Document:

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EXHIBIT 10.12

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT, dated as of March 22, 2002 is by and between New Visual
Corporation, a Utah corporation ("Employer"), and RAY WILLENBERG, JR.
("Executive").

                                   WITNESSETH:
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         WHEREAS, Executive desires to enter into the employment of Employer,
and Employer desires to employ Executive provided that, in so doing, it can
protect its confidential information, business, accounts, patronage and
goodwill.

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

         SECTION 1. POSITION; DUTIES. Upon execution of this Agreement,
Executive will continue to serve as Chief Executive Officer of Employer pursuant
to the terms of this Agreement until June 1, 2002. Commencing June 1, 2002, (the
"Effective Date") Executive will cease service as Chief Executive Officer and
will commence service in the position of Executive Vice President. Executive
will continue his service as Chairman of the Board of Employer unless and until
replaced. Executive will continue his service as President of Employer's wholly
owned subsidiary, NV Entertainment, Inc. unless and until replaced. Executive
will report to the Board of Directors of the Employer and its designees.
Executive will perform the duties that the Board of Directors of the Employer
may from time to time reasonably direct, and such duties as may be specified for
his office in the Bylaws of the Employer. Executive will devote substantially
all of his business time, ability and attention to the business of Employer
during the Original Term and any Renewal Term of this Agreement.

         SECTION 2. TERM. The term of this Agreement shall commence on March 22,
2002 and will end three (3) years after the Effective Date of this Agreement
(hereafter the "Original Term"), unless terminated earlier pursuant to Section 4
of this Agreement. After the Original Term, this Agreement shall be
automatically renewed for successive terms of one (1) year each (each a "Renewal
Term") unless terminated earlier pursuant to Section 4 of this Agreement or
unless either party gives the other party sixty (60) days' written notice, prior
to the expiration of the Original Term or any Renewal Term, as the case may be,
of that party's intent to terminate this Agreement at the end of the Original
Term or any Renewal Term.

         SECTION 3. COMPENSATION. Subject to Section 4, as compensation for
Executive's services, and as compensation for Executive's covenants set forth in
this Agreement, including without limitation Section 6, the Employer agrees as
follows:

                  (a) BASE SALARY: During the Original Term and any Renewal
         Term, the Employer will pay Executive a base salary ("Base Salary") at
         the rate of $14,583.33 per month, prorated for any partial pay period.
         The Base Salary will be paid in accordance with the Employer's regular
         payroll practices and subject to increase by the Compensation Committee
         of the Board of Directors in its sole discretion.

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                  (b) ANNUAL BONUSES. Executive shall be entitled to receive
         annual bonuses as follows:

                  (i) an amount equal to two percent (2%) of the total annual
                  amount distributed to Employer by Top Secret Productions in
                  respect of the film with the working title "Step into Liquid,"
                  in each year during the term of this Agreement, up to a
                  maximum per year to be set by the Compensation Committee prior
                  to the Effective Date.

                  (ii) an amount equal to the Applicable Percentage (as defined
                  below) of gross proceeds received by the Employer from the
                  sale of its equity or debt securities to persons (other than
                  institutional investors) first introduced to Employer by
                  Executive or as a result of Executive's personal efforts, in
                  each case as reasonably determined by the Board of Directors.

                  (iii) an amount based upon his performance as determined in
                  the sole discretion of the Board of Directors.

                  As used herein, "Applicable Percentage" means 10% for the
         period from February 1, 2002 through May 31, 2002 (the "Initial
         Period") and 5% thereafter. Notwithstanding the foregoing, if NVC is
         liable to any broker or finder with respect to the sale for which the
         Applicable Percentage is determined, the Applicable Percentage means 5%
         for the Initial Period and 2.5% thereafter. Executive's bonuses shall
         be payable in accordance with Employer's policies at such time as the
         Employer determines but no later than the date bonuses are paid to
         executives generally. At the Executive's option, these bonuses shall be
         payable in cash or in an amount of shares of the Employer's common
         stock that equals the amount of the bonus based upon the market price
         of the Employer's common stock on the date that the bonus is paid.

                  (c) STOCK OPTIONS. Executive shall receive options to purchase
         100,000 shares of common stock of Employer pursuant to the Stock Option
         Agreement attached as EXHIBIT A. Executive acknowledges that this award
         is given in consideration of his agreement to terminate and waive all
         rights under his existing Employment Agreement with Employer, dated as
         of February 11, 2000 (the "Old Contract"), including his rights set
         forth therein to be paid annual salary increases, which as of the date
         hereof have been accrued but unpaid and total $50,000 in amount.
         Executive consents to the termination in whole of the Old Contract,
         which shall now be deemed null and void, and to the forfeiture of the
         payment of the accrued but unpaid amounts described above. Executive
         agrees that his rights and remedies as set forth in this Agreement are
         in lieu of those set forth in the Old Contract.

                  (d) MISCELLANEOUS: Executive shall be entitled to the
         following additional benefits:

                           (i) A car allowance not to exceed $500 per month;

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                           (ii) Reimbursement of all properly documented
                  business expenses, in accordance with the Employer's policy,
                  as may be modified from time to time, for reimbursement of
                  business expenses;

                           (iii) An annual paid vacation of twenty (20) business
                  days in accordance with the Employer's vacation policy for
                  Executives of the Employer generally; and

                           (iv) Such other benefits, including health benefits
                  and participation in Executive benefit plans, made available
                  to Executives of the Employer generally and provided as soon
                  as practical without violation of the Employer's policy terms.

