Document:

EXHIBIT 10.AAe

                      AMENDED AND RESTATED AGENCY AGREEMENT

                                     between

                             TECH DATA CORPORATION,
                              as Construction Agent

                                       and

                   FIRST SECURITY BANK, NATIONAL ASSOCIATION,
              (formerly known as First Security Bank of Utah, N.A.,
                         not individually, but solely as
               Owner Trustee under the TD 1996 Real Estate Trust,
                                    as Lessor

                             Dated as of May 8, 2000

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                                TABLE OF CONTENTS

                                                                         PAGE
                                                                         ----

PRELIMINARY STATEMENT.....................................................1

ARTICLE I  DEFINITIONS....................................................1
         1.1      DEFINED TERMS...........................................1

ARTICLE II  APPOINTMENT OF CONSTRUCTION AGENT.............................2
         2.1      APPOINTMENT.............................................2
         2.2      ACCEPTANCE AND UNDERTAKING..............................5
         2.3      TERM....................................................5
         2.4      SCOPE OF AUTHORITY......................................6
         2.5      DELEGATION OF DUTIES....................................7
         2.6      COVENANTS OF THE CONSTRUCTION AGENT.....................7

ARTICLE III  THE IMPROVEMENTS.............................................8
         3.1      CONSTRUCTION............................................8
         3.2      AMENDMENTS; MODIFICATIONS...............................8
         3.3      ABANDONMENT OR PERMANENT DISCONTINUANCE.................9

ARTICLE IV  PAYMENT OF FUNDS..............................................9
         4.1      RIGHT TO RECEIVE CONSTRUCTION COST......................9

ARTICLE V  EVENTS OF DEFAULT.............................................10
         5.1      EVENTS OF DEFAULT......................................10
         5.2      DAMAGES................................................11
         5.3      REMEDIES; REMEDIES CUMULATIVE..........................11

ARTICLE VI  LESSOR'S RIGHTS; CONSTRUCTION AGENT'S RIGHTS.................12
         6.1      EXERCISE OF THE LESSOR'S RIGHTS........................12
         6.2      LESSOR'S RIGHT TO CURE CONSTRUCTION AGENT'S DEFAULTS...12

ARTICLE VII  MISCELLANEOUS...............................................13
         7.1      NOTICES................................................13
         7.2      SUCCESSORS AND ASSIGNS.................................13
         7.3      GOVERNING LAW..........................................13
         7.4      SUBMISSION TO JURISDICTION; WAIVERS....................13
         7.5      AMENDMENTS AND WAIVERS.................................14
         7.6      COUNTERPARTS...........................................14
         7.7      SEVERABILITY...........................................14
         7.8      HEADINGS AND TABLE OF CONTENTS.........................14
         7.9      WAIVER OF JURY TRIAL...................................14

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                      AMENDED AND RESTATED AGENCY AGREEMENT

         THIS AMENDED AND RESTATED AGENCY AGREEMENT, dated as of May 8, 2000
(the "AGREEMENT"), between FIRST SECURITY BANK, NATIONAL ASSOCIATION, a national
banking association, formerly known as First Security Bank of Utah, N.A.
("FSB"), not individually, but solely as Owner Trustee under the TD 1996 Real
Estate Trust (the "LESSOR") and TECH DATA CORPORATION, a Florida corporation
(the "CONSTRUCTION AGENT").

                              PRELIMINARY STATEMENT

         A. The Lessor and Tech Data Corporation (the "Lessee") entered into
that certain Lease Agreement dated as of April 26, 1996 (as amended, the
"Existing Lease"), pursuant to which the Lessee agreed to lease certain land,
improvements and equipment from the Lessor.

         B. In connection with the Existing Lease, the Lessor and the
Construction Agent entered into that certain Agency Agreement dated as of April
26, 1996 (as amended, the "Existing Agency Agreement"), pursuant to which the
Lessor appointed the Construction Agent as its sole and exclusive agent in
connection with the identification and acquisition of properties (provided title
to the properties would be held in the name of the Lessor) and construction of
improvements on such properties in accordance with certain plans and
specifications.

         C. The Lessor and the Lessee are amending and restating the Existing
Lease by entering into an Amended and Restated Lease Agreement dated as of the
date hereof (as further amended, modified or restated from time to time, the
"Lease").

         D. In connection with the Lease, the parties desire to amend and
restate the Existing Agency Agreement as hereinafter set forth;

         NOW, THEREFORE, in consideration of the foregoing, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Existing Agency Agreement is amended and restated in its
entirety as follows, and the parties hereto covenant and agree as follows:

                                    ARTICLE I

                                  DEFINITIONS

         1.1      DEFINED TERMS.

                  Capitalized terms used but not otherwise defined in this
Agreement shall have the meanings set forth in Appendix A to the Amended and
Restated Participation Agreement, dated as of May 8, 2000, among the
Construction Agent, the Lessee, FSB, not individually, but solely as Owner
Trustee under the TD 1996 Real Estate Trust, the Holders party thereto, the
Lenders

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party thereto, and Bank of America, N.A., successor in interest to
NationsBank, N.A. (South), as Agent for the Lenders, as such agreement may be
amended, modified, supplemented or restated from time to time (the
"Participation Agreement").

