Document:

[EXHIBIT 10.1.23]

                    LONG FORM SALES AGREEMENT

A license agreement ("Agreement") made this 12th day of November,
2002,  between Endevour, Holdings Corp. (hereinafter referred  to
as  "Licensor") and Miracle Film Distribution, Inc.  (hereinafter
referred to as "Sales Agent").

The parties hereby agree as follows:

1.   PICTURE
     -------

"St.  Petersburg-Cannes Express" (the "Picture"), starring  Nolan
Hemmings;  photographed  in  the  English  language,   on   color
professional  quality film with no hard matte;  to  be  delivered
with a running time, inclusive of main and end titles, of between
40  and  110 minutes; capable of receiving an MPAA rating  of  no
more    restrictive    than    an    "R"    (collectively,    the
"Specifications").

2.   TERRITORY
     ---------

Worldwide   in  all  languages  including,  without   limitation,
English,  Spanish,  and French and shall include  all  diplomatic
posts   and  military  and  government  installations,   wherever
located,  all  ships principally operating from or serviced  from
the Territory where the principal booking or licensing office  is
located,  and all aircraft and oil rigs flying the  flag  of  the
country licensed.

3.   TERM
     ----

Commencing  upon execution of this Agreement and  continuing  for
fifteen  (15  years  following acceptable  Delivery  (as  defined
hereunder)  of all of the items set out in the attached  Schedule
"A".

4.   RIGHTS GRANTED
     --------------

A.   Licensor  hereby grants to Miracle the sole and exclusive
     right under copyright and otherwise to  license the film for
     exhibition, distribute, sub-distribute, advertise,  promote,
     publicize, market, sell, manufacture, license and  otherwise
     exploit the Picture in the Territory during the Term in any and
     all languages (including, without limitation, English, French and
     Spanish), in all forms of Theatrical, Free Television, Pay Cable,
     Subscription Cable, Pay-Per-View, Home Video (including, without
     limitation,  videocassettes, DVD  digital,  videodisc,  8mm,
     laserdiscs, optical, linear, and all other disk and other video
     devices now known or hereafter devised and through any and all
     means of distribution, now  known or hereafter devised, including
     without limitation, retail, mail order, catalogs, superstores,
     record stores, book and drug chains, all television home shopping
     clubs, QVC, infomercials and all other markets), (the "Rights").
     Subject to the approval of Endevour Holdings Corp.

B.   Licensor grants Miracle and Miracle's representatives the
     sole, exclusive and irrevocable right to use the title of the
     Picture,  the  names (including any professional  names  and
     sobriquets),  likenesses (including pictures, portraits  and
     posters), and biographical material of the performers, producers,
     directors, writers and other contributors to the Picture, and a
     summary  of  the content of the Picture in the distribution,
     advertising, publicity and promotion of the Picture  in  the
     Territory during the Term.  Without limiting the generality of
     the foregoing, Miracle shall have the unrestricted right to use
     the names and likenesses of all cast related to the Picture,
     including without limitation, in the distribution, advertising,
     marketing, publicity and promotion of the Picture

C.   Miracle  shall have the right to use the music  which  is
     contained in the soundtrack of the Picture (or music which is not
     contained in the soundtrack of the Picture) for the purposes of
     advertising, publicizing, promoting and marketing the Picture
     and/or  Miracle throughout the Territory, including, without

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<PAGE>

     limitation, in trailers, television spots and radio commercials,
     in and out of context.

D.   Miracle shall have the exclusive right to use the Picture or
     up  to  five (5) minute portions thereof for the purpose  of
     advertising, selling, promoting, and publicizing the Picture in
     the Territory during the Term.

E.   In the Territory during the Term, the Licensor agrees not to
     grant any right, title or interest in the Picture to any person,
     firm, partnership or corporation other than the Miracle for use
     in connection with the Rights granted herein.

5.   DELIVERY MATERIAL
     -----------------

"Delivery"  shall mean delivery to and acceptance by  Miracle  of
all  item listed on Schedule "A", attached hereto, which  Miracle
will advance.  Licensor agrees to provide any other items Miracle
may  reasonably  request, to the extent  they  are  available  to
Licensor,  at no additional cost to Miracle.  If Delivery  cannot
be completed on or before February 7, 2002 (the "Delivery Date"),
unless extended by mutual agreement of the parties, Miracle shall
have the right to terminate this Agreement upon written notice to
Licensor,  and in such event Licensor shall return  any  and  all
payments  made  to  Miracle  pursuant  to  this  Agreement,  with
Interest.

