Exhibit 10.1

                            2005 EMPLOYMENT AGREEMENT
                         BETWEEN NATIONAL LAMPOON, INC.
                                       AND
                                DANIEL S. LAIKIN

         This 2005 EMPLOYMENT  AGREEMENT (the  "Agreement"),  is entered into by
and between National  Lampoon,  Inc., a California  Corporation (the "Company"),
and Daniel S. Laikin ("Executive").

A G R E E M E N T

         NOW,  THEREFORE,  in  consideration  of the  foregoing  and the  mutual
covenants herein contained, the parties hereto agree as follows:

         1. EMPLOYMENT

         (a) Executive  Employment.  The Company hereby employs  Executive,  and
Executive hereby agrees to perform services for the Company for and
during the term  hereof,  and to serve as CEO of the  Company.  Executive  shall
perform  such  duties  and have  such  responsibilities  as are set forth in the
Bylaws of the Company and as may from time to time be assigned to  Executive  by
the Board.  The Executive  shall report solely to the Board and shall be subject
to direction  solely from the Board in the performance of his duties  hereunder.
For  purposes  of  this  Agreement,   unless  the  context  otherwise  requires,
references  to the  business  of  "the  Company"  shall  include  any  successor
corporation or corporations  which may be the eventual  successor to the present
or future business and/or assets of the Company.

         (b) Duties. Throughout the period that the Executive is employed by the
Company hereunder (the "Employment  Term"),  Executive shall devote  substantial
time,  energy and skill during normal business hours to the business and affairs
of  the  Company,  except  for  vacation  periods  and  periods  of  illness  or
incapacity, but nothing in this Agreement shall preclude Executive from devoting
reasonable  amounts of time to serve as a director or member of a  committee  of
any organization involving no material and substantial conflict of interest with
the Company or from pursuing personal  investments  provided that Employee shall
not,  directly  or  indirectly,  as  employee,   consultant,   agent,  investor,
principal,  partner,  stockholder  (except  as a holder  of less  that 1% of the
issued and outstanding stock or debt of a publicly held  corporation),  officer,
director or otherwise,  engage or participate  in any business  similar to or in
competition  in any manner  whatsoever  with the  business  as now or  hereafter
conducted.

         (c) Place of  Employment.  The Company shall not change the location of
the principal office of the Company or Executive's principal place of employment
during the Employment Term of this Agreement  without the prior written approval
of Executive.  The Executive shall not be required to travel from Los Angeles on

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business  for  unreasonable  periods  of time or on an  unreasonable  number  of
business trips.

         2.  COMPENSATION.  The Company  shall  provide to Executive and pay the
following forms of compensation:

         (a) Base Salary.

                  (i) During the Employment Term, the Company shall pay to
Executive an annual  salary (the "Base  Salary") for the services to be rendered
by him  hereunder,  including  all  services  to be  rendered  as an  officer or
employee  of the Company or any of its direct or  indirect  subsidiaries,  which
shall be Two Hundred,  Fifty Thousand  Dollars  ($250,000) per year. Such salary
shall be payable in cash in  semi-monthly  payments  on the 1st and 15th days of
each month.  Executive's Base Salary as in effect from time to time shall not be
subject to reduction without Executive's prior written consent.

                  (ii)  Adjustments to Base Salary.  Executive's Base Salary may
         be increased (but not decreased) by the Board in its sole discretion.

         (b) Stock  Options.  On each  anniversary of the effective date of this
Agreement,  the Board  (acting  solely by  "outside  directors"  as such term is
defined  in the  regulations  regarding  performance  based  compensation  under
Section 162(m) of the Internal Revenue Code of 1986, as amended,  shall grant to
Executive  options to purchase  100,000 shares of the Company's Common Stock, no
par value (the "Common Stock") on the following terms and conditions:

                  (i) The  options  shall be granted  under and  pursuant to the
Company's Amended and Restated 1999 Stock Option,  Deferred Stock and Restricted
Stock Plan (the "Plan").

                  (ii) The  exercise  price of each option shall be equal to (A)
the average of the last reported sale price for one share of Common Stock during
the five (5) business days preceding the date of grant as reported on the NASDAQ
Automated  Quotation  System;  or (B) if (A) is not  applicable,  then  the fair
market value of one share of the Common  Stock,  as  determined in good faith by
the Board.