                                   ARTICLE II

                       APPOINTMENT OF CONSTRUCTION AGENT

         2.1      APPOINTMENT.

         (a) Subject to the terms and conditions hereof, the Lessor hereby
irrevocably designates and appoints the Construction Agent as its exclusive
agent and general contractor, and the Construction Agent accepts such
appointment, in connection with the identification and acquisition from time to
time of the Properties (provided title to the Properties (which may include a
ground leasehold interest in Land pursuant to a Ground Lease) shall be held in
the name of the Lessor) and the development, acquisition, installation,
construction and testing of the Equipment and Improvements on the Land in
accordance with the Plans and Specifications, and pursuant to the terms of this
Agreement, the Participation Agreement and the other Operative Agreements.
Notwithstanding any provisions hereof or in any other Operative Agreement to the
contrary, the Construction Agent acknowledges and agrees that the Lessor shall
advance no more than the sum of the aggregate Commitments of the Lenders plus
the aggregate amount of the Holder Commitments in regard to the Properties.

         (b) After the Construction Agent gains knowledge or a reasonable
expectation that (i) the aggregate costs for any Property shall exceed the
original Construction Budget (or exceed any Construction Budget modified in
accordance with the Operative Agreements) for such Property or (ii) Completion
for any Property shall not occur on or prior to the Construction Period
Termination Date, then the Construction Agent shall promptly (and in any event
within five (5) days of gaining such knowledge or expectation) notify the Lessor
and the Agent in writing of the same.

         (c) If at any time prior to the Construction Period Termination Date,
the Agent or the Lessor (i) shall have received any notice referred to in
SECTION 2.1(B) or (ii) shall have determined in good faith that (A) the sum of
the Available Commitments and the Available Holder Commitments shall be less
than the amounts necessary for Completion of all Properties or (B) the
Completion of any Property shall not occur on or prior to the Construction
Period Termination Date, then in any such case the Lessor shall have the option
(at the direction of the Agent) to replace the Construction Agent with a new
construction agent selected by the Lessor (at the direction of the Agent) to
finalize the Completion of the Properties before or (if consented to by the
Agent) after the Construction Period Termination Date. If the Lessor notifies
the Construction Agent (the "Agent Replacement Notice") that the Lessor intends
to replace the Construction Agent with a new construction agent, then the
Construction Agent shall have the option either:

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                  (1) to pay to the Lessor, on a date designated by the Lessor,
         an aggregate amount equal to the Maximum Amount; and on and after such
         date, the Construction Agent shall be irrevocably deemed, without any
         further action, to have relinquished all right, title and interest in
         and to all, but not less than all, of the Properties and to have
         transferred and conveyed all such right, title and interest to the
         Lessor; or

                  (2) to be responsible for all costs and expenses incurred to
         finalize the Completion of the Properties pursuant to this SECTION
         2.1(C); in which case all such costs shall be payable by the
         Construction Agent upon demand by the Lessor or the Agent; PROVIDED
         that in no event shall the obligations of the Construction Agent for
         such costs and expenses exceed the Maximum Amount; PROVIDED FURTHER
         that the Properties shall remain subject to the terms of the Lease
         (including without limitation the end-of-term options set forth in
         Articles XX and XXII of the Lease); or

                  (3) to pay to the Lessor, on a date designated by the Lessor,
         an aggregate amount equal to (1) the Termination Value for all, but not
         less than all, of the Properties, plus (2) all other amounts then due
         and owing by the Lessee or the Construction Agent under the Operative
         Agreements, plus (3) any and all costs and expenses incurred by or on
         behalf of the Lessor or the Agent in connection with the Properties
         (including without limitation the transfer thereof) and on such date
         the Lessor shall transfer and convey to the Construction Agent all
         right, title and interest of the Lessor in and to the Properties.

Within five (5) days after the delivery to the Construction Agent of an Agent
Replacement Notice, the Construction Agent shall deliver to the Lessor and the
Agent a notice selecting one of the options set forth in clause (1), (2) or (3)
above. In the event the Construction Agent fails to deliver such notice within
such time period, the Construction Agent shall be deemed to have selected the
option set forth in the clause (1) (unless the Construction Agent, the Lessor
and the Agent agree that option (2) or (3) shall apply). If the Construction
Agent selects (or is deemed to have selected) the option in clause (2), all
amounts expended by the Lessor to finalize the Completion of the Properties
pursuant to this Section shall be added to the Property Cost. Costs with respect
to any Property in excess of the original Construction Budget (or any
Construction Budget modified in accordance with the Operative Agreements) in
each case as previously delivered to the Agent for such Property shall not be
the responsibility of the Construction Agent but instead shall be paid using the
proceeds of Loans and Holder Fundings to the extent, but only to the extent,
that (after taking into account such excess costs and any other items of excess
cost which are then known to the Construction Agent or are reasonable for the
Construction Agent to expect) the conditions precedent set forth in SECTIONS 5.4
AND 5.5 of the Participation Agreement are satisfied.