6.   MINIMUM GUARANTEE/ADVANCE
     -------------------------

Miracle agrees to advance all post-production and delivery  costs
recoupable   from  all  gross  receipts  from  worldwide   income
collected by Miracle and/or Endevour Holdings Corp.

7.   DIRECTIONS RE: PAYMENTS
     -----------------------

Until such time as otherwise advised in writing by Licensor,  the
parties  hereby  agree  that Miracle is instructed  to  make  all
payments  due to Licensor pursuant to the terms of this Agreement
by mailing cheques to Licensor at the address listed in paragraph
20  of  this  Agreement, and for the purpose of  this  Agreement,
payments to Miracle Entertainment, Inc. shall constitute payments
to Licensor and shall receive copies of statements and cheque(s).

9.   DISPOSTION OF GROSS RECEIPTS
     ----------------------------

Gross Receipts shall be applied on a continuous rolling basis  as
follows:

     (a)  Miracle shall be entitled to recoup and retain all Sales
          Expenses (as set forth herein); post production finishing costs
          and
     (b)  Following the deduction stated above, the remaining Gross
          Receipts shall be deemed Net Receipts; Licensor shall be entitled
          to 80% of such Net Receipts and Miracle shall be entitled to 20%
          of such Net Receipts.

It   is   understood  that  the  Gross  Receipts   derived   from
exploitation  of the Picture in any media and/or in  any  country
granted to Miracle hereunder are fully cross-collateralized  with
all  other  territories granted in respect of Miracles  post  and
sales  advance  costs plus post production costs that  shall  not
exceed USD$150,000.00.

10.  SALES EXPENSES
     --------------

All  customary out of pocket costs and expenses paid or  incurred
or  caused  to  be  paid or incurred in connection  with  prints,
duplication,   replication,  publicity,   promotion,   marketing,
advertising,  editing, materials, financing charges, exploitation
and distribution of the Picture in the Territory.

                                                                     2
<PAGE>

Miracle shall not spend in excess of One Hundred Thousand  United
States  Dollars  (USD$100,00.00)  in  connection  with  marketing
expenses  in  respect  of the Picture ("Marketing  Expense  Cap")
unless  the prior approval of Licensor is obtained, such approval
not  to  be  unreasonably withheld.  For greater certainty,  such
Marketing Expense Cap shall not include the following:

  a)   Any expenses incurred by or on behalf of Miracle in respect
       of Delivery Materials not provided by Licensor in accordance with
       the terms of this Agreement;
  b)   Expenses related to the direct cost of sales (including,
       without limitation, duplication, replication, sleeves, wraps,
       freight, authoring encoding and filmwork).  In connection
       therewith, Miracle shall not charge any markup over its actual
       duplication costs.

For  greater certainty, although such items shall not be included
in  the Marketing Expense Cap, they shall be fully recoupable  by
Miracle as Sale Expenses hereunder.

Miracle  shall  not  be responsible for any additional  or  third
party  payments, including, without limitation,  union  or  guild
residuals  or supplemental market payments required,  deferments,
profit  participations,  music  payments  or  any  other  amounts
arising  as  a  result of Miracle's exploitation  of  the  Rights
granted hereunder.

11.  MIRACLE'S DUTY
     --------------

Miracle accepts the license herein granted to it and will in good
faith  endeavor  to sub-distribute/sell and exploit  the  Picture
within  the Territory in a manner consistent with sound  business
policy.   Subject  to  the provisions of the  Agreement,  Miracle
shall have full and complete charge and control of the manner  in
which,  and  the terms upon which, the Picture shall be  marketed
and  distributed,  subject  to the  approval  of  the  licensor's
acceptance of the advance guarantee for each territory.   Nothing
herein  shall be construed as a representation of Miracle as  the
amount  of  Gross Receipts to be realized pursuant  to  the  sale
activities  of Miracle.  Miracle shall have the right  to  change
the  title  of  the Picture; provided that Miracle consults  with
Licensor with respect to such title change.

