Document:

CORPORATE OFFICER EMPLOYMENT AGREEMENT

     THIS  EMPLOYMENT  AGREEMENT  is made between MAGELLAN FILMED ENTERTAINMENT,
INC.  as  Employer  and  PATRICK  F.  CHARLES,  as an officer of MAGELLAN FILMED
ENTERTAINMENT, INC., effective October 1, 2000. The terms and conditions of this
Agreement  are  stated  below.

I.     EMPLOYMENT  PROVISION.
       ----------------------

1.)     EMPLOYMENT  POSITIONS;  RESPONSIBILITY,  DUTIES  AND  AUTHORITY.  This
        ----------------------------------------------------------------
Corporate Officer Employment Agreement is made and entered into between MAGELLAN
FILMED  ENTERTAINMENT, INC., a corporation organized under the laws of the State
of Nevada, hereinafter referred to as "Corporation" or "Employer" and PATRICK F.
CHARLES,  President  and Chief Executive Officer of the Corporation, hereinafter
referred  to  as  "Charles" or "Employee" The Corporation and Charles each agree
that  the  Corporation shall employ Charles as the President and Chief Executive
Officer  and Charles shall perform the responsibilities and duties of, and shall
have the full authority of the officer position of President and Chief Executive
Officer  of the Corporation for the term stated in Section II of this Agreement,
unless  sooner  terminated  pursuant  to  the provisions of Section VIII of this
Agreement.

2.)     RESPONSIBILITIES,  DUTIES  AND  AUTHORITY OF CHARLES. Charles shall have
        -----------------------------------------------------
such  responsibilities  and duties and authority as determined from time to time
by  the  Board  of  Directors  of  the Corporation, as provided in the corporate
bylaws.

II.     TERM  OF  THIS  AGREEMENT
        -------------------------

This  Agreement  shall have a term of three (3) years beginning October 1, 2000,
and  shall  end  September  30,  2003,  unless sooner terminated pursuant to the
provisions  of  Section  VIII  of  this  Agreement.

III.     ALLOCATION  OF  TIME
         --------------------

Charles  shall devote as much time, in his judgment, as necessary to perform his
duties  and  responsibilities  described  in  Section  I(2)  of  this Agreement.
Charles  may  engage for his own account, or for the account of others, in other
business  ventures  for  which  the  Corporation  shall  not  be entitled to any
interest.

                                      139
<PAGE>

IV.     COMPENSATION.
        -------------

1.)     BASIC  SALARY.  As  consideration  for  all  services  to be rendered by
        --------------
Charles  to  the  Corporation, Charles shall be paid the following listed annual
salary  amounts  per  year  as  follows:

     First  Year     --     10/01/00  -  09/30/01     --     $120,000.00
     Second  Year    --     10/01/01  -  09/30/02     --     $150,000.00
     Third  Year     --     10/01/02  -  09/30/03     --     $180,000.00

2.)     REGULAR ANNUAL BONUSES. Each year Charles shall be entitled to an annual
        -----------------------
bonus based on cash flow from operations of the Corporation and its subsidiaries
at  the  end  of  each fiscal year before deduction of corporate income taxes as
determined  by  Generally Accepted Accounting Principles ("GAAP") for the fiscal
years  ending  December  31,  2001, December 31, 2002 and December 31, 2003 even
though  the bonus due December 31, 2003 shall come three months after expiration
of  this  Agreement.  The  bonus  shall  be  calculated  as  follows:

                                  Bonus % Applicable
                     Pre-Tax Operating     To Each Layer or
                          Cash Flow     Portion Thereof
                          ---------     ---------------
                        First $250,000        5%
                         Next $250,000        4%
                         Next $250,000        3%
                         Next $250,000        2%
                  Amounts over $1 million     1%

In  the  event  this  Agreement is terminated as provided for in Section VIII of
this  Agreement  "Termination of Charles' Employment", Charles shall be entitled
to  a  bonus  through  the  Effective Date of Charles' Employment Termination as
defined  in  Section VIII (3) of this Agreement.  Such "Termination Bonus" shall
be  calculated on the same basis as outlined in Section IV (2) of this Agreement
and  shall  be  due  and  payable  on  the Effective Date of Charles' Employment
Termination  as  set  forth  in  Section  VIII  (3)  of  this  Agreement.

3.)     PAYMENTS  OF  SALARY  AND  BONUSES.
        -----------------------------------

A.     SALARY. The annual salary provided for in Section IV (1) shall be due and
       -------
payable  in  monthly  installments  by  the Corporation at the beginning of each
month  on  the  first  business day of each month, which shall be established by
this  Agreement  as  the  regular  payday.
                                      140
<PAGE>

B.     BONUS.  The  annual  bonus provided for in Section IV(2) shall be due and
       ------
owing  as  of  the  last  day  of the Corporate fiscal year and shall be payable
within  forty-five  (45)  days  from  the last day of the corporate fiscal year.

C.     ACCRUALS  OF  UNPAID  SALARY  AND  BONUSES--WHEN  PAID.
       -------------------------------------------------------

(1.)     SALARIES.  In the event the Corporation's cash position is insufficient
         ---------
to pay salary and bonuses when due under this Agreement, any salary payments and
bonus  payments not paid by the Corporation when due shall accrue as a corporate
debt  payable  to  Charles,  and  shall  be  paid  as  soon  as  possible by the
Corporation and in any event, accrued salary shall be paid to the fullest extent
possible  whenever a payroll is disbursed to other employees of the Corporation.

(2.)     BONUSES.  Any  bonus not paid when due shall accrue as a corporate debt
         --------
payable to Charles and shall be paid to the fullest extent possible whenever any
bonus  is  disbursed  to  other  employees  of  the  Corporation.

(3.)     DEDUCTIONS  FROM  COMPENSATION.  Corporation  shall  have the right and
         ------------------------------
responsibility to deduct all federal, state and local government taxes and other
charges  as  are  now  in  effect,  if any, or which may hereafter be enacted or
required  by  applicable  government  laws  and regulations, if any, required as
deductions  from  compensation  of  Charles  as  an  employee.

(4.)     STOCK  AS  PAYMENT.  Charles  may  elect in his absolute discretion, to
         -------------------
receive common shares of the Corporation in payment of salary amounts, in excess
of $10,000 each month and/or for any salary payments and bonus payments not paid
by  the  Corporation when due and accrued as a corporate debt payable to Charles
as  described  in  Section IV (3) C (1) and (2) of this Agreement.  The value of
any  shares  issued  by  the  Corporation under this provision of this Agreement
shall  be based on the closing bid price of the common shares as reported on the
OTC  Bulletin Board or other generally recognized listing agency on the date the
Corporation  receives  notice from Charles.  In the event the Corporation issues
restricted  shares  under  this  provision  such published per share trade price
shall  be  discounted  forty  percent  (40%).

(5.)     PAST  DUE UNPAID SALARY AND BONUSES.  Charles and the Corporation agree
         -----------------------------------
to  negotiate  in good faith settlement of any accrued unpaid salary and bonuses
provided for in Section IV (3) C (1) and (2) of this Agreement.  Charles and the
Corporation  further  agree  that  any  salary and bonus payments due and unpaid

                                      141
<PAGE>

which remain unpaid for a period of 120 days from the date such payment was due,
without  a  settlement  mutually  agreeable  to  the parties, shall constitute a
breach  of  this  Agreement.  Remedies  available in the event of Breach of this
Agreement  are  set  forth  in  Section  XIII  of  this  Agreement.

