Document:

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT ("Agreement") is made, entered
into, and effective as of July 8, 1998 ("Effective Date"), by and
between AMS Acquisition Corp., a Nevada corporation (the "Company")
and Paul Hentschl ("Employee").

                                      RECITALS

WHEREAS, the Company desires to benefit from Employee's
expertise and employ Employee and Employee is willing to accept such
employment.

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

                                     AGREEMENT

1.  Term and Duties.

The Company hereby employs Employee as President as of the
Effective Date for a period of three (3) years, at which time this
Agreement shall terminate unless extended by mutual agreement of the
parties.  Employee shall faithfully and diligently perform all
professional duties and acts as may be reasonably requested of
Employee by the Company or its officers consistent with the function
of a President in this or a similar company.

2.  Duties.

Employee agrees to perform Employee's services to the best of
Employee's ability.  Employee agrees throughout the term of this
Agreement to devote sufficient time, energy and skill to the
business of the Company and to the promotion of the best interests
of the Company.  Employee will be provided with appropriate
equipment, secretarial help, supplies, and other facilities and
services suitable to Employee's position and adequate for the
performance of his duties.  Employees duties shall include, but not
be limited to the Company's business development, costs, budgeting,
efficiency, and managing the workforce.

3.  Compensation.

3.1  Subject to the termination of this Agreement as
provided herein, the Company shall compensate Employee for his
services as follows (collectively referred to as the "Compensation"):

(a)  Employee shall receive an annual salary ("Salary") of
Eighty Four Thousand Dollars ($84,000.00) payable in semi-monthly
installments in accordance with the Company's practices, less normal
payroll deductions.

(b)  Employee shall receive, in addition to the Salary set
forth above, a cash bonus (the "Bonus"), payable quarterly, equal to
two percent (2%) of the

<PAGE>

gross revenues of the Company for the previous quarter, provided that
certain minimum revenue levels are met for each quarter according to
the following formula:

(1)  In year one (1) of this Agreement, the revenue
projections, by quarter, are as follows:

First Quarter (7/1/98 - 9/30/98)             $210,000
Second Quarter (10/1/98 - 12/31/98)          $230,000
Third Quarter (1/1/99 - 3/31/99)             $250,000
Fourth Quarter (4/1/99 - 6/30/99)            $310,000

For each quarter during year one (1), the Bonus will be
dependent upon the Company reaching the revenue projection for that
quarter.  If the projected revenue figure is met or exceeded,
Employee shall receive the two percent (2%) Bonus based upon the
actual revenue figure for the quarter.  If the projected revenue
figure is not met, no Bonus will be paid.

(2)  If, by the end of year one (1) of this Agreement, the
Company's revenues match or exceed its expenses, as determined by
generally accepted accounting principles, then a Bonus shall be
payable in years two (2) and three (3) of this Agreement according
to the same schedule set forth in 3.1(b)(1) above.  The parties
hereto agree to account for the revenues and expenses to each other
fully and in good faith.

(3)  The terms of the Bonus are subject to mutual
reevaluation and change as agreed to between the parties.

(c)  Employee shall be entitled to an automobile allowance,
payable to Employee or his assigns, not to exceed Four Hundred Fifty
Dollars ($450.00) per month.

(d)  At the completion of each of the one (1) year periods
called for under this Agreement, Employee shall have the option to
purchase Three Hundred Thirty Three Thousand Three Hundred Thirty
Three (333,333) shares (the "Shares") of the restricted (as that
term is defined under Rule 144 of the Securities Act of 1933) common
stock of Jones Naughton Entertainment, Inc., a Colorado corporation,
at the price of twenty five cents ($0.25) per share.  The options
granted hereunder shall be exercisable for a period of three (3)
years from the date Employee is entitled to exercise them.  If, at
the end of a given year, Employee has not exercised his options
hereunder, then the options shall be carried forward and added to
the next year's options.  If, in any of the three (3) years, the
Company's gross revenues exceed Two Million Dollars ($2,000,000),
then Employee shall receive the Shares free

<PAGE>

of charge as an additional bonus.  The Company agrees to obtain
the consent of Jones Naughton Entertainment, Inc. to this Section 3.1(d).

