infringement or Violation of Third Party Rights**:                The Seller represents and warrants to PGE that the Seller has not                adapted                the Literary Property from any other literary, dramatic or other                material                of any kind, nature or description, nor, excepting for material which                is                in the public domain, has the Seller copied or used in the Literary                Property the plot, scenes, sequence or story of any other literary,                dramatic or other material; that the Literary Property does not infringe                upon any common law or statutory rights in any other literary, dramatic,                or other material; that as far as the Seller has knowledge, no material                in                the Literary Property is libelous or vocative of the right of privacy                of                any person and the full use of the rights in the Literary Property                which                are covered by the within option would not violate any rights of                any                person, firm or corporation; and that the Literary Property is not                in the                public domain in any country in the world where copyright protection                is                available. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(d)  ** | **No                Impairment of Rights**:                The Seller represents and warrants to PGE that the Seller is the                exclusive                proprietor, throughout the world, of the rights in the Literary Property,                which are covered by the within option; that the Seller has not assigned,                licensed nor in any manner encumbered, diminished or impaired these                rights; that the Seller has not committed nor omitted to perform                any act                by which these rights could or will be encumbered, diminished or                impaired;                and that there is no outstanding claim or litigation pending against                or                involving the title, ownership and/or copyright in the Literary Property,                or in any part of it, or in the rights which are covered by the within                option. The Seller further represents and warrants that no attempt                hereafter will be made to encumber, diminish or impair any of the                rights                herein granted and that all appropriate protections of such rights                will                continue to be maintained by the                Seller. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 118**

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**Pacific      Gold Entertainment Inc.**

| **2.  ** | **CONSIDERATION                FOR OPTION:**                In                consideration of the payment to the Seller of the sum of $1.00, receipt                of                which is acknowledged, the Seller agrees to and does give and grant                to PGE                the exclusive and irrevocable option to purchase from the Seller                the                rights in the Literary Property as described in Exhibit “A” for the total                purchase price specified and payable as provided in Exhibit “A”, provided                that any sums paid under this Clause 2 or any other provision of                this                agreement with respect to the option will be credited against the                first                sums payable on account of such purchase price. If PGE fails to exercise                this option, then the sums paid to the Seller hereunder with respect                to                the option will be and remain the sole property of the                Seller. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.  ** | **OPTION                PERIOD:**                The within option will be effective during the period commencing                on July                10, 2006 and ending August 1, 2008 (the “**Initial                Option Period**”). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4.  ** | **EXERCISE                OF OPTION:** |
|--------------------|----------------------------------------|

| **(a)  ** | **Notice                of Exercise**:                If PGE elects to exercise the within option, PGE (any time during                the                Initial Option Period) will serve upon the Seller notice of the exercise                of it. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | The                purchase price will be paid to the Seller according to Exhibit                “A”. |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| **5.  ** | **EFFECTIVENESS                OF EXHIBITS “A”****AND****“B”:**                Concurrently with the execution of this agreement, the Seller has                executed                Exhibits “A” (Literary Purchase Agreement) and “B” (Short Form Option                Agreement for Recordation), which are undated, and it is agreed that                if                PGE exercises the option (but not otherwise), then the signature                of the                Seller to Exhibits “A” and “B” will be deemed to be effective, and these                Exhibits will constitute valid and binding agreements and assignment                effective as of the date of exercise of such option, and PGE is authorized                and empowered to date such instruments accordingly. If PGE fails                to                exercise the option, then the signature of the Seller to Exhibits“A” and                “B” will be void and of no further force or effect whatever, and PGE                will                not be deemed to have acquired any rights in or to the Literary Property                other than the option hereinabove provided for. If PGE exercises                the                option, PGE will execute and deliver to the Seller copies of Exhibit“A”,                dated as of the date of the exercise of the option, and the Seller                will,                if so requested by PGE, execute and deliver to PGE additional copies                of                Exhibits “A” and “B”. Notwithstanding the failure or omission of either                party to execute and/or deliver such additional documents, it is                agreed                that upon the exercise of the option by PGE pursuant to the provisions                of                Exhibit “A” will be deemed vested in PGE, effective as of the date of                exercise of the option, which rights will be                irrevocable. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6.  ** | **RIGHT                TO ENGAGE IN PRE-PRODUCTION:**                The Seller acknowledges that PGE may, at its own expense, during                the                Initial Option Period, undertake pre-production activities in connection                with any of the rights to be acquired hereunder including, without                limitation, the preparation and submission of treatments and/or                screenplays based on the Literary                Property. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.  ** | **RESTRICTIONS:**                During the Initial Option Period, the Seller will not exercise or                otherwise use any of the rights herein granted to PGE and as more                particularly described in Exhibit “A” hereof nor the rights reserved to                the Seller pursuant to Clause 2 (Rights Reserved) of Exhibit “A”, nor will                the Seller permit the use of nor will the Seller use any other right                the                Seller has reserved in a way that would in any manner or for any                purpose                unfairly compete with, interfere with or conflict with the full and                unrestricted use of the rights herein granted to PGE and as described                in                Exhibit “A”. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 119**