         (d) If at any time prior to the Construction Period Termination Date,

                  (i) (A) the Construction Agent gains knowledge or a reasonable
         expectation that (1) the aggregate costs for any Property shall exceed
         the original Construction Budget (or exceed any Construction Budget
         modified in accordance with the Operative Agreements) for such Property
         or (2) Completion for any Property shall not occur on or prior to the
         Construction Period Termination Date, or (B) the Agent or the Lessor
         shall

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         have determined in good faith that (y) the sum of the Available
         Commitments and the Available Holder Commitments shall be less than the
         amounts necessary for Completion of all Properties or (z) the
         Completion of any Property shall not occur on or prior to the
         Construction Period Termination Date; and in any such case

                  (ii) any costs of Completion of any Property are not funded by
         the Lenders or Holders because (after taking into account such costs
         and any other items of cost which are then known to the Construction
         Agent or are reasonable for the Construction Agent to expect with
         respect to any Property), the conditions set forth in the Participation
         Agreement and the other Operative Agreements not satisfied;

then (whether or not a new construction agent has been selected pursuant to
SECTION 2.1(C)), within ten (10) days of the Construction Agent gaining any such
knowledge or expectation described in SECTION 2.1(D)(I)(A) above, or within ten
(10) days of the Lessor or the Agent delivering notice to the Construction Agent
of any determination described in SECTION 2.1(D)(I)(B) above and requesting
exercise of a Construction Agent Option, the Construction Agent shall deliver a
notice to the Agent and the Lessor, electing one of the options set forth in the
following clauses (Y) or (Z) (collectively, the "Construction Agent Options"):

                  (Y) the Construction Agent shall pay to the Lessor, on a date
         designated by the Lessor, an aggregate amount equal to (1) the
         Termination Value for all, but not less than all, of the Properties,
         plus (2) all other amounts then due and owing by the Lessee or the
         Construction Agent under the Operative Agreements, plus (3) any and all
         costs and expenses incurred by or on behalf of the Lessor or the Agent
         in connection with the Properties (including without limitation the
         transfer thereof) and on such date the Lessor shall transfer and convey
         to the Construction Agent all right, title and interest of the Lessor
         in and to the Properties; or

                  (Z) the Construction Agent shall pay to the Lessor, on a date
         designated by the Lessor, an aggregate amount equal to the Maximum
         Amount; and on and after such date, the Construction Agent shall be
         irrevocably deemed, without any further action, to have relinquished
         all right, title and interest in and to all, but not less than all, of
         the Properties and to have transferred and conveyed all such right,
         title and interest to the Lessor.

         (e) In connection with any transfer of the Properties to the
Construction Agent pursuant to SECTION 2.1(D)(Y) OR 3.3, the Lessor shall
transfer and convey all of its right, title and interest in and to the
Properties free and clear of the Lien of the Lease and all Lessor Liens. Subject
to the foregoing, all, but not less than all, of the Properties shall be
conveyed to the Construction Agent "AS IS", "WHERE IS" and in then present
physical condition.

         (f) In the event of a transfer of the Properties to the Construction
Agent pursuant to SECTION 2.1(D)(Y), the Lessor (at the direction of the Agent)
shall elect whether the out-of-pocket fees and expenses associated with the
transfer of the Properties shall be paid by either (I) sales proceeds for the
Properties, (II) the Lessor (but only to the extent amounts are available
therefor under the Available Commitments and Available Holder Commitments or
each Lender and each Holder approves the necessary increases in the Commitments
and Holder Commitments to fund

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such fees and expenses), or (III) the Construction Agent, PROVIDED, that if the
Construction Agent funds such fees and expenses pursuant to this clause (III)
then the Maximum Amount will be reduced accordingly, as more specifically set
forth in the definition of "Maximum Amount." Amounts funded by the Lenders and
the Holders with respect to any fees and expenses described in this SECTION
2.1(D) shall be added to the Property Cost.

         (g) In the event the costs in excess of any original Construction
Budget (or any Construction Budget modified in accordance with the Operative
Agreements), in each case as previously delivered to the Agent for any Property,
are not funded by the Lenders and the Holders because (after taking into account
such excess costs and any other items of excess cost which are then known to the
Construction Agent or are reasonable for the Construction Agent to expect), the
conditions precedent set forth in the Participation Agreement and the other
Operative Agreements are not satisfied, then such excess costs shall be funded
by the Lenders and the Holders if, but only if, (a) all of the Lenders and all
of the Holders agree to such funding at such time, and (b) the Commitments and
Holder Commitments are increased accordingly.

