Document:

IWERKS ENTERTAINMENT, INC.

                              CONSULTING AGREEMENT

     This Consulting Agreement (the "Agreement") is made and entered into
effective as of February 15, 2000, by and between IWERKS ENTERTAINMENT, INC., a
Delaware corporation (the "Company"), and GARY J. MATUS ("Consultant").

     THE PARTIES AGREE AS FOLLOWS:

1.   RETENTION OF CONSULTANT. Consultant is hereby retained by the Company as
its acting Chief Executive Officer, for a term (the "Term") commencing as of
February 15, 2000 and continuing until such date as the consultancy may be
terminated by no less than 15 days prior written notice from one party to the
other. It is recognized that Consultant is not able to dedicate his full time to
this engagement but, recognizing the critically important contribution of the
acting CEO during this period, Consultant will endeavor to provide as close to
full time services to the Company as possible.

2.   CONSULTING FEE. The fee for Consultant's services to be paid by the Company
shall equal Ten Thousand Dollars ($10,000) per month, prorated for any partial
month during the Term of this Agreement. Fifty percent (50%) of the monthly fee
shall be paid in advance on the first day of the month during the Term of this
Agreement. The remaining fifty percent (50%) shall be paid on the first to occur
of (i) a Change in Control (as defined below), or (ii) July 31,2000.

3.   STOCK OPTION. The Company hereby grants to Consultant a fully vested option
to acquire 100,000 shares of the Company's common stock at an exercise price of
$1.625 per share, exercisable at any time by Consultant within ten (10) years
after the date of this Agreement after the occurrence of an event that triggers
the payment of a bonus pursuant to Paragraph 4.

4.   BONUS. The Company shall pay to consultant a one-time cash bonus of One
Hundred Thousand Dollars ($100,000) if either (or both) of the following occurs:
(i) a Change in Control, or (ii) the Company engages in an equity financing
transaction (or series of related transactions) whereby the Company issues
Company common stock, preferred stock or other equity securities, or options,
warrants or other rights to acquire the same and receives gross proceeds from
the financing of not less than Three Million Dollars ($3,000,000). Any payment
owing under this Section shall be made by the Company within 10 business days
after the occurrence of the triggering event specified in clause (i) or (ii), as
applicable.

5.   EXPENSE REIMBURSEMENT. The Company shall promptly reimburse reasonable
business expenses incurred by Consultant in performance of his duties hereunder,
subject to Consultant's submission of expense reports and documentation as may
be reasonably required by the Company.

6.   "CHANGE IN CONTROL" DEFINED. As used in this Agreement, the term "Change
in Control" shall mean:

     (i)  The consummation of a merger or consolidation of the Company with or
          into another entity or any other corporate reorganization of stock
          sale, if more that 50% of the combined voting power of the continuing
          or surviving entity's securities outstanding immediately after such
          merger, consolidation or other reorganization or

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          sale is owned by persons who were not stockholders of the Company
          immediately prior to such merger, consolidation, or other
          reorganization or sale; or

     (ii) The sale, transfer or other disposition of all or substantially all of
          the Company's assets.

A transaction shall not constitute a Change in Control if its sole purpose is to
change the state of the Company's incorporation or to create a holding company
that will be owned in substantially the same proportions by the persons who held
the Company's securities immediately before such transaction.

7.   In the event that a transaction does not occur before July 31, 2000 that
triggers the payment of a bonus pursuant to Paragraph 4, it is understood that
this agreement will be re-negotiated or, at the option of Consultant, retained
in effect.

8.   INDEPENDENT CONTRACTOR. Consultant enters into this Agreement as, and shall
continue to be, an independent contractor. Consultant shall pay all federal,
state and other income taxes due and properly file appropriate tax returns.
Consultant shall not be entitled to any Company employee benefits. All payments
owning to Consultant under this Agreement shall be paid by the Company without
withholding, deduction or offset of any kind.

9.   GENERAL PROVISIONS. This Agreement shall be governed by and construed in
accordance with the laws of the State of California applicable to contracts
entered into in California between California residents. If any provision of
this Agreement is for any reason found by a court of competent jurisdiction to
be unenforceable, the remainder of this Agreement shall continue in full force
and effect. This Agreement embodies the entire agreement between the parties and
supercedes all prior agreements and understandings between the parties with
respect to its subject matter. The Agreement may not be changed unless mutually
agreed upon in writing by both parties.

     IN WITNESS WHEREOF, the parties have executed this Consulting Agreement
as of the date first set forth above.

     COMPANY:                IWERKS Entertainment, INC., a Delaware corporation

                             By:     /S/ DON IWERKS
                                     ---------------------------------
                             Title:  CHAIRMAN, INTERIM CEO
                                     ---------------------------------

     CONSULTANT:             /S/ GARY J. MATUS
                             -----------------------------------------
                             Gary J. Matus

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                                     IWERKS
                                  ENTERTAINMENT

July 5, 2000

Gary J. Matus
Consultant
Iwerks Entertainment Inc.
4540 W. Valerio Street
Burbank, CA  91505

Re:  Consulting Agreement dated 2/15/2000 (see attached)

Dear Gary:

Given the continuing needs of the Company and the unexpected delays in
consummating a merger transaction, Iwerks has elected to extend the Consulting
Agreement between yourself and Iwerks Entertainment through 12/31/00.