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**Pacific      Gold Entertainment Inc.**

| **8.  ** | **ASSIGNMENT:**                This agreement and the rights granted hereunder may be assigned by                PGE to                any other person, firm or corporation without the consent of the                Seller,                provided the assignee accepts all the obligations of PGE under this                agreement as a condition of the                assignment. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9.  ** | **FORCE                MAJEURE:**“Force                Majeure” means any fire, flood, earthquake or public disaster; strike,                labor dispute or unrest; embargo, riot, war, insurrection or civil                unrest;                any act of God, any act of legally constituted authority; or any                other                cause beyond PGE’s control which would excuse PGE’s performance as a                matter of law. If because of Force Majeure, PGE’s performance hereunder is                delayed or prevented, then the Initial Option period will be extended                for                the time of such delay or                prevention. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **10.  ** | **SECTION                HEADINGS:**                The headings of paragraphs, sections and other subdivisions of this                agreement are for convenient reference only and they will not be                used in                any way to govern, limit, modify, construe this agreement or any                part or                provision of it. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **11.  ** | **ARBITRATION:**                Any controversy or claim arising out of or in relation to this agreement                or the validity, construction or performance of this agreement, or                the                breach thereof, will be resolved by arbitration in accordance with                the                rules and procedures of the American Film Marketing Association,                as said                rules may be amended from time to time with rights of discovery if                requested from the arbitrator. Such rules and procedures are incorporated                and made a part of this agreement by reference. If the American Film                Marketing Association refuses to accept jurisdiction of such dispute,                then                the parties will arbitrate such matter before and in accordance with                the                rules of the Canadian Arbitration Association under its jurisdiction                in                Vancouver, British Columbia before a single arbitrator familiar with                entertainment law. The parties will have the right to engage in                pre-hearing discovery in connection with such arbitration proceedings                if                approved by the arbitrator. The parties hereto will abide by and                perform                any award rendered in any arbitration conducted pursuant hereto,                that any                court having jurisdiction thereof may issue a judgment based upon                such                award and that the prevailing party in such arbitration and/or                confirmation proceeding will be entitled to recover its reasonable                attorneys fees and expenses. The arbitration award will be final,                binding                and non-appealable. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **12.  ** | **ENTIRE                AGREEMENT:**                This agreement, including the Exhibits attached hereto, contains                the                complete understanding and agreement between the parties with respect                to                the within subject matter, and supersedes all other agreements between                the                parties whether written or oral relating thereto, and may not be                modified                or amended except by written instrument executed by both of the parties                hereto. This agreement will in all respects be subject to the laws                of the                Province of British Columbia applicable to agreements executed and                wholly                performed within such Province. All the rights, licenses, privileges                and                property herein granted to PGE are irrevocable and not subject to                rescission, restraint, or injunction under any or all                circumstances. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Pacific      Gold Entertainment Inc.**

*/s/      Ron Loudoun*

**Somnambulist      Imagery Inc.**

*/s/      Mark Tuit*

**Page            - 120**

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**Pacific      Gold Entertainment Inc.**

**Seller**
**PGE**

**Literary      Property**

| **1.  ** | **RIGHTS                GRANTED:**                The Seller sells, grants, conveys and assigns to PGE, its successors,                licensees and assigns exclusively and forever, all motion picture                rights                (including all silent, sound dialogue and musical motion picture                rights),                all television motion-picture and other television rights, with all                radio                broadcasting rights and all publication rights for advertisement,                publicity and exploitation purposes, and certain incidental and allied                rights, throughout the world, in and to the Literary Property and                in and                to the copyright of it and all renewals and extensions of copyright.                Included among the rights granted to PGE hereunder (without in any                way                limiting the grant of rights hereinabove made) are the following                sole and                exclusive rights throughout the                world: |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | To                make, produce, adapt and copyright one or more motion picture adaptations                or versions, whether fixed on film, tape, disc, wire, audio-visual                cartridge, cassette, DVD, or through any other technical process                whether                now known or from now on devised, based in whole or in part on the                Literary Property, of every size, gauge, colour or type, including,                but                not limited to, musical motion pictures and remakes of and sequels                to any                motion picture produced hereunder and motion pictures in series or                serial                form, and for such purposes to record and reproduce and license others                to                record and reproduce, in synchronization with such motion pictures,                spoken                words taken from or based upon the text or theme of the property                and any                kinds of music, musical accompaniments and/or lyrics to be performed                or                sung by the performers in any such motion picture and any other kinds                of                sound and sound effects. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | To                exhibit, perform, rent, lease and generally deal in and with any                motion                picture produced hereunder: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | by                all means or technical processes whatsoever, whether now known or                from now                on devised including, by way of example only, film, tape, disc, wire,                audio-visual cartridge, cassette, DVD, or television (including                commercially sponsored, sustaining, and subscription or pay-per-view                television, or any derivative of it);                and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | anywhere                whatsoever, including homes, theatres and elsewhere, and whether                a fee is                charged, directly or indirectly, for viewing any such motion                picture. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | To                broadcast, transmit or reproduce the Literary Property or any adaptation                or version of it (including without limitations to, any motion picture                produced hereunder and/or any script or other material based on or                using                the Literary Property or any of the characters, themes or plots of                it), by                means of television or any process analogous thereto whether now                known or                from now on devised (including commercially sponsored, sustaining                and                subscription or pay-per-view television, Internet and Video on Demand),                by                motion pictures produced on films or by means of magnetic tape, wire,                disc, audio-visual cartridge, DVD, or any other device now known                or from                now on devised and including such television productions presented                in                series or serial form, and the exclusive right generally to exercise                for                television purposes all the rights granted to PGE hereunder for motion                picture purposes. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 121**