3.2  In addition to the Compensation set forth above, the
Company shall periodically review Employee's performance and
services rendered with a view to paying discretionary bonuses based
upon above-average or outstanding performance for a prior period.
Any such bonuses approved by the Company shall be paid to Employee
within 30 days of the grant thereof.

3.3  In addition to the Compensation stated above,
commencing with the Effective Date, Employee shall be eligible to
participate in a health insurance plan, including dependent
coverage, supplied by the Company, the terms and conditions of which
are substantially similar to those currently provided to Employee by
his employer.  In addition, Employee shall be entitled to
participate in a group life, workers' compensation, health plan, or
accidental insurance plan, the terms and conditions of which are
substantially similar to those currently provided to Employee by his
employer, which will be adopted by the Company for the benefit of
executive officers or employees.  Employee shall be entitled to such
sick leave and paid holidays and to such other perquisites of
employment as customarily are extended by the Company to executive
officers or employees.  In addition, Employee shall be entitled to
such other benefits as the Company may elect to provide generally,
from time to time, to executive officers or employees.

4.  Disclosure of Confidential Information.

4.1  Employee shall not, during the term of this
Agreement and thereafter, communicate, divulge, or use for the
benefit of himself or any other person, partnership, association, or
corporation, either directly or indirectly, any information or
knowledge concerning Company and any information, including but not
limited to pricing schedules, customer lists, communication
techniques, invoicing, and billing which may be communicated to
Employee by Company during the term of this Agreement.

4.2  Employee agrees that any and all customer lists,
pricing schedules, products, formulas, inventions, schematics,
techniques, and goods created by Employee while rendering services
to Company shall be considered the property of the Company which
shall own all rights and interest in the same.

4.3  Employee covenants and agrees that during the term
of this Agreement he will not do any act, or fail to do any act, the
result of which may be prejudicial or injurious to the business and
goodwill of the Company.

5.  Expenses.

The Company shall reimburse Employee for all reasonable
business related expenses incurred by Employee in the course of his
normal duties on behalf of the Company.   In reimbursing Employee
for expenses, the ordinary and usual business guidelines and
documentation requirements

<PAGE>

shall be adhered to by the Company and Employee.  Any expenses which,
individually or in the aggregate, exceed Five Hundred Dollars ($500.00)
must be consented to by the Company in writing prior to being incurred by
Employee.

6.  Termination.

6.1  Termination by the Company.  The Company reserves
the right to terminate this Agreement at any time for "cause".  For
the purposes of this Agreement, an event or occurrence constituting
"cause" shall include, but not be limited to:

6.1.1  Employee's failure or refusal, after notice thereof,
to perform specific directives of the Board of Directors of the
Company, when such directives are consistent with the scope and
nature of the Employee's duties and responsibilities as set forth
herein or the commission of any intentional tort by the Employee
against the Company, or any breach by the Employee of any of the
covenants set forth in paragraphs 4 or 9 of this Agreement;

6.1.2  Drunkenness or use of drugs which interferes with the
performance of Employee's obligations under this Agreement,
continuing after notice thereof;

6.1.3  Any act of dishonesty or moral turpitude by the
Employee which constitutes a crime under the laws of the place where
the act was committed;

6.1.4  Any willful or intentional act by Employee which,
although not a crime, is of such impropriety or magnitude that it
substantially adversely affects the business and the reputation of
the Company.

6.1.5  Any material breach by Employee of that certain Asset
Purchase Agreement dated as of June 30, 1998 by and between AMS
Acquisition Corp., a Nevada corporation, Affiliated Marketing
Services, Inc., a California corporation, and Paul Hentschl.

In the event Employee is terminated for cause as defined
herein, Employee shall not be entitled to any bonus, termination or
severance payment of any sort.

6.2  Termination upon Death or Disability.  This
Agreement shall be terminated upon the death of the Employee or, at
the Company's discretion, if the Employee suffers any physical or
mental disability that would prevent the performance of his duties
under this Agreement.  Such a termination, in the case of
disability, shall be effected by giving thirty (30) days written
notice of termination to Employee.