V.     EMPLOYMENT  BENEFITS  IN  ADDITION  TO  COMPENSATION.
       -----------------------------------------------------

1.)     PARTICIPATION  IN  EXISTING  COMPANY  BENEFIT  PROGRAMS.
        --------------------------------------------------------

A.     MEDICAL  AND  HEALTH  CARE  BENEFIT  PROGRAM.  Charles,  as  an executive
       ---------------------------------------------
employee  shall  be entitled to receive and shall receive all medical and health
care  benefits  provided  by  Employer to its executive employees. Such benefits
shall  be  paid for by the Employer for Charles and for Charles's dependents, if
any, on the terms and provisions provided in the medical and health care benefit
plan;  however, if for any reason Charles cannot qualify for the current medical
and  health  care  benefits or if the Corporation has no such plan, then Charles
shall  be  entitled  to  obtain  medical  and health care benefits coverage from
whatever  source is available and the Employer shall pay the premium charges for
that  coverage  as  an  executive  employee  benefit  for  Charles.

B.     VACATION  AND HOLIDAY BENEFITS.  Charles shall be entitled to have a paid
       ------------------------------
vacation  for  forty-five  (45)  days each calendar year; plus all paid holidays
observed  by  the Employer.  Charles shall use reasonable care in scheduling the
vacation  time so as to not interfere unreasonably with Employer's business, and
Charles'  performance  of  his  responsibilities  and  duties.

2.)     STOCK  OPTIONS.The  Corporation  hereby  grants  Charles  the  option to
        ---------------
purchase  up  to  1,000,000  common shares of the Corporation's capital stock at
$0.10  per  share  exercisable  at  any  time  and  expiring five years from the
effective  date  of this Agreement.  These options shall not be cancelled in the
event  this  Employment  Agreement  expires  or  is  otherwise terminated.  This
provision  shall survive the term of this Agreement.  The Corporation intends to
adopt  a Stock Incentive Plan.  Except as otherwise provided herein, these stock
options  shall  be  governed  by  the  terms  and  conditions  set  forth in the
Corporation's  Stock  Incentive  Plan.

3.)     MEMBERSHIP  IN  SOCIAL  AND  ATHLETIC CLUB. Charles shall be entitled to
        -------------------------------------------
membership  in  the Washington Athletic Club ("WAC") or other club comparable to
that  of  the  WAC during the term of this Agreement.  The Corporation shall pay
all regular dues.  Other charges to the account shall be paid to the extent that
such charges relate to athletic and/or exercise programs designed to maintain or
improve  the  well-being  of Charles and expenses such as business meetings etc.
relating  to  Charles's  performance  as  an  officer  of  the  Corporation.

4.)     PARTICIPATION  IN  OTHER EMPLOYMENT BENEFITS.  Charles shall be entitled
        ---------------------------------------------

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<PAGE>

to  receive  all  other  benefits  and conditions of employment which may become
available  to  all  other  executives  of  the  corporation, including by way of
illustration,  but  not  limited to, any life insurance benefits, any disability
income  continuation  and  any profit sharing and any retirement income plans of
any  kind, whether qualified or non-qualified, whether pre-funded or not, if any
are  established  after  the  inception  date  of  this Agreement, and before it
expires  pursuant to Section II or sooner terminated pursuant to Section VIII of
this  Agreement

5.)     DEATH  BENEFIT.  In  the  event of Charles's death at a time before this
        ---------------
Agreement  has expired under Section II, or sooner terminated under Section VIII
of  this  Agreement,  the  Corporation shall pay to Charles's surviving spouse a
death  benefit  payable  as the regular payday on the same month on the same day
established  in  Section IV.3.A in the full amount which would otherwise be paid
to  Charles  as  salary,  if  Charles  were  living,  for a period of six months
beginning  with  the  first  regular  payday  date  after  Charles's  death.

VI.     EXPENSE  REIMBURSEMENT  AND  AUTOMOBILE  EXPENSE  ALLOWANCE.
        ------------------------------------------------------------

1.)     EXPENSE  REIMBURSEMENT,  GENERALLY.  Charles  will  be  reimbursed  in
        -----------------------------------
accordance with the Employer's company policies for traveling, entertainment and
any  other  expenses  reasonably  incurred  and  related  to  the performance of
Charles's  duties  and  responsibilities  on  behalf  of  Employer.

2.)     AUTOMOBILE  ALLOWANCE  PLUS EXPENSES. In addition, Charles shall receive
        -------------------------------------
$750.00  per month for automobile expense allowance for use of his automobile in
business,  plus  additional reimbursement for insurance, servicing and operation
of his automobile in business. This allowance shall be reviewed each anniversary
date  of  this  Agreement  for adequacy and shall be increased for the following
year  by the amount Charles's expenses exceed the allowance, subject to approval
by  the  Corporation's  Board  of  Directors.

VII.     DISABILITY  COMPENSATION.
         -------------------------

1.)     If  Charles  becomes  disabled at any time, and for any number of times,
due  to any cause so that he is physically unable to perform his ordinary duties
and  responsibilities of President and Chief Executive Officer, pursuant to this
Agreement,  for  a period of thirty (30) days, then Charles shall be entitled to
receive,  in  lieu of salary, an amount equal to his salary, payable at the same
time  and  in the same manner as Charles's salary is paid provided however, that
this  benefit  shall be limited to not more than a total of twelve months during
the  term  of  the  Agreement,  regardless  of  the  number  or duration of each
disability.

2.)     Charles'  entitlement  to disability income pursuant to this Section VII
shall begin and end as determined by a certificate issued by a qualified M.D. or
D.O.  licensed  by  the  State  of  Washington  to  practice in this state.  The
certificate  shall  state in substance that PATRICK F. CHARLES was determined to
be  disabled  and  unable to perform the ordinary and usual duties of' President
and  CEO of Magellan Filmed Entertainment, beginning with [date] - and Charles's
                                                          -----
disability  continues  as of this [date].  Such a certificate shall be submitted
                                  -----
every  three  (3)  months  beginning  with the date of disability and continuing
thereafter until Charles's disability ends and he is able to return to work full
time  or  his  disability  compensation  benefit  has been fully used, whichever
occurs  first.

VIII.     TERMINATION  OF  CHARLES'EMPLOYMENT.
          -----------------------------------

1.)     TERMINATION  BY  THE CORPORATION.  Charles's employment as President and
        ---------------------------------
Chief  Executive  Officer  may  be  terminated  by the Board of Directors of the
Corporation  with  or  without cause, after receipt by Charles of written notice
received at least ninety (90) days in advance of the employment termination date
set by the Board of Directors, PROVIDED THAT all terms and provisions of Section
VIII.2,  stated  below are met. Such notice ("Notice") shall be sent pursuant to
Section  XII,  below. The termination of Charles's employment shall be effective
as  stated  in  Section  VIII.3,  below.

2.)     TERMS  AND  PROVISIONS OF TERMINATION OF CHARLES'S EMPLOYMENT.Regardless
        --------------------------------------------------------------
of  the  reasons  or  purpose  of  the  termination of Charles's Employment, the
Corporation  shall  not  and may not terminate Charles's employment as President
and  Chief Executive Officer unless and until the Corporation has fully arranged
for  and  commenced  performance  of  the  following:

A.     Offer  in  writing by the Corporation, approved by the Board of Directors
to  purchase  all  shares  of  stock of the Corporation directly or beneficially
owned  by  PATRICK  F.  CHARLES  for cash at least thirty (30) days prior to the
proposed  termination  date  of Charles' employment, at the then existing market
price  based  on  the  average  published  closing  trade price for the five (5)
business days prior to the date of Notice referred to in Section VIII (1) above.
Charles  may  elect in his absolute discretion to waive this provision, VIII 2.)
A.,  by  notifying  the  Corporation  in  writing.

B.     Payment,  in  cash, by the Corporation of all sums then due and owing, if
any,  as compensation, pursuant to Section IV, Compensation, and/or Section VII,
Disability  Compensation,  of  this  Employment  Agreement.