12.  ACCOUNTING
     ----------

On  a quarterly basis during the first two (2) years of the Term,
and  semi-annually thereafter, Miracle shall prepare and  provide
Licensor detailed written accounting statements.  Said statements
shall  be forwarded to Licensor within sixty (60) days after  the
end  of the applicable accounting period and shall be accompanied
by  a  cheque  to  Licensor in an amount equal  to  all  payments
reflected on such statement as being due to Licensor.

During  the  Term,  Licensor, or its designated  representatives,
shall  have  the right, at Licensor's own expense, no  more  than
once during each year of the Term, upon reasonable written notice
and  during normal business hours at the location were  Miracle's
books  and records are maintained, to audit and inspect Miracle's
books,  records and accounts in respect of the Picture  and  make
copies  of  same  in order to determine the accuracy  of  any  of
Miracle's statements rendered pursuant to this Agreement.

Notwithstanding the foregoing, if no issue as to the accuracy  or
completeness of any particular accounting statement is raised  in
writing  with  Miracle by Licensor within twelve (12)  months  of
receipt by Licensor of such accounting statement, such accounting
statement shall be deemed accepted by Licensor and Licensor shall
be precluded from later disputing the accuracy or completeness of
such accounting statement, save in the event of Manifest error or
fraud.

13.  CREDITS
     -------

Miracle shall be entitled to a first position presentation credit
(and/or  logo) in all screen and paid advertising  in  the  world
distribution.   Miracle  shall not make changes,  cuts  or  edits
without  the  approval  of Licensor, except  where  required  for
censorship,  such approval not to be unreasonably withheld.   Any
such editing costs shall be treated as Sale Expense.

                                                                     3
<PAGE>

Miracle  agrees  not  to change the credits  on  the  Picture  as
delivered  and  to comply with Licensor's credit  obligations  of
which it has been given notice in writing in a timely manner.

14.  REPRESENTATIONS AND WARRANTIES
     ------------------------------

Licensor represents and warrants to, and covenants with,  Miracle
with respect to the Picture that:

A.   Licensor  has  all  the  rights, capacity  and  authority
     necessary to enter into this Agreement and to perform all of its
     obligations hereunder and to grant, sell, assign, transfer and
     convey to Miracle all the Rights granted or purported to  be
     granted herein.  Licensor owns or controls all Rights granted to
     Miracle under this Agreement.  All Rights granted to Miracle are
     free of all liens, claims, and encumbrances.  To the best of
     Licensor's knowledge, there are no defects in the chain-of-title
     to the Picture, the screenplay or any other literary, musical or
     dramatic material upon which the Picture is based which would
     adversely affect any of Miracle's rights.
B.   Licensor has not taken and will not take or authorize any
     action to fail to take any action by which any of the rights
     granted herein have been or may be in any way impaired.
     Specifically, with respect to the Territory, Licensor has no
     other agreement for license or distribution with any other person
     or entity with respect to the Picture which may conflict or
     interfere or be inconsistent with any of the provisions of the
     Agreement or the enjoyment by Miracle of any rights granted to it
     hereunder.
C.   There are no liens or encumbrances against the Picture, and
     all costs of its production (including, without limitation, all
     compensation, laboratory costs, license fees, royalties, and any
     and all music costs and/or licenses) have been paid and all
     clearance of elements contained therein (including, without
     limitation, music) have been secured for use by Miracle for the
     full extent of all Rights granted herein.
D.   There is no claim, action, suit, investigation or proceeding
     relating to or affecting the Picture pending or threatened,
     before any federal, state, provincial, county, municipal,
     administrative or governmental instrumentality, as law or in
     equity.
E.   Nothing contained in the Picture or in the ancillary
     material to be supplied to Miracle hereunder, nor the entering
     into or performing of this Agreement, nor the exercise of any of
     the rights granted hereunder, will violate or infringe upon any
     rights whatsoever (including, without limitation, any copyright
     (whether common law or statutory), patent, trademark, right of
     privacy or publicity, or other moral, literary, artistic,
     dramatic, private, personal, civil or proprietary right or
     interest)of any third persons or result in any other liability.
     Neither shall the Picture defame, slander, libel or hold in false
     light any person or entity.
F.   Licensor owns or controls or has the right to utilize as
     part of the Picture for the duration of the Term, all literary,
     dramatic, musical synchronization and mechanical rights contained
     in the Picture. Licensor owns or controls the exclusive rights to
     authorize the manufacture, distribution, exhibition, sale,
     marketing, advertising, publicizing, promotion and exploitation
     of the Picture throughout the Territory in the manner and form
     contemplated by this Agreement. Without limiting the generality
     of the foregoing, Licensor has obtained all of the rights,
     permissions and licenses required to grant the Rights granted
     herein to Miracle and to enable Miracle to fully exploit the
     Picture (including, without limitation, the right to use
     performers' names, images, likenesses and biographies to
     advertise, publicize and promote the Picture), and Licensor shall
     be solely responsible for the payment of all these third party
     rights, including, without limitation, all production expenses,
     taxes, fees, charges, salaries and all fees and charges required
     to be paid by union guild arrangements.
G.   There has been no prior exploitation in the Territory of the
     Rights granted to Miracle herein in respect of the Picture,
     either by Licensor or by any other party.
H.   All materials required to be delivered pursuant to paragraph
     5, above, shall be made available to Miracle pursuant to the
     terms of paragraph 5, and all such materials will be of
     technically acceptable quality.
I.   The Picture shall be delivered in accordance with the
     Specifications, as set forth above.
J.   Licensor's representations and warranties herein are true
     and complete as of the date of this Agreement and shall remain so
     throughout the Term of this Agreement.

