Document:

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EXHIBIT 10.6
WARRANT AGREEMENT WITH ELITE FINANCIAL

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD,
         EXCHANGED OR TRANSFERRED IN ANY MANNER IN THE ABSENCE OF SUCH
         REGISTRATION OR AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE
         COMPANY THAT NO SUCH REGISTRATION IS REQUIRED.

                               WARRANT CERTIFICATE

                             NEW VISUAL CORPORATION

No. WR-EFCG-1                                                   300,000 Warrants
Date: February 8, 2002

         THIS CERTIFIES THAT, for value received, ELITE FINANCIAL COMMUNICATIONS
GROUP, or its registered assigns, is entitled to purchase from NEW VISUAL
CORPORATION, a Utah corporation (the "Company"), at any time or from time to
time during the period specified in Paragraph 2, THREE HUNDRED THOUSAND fully
paid and nonassessable shares of the Company's Common Stock, par value $0.001
per share (the "Common Stock"), at an exercise price per share (the "Exercise
Price") as follows:

         o    50,000 warrants shall have an Exercise Price of $0.75 per share;

         o    50,000 warrants shall have an Exercise Price of $1.25 per share;

         o    100,000 warrants shall have an Exercise Price of $1.75 per share;
              and

         o    100,000 warrants shall have an Exercise Price of $2.25 per share.

         The term "Warrant Shares," as used herein, refers to the shares of
Common Stock purchasable hereunder. The Warrant Shares and the Exercise Price
are subject to adjustment as provided in Paragraph 4.

         This Warrant is subject to the following terms, provisions, and
conditions:

1. MANNER OF EXERCISE; ISSUANCE OF CERTIFICATES; PAYMENT FOR SHARES. Subject to
the provisions of this Warrant Certificate, this Warrant may be exercised by the
holder of this Warrant and/or any permitted transferee specified in Section 7
below (the "holder"), in whole or in part, by the surrender of this Warrant
together with a completed exercise agreement in the form attached to this
Warrant Certificate (the "Exercise Agreement"), to the Company during normal
business hours on any business day at the Company's principal executive offices
(or such other office or agency of the Company as it may designate by notice to
the holder), and upon payment of the Exercise Price. At the option of the
holder, the Exercise Price may be paid to the Company in cash, by certified or
official bank check or by wire transfer for the account of the Company. The

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Warrant Shares so purchased shall be deemed to be issued to the holder or such
holder's designee, as the record owner of such shares, as of the close of
business on the date on which this Warrant shall have been surrendered, the
completed Exercise Agreement shall have been delivered, and payment shall have
been made for such shares as set forth above. Certificates for the Warrant
Shares so purchased shall be delivered to the holder within a reasonable time
after this Warrant shall have been so exercised. The certificates so delivered
shall be in such denominations as may be requested by the holder and shall be
registered in the name of the holder or such other name as shall be designated
by such holder.

         2. PERIOD OF EXERCISE. This Warrant may be exercised, at the option of
the holder, in whole or in part, at any time from the date of the execution of
this Warrant and ending at 5:00 p.m., Eastern time, the earlier of (i) February
8, 2005 or (ii) 24 months from the date a registration statement registering the
Warrant Shares is deemed effective (the "Exercise Period").

         3. CERTAIN AGREEMENTS OF THE COMPANY. The Company hereby covenants and
agrees as follows:

                  (a) SHARES TO BE FULLY PAID. All Warrant Shares will, upon
         issuance in accordance with the terms of this Warrant, be validly
         issued, fully paid and nonassessable and free from all taxes, liens and
         charges with respect to the issue thereof.

                  (b) RESERVATION OF SHARES. During the Exercise Period, the
         Company shall at all times have authorized, and reserved for the
         purpose of issuance upon exercise of this Warrant, a sufficient number
         of shares of Common Stock to provide for the exercise of this Warrant.

                  (c) SUCCESSORS AND ASSIGNS. This Warrant will be binding upon
         any entity succeeding to the Company by merger, consolidation or
         acquisition of all or substantially all of the Company's assets.