                                      143
<PAGE>

C.     Payment,  in  cash, by the Corporation of all sums then due and owing, if
any,  pursuant  to  Section  VI,  Reimbursement,  of  the  Employment Agreement.

D.     Payment,  in  cash,  by  the  Corporation  for buyout of Remainder of the
Employment Agreement at the rate of fifty percent (50%) of the regular salary in
effect  under  Section  IV,  above,  of  this  Agreement.

3.)     EFFECTIVE  DATE  OF CHARLES'S EMPLOYMENT TERMINATION, The effective date
        -----------------------------------------------------
of  Charles's  employment termination pursuant to Section VIII of this Agreement
shall  be  the  latest  of  the  following  dates:

A.     The  date of Charles's employment termination provided for in the written
notice  of  his  employment  termination;

B.     The  Ninety-first  (91st)  day  after  receipt  by Charles of the written
notice  of  his  employment  termination;

C.     The  date  of  fulfillment  of all the terms and provisions of Part VIII.
(2), above, entitled Terms and Provisions of Termination of Charles's Employment
by  the  Corporation.

IX.     PROPERTY  RIGHTS
 .
1.)     INTELLECTUAL  PROPERTY  RIGHTS.  All rights, title and interest of every
        -------------------------------
kind  and  nature whatsoever, in and to any intellectual property, including any
inventions,  patents,  trademarks,  copyrights, films, scripts, ideas, creations
and  properties  invented,  created,  written, developed, furnished, produced or
disclosed  by Charles in the course of rendering his services to the Corporation
under  this  Agreement  shall,  as between the parties hereto, be and remain the
sole and exclusive property of the Corporation for any and all purposes and uses
whatsoever,  and  Charles  shall have no right, title or interest of any kind or
nature  therein  or  thereto,  or  in and to any results and proceeds therefrom.

2.)     RETURN  OF  ALL  OF THE CORPORATION'S PROPERTY. Upon termination of this
        -----------------------------------------------
Agreement,  regardless  of how termination may be effected or whenever requested
by  the  Corporation, Charles shall immediately turn over to the Corporation all
of  the Corporation's property, including all items used by Charles in rendering
services  hereunder  or  otherwise, that may be in Charles's possession or under
his  control.

X.     CONFIDENTIALITY  AND  NON-DISCLOSURE  OF  INFORMATION.

1.)     DURING  EMPLOYMENT.Charles  agrees  that  during  the entire term of his
        -------------------
employment  as an executive officer by this Corporation, he will not disclose to
any  other  person,  partnership,  company  or  corporation  any  confidential
information  about this Corporation or its related corporations, or the business

                                      144
<PAGE>

activities  or  interests  of  this  Corporation  or  its  related corporations,
including,  but  not  limited  to,  the following which is agreed as between the
parties  to  be  confidential  information: customer data, customer lists, sales
figures, sales projections, estimates of any kind, sales proposals, price lists,
accounting  procedures,  any  and  all  accounting  records,  any technology and
applications  of  technology,  developed by the Corporation before or during his
employment,  EXCEPTsuch disclosure as is for the benefit of or the furthering of
             ------
the  intent  of  the  Corporation,  or  is  expressly  disclosed  as part of the
                                    --
performance  of his duties and responsibilities as President and Chief Executive
Officer.

2.)     SURRENDER  OF  ALL  CONFIDENTIAL  INFORMATION  ON  TERMINATION  OF
        ------------------------------------------------------------------
EMPLOYMENT.Charles  agrees  at  the  time  his  employment  with the Corporation
        ----
terminates, to turn over to the Corporation any and all confidential information
which  may  be  in  his possession, including any and all copies thereof, except
that one copy of such information may be retained in Charles' confidential legal
files  for  record  keeping  purposes  only.

3.)     FOLLOWING  TERMINATION  OF EMPLOYMENT. Charles agrees that following the
        --------------------------------------
termination  of  his  employment  with the Corporation, he will not disclose any
confidential information, as described in Section X(1), above, which he obtained
about  the  Corporation  at  any  time  or  for  any  purpose.

XI.     NON-COMPETITION  AFTER  TERMINATION  OF  EMPLOYMENT.
        ----------------------------------------------------

1.)     NON-COMPETITION  PERIOD--DURATION  AND GEOGRAPHIC SCOPE. Charles and the
        --------------------------------------------------------
Corporation  recognize  and  acknowledge that in his employment as President and
Chief  Executive  Officer, he will become familiar with all of the Corporation's
products and all of the geographic areas throughout the United States and Canada
in  which  the  Corporation  already  has  made  marketing  efforts and sales of
products and services, and he will become knowledgeable about present and future
marketing  proposals  and  plans  for  those  products  and  services  in  those
geographic  areas.  Charles  agrees,  as  part  of  the  consideration  for this
Employment  Agreement that Charles will not engage directly or indirectly in the
business  of  manufacture or sale of any products or services which compete with
the products or services provided by the Corporation or its related corporations
for  a  period of two (2) years within the geographic limits of any state of the
United  States,  or  any  province  of Canada. The parties agree that the phrase
"engage  directly  or  indirectly  in the business of manufacture or sale of any
products  or  services  which  compete  with  the  products  or  services of the
Corporation  or  its  related  Corporations"  shall  include  any  situation  or
circumstance  in  which  Charles  shall  be owner, partner, officer, director or
shareholder of a corporation, or agent or employee or consultant of any business
entity  engaged  or about to become engaged in competition with the Corporation.

                                      145
<PAGE>

2.)     INJUNCTIVE  RELIEF FROM COMPETITION BY CHARLES.The parties agree that if
        -----------------------------------------------
Charles  were  to  violate  the  provisions  of Section XI(1), above, the use by
Charles  of  the  information he learned while employed by the Corporation could
enable  him  to  engage in basically unfair competition with the Corporation and
its  related  corporations,  and  that  such competition in violation of Section
XI(1),  above,  probably would cause irreparable harm to the marketing and sales
success  of  the Corporation and its related corporations. Therefore, if Charles
violates  Section  XI  (1), above, the Corporation shall be entitled to obtain a
temporary  restraining  order without delay, and proceed to obtain a preliminary
injunction  and  permanent injunction against such violations by Charles and any
person,  partnership, company or corporation through which or for which he acts,
directly  or  indirectly  to  violate  Section  XI(1),  above.

XII.     NOTICES.
         --------

1.)     HOW SENT OR DELIVERED.Any notices sent by any party which is intended to
        ----------------------
give  written  notice  required  by  this  Employment Agreement shall be sent or
delivered  by  sender  to the intended recipient by one or more of the following
methods:

A.     By certified mail, return receipt requested, postage prepaid, to the last
known  address  of  the  intended  recipient;  or

B.     By  delivery  personally  to  the  intended  recipient.

2.)     EFFECTIVE  DATE  OF  NOTICE. If a written notice is sent or delivered by
        ----------------------------
either  of the above methods, then the effective date of the notice for purposes
of  considering  it to have been received by the intended recipient shall be the
earliest  of  the  following:

A.     If  by certified mail, return receipt requested, which is delivered, then
or  on  the  date the recipient, or anyone signing for the recipient, signed the
return  receipt;

B.     If  by  certified mail, return receipt requested, which is not delivered,
then  on  the  date  five  business  days  after  the  date the notice was sent;

C.  If  by  personal  delivery  to  the intended recipient, then on the date the
written  notice  was  delivered  personally  to  the  recipient.

