Document:

PROMISSORY NOTE

     FOR THE VALUE  RECEIVED,  Mountain  States  Capital,  Inc.("Borrower"),  an
Arizona Corporation, hereby jointly and severally promise to pay to the order of
The Heritage West Preferred  Securities Income Fund ("Lender"),  whose principal
place of business is located at 3550 North  Central  Avenue  Suite 1800,  in the
city of  Phoenix,  state of Arizona  the sum of five  hundred  thousand  dollars
$500,000), together with interest thereon at the rate of 18% per annum (1.5% per
month) on the unpaid principal as follows: all accrued interest on or before the
last day of July and August 2000 and the  remaining  outstanding  principal  and
interest balance on or before the last day of September 2000.

     This  Note may be  prepaid,  at any  time,  in  whole  or in part,  without
penalty.  All payments shall be first applied to interest and the balance of the
payment to principal.

     Borrower  agrees to pay any commissions due and owing to any third party as
a result of this Note.

     Borrower  waives demand and  presentment  for payment,  protest,  notice of
protest  and notice of  nonpayment.  In the event this Note shall be in default,
Borrower agrees to pay all reasonable attorney fees and costs of collection.

     Any extension,  modification,  waiver,  or other indulgence or discharge or
release of this Note must be in writing.  This Note be  construed,  governed and
enforced in accordance with the laws of the State of Arizona.

/s/ Chad Collins                                                       6/29/00
---------------------------------                                   ------------
Chad Collins, President, Mountain States Capital, Inc.              Date

/s/ Craig Jolly                                                        6/29/00
---------------------------------                                   ------------
Craig Jolly, The Heritage West Preferred Securities Income Fund     Date<PAGE>   1

                                                                    EXHIBIT 10.1

                                 August 13, 2000

Venture Soft Co., Ltd.
Imperial Tower 14th Floor
1-1-1 Uchisaiwaicho
Chiyoda Ku, Tokyo 100-0011
Japan

Gentlemen:

     This letter agreement sets forth the principal terms of an agreement
between Stan Lee Media, Inc. ("SLM") and Venture Soft Co., Ltd. ("VS"),
regarding the creation of a joint venture to become the premiere distributor of
original and co-created branded content in Japan and Korea (the "Territory") by
capitalizing on the strengths of VS as the dominant anime and manga creator and
distributor in the Territory and SLM as a dominant creator of globally branded
super-hero franchises in the U.S. The joint venture to be created hereby is
tentatively named "Stan Lee Japan."

     The purpose of this joint venture is intended to result in the creation of
a company that is expected to become a publicly traded company in Japan that is
dedicated to:

     (a)  building, maintaining, marketing and promoting SLM's Japanese and
          Korean language "home" Internet site as a premiere site for delivering
          content on the Internet.

     (b)  re-purposing Webisodes for exploitation in the Japanese and Korean
          language, including translations, dubbing, etc.

     (c)  licensing, marketing and promoting SLM's various properties in Japan
          and Korea, including licenses for toys, apparel and other offline
          property utilization.

     (d)  jointly developing original super hero and animated character
          properties for online and offline exploitation with VS.

     Exhibit A to this letter agreement (the "Term Sheet") sets forth the
principal terms upon which the parties will proceed to negotiate definitive
documentation regarding the formation of Stan Lee Japan. Until such time as
definitive documentation is completed, the terms of this letter agreement
(including the exhibits hereto) shall govern the relationship between the
parties with respect to the subject matter hereof. Each of the parties
acknowledges that the terms of this letter agreement do not comprise all of the
details of the definitive documents, and that all of the terms contained herein
will be

<PAGE>   2

implemented in accordance with the further review of the parties' legal,
accounting and tax advisors.