         4. ANTIDILUTION PROVISIONS. During the Exercise Period, the Exercise
Price and the number of Warrant Shares shall be subject to adjustment from time
to time as provided in this Paragraph 4. In the event that any adjustment of the
Exercise Price as required herein results in a fraction of a cent, such Exercise
Price shall be rounded up to the nearest cent.

                  (a) SUBDIVISION OR COMBINATION OF COMMON STOCK. During the
         Exercise Period, if the Company subdivides (by any stock split, stock
         dividend, recapitalization, reorganization, reclassification or
         otherwise) any shares of Common Stock into a greater number of shares,
         then, after the date of record for effecting such subdivision, the
         Exercise Price in effect immediately prior to such subdivision will be
         proportionately reduced. During the Exercise Period, if the Company
         combines (by reverse stock split, recapitalization, reorganization,
         reclassification or otherwise) any shares of Common Stock into a
         smaller number of shares, then, after the date of record for effecting
         such combination, the Exercise Price in effect immediately prior to
         such combination will be proportionately increased.

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                  (b) ADJUSTMENT IN NUMBER OF SHARES. Upon each adjustment of
         the Exercise Price pursuant to the provisions of this Paragraph 4, the
         number of shares of Common Stock issuable upon exercise of this Warrant
         shall be adjusted by multiplying a number equal to the Exercise Price
         in effect immediately prior to such adjustment by the number of shares
         of Common Stock issuable upon exercise of this Warrant immediately
         prior to such adjustment and dividing the product so obtained by the
         adjusted Exercise Price.

                  (c) CONSOLIDATION, MERGER OR SALE. During the Exercise Period,
         in case of any consolidation of the Company with, or merger of the
         Company into any other corporation, or in case of any sale or
         conveyance of all or substantially all of the assets of the Company
         other than in connection with a plan of complete liquidation of the
         Company, then as a condition of such consolidation, merger or sale or
         conveyance, adequate provision will be made whereby the holder of this
         Warrant will have the right to acquire and receive upon exercise of
         this Warrant in lieu of the shares of Common Stock immediately
         theretofore acquirable upon the exercise of this Warrant, such shares
         of stock, securities or assets as may be issued or payable with respect
         to or in exchange for the number of shares of Common Stock immediately
         theretofore acquirable and receivable upon exercise of this Warrant had
         such consolidation, merger or sale or conveyance taken place. In any
         such case, the Company will make appropriate provision to insure that
         the provisions of this Paragraph 4 will thereafter be applicable as
         nearly as may be in relation to any shares of stock or securities
         thereafter deliverable upon the exercise of this Warrant.

                  (d) NOTICE OF ADJUSTMENT. Upon the occurrence of any event
         that requires any adjustment of the Exercise Price, then, and in each
         such case, the Company shall give notice thereof to the holder, which
         notice shall state the Exercise Price resulting from such adjustment
         and the increase or decrease in the number of Warrant Shares
         purchasable at such price upon exercise, setting forth in reasonable
         detail the method of calculation and the facts upon which such
         calculation is based. Such calculation shall be certified by
         independent public accountants then engaged by the Company.

                  (e) MINIMUM ADJUSTMENT OF EXERCISE PRICE. No adjustment of the
         Exercise Price shall be made in an amount of less than 1% of the
         Exercise Price in effect at the time such adjustment is otherwise
         required to be made, but any such lesser adjustment shall be carried
         forward and shall be made at the time and together with the next
         subsequent adjustment which, together with any adjustments so carried
         forward, shall amount to not less than 1% of such Exercise Price.

                  (f) NO FRACTIONAL SHARES. No fractional shares of Common Stock
         are to be issued upon the exercise of this Warrant, but the Company
         shall pay a cash adjustment in respect of any fractional shares which
         would otherwise be issuable in an amount equal to the same fraction of
         the Market Price (as defined herein) of a share of Common Stock on the
         date of such exercise.