All the terms and conditions of the original agreement remain the same.

Best regards,

/s/ Don Iwerks

Don Iwerks
Chairman of the BoardIWERKS ENTERTAINMENT INC.
                                 BONUS AGREEMENT

     This Bonus Agreement (the "Agreement") is made and entered into effective
as of March 22, 2000 by and between IWERKS ENTERTAINMENT, INC., a Delaware
corporation (the "Company"), and JEFF M. DAHL ("Employee").

     AS APPROVED BY THE BOARD OF DIRECTORS, THE PARTIES AGREE AS FOLLOWS:

1.   BONUS. The company shall pay to Employee a one-time cash bonus of One
     Hundred Thousand Dollars ($100,000) if either (or both) of the
     following occurs: (i) a Change in Control, or (ii) the Company engages in
     an equity financing transaction (or series of related transactions) whereby
     the Company issues Company stock, preferred stock or other equity
     securities, or options, warrants or other rights to acquire the same and
     receives gross proceeds from the financing of not less than Three Million
     Dollars ($3,00,000). Any payment owing under this Section shall be made by
     the Company within 10 business days after the occurrence of the triggering
     event specified in clause (i) or (ii), as applicable.

2.   GENERAL PROVISIONS. This Agreement shall be governed by and construed in
     accordance with the laws of the State of California applicable to contracts
     entered into in California between California residents. If any provision
     of this Agreement is for any reason found by a court of competent
     jurisdiction to be unenforceable, the remainder of this Agreement shall
     continue in full force and effect. This Agreement embodies the entire
     agreement between parties and supersedes all prior agreements and
     understanding between the parties with respect to its subject matter. This
     Agreement may not be changed unless mutually agreed upon in writing by both
     parties.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
     set forth above.

                COMPANY:     Iwerks Entertainment Inc., a Delaware Corporation

                             By:     /s/ Don Iwerks
                                     -----------------------------------------
                             Title:  Chairman, Interim CEO

                             By:     /s/ Gary Matus
                                     -----------------------------------------
                             Title:  Board Director

                EMPLOYEE:    /s/ Jeff M. Dahl
                             -------------------------------------------------
                             Jeff M. Dahl
                             Chief Financial OfficerFIRST AMENDMENT
                                       TO
                                    SCHEDULE

     This First Amendment to Schedule ("Amendment") is entered into as of June
22, 2000, by and between Matrix Funding Corporation (the "Lessor") and Iwerks
Entertainment, Inc. (the "Lessee").

                                    RECITALS

     This Agreement is being entered into in reference to the following facts:

          The Lessor and the Lessee entered into a Master Lease Agreement,
number R0556, dated as of June 14, 1996 (the "Lease") and Equipment Schedule
No. 1 thereto, dated June 14, 1996 (the "Schedule"). Capitalized terms used
herein without definition have the meaning assigned thereto in the Schedule.
The Lessor and the Lessee desire to amend the Schedule in certain respects
subject to the terms and conditions hereof.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein,
the parties hereto hereby agree as follows.

                            ARTICLE ONE - AMENDMENTS

     1.1 AMENDMENT OF SECTIONS 4, AND 5. Sections 4 and 5 of the Schedule are
hereby amended and restated to read in their entirety as follows:

               "4. Initial Period: 51 months from the Commencement Date.

               5. Monthly Rental: $69,594 (plus applicable taxes) prior to March
          1, 2000; zero on March 1, April 1, May 1, and June 1, 2000; $45,042
          (plus applicable taxes) on July 1, August 1, September 1, October 1,
          and November 1, 2000; and on December 1, 2000, a final payment equal
          to all sums owing by the Lessor to Imperial Bank (plus applicable
          taxes) under a Promissory Note, dated as of June 28, 1996, in the
          original principal sum of $2,657,100.06, as amended by the First
          Amendment to Promissory Note, entered into as of June 22, 2000. (the
          promissory note, as amended, being hereinafter referred to as the
          "Note"). Lessor represents to Lessee that as of June 22, 2000: (i) the
          unpaid principal balance of the Note is $419,413.49 (exclusive of
          accrued and unpaid interest on the Note as of that date in the amount
          of $16,956.22), (ii) the Note bears interest on the principal balance
          of 9.88% before July 1, 2000, and of 12% after June 30, 2000, (iii)
          subject to Lessor's and Lessee's execution and delivery of the First

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          Amendment to the Schedule and Lessee's payment to Imperial Bank by
          July 14, 2000, of the July 1, 2000, Monthly Rental in the amount
          specified above in this Section 5, and (iv) provided Lessee pays all
          remaining Monthly Rental payments in the amounts and when due as
          specified above in this Section 5; then no other amounts are or will
          be owed by Lessor under the Note."

     1.2 NEW SECTION 12. The Schedule is amended by the addition of a new
section, number 12, which shall read in its entirety as follows:

               "12. AGREEMENT REGARDING SALE/PURCHASE OF THE EQUIPMENT.