         SECTION 4. TERMINATION; COMPENSATION UPON TERMINATION. Notwithstanding
the provisions of Section 2 of this Agreement, this Agreement and Executive's
employment shall be terminated upon:

                  (a) THE OCCURRENCE OF CAUSE. For purposes of this Agreement,
         Employer shall have "Cause" to terminate the Executive's employment
         hereunder only upon:

                           (i) The willful failure or neglect by the Executive
                  to substantially perform his assigned duties to the Employer
                  or any subsidiary (other than any such refusal resulting from
                  the Executive's disability or incapacity due to physical or
                  mental illness);

                           (ii) The engaging by the Executive in criminal
                  conduct or conduct constituting moral turpitude;

                           (iii) The willful insubordination of the Executive;

                           (iv) The embezzlement, theft or misappropriation by
                  the Executive of any property of Employer or its affiliates;

                           (v) Fraud, acts of dishonesty or misrepresentation,
                  or other acts (including any breach of the Executive's
                  covenants contained in this Agreement) that cause harm to
                  Employer or substantial damage to its reputation or that of
                  its subsidiaries (other than as a consequence of good faith
                  decisions made by the Executive in the normal performance of
                  the Executive's duties hereunder);

                           (vi) A conviction for or plea of nolo contendere to a
                  felony which carries a minimum prison sentence upon conviction
                  of one (1) year or longer;

                           (vii) Executive commits a material breach of this
                  Agreement or any written policies of Employer;

                           (viii) breach of Executive's fiduciary obligations to
                  the Employer or any of its subsidiaries; and/or

                           (ix) any chemical dependence which materially affects
                  the performance of Executive's duties and responsibilities to
                  the Employer or any of its subsidiaries;

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         PROVIDED, that in the case of the misconduct set forth in clauses (i)
         and (ix) above, such misconduct shall continue for a period of thirty
         (30) days following written notice thereof by Employer to Employee.

         Notwithstanding the foregoing, Executive shall not be deemed to have
been terminated for Cause unless and until there shall be delivered to him a
copy of a duly adopted resolution of the Employer's Board of Directors finding
that the Employer has "Cause" to terminate Executive as contemplated in this
Section 4(a). If Employer terminates Executive's employment for Cause, Employer
will pay Executive his Base Salary in effect on the date of termination through
the date of termination, prorated for any partial payroll period.

                  (b) EXECUTIVE'S DEATH. If this agreement is terminated due to
         Executive's death, the Employer will pay Executive's estate his Base
         Salary in effect on the date of termination through the date of
         termination, prorated for any partial payroll period.

                  (c) EXECUTIVE'S DISABILITY. For purposes of this Agreement,
         "Disability" means a disability by reason of the occurrence of any
         injury or disease (including mental illness) or a physical or mental
         condition that, in the opinion of an appropriate physician, (i) results
         in Executive becoming unable adequately to perform his customary duties
         for the Employer, either with or without reasonable accommodation, (ii)
         has lasted for a consecutive period of at least ninety (90) days, and
         (iii) is expected to continue to last for more than an additional
         consecutive period of at least ninety (90) days. If Executive's
         employment is terminated due to disability, Employer will pay Executive
         his Base Salary in effect on the date of termination through the date
         of termination, prorated for any partial payroll period.

                  (d) TERMINATION BY EMPLOYER WITHOUT CAUSE. Employer may
         terminate this Agreement and Executive's employment without Cause at
         any time, with or without notice. If Employer terminates Executive's
         employment without Cause, Employer will pay Executive (i) his Base
         Salary in effect on the date of termination through the date of
         termination, prorated for any partial payroll period and (ii) a
         severance payment equal to 24 months of Executive's Base Salary in
         effect on the date of termination.

                  (e) VOLUNTARY TERMINATION BY EXECUTIVE. Executive may
         terminate this Agreement at any time upon delivering thirty (30) days'
         written notice to the Employer. If Executive voluntarily terminates
         this Agreement, other than for "Good Reason," as hereinafter defined,
         Employer will pay Executive his Base Salary in effect on the date of
         termination through the date of termination, prorated for any partial
         payroll period. On or after the date the Employer receives notice of
         Executive's resignation (other than resignation for "Good Reason," as
         defined below), the Employer may, at its option, pay Executive his Base
         Salary through the effective date of his resignation and terminate his
         employment immediately.

                  (f) TERMINATION BY EXECUTIVE FOR GOOD REASON. Executive may,
         within sixty (60) days after the occurrence of "Good Reason," as
         defined below, voluntarily terminate his employment upon thirty (30)
         days written notice thereof to Employer. If Executive voluntarily
         terminates this Agreement for "Good Reason," as defined below, Employer

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         will pay Executive (i) his Base Salary in effect on the date of
         termination through the date of termination, prorated for any partial
         payroll period and (ii) a severance payment equal to 24 months of
         Executive's Base Salary in effect on the date of termination. On or
         after the date the Employer receives notice of Executive's resignation
         for "Good Reason," as defined below, the Employer may, at its option,
         pay the amounts set forth in this Section 4(f) and terminate his
         employment immediately. For purposes of this Agreement, "Good Reason"
         shall mean the occurrence of any of the following events: (i) a
         material reduction in Executive's authority or responsibility, but not
         including termination of Executive for "Cause;" (ii) reduction in the
         Base Salary payable to Executive; or (iii) Employer otherwise commits a
         material breach of this Agreement; provided that "Good Reason" shall
         not include the temporary appointment of another person to fulfill
         Executive's responsibilities during any period of disability of
         Executive.