                  (g) OTHER NOTICES. In case:

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                           (i) the Company shall declare any dividend upon the
                  Common Stock payable in shares of stock of any class or make
                  any other distribution (including dividends or distributions
                  payable in cash out of retained earnings) to the holders of
                  the Common Stock;

                           (ii) the Company shall offer for subscription pro
                  rata to the holders of the Common Stock any additional shares
                  of stock of any class or other rights;

                           (iii) there shall be any capital reorganization of
                  the Company, or reclassification of the Common Stock, or
                  consolidation or merger of the Company with or into or sale of
                  all or substantially all its assets to, another corporation or
                  entity; or

                           (iv) there shall be a voluntary or involuntary
                  dissolution, liquidation or winding-up of the Company;

         then, in each such case, the Company shall give to the holder (a)
         notice of the date on which the books of the Company shall close or a
         record shall be taken for determining the holders of Common Stock
         entitled to receive any such dividend, distribution, or subscription
         rights or for determining the legal holders of Common Stock entitled to
         vote in respect of any such reorganization, reclassification,
         consolidation, merger, sale, dissolution, liquidation or winding up and
         (b) in the case of any such reorganization, reclassification,
         consolidation, merger, sale, dissolution, liquidation or winding-up,
         notice of the date (or, if not then known, a reasonable approximation
         thereof by the Company) when the same shall take place. Such notice
         shall also specify the date on which the holders of Common Stock shall
         be entitled to receive such dividend, distribution, or subscription
         rights or to exchange their Common Stock for stock or other securities
         or property deliverable upon such reorganization, reclassification,
         consolidation, merger, sale, dissolution, liquidation, or winding-up,
         as the case may be. Such notice shall be given at least 30 days prior
         to the record date or the date on which the Company's books are closed
         in respect thereto. Failure to give any such notice or any defect
         therein shall not affect the validity of the proceedings referred to in
         clauses (i), (ii), (iii) and (iv) above.

                  (h) CERTAIN DEFINITIONS:

                  (i) "Market Price" as of any date, means (a) the average of
         the last reported sale prices on the principal trading market for the
         Common Stock for the five trading days immediately preceding the date
         of any such determination, or (b) if market value cannot be calculated
         as of such date on the foregoing basis, Market Price shall be the fair
         market value as reasonably determined in good faith by the Board of
         Directors of the Company. The manner of determining the Market Price of
         the Common Stock sets forth in the foregoing definition shall apply
         with respect to any other security in respect of which a determination
         as to market value must be made hereunder.

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                  (ii) "Common Stock" for the purposes of this Paragraph 4,
         includes the Common Stock, par value $0.001 per share, or shares
         resulting from any subdivision or combination of such Common Stock, or
         in the case of any reorganization, reclassification, consolidation, or
         sale of the character referred to in Paragraph 4(c), the stock or other
         securities or property provided for in such Paragraph.

         5. ISSUE TAX. The issuance of certificates for Warrant Shares upon the
exercise of this Warrant shall be made without charge to the holder or such
shares for any issuance tax or other costs in respect thereof, provided that the
Company shall not be required to pay any tax that may be payable in respect of
any transfer involved in the issuance and delivery of any certificate in a name
other than the holder of this Warrant.

         6. NO RIGHTS OR LIABILITIES AS A SHAREHOLDER. This Warrant shall not
entitle the holder to any voting rights or other rights as a shareholder of the
Company. No provision of this Warrant, in the absence of affirmative action by
the holder to purchase Warrant Shares, and no mere enumeration herein of the
rights or privileges of the holder, shall give rise to any liability of such
holder for the Exercise Price or as a shareholder of the Company, whether such
liability is asserted by the Company or by creditors of the Company.

         7. TRANSFER AND REPLACEMENT OF WARRANT.

                  (a) RESTRICTION ON TRANSFER. This Warrant and the rights
         granted to the holder are transferable, in whole or in part, upon
         surrender of this Warrant, together with a properly executed assignment
         in the form attached hereto, at the office of the Company referred to
         in Paragraph 7(d) below, PROVIDED, HOWEVER, that any transfer or
         assignment shall be subject to the conditions set forth in Paragraph
         7(e). Until due presentment for registration of transfer on the books
         of the Company, the Company may treat the registered holder as the
         owner and holder of this Warrant for all purposes, and the Company
         shall not be affected by any notice to the contrary.