3.)     PROOF  OF  DELIVERY  OF  NOTICE.
        --------------------------------

A.     CERTIFIED  MAIL, RETURN RECEIPT REQUESTED. If the written notice was sent
       ------------------------------------------
by  certified  mail,  return receipt requested, proof of sending may be shown by
the  U.S.  Post  Office receipt for the certified mail, return receipt requested
and  proof  of delivery may be shown by the signed returned receipt and proof of

                                      146
<PAGE>

attempted  delivery sufficient for effective date of notice without delivery may
be  shown  by  the  returned  envelope  with  U.S. Post Office notations showing
attempted  delivery  dates  and  notices  to  the  intended  recipient.

B.     PERSONAL DELIVERY.  Personal delivery of a written notice may be shown by
       ------------------
a signature of the intended recipient on a copy of the notice, together with the
legend  on  the  copy  of  the notice which will read, "Received," with the date
received  noted  thereafter.  Personal  delivery  may  also  be shown by a sworn
statement  of  the  person who delivered the notice, stating that the notice was
delivered  to  the  recipient  or  representative  of  recipient  on the date of
delivery,  and  attaching  a  copy  of  the  notice, with reference in the sworn
statement  to  the  attached  copy  of  the  notice.

XIII.     REMEDIES  AVAILABLE  IN  EVENT  OF  BREACH  OF  AGREEMENT;  VENUE.
          ------------------------------------------------------------------

In  the event that any party breaches this Employment Agreement, the other party
shall  have  the  right  to  pursue any remedies available to the party claiming
breach, including, but not limited to damages, injunctive relief and declaratory
judgment,  which may be available under the laws of the State of Washington. The
parties  agree  that  any  claims  shall  be brought in the appropriate court(s)
located  in  King  County,  Washington,  which may have jurisdiction pursuant to
Washington  Law.

XIV.     APPLICABLE  LAW

This  Employment  Agreement  shall  be construed and interpreted and enforceable
pursuant  to  the  laws  of  the  State  of  Washington.

                                      147
<PAGE>

XV.     ENTIRE  AGREEMENT.
        ------------------

This  Employment  Agreement states the entire agreement between the parties with
respect  to  the employment of Charles by the Corporation. This Agreement cannot
be modified by any oral agreement or course of conduct by either or both parties
and  any attempt at such modification shall be null and void. This Agreement may
be  modified  only  by  a  written  document  signed  by  each  party.

     Effective  as  of  the  1st  day  of  October  2000.

EXECUTIVE  OFFICER:

                         S/Patrick F. Charles
                         ---------------------
                         Patrick  F.  Charles

THE  CORPORATION:

     Magellan  Filmed  Entertainment

                    By: S/Terrence K. Picken
                    ------------------------

I  certify  that  I  know  or  have  satisfactory  evidence  that
is  the  person who appeared before me, and said person acknowledged that he/she
signed  this instrument and acknowledged it to be his/her free and voluntary act
for  the  uses  and  purposes  mentioned  in  instrument.

DATED:

                              S/Corinne J. Weber
                              --------------------------
                              Corinne  J.  Weber  -  Notary  Public
                              My  commission  expires:

                                      148
<PAGE>
                                   EXHIBIT "A"
Outline  of  General Terms and Conditions to Employment Agreements of Executives

Patrick  F.  Charles:
---------------------

POSITIONS,  RESPONSIBILITY,  DUTIES  AND  AUTHORITY
---------------------------------------------------
President  and  Chief  Executive  Officer

TERM  OF  AGREEMENT
-------------------
Three  (3)  years  beginning  October  1,  2000.

OUTSIDE  ACTIVITIES
-------------------
Employee  may  engage  in any other non-competitive activities.  Time devoted to
employer  shall  be  "as  considered  necessary".

COMPENSATION
------------
1.     Base  Salary     -  First  Year          $120,000
                        -  Second  year         $150,000
                        -  Third  Year          $180,000

Payable  monthly  at  the beginning of the month.  Employee may elect to receive
stock  in payment of salary amounts in excess of $10,000 each month.  Restricted
stock  shall  be  discounted  up  to  40%  of trade price on the day the Company
receives  notice  from  employee.

2.     Regular  Annual  Bonuses
Annual  bonus  shall be based on pre-tax cash flow from operations as determined
by  Generally  Accepted  /  Accounting  Principles ("GAAP") for the fiscal years
ending  12/31/2001,  12/31/02  and  12/31/03.

                                                  Bonus  For
                                     Amounts     Each  Layer
                                     -------     -----------

                                $1.00 - $250,000     5%
                             $250,001 - $500,000     4%
                             $500,001 - $750,000     3%
                           $750,001 - $1,000,000     2%
                           $1,000,001 and over       1%

Bonus  shall  be payable within 45 days following the Company's fiscal year end.

                                    Benefits
                                    --------
1.     Medical  and  health  care  program  or,  if none, a monthly cash premium
       --------------------------
payment  allowance.
                                      149
<PAGE>

2.     Vacation  and  Holiday  Benefits
       --------------------------------
45  days  vacation
All  paid  holidays  observed  by  employer

3.     Other Employment Benefits which become available to the Executives of the
       -------------------------
Company

4.     Death  Benefits  up  to  six  months  salary  payable  to  the  estate.
       ---------------

Expense  Reimbursement,  Automobile  Allowance  and  Club  Dues
---------------------------------------------------------------
-     Out-of-pocket  expenses  reasonable  to  the  performance  of  duties
-     Automobile  allowance  of  $750 per month payable the first of each month,
plus  incurred  operating  expenses
-     Club  dues,  membership  in  the  Washington  Athletic  Club

DISABILITY  COMPENSATION
------------------------
Up  to  six  months  salary  based  on  certificate  of a qualified M.D. or D.O.
licensed  by  the  State  of  Washington  to  practice  in  this  state.

STOCK  OPTIONS
--------------
Immediate  options  on  1,000,000  common  shares  based  on  $0.10  per  share
exercisable  within  5  years.

Options  will  not  be  cancelled  in  the  event  the  employment  agreement is
terminated  before  the option expiration date.  Other terms and conditions will
follow  the  Company's  Stock  Incentive  Plan  when such plan is adopted by the
Company.

                                      150
<PAGE>H:\Cohen-Reder  Files\Clients\Magellin\Magellan  Film  Sails,
                         Inc\salesagency.ag5.doc     -6-

     SALES  AGENCY  AGREEMENT

     Dated  as  of  July  17,  2000

1.  DISTRIBUTION.   Magellan  Film  Sails, Inc. ("Producer"), hereby engages and
appoints Franchise Pictures, LLC ("Agent"), to act as Producer's exclusive sales
agent  for the exploitation and distribution of the "Rights" in and to three (3)
full-length,  first-class  motion  pictures  (the "Pictures") as defined and set
forth in the attached Exhibit A"', in the "Territory" during the "Term" (as such
capitalized  terms are defined below), upon the terms and conditions hereinafter
set  forth.

2.  TERRITORY.   The  "Territory"  shall be the whole world excluding the United
States and Canada and their respective territories and possessions, trusteeships
and  commonwealths.  The  Territory shall include all diplomatic posts, military
and government installations , wherever located, and all ships, aircraft and oil
rigs  flying the flag of all countries (excluding the United States and Canada).

3.  TERM.   The  "Term"  with  respect to each of the Pictures shall commence on
the  date  hereof  and  shall  continue  for  twenty-five  (25)  years following
acceptable  "Delivery"  (as such term is defined in Paragraph 6 below) of all of
the  items  set  forth in the attached Exhibit "B."  With respect to "Picture 1"
(as  defined  in  the attached Exhibit "A"), Producer shall deliver Picture 1 to
Agent  no  later  than  __________________,  2000.