     After the signing of this memorandum of understanding, each party will
permit the financial, accounting, legal and consulting representatives of the
other party to conduct an investigation and evaluation of its businesses, will
provide such assistance as is reasonably requested and will give access at
reasonable times to information related to the assets and operation of its
business. Each party shall maintain confidentiality about any information
provided by the other and each shall use such information solely in the
furtherance of the business objectives described in this letter. In no event
shall either party make any public disclosure of any information provided by the
other except to its own employees and advisors who are given access to such
information as part of their participation in the review process. Such employees
and advisors shall be appropriately notified that such information is being
disclosed to them in confidence and in accordance with this letter of intent.

         Please indicated your agreement by executing this letter agreement
below and returning it to me.

                                      Very truly yours,
                                      STAN LEE MEDIA, INC.

                                      By: /s/  KENNETH WILLIAMS
                                          -------------------------------------
                                          Kenneth Williams
                                          President and Chief Executive Officer

ACKNOWLEDGED AND AGREED
THIS 13th DAY OF AUGUST 2000

VENTURE SOFT CO., LTD.

By: /s/ TENDO OTO
   ---------------------------------
Name: Tendo Oto
Title: President

<PAGE>   3

                                                                       EXHIBIT A

                           STAN LEE MEDIA/VENTURE SOFT
                            JOINT VENTURE TERM SHEET

                                 STAN LEE JAPAN

FORMATION:        Corporation organized in Japan (subject to tax, legal
                  and accounting advice) ("SLM Japan"). Corporation will have
                  two classes of stock. The capital stock outstanding initially
                  owned as follows:

                  50%(of which 100 shares
                  will be preferred stock) Stan Lee Media, Inc. ("SLM") 50%
                  Venture Soft Co., Ltd. ("VS")

                  SLM's preferred stock, will pay dividends from SLM Japan's
                  earnings and profits at a rate to be agreed upon by the
                  parties.

INITIAL CAPITAL:  Initial capitalization will be $500,000, contributed pro
                  rata by SLM and VS in cash or in common stock. In addition,
                  SLM shall contribute all of its wholly owned intellectual
                  property (trademarks, copyrights, etc.) currently in existence
                  (e.g. The 7th Portal, The Accuser and The Drifter) or created
                  in the future FOR THE EXCLUSIVE USE IN THE TERRITORY (as
                  defined below), subject to any licenses already in place with
                  respect to such intellectual property and VS will contribute
                  office space on a rent-free basis for use by SLM Japan during
                  its incubation.

SUBSEQUENT
CAPITAL:          VS will assist in locating suitable Japanese investors for
                  SLM Japan. It is the intention of the parties that the initial
                  new investors will acquire up to 20% of VS's interest in the
                  SLM Japan, in a manner that results in the proceeds of such
                  sale being ultimately contributed to SLM Japan and with the
                  ultimate ownership interest to be as follows:

                  50%  SLM
                  30%  VS
                  20%  Other investors

PURPOSE:          SLM Japan will act as a premiere distributor of original and
                  co-created branded content in Japan and Korea.

<PAGE>   4

LICENSE
AGREEMENT:        SLM will enter into a long-term, exclusive license agreement
                  with SLM Japan, granting an exclusive license for Japan and
                  Korea (the "Territory"), with an option for SLM Japan to
                  acquire similar rights in China and other Asian countries
                  based upon performance targets and royalty rates to be
                  negotiated in good faith at the time such option is exercised.
                  The License Agreement will entitle SLM Japan to display SLM's
                  co-created content (e.g. Backstreet Project and Starship)
                  through the Internet, as well as allow SLM Japan ability to
                  sublicense content through licensing and merchandising in the
                  Territory. Royalty payments due to SLM under the license
                  agreement to be determined by the parties.

                  SLM shall also agree to use its best efforts to exclusively
                  license all future co-created content to SLM Japan for use in
                  the Territory. Such licenses will be subject to any
                  restrictions applicable to SLM with respect to such acquired
                  or co-created properties (e.g. licenses previously granted
                  with respect to a property by a seller, consent/management
                  rights retained by a co-creator).