                                                                     4
<PAGE>

K.   Should John Daly, an individual, cease his tenure and is no
     longer an employee of Miracle Entertainment, all rights, whether
     granted or not, shall return to Licensor.

15.  INDEMNITY
     ---------

Licensor  shall at all times defend, indemnify and hold  harmless
Miracle, its parent, subsidiary and affiliated companies, and its
respective successors, licensees, Miracles, and assigns and their
respective    officers,   directors,   shareholders,   employees,
attorneys, agents and other representatives from and against  any
and  all claims, actions, suits, judgments, obligations, damages,
losses,  penalties,  liabilities, costs and expenses  (including,
without  limitation, reasonable fees and disbursements of outside
counsel) of whatsoever kind and nature imposed on, incurred by or
asserted  against  Miracle  in any action,  claim  or  proceeding
between  Miracle and Licensor or between Miracle  and  any  third
party or otherwise (collectively "Claims"), arising out of or  in
connection  with the exercise of any of the Right granted  herein
or out of any breach by Licensor of any representation, warranty,
covenant or other provision hereof.

Miracle  shall  at all times defend, indemnify and hold  harmless
Licensor,  its  parent, subsidiary and affiliated companies,  and
its  respective successors, licensees, Miracles, and assigns  and
their  respective  officers, directors,  shareholder,  employees,
attorneys, agents and other representatives from and against  any
and  all Claims arising out of or in connection with the exercise
of  any  of  the  Rights granted herein or out of any  breach  by
Miracle  of  any  representation,  warranty,  covenant  or  other
provision   hereof  (other  than  claims  covered  by  Licensor's
indemnity obligation above).

16.  INSURANCE
     ---------

Licensor  shall, at its own expense and for the duration  of  the
Term,  secure and maintain in force standard producer's liability
(errors  & omissions) insurance issued by a reputable insurer  in
the   minimum   amount   of  USD$1,000,000.00   per   claim   and
USD$3,000,000.00 in the aggregate with respect  to  the  Picture.
Licensor  shall  provide  to Miracle a certificate  of  insurance
which  shall provide that such insurance (i) cannot be  modified,
terminated  or  cancelled  by  the  carrier  without  its   first
notifying Miracle of such event, and (ii) is not subject  to  any
non-standard  exclusions from, restrictions of or limitations  in
coverage  or  any  material  difference  in  deductibles  as  the
standard  in the industry.  Such policy shall name as  additional
insureds  the  Miracle,  its  parent, subsidiary  and  affiliated
companies,  successors, sub-Miracles, sub-licensees  and  assigns
and  the respective officers, directors, shareholders, attorneys,
employees, agents and any other representatives of any and all of
the  foregoing and shall contain an endorsement that negates  the
"other  insurance" clause in the policy and a statement that  the
insurance  being  provided is primary and  that  any  errors  and
omissions  insurance carried by Miracle or any  other  person  or
entity (other than Licensor) is neither primary nor contributing.