         (h) Without limiting the generality of any other provision of this
Agreement or any other Operative Agreement, in the event that Completion of any
Property has not occurred by the Construction Period Termination Date, then from
the Construction Period Termination Date until the date of Completion of all the
Properties, all Loans, Holder Advances and other amounts payable under the
Operative Agreements shall bear interest or Holder Yield (as applicable) at the
Overdue Rate.

         2.2 ACCEPTANCE AND UNDERTAKING. The Construction Agent hereby
unconditionally accepts the agency appointment and undertakes, for the benefit
of the Lessor, to identify and acquire certain Properties (including Equipment)
(provided title to the Properties shall be held in the name of the Lessor) and
to cause the construction of the Improvements and installation of the Equipment
in accordance with the Plans and Specifications and the Operative Agreements.

         2.3 TERM. This Agreement shall commence on the date hereof and (unless
the Agent in its sole discretion elects otherwise) shall terminate on the later
of the Construction Period Termination Date or the date on which all Properties
have been made subject to the Lease by execution of appropriate Lease
Supplements by the Lessee. If this Agreement expires prior to the Completion of
all, but not less than all, of the Properties, then the Lessor (at the direction
of the Agent) may hire a new construction agent to finalize the Completion of
all such Properties. All costs and expenses incurred by the Lessor (or a new
construction agent on behalf of the Lessor, but in each case through Loans and
Holder Fundings) to finalize the Completion of the Properties pursuant to this
SECTION 2.3 shall be reimbursed by the Construction Agent and shall be payable
by the Construction Agent upon demand by the Lessor or the Agent; PROVIDED that
in no event shall the obligations of the Construction Agent for such costs and
expenses exceed the Maximum Amount; and PROVIDED FURTHER that amounts expended
by the Lessor (with monies obtained through Loans and Holder Fundings) to
finalize the Completion of the Properties pursuant to this Section shall be
added to the Property Cost.

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         2.4      SCOPE OF AUTHORITY.

                  (a) The Lessor hereby expressly authorizes the Construction
         Agent, or any agent or contractor of the Construction Agent, and the
         Construction Agent unconditionally agrees, for the benefit of the
         Lessor, to take all action necessary or desirable for the performance
         and satisfaction of any and all of Lessor's obligations under any
         construction agreement and to fulfill all of the obligations of the
         Construction Agent including, without limitation:

                             (i) the identification and assistance with the
                  acquisition of Properties in accordance with the terms and
                  conditions of the Participation Agreement and the negotiation
                  and entering into of all contracts necessary to purchase the
                  Properties;

                            (ii) all design and supervisory functions relating
                  to the construction of the Improvements and installation and
                  testing of the related Equipment and performing all
                  engineering work related to the construction, installation and
                  testing of the Improvements;

                           (iii) (A) negotiating and entering into all contracts
                  or arrangements to procure the equipment necessary to
                  construct the Improvements and (B) negotiating all contracts
                  or arrangements to procure the Equipment on such terms and
                  conditions as are customary and reasonable in light of local
                  standards and practices and the businesses in which the Lessee
                  is engaged;

                            (iv) assisting in obtaining all necessary permits,
                  licenses, consents, approvals and other authorizations,
                  including without limitation those required under applicable
                  Environmental Laws and occupancy permits, from all
                  Governmental Authorities in connection with the development
                  and construction of the Improvements on the Land in accordance
                  with the Plans and Specifications;

                            (v) maintaining all books and records with respect
                  to the construction, operation and management of the
                  Properties; and

                             (vi) performing any other acts necessary in
                  connection with the identification and acquisition of the
                  Properties and construction and development of the
                  Improvements in accordance with the Plans and Specifications.

                  (b) Neither the Construction Agent nor any of its Affiliates
         or agents shall enter into any contract in the name of Lessor without
         Lessor's consent, which consent shall not be unreasonably withheld,
         conditioned or delayed.

                  (c) Subject to the terms and conditions of this Agreement, the
         Construction Agent shall have sole management and control over the
         construction means, methods, sequences and procedures with respect to
         the construction of the Improvements.

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         2.5 DELEGATION OF DUTIES. The Construction Agent may execute any of its
duties under this Agreement by or through agents, contractors, employees or
attorneys-in-fact; PROVIDED, HOWEVER, that no such delegation shall limit or
reduce in any way the Construction Agent's duties and obligations under this
Agreement.

         2.6 COVENANTS OF THE CONSTRUCTION AGENT. The Construction Agent hereby
covenants and agrees that it will:

                  (a) following the Construction Commencement Date for each
         Property, cause construction of the applicable Improvements to be
         prosecuted diligently, in a good and workmanlike manner, and
         substantially in accordance with the Plans and Specifications,
         construction contracts, Construction Budget and construction schedule
         for such Property, and in accordance with prevalent industry practices
         and all Legal Requirements and Insurance Requirements;

                  (b) cause the Completion Date for such Improvements to occur
         on or before the Construction Period Termination Date, in each case
         free and clear (by removal or bonding) of Liens (other than Permitted
         Liens); PROVIDED, that if the Completion Date does not occur on or
         before such date, then the Lessor may take such actions (and the
         Construction Agent shall pay such costs and expenses) as provided for
         in SECTION 2.3.