                  (iii) All stock options granted to Executive  pursuant to this
Section  2(b):  (A) shall be  immediately  exercisable;  (B) shall expire to the
extent not  exercised  prior to the close of  business on the day ten (10) years
from the date of grant;  and (C) shall be governed by the Plan and an  agreement
substantially  in the form of the agreement  attached hereto as Exhibit A, or as
otherwise agreed upon by the parties.  The Company shall use its best efforts to
assure that all options are granted to  Executive  under the Plan,  or a similar
plan later adopted by the Company,  which satisfies the conditions of Rule 16b-3
of the Securities and Exchange Commission or any successor thereto.

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                  (iv) In the event of a change in the  number of the  Company's
shares of Common Stock  outstanding  caused by an event listed in Section 3.3 of
the Plan, the number of shares subject to options granted after the date of such
event shall be adjusted in  accordance  with the  procedures  contained  in such
Section  and the number of options to be granted to  Executive  pursuant to this
Section 2(b) shall be correspondingly adjusted.

                  (v) Notwithstanding the foregoing,  if and to the extent that,
in the opinion of  counsel,  the  Company is unable to grant the  Executive  any
stock  options due  Executive  pursuant to this  Section 2(b) because such grant
would  violate  any  state or  federal  securities  law,  regulation,  permit or
approval  obtained by the  Company,  then the Company  shall to the extent it is
able to do so without violation of the foregoing, at the time such stock options
would otherwise be granted to Executive hereunder; agree with the Executive on a
reasonably equivalent,  alternative form of compensation,  with the agreement of
neither party to be unreasonably withheld.

                  (vi) The Board may grant additional stock options to Executive
in its sole discretion.

         (c) Vacation.  During the Employment Term,  Executive shall be entitled
to four (4) weeks annual paid vacation to be taken at such times as are mutually
satisfactory to Executive and to the Company.

         (d) Other  Benefits.  During the  Employment  Term,  the Company  shall
provide  Executive with benefits  substantially  similar to those enjoyed by the
former  CEO under  any of the  Company's  vacation,  pension,  retirement,  life
insurance,  medical,  health and accident,  or  disability  plans or policies in
which the former CEO was participating and the Company shall not take any action
which would  directly or  indirectly  materially  reduce any of such benefits or
deprive  Executive of any material fringe benefit enjoyed by the CEO immediately
prior to the date of this Agreement. During the Employment Term, Executive shall
also  be  entitled  to  participate  in or  receive  benefits  under  all of the
Company's  employee benefit plans,  policies,  practices and  arrangements  made
available by the Company in the future to its executive employees subject to and
on a basis consistent with the terms,  conditions and overall  administration of
such  benefit  plans  and the  terms of this  Agreement.  Without  limiting  the
foregoing,  during the Employment Term, the Company shall provide Executive with
support  services  comparable  to those  provided to the former  CEO,  including
without  limitation the exclusive use of an appropriate  office and the services
of a  secretary  of his  choice.  At its  discretion,  the  Board  may  grant to
Executive  benefits  under the  Company's  existing  employee  benefit  plans in
addition to those presently enjoyed by Executive or specified herein, based upon
Executive's contributions to the success of the Company.

         (e) Bonus Program.  Compensation for position will also include a bonus
program.

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                  (i) The bonus program will be 50% paid in cash and 50% paid in
stock.

                  (ii) The bonus program will be paid out on a bi-annual  basis.
The targets for the program will be mutually agreed upon between Bennett and the
Compensation  Committee of the Board of Directors.  The following  chart depicts
term, amount of payout and timing of payment.

                 --------------------------------------------------
                     Period          Amount         Payout
                 --------------------------------------------------
                   Aug - Jan        $50,000          Feb
                 --------------------------------------------------
                   Feb - Jul        $50,000          Aug
                 --------------------------------------------------

                 --------------------------------------------------

                 --------------------------------------------------

                  (iii) The bonus  program  will also  include a  provision  for
performance  that exceeds  expectations.  For performance in meeting each target
above 100% the  company  will pay out the same  percentage  as a  percentage  of
target amount ie 150% achievement  equates to a payment of $75,000 split equally
between cash and stock.

         3. EXPENSES.  Executive  shall be reimbursed for expenses  incurred for
business  purposes  by  the  Company  upon  presenting   satisfactory   vouchers
evidencing such expenses. Executive shall be provided with and the Company shall
pay all insurance,  maintenance,  license, registration and operational expenses
for an automobile of his choice (luxury class).