6.3  Termination by Employee.  This Agreement may be
terminated by the Employee by giving the Company at least thirty
(30) days notice in advance.  In the event that this Agreement is
terminated prior to the completion of the term of employment
specified herein, Employee shall

<PAGE>

be entitled to compensation earned by and vested in him prior to the
date of termination as provided for in this Agreement, computed pro-rata
up to and including that date.

7.  Binding Effect.

This Agreement shall be binding upon and inure to the benefit of
the parties hereto their respective devisees, legatees, heirs, legal
representatives, successors, and permitted assigns.  The preceding
sentence shall not affect any restriction on assignment set forth
elsewhere in this Agreement.

8.  Notices.

All notices provided for in this Agreement shall be in
writing signed by the party giving such notice, and delivered
personally or sent by overnight courier or messenger or sent by
registered or certified mail (air mail if overseas), return receipt
requested, or by telex, facsimile transmission, telegram or similar
means of communication.  Notices shall be deemed to have been
received on the date of personal delivery, telex, facsimile
transmission, telegram or similar means of communication, or if sent
by overnight courier or messenger, shall be deemed to have been
received on the next delivery day after deposit with the courier or
messenger, or if sent by certified or registered mail, return
receipt requested, shall be deemed to have been received on the
third business day after the date of mailing.  Notices shall be sent
to the addresses set forth below:

If to the Company:

AMS Acquisition Corporation
5681 Beach Boulevard, Suite 101
Buena Park, CA 90621
Attn: Joseph Naughton, Chief Executive Officer
Facsimile No.: (949) 994-3242

With a copy to:

The Law Offices of M. Richard Cutler
610 Newport Center Drive, Suite 800
Newport Beach, CA 92660
Attn: M. Richard Cutler, Esq.
Facsimile No.: (949) 719-1988

If to the Purchaser:

Paul Hentschl
13939 Barrymore
San Diego, CA 92129
Facsimile No.: (    )

<PAGE>

With a copy to:

Kennerson Schwartz Semerdjian & Haille LLP
101 West Broadway, Suite 480
San Diego, CA 92101
Attn: John K. Grant, Esq.
Facsimile No.: (619) 236-8827

9.  Assignment.

Subject to all other provisions of this Agreement, any attempt to
assign or transfer this Agreement or any of the rights conferred
hereby, by judicial process or otherwise, to any person, firm,
company, or corporation without the prior written consent of the
other party, shall be invalid, and may, at the option of such other
party, result in an incurable event of default resulting in
termination of this Agreement and all rights hereby conferred.

10. Choice of Law.

This Agreement and the rights of the parties hereunder shall be
governed by and construed in accordance with the laws of the State
of California including all matters of construction, validity,
performance, and enforcement and without giving effect to the
principles of conflict of laws.

11. Jurisdiction.

The parties submit to the jurisdiction of the Courts of the State
of California or a Federal Court empaneled in the State of
California for the resolution of all legal disputes arising under
the terms of this Agreement, including, but not limited to,
enforcement of any arbitration award.

12.  Entire Agreement.

Except as provided herein, this Agreement, including exhibits,
contains the entire agreement of the parties, and supersedes all
existing negotiations, representations, or agreements and all other
oral, written, or other communications between them concerning the
subject matter of this Agreement.  There are no representations,
agreements, arrangements, or understandings, oral or written,
between and among the parties hereto relating to the subject matter
of this Agreement that are not fully expressed herein.

13.  Severability.

If any provision of this Agreement is unenforceable, invalid, or
violates applicable law, such provision, or unenforceable portion of
such provision, shall be deemed stricken and shall not affect the
enforceability of any other provisions of this Agreement.

14.  Captions.

<PAGE>

The captions in this Agreement are inserted only as a matter of
convenience and for reference and shall not be deemed to define,
limit, enlarge, or describe the scope of this Agreement or the
relationship of the parties, and shall not affect this Agreement or
the construction of any provisions herein.

15.  Counterparts.

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

16.  Modification.

 No change, modification, addition, or amendment to this Agreement
shall be valid unless in writing and signed by all parties hereto.

17. Waiver.

No waiver of any breach, covenant, representation, warranty
or default of this Agreement by any party shall be considered to be
a waiver of any other breach, covenant, representation, warranty or
default of this Agreement.