                  (b) REPLACEMENT OF WARRANT. Upon receipt of evidence
         reasonably satisfactory to the Company of the loss, theft, destruction,
         or mutilation of this Warrant and, in the case of any such loss, theft,
         or destruction, upon delivery of an indemnity agreement reasonably
         satisfactory in form and amount to the Company, or, in the case of any
         such mutilation, upon surrender and cancellation of this Warrant, the
         Company, at its expense, will execute and deliver, in lieu thereof, a
         new Warrant of like tenor.

                  (c) CANCELLATION; PAYMENT OF EXPENSES. Upon the surrender of
         this Warrant in connection with any transfer or replacement as provided
         in this Paragraph 7, this Warrant shall be promptly canceled by the
         Company. The Company shall pay all taxes (other than securities
         transfer taxes) and all other expenses (other than legal expenses, if
         any, incurred by the Holder) in connection with the preparation,
         execution, and delivery of Warrants pursuant to this Paragraph 7.

                  (d) REGISTER. The Company shall maintain, at its principal
         executive offices (or such other office of the Company as it may
         designate by notice to the holder), a register for this Warrant, in
         which the Company shall record the name and address of the person in
         whose name this Warrant has been issued, as well as the name and
         address of each transferee and each prior owner of this Warrant.

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                  (e) EXERCISE OR TRANSFER WITHOUT REGISTRATION. If, at the time
         of the surrender of this Warrant in connection with any exercise,
         transfer, or exchange of this Warrant, this Warrant (or in the case of
         any exercise, the Warrant Shares issuable hereunder) shall not be
         registered under the Securities Act and under applicable state
         securities or blue sky laws, the Company may require, as a condition of
         allowing such exercise, transfer, or exchange (i) that the holder or
         transferee of this Warrant, as the case may be, furnish to the Company
         a written opinion of counsel, which opinion and counsel are reasonably
         acceptable to the Company, to the effect that such exercise, transfer
         or exchange may be made without registration under said Act and under
         applicable state securities or blue sky laws, and (ii) that the holder
         or transferee execute and deliver to the Company an investment letter
         in form and substance acceptable to the Company. The first holder of
         this Warrant, by taking and holding the same, represents to the Company
         that such holder is acquiring this Warrant for investment and not with
         a view to the distribution thereof.

         8. NOTICES. All notices, requests and other communications required or
permitted to be given or delivered hereunder to the holder of this Warrant shall
be in writing, and shall be personally delivered, or shall be sent by certified
or registered mail or by recognized overnight mail courier, postage prepaid and
addressed, to such holder at the address shown for such holder on the books of
the Company, or at such other address as shall have been furnished to the
Company by notice from such holder. All notices, requests, and other
communications required or permitted to be given or delivered hereunder to the
Company shall be in writing, and shall be personally delivered, or shall be sent
by certified or registered mail or by recognized overnight mail courier, postage
prepaid and addressed to the office of the Company at 5920 Friars Road, Suite
104, San Diego, California 92108 Attention: Chief Executive Officer, or at such
other address as shall have been furnished to the holder of this Warrant by
notice from the Company. Any such notice, request or other communication may be
sent by facsimile, but shall in such case be subsequently confirmed by a writing
personally delivered or sent by certified or registered mail or by recognized
overnight mail courier as provided above. All notices, requests and other
communications shall be deemed to have been given either at the time of the
receipt thereof by the person entitled to receive such notice at the address of
such person for purposes of this Paragraph 8 or, if mailed by registered or
certified mail or with a recognized overnight mail courier upon deposit with the
United States Post Office or such overnight mail courier, if postage is prepaid
and the mailing is properly addressed, as the case may be.

         9. GOVERNING LAW. THIS WARRANT SHALL BE GOVERNED AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF UTAH WITHOUT
REGARD TO THE BODY OF LAW CONTROLLING CONFLICTS OF LAW.

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         10. MISCELLANEOUS.

                  (a) AMENDMENTS. This Warrant and any provision it may only be
         amended by an instrument signed by the Company and the holder.

                  (b) DESCRIPTIVE HEADINGS. The descriptive headings of the
         several paragraphs of this Warrant are inserted for purposes of
         reference only, and shall not affect the meaning or construction of any
         of the provisions of this Warrant.