4.       TERMINATION.

         (a)  Term.  This  Agreement  shall be in  effect  from the date  hereof
through  a  period  ending  three  years  after  the  date  hereof,   and  shall
automatically be extended for successive three year terms thereafter  unless and
until the Board of Directors  elects not to renew this  Agreement  and cause the
Company to so notify Executive in writing of such nonrenewal at least sixty (90)
days prior to the end of the  then-current  three-year term of this Agreement or
unless  earlier  terminated in accordance  with this Section 4 (the  "Employment
Term");  provided,  however,  for purposes of deciding not to renew  Executive's
employment  for an  additional  term  hereunder a majority  of the  "Independent
Director" (as defined in the Voting  Agreement) and the "Series B Directors" (as
defined in the Voting  Agreement),  acting as a group,  shall make that decision
for the Board of Directors, and the remaining Directors shall not participate in
such decision, notwithstanding any provision of the Bylaws of the Company to the
contrary, and the Board of Directors shall abide by, and act in accordance with,
the decision of such group.

         (b) Notice of Termination.  "Notice of Termination"  shall be a written
notice  terminating  Executive's  employment  hereunder which shall indicate the
specific termination provision in this Agreement relied upon and shall set forth

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in reasonable detail the facts and circumstances  claimed to provide a basis for
termination of employment under the provision so indicated.

         (c) Death.  This Agreement shall be terminated  automatically  upon the
death of Executive.

         (d) Disability.  This Agreement shall be terminated  automatically upon
the  permanent  disability  of  Executive.  For  purposes of this  Agreement,  a
permanent disability shall be deemed to have occurred if (i) Executive is unable
to perform his material duties hereunder for a period of ninety (90) consecutive
days,  or one hundred  eighty (180) days in any one (1) year,  on account of any
physical  or mental  disability;  or (ii) a licensed  physician  selected by the
Company and  approved by  Executive  (or his closest  relative if  Executive  is
unable to act),  which  approval  shall not be  unreasonably  withheld,  makes a
medical  determination  of  physical  or medical  disability  or  incapacity  of
Executive.

         (e)  Termination  by the  Company  For  Cause.  This  Agreement  may be
terminated  voluntarily  by the Company  immediately at any time during its term
for "Cause" which shall mean (i) the willful and continued  failure by Executive
to  substantially  perform his duties with the Company in good faith (other than
any such  failure  resulting  from his  incapacity  due to  physical  or  mental
illness),  after a demand for substantial performance is delivered to him by the
Board which specifically  identifies the manner in which the Board believes that
Executive has not substantially  performed his duties in good faith; or (ii) the
willful  engaging by Executive in conduct which is  demonstrably  and materially
injurious to the Company,  monetarily or otherwise. For purposes of this Section
4(e),  no act, or failure to act, on the  Executive's  part shall be  considered
"willful"  unless done,  or omitted to be done,  by him in bad faith and without
reasonable  belief that his action or omission  was in the best  interest of the
Company.  Notwithstanding  the foregoing,  Executive shall not be deemed to have
been  terminated  for cause unless and until there shall have been  delivered to
him a Notice of  Termination  and a copy of a  resolution  duly  adopted  by the
affirmative  vote of at least  five of the six  members  of the Board  excluding
Executive  at a meeting  of the Board  called and held for such  purpose  (after
reasonable written notice to Executive,  not less than 10 days prior to the date
of such  meeting,  detailing the alleged  basis for such  determination;  and an
opportunity  for Executive,  together with his counsel,  to be heard before such
meeting),  finding that in the good faith  opinion of the Board,  Executive  was
guilty of conduct set forth above in clause (i) or (ii) of the first sentence of
this Section 4(e) and specifying the particulars  thereof in detail. Any dispute
concerning  a  determination  of  "Cause"  pursuant  hereto  shall be subject to
arbitration pursuant to Section 9(c) hereof.

         (f) Date of Termination. Subject to Section 4(g), "Date of Termination"
means (i) if employment is terminated  upon the death of Executive,  the date of
such death;  (ii) if employment is terminated  upon the permanent  disability of
Executive as provided for in Section 4(d), on the date  permanent  disability is
first established pursuant to that Section; or (iii) if employment is terminated
pursuant to Section 4(e),  the date  specified in the second to last sentence of
Section 4(e).