                  (g) TERMINATION BY EXECUTIVE OR EMPLOYEE AFTER CHANGE OF
         CONTROL. Within nine months after the occurrence of a "Change of
         Control," as defined below, Employer may terminate Executive's
         employment and this Agreement without Cause and, upon thirty (30) days'
         written notice to Employer, Executive may terminate his employment and
         this Agreement for Good Reason (as defined in Section 4(f) above). If
         Executive's employment and this Agreement is terminated pursuant to
         this Section 4(g), Employer will pay Executive (i) his Base Salary in
         effect on the date of termination through the date of termination,
         prorated for any partial payroll period and (ii) a severance payment
         equal to Executive's Base Salary in effect on the date of termination
         and the amount Executive last received under Section 3(b) of this
         Agreement, each for a period of two (2) years. On or after the date the
         Employer receives notice of Executive's termination under this Section
         4(g), the Employer may, at its option, pay the amounts set forth in
         this Section 4(g) and terminate Executive's employment immediately.
         This Section 4(g) shall not apply if, after a Change of Control, the
         Employer has Cause (as defined in Section 4(a) above) to terminate
         Executive's employment or Executive does not have Good Reason (as
         defined in Section 4(f) above) to terminate his employment. For
         purposes of this Agreement, a "Change of Control" shall be deemed to
         exist upon the occurrence of any of the following: (i) the Employer is
         merged or consolidated or reorganized into or with another corporation,
         and as result of such merger, consolidation, or reorganization less
         than a majority of the combined voting power of the then-outstanding
         securities of such corporation or entity immediately after such
         transaction is held in the aggregate by the holders of Voting Stock (as
         hereafter defined) of the Employer immediately prior to such
         transaction; (ii) the Employer sells or otherwise transfers all or
         substantially all of its assets to any other corporation or legal
         person, less than a majority of the combined voting power of the
         then-outstanding securities of such corporation or legal person
         immediately after such sale or transfer is held in the aggregate by the
         holders of the Voting Stock of the Employer immediately prior to such
         sale or transfer, (iii) if during any period of twenty-four (24) months
         following a merger, tender offer, consolidation, sale of assets, or
         contested election, at least a majority of the Board of Directors of
         the Employer shall cease to be "Continuing Directors." For purposes of

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         this Section 4(g), "Continuing Directors" shall mean directors of the
         Employer prior to such transaction or who subsequently became directors
         and whose election or nomination for election by the stockholders of
         the Employer was approved by a vote of at least two-thirds (2/3) of the
         directors then still in office prior to such transaction. The term
         "Voting Stock" shall mean, for purposes of this Section 4(g), the
         then-outstanding securities entitled to vote generally in the election
         of directors of the Employer.

                  (h) OTHER POSITIONS WITH EMPLOYER OR SUBSIDIARIES. Upon the
         termination of Executive's employment with Employer, Executive will,
         upon request, resign from any position he then holds as an officer or
         director of Employer or any subsidiary of Employer. If Executive fails
         to do so within three days of such request, Executive agrees that the
         Board of Directors of the Employer or any such subsidiary, as
         applicable, shall have good cause to remove him from any and all such
         positions.

         SECTION 5. NON-SOLICITATION; NON-INTERFERENCE. Executive agrees, during
the term hereof and for a period of one (1) year thereafter, not to solicit,
influence or attempt to influence any employee of Employer to terminate his or
her employment or other contractual relationship with Employer for any reason
including, without limitation, working for a competitor. Additionally, Executive
agrees that during the term hereof and for a period of one (1) year thereafter
Executive will not directly or indirectly attempt to solicit or conduct business
with any person or entity that is an active or current client, customer or
active prospect of Employer at the time of Executive's termination if such
business would be in competition with Employer's business. The terms "client,"
"customer" and "active prospect" include, but are not limited to, any person or
entity solicited or contacted by Executive or Employer directly or indirectly
during the term hereof. Executive acknowledges his duty, both by contract and
common law, not to interfere with contractual relationships of Employer.

         The Executive understands that the covenants contained in this Section
5 are essential elements of the transaction contemplated by this Agreement and,
but for the agreement of the Executive to Section 5, Employer would not have
agreed to enter into such transaction. The Executive has been advised to consult
with counsel in order to be informed in all respects concerning the
reasonableness and propriety of Section 5 and its provisions with specific
regard to the nature of the business conducted by Employer. Executive further
agrees and acknowledges that this Agreement (1) is reasonable as to length of
time, scope and geographic area for purposes of protecting the commercial
advantages enjoyed by Employer, (2) will not interfere with Executive's ability
to pursue a proper livelihood in the event of termination of this Agreement with
Employer, (3) does not impose a greater restraint than is necessary to protect
the goodwill or business interests of Employer and (4) is adequately paid for in
the consideration derived by Executive under this Agreement. Employer and
Executive also agree that the court (under Section 17(a)) or arbitrators (under
Section 17(b)) have jurisdiction to modify any provisions of this covenant in
accordance with the court's or arbitrators' respective ruling as to
reasonableness or scope of application and that, consistent with Section 12 of
this Agreement, this Agreement shall remain enforceable as modified or amended
in the jurisdiction where this Agreement is so modified or amended.

         SECTION 6. NONDISCLOSURE OF PROPRIETARY INFORMATION. Executive
acknowledges that he has received or may receive information relating to
Employer's and any of its affiliates' assets, operations, clients, and past,
present, and future businesses, including without limitation developments,
technical data, intellectual property, specifications, designs, ideas, product

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plans, research and development, personal information, financial information,
customer lists, business methods and operations, strategic plans, marketing
plans and pricing information, all of which are proprietary to Employer and
involve trade secrets, know-how, techniques, and combinations of known
information of a character regarded by Employer as confidential, as well as
other information that Employer has indicated to be confidential or which, by
the nature of the information or the circumstances of its disclosure, Executive
ought reasonably to consider confidential (all of the foregoing, collectively,
the "Proprietary Information"). The Proprietary Information does not include
information which (i) at the time it is disclosed by the Executive was already
in the public domain; (ii) is subsequently published or publicly disclosed by
persons other than Executive through no fault of Executive; (iii) is
subsequently acquired by Executive from a third party having no obligation of
confidentiality toward Employer with respect to such information; or (iv) is
known to Executive at the time of disclosure, provided that Executive shall have
the burden of establishing such prior knowledge by competent written proof. If
Executive is compelled by law to disclose Confidential Information, he shall use
his best efforts to give Employer ten (10) days prior written notice of
compelled disclosure and shall limit such disclosure to the extent legally
possible.