                  (c) SEVERABILITY AND SAVINGS CLAUSE. If any one or more of the
         provisions contained in this Agreement is for any reason (i) objected
         to, contested or challenged by any court, government authority, agency,
         department, commission or instrumentality of the United States or any
         state or political subdivision thereof, or any securities industry
         self-regulatory organization (collectively, "Governmental Authority"),
         or (ii) held to be invalid, illegal or unenforceable in any respect,
         the Company and the holder agree to negotiate in good faith to modify
         such objected to, contested, challenged, invalid, illegal or
         unenforceable provision. It is the intention of Company and the holder
         that there shall be substituted for such objected to, contested,
         challenged, invalid, illegal or unenforceable provision a provision as
         similar to such provision as may be possible and yet be acceptable to
         any objecting Governmental Authority and be valid, legal and
         enforceable. Further, should any provisions of this Agreement ever be
         reformed or rewritten by a judicial body, those provisions as rewritten
         will be binding, but only in that jurisdiction, on the holder and the
         Company as if contained in the original Agreement. The invalidity,
         illegality or unenforceability of any one or more provisions of this
         Warrant will not affect the validity and enforceability of any other
         provisions of this Warrant.

         WITNESS the signature of a proper officer of the Company as of the date
first above written.

                                                     NEW VISUAL CORPORATION

                                                     By:/s/ Ray Willenberg, Jr.
                                                     Name: Ray Willenberg, Jr.
                                                     Title: CEO

ATTEST:

/s/ C. Rich Wilson III
Secretary

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                              [FORM OF ASSIGNMENT]

                   (TO BE EXECUTED BY THE REGISTERED HOLDER IF
            SUCH HOLDER DESIRES TO TRANSFER THE WARRANT CERTIFICATE)

         FOR VALUE RECEIVED, _______________________________________ hereby
sells, assigns and transfers unto

________________________________________________________________________________
(Please print name, address and taxpayer identification number or social
security number of transferee.)

the accompanying Warrant Certificate, together with all right, title and
interest therein, and does hereby irrevocably constitute and appoint:

________________________________________________________________________________
attorney, to transfer the accompanying Warrant Certificate on the books of the
Company, with full power of substitution. The transferee's tax identification or
social security number is _____________________.

Dated: ________________, ______.

                                             [HOLDER]

                                             By: _______________________________
                                             Name: _____________________________
                                             Title: ____________________________

                                     NOTICE

         The signature to the foregoing Assignment must correspond to the name
as written upon the face of the accompanying Warrant Certificate or any prior
assignment thereof in every particular, without alteration or enlargement or any
change whatsoever.

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                         [FORM OF ELECTION TO PURCHASE]

                   (TO BE EXECUTED BY THE REGISTERED HOLDER IF
            SUCH HOLDER DESIRES TO EXERCISE THE WARRANT CERTIFICATE)

To: ____________________________:

The undersigned hereby irrevocably elects to exercise ____________ of the
Warrants represented by the accompanying Warrant Certificate to purchase the
shares of Common Stock issuable upon the exercise of such Warrants and requests
that certificates for such shares be issued in the name of:

________________________________________________________________________________
(Please print name and address.)

________________________________________________________________________________
(Please insert social security or other identifying number.)

The undersigned represents that it is acquiring the shares of Common Stock for
its own account and not with a view to distribution, and it will not sell these
shares unless they have been registered under the Securities Act of 1933 or an
exemption from such registration requirement is available.

If such number of Warrants shall not be all the Warrants evidenced by the
accompanying Warrant Certificate, a new Warrant Certificate for the balance
remaining of such Warrants shall be registered in the name of and delivered to:

________________________________________________________________________________
(Please print name and address.)

________________________________________________________________________________
(Please insert social security or other identifying number.)

Dated: ________________, ____.

                                             ___________________________________
                                             Holder

                                             By: _______________________________
                                             Name:______________________________
                                             Title: ____________________________

                                     NOTICE

         The signature to the foregoing Election to Purchase must correspond to
the name as written upon the face of the accompanying Warrant Certificate or any
prior assignment thereof in every particular, without alteration or enlargement
or any change whatsoever.