18.  Interpretation

The terms and conditions of this Agreement shall be deemed to
have been prepared jointly by all of the Parties hereto. Any
ambiguity or uncertainty existing hereunder shall not be construed
against any one of the drafting parties, but shall be resolved by
reference to the other rules of interpretation of contracts as they
apply in the State of California.

19. Attorneys' Fees.

Except as otherwise provided herein, if a dispute should arise
between the parties including, but not limited to arbitration, the
prevailing party shall be reimbursed by the non-prevailing party for
all reasonable expenses incurred in resolving such dispute,
including reasonable attorneys' fees.

20.  Taxes.

Any income taxes required to be paid in connection with the
payments due hereunder, shall be borne by the party required to make
such payment.  Any withholding taxes in the nature of a tax on
income shall be deducted from payments due, and the party required
to withhold such tax shall furnish to the party receiving such
payment all documentation necessary to prove the proper amount to
withhold of such taxes and to prove payment to the tax authority of
such required withholding.

21.  Not for the Benefit of Creditors or Third Parties.

<PAGE>

The provisions of this Agreement are intended only for the
regulation of relations among the parties.  This Agreement is not
intended for the benefit of creditors of the parties or other third
parties and no rights are granted to creditors of the parties or
other third parties under this Agreement. Under no circumstances
shall any third party, who is a minor, be deemed to have accepted,
adopted, or acted in reliance upon this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed as of the Effective Date.

"Company"                                        "Employee"

AMS Acquisition Corp.                             /s/ Paul Hentschl
                                                  Paul Hentschl

/s/ Joseph Naughton
By:    Joseph Naughton
Its:   Chief Executive OfficerFIRST COMPANY SECURITY AGREEMENT

Date: July 8, 1998

The undersigned (herein referred to as "Debtor") hereby
agrees in favor of Affiliated Marketing Services, Inc., a California
corporation, or its lawful assigns (herein referred to as "Secured
Party"), as follows:

1.  In consideration of the delivery of a promise to pay
$100,000 under that certain Agreement for Purchase and Sale of
Assets between Secured Party and Debtor dated July 8, 1998 (the
"Agreement"), Debtor hereby grants to Secured Party a continuing
security interest in, and Debtor hereby assigns to Secured Party the
Collateral described in Exhibit A hereto, to secure the payment,
performance and observance of the obligations of Debtor under the
Agreement (the foregoing being herein referred to as the
"Obligations").

2.  Debtor warrants, represents and covenants that:  (a)
the chief executive office and other places of business of Debtor,
the books and records relating to the Collateral and the Collateral
are, and will continue to be located at the address set forth below
and Debtor will not change any of the same without prior written
notice to and consent of Secured Party; (b) the Collateral is now,
and at all times will be, owned by Debtor free and clear of all
liens, security interest, claims and encumbrances, unless previously
disclosed to Secured Party;  (c) Debtor will not assign, sell,
mortgage, lease, transfer, pledge, grant a security interest in or
lien upon, encumber, or otherwise dispose of or abandon, nor will
Debtor suffer or permit any of the same to occur with respect to,
any part or all of the Collateral, without prior written notice to
Secured Party; (d) Debtor has made, and will continue to make
payment or deposit or otherwise provide for the payment, when due,
of all taxes, assessments or contributions required by law which
have been or may be levied or assessed against Debtor with respect
to any of the Collateral; (e) Secured Party shall at all times have
free access to and right of inspection of the Collateral and any
records pertaining thereto; (f) at any time and from time to time,
Debtor shall, at its sole cost and expense, execute and deliver to
Secured Party such financing statements pursuant to the Uniform
Commercial Code ("UCC"), applications for certificate of title and
other papers, documents or instruments as may be requested by
Secured Party in connection with this Security Agreement, and Debtor
hereby authorizes Secured Party to execute and file at any time and
from time to time one or more financing statements or copies thereof
of this Security Agreement with respect to the Collateral signed
only by Secured Party.