GOVERNANCE:       SLM Japan's board will initially consist of seven members,
                  four designated SLM and three designated by VS (which
                  designations rights will continue following SLM Japan's IPO to
                  the greatest extent permitted by applicable law). In addition,
                  at least 3 of such directors (2 of the VS designees and 1 of
                  the SLM designees) shall be Japanese "residents" as such term
                  is defined under Japanese law. In general, action may be
                  approved by a majority of the sitting directors. In addition,
                  SLM shall have the right to appoint a Chairman of the Board
                  that is reasonably acceptable to VS and VS will have the right
                  to appoint the Chief Executive Officer that is reasonably
                  acceptable to SLM. The Board of Directors will designate a
                  conflicts committee comprised of directors that are not
                  designated by SLM which shall be charged with reviewing and
                  approving any transaction between SLM Japan and SLM for so
                  long as SLM has the right to appoint a majority of the members
                  of the board.

                  Extraordinary Events (as defined below) require approval of at
                  least one of the directors designated by each of SLM and VS.
                  Extraordinary Events include the following:

                  _     amendment to the organizational documents of SLM Japan;

                  _     any merger of SLM Japan or any sale of a material amount
                        (greater than 35% of book value or revenues) of assets
                        of SLM Japan;

                  _     any entry of voluntary bankruptcy or seeking similar
                        creditor relief;

                  _     any dissolution, liquidation or winding up of SLM Japan.

<PAGE>   5

PREEMPTIVE
RIGHTS:           The Investors shall have the right to participate, pro
                  rata, in any sale of capital stock of SLM Japan for cash on
                  the same terms as any other party purchasing.

TRANSFERABILITY:  Prior to the initial public offering, SLM and VS may only
                  transfer their shares (other than transfers made to a
                  wholly-owned subsidiary or transfers made by operation of law
                  in connection with a party acquiring a majority interest in
                  either such party or any pledge of such shares as security for
                  a loan) pursuant to the following procedure:

                  (1)   the selling party must send a notice to the other party
                        indicating its intention to sell, the number of shares
                        to be sold, and the price at which such shares are to be
                        sold;

                  (2)   the non-selling party will have 30 days to indicate its
                        desire to purchase all (but not less than all) of the
                        selling party's stock;

                  (3)   if the non-selling party indicates a desire to purchase
                        more shares than, the closing for such purchase shall
                        occur not more than 60 days following the date of the
                        original notice; and

                  (4)   if the non-selling party does not elect to purchase any
                        shares, the selling party may sell such shares to a
                        third party so long as such sale (a) is for cash or
                        marketable securities, (b) is for no less than the price
                        set forth in the notice, and (c) closes within 120 days
                        of the date of the original notice.

                  In addition, each party's interest will be subject to
                  customary tag-along and drag-along provisions.

TERMINATION:      The board designation rights, officer appointment rights and
                  preemptive rights of each party will terminate following an
                  IPO if such party fails to retain at least 20% of the
                  fully-diluted common stock of SLM Japan.

EMPLOYEE STOCK
OPTIONS:          SLM Japan may issue up to __% of its common stock to employees
                  in the form of stock options or restricted stock awards,
                  provided that these grants are made (a) for not less than fair
                  market value (as determined by the board of directors in good
                  faith) and (b) are subject to vesting over not less than a
                  four-year period. In addition, all stock options or shares of
                  capital stock issued to employees shall be subject to
                  appropriate buy back rights, rights of first refusal and other
                  appropriate transfer restrictions.

<PAGE>   6

AUDITING:         SLM Japan shall designate a Big 5 accounting firm to audit SLM
                  Japan's financial statements annually. In addition, prior to
                  an IPO, SLM Japan will be required to deliver unaudited
                  quarterly financial statements to each of the parties within
                  30 days following the end of each quarter and annual audited
                  financials and an annual budget within 90 days of the end of
                  each fiscal year.

CONFIDENTIALITY:  SLM Japan and each of the parties shall use their respective
                  best efforts to ensure that any proprietary technology or
                  know-how of SLM Japan and the any of the parties which comes
                  into the possession of a party hereto shall remain
                  confidential to the greatest extent permitted by law.

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