4.  GRANT  OF  RIGHTS.  The  "Rights"  which  Producer  shall  continue  to  own
notwithstanding  the  engagement  and  appointment  hereunder  include  all  of
Producer's right, title and interest in and to all distribution and exploitation
rights of every kind and nature in and to the Pictures in all media, whether now
known  or  hereafter  conceived  or  created, including, but not limited to, all
theatrical,  non-theatrical,  all  forms  of  free and pay television exhibition
(including  without  limitation,  "Video-on-Demand", pay-per-view, over-the-air,
cable, "Web TV" and similar forms of digital television distribution, satellite,
direct  broadcast  satellite  and  closed-circuit transmissions), videocassette,
videodisc  and  other  compact,  video  and  audio/visual  devices, all forms of
digital  distribution  including,  without  limitation, all on-line and internet
rights (provided, however, with respect to all so-called "on-line" rights, Agent
understands  and  agrees  that  such rights are subject to Producer's reasonable
approval  of the encryption system which would prevent exhibition of each of the
Pictures  on  the internet outside the Territory), soundtrack, music publishing,
and  merchandising and interactive rights, and the exclusive  rights to exhibit,
distribute,  advertise,  promote  and  market each of the Pictures and trailers,
excerpts  and  clips  (including dubbed and subtitled versions) in all sizes and
gauges  of  film, tape and all other materials in the Territory. Producer agrees
that  to  the  extent  it  owns  the  same,  Agent  shall be Producer's sole and
exclusive sales agent in the Territory during the Term to solicit, negotiate and
enter  into  licensing  and  distribution agreement in respect of the Picture on
behalf  of,  and  solely  as agent for Producer.  In connection therewith, Agent
shall  have  the  right  and  authority  to  authorize  distributors  to:

     (a)  Use  and  perform  any  and all music, lyrics and musical compositions
contained  in the Pictures and/or recorded in their sound tracks. Where required
to  be  paid  by  exhibitors, Agent shall include in the license agreements that
foreign  licensees pay all royalties and/ or license fees required to be paid to
any  performing  rights  societies or associations for the public performance of
the  music  or  musical  compositions  recorded in the Pictures necessary in the
Territory  arising  out  of  the  exercise  of its rights hereunder.  The rights
hereunder are subject in all respects to all rights of composers, authors, music
publishers  and  performing  rights societies with respect to the performance of
the  music  synchronized  with  the  Picture,  and Agent shall not knowingly and
willfully  permit  or  authorize  any  exhibition  of  the  Pictures which would
constitute  an  infringement  of any performing rights in any music synchronized
with  the  Pictures.  Producer  shall  furnish  Agent  with a music-cue sheet in
customary  form  for  each  Picture.  Agent  shall  have  the right, but not the
obligation  to  advance  the  funds  necessary  to Producer for payment of music
royalties  and  shall  deduct  such amounts so advanced as distribution expenses
from  the net receipts of the Pictures.   In the event Producer fails to pay any
music  royalties  that  might  become  due  and Agent, at Agent's sole election,
elects  to pay same on Producer's behalf, Agent shall be entitled to deduct such
amounts  from  the  net  receipts  due  to  Producer  from  the  Pictures.

     (b)   Subject  to  any and all contractual restrictions and obligations set
forth  in the applicable third party agreements (provided Producer provides such
agreements  to  Agent  pursuant to Delivery as set forth in the attached Exhibit
"B"),  to  use  the  title  or  titles  of  the  Pictures,  or  change  them;

     (c)   Distribute, exhibit, advertise, publicize and exploit the Pictures in
such  manner as Agent may deem proper or expedient, subject to the provisions of
this  Agreement;

     (d)   Subject  to  any and all contractual restrictions and obligations set
forth  in the applicable third party agreements (provided Producer provides such
agreements  to  Agent  pursuant to Delivery as set forth in the attached Exhibit
"B"),  to  make such dubbed and titled versions of the Pictures, and the trailer
thereof,  including,  without  limitation, cut-in, synchronized and superimposed
versions  in  any  foreign  language;

     (e)   Publicize  and advertise the Pictures throughout the Territory during
the  Term;

     (f)   Subject  to  any and all contractual restrictions and obligations set
forth  in the applicable third party agreements (provided Producer provides such
agreements  to  Agent  pursuant to Delivery as set forth in the attached Exhibit
"B"),  to  publish, cause or permit to be published in all languages and in such
forms  as  Agent may deem advisable, synopses, summaries, resumes or abridgments
of  the  Pictures  (not exceeding 7,500 words in length) in newspapers, heralds,
magazines,  trade  periodicals,  comic books, programs, booklets, posters, lobby
displays,  press  books  and  other  publications  and  in  all  other  media or
advertising  and  publicity;

     (g)   Subject  to  any and all contractual restrictions and obligations set
forth  in the applicable third party agreements (provided Producer provides such
agreements  to  Agent  pursuant to Delivery as set forth in the attached Exhibit
"B"),  to  broadcast,  or  license or authorize others to broadcast, by radio or
television,  in foreign adaptations, versions or sketches of the Pictures or any
parts  or  portions  thereof,  from  sound  records  or  with living persons, or
otherwise,  but  not  to  exceed  fifteen (15) minutes in running time and in no
event  serially;

(h)   Subject  to the applicable agreements for any such artists (Producer shall
use  reasonable efforts to provide Agent with any such agreements), the right to
use the name, photograph, likeness and reproductions of the voices of any artist
rendering  services  to  promote  and  advertise  the  Pictures, but not for the
purpose  of  any  commercial tie-up merchandising or by-product arrangement, and
not  for  an  endorsement,  of  any  product or service other than the Pictures;

     (i)      Subject  to  any  and all contractual restrictions and obligations
set  forth  in the applicable third party agreements (provided Producer provides
such  agreements  to  Agent  pursuant  to  Delivery as set forth in the attached
Exhibit  "B"),  to  announce  and include on the main titles of the Pictures and
trailers  thereof and in all advertising and publicity relating thereto, in such
manner,  position,  form  and  substance as Agent may elect, consistent with any
applicable  standard guild requirements and any contractual commitments of which
Agent  is  notified by Producer, the designation of Agent and/or its logo at the
beginning  of  the Pictures and any advertising in connection therewith, and/ or
those  of  any  of  its  subsidiaries  and  licensees as the sales agent for the
Pictures. Any advertising or publicity referring to such person shall be limited
to  and  shall  indicate that such person appears in or has rendered services in
connection  with  the  Pictures.  The  goodwill  pertaining  to  the  Pictures,
including the characters and their names, the name of the individual producer(s)
of  the  Pictures and the name of Producer, alone or in a combination with other
words, and the trade name or trademark or other identification of Producer shall
belong exclusively to Producer.  Agent may use such names of characters or their
portraits  or  likenesses and the title of the Pictures but in no such manner as
to  constitute  an  endorsement  of  any  party,  product  or service except the
Pictures;  and

     (j)   To  make  such  changes,  dubs,  alterations, edits, cuts, deletions,
interpolations  into  and  from  the  Pictures  and the trailers for each of the
Pictures  necessary  to conform to any censorship requirements in the Territory.

     (k)  Assert and prosecute all claims or actions or causes of action against
any  and all persons for the unauthorized or illegal use, copying, reproduction,
release,  distribution, exhibition or performance of the Pictures or any part or
versions  thereof,  or  for  the  enforcement or protection of all or any rights
herein  granted  together with full and complete authority and power of attorney
in  the  name  of  Producer  to do all or any of the foregoing.  Producer hereby
appoints  Agent  its  true  and  lawful attorney-in-fact for such enforcement or
protection.