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**Pacific      Gold Entertainment Inc.**

| (d)   | Without                limiting any other rights granted PGE, to broadcast and/or transmit                by                television or radio or any process analogous thereto whether now                known or                from now on devised, all or any part of the Literary Property or                any                adaptation or version of it, including any motion picture or any                other                version or versions of it, and announcements about said motion picture                or                other version or versions, for advertising, publicizing or exploiting                such                motion picture or other version or versions, which broadcasts or                transmissions may be accomplished with living actors performing                simultaneously with such broadcast or transmission or by any other                method                or means including the use of motion pictures (including trailers)                reproduced on film or by means of magnetic tape or wire or through                other                recordings or transcriptions. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | To                publish and copyright or cause to be published and copyrighted in                the name                of the PGE or its nominee in any languages throughout the world,                in any                form or media, synopses, novelizations, serializations, dramatizations,                abridged and/or revised versions of the Literary Property, adapted                from                the Literary Property or from any motion picture and/or other version                of                the Literary Property for advertising, publicizing and/or exploiting                any                such motion picture and/or other                version. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | For                the foregoing purposes to use all or any part of the Literary Property                and                any of the characters, plots, themes and/or ideas contained therein,                and                the title of the Literary Property and any title or subtitle of any                component of the Literary Property, and to use said titles or subtitles                for any motion picture or other version or adaptation whether the                same is                based on or adapted from the Literary Property and/or as the title                of any                musical composition contained in any such motion picture or other                version                or adaptation. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | To                use and exploit commercial or merchandise tie-ups and recordings                of any                sort and nature arising out of or connected with the Literary Property                and/or its motion picture or other versions and/or the title or titles                of                it and/or the characters of it and/or their names or                characteristics. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Picture**
**Pictures**

| **2.  ** | **RIGHTS                RESERVED:**                The following rights are reserved to the Seller for the Seller’s use and                disposition, subject, however, to the provisions of this                agreement: |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)**  ** | **Stage                Rights**:                The right to perform the Literary Property or adaptations of it on                the                spoken stage with actors appearing in person in the immediate presence                of                the audience, provided no broadcast, telecast, recording, photography                or                other reproduction of such performance is made. The Seller agrees                not to                exercise, or permit any other person to exercise, said stage rights                earlier than three (3) years after the first general release or telecast,                if earlier, of the first Picture produced hereunder, or five (5)                years                after the date of exercise of PGE’s option to acquire the Literary                Property, whichever is earlier. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | **Author-Written                Sequel**:                A                literary property (story, novel, drama or otherwise), whether written                before or after the Literary Property and whether written by the                Seller or                by a successor in interest of the Seller, using one or more of the                characters appearing in the Literary Property, participating in different                events from those found in the Literary Property, and whose plot                is                substantially different from that of the Literary Property. The Seller                will have the right to exercise publication rights (i.e., in book                or                magazine form) any time. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 122**

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**Pacific      Gold Entertainment Inc.**

| (c)   | The                Seller agrees not to exercise, or permit any other person to exercise,                any                other rights (including but not limited to motion picture or allied                rights) of any kind in or to any author-written sequel earlier than                one                year after the first general release of the first Picture produced                hereunder, or two years after the date of exercise of PGE’s option to                acquire the Literary Property, whichever is earlier, provided such                restriction on the Seller’s exercise of said author-written sequel rights                will be extended to any period during which there is in effect, in                any                particular country or territory, a network television broadcasting                agreement for a television motion picture, (i) based upon the Literary                Property, or (ii) based upon any Picture produced in the exercise                of                rights assigned herein, or (iii) using a character or characters                of the                Literary Property, plus one year, which will also be a restricted                period                in such country or territory, whether such period occurs wholly or                partly                during or entirely after the one (1) year period first referred to                in this                clause. Any disposition of motion picture or allied rights in an                author-written sequel made to any person or company other than PGE                will be                made subject to the following limitations and                restrictions: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Since                the characters of the Literary Property are included in the exclusive                grant of motion picture rights to PGE, no sequel rights or television                series rights to the Literary Property may be granted, but such characters                from the Literary Property which are contained in the author-written                sequel may be used in a motion picture and remakes of it whose plot                is                based substantially on the plot of the respective author-written                sequel. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.  ** | **RIGHT                TO MAKE CHANGES:**                The Seller agrees that PGE will have the unlimited right to vary,                change,                alter, modify, add to and/or delete from the Literary Property, and                to                rearrange and/or transpose the Literary Property and change the sequence                of it and the characters and descriptions of the characters contained                in                the Literary Property, and to use a portion or portions of the Literary                Property or the characters, plots, or theme of it with any other                literary,                dramatic or other material of any kind. The Seller waives the benefits                of                any provisions of law known as the “droit moral” or any similar law in any                country of the world and agrees not to permit or prosecute any action                or                lawsuit on the ground that any Picture or other version of the Literary                Property produced or exhibited by PGE, its assignees or licensees,                in any                way constitutes an infringement of any of the Seller’s droit moral or is                in any way a defamation or mutilation of the Literary Property or                any part                of it or contains unauthorized variations, alterations, modifications,                changes or translations. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4.  ** | **DURATION                AND EXTENT OF RIGHTS GRANTED:**                PGE will enjoy, solely and exclusively, all the rights, licenses,                privileges and property granted hereunder throughout the world, in                perpetuity, as long as any rights in the Literary Property are recognized                in law or equity, except as far as such period of perpetuity may                be                shortened due to any now existing or future copyright by the Seller                of the                Literary Property and/or any adaptations of it, in which case PGE                will                enjoy its sole and exclusive rights, licenses, privileges and property                hereunder to the fullest extent permissible under and for the full                duration of such copyright or copyrights, whether common law or statutory,                and any renewals and/or extensions of it, and will after that enjoy                all                such rights, licenses, privileges and property non-exclusively in                perpetuity throughout the world. The rights granted herein are in                addition                to and will not be construed in derogation of any rights which PGE                may                have as a member of the public or pursuant to any other agreement.                All                rights, licenses, privileges and property granted herein to PGE are                irrevocable and not subject to rescission, restraint or injunction                under                any circumstances. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | All                rights granted or agreed to be granted to PGE under this agreement                will be                irrevocably vested in PGE and will not be subject to rescission by                the                Seller or any other party for any cause, nor will said rights be                subject                to termination or reversion by operation of law or otherwise, except                to                the extent, if any, that the provisions of any copyright law or similar                law relating to the right to terminate grants of, or recapture rights                in,                literary property may apply. If, pursuant to any such copyright law                or                similar law, the Seller or any successor or any other legally designated                party (all herein referred to as the “**terminating                party**”)                becomes entitled to exercise any right to reversion, recapture or                termination (the “**termination                right**”)                with respect to all or any part of the rights granted or to be granted                under this Agreement, |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Pacific      Gold Entertainment Inc.**