17.  MIRACLE'S RIGHT OF TERMINATION
     ------------------------------

Miracle  may  terminate  this  Agreement  in  the  event  of  the
occurrence  of any of the following incidents of default  by  the
Licensor:   (i) failure to comply with any material provision  of
this Agreement, if such non-compliance is not remedied within ten
(10)  business  days  after written notice  of  such  default  is
provided  to  the  Licensor;  (ii)  the  filing  of  a  voluntary
petition, by the Licensor, under any chapter of the United States
Bankruptcy  Code or any similar state or foreign law;  (iii)  the
filing of any involuntary petition against the Licensor under the
United States Bankruptcy Code or any similar state or foreign law
which  is not dismissed within one hundred and twenty (120) days;
or (iv) the appointment of a receiver for the Licensor.

Upon  such termination, all rights and related materials  granted
from Licensor to Miracle shall revert to Licensor.

19.  FORCE MAJEURE
     -------------

Each  of  the  parties  shall  be  excused  from  performing  its
obligations  hereunder  to the extent  to  which  performance  is
prevented  by strikes, labor disturbances, failure  or  delay  of
transportation  facilities, failure of  transmission  facilities,
satellite  failure,  acts  of God, act of  government,  or  other
similar events (commonly known as Force Majeure) which could  not

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<PAGE>

reasonably  be foreseen and which are not reasonably  within  the
control  of such party.  Neither party hereto shall be liable  to
the  other  for any loss, damage or default occasioned  by  Force
Majeure.

20.  NOTICES
     -------

All  notices hereunder must be in writing and must be  personally
delivered  or  be sent by registered or certified  mail,  postage
prepaid,  by courier and/or by fax.  The address for all  notices
required to be sent to Licensor shall be:

Endevour Holdings Corp.
C/O Sundip K. Bhundia
3 Rue Bellot
1206 Geneve - Suisse
Fax 022.702.14.88
Attn:  Sundip K. Bhundia

With a mandatory copy to:

Miracle Entertainment, Inc.
5670 Wilshire Blvd.
Suite 1620
Los Angeles, CA 90036
Fax:  323.904.5201
Attn:  John Daly

Either  party  may  change such address  by  appropriate  written
notice.

21.  CONFIDENTIALITY
     ---------------

Neither party shall disclose to any third party (other than their
respective  employees, in their capacity as such) any information
with  respect  to  the  financial terms and  provisions  of  this
Agreement except; (a) to the extent necessary to comply with  law
or  the valid order of a court of competent jurisdiction; (b)  as
part of its normal reporting or review procedure to its parent or
subsidiary company, its partners, its auditors and its  attorney;
and (c) in order to enforce or defend its rights pursuant to this
Agreement in a legal proceeding.

22.  NO PARTNERSHIP OR JOINT VENTURE
     -------------------------------

nothing herein contained shall in any way create any association,
partnership, joint venture or the relation of principal and agent
between  the parties to constitute such.  Neither of the  parties
hereto  shall  hold  itself out contrary to  the  terms  of  this
provision,  by advertising or otherwise.  This Agreement  is  not
for the benefit of any third party.

23.  SUCCESSORS AND ASSIGNS
     ----------------------

Miracle  shall have the right to assign all of its  right,  title
and interest under this Agreement without consent.

This   Agreement   may  not  be  assigned  by  Licensor,   either
voluntarily  or  by operation of law, without the  prior  written
consent of Miracle, and any such assignment shall not relieve the
assignor  of  its  obligations  hereunder.   Notwithstanding  the
foregoing,  Licensor may assign this Agreement,  or  any  of  its
rights  hereunder,  without Miracle's consent (but  with  written
notice to Miracle), to any entity with which it may be merged  to
consolidated or which acquires all or substantially  all  of  its
assets,  provided that such entity with which  it  is  merged  or
consolidated or which acquires all or substantially  all  of  its
assets  agrees in writing to assume all of its obligations  under
this Agreement.

                                                                     6
<PAGE>

Notwithstanding the foregoing, only after complete  Delivery  has
been accepted by Miracle, Licensor may assign only their right to
receive  monies  without consent, but no  such  assignment  shall
relieve  Licensor of any of its obligations, representations  and
warranties hereunder.

24.  GOVERNING LAW; JURISDICTION
     ---------------------------

The  validity, interpretation and legal effect of this  Agreement
shall  be  governed  by  the  laws of  the  State  of  California
applicable therein.