4.  RESERVED  RIGHTS.  All  rights  not  granted  to Agent hereunder, including,
without  limitation,  the  remake, sequel (including prequel), television motion
picture,  mini-series,  episodic  series,  and live stage rights for each of the
Pictures  ("Reserved  Rights")  shall  be reserved to Producer.  Producer hereby
grants  Agent  a  "Right of First Negotiation" regarding the Reserved Rights.  A
"Right  of  First  Negotiation"  shall mean that at any time during the Term for
each  respective  Picture  either  party  wishes  to exploit any of the Reserved
Rights,  the  parties  shall  negotiate  in  good  faith regarding the terms and
conditions  for  the  exploitation of any such right(s).  If the parties fail to
reach  a  mutually satisfactory agreement after thirty (30) days of negotiation,
Producer  shall  be  free  thereafter  to  make and/or receive offers from third
parties  with  respect  to  the  Reserved  Rights  hereunder.

5.  THE  PICTURES.   In each case the completed Pictures shall be made available
to  Agent  promptly  upon  expiration of their existing contracts.  The Pictures
will  be  feature-length first-class color motion pictures shot on 35 millimeter
film.

6.  DELIVERY.   Producer  shall  furnish  all  materials  necessary  to  effect
"Delivery"  (as such term is defined hereinbelow) in the Territory in accordance
with  the  requirements of Exhibit "B" attached hereto, the terms of which shall
be subject to good faith negotiations between the parties. "Delivery" shall mean
Agent's receipt, at Producer's sole cost and expense, of all of the items listed
in  Exhibit  "B" attached hereto ("Delivery Items").  Agent shall have the right
to  cut, modify and re-edit the Pictures for censorship reasons; however, except
for  foreign  and  video  versions,  and,  as expressly permitted herein and for
subtitling,  dubbing,  censorship  and  foreign  versions,  all  prints shall be
exhibited  in  their  original  continuity,  and  in  no event shall any credit,
trademark, trade name, symbol or copyright notice intentionally be eliminated or
altered.

     If any of the Delivery Items are incomplete or technically unacceptable, as
determined  by  a third party laboratory, Agent shall notify Producer in writing
specifying the defects ("Defect Notice").  Such Defect Notice shall be delivered
within  thirty  (30)  days  of  receipt  by  Agent of the last item required for
Delivery  sent  by  Producer.  If  Producer  fails to cure the specified defects
within  thirty  (30)  days  from  the  date  such  Defect Notice was received by
Producer,  Agent  may  secure  acceptable  replacements  and  recoup the cost of
creation thereof as a distribution expense which shall not be deemed a marketing
expense  pursuant  to  subparagraph 8 hereof, and which shall be recoupable from
the  first  dollar  of  foreign  gross receipts.  If Agent has not sent a Defect
Notice  within  thirty  (30)  days  of  receipt of all Delivery Items, then such
Delivery  Items  shall  be  deemed  approved.

 In  the  event  any  item set forth in Exhibit "B" is not delivered by Producer
hereunder,  Agent  shall  have  the  right to create same and recoup the cost of
creation thereof as a distribution expense which shall not be deemed a marketing
expense  pursuant  to  subparagraph 8 hereof, and which shall be recoupable from
the  first  dollar  of  foreign  gross  receipts.

7.  ADVERTISING.

(a)   Producer  shall deliver to Agent a complete and accurate written statement
of  all  screen  and advertising credits required in connection with each of the
Pictures and shall supply Agent with a preliminary statement as soon as possible
following  the  availability  of  each  Picture.

     (b)   Agent  shall  have  the  right  to  produce advertising material with
respect  to each of the  Pictures provided that Agent adheres to the credits and
any  other  restrictions  of which it has knowledge or of which it is advised by
Producer at the time of Delivery specified in the statements delivered under the
terms  of  this  Paragraph 7.  If Agent shall create any such advertising and/or
promotional  materials  for  the  Pictures,  Producer  shall  have non-exclusive
unrestricted access to such advertising and promotional materials; provided that
Producer  shall pay all costs and expenses of any orders placed by Producer with
respect  to  such  advertising  and  promotional  materials.

     (c)   Producer  agrees  to  supply  Agent  with  advertising  and publicity
materials  free  of  charge  as  and  when  and  if  the  same become available.

     (d)   In  prints  and  in  paid  advertising or publicity for the Pictures,
Agent  shall  follow the billing and credits ("Credits") appearing in the prints
(or  pre-print  materials) and advertising material delivered to it by Producer.
Such  credits  shall  be  of  the  same  relative  size or type, and in the same
position  and  order  as  they appear in the prints (or pre-print materials) and
advertising  material  delivered  to  Agent,  and no Credits shall be changed or
eliminated  without Producer's consent.  Provided Agent complies with and abides
by  the Credits, Producer shall indemnify and save Agent harmless from any loss,
damage,  cost  or  expense  (including  reasonable  attorneys' fees) incurred or
suffered by Agent arising as a result of the giving of the Credits on the screen
or  in  advertising  issued  by  Agent and/or under Agent's control.  Agent will
include  in  its  licensing  agreements an obligation to conform to these credit
requirements  requiring  such  licensees to indemnify and save Producer harmless
from  any  loss,  damage, cost or expense (including reasonable attorneys' fees)
incurred  or  suffered  by  Producer arising out of any error or omission in the
giving  of  the Credits as provided by Producer. Subject only to the contractual
restrictions  under  any  third-party  agreement  which Producer has provided to
Agent in writing which Producer has advised Agent are applicable to the specific
Picture,  Agent  may,  in its sole discretion, determine and arrange the placing
and  size  of  credits  including credits above the artwork title provided Agent
submits  the  same  to Producer in advance for its approval which approval shall
not  be  unreasonably  withheld.  Failure  to  object within five (5) days after
receipt  shall  be deemed an approval on behalf of Producer.  Any inadvertent or
casual failure of Agent to comply with any credit obligations, or failure due to
the  acts or omissions of third parties, shall not constitute a breach by Agent,
or  entitle  Producer to any relief at law, equity or otherwise. Agent will take
reasonable  steps  to  correct  or  have  corrected any such errors or omissions
prospectively  after  written  notice  by  Producer.

8.  MARKETING  FEE/EXPENSES.   Agent  shall  be  entitled  to  recoup  a  "flat"
marketing  fee  deductible  from  Producer"s  Share of proceeds in the amount of
$200,000  with  respect  to  each Picture.   It is expressly agreed that foreign
withholding  taxes  shall  not  be  deemed or considered either marketing and/or
distribution  expenses  subject  to a limitation.  Such marketing expenses shall
cover all artwork, posters, press kits, promotional and marketing materials, all
film  market  attendance  expenses,  and all other miscellaneous sales expenses.
Agent  may  also  deduct the costs of any production or post-production expenses
advanced  on  behalf  of Producer and may recoup the costs of any delivery items
not  provided  by  Producer.   Producer  approves  an  additional  amount  up to
$15,000,  or  such  higher  amount as may be approved in writing by Producer, to
cover  reasonable  travel  and  living  expenses  for  talent  and  Franchise's
representative  if  the Picture is screened at any film festival pre-approved in
writing  by  Producer.

9.  DISPOSITION  OF  PROCEEDS

     For  purposes  of  this  agreement,  Gross Receipts shall be defined as all
non-returnable advances by licensees and/or distributors or subagents, revenues,
compensation, monies and other forms of compensation, but not reimbursement, for
the  sale  and  licensing  of the Rights in and to the Pictures in the Territory
that  are  actually  received by or credited to the account of  Agent, but after
deductions  at the source, including but not limited to, foreign tax withholding
and  bank  charges.  Gross  Receipts  shall  be  allocated  as  follows:

     (a)   Agent  shall  first  deduct  and  retain  its sales agent fee of 15%.

     (b)   Next,  Agent  shall  deduct and recoup its marketing expenses and any
film  festival  expenses,  both subject to the limitations of Paragraph 8 above.

     (c)   Next,  Agent  shall  deduct  and  recoup  any  amounts  advanced  for
production or post-production expenses, and the cost of any delivery items which
should  have  been  provided  by Producer pursuant to the attached  Exhibit "B."