         Executive agrees that Executive will not disclose, either during the
term of this Agreement or at any time after termination of this Agreement, any
Proprietary Information to any person or entity, except in the course of
Executive's duties on behalf of Employer or with Employer's consent, and that,
similarly, without Employer's consent, will not use such information for the
benefit of any person or entity other than Employer at any time. Executive
agrees that upon termination of this Agreement, Executive will deposit with or
return to Employer all copies (in any media, including, without limitation,
electronic storage media) of documents, records, notebooks or any other
information or documentation of Employer's Proprietary Information, and all
derivatives thereof, whether the Proprietary Information or documentation was
developed or prepared by Executive or by others. Executive acknowledges that
this covenant of nondisclosure is an integral term of this Agreement and is
given in consideration of the engagement of Executive and the other
consideration granted in this Agreement.

         SECTION 7. RIGHTS IN WORK PRODUCT.

                  (a) WORK PRODUCT. The work product of Executive's services,
         including all results and all ideas, developments, designs, inventions,
         derivative works and improvements that Executive makes, conceives or
         reduces to practice during the course of his performance under this
         Agreement, either solely or jointly with others and either on or off
         Employer's premises (collectively, the "Work Product") shall be the
         exclusive property of Employer. The Work Product shall be deemed
         Employer's proprietary information and shall not be disclosed to anyone
         outside of Employer, or used by Executive or others without the prior
         written consent of Employer. Any article, paper, treatise, computer
         program, or report prepared by Executive pursuant to this Agreement, or
         which discusses the services performed hereunder or the results thereof
         ("Written Data") and which qualifies as a "work-made-for-hire" under
         the copyright laws of the United States, shall be the exclusive
         property of Employer as a "work-made-for-hire." All right, title, and

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         interest in and to any Written Data or other Work Product of Executive
         hereunder that does not qualify as a "work-made-for-hire" shall be
         deemed to have been automatically transferred to Employer from the date
         of inception thereof. Upon Employer's request, Executive shall execute
         any document and render such other assistance as reasonably necessary
         to perfect the full right, title, and interest worldwide in the Written
         Data, including formal conveyance of copyright. Written Data shall not
         be published or submitted for publication by Executive without the
         prior, written approval of Employer. Further, if any such article,
         paper, treatise, computer program, or report includes work previously
         copyrighted by Executive, Executive hereby grants Employer a
         nonexclusive, worldwide, irrevocable, paid-up license under such
         copyrights to reproduce, distribute, and use the works in any manner.

                  (b) APPLICATION OF CALIFORNIA LABOR CODE. This Agreement does
         not apply to an invention that qualifies fully under the provisions of
         the California Labor Code, Article 3.5, Section 2870 (a copy of such
         section is attached hereto as EXHIBIT B).

         SECTION 8. EXECUTIVE'S ACKNOWLEDGMENTS AND REPRESENTATIONS. Executive
represents and warrants that he is free to enter into this Agreement and to
perform each of the terms and covenants of it. Executive represents and warrants
that he is not restricted or prohibited, contractually or otherwise, from
entering into and performing this Agreement, and that his execution and
performance of this Agreement is not a violation or breach of any other
agreement between Executive and any other person or entity.

         SECTION 9. RESERVED.

         SECTION 10. WAIVER OF BREACH. The actual or apparent waiver by either
party to this Agreement of a breach of any provision of this Agreement will not
operate or be construed as an actual or constructive waiver of that breach or
any subsequent breach by any party. Waivers are not effective unless in writing
and signed by the party granting the waiver.

         SECTION 11. MULTIPLE COUNTERPARTS. This Agreement may be executed in
counterparts, each of which for all purposes is to be deemed an original, and
all of which constitute, collectively, one agreement. In making proof of this
Agreement, it will not be necessary to produce or account for more than one
counterpart of this Agreement. Furthermore, a photocopy of any counterpart will
be valid and have the same effect as an original.

         SECTION 12. SEVERABILITY AND SAVINGS CLAUSE. If any one or more of the
provisions or subjects contained in this Agreement is for any reason held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability will not affect the validity and enforceability of any other
provisions or subjects of this Agreement, and it is the intention of the parties
that there shall be substituted for such invalid, illegal or unenforceable
provision a provision as similar to such provision as may be possible and yet be
valid, legal and enforceable. Further, should any provisions of this Agreement
ever be reformed or rewritten by a judicial or arbitration body, those
provisions as rewritten will be binding on Executive and the Employer as if
contained in the original Agreement.

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         SECTION 13. SUCCESSORS; SURVIVAL; AFFILIATES. This Agreement and the
rights and obligations under this Agreement will be binding upon and inure to
the benefit of the parties to this Agreement and their respective legal
representatives, and will also bind and inure to the benefit of any successor of
the Employer by merger or consolidation or any assignee of all or substantially
all of the Employer's assets. Except to any such successor or assignee of the
Employer, neither this Agreement nor any rights or benefits under this Agreement
may be assigned by either party to this Agreement. Each covenant on the part of
Executive contained in Section 5 shall be construed as an agreement independent
of any other provision of this Agreement and shall survive the termination of
this Agreement. The existence of any claim or cause of action of Executive
against the Employer, whether predicated on this Agreement or otherwise, shall
not constitute a defense to the enforcement by the Employer of any such
covenant. The protective covenants in Sections 5, 6 and 7 shall also inure to
the benefit of the Employer's affiliates (as hereinafter defined) and these
covenants shall be enforceable against Executive by each of such affiliates as
third party beneficiaries. An "affiliate" of the Employer is any person or
entity that directly, or indirectly through one or many intermediaries, controls
or is controlled by, or is under common control with, the Employer.