                  (c) cause all outstanding punch list items with respect to
         such Improvements to be completed;

                  (d) during construction, cause all title to all Equipment on
         each Property to vest in the Owner Trustee and file all necessary
         documents under Article 9 of the Uniform Commercial Code to perfect
         such title (to the extent perfection can be obtained by filing under
         the UCC);

                  (e) no less than five (5) Business Days prior to the scheduled
         date for the initial Construction Advance to be made in connection with
         any Improvements, the Construction Agent shall deliver to the Lessor
         true, complete and correct copies of the Construction Budget for such
         Improvements. Thereafter, the Construction Agent, on a monthly basis,
         shall deliver to the Lessor true, correct and complete copies of any
         material modifications of the Construction Budget; and

                  (f) procure (or cause to be procured), on behalf of Lessor
         (but at Construction Agent's expense) insurance for the Properties
         during the period commencing on each Property Closing Date and
         continuing to and throughout the Construction Period in such amounts
         and with such coverages as are required to be maintained during the
         Term under the provisions of ARTICLE XIV of the Lease.

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                                   ARTICLE III

                                THE IMPROVEMENTS

         3.1 CONSTRUCTION. The Construction Agent shall cause the Improvements
to be constructed, equipped, maintained and used in full compliance with all
Legal Requirements and Insurance Requirements.

         3.2      AMENDMENTS; MODIFICATIONS.

                  (a) The Construction Agent may at any time revise, amend or
         modify (i) the Plans and Specifications without the consent of the
         Lessor; PROVIDED that any such amendment to the Plans and
         Specifications does not (x) result in the Completion Date of the
         Improvements occurring on or after the Construction Period Termination
         Date or (y) result in the total Property Cost of the Improvements and
         the Land included in a Property being less than the minimum amount or
         more than the maximum amount specified in SECTION 5.4(E) of the
         Participation Agreement or (z) result in the cost of any Improvements
         subject to such amendment exceeding the sum of the then Available
         Commitments and the then Available Holder Commitments (reduced by the
         amount, if any, necessary to pay for the cost of construction and
         development of Improvements on other Properties which are currently
         under construction but have not yet been completed (such amount the
         "UNFUNDED AMOUNT")), and (ii) the Construction Budget without the
         consent of the Lessor; PROVIDED that such revision, modification or
         amendment to the Construction Budget does not (A) result in the total
         Property Cost of the Improvements Equipment and Land included in a
         Property being less than the minimum amount or more than the maximum
         amount specified in SECTION 5.4(E) of the Participation Agreement or
         (B) result in unfunded Project Costs being greater than the sum of the
         then Available Commitments and the then Available Holder Commitments
         (reduced by the Unfunded Amount) or (C) result in the aggregate
         Construction Budget (as amended, modified or revised) for any Property
         being larger than 105% of the initial Construction Budget delivered to
         the Agent with respect to such Property (prior to any amendments,
         modifications or revisions).

                  (b) The Construction Agent agrees that it will not implement
         any revision, amendment or modification to the Plans and Specifications
         or Construction Budget for any Property if the aggregate effect of such
         revision, amendment or modification, when taken together with any
         previous or contemporaneous revision, amendment or modification to the
         Plans and Specifications or Construction Budget (as the case may be)
         for any Property, would cause a material reduction in value of any
         Property when completed, unless the Agent has previously obtained (at
         Construction Agent's sole cost) an Appraisal of such Property taking
         account of such proposed revision, amendment or modification and
         showing an appraised value for such Property equal to or greater than
         90% of the expected maximum Property Cost of such Property (based on
         appropriately revised Construction Budgets).

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         3.3 ABANDONMENT OR PERMANENT DISCONTINUANCE. Until termination of the
Lease Agreement and the Agency Agreement, the Construction Agent shall promptly
and diligently complete the construction of such Improvements in accordance with
the Plans and Specifications and with the terms hereof and cause the Completion
Date with respect to such Construction Period Property to occur on or prior to
the Construction Period Termination Date. If the Construction Agent shall
abandon or permanently discontinue the construction and development of one or
more Construction Period Properties (which abandonment or permanent
discontinuance shall be deemed to have occurred if no work at any such
Construction Period Property site is undertaken or completed during a period of
thirty (30) days or more for reasons other than a Force Majeure Event, then the
Construction Agent shall pay to the Lessor, on a date designated by the Lessor,
an aggregate amount equal to the liquidated damages amount referenced in SECTION
5.3(B) of this Agreement regarding all, but not less than all, of the
Properties. On such date, Lessor shall transfer all of its right, title and
interest in the Properties to the Construction Agent in accordance with SECTION
2.1(E).