<PAGE>

         (g)  Notice  of  Dispute.  Within  fifteen  (15) days  after  Notice of
Termination is given  pursuant to Section 4(e), the party  receiving such Notice
of Termination  may notify the other party that a dispute exists  concerning the
termination ("Notice of Dispute"), and the Date of Termination shall be the date
on which the dispute is finally resolved,  either by mutual written agreement of
the parties,  by a binding  arbitration award, or by a final judgment,  order or
decree  of a court of  competent  jurisdiction  (the time for  appeal  therefrom
having expired and no appeal having been perfected); and provided, however, that
the Date of  Termination  shall be extended  by a Notice of Dispute  only if the
party  delivering  such  notice  pursues the  resolution  of such  dispute  with
reasonable  diligence.  Notwithstanding the pendency of a Notice of Dispute, the
Company will continue to pay Executive his full  compensation in effect when the
notice giving rise to the dispute was given and continue him as a participant in
all  compensation,   bonus,   benefit  and  insurance  plans  in  which  he  was
participating  when the notice  giving rise to the dispute was given,  until the
dispute is finally resolved.  Notwithstanding  anything  expressed or implied to
the  contrary in this Section  4(i),  the failure of a party to give a Notice of
Dispute or to pursue a dispute with reasonable diligence shall not foreclose the
party from disputing such termination or otherwise pursing any rights to damages
or other remedies to which the party may be entitled at law.

         5.  COMPENSATION  AND BENEFITS  UPON  CERTAIN  EARLY  TERMINATIONS.  If
Executive's  employment  shall be  terminated  by the Company  for Cause,  or by
Executive,  or upon the death or  disability  of  Executive,  in addition to any
benefits  mandated by law, the Company  shall pay Executive his full Base Salary
in effect at the Date of Termination  and other benefits to which he is entitled
through  the Date of  Termination  at the rate in effect  at the time  Notice of
Termination is given.

         6. SUCCESSORS.  The Company will require any successor  (whether direct
or  indirect,  by  purchase,  merger,  consolidation  or  otherwise)  to  all or
substantially  all of the  business  and/or  assets of the Company to  expressly
assume and agree to perform  this  Agreement  in the same manner and to the same
extent  that the Company  would be required to perform it if no such  succession
had taken place.

         7. REGISTRATION RIGHTS.

                  (a) The  Company  shall  register  all  options  of  Executive
(regardless  of whether such options have been granted  under this  Agreement or
otherwise),  and the  Common  Stock  with  respect  to which  such  options  are
exercisable,  as soon as practicable after issuance on Form S-8 or any successor
form  thereto  pursuant  to the  rules and  regulations  of the  Securities  and
Exchange Commission.

         8. INDEMNITY.  Concurrently  with the execution of this Agreement,  the
Company and the  Executive  shall execute and deliver to each other an Indemnity
Agreement  in the form  attached  as Exhibit "B"  hereto.  The  delivery of such

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agreement by the Company is in consideration for the performance by Executive of
his obligations under this Agreement.

         9.       MISCELLANEOUS.

         (a)  Severability.  The provisions of this Agreement shall be severable
and if any provision hereof shall be judged to be invalid, such invalidity shall
not affect any other portion of this Agreement, which can be given effect.

         (b) Notices.  All notices,  requests,  demands and other communications
hereunder shall be in writing and shall be duly given if actually received or if
duly mailed,  registered or certified mail,  return receipt  requested,  postage
prepaid:

                  If to the Company, to:
                  National Lampoon, Inc.
                  10850 Wilshire Blvd., Suite 1000
                  Los Angeles, CA 90024

                  If to Executive, to:
                  Daniel S. Laikin
                  9920 Towne Road
                  Carmel, IN 46032

or to such other  address as either  party may  furnish to the other in writing,
making specific reference to this Section 9(b).

         (c) Arbitration. In the event that there shall be a dispute between the
parties hereto  concerning the meaning,  application or  interpretation  of this
Agreement or of the legal  relations  connected  therewith,  or  concerning  any
alleged  breach  hereof,  or to enforce the terms  hereof or to seek  damages in
respect of a breach hereof or otherwise relating hereto, then such dispute shall
be referred to the American  Arbitration  Association for  arbitration  before a
single  arbitration  in Los Angeles,  California,  according to the rules of the
arbitrator  appointed by said Association;  and the decision of such Association
shall be final and binding on the parties hereto.