               (a) Lessee may arrange for the cash sale to an unrelated third
          party of one of the trailers comprising the Equipment. Such sale is
          subject to the approval of the sales price by Lessor and its lender,
          Imperial Bank, in their sole discretion (the `Approval'). The proceeds
          from the sale shall be applied to payment of the Monthly Rentals
          specified in SECTION 1.1 above (beginning with the December 1, 2000,
          payment) in inverse order of maturity of payment. After all Monthly
          Rental payments have been paid, any excess proceeds from the sale
          shall be applied to the purchase price for the remaining items of
          Equipment specified in paragraph 12(b) below. Subject to the Approval
          and Imperial Bank's agreement to release its security interest in the
          trailer to be sold, Lessor agrees to execute documents reasonably
          required to effect the sale of the trailer as arranged by Lessee.

               (b) Provided all Monthly Rentals have been paid, on December 30,
          2000, Lessee shall purchase the Equipment (exclusive of the trailer
          sold pursuant to paragraph 12(a) above) for the price of $485,000
          (plus applicable sales tax) free and clear of all liens and
          encumbrances created by Lessor. Applicable sales tax on the purchase
          is due in full on January 1, 2001. Lessor agrees to finance the
          purchase price over a period of 18 months at 12.5% interest, with the
          first payment of $29,382.99 due January 1, 2001, followed by seventeen
          (17) consecutive monthly payments, each in the same amount, due on the
          first day of each month thereafter. Lessee agrees to execute such
          documents as Lessor shall reasonably require to evidence the foregoing
          obligation. Default in the payment of any of the installments shall
          constitute an Event of Default under the Lease, and Lessor shall be
          entitled to exercise its remedies under the Lease."

                                     Page 2

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                    ARTICLE TWO - REPRESENTATIONS, WARRANTIES

     2.1 REPRESENTATIONS AND WARRANTIES. In order to induce the Lessor to enter
into this Amendment, the Lessee represents and warrants to the Lessor that:

          (a) The Lessee has the power and authority and has taken all
action necessary to execute, deliver and perform its obligations under this
Amendment and all other agreements and instruments executed or delivered in
connection herewith and this Amendment and such other agreements and instruments
constitute the valid, binding and enforceable obligations of the Lessee.

          (b) The Lessee's representations and warranties contained in the Lease
are true and correct in all respects on and as of the date hereof as though made
on and as of the date hereof and no Event of Default has occurred and is
continuing as of the date hereof, except as expressly cured or waived by this
Amendment.

    2.2 ACKNOWLEDGMENT OF BORROWER. The Lessee expressly acknowledges and
agrees that as of the date of this Amendment, (a) all of the payments due under
the Lease have been assigned and are payable to Imperial Bank (the "Bank"), and
(b) as to the Bank only, it has no offsets, claims or defenses whatsoever
against any of the indebtedness owing under the Lease.

     2.3 WAIVER OF LATE CHARGES. The Lessor hereby waives the Lessee's
obligation to pay all late charges accruing under the Lease prior to July 14,
2000.

                       ARTICLE THREE - GENERAL PROVISIONS

     3.1 FULL FORCE AND EFFECT. Except as expressly amended hereby, the Lease,
the Schedule, and all other documents, agreements and instruments relating to
thereto are and shall remain unmodified and in full force and effect.

     3.2. COUNTERPARTS. This Amendment may be executed in any number of
counterparts, each of which when so executed and delivered shall be deemed to be
an original and that all of which taken together shall constitute one and the
same instrument, respectively. Delivery of an executed counterpart of this
Amendment by facsimile shall be equally effective as delivery of a manually
executed counterpart of this Amendment. Any party delivering an executed
counterpart by facsimile shall also deliver a manually executed counterpart of
this Amendment, but failure to do so shall not effect the validity,
enforceability, of binding effect of this Amendment.

     3.3 FINAL AGREEMENT. This Amendment is intended by the Lessor and the
Lessee to be the final, complete, and exclusive expression of the agreement
between them with respect

                                     Page 3

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to the subject matter hereof. This Amendment supersedes any and all prior oral
or written agreements relating to the subject matter hereof.

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed by their duly authorized officers as of the date first above
written.

"LESSOR"                                        "LESSEE"
Matrix Funding Corporation                      Iwerks Entertainment, Inc.

By:___________________________                  By:___________________________
      ___________,                                    Jeffrey M. Dahl,
      President                                       Chief Operating Officer

                                     CONSENT

     Imperial Bank hereby consents to the foregoing amendment. Imperial Bank
agrees to release its security interest in the trailer sold in accordance with
Section 12(a) of the Schedule provided the sales price of the trailer is not
less than $180,000, and the terms of the sale are otherwise reasonably
acceptable.

     Imperial Bank acknowledges, represents, and agrees that the Lessor's
statements contained in Section 5 of the Schedule, as amended hereby are true
and correct.

                                        Imperial Bank

                                        By ____________________
                                           Dennis DeLaPaz,
                                           Vice President

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