| (b)   | and                if the terminating party exercises said termination right with respect                to                all or part of said rights (the “**recaptured                rights**”),                then from and after the date on which the terminating party has the                right                to transfer to a third party all or part of the recaptured rights,                PGE                will have the first right to purchase and acquire the recaptured                rights                from the terminating party. If the terminating party is prepared                to accept                a bona fide offer from a third party with respect to all or part                of the                recaptured rights, then in each such instance the terminating party                will                notify PGE of such offer which the terminating party is prepared                to accept                and the name of the third party who made the offer to the terminating                party, and the terminating party will offer PGE the right to enter                into an                agreement with the terminating party with respect to the recaptured                rights                on the aforesaid terms and conditions. PGE will have 30 days from                the date                of its receipt of such written offer within which to notify the                terminating party of its acceptance of such offer. If PGE acquires                from                the terminating party all or part of the recaptured rights, then                the                terminating party agrees to enter into appropriate written agreements                with                PGE covering said acquisition. If PGE elects not to purchase the                recaptured rights from the terminating party, then the terminating                party                may dispose of said recaptured rights, but only to the aforesaid                third                party and only upon the terms and conditions specified in the aforesaid                written notice given by the terminating party to PGE, it being understood                and agreed that the terminating party may not dispose of said recaptured                rights either to: (i) any other proposed transferee; or (ii) upon                terms                and conditions which are more favorable to any transferee than the                terms                and conditions previously offered to PGE hereunder, without again                offering                to enter into an agreement with PGE on: (A) the terms offered to                such                other transferee; or (B) such more favorable terms and conditions                offered                to said proposed transferee, whichever of (A) or (B) will apply.                Any such                required offer made to PGE by the terminating party will be governed                by                the procedure set forth in the preceding four sentences of this Paragraph.                The unenforceability of any portion of this paragraph will not invalidate                or affect the remaining portions of this paragraph or this                agreement. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **5.  ** | **CONSIDERATION:**                As                consideration for all rights granted and assigned to PGE and for                the                Seller’s representations and warranties, PGE agrees to pay to the Seller,                and the Seller agrees to accept: |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | For                a theatrical or television motion picture $32,000. CDN payment (payable                first day of production, in equal but not preferred order to other                parties                involved in receiving deferred payment), besides any sums paid in                connection with the option periods so payable upon exercise of the                option                to acquire the Literary Property. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6.  ** | **REPRESENTATIONS                AND WARRANTIES:** |
|--------------------|----------------------------------------------------|

| (a)**  ** | **Sole                Proprietor**:                The Seller represents and warrants to PGE that the Seller is the                sole and                exclusive proprietor, throughout the universe, of that certain original                literary material written by the Seller entitled “SUBHUMAN                2”. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)**  ** | **Facts**:                The Seller represents and warrants to PGE as                follows: |
|---------------------|------------------------------------------------------------------------------------------------|

| (iii)   | None                of the rights herein granted and assigned to PGE have been granted                and/or                assigned to any person, firm or corporation other than                PGE. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 124**

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**Pacific      Gold Entertainment Inc.**

| **(c)  ** | **No                Infringement or Violation of Third-Party Rights**:                The Seller represents and warrants to PGE that the Seller has not                adapted                the Literary Property from any other literary, dramatic or other                material                of any kind, nature or description, nor, except material which is                in the                public domain, has the Seller copied or used in the Literary Property                the                plot, scenes, sequence or story of any other literary, dramatic or                other                material; that the Literary Property does not infringe upon any common                law                or statutory rights in any other literary, dramatic or other material;                that no material contained in the Literary Property is libelous or                violative of the right of privacy of any person; that the full utilization                of any and all rights in and to the Literary Property granted by                the                Seller pursuant to this agreement will not violate the rights of                any                person, firm or corporation; and that the Literary Property is not                in the                public domain in any country in the world where copyright protection                is                available. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | No                Impairment of Rights: The Seller represents and warrants to PGE that                the                Seller is the exclusive proprietor, throughout the universe, of all                rights                in and to the Literary Property granted herein to PGE; that the Seller                has                not assigned, licensed or in any manner encumbered, diminished or                impaired                any such rights; that the Seller has not committed or omitted to                perform                any act by which such rights could or will be encumbered, diminished                or                impaired; and that there is no outstanding claim or litigation pending                against or involving the title, ownership and/or copyright in the                Literary                Property, or in any part thereof, or in any rights granted herein                to PGE.                The Seller further represents and warrants that no attempt will be                made                hereafter to encumber, diminish or impair any of the rights granted                herein                and that all appropriate protection of such rights will continue                to be                maintained by the Seller. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.  ** | **INDEMNIFICATION:** |
|--------------------|----------------------|