     (d)   The  remainder  of Gross Receipts shall be deemed as Producer's Share
and  shall  be  paid  to  Producer  in  accordance  with  Paragraph  10  below.

10.  ACCOUNTING.   Agent  shall prepare accounting statements no less frequently
than  on  a  quarterly  basis for the first five (5) years of this agreement and
semi-annually  thereafter.  Such statements shall be sent to Producer forty-five
(45)  days  after the end of each quarterly or semi-annual accounting period, as
the  case  may  be,  and  shall  include  any  amounts payable to Producer.  Any
statement  not  objected  to within twenty-four (24) months of issuance shall be
deemed  true  and  correct  and  binding upon Producer.  Producer shall have the
right  for  a period of one (1) year from the submission of each statement, upon
at least thirty (30) days' notice, but no more often than once a year and for no
longer  than  twenty (20) days, to examine Agent's books and records but only as
they  pertain  to the Gross Receipts for the applicable Picture, for the purpose
of  determining  the  accuracy of the statements.  Any claim arising out of such
examination  must  be  rendered  within  sixty  (60)  days  from  the  date  the
examination  ends,  or all statements examined shall be deemed correct.  If such
examination  and  audit  shall disclose a deficiency in payments of five percent
(5%)  or  more,  then  Agent shall reimburse Producer for the full out-of-pocket
costs and expense of such examination and audit.  Notwithstanding the foregoing,
Producer  agrees that it will not conduct more than one (1) examination pursuant
to  the  terms  of  this  Paragraph  during  any  twelve  (12)  month  period.

11.  REPRESENTATIONS  AND  WARRANTIES.

     Producer  represents  and  warrants:

(a)   That it is a Nevada corporation in good standing; that it has the right to
appoint  Agent  as  its  sales  agent hereunder; that it will own or control all
rights of every kind and nature in and to the Pictures produced by it sufficient
to  allow  Agent  to  render its services hereunder; that all payments have been
made  or  will  be  timely  made  with  respect to the contracts relating to the
production  of  the  Pictures;  that  to  the best of Producer's knowledge after
exercising  due diligence, the distribution or exploitation of the Pictures will
not  infringe  upon or violate the rights, nor infringe upon rights of copyright
or  any  other  rights  whatsoever  of,  any  person,  firm  or  corporation.

     (b)   Producer  shall indemnify Agent, its officers, employees, successors,
licensees  and  assigns  against  any  claims, actions, causes of action, costs,
losses,  damages,  expenses  or  judgments,  including, but not limited to legal
costs  and  reasonable outside attorneys' fees incurred by or arising out of any
breach of any of the representations, warranties, or agreements made by Producer
in  this  Agreement.  In  addition  to  and  without  waiving  any of its rights
hereunder  or  at  law  or  in  equity, Agent shall have the right to retain and
recoup  all  amounts  which would be subject to the foregoing indemnity from any
sums  accruing  to  or for the account of Producer hereunder with respect to the
Pictures.

     (c)   Producer  shall indemnify Agent, its officers, employees, successors,
licensees  and  assigns  against  any  claims, actions, causes of action, costs,
losses,  damages,  expenses  or  judgments,  including, but not limited to legal
costs  and  reasonable  outside  attorneys'  fees  incurred by or arising out of
Producer's  not  maintaining  a  Producer's  Liability and  Errors and Omissions
insurance policy from a licensed and qualified insurance company. In addition to
and  without  waiving  any of its rights hereunder or at law or in equity, Agent
shall  have the right to retain and recoup all amounts which would be subject to
the foregoing indemnity from any sums accruing to or for the account of Producer
hereunder  with  respect  to  the  Pictures.

     (d)   Producer  shall  be  solely  responsible  for  all  payments  to
third-parties,  including  but  not limited to any and all residuals, re-use and
other  fees and any other sums payable to any union or guild with respect to the
exploitation  of  the  Pictures,  and  all profit participation's and royalties.

     Agent  represents  and  warrants  that:

     (1)   Agent makes no representations, warranties or indemnities, express or
implied, except as specifically set forth in this Agreement. Agent hereby agrees
to  defend,  indemnify  and  hold  harmless  Producer,  its officers, employees,
successors, licensees and assigns against any claims, actions, causes of action,
costs,  losses,  damages,  expenses  or  judgments  (including  legal  costs and
reasonable  attorneys'  fees) incurred by or arising out of any breach of any of
the  representations,  warranties, or agreements made by Agent in this Agreement
or  as  a result of the intentionally tortious, reckless or negligent conduct of
Agent  in  connection with distribution of the Picture.  Producer shall have the
right  to  retain and recoup all amounts which would be subject to the foregoing
indemnity  from  any sums accruing to or for the account of Agent hereunder with
respect  to  the  Pictures.

     (2)   Agent agrees to use its good faith efforts to license the Pictures in
a  manner  which  will  maximize  the receipts therefrom.  In this regard, it is
understood  and  agreed that Agent  shall provide to Producer in writing for its
approval  a  schedule  of  pre-approved  minimum  sales prices for each country,
region  or  other  portion  of  the  Territory  ordinarily  sold  under a single
contract.  In  this  regard Producer expressly acknowledges Agent's expertise in
the  business  of  selling  motion pictures in foreign territories and therefore
expressly  agrees  that  Producer  shall not unreasonably withhold its approval.
Agent  agrees  to  use  its  best  efforts  to license the Pictures on behalf of
Producer  in a manner which calls for the initial release of the Pictures in the
theatrical media in the various countries throughout the territory unless Agent,
in the exercise of its sound business judgment, deems that the inclusion of such
a  requirement  is  either impractical, unfeasible or contrary to sound business
judgment.

12.  DISPUTE  RESOLUTION.   In  the  event  of  any  dispute  between  Agent and
Producer  or  Producer's  assignee  or successor-in-interest with respect to the
suitability  for  the  uses set forth hereunder of any of the Delivery Items set
forth  on  Exhibit  B In connection with any of the Pictures, Producer and Agent
agree  to  submit such dispute to binding arbitration in Los Angeles, California
under  the  rules  of the American Film Marketing Association.  Producer further
expressly  agrees that Producer and Producer's successors-in-interest, including
but  not  limited to Motion Picture Guarantors, shall be bound by the results of
such arbitration, and that in the event such materials are found by the Agent to
be  unsuitable  for  use  by  Agent  in  the peaceful exercise of Agent's rights
hereunder  in connection with such Picture, all sums therefore expended by Agent
hereunder  shall  immediately  become  refundable  to  Agent  by  Producer.

13.  MISCELLANEOUS

     (a)     With  respect  to  licenses  to  sub-agents  in  the  Territory:

     (1)  Agent  agrees  to  use  to  the extent possible the AFMA International
Multiple  Rights  Distribution  Agreement;

     (b)     This  Agreement  shall  be  construed,  interpreted and enforced in
accordance  with  the  laws  of the State of California applicable to agreements
negotiated,  made,  executed  and  wholly performed in said State.  Producer and
Agent  hereby consent and submit to the exclusive jurisdiction and venue of said
State  for the adjudication of any dispute between Producer and Agent pertaining
to  this  Agreement  or  the alleged breach of any provision hereof, and further
agree  that  the mailing to either party of any court process or other papers in
connection with the adjudication of any such dispute, by certified or registered
mail, return receipt request, at such party's address set forth herein, shall be
good  and  sufficient service of such papers and of the same force and effect as
if  such  papers  had  been  personally  served  on  such  party  in said State.

     (c)     Producer  and  Agent  agree  to  execute  and deliver to each other
promptly  upon  the  request  of  the  other, any other instruments or documents
necessary to evidence, effectuate or confirm this Agreement, or any of its terms
and  conditions.