3.  Each of the following events shall constitute an
event of default ("Default") under this Security Agreement: (a)
Debtor shall default in the punctual payment of any sum payable with
respect to, or in the observance or performance of any of the terms
and conditions of any Obligations;  (b) the making or filing of any
lien, levy, or execution on or seizure, attachment of or garnishment
of, any Collateral; (c) Debtor shall become insolvent or commit an
act of bankruptcy or make an assignment for the benefit of
creditors; (d) there shall be filed by or against any Obligor any
petition for any relief under the bankruptcy laws of the United
States now or hereafter in effect; (e) the usual business of Debtor
shall be terminated or suspended.

4.  Upon the occurrence of any Default and at any time
thereafter, Secured Party may,

<PAGE>

without notice to or demand upon Debtor, declare any Obligations
immediately due and payable and Secured Party shall have all rights
and remedies of a secured party under the UCC.

5.  Debtor hereby releases Secured Party from any claims,
causes of action and demands at any time arising out of or with
respect to this Security Agreement, the Obligations, the Collateral
and its use and/or actions taken or omitted to be taken by Secured
Party with respect thereto, and Debtor hereby agrees to hold Secured
Party harmless from and with respect to any and all such claims,
causes of action and demands.  No act, omission or delay by Secured
Party shall constitute a waiver of its rights and remedies hereunder
or otherwise.  Debtor hereby waives presentment, notice of dishonor
and protest of all instruments included in or evidencing any
Obligations or Collateral, and all other notices and demands
whatsoever (except as expressly provided herein.)  No provision
hereof shall be modified, altered or limited except by a written
instrument expressly referring to this Security Agreement and to
such provision, and executed by the party to be charged.  This
Security Agreement and all Obligations shall be binding upon the
heirs, executors, administrators, successors, or assigns of Debtor
and shall, together with the rights and remedies of Secured Party
hereunder, inure to the benefit of Secured Party, its successors,
endorses and assigns.  This Security Agreement and the Obligations
shall be governed in all respects by the laws of the State of
California applicable to contracts executed and to be performed in
such State.  If any term of this Security Agreement shall be held to
be invalid, illegal or unenforceable, the validity of all other
terms hereof shall in no way be affected thereby.

IN WITNESS WHEREOF, the undersigned has executed or caused
this Security Agreement to be executed as of the date first above
set forth.

"Debtor"                                     Address:

AMS ACQUISITION CORP.                        5681 Beach Boulevard, Suite 101
                                             Buena Park, CA 90621

/s/Joseph Naughton
By:    Joseph Naughton
Its:   President

"Secured Party"

Affiliated Marketing Services, Inc.           13939 Barrymore
                                              San Diego, CA 92129
/s/ Paul Hentschl
By:    Paul Hentschl
Its:   President

<PAGE>

                                     EXHIBIT A

                        PROPERTY SUBJECT TO SECURITY INTEREST

With respect to AMS Acquisition Corp. (the "Company"), the
Collateral includes (i) all equipment, machinery, vehicles,
furniture, tools, dies, jigs, and fixtures, and all attachments,
accessions and equipment now or hereafter affixed thereto or used in
connection therewith, and all substitutions and replacements
thereof, wherever located, whether now owned or hereafter acquired
(the "Equipment"); (ii) all raw materials, work in process, finished
goods, and all other inventory (as defined in the Uniform Commercial
Code) of whatsoever kind or nature, and all wrapping, packaging,
advertising and shipping materials, and any documents relating
thereto, and all labels and other devices, names or marks affixed or
to be affixed thereto for purposes of selling or of identifying the
same or the seller or manufacturer thereof and all of the Company's
right, title and interest therein and thereto, wherever located,
whether now owned or hereafter acquired (the "Inventory"); (iii) all
present and future accounts, contract rights, chattel paper,
documents, instruments, trademarks, trade names, service names and
general intangibles, whether now owned or hereafter acquired, the
Company's interest in the goods represented thereby or described in
copies of invoices delivered to the Company; all returned, reclaimed
or repossessed goods with respect thereto; all rights and remedies
of Debtor under or in connection with such collateral (the
"Accounts"); (iv) all books, records and other property and general
intangibles at any time relating to the Equipment, Inventory and
Accounts ("Records"); and (v) all products and proceeds of the
foregoing, in any form, including without limitation, any claims
against third parties for loss or damage to or destruction of any or
all of the Equipment, Inventory and Accounts (the "Proceeds").

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