| (a)   | The                Seller agrees to indemnify PGE against all judgments, liability,                damages,                penalties, losses and expense (including reasonable attorneys’ fees) which                may be suffered or assumed by or obtained against PGE by reason of                any                breach or failure of any warranty or agreement made by the Seller                in this                agreement. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | PGE                will not be liable to the Seller for damages of any kind in connection                with any Picture it may produce, distribute or exhibit, or for damages                for                any breach of this agreement (except failure to pay the money                consideration herein specified) occurring or accruing before PGE                has had                reasonable notice and opportunity to adjust or correct such                matters. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | All                rights, licenses and privileges herein granted to PGE are irrevocable                and                not subject to rescission, restraint or injunction under any                circumstances. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.  ** | **PROTECTION                OF RIGHTS GRANTED:**                The Seller grants to PGE the free and unrestricted right, but at                PGE’s own                cost and expense, to institute in the name and on behalf of the Seller,                or                the Seller and PGE jointly, any and all suits and proceedings at                law or in                equity, to enjoin and restrain any infringements of the rights herein                granted, and assigns and sets over to PGE any and all causes of action                relative to or based upon any such infringement, as well as any and                all                recoveries obtained thereon. The Seller will not compromise, settle                or in                any manner interfere with such litigation if brought; and PGE agrees                to                indemnify and hold the Seller harmless from any costs, expenses,                or                damages that the Seller may suffer as a result of any such suit or                proceeding. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9.  ** | **COPYRIGHT:**                Regarding the copyright in and to the Literary Property, the Seller                agrees                that: |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | The                Seller will prevent the Literary Property and any arrangements, revisions,                translations, novelizations, dramatizations or new versions thereof,                whether published or unpublished and whether copyrighted or not                copyrighted, from vesting in the public domain, and will take or                cause to                be taken any and all steps and proceedings required for copyright                or                similar protection in any and all countries in which the same may                be                published or offered for sale, insofar as such countries now or hereafter                provide for copyright or similar protection. Any contract or agreement                entered into by the Seller authorizing or permitting the publication                of                the Literary Property or any arrangements, revisions, translations,                novelizations, dramatizations or new versions thereof in any country                will                contain appropriate provisions requiring such publisher to comply                with all                the provisions of this clause. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page          - 125**

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**Pacific      Gold Entertainment Inc.**

| (b)   | Without                limiting the generality of the foregoing, if the Literary Property                or any                arrangement, revision, translation, novelizations, dramatization                or new                version thereof is published in the United States or in any other                country                in which registration is required for copyright or similar protection                in                accordance with the laws and regulations of such country, and the                Seller                further agrees to affix or cause to be affixed to each copy of the                Literary Property or any arrangement, revision, translation,                novelizations, dramatization or new version thereof which is published                or                offered for sale such notice or notices as may be required for copyright                or similar protection in any country in which such publication or                sale                occurs. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | At                least six months prior to the expiration of any copyright required                by this                provision for the protection of the Literary Property, the Seller                will                renew (or cause to be renewed) such copyright, as permitted by applicable                law, and any and all rights granted PGE hereunder will be deemed                granted                to PGE throughout the full period of such renewed copyright, without                the                payment of any additional consideration, it being agreed that the                consideration payable to the Seller under this agreement will be                deemed to                include full consideration for the grant of such rights to PGE throughout                the period of such renewed                copyright. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | If                the Literary Property, or any arrangement, revision, translation,                novelization, dramatization or new version thereof, will ever enter                the                public domain, then nothing contained in this agreement will impair                any                rights or privileges that the PGE might be entitled to as a member                of the                public; thus, the PGE may exercise any and all such rights and privileges                as though this agreement were not in existence. The rights granted                in this                agreement by the Seller to PGE, and the representations, warranties,                undertakings and agreements made under this agreement by the Seller,                will                endure in perpetuity and will be in addition to any rights, licenses,                privileges or property of PGE referred to in this sub clause                (d). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **10.  ** | **CREDIT                OBLIGATIONS:**                PGE will have the right to publish, advertise, announce and use in                any                manner or medium, the name, biography and photographs or likenesses                of the                Seller in connection with any exercise by PGE of its rights hereunder,                provided such use will not constitute an endorsement of any product                or                service. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**WGC      Agreement**