     (d)     Nothing  contained  herein  shall require the commission of any act
contrary  to  an  express  provision  of  law,  or any rule or regulation of any
governmental  authority,  and if there exists any conflict between any provision
of this Agreement and any such law, policy, rule or regulation, the former shall
be  curtailed,  limited  or  eliminated  to  the extent necessary to remove such
conflict,  and  as  so  modified this Agreement shall continue in full force and
effect.

     (e)     Nothing  contained herein shall be deemed to create a joint venture
or  partnership  between  the parties.  Neither party shall become liable due to
any  representation,  act  or  omission  of the other contrary to the provisions
hereof.  This  Agreement  is  not  for  the  benefit  of  any third person not a
signatory  hereof  and  shall  not  be deemed to give any right or remedy to any
other  person  whether  or  not  referred  to  herein.

     (f)     A  waiver by either party of any of the terms or conditions of this
Agreement  in  any  instance shall not be deemed or construed to be a continuing
waiver  of  such term(s) or condition(s), or of any subsequent breach. No waiver
by  either  party  shall  prevent  such  party  from enforcing any and all other
provisions  of  this  Agreement  or  from  acting  upon  the  same  or any other
subsequent  breach  or  default  of  the  other  party.

     (g)     Producer  may not assign or transfer any of its rights hereunder to
a  parent,  subsidiary  or  affiliate  without  first  obtaining Agent's written
consent. Producer may also assign or transfer any of its rights hereunder to any
person,  firm  or  corporation upon Agent's written approval, which shall not be
unreasonably withheld.  Producer hereby covenants to give notice to Agent of any
proposed assignment and assumption of the obligations hereunder to Agent.  Agent
may  assign  its rights hereunder to a parent, subsidiary or affiliate or to any
party  acquiring  all  or  substantially  all  of Agent's assets or distribution
business.  Agent may sublicense its rights to film buyers and sub-Agents but may
not  assign  any  or  all  of its rights hereunder, except that Agent may freely
assign  its  rights  to  receive  its  share  of  monies  hereunder.

     (h)     All notices, statements and other documents required to by given in
writing  shall  be  given  or  made either by personal delivery, certified mail,
telegraph,  telex  or  facsimile  transmission  and  shall  be deemed given when
received  and  shall  be  addressed  as  follows:

     (i)     If  to  Producer:

Magellan  Film  Sails,  Inc
2893  Sea  Ridge  Drive
Malibu,  CA  90265
Facsimile:  310-456-1166
Attn:     Michel  Shane

     If  to  Agent:
Franchise  Pictures  LLC
8228  Sunset  Blvd
Los  Angeles,  CA  90046
323-822-2165
Attention:  Lisa  Wilson

     (j)  The  captions  or  clauses contained herein are intended for reference
and  convenience  only,  and  in no way define, limit or describe the meaning or
construction  of  this Agreement or any part hereof, nor shall they otherwise be
given  any  legal  effect.

     (k)  Producer shall have reasonable approval of all "press releases" issued
by  Agent  or  by  Agent's  agent  containing  any  substantial reference to the
Pictures  or  Producer.  Producer  agrees  to  respond in writing within two (2)
business  days of any request by Agent for approval of any such "press release,"
silence  to  be  deemed  approval.

     (l)  This  instrument  and  any  attachments constitutes the entire written
agreement  between  the  parties  and  cannot  by  modified  except by a written
instrument  signed  by  an  authorized  officer  of  both  parties.  No officer,
employee  or  representative  of Producer or Agent has any authority to make any
representation  or  promise  in  connection  with  this Agreement or the subject
matter that is contained herein, and Producer and Agent agree that they have not
executed  this  Agreement  in  reliance upon any such representation or promise.

     (m)  Agent  agrees  to  execute  any  instruments  or  documents consistent
herewith  (after  a  reasonable opportunity to review same in writing) as may be
necessary  for  Producer  to  obtain  production  financing  for  the  Pictures.

14.  KEY  MAN  CLAUSE:  In  the  event  Lisa Wilson ("Wilson") shall at any time
during the Term cease to be employed as the [senior executive in charge of sales
and distribution] for Agent, Agent shall immediately notify Producer in writing.
Producer then may (but shall have no obligation, to) terminate this Agreement by
providing  written  notice  thereof to Agent.  In the event of such termination,
Agent  shall continue to distribute any Picture with respect to which it has (i)
received  all materials set forth in the delivery schedule for such Picture; and
(ii) commenced marketing and distribution efforts (such a Picture is referred to
herein  as  a  "Delivered  Picture"),  and  all obligations of Agent to Producer
hereunder shall continue with respect to all Delivered Pictures.  Producer shall
have  no obligation to deliver (or to complete delivery) to Agent of any Picture
which  is  not a Delivered Picture at the time Wilson's services are terminated.
Agent  shall immediately return to Producer all materials in its possession with
respect  to  any  Picture  which  is  not  a  Delivered  Picture.

     If  the foregoing correctly reflects your understanding, please sign at the
place  provided  below whereupon this letter will constitute a binding agreement
between  us  as  of  the  day  and  year  first  above  written.

AGREED  TO  AND  ACCEPTED:

FRANCHISE  PICTURES,  LLC  ("Agent")

By:  S/H.W.  Turner
       Hans  W.  Turner

Its:  Executive  Vice  President

MAGELLAN  FILM  SAILS,  INC.  ("Producer")

By:  S/Michel  Shane

Its:   Agent

                                      151
<PAGE>

                                   EXHIBIT "A"

1.   "Picture  1"  shall  be  "Renee's  Landing."

2.    "Picture  2"  and "Picture 3" shall be approved and designated by Producer
in  its  sole  discretion  pursuant  to  the  following  mechanism:

     2.1  Picture Submissions.  Throughout the Term, Producer shall submit on an
          -------------------
exclusive,  first  look  basis to Agent (prior to submission to any other party)
and  shall  afford  Agent  the  sole  and  exclusive first opportunity to act as
Producer's  exclusive  sales  agent for the exploitation and distribution of any
and  all  theatrical  motion pictures produced by Producer or any and all ideas,
screenplays, properties and/or literary, dramatic, musical or other materials of
any  kind  owned  and/or  controlled  by Producer during the Term which Producer
desires  to  produce as theatrical motion pictures ("Picture Submission").  Each
Picture  Submission  to  Agent by Producer shall be accompanied by the following
elements  ("Submitted Elements"): (i) a copy of the screenplay for such Picture;
(ii)  a  budget for such Picture and (iii) the star(s) attached to render acting
services  in  connection  with  such  Picture.

(1)     Agent's  Response.  Within  ten  (10)  business days following a Picture
        -----------------
Submission  to  Agent,  Agent  shall advise Producer in writing of the projected
sales  figures  for  such  Picture,  which sales shall be based on the Submitted
Elements  for  such  Picture  ("Projected  Sales  Submission").

(2)     Producer's  Approval:  Within  five  (5)  business  days  following  a
        --------------------
Projected  Sales  Submission to Producer, Producer shall advise Agent in writing
of  whether  or  not Producer has in its sole discretion elected to approve such
Picture  for distribution under the Agreement. If Producer shall fail to approve
in  writing  such  Projected Sales Submission, within said approval period, then
such  Projected  Sales  Submission  shall  be deemed to be rejected by Producer.

(3)     Approved Pictures.  If any Picture Submission pursuant to this Agreement
        -----------------
shall  be  approved  for  distribution by Producer, then such Picture Submission
shall  be  deemed  an  "Approved Picture."  If, and only if, Agent shall acquire
rights  with  respect  to  an Approved Picture, the provisions of this Agreement
with  respect  to  the  distribution  of  Approved  Pictures  shall  apply.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00024-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00024-of-00352.parquet"}]]