                                   ARTICLE IV

                                PAYMENT OF FUNDS

         4.1      RIGHT TO RECEIVE CONSTRUCTION COST.

                  (a) In connection with the acquisition of any Property and
         during the course of the construction of the Improvements and
         installation of any Equipment on any Property, the Construction Agent
         may request that the Lessor advance funds for the payment of Property
         Acquisition Costs, Transaction Expenses or any other Property Cost
         (such Property Acquisition Expenses, Transaction Expenses and other
         Property Cost being referred to collectively as "Project Costs"), and
         the Lessor will comply with such request to the extent provided for
         under the Participation Agreement. The Construction Agent and the
         Lessor acknowledge and agree that the Construction Agent's right to
         request such funds and the Lessor's obligation to advance such funds
         for the payment of Property Acquisition Costs or Project Costs is
         subject in all respects to the terms and conditions of the
         Participation Agreement and each of the other Operative Agreements.
         Without limiting the generality of the foregoing, it is specifically
         understood and agreed that in no event shall the aggregate amounts
         advanced by the Lenders or the Holders to the Lessor for Property
         Acquisition Costs or Project Costs and any other amounts due and owing
         hereunder or under any of the other Operative Agreements exceed the sum
         of the aggregate Commitments of the Lenders plus the aggregate amount
         of the Holder Commitments, including without limitation such amounts
         owing for (a) the acquisition and development of the Properties or (b)
         additional amounts which accrue or become due and owing under the
         Credit Agreement or Trust Agreement as obligations of the Lessor prior
         to any Completion Date (for interest payments on the Loans or payments
         of the Holder Yield for the Holder Advances).

                  (b) The proceeds of any funds made available to the Lessor to
         pay Property Acquisition Costs or Project Costs shall be made available
         to the Construction Agent in

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         accordance with the Requisition relating thereto and the terms of the
         Participation Agreement. The Construction Agent will use such proceeds
         only to pay the Property Acquisition Costs or Project Costs set forth
         in the Requisition relating to such funds.

                                    ARTICLE V

                               EVENTS OF DEFAULT

         5.1 EVENTS OF DEFAULT. If any one or more of the following events (each
an "EVENT OF DEFAULT") shall occur:

                  (a) the Construction Agent shall fail to apply any funds paid
         by the Lessor to the Construction Agent for the acquisition of the
         Properties and the construction of the Improvements to the payment of
         Property Acquisition Costs or Project Costs;

                  (b) the Construction Agent shall fail to make any payment
         required pursuant to the terms of this Agreement (including without
         limitation pursuant to SECTION 2.1 or 3.3) within three (3) Business
         Days after the same has become due and payable;

                  (c) any "Lease Event of Default" (as defined in Appendix A to
         the Participation Agreement) shall have occurred and not be cured
         within any cure period expressly permitted under the terms of the
         respective Operative Agreement;

                  (d) the Construction Agent shall fail to maintain insurance as
         required by SECTION 2.6(F) of this Agreement;

                  (e) the Construction Agent or the Lessee shall fail to observe
         or perform any material term, covenant or condition of this Agreement
         or any other Operative Agreement other than as set forth in paragraphs
         (a), (b), (c) or (d) of this SECTION 5.1 or SECTION 17.1(A), 17.1(B),
         17.1(C) or 17(G) of the Lease, and such failure or breach shall remain
         uncured for a period of thirty (30) days after receipt of written
         notice from Lessor thereof; PROVIDED, that if such failure or breach is
         not capable of being cured, the grace period referred to in this
         subclause (e) shall not apply; or

                  (f) any representation, warranty or statement of fact by the
         Construction Agent, the Lessee or any Guarantor set forth in any
         Operative Agreement or in any writing, report, certificate, or
         statement at any time furnished to Lessor, the Agent, any Holder or any
         Lender, by or on behalf of the Construction Agent, the Lessee or any
         Guarantor pursuant to or in connection with this Agreement or any other
         Operative Agreement, shall be false or misleading in any material
         respect when made;

then, in any such event, the Lessor may, in addition to the other rights and
remedies provided for in this Agreement, terminate this Agreement by giving the
Construction Agent written notice of such termination and upon the expiration of
the time fixed in such notice and the payment of all amounts owing by the
Construction Agent hereunder (including without limitation any amounts

                                       10
<PAGE>

specified under SECTION 5.3 hereof), this Agreement shall terminate. The
Construction Agent shall pay all reasonable costs and expenses incurred by or on
behalf of the Lessor, including reasonable fees and expenses of counsel, as a
result of any Event of Default hereunder.

         5.2 DAMAGES . The termination of this Agreement pursuant to SECTION 5.1
shall in no event relieve the Construction Agent of its liability and
obligations hereunder, all of which shall survive any such termination.

         5.3      REMEDIES; REMEDIES CUMULATIVE.

                  (a) If an Event of Default shall have occurred and be
         continuing, the Lessor shall have all rights available at law, equity
         or otherwise.