25.  HEADINGS
     --------

The  titles  and  captions  in this Agreement  are  inserted  for
reference  and  convenience only and in no way define,  limit  or
describe the scope of this Agreement or intent of any provision.

26.  AMENDMENTS
     ----------

This Agreement cannot be amended, modified or changed except by a
written  instrument duly executed by authorized officers of  both
the parties hereto.

27.  NO WAIVER
     ---------

No  waiver by either party of a breach or default hereunder shall
be  deemed a waiver by such party of a subsequent breach of  like
or similar nature.

28.  ENTIRE AGREEMENT
     ----------------

This  Agreement,  together  with Schedule  "A"  attached  hereto,
represents  the entire Agreement between the parties hereto  with
respect  to the subject matter hereof and supersedes all previous
representations, understandings or agreements, oral  or  written,
between the parties with respect to the subject matter hereof.

29.  COUNTERPARTS; FACSIMILES
     ------------------------

This  Agreement  may  be  signed in counterparts  and  each  such
counterpart shall constitute an original document, and  all  such
counterparts, taken together, shall constitute one and  the  same
instrument.  Counterparts delivered by facsimile shall  have  the
same force and effect as an original.

30.  SEVERABILITY
     ------------

If  a  provision  of this Agreement is prohibited or  invalidated
under applicable law, the remainder of the Agreement shall remain
unaffected.

31.  EXECUTION
     ---------

IN  WITNESS  WHEREOF the parties have executed this Agreement  on
the date first written above.

Endevour  Holdings Corp.                  Miracle  Entertainment, Inc.

By:/s/Sundip Bhundia                      By: /s/John Daly
----------------------------------           ----------------------------

Its:                                      Its:
    ------------------------------            ---------------------------

                                                                        7

<PAGE>[EXHIBIT 10.2.1]

                         EMPLOYMENT AGREEMENT

    This  Employment Agreement ("Agreement") is entered into as of May  23,
2003,  between John Daly ("Employee"), 5670 Wilshire Boulevard, Suite 1620,
Los  Angeles,  California  90036, and Film and  Music  Entertainment,  Inc.
("Company"),  2029  Century Park East, Suite 1060, Los Angeles,  California
90067, USA, on the following terms and conditions:

     1.  Engagement of Services. Company wishes to retain the  services  of
         ----------------------
Employee in connection with certain matters relating to Company's business,
as  more  fully described in Section 3 hereof, and Employee is  willing  to
provide Such services.

     2.  Term. The term of this Agreement (the "Term") shall commence as of
         ----
the date set forth above and continue for a period of Five (5) years, or
upon thirty days' prior written notice from either party.

     3.  Services to be Provided. Employee agrees that Employee will, on  a
         ----------------------
non-exclusive  basis  and  consistent with  Employee's  other  professional
commitments  render to Company such Employment services  as  President  and
Member of the Board of Directors of Company. Employee further agrees at all
times  not  to  engage in conduct which will disparage  the  reputation  of
Company  and/or Company's technology, products and services or which  might
tend  to  adversely  affect  the market price of  Company's  common  stock.
Employee  shall not be required at any time to render services  that  would
materially interfere with Employee's prior professional obligations.

    4. Compensation. All compensation provided for under this section 4
       ------------
shall be provided on a "Most Favored Nations Basis" with that of Michael
Meyer.

         4.1 Base Salary. Provided Employee shall faithfully and completely
perform the services required hereunder and otherwise fulfill his
obligations under this Agreement, Company shall pay Employee, as full
compensation for the services requested of Employee hereunder

         (a)  For all work performed at the rate of      .00) per year.

         (b)  In addition to the Base Salary, the Company, at its sole
discretion and with the approval of the Compensation Committee of the Board
of Directors, provide Employee with a cash, or non-cash bonus.

         (c)  All compensation under this section shall be payable in
accordance with Employer's normal practices.