         SECTION 14. ENTIRE AGREEMENT. This Agreement supersedes that certain
Employment Agreement dated February 11, 2002, between Executive and Employer,
and any and all other agreements, either oral or in writing, between the parties
with respect to Executive's employment by the Employer (including any prior
offer letter or employment agreement) and contains all of the covenants and
agreements between the parties with respect to such employment. This Agreement
can only be changed by the parties in writing, executed by the party against
whom enforcement of any modifications may be sought. Notwithstanding the
foregoing, the Stock Option Agreements entered into between Executive and
Employer on February 11, 2000, March 5, 2001 and February 25, 2002 shall remain
in effect pursuant to their terms.

         SECTION 15. GOVERNING LAW. This Agreement will be governed by and
construed in accordance with the substantive laws of the State of California
without regard to conflict of law provisions.

         SECTION 16. NOTICES. Any notice under this Agreement will be in writing
and will be deemed to have been duly given when delivered personally or three
(3) days after such notice is deposited in the United States mail, registered,
postage prepaid, and addressed, to the Employer, at its principal office, or to
Executive at Executive's last permanent address as shown on the Employer's
records.

         SECTION 17. REMEDIES.

                  (a) INJUNCTIVE RELIEF. Executive agrees that a breach or
         threatened breach, based on reasonable and good faith evidence of a
         breach on Executive's part, of any covenant contained in Sections 5, 6
         or 7 will cause irreparable damage to the Employer. For that reason,
         Executive further agrees that the Employer is entitled as a matter of
         right to an injunction from any court of competent jurisdiction,
         restraining any further violation of any of such covenants by
         Executive, Executive's future employers, Executives, partners, agents
         or any person or entity related, directly or indirectly, to Executive.
         The right to an injunction is in addition to whatever other remedies
         the Employer may have, including specifically the recovery of damages.
         Venue for any action under this Section 17(a) shall be in the state or
         federal courts located in San Diego County, California.

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                  (b) ARBITRATION. Except to the extent provided in Section
         17(a) above, any controversy of any nature whatsoever, including but
         not limited to tort claims, statutory claims or contract disputes,
         between the parties to this Agreement (including their directors,
         officers, executives, agents, successors, assigns, heirs, executors and
         beneficiaries) relating to the formation, execution, interpretation,
         breach or enforcement of this Agreement, or relating to any other
         matter arising from Executive's employment with the Employer, shall be
         submitted to arbitration before the American Arbitration Association
         ("AAA"), in accordance with their rules then in effect and the
         substantive law of the State of California and the United States. The
         arbitration shall be held in San Diego County, California. Each of the
         parties to this Agreement shall appoint one person as an arbitrator to
         hear and determine such disputes, and if they should be unable to
         agree, then the two arbitrators shall choose a third arbitrator from a
         panel made up of experienced arbitrators selected pursuant to the
         procedures of the AAA and, once chosen, the third arbitrator's decision
         shall be final, binding and conclusive upon the parties to this
         Agreement. The arbitrators may not award punitive or exemplary damages
         for tort, contract or other common law claims, but will have the power
         to award such damages to the extent permitted by an applicable statute
         and to award prejudgment interest and attorneys' fees to the prevailing
         party. The award of the arbitration panel may be confirmed by any state
         or federal court of competent jurisdiction located in San Diego County,
         California, and may be challenged only upon the grounds provided in
         Section 10 of the Federal Arbitration Act, Title 9, United States Code.
         This agreement to arbitrate shall survive the execution of this
         Agreement. THE RIGHT TO ARBITRATE IS INTEGRAL TO AND NOT SEVERABLE FROM
         THIS AGREEMENT. THE PARTIES ACKNOWLEDGE THAT THEY HAVE READ THIS
         ARBITRATION AGREEMENT AND KNOWINGLY CONSENT TO ITS CONSEQUENCES,
         INCLUDING THE WAIVER OF THE RIGHT TO LITIGATE CERTAIN DISPUTES. The
         expenses of such arbitration will be borne by the losing party or in
         such proportion as the arbitrators decide. A material or anticipatory
         breach of any section of this Agreement will not release either party
         from the obligations of this Section 17.

                           [SIGNATURE PAGE TO FOLLOW]

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         The parties hereto have executed the Agreement as of the date first
mentioned above.

                                            NEW VISUAL CORPORATION

                                            By:  /S/ C. RICH WILSON III
                                                 ----------------------
                                                 Name: C. Rich Wilson III
                                                 Title: VP Bus. Dev., Corp. Sec.

                                            /S/ RAY WILLENBERG, JR.
                                            -----------------------
                                            Ray Willenberg, Jr.

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                                    EXHIBIT A
                                    ---------

                             STOCK OPTION AGREEMENT
                                 (SEE ATTACHED)

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                                    EXHIBIT B
                                    ---------

                       CALIFORNIA LABOR CODE SECTION 2870
                       ----------------------------------

               INVENTIONS ON OWN TIME -- EXEMPTION FROM AGREEMENT
               --------------------------------------------------

         (a) Any provision in an employment agreement which provides that an
employee shall assign, or offer to assign, any of his or her rights in an
invention to his or her employer shall not apply to an invention that the
employee developed entirely on his or her own time without using the employer's
equipment, supplies, facilities, or trade secret information except for those
inventions that either:

                  (1) Relate at the time of conception or reduction to practice
of the invention to the employer's business, or actual or demonstrably
anticipated research or development of the employer; or

                  (2) Result from any work performed by the employee for the
employer.