                  (b) Without limiting the generality of paragraph (a) above,
         upon the occurrence of an Event of Default, beyond any applicable
         notice, grace or cure period (if any) included within the definition of
         such Event of Default, Lessor shall have the option (and shall be
         deemed automatically, and without any further action, to have exercised
         such option upon the occurrence of any Lease Event of Default arising
         under SECTIONS 17.1(H), (I), or (J) of the Lease) to transfer and
         convey to the Construction Agent upon a date designated by Lessor all
         right, title and interest of Lessor in and to all of the Properties. On
         any transfer and conveyance date specified by Lessor pursuant to this
         SECTION 5.3(B), (i) Lessor shall transfer and convey all of its right,
         title and interest in and to all of the Properties free and clear of
         the Lien of the Lease and all Lessor Liens, (ii) the Construction Agent
         hereby covenants and agrees that it will accept such transfer and
         conveyance of right, title and interest in and to such Properties and
         (iii) the Construction Agent hereby promises to pay to the Lessor, as
         liquidated damages (it being agreed that it would be impossible
         accurately to determine actual damages), an aggregate amount equal to
         the aggregate Termination Value of all of the Properties, plus all Rent
         and other amounts then due and owing by the Construction Agent or the
         Lessee under the Operative Agreements. The Construction Agent
         specifically acknowledges and agrees that its obligations under this
         SECTION 5.3(B), including without limitation its obligations to accept
         the transfer and conveyance of any Construction Period Property and its
         payment obligations described in subparagraph (iii) of this SECTION
         5.3(B), shall be absolute and unconditional under any and all
         circumstances and shall be performed or paid, as the case may be,
         without further notice or demand and without any abatement, reduction,
         diminution, set off, defense, counterclaim or recoupment whatsoever.
         Notwithstanding the foregoing provisions of this SECTION 5.3(B), Lessor
         shall have the right in its sole discretion to rescind any exercise of
         its option under this SECTION 5.3(B) upon the giving of its written
         confirmation of such rescission to the Construction Agent.

                  (c) The Construction Agent shall have the right to cure an
         Event of Default hereunder with respect to any given Property (to the
         extent such Event of Default is caused by a Force Majeure Event) by
         purchasing or causing the Lessee to purchase such Property from the
         Lessor (to the extent such Event of Default is no longer continuing
         with respect to any other Property remaining subject to this Agreement
         after such purchase) for an amount equal to the Termination Value of
         such Property and all other

                                       11
<PAGE>

         amounts then due and owing by the Construction Agent or the Lessee
         under the Operative Agreements.

                  (d) No failure to exercise and no delay in exercising, on the
         part of the Lessor, any right, remedy, power or privilege under this
         Agreement or under the other Operative Agreements shall operate as a
         waiver thereof; nor shall any single or partial exercise of any right
         remedy, power or privilege under this Agreement preclude any other or
         further exercise thereof or the exercise of any other right, remedy,
         power or privilege. The rights, remedies, powers and privileges
         provided in this Agreement are cumulative and not exclusive of any
         rights, remedies, powers and privileges provided by law.

                  (e) The foregoing notwithstanding, so long as the Construction
         Agent promptly pays the amounts required by Sections 2.3 and 2.6(b) and
         provided no Abandonment has occurred, then the Agent may not require
         the Construction Agent to pay in excess of the Maximum Amount as a
         remedy for the Construction Agent's failure to cause the Completion
         Date of a Property to occur on or before the Construction Period
         Termination Date. Nothing contained in this paragraph, however, shall
         prevent the Lessor from requiring the Lessee or the Construction Agent
         to pay the full amount required under any applicable provision of this
         Agreement or any other Operative Agreement if the Lessee or the
         Construction Agent exercises any option to purchase or cause the sale
         of any Property; and the Lessor shall not be required to transfer or
         convey any Property pursuant to Section 5.3(b) hereof (or any other
         provision of this Agreement or any other Operative Agreement) unless
         the Lessee or the Construction Agent pays the full amount required
         under such Section 5.3(b) (or such other provision, as the case may
         be).

                                   ARTICLE VI

                  LESSOR'S RIGHTS; CONSTRUCTION AGENT'S RIGHTS

         6.1 EXERCISE OF THE LESSOR'S RIGHTS. Subject to the Excepted Rights and
the Excepted Payments, the Construction Agent and the Lessor hereby acknowledge
and agree that, subject to and in accordance with the terms of the Security
Agreement made by the Lessor in favor of the Agent, the rights and powers of the
Lessor under this Agreement have been assigned to the Agent.

         6.2 LESSOR'S RIGHT TO CURE CONSTRUCTION AGENT'S DEFAULTS. The Lessor,
without waiving or releasing any obligation or Event of Default, may (but shall
be under no obligation to) remedy any Event of Default for the account of and at
the sole cost and expense of the Construction Agent. All reasonable
out-of-pocket costs and expenses so incurred (including reasonable fees and
expenses of counsel), together with interest thereon at the Overdue Rate from
the date on which such sums or expenses are paid by the Lessor, shall be paid by
the Construction Agent to the Lessor on demand.