**Page          - 126**

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**Pacific      Gold Entertainment Inc.**

| **11.  ** | **RIGHT                OF FIRST NEGOTIATION:**                The term “**Right                of First Negotiation**”                means that if, after the expiration of an applicable time limitation,                the                Seller desires to dispose of or exercise a particular right reserved                to                the Seller herein (the “**Reserved                Right**”),                whether directly or indirectly, then the Seller will notify PGE in                writing                and immediately negotiate with PGE regarding such Reserved Right.                If,                after the expiration of 90 days following the receipt of such notice,                no                agreement has been reached, then the Seller may negotiate with third                parties regarding such Reserved Right subject to Clause 12                infra. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **12.  ** | **RIGHT                OF LAST REFUSAL:**                The term “**Right                of Last Refusal**”                means that if PGE and the Seller fail to reach an agreement pursuant                to                PGE’s right of first negotiation, and the Seller makes and/or receives                any                bona fide offer to license, lease and/or purchase the particular                Reserved                Right or any interest therein (a “**Third-Party                Offer**”),                and if the proposed purchase price and other material terms of a                Third-Party Offer are no more favorable to the Seller than the terms                which                were acceptable to PGE during the first negotiation period, the Seller                will notify PGE, by registered mail or telegram, if the Seller proposes                to                accept such Third-Party Offer, the name of the offerer, the proposed                purchase price, and other terms of such Third-Party Offer. During                the                period of 30 days after PGE’s receipt of such notice, PGE will have the                exclusive option to license, lease and/or purchase, as the case may                be,                the particular Reserved Right or interest referred to in such Third-Party                Offer, at the same purchase price and upon the same terms and conditions                as set forth in such notice. If PGE elects to exercise thereof by                registered mail or telegram within such thirty (30) day period, failing                which the Seller will be free to accept such Third-Party Offer; provided                that if any such proposed license, lease and/or sale is not consummated                with a third party within 90 days following the expiration of the                aforesaid 30 day period, PGE’s Right of Last Refusal will revive and will                apply to each and every further offer or offers at any time received                by                the Seller relating to the particular Reserved Right or any interest                therein; provided, further, that PGE’s option will continue in full force                and effect, upon all terms and conditions of this paragraph, so long                as                the Seller retains any rights, title or interest in or to the particular                Reserved Right. PGE’s Right of Last Refusal will inure to the benefit of                PGE, its successors and assigns, and will bind the Seller and the                Seller’s                heirs, successors and assigns. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **13.  ** | **NO                OBLIGATION TO PRODUCE:**                Nothing herein will be construed to obligate PGE to produce, distribute,                release, perform or exhibit any motion picture, television, theatrical                or                other production based upon, adapted from or suggested by the Literary                Property, in whole or in part, or otherwise to exercise, exploit                or make                any use of any rights, licenses, privileges or property granted herein                to                PGE. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **14.  ** | **ASSIGNMENT:**                PGE may assign and transfer this agreement or all or any part of                its                rights hereunder to any person, firm or corporation without limitation,                and this agreement will be binding upon and inure to the benefit                of the                parties hereto and their successors, representatives and assigns                forever. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **15.  ** | **NO                PUBLICITY:**                The Seller will not, without PGE’s prior written consent in each instance,                issue or authorize the issuance or publication of any new story or                publicity relating to (i) this agreement, (ii) the subject matter                or terms                hereof, or to any use by PGE, its successors, licensees and assigns,                and                (iii) any of the rights granted PGE                hereunder. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **16.  ** | **AGENT                COMMISSIONS:**                PGE will not be liable for any compensation or fee to any agent of                the                Seller in connection with this                Agreement. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **17.  ** | **ADDITIONAL                DOCUMENTATION:**                The Seller agrees to execute and procure any other and further instruments                necessary to transfer, convey, assign and copyright all rights in                the                Literary Property granted herein by the Seller to PGE in any country                throughout the world. If it will be necessary under the laws of any                country that copyright registration be acquired in the name of the                Seller,                PGE is authorized by the Seller to apply for said copyright registration                thereof; and, in such event, the Seller will and does assign and                transfer                the same unto PGE, subject to the rights in the Literary Property                reserved                hereunder by the Seller. The Seller further agrees, upon request,                to duly                execute, acknowledge, procure and deliver to PGE such short form                assignments as may be requested by PGE for the purpose of copyright                recordation in any country, or otherwise. If the Seller fails to                so                execute and deliver, or cause to be executed and delivered, the                assignments or other instruments herein referred to, PGE is irrevocably                granted the power coupled with an interest to execute such assignments                and                instruments in the name of the Seller and as the Seller’s                attorney-in-fact. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Pacific      Gold Entertainment Inc.**

| **18.  ** | **NOTICES:**                All notices to PGE under this agreement will be sent by Canada Post                registered mail, postage prepaid, or by telegram addressed to PGE                at #7 -                534 Cambie Street Vancouver BC V6B- 2N7, and all notices to the Seller                under this agreement will be sent by Canada Post registered mail,                postage                prepaid, or by telegram addressed to the Seller at #7 - 534 Cambie                Street,                Vancouver, British Columbia, V6B 2N7. The date of such deposit will                be                deemed to be the date of service of such                notice. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **19.  ** | **ARBITRATION:**                Any controversy or claim arising out of or in relation to this Agreement                or the validity, construction or performance of the Agreement, or                the                breach thereof, will be resolved by arbitration in accordance with                the                rules and procedures of the American Film Marketing Association,                as said                rules may be amended from time to time with rights of discovery if                requested from the arbitrator. Such rules and procedures are incorporated                and made a part of this Agreement by reference. If the American Film                Marketing Association will refuse to accept jurisdiction of such                dispute,                then the parties will arbitrate such matter before and in accordance                with                the rules of the Canadian Arbitration Association under its jurisdiction                in Vancouver, British Columbia before a single arbitrator familiar                with                entertainment law. The parties will have the right to engage in                pre-hearing discovery in connection with such arbitration proceedings                if                approved by the arbitrator. The parties hereto will abide by and                perform                any award rendered in any arbitration conducted pursuant hereto,                that any                court having jurisdiction thereof may issue a judgment based upon                such                award and that the prevailing party in such arbitration and/or                confirmation proceeding will be entitled to recover its reasonable                attorneys fees and expenses. The arbitration award will be final,                binding                and non-appealable. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 128**