         (b) To the extent a provision in an employment agreement purports to
require an employee to assign an invention otherwise excluded from being
required to be assigned under subdivision (a), the provision is against the
public policy of this state and is unenforceable.<PAGE>
EXHIBIT 10.13

                             STOCK OPTION AGREEMENT
                                       OF
                             NEW VISUAL CORPORATION

         STOCK OPTION AGREEMENT (this "Agreement") entered into as of this 22nd
day of March, 2002, between NEW VISUAL CORPORATION, a Utah corporation (the
"Corporation"), and RAY WILLENBERG, JR. (the "Optionee," which term as used
herein shall be deemed to include any successor to the Optionee by will or by
the laws of descent and distribution, unless the context shall otherwise
require).

         The Board of Directors of the Corporation approved the issuance to the
Optionee, effective as of the date set forth above, of a nonqualified stock
option to purchase up to an aggregate of 100,000 shares of the common stock, par
value $.001 per share, of the Corporation (the "Common Stock"), at an exercise
price of $1.02 per share (the "Option Price"), upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the mutual premises and
undertakings hereinafter set forth, the parties hereto agree as follows:

         1. OPTION; OPTION PRICE. The Board of Directors hereby grants as of the
date of this Agreement to the Optionee the option (the "Option") to purchase,
subject to the terms and conditions of this Agreement, 100,000 shares of the
Common Stock of the Corporation at an exercise price per share equal to the
Option Price.

         2. TERM. The term (the "Option Term") of the Option shall commence on
the date of this Agreement and shall terminate on March 22, 2012, unless such
Option shall theretofore have been terminated in accordance with the terms
hereof.

         3. VESTING.

                  (a) Subject to the provisions of Sections 3(b), 4, 5 and 8
hereof, the Option shall vest and become exerciable for 100,000 shares of Common
Stock on the date hereof.

                  (b) Subject to the provisions of Sections 5 and 8 hereof, the
shares as to which the Option is exercisable may be purchased at any time prior
to the expiration or termination of the Option.

         4. TERMINATION OF OPTION. The unexercised portion of the Option shall
automatically and without notice terminate and become null and void at the time
of the earliest to occur of the following:

                  (a) one (1) year after the date that Optionee ceases to be a
director or employee of the Company regardless of the reason therefor; or

                  (b) the expiration date of the term of the Option.

<PAGE>

         5. PROCEDURE FOR EXERCISE.

                  (a) Subject to the requirements of Section 8, the Option may
be exercised, from time to time, in whole or in part (but for the purchase of a
whole number of shares only), by delivery of a written notice (the "Notice")
from the Optionee to the Secretary of the Corporation, which Notice shall:

                           (i) state that the Optionee elects to exercise the
Option;

                           (ii) state the number of shares with respect to which
the Option is being exercised (the "Optioned Shares");

                           (iii) state the date upon which the Optionee desires
to consummate the purchase of the Optioned Shares (which date must be prior to
the termination of such Option and no later than thirty (30) days after the date
of receipt of such Notice);

                           (iv) include any representations of the Optionee
required under Section 8(c); and

                           (v) if the Option shall be exercised pursuant to
Section 10 by any person other than the Optionee, include evidence to the
satisfaction of the Board of Directors of the right of such person to exercise
the Option.

                  (b) Payment of the Option Price for the Optioned Shares may be
made (i) in U.S. dollars by personal or company check, bank draft or money order
payable to the order of the Corporation or by wire transfer or (ii) by delivery
of such other consideration as the Board of Directors may deem acceptable.

                  (c) The Corporation shall issue a stock certificate in the
name of the Optionee (or such other person exercising the Option in accordance
with the provisions of Section 10) for the Optioned Shares as soon as
practicable after receipt of the Notice and payment of the aggregate Option
Price for such shares.

         6. NO RIGHTS AS A STOCKHOLDER. The Optionee shall have no rights as a
stockholder of the Corporation with respect to any Optioned Shares until the
date the Optionee or, if Optionee is a natural person, his nominee (which, for
purposes of this Agreement, shall include any third party agent selected by the
Board of Directors to hold such Optioned Shares on behalf of the Optionee),
guardian or legal representative is the holder of record of such Optioned
Shares.

         7. ADJUSTMENTS.

                  (a) If at any time while the Option is outstanding, there
shall be any increase or decrease in the number of issued and outstanding shares
of Common Stock through the declaration of a stock dividend, stock split,
combination of shares or through any recapitalization resulting in a stock
split-up, spin-off, combination or exchange of shares of Common Stock, then and
in each such event appropriate adjustment shall be made in the number of shares
and the exercise price per share covered by the Option, so that the same
proportion of the Corporation's issued and outstanding shares of Common Stock
shall remain subject to purchase at the same aggregate exercise price.

                                       2
<PAGE>

                  (b) Except as otherwise expressly provided herein, the
issuance by the Corporation of shares of its capital stock of any class, or
securities convertible into shares of capital stock of any class, either in
connection with a direct sale or upon the exercise of rights (issued for
adequate consideration) or warrants (issued for adequate consideration) to
subscribe therefor, or upon conversion of shares or obligations (issued for
adequate consideration) of the Corporation convertible into such shares or other
securities, shall not affect, and no adjustment by reason thereof shall be made
with respect to, the number of or exercise price of shares of Common Stock
covered by the Option.

                  (c) Without limiting the generality of the foregoing, the
existence of the Option shall not affect in any manner the right or power of the
Corporation to make, authorize or consummate (i) any or all adjustments,
recapitalizations, reorganizations or other changes in the Corporation's capital
structure or its business; (ii) any merger or consolidation of the Corporation;
(iii) any issue by the Corporation of debt securities, or preferred or
preference stock that would rank above the shares of Common Stock covered by the
Option; (iv) the dissolution or liquidation of the Corporation; (v) any sale,
transfer or assignment of all or any part of the assets or business of the
Corporation; or (vi) any other corporate act or proceeding, whether of a similar
character or otherwise.