         (d) Rights to Work Product.  Executive grants to the Company all rights
of every kind whatsoever,  exclusively and  perpetually,  in and to all services
performed  by him for the Company  hereunder,  during the term  hereof,  and the
results and  proceeds  thereof,  including  all of  Executive's  creative  works
including without  limitation ideas,  concepts,  formats,  themes,  screenplays,
and/or  adaptations  of the  foregoing,  whether or not reduced to writing,  and
whether or not  otherwise  protected by  copyrights,  or rights  thereto,  or at
common law or otherwise during the term hereof. Executive agrees that all films,
film rights,  videotapes,  distribution rights,  literary material,  photoplays,
music rights, ideas for photoplays,  scripts and similar rights,  presentations,
ideas, formats and all other material  (collectively  referred to as "Material")
submitted to him by third parties  during the term of his  employment  hereunder

<PAGE>

shall be deemed to be submitted to the Company and upon the  termination  of his
employment  hereunder Executive shall forthwith deliver all such Material in his
possession, if any, to the Company.

         (e)  Confidentiality.  Without the express prior written consent of the
Company,  Executive  shall not,  except in the ordinary course of performing his
duties  for the  Company,  disclose  or make  available  to anyone  outside  the
Company,  any  confidential  or  proprietary  information  of  the  Company  its
subsidiaries,   or  affiliated  corporations  or  entities  including,   without
limitation,  trade secrets, customer lists, financial data, programming plans or
other  information  not generally  known to any  competitor of the Company,  its
subsidiaries  or affiliated  corporations or entities.  Upon  termination of his
employment,  Executive  shall  deliver  to  the  Company  all  documents  in his
possession   containing  any  such  confidential  or  proprietary   information;
provided, however, that Employee shall be entitled to retain a copy (but not the
original) of his personal  correspondence  file. The agreements of Executive set
forth in this Section 9(e) shall survive the end of the Employment Term.


         (f) Attorneys' Fees. In the event of any dispute  hereunder,  or in the
event of any action to enforce the terms and provisions of this  Agreement,  the
prevailing  party  shall be entitled  to recover  from the other his  reasonable
attorneys'  fees and  disbursements  and  other  costs  incurred  in  connection
therewith.

         (g) Assignment.  Neither this Agreement nor any right or interest under
this Agreement  shall be assignable by Executive.  This  Agreement  shall not be
assignable by the Company without the prior written consent of Executive.

         (h)   Entire   Agreement.   This   Agreement   sets  forth  the  entire
understanding   and  agreement  of  the  parties  with  respect  to  Executive's
employment by the Company on and after the date hereof.  Said Agreement shall be
binding upon the heirs,  administrators,  successors  and assigns of the parties
hereto.  There  are  no  oral  agreements,  modifications,   representations  or
understandings  relating to  Executive's  employment by the Company on and after
the date hereof which are not  specifically  set forth herein.  All negotiations
regarding Executive's employment by the Company on and after the date hereof are
merged into this Agreement.

         (i) Governing Law. This Agreement and each of the provisions  hereunder
shall be interpreted according to and governed by the internal laws of the State
of California regardless of the principles of choice of law of that or any other
jurisdiction.  The parties  hereto submit to the  jurisdiction  of the state and
federal courts of the State of California.

         (j) No  Mitigation  of  Damages.  Executive  shall not be  required  to
mitigate  the amount of any payment  provided  for in Sections 2 or 3 by seeking
other  employment or  otherwise,  nor shall the amount of any payment or benefit
provided for in Sections 2 or 3 be reduced by any compensation  earned by him as
the result of employment by another employer,  or by retirement benefits,  after
the Date of  Termination.  The  Company  shall not be  entitled to any rights to
offset, mitigate or otherwise reduce the amounts owing to Executive by virtue of
Sections 2 or 3 with respect to any rights,  claims or damages which the Company
may have against Executive.

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IN WITNESS WHEREOF,  the Company has caused this Agreement to be executed by its
officer thereunto duly authorized,  and Executive has executed this Agreement as
of the day and year first above written.


"The Company"
NATIONAL LAMPOON, INC.


By:
    ----------------------------
    James P. Jimirro, Chairman



"Executive"

DANIEL S. LAIKIN


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