                                       9<PAGE>
EXHIBIT 10.7
OPTION AGREEMENT - WILLENBERG

                             NEW VISUAL CORPORATION
                      NON-QUALIFIED STOCK OPTION AGREEMENT
                      ------------------------------------

                                 PURSUANT TO THE

               NEW VISUAL CORPORATION 2000 OMNIBUS SECURITIES PLAN

         THIS NON-QUALIFIED STOCK OPTION AGREEMENT (this "AGREEMENT") is made
and entered into by and between NEW VISUAL CORPORATION, a Utah corporation (the
"COMPANY"), and RAY WILLENBERG, JR. (the "OPTIONEE"), effective as of February
25, 2002 (the "DATE OF GRANT").

         1. GRANT OF OPTION. The Company hereby grants to the Optionee and the
Optionee hereby accepts, subject to the terms and conditions hereof, a
Non-Qualified Stock Option (the "OPTION") to purchase up to 250,000 shares of
Company's Common Stock, par value $0.001 per share (the "COMMON STOCK"), at the
Exercise Price per share set forth in SECTION 4 below.

         2. GOVERNING PLAN. This Option is granted pursuant to the Company's
2000 Omnibus Securities Plan (the "PLAN"), a copy of which is attached hereto as
ATTACHMENT ONE and incorporated herein for all purposes. Capitalized terms used
but not otherwise defined herein have the meanings as set forth in the Plan. The
Optionee agrees to be bound by the terms and conditions of the Plan, which
control in case of any conflict with this Agreement, except as otherwise
specifically provided for in the Plan.

         3. EXPIRATION OF THE OPTION. The Option (to the extent not earlier
exercised or terminated in accordance with the Plan) will expire at the end of
business on February 25, 2012, which date is not in excess of ten (10) years
from the Date of Grant of the Option. The Option may terminate sooner under
certain circumstances, including termination of the Optionee's employment or
other business relationship with the Company and/or any Affiliated Entity, as
set forth in SECTIONS 5.13 and 5.14 of the Plan or upon certain Changes in
Control, as provided in SECTION 8.2 of the Plan. The Option may not be exercised
after its expiration or termination.

         4. EXERCISE PRICE. The "EXERCISE PRICE" of the Option is forty-two
cents ($0.42) per share of Common Stock. The Exercise Price is subject to
adjustment or amendment as set forth in the Plan, including SECTION 3.4, SECTION
4.5(b) or SECTION 6.2 of the Plan.

         5. VESTING. (a) On each Measurement Date set forth in Column 1 below,
the Option shall vest and become exercisable for the corresponding number of
shares of Common Stock set forth in Column 2 below if the Optionee's employment
or engagement with the Company and/or any Affiliated Entity has not terminated.
The "VESTED PORTION" of the Option as of any particular date shall be the
cumulative total of all shares for which the Option has become exercisable as of
that date.

------------------------------------- ----------------------------------
              COLUMN 1                            COLUMN 2

          Measurement Date              Vested Portion of the Option
------------------------------------- ----------------------------------
           April 30, 2002                          62,500
           July 31, 2002                           62,500
          October 31, 2002                         62,500
          January 31, 2002                         62,500
------------------------------------- ----------------------------------

NEW VISUAL CORPORATION, NON-QUALIFIED STOCK OPTION AGREEMENT - PAGE 1
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         (b) Notwithstanding anything to the contrary contained herein or in the
Plan, in the event the Optionee's employment or engagement with the Company
and/or an Affiliated Entity is terminated by the Company and/or an Affiliated
Entity within one (1) year following a Change in Control for reasons other than
Just Cause Dismissal, or if the Optionee terminates his employment or engagement
with the Company and/or an Affiliated Entity within one (1) year following a
Change in Control for Good Reason, then, immediately prior to the effective date
of such termination, all Options which have not lapsed prior to the date of such
termination shall become fully vested and exercisable (if not already vested and
exercisable) by Optionee for a period of three (3) months after such
termination, or in the event termination results from death or Permanent
Disability, for the period set forth in SECTION 5.13(A) OR 5.14(A) of the Plan,
as applicable, but, in any event, not after expiration of the Option pursuant to
SECTION 3 of this Agreement. The phrase "CHANGE IN CONTROL" used but not
otherwise defined herein has the meaning set forth in Article 9 of the Plan. The
phrase "GOOD REASON" shall mean the occurrence of, without Optionee's express
written consent, any material demotion of an Employee Optionee from the position
and the responsibilities which existed prior to the Change in Control, or
Optionee's death or Permanent Disability.