                  (d) If the Corporation shall consummate any merger,
consolidation, business combination or other reorganization in which holders of
shares of Common Stock are entitled to receive in respect of such shares any
securities, cash and/or other consideration (including a different number of
shares of Common Stock) (collectively, a "Reorganization"), this Option shall
thereafter be exercisable, in accordance with this Agreement, only for the kind
and amount of securities, cash and/or other consideration receivable upon such
Reorganization by a holder of the same number of shares of Common Stock as are
subject to this Option immediately prior to such Reorganization, and any
adjustments will be made to the terms of this Option, and this Agreement, to
give effect to the Reorganization.

         8. ADDITIONAL PROVISIONS RELATED TO EXERCISE.

                  (a) The Option shall be exercisable only in accordance with
this Agreement, including the provisions regarding the period when the Option
may be exercised and the number of shares of Common Stock that may be acquired
upon exercise.

                  (b) The Option may not be exercised as to less than one
hundred (100) shares of Common Stock at any one time unless less than one
hundred (100) shares of Common Stock remain to be purchased upon the exercise of
the Option.

                  (c) To exercise the Option, the Optionee shall follow the
provisions of Section 5 hereof. Upon the exercise of the Option at a time when
there is not in effect a registration statement under the Securities Act of
1933, as amended (the "Securities Act") relating to the shares of Common Stock
issuable upon exercise of the Option, the Board of Directors in its discretion
may, as a condition to the exercise of the Option, require the Optionee (i) to
represent in writing that the shares of Common Stock received upon exercise of

                                       3
<PAGE>

the Option are being acquired for investment and not with a view to distribution
and (ii) to make such other representations and warranties as are deemed
appropriate by counsel to the Corporation or any underwriters or prospective
underwriters (including lock-up options). No Option may be exercised and no
shares of Common Stock shall be issued and delivered upon the exercise of the
Option unless and until the Corporation and/or the Optionee shall have complied
with all applicable federal or state registration, listing and/or qualification
requirements and all other requirements of law or of any regulatory agencies
having jurisdiction.

                  (d) Stock certificates representing shares of Common Stock
acquired upon the exercise of the Option that have not been registered under the
Securities Act shall, if required by the Board of Directors, bear the following
legend:

         "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT").
         THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
         ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES
         UNDER THE ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION OR AN
         OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH
         REGISTRATION IS NOT REQUIRED."

                  (e) The exercise of each Option and the issuance of shares in
connection with the exercise of an Option shall, in all cases, be subject to the
satisfaction of withholding tax.

         9. RESTRICTION ON TRANSFER. The Option may not be assigned or
transferred (which shall be deemed to include with respect to an Optionee that
is an entity, a reorganization or merger or consolidation with any other person,
entity or corporation) except, if Optionee is a natural person, by will or by
the laws of descent and distribution or pursuant to a qualified domestic
relations order as defined in the Code, and may be exercised during the lifetime
or existence of the Optionee, as applicable, only by the Optionee or, if
Optionee is a natural person, the Optionee's guardian or legal representative or
assignee pursuant to a qualified domestic relations order. If the Optionee (who
is a natural person) dies, the Option shall thereafter be exercisable, during
the period specified in Section 4(a), by his executors or administrators or by a
person who acquired the right to exercise the Option by bequest or inheritance
to the full extent to which the Option was exercisable by the Optionee at the
time of his death. The Option shall not be subject to execution, attachment or
similar process. Any attempted assignment or transfer of the Option contrary to
the provisions hereof, and the levy of any execution, attachment or similar
process upon the Option, shall be null and void and without effect.

         10. NOTICES. All notices or other communications which are required or
permitted hereunder shall be in writing and sufficient if (i) personally
delivered, (ii) sent by nationally-recognized overnight courier or (iii) sent by
registered or certified mail, postage prepaid, return receipt requested,
addressed as follows:

                                       4
<PAGE>

                  if to the Optionee, to the address set forth on the signature
                  page hereto; and

                  if to the Corporation, to:

                           New Visual Corporation
                           5920 Friars Road, Suite 104
                           San Diego, California  92108
                           Attention:  Secretary

or to such other address as the party to whom notice is to be given may have
furnished to each other party in writing in accordance herewith. Any such
communication shall be deemed to have been given (i) when delivered, if
personally delivered, (ii) on the first Business Day (as hereinafter defined)
after dispatch, if sent by nationally-recognized overnight courier and (iii) on
the third Business Day following the date on which the piece of mail containing
such communication is posted, if sent by mail. As used herein, "Business Day"
means a day that is not a Saturday, Sunday or a day on which banking
institutions in the city to which the notice or communication is to be sent are
not required to be open.

         11. NO WAIVER. No waiver of any breach or condition of this Agreement
shall be deemed to be a waiver of any other or subsequent breach or condition,
whether of like or different nature.

         12. OPTIONEE UNDERTAKING. The Optionee hereby agrees to take whatever
additional actions and execute whatever additional documents the Corporation or
its counsel may in their reasonable judgment deem necessary or advisable in
order to carry out or effect one or more of the obligations or restrictions
imposed on the Optionee pursuant to the express provisions of this Agreement.

         13. MODIFICATION OF RIGHTS. The rights of the Optionee are subject to
modification and termination in certain events as provided in this Agreement.

         14. AMENDMENTS. The Board of Directors may, insofar as permitted by
applicable law, rule or regulation, from time to time suspend or discontinue
this Agreement or revise or amend it in any respect whatsoever, and this
Agreement as so revised or amended will govern the Option hereunder; PROVIDED,
HOWEVER, that no such revision or amendment shall alter, impair or diminish any
rights or obligations under the Option without the written consent of the
Optionee.