         4.2   Options.  The  Company  will,  upon  execution  of   this
Agreement,  grant  Employee options pursuant to the Non-Qualified  Stock
Option Agreement attached hereto and incorporated herein as "Exhibit B",
purchase  Eighteen Million (18,000,000) shares of the common stock  of  the
Company  restricted  under  Rule  144 of the  United  States  Security  and
Exchange  Commission, exercisable at a price of Fifty (50%) of the  closing
price  of  May  6,  2003, and pursuant to the terms embodied  in  the  John
Daly/Film  and  Music Entertainment, Inc. Voting Trust  Agreement  attached
hereto  as "Exhibit A" becoming a part of the whole hereof. Options granted
hereunder shall be considered "Dripped Out" pursuant to and in compensation
for the work performed under this Agreement for the period ending prior  to
the Drip Out date as specified in Section 3 of Exhibit A

         4.3 Benefits. During the Employment Term, Employee shall be
entitle to participate in all benefit plans available to other employees of
Employer of similar stature on terms no less favorable than provided to any

<PAGE>

other employee of similar stature.

    5.  Expenses.
        --------

          (a) In General. Employee may incur various costs and expenses  in
performing  his services under this Agreement. Company agrees  to  pay  for
only those reasonable costs and expenses by prior written agreement of  the
Company.

          (b)  Out  of  Town  Travel. Company agrees to pay transportation,
meals,  lodging and all other costs of any necessary out-of-town travel  by
Employee  (with air travel to be coach class for Employee).  Prior  written
approval by Company shall be required for all air travel in connection with
this Agreement.

     Employee shall invoice Company promptly for the foregoing expenses.
Such invoices shall be payable within 30 days of receipt.

    6.  Termination For "Cause".
        -----------------------
    Employer may terminate Employee's employment for "cause" as defined in
this section at any time upon written notice to Employee. As used herein
the term "cause" shall mean anyone or combination of the following:

          (i) Employee's arrest for or conviction of any crime (whether or
not involving Employer) which constitutes a crime of moral turpitude or is
punishable by imprisonment of one year or more.

          (ii) Employee's act or omission or act constituting fraud,
dishonesty or misrepresentation, whether prior or subsequent to the date
hereof, including, without limitation any fraud dishonesty or
misrepresentation relating to Employee's hiring by Employer.

          (iii) Any act or omission by Employee involving willful
malfeasance or willful gross negligence or constituting a material breach
of this Agreement.

          (iv) Employee's failure, inability (which does not qualify as  a
disability under federal or state
law,  or  refusal to perform Employee's duties in a manner satisfactory  to
Employer.  Employer's  good  faith judgment as  to  Employee's  ability  to
perform Employee's duties shall be controlling.

          (v) Employee' s violation of any material rule or regulation of
Employer applicable to other Employees of similar stature.

     Not withstanding the foregoing, Employee shall not be deemed in breach
of this provision unless and until Employer shall have given Employee
written notice describing the breach and Employee shall have failed to cure
the breach within three (3) business days after Employee's receipt of that
written notice, provided that there shall be no cure period with respect to
any matter incapable of being cured. Employee shall not be required to give
a second notice and opportunity to cure with respect to any breach by
Employee.

     7.  Employee authorizes and agrees that Employer retains the right
of offset and may deduct from the compensation payable to Employee under
this Agreement the amount of any debts owed by Employee to Employer
including, but not limited to, any outstanding loans, unpaid advances and
the value of any Employer property retained by Employee.

     8.  Confidentiality. In connection with Employee's services
         ---------------
hereunder, Company w\ill be disclosing to Employee certain
confidential information all of which Company considers to be
secret or proprietary ("Proprietary Information"), and Employee
agrees, during the Term and forever after the expiration or
termination of this Agreement, to hold the Proprietary
Information in confidence, and not to disclose such Proprietary
Information to third parties (except pursuant to judicial
process) or to use such Proprietary Information for Employee's
own account, without Company's prior written authorization.
Proprietary Information shall be used by Employee only in
connection with services rendered pursuant to this Agreement.
Proprietary information shall not be deemed to include
information that: (a) is in or becomes in the public domain
without violation of this

<PAGE>

Agreement  by  Employee, or (b) is already in the  possession  of
Employee,  as  evidenced  by  written  documents,  prior  to  the
disclosure thereof by Company, or (c) is rightfully received from
a  third  entity  having  no obligation to  Company  and  without
violation of this Agreement by Employee. Employee shall not issue
any  publicity  or  statements to  the  press  or  third  parties
regarding  Company,  or  its technology,  products  or  services,
without Company's prior written consent in each instance.

     9. Company's Duties. Company agrees to cooperate with
        ----------------
Employee, to abide by this Agreement, and to pay Employee's bills
on time.