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**Pacific      Gold Entertainment Inc.**

| **20.  ** | **MISCELLANEOUS:** |
|---------------------|--------------------|

| (a)   | Relationship:                This agreement between the parties does not constitute a joint venture                or                partnership of any kind. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Cumulative                Rights and Remedies: All rights, remedies, licenses, undertakings,                obligations, covenants, privileges and other property granted herein                will                be cumulative, and PGE may exercise or use any of them separately                or in                conjunction with any one or more of the                others. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Waiver:                A waiver by either party of any term or condition of this agreement                in any                instance will not be deemed or construed to be a waiver of such term                or                condition for the future, or any subsequent breach                thereof. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Severability:                If any provision of this agreement as applied to either party or                any                circumstances will be adjudged by a court to be void and unenforceable,                such will in no way affect any other provision of this agreement,                the                application of such provision in any other circumstance, or the validity                or enforceability of this                agreement. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Governing                Law: This agreement will be construed in accordance with the laws                of the                Province of British Columbia applicable to agreement which are executed                and fully performed within said                Province. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | Captions:                Captions are inserted for reference and convenience only and in no                way                define, limit or describe the scope of this agreement or intent of                any                provision. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | Entire                Understanding: This agreement contains the entire understanding of                the                parties relating to the subject matter, and this agreement cannot                be                changed except by written agreement executed by the party to be                bound. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Somnambulist      Imagery Inc.**

*/s/      Mark Tuit*

**Pacific      Gold Entertainment Inc.**

*/s/      Ron Loudoun*

**Page            - 129**

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**Pacific      Gold Entertainment Inc.**

**Work**

**Option      Agreement**

*/s/          Mark Tuit*

***/s/          Witness                    ***

**Page          - 130**

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**Exhibit      11**

**Page          - 131**

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**PACIFIC        GOLD ENTERTAINMENT INC**
**.**

**Code        of Ethics**

**Overview**

**Code**
**Employee**
**Employees**

**Objective**

**Standard        of Conduct**

**Page            - 132**

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**Obeying        the Law**

**Enforcement        of Code**

**Page            - 133**

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**Insider        Trading, Securities Compliance and Public Statements **

**Insider        Information**
**material**

**Financial        Reporting **

**Accuracy        of Records**

**Page            - 134**

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**Record        Keeping and Retention**

**Communicating        Accurate and Timely Information**

**Confidentiality**

**Health        and Safety**

**Page            - 135**

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**Declaration        of Interest**

**Conflicts        of Interest**

** **

**Fair        Competition**

**Page            - 136**

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**International        Trade **

**Government        Relations**

**Vendors,        Contractors, Consultants and Temporary Workers**

**Compliance        with the Code**

**Page            - 137**

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**Annual        Acknowledgement**

**Page            - 138**

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**Schedule        “A”**

**VALUES**

***FOCUS:***

***RESPECT:***

***EXCELLENCE:***

***ACCOUNTABILITY:***

***TEAMWORK:***

***INTEGRITY:***

***OPEN        COMMUNICATION:***

***POSITIVE        ATTITUDE:***

**Page            - 139**

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**Schedule        “B”**

**Reportable        Violations - Anonymous Reporting Program**

**Page            - 140**

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**Schedule        “C”**

**Acknowledgement        and Certification Statement**

*Signature:        ____________________________________________________________________________________*

**Page          - 141**

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**Exhibit        15.1**

**Page          - 142**

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**PACIFIC        GOLD ENTERTAINMENT INC**
**.**

**AUDIT        COMMITTEE CHARTER**

**Committee        Role**

**Committee        Membership**

**Committee        Operating Principles**

| **1.  ** | **Communications**                -                The chairperson and others on the committee will, to the extent                appropriate, have contact throughout the year with senior management,                other committee chairpersons, and other key committee advisors, external                and internal auditors, etc., as applicable, to strengthen the committee’s                knowledge of relevant current and prospective business                issues. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **2.  ** | **Committee                Education/Orientation**                -                The committee, with management, will develop and participate in a                process                for review of important financial and operating topics that present                potential significant risk to PGE Inc. Additionally, individual committee                members are encouraged to participate in relevant and appropriate                self-study education to assure understanding of the business and                environment in which PGE Inc. operates. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 143**