         (c) In addition, upon a Change in Control pursuant to SECTION 8.2 of
the Plan, this Option shall be automatically converted into the right to
receive, and thereafter shall be exercisable for, in accordance with the Plan
and this Agreement, the securities, cash and/or other consideration that a
holder of the shares underlying the Options would have been entitled to receive
upon a consummation of the Change in Control had such shares been issued and
outstanding immediately prior to the effective date and time of the Change in
Control (net of appropriate exercise prices).

         6. EXERCISE OF THE OPTION. The Vested Portion (as herein defined) of
the Option may be exercised, to the extent not previously exercised, in whole or
in part, at any time or from time to time prior to the expiration or termination
of the Option, except that no Option shall be exercisable except in respect to
whole shares, and not less than one hundred (100) shares may be purchased at one
time unless the number purchased is the total number at the time available for
purchase under the terms of the Option. Exercise shall be accomplished by
providing the Company with written notice in the form of EXHIBIT A hereto, which
notice shall be irrevocable when delivered and effective upon payment in full of
the Option Price in accordance with SECTION 5.4 of the Plan and any amounts
required in accordance with SECTION 5.11 of the Plan for withholding taxes, and
the satisfaction of all other conditions to exercise imposed under the Plan.

         7. PAYMENT OF OPTION PRICE. Upon any exercise of the Option, the total
Exercise Price for the number of shares for which the Option is then being
exercised and the amount of any federal, state and local withholding taxes shall
be paid in full to the Company in cash or with shares of Common Stock that have
been owned for at least six months by the Optionee (or by the Optionee and his
or her spouse jointly), or a combination thereof, or in such other form
permitted by applicable law and the Plan as the Administering Body deems
acceptable at the time of exercise.

         8. RESERVED.

         9. NONTRANSFERABILITY OF OPTION. The Option shall not be transferable
or assignable by the Optionee, other than in accordance with SECTION 5.9 of the
Plan or by will or the laws of descent and distribution (or as otherwise
permitted by the Administering Body in its sole discretion), and shall be
exercisable during the Optionee's lifetime only by him or her or by his or her
legal representative(s) or guardian(s) or any permitted transferee.

NEW VISUAL CORPORATION, NON-QUALIFIED STOCK OPTION AGREEMENT - PAGE 2
<PAGE>

         10. ADMINISTRATION. The Plan and this Agreement shall be administered
and may be definitively interpreted by the Administering Body, and the Optionee
agrees that the decisions of such Administering Body concerning administration
and interpretation of the Plan and this Agreement shall be final, binding and
conclusive on all persons.

         11. 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: (a) if to Optionee, at the address set forth on the
signature page hereto; or (b) if to the Company, at the address set forth in the
signature page hereto, or in either case, 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.

         12. 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.

                         [SIGNATURES ON FOLLOWING PAGE]

NEW VISUAL CORPORATION, NON-QUALIFIED STOCK OPTION AGREEMENT - PAGE 3
<PAGE>

         IN WITNESS WHEREOF, this Agreement has been executed on behalf of the
Company by its duly authorized officer, and by the Optionee in acceptance of the
above-mentioned Option, subject to the terms and conditions of the Plan and of
this Agreement, all as of the day and year first above written.

                                   COMPANY:

                                   NEW VISUAL CORPORATION,
                                   a Utah corporation

                                   BY: /s/ C. Rich Wilson III

                                   Name: C. Rich Wilson III

                                   Title: Vice President and Corporate Secretary

                                   Address:   5920 Friars Road, Suite 104
                                              San Diego, CA 92108

                                   OPTIONEE:

                                   /s/ Ray Willenberg, Jr.

                                   Printed Name: Ray Willenberg, Jr.