     10. Warranties. Employee warrants that Employee is under  no
         ----------
obligation  to  any third party that would prevent Employee  from
rendering the services contemplated by this Agreement,  and  that
Employee  is free to enter into this Agreement. Company  warrants
that Company is under no obligation to any third party that would
prevent  Company  from  performing  its  obligations  under  this
Agreement and that Company is free to enter into this Agreement.

     11. Indemnity .Employee will indemnify and hold harmless
         ---------
Company from any and all liabilities, costs, and expenses
(including attorney' s fees) incurred by reason of any breach of
this Agreement by Employee. The Company will indemnify and hold
harmless Employee from any and all liabilities, costs, and
expenses (including attorney's fees) incurred by reason of any
breach of this Agreement by Company.

     12. No Injunctive Relief. In the event of any breach or an
         -------------------
alleged breach of this Agreement by Company, it is acknowledged
that Employee's rights and remedies shall be strictly limited to
the right of Employee to recover damages in an action at law, and
in no event shall Employee be entitled to rescind this Agreement,
revoke any of the rights herein granted or to equitable or
injunctive relief, including without limitation specific
performance.

     13.  Notices. Any notice required or permitted to be  given
          -------
hereunder shall be in writing and shall be personally  delivered,
including by messenger or  courier  (e.g., delivery  by  Federal
Express or other similarly  recognized  air express  company),
or  by certified or registered  mail,  return receipt  requested,
postage prepaid, to Employee at  the  address previously
inscribed or to Company at Pervasys, Inc., 2029 Century Park East,
Suite 1060, Los Angeles,  California  90067, USA,  with  a copy
to Alexander, Nau, Lawrence & Frumes, LLP, Attention: Robert M.
Nau, 2029 Century Park East, Suite 1260, Los Angeles, California
90067, USA. Any party may change its address for notices
hereunder by giving written notice in the manner provided for
herein.

     14.  Disability. If Employee becomes "Materially Disabled"
          ----------
(as defined in this Section) during the Employment Term, Employer
may, at its election,  terminate  this Agreement,  except that
Employee's obligations under Sections 9, 11, and 12 of this
Agreement shall survive any such termination.  "Material
Disabled" shall mean any instance where employee becomes unable,
as a result of a serious health condition  (other than
pregnancy-related disability), to render full  services  as
contemplated by this Agreement for any period totaling more  than
four  (4)  weeks  in the aggregate during any twelve  (12)  month
period. In the event of termination pursuant to this Section  14,
Employer  shall  thereupon be released and  discharged  from  all
further  obligations under this Agreement, except for any  vested
benefits and unpaid Base Salary for time worked.

     15.  Death. In the event of Employee's death, this Agreement
          -----
shall terminate, and Employee shall thereupon be released and
discharged from all further obligations under this Agreement,
except for any vested benefits and unpaid earned Base Salary for
time worked.

     16.  Entire Agreement. This Agreement constitutes the entire
          ----------------
agreement between the parties. No modification or amendment of
this Agreement shall be binding unless executed in writing by all
the parties.

     17. Assignability.  This agreement is not assignable by either
         -------------
party without the prior written consent of the other.

     18. Severability. If any provision of this Agreement is
         ------------
declared invalid, illegal or incapable of being enforced, all of
the remaining provisions of this Agreement shall nevertheless
continue in full force and effect.

<PAGE>

     19.  Arbitration.  Any dispute, controversy or claim  arising
          -----------
out of or relating to the enforcement, interpretation or alleged
breach of this Agreement, or the services rendered pursuant to
this  Agreement, shall be submitted to and resolved by binding
arbitration in Los Angeles, California in accordance with the
Commercial Arbitration Rules of the American  Arbitration
Association, and judgment upon the award rendered by the arbitrator
may be entered in and enforceable by any court having jurisdiction.

     20.  Choice of Law. This Agreement shall be construed and
          -------------
enforced in accordance with the laws of the State of California,
United States of America.

In Witness Whereof, the undersigned have executed this Agreement as
of the date first set forth above.

                                     John DaIy
                                     ("Employee")

                                     ("Company")
                                     Film and Music Entertainment, Inc.

                                     By:/s/Lawrence S. Lotman
                                        -------------------------------

                                     Its:  Secretary

<PAGE>

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