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| **3.  ** | **Annual                Plan**                -                The committee, with input from management and other key committee                advisors, will develop an annual plan responsive to the “primary committee                responsibilities” detailed herein. The annual plan will be reviewed and                approved by the Board of Directors. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **4.  ** | **Meeting                Agenda**                -                Committee meeting agendas will be the responsibility of the committee                chairperson, with input from committee members. It is expected that                the                chairperson would also ask for management and key committee advisors,                and                perhaps others, to participate in this                process. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **5.  ** | **Committee                Expectations and Information Needs**                -                The committee will communicate committee expectations and the nature,                timing, and extent of committee information needs to management,                internal                audit, and external parties, including external auditors. Written                materials, including key performance indicators and measures related                to                key business and financial risks will be received from management,                auditors, and others at least one week in advance of meeting dates.                Meeting conduct will assume members of the Board of Directors have                reviewed written materials in sufficient depth to participate in                committee/board dialogue. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **6.  ** | **External                Resources**                -The committee will be authorized to access internal and external                resources, as the committee requires, to carry out its                responsibilities. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **7.  ** | **Committee                Meeting Attendees**                -                The committee will request members of management, counsel, internal                audit,                and external auditors, as applicable, to participate in committee                meetings, as necessary, to carry out the committee responsibilities.                Periodically and at least annually, the committee will meet in private                session with only the committee members. It will be understood that                either                internal or external auditors, or counsel, may, at any time, request                a                meeting with the audit committee or committee chairperson with or                without                management attendance. In any case, the committee will meet in executive                session separately with internal and external auditors, at least                annually. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **8.  ** | **Reporting                to the Board of Directors**                -                The committee, through the committee chairperson, will report                periodically, as deemed necessary, but at least semi-annually, to                the                Board of Directors. In addition, summarized minutes from committee                meetings, separately identifying monitoring activities from approvals,                will be available to each board member at least one week prior to                the                subsequent Board of Directors’ meeting. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **9.  ** | **Committee                Self Assessment**                -                The committee will review, discuss, and assess its own performance                as well                as the committee role and responsibilities, seeking input from senior                management, the Board of Directors, and others. Changes in role and/or                responsibilities, if any, will be recommended to the Board of Directors                for approval. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Meeting        Frequency**

**Reporting        to Shareholders**

**Page            - 144**

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**Committee’s        Relationship with External and Internal Auditors**

| 1.   | The                external auditors, in their capacity as independent public accountants,                will be responsible to the Board of Directors and the audit committee                as                representatives of the shareholders. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.   | As                the external auditors review financial reports, they will be reporting                to                the audit committee. They will report all relevant issues to the                committee                responsive to agreed-on committee expectations. In executing its                oversight                role, the Board of Directors or committee should review the work                of                external auditors. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.   | The                committee will annually review the performance (effectiveness,                objectivity, and independence) of the external and internal auditors.                The                committee will ensure receipt of a formal written statement from                the                external auditors consistent with standards set by the Independent                Standards Board and the Securities and Exchange Commission. Additionally,                the committee will discuss with the auditor relationships or services                that                may affect auditor objectivity or independence. If the committee                is not                satisfied with the auditors’ assurances of independence, it will take or                recommend to the Board of Directors appropriate action to ensure                the                independence of the external auditor. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.   | The                internal audit function will be responsible to the Board of Directors                through the committee. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------|
| 5.   | If                either the internal or the external auditors identify significant                issues                relative to the overall board responsibility that have been communicated                to management but, in their judgment, have not been adequately addressed,                they should communicate these issues to the committee                chairperson. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **6.  ** | Changes                in the directors of internal audit or corporate compliance will be                subject                to committee approval*.* |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

**Primary        Committee Responsibilities**

**Monitor        Financial Reporting and Risk Control Related Matters**

| **1.  ** | **Risk                Management**                -                PGE Inc.’s business risk management process, including the adequacy of PGE                Inc.’s overall control environment and controls in selected areas                representing significant financial and business                risk. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **2.  ** | **Annual                Reports and Other Major Regulatory Filings**                -                All major financial reports in advance of filings or                distribution. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **3.  ** | **Internal                Controls and Regulatory Compliance**                -                PGE Inc.’s system of internal controls for detecting accounting and                reporting financial errors, fraud and defalcations, legal violations,                and                noncompliance with the corporate code of                conduct. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **4.  ** | **Internal                Audit Responsibilities**                -                The annual audit plan and the process used to develop the plan. Status                of                activities, significant findings, recommendations, and management’s                response. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Page            - 145**

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| **5.  ** | **Regulatory                Examinations**                -                Securities and Exchange Commission inquiries and the results of                examinations by other regulatory authorities in terms of important                findings, recommendations, and management’s                response. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **6.  ** | **External                Audit Responsibilities**                -                Auditor independence and the overall scope and focus of the annual/interim                audit, including the scope and level of involvement with unaudited                quarterly or other interim-period                information. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **7.  ** | **Financial                Reporting and Controls**                -                Key financial statement issues and risks, their impact or potential                effect                on reported financial information, the processes used by management                to                address such matters, related auditor views, and the basis for audit                conclusions. Important conclusions on interim and/or year-end audit                work                in advance of the public release of                financials. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **8.  ** | **Auditor                Recommendations**                -                Important internal and external auditor recommendations on financial                reporting, controls, other matters, and management’s response. The views                of management and auditors on the overall quality of annual and interim                financial reporting. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.   | the                code of ethical conduct, |
|----------------|---------------------------------------------|
| 2.   | changes                in important accounting principles and the application thereof in                both                interim and annual financial reports, |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.   | significant                conflicts of interest and related-party                transactions, |
|----------------|-------------------------------------------------------------------------------------------------|
| 4.   | external                auditor performance and changes in external audit firm (subject to                ratification by the Board of Directors), |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.   | internal                auditor performance and changes in internal audit leadership and/or                key                financial management, |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.   | procedures                for whistle blowers, |
|----------------|------------------------------------------------|
| 7.   | pre-approve                allowable services to be provided by the auditor,                and |
|----------------|-------------------------------------------------------------------------------------------------|
| 8.   | retention                of complaints. |
|----------------|-----------------------------------------|

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