         15. ARBITRATION. Any disputes between the parties to this Agreement
relating to the formation, execution, interpretation, breach or enforcement of
this Agreement, or relating to any other matter arising from the transactions
contemplated herein, shall be submitted to arbitration before the American
Arbitration Association ("AAA"), in accordance with their rules then in effect
and the substantive law of the State of Utah and the United States. The
arbitration shall be held in San Diego, California. Each of the parties to this
Agreement shall appoint one person as an arbitrator to hear and determine such
disputes, and if they should be unable to agree, then the two arbitrators shall
choose a third arbitrator from a panel made up of experienced arbitrators
selected pursuant to the procedures of the AAA and, once chosen, the third
arbitrator's decision shall be final, binding and conclusive upon the parties to
this Agreement. The arbitrators may not award punitive or exemplary damages for
contract claims but will have the power to award pre-judgment interest and
attorneys' fees to the prevailing party. The award of the arbitration panel may

                                       5
<PAGE>

be confirmed by any state or federal court of competent jurisdiction located in
San Diego, California, and may be challenged only upon the grounds provided in
Section 10 of the Federal Arbitration Act, Title 9, United States Code. This
agreement to arbitrate shall survive the execution of this Agreement. THE RIGHT
TO ARBITRATE IS INTEGRAL TO AND NOT SEVERABLE FROM THIS AGREEMENT. THE PARTIES
ACKNOWLEDGE THAT THEY HAVE READ THIS ARBITRATION AGREEMENT AND KNOWINGLY CONSENT
TO ITS CONSEQUENCES, INCLUDING THE WAIVER OF THE RIGHT TO LITIGATE CERTAIN
DISPUTES. The expenses of such arbitration will be borne by the losing party or
in such proportion as the arbitrators decide. A material or anticipatory breach
of any section of this Agreement will not release either party from the
obligations of this Section 15.

         16. INFORMATION TO OPTIONEE.

                  (a) The Board of Directors in its sole discretion shall
determine what, if any, financial and other information shall be provided to
Optionee and when such financial and other information shall be provided after
giving consideration to applicable federal and state laws, rules and
regulations, including without limitation applicable federal and state
securities laws, rules and regulations.

                  (b) Optionee hereby agrees that any financial and other
information provided to Optionee by the Corporation is confidential and Optionee
shall maintain the confidentiality of such financial and other information,
shall not disclose such information to third parties, and shall not use the
information for any purpose other than evaluating an investment in the Common
Stock. Optionee expressly acknowledges that the number of shares exercisable
under options granted hereunder, and the terms thereof, shall be confidential.
The Board of Directors may impose other restrictions on the access to and use of
such confidential information and may require Optionee to further acknowledge
the Optionee's obligations under this Section (which acknowledgment shall not be
a condition to the Optionee's obligations under this Section 16).

         17. GOVERNING LAW. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of Utah applicable to contracts made
and to be wholly performed therein.

         18. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument.

         19. ENTIRE AGREEMENT. This Agreement constitute the entire agreement
between the parties with respect to the subject matter hereof, and supersede all
previously written or oral negotiations, commitments, representations and
agreements with respect thereto.

                                       6
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

                                             NEW VISUAL CORPORATION

                                             By:      /S/ C. RICH WILSON III
                                                      ----------------------
                                             Name:    C. Rich Wilson III
                                             Title:   VP Bus. Dev., Corp. Sec.

                                             OPTIONEE:

                                             /S/ RAY WILLENBERG, JR.
                                             -----------------------
                                             Ray Willenberg, Jr.

                                       7
<PAGE>

                               NOTICE OF EXERCISE
                                      UNDER
                             STOCK OPTION AGREEMENT
                             ----------------------

To:      New Visual Corporation (the "Corporation")

From:
         -----------------------------------

Date:
         -----------------------------------

         Pursuant to the Stock Option Agreement (the "Agreement") between the
Corporation and the undersigned effective March 22, 2002, the undersigned hereby
exercises the Option as follows:

--------------------------------------------------------------------------------
Number of shares of Common Stock the undersigned wishes to
purchase under the Option
--------------------------------------------------------------------------------
Exercise Price per share                                          $1.02
--------------------------------------------------------------------------------
Total Exercise Price                                              $
--------------------------------------------------------------------------------
Vested shares (pursuant to Section 3 of the Agreement))           100,000
--------------------------------------------------------------------------------
Number of shares the undersigned has previously purchased by
exercising the Option
--------------------------------------------------------------------------------
Expiration Date of the Option                                     March 22, 2012
--------------------------------------------------------------------------------

         The undersigned hereby represents, warrants, and covenants to the
Corporation that:

         a. The undersigned is acquiring the Common Stock for its own account,
for investment, and not for distribution or resale, and will make no transfer of
such Common Stock except in compliance with applicable federal and state
securities laws and in accordance with the provisions of the Agreement.

         b. The undersigned can bear the economic risk of the investment in the
Common Stock resulting from this exercise of the Option, including a total loss
of its investment.

         c. The undersigned is experienced in business and financial matters and
am capable of (i) evaluating the merits and risks of an investment in the Common
Stock; (ii) making an informed investment decision regarding exercise of the
Option; and (iii) protecting my interests in connection therewith.

         d. The undersigned has had a reasonable opportunity to conduct such
investigation as it deemed necessary for the purpose of making the decision to
invest in the Common Stock. The undersigned has had a reasonable opportunity to
ask questions of and receive answers from the Corporation concerning the
operations, affairs and financial condition of the Corporation.

         The undersigned acknowledges that it must pay the exercise price in
full and make appropriate arrangements for the payment of all federal, state and
local tax withholdings due with respect to the Option exercised herein, before
the stock certificate evidencing the shares of Common Stock resulting from this
exercise of the Option will be issued to the undersigned.

         Attached in full payment of the exercise price for the Option exercised
herein is a check made payable to the Corporation in the amount of
$------------.

                                            ____________________________________

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