                                   Address:_____________________________________
                                           _____________________________________
                                           _____________________________________

NEW VISUAL CORPORATION, NON-QUALIFIED STOCK OPTION AGREEMENT - PAGE 4
<PAGE>

                                    EXHIBIT A
                                    ---------

                               NOTICE OF EXERCISE
                                      UNDER
                      NON-QUALIFIED STOCK OPTION AGREEMENT
                      ------------------------------------
                             ISSUED PURSUANT TO THE
               NEW VISUAL CORPORATION 2000 OMNIBUS SECURITIES PLAN

To:      New Visual Corporation (the "COMPANY")

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

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

         Pursuant to the New Visual Corporation 2000 Omnibus Securities Plan
(the "PLAN") and the Non-Qualified Stock Option Agreement (the "AGREEMENT")
(capitalized terms used without definition herein have the meanings given such
terms in the Agreement or the Plan) between the Company and myself effective
February 25, 2002, I hereby exercise my Option as follows:

--------------------------------------------------------------------------------
Number of shares of Common Stock I wish to purchase under the Option
--------------------------------------------------------------------------------
Exercise Price per Share                                                 $0.42
--------------------------------------------------------------------------------
Total Exercise Price                                                     $
--------------------------------------------------------------------------------
"Vested Portion" of Option (see definition in Section 5 of the Agreement)
--------------------------------------------------------------------------------
Number of shares I have previously purchased by exercising the Option
--------------------------------------------------------------------------------
Expiration Date of the Option                                  February 25, 2012
--------------------------------------------------------------------------------

         I hereby represent, warrant, and covenant to the Company that:

         a. I am acquiring the Common Stock for my own account, for investment,
and not for distribution or resale, and I 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 Plan.

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

         c. I am 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. Any subsequent offer for sale or distribution of any of the shares
of Common Stock shall be made only pursuant to (i) a registration statement on
an appropriate form under the Securities Act, which registration statement has
become effective and is current with regard to the shares being offered or sold,
or (ii) a specific exemption from the registration requirements of the
Securities Act, it being understood that to the extent any such exemption is
claimed, I shall, prior to any offer for sale or sale of such shares, obtain a
prior favorable written opinion, in form and substance satisfactory to the
Administering Body, from counsel for or approved by the Administering Body, as
to the applicability of such exemption thereto.

NEW VISUAL CORPORATION, NON-QUALIFIED STOCK OPTION AGREEMENT - EXHIBIT A
<PAGE>

         I acknowledge that I must pay the total 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 me.

         Attached in full payment of the Exercise Price for the Option exercised
herein is ( ) a check made payable to the Company in the amount of
$___________________ and/or ( ) a stock certificate for _______ shares of Common
Stock that have been owned by me or by me and my spouse jointly for at least six
months, with a duly completed stock power attached, with a total Fair Market
Value on the date hereof to the Total Exercise Price.

         Also attached in full payment of all withholding tax obligations
arising from exercise of the Option is (___) a check made payable tot he Company
in the amount of such required withholding and/or (____) a stock certificate for
____ shares of Common Stock that have been owned by me or by me and my spouse
jointly for at least six months, with a duly completed stock power attached,
with a total Fair Market Value on the date hereof to the amount of such required
withholding.

                                      Printed Name:
                                                   -----------------------------

                                      Address:
                                                 -------------------------------

                                      RECEIVED BY THE COMPANY:

                                      NEW VISUAL CORPORATION

                                      By:
                                         ---------------------------------------
                                      Name:
                                           -------------------------------------
                                      Title:
                                            ------------------------------------

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

NEW VISUAL CORPORATION, NON-QUALIFIED STOCK OPTION AGREEMENT - Page 2
<PAGE>

                                 ATTACHMENT ONE
                                 --------------
                                       TO
                             NEW VISUAL CORPORATION
                      NON-QUALIFIED STOCK OPTION AGREEMENT
                             ISSUED PURSUANT TO THE
                          2000 OMNIBUS SECURITIES PLAN

                                     COPY OF
                             NEW VISUAL CORPORATION

                          2000 OMNIBUS SECURITIES PLAN

                                 (SEE ATTACHED)

NEW VISUAL CORPORATION, NON-QUALIFIED STOCK OPTION AGREEMENT - ATTACHMENT ONE

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