                                       12
<PAGE>

                                   ARTICLE VII

                                 MISCELLANEOUS

         7.1 NOTICES. Unless otherwise expressly specified or permitted by the
terms hereof, all notices, requests, demands, directions, agreements and
documents delivered in connection with this Agreement shall be delivered as
provided in SECTION 14.3 of the Participation Agreement.

         7.2 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the Lessor, and Construction Agent and the respective
successors and the assigns of the Lessor. The Construction Agent may not assign
this Agreement or any of its rights or obligations hereunder in whole or in part
to any Person without the prior written consent of the Lessor.

         7.3 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF FLORIDA, WITHOUT REGARD TO CONFLICTS
OF LAWS PRINCIPLES.

         7.4 SUBMISSION TO JURISDICTION; WAIVERS. Each party hereto hereby
irrevocably and unconditionally:

                  (a) submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Operative Agreements to
which it is a party, or for recognition and enforcement of any judgment in
respect thereof, to the non-exclusive general jurisdiction of the Courts of the
State of Florida and the courts of the United States of America in each case
sitting in Broward County, Florida, and appellate courts from any thereof;

                  (b) consents that any such action or proceeding may be brought
in such courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same.

                  (c) agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail) postage prepaid, to the
respective party at its address set forth in SECTION 7.1 hereof or at such other
address of which the Administrative Agent shall have been notified pursuant
thereto;

                  (d) agrees that nothing herein shall affect the right to
effect service of process in any other manner permitted by law or shall limit
the right to sue in any other jurisdiction; and

                  (e) waives, to the maximum extent not prohibited by law, any
right it may have to claim or recover in any legal action or proceeding referred
to in this SECTION 7.4 any special, exemplary, punitive or consequential
damages.

                                       13
<PAGE>

         7.5 AMENDMENTS AND WAIVERS. None of the terms or provisions of this
Agreement may be terminated, amended, supplemented, waived or modified except in
accordance with the terms of SECTION 14.5 of the Participation Agreement.

         7.6 COUNTERPARTS . This Agreement may be executed in any number of
separate counterparts and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.

         7.7 SEVERABILITY. Any provision of this Agreement which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         7.8 HEADINGS AND TABLE OF CONTENTS. The headings and table of contents
contained in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof.

         7.9 WAIVER OF JURY TRIAL. THE LESSOR AND THE CONSTRUCTION AGENT
IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

                       [Signatures on the following page.]

                                       14
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their proper and duly authorized officers as of
the day and year first above written.

                               TECH DATA CORPORATION, as the Construction Agent

                               By: /s/
                                  ---------------------------
                               Name:  Jeffery P. Howells
                               Title: Executive Vice President of Finance and
                                      Chief Financial Officer

                               FIRST SECURITY BANK, NATIONAL ASSOCIATION, not
                               individually, but solely as Owner Trustee under
                               the TD 1996 Real Estate Trust, as the Lessor

                               By: /s/
                                  ---------------------------
                               Name: C. Scott Nielsen
                               Title: Vice President

                                SIGNATURE PAGE 1CLIENT SERVICE AGREEMENT

THIS AGREEMENT is made and entered into this 7th day of June 2000, between
CONTINENTAL CAPITAL & EQUITY CORPORATION, located at 195 Wekiva Springs Road,
Suite 200, Longwood, FL 32779, (hereinafter referred to as "CCEC") and NEW
VISUAL ENTERTAINMENT, INC., located at 5920 Friars Road, Suite 104, San Diego,
California 92108 (hereinafter referred to as the "Company").

WITNESSETH:
         WHEREAS, CCEC is a financial relations and direct marketing advertising
firm specializing in the dissemination of information about publicly traded
companies, and
         WHEREAS, the Company is publicly held with its common stock trading on
the Over- the-counter bulletin board, and
         WHEREAS, the Company desires to publicize itself with the intention of
making its name and business better known to shareholders, investors, brokerage
houses, institutional investors, analysts and other industry professionals, and
         WHEREAS, CCEC is willing to accept the Company as a client.

NOW THEREFORE, in consideration of the mutual covenants herein contained, it is
agreed:

1. ENGAGEMENT: The Company hereby engages CCEC to publicize the Company to
brokers, prospective investors, institutional investors, analysts, other
industry professionals and shareholders as described in Section 2 of this
Agreement, and subject to the further provisions of this Agreement. CCEC hereby
accepts the Company as a client and agrees to publicize it as described in
Section 2 of this Agreement, but subject to the further provisions of this
Agreement.

2. MARKETING PROGRAM:  Consists of the following components:

         (A) CCEC will review and analyze various aspects of the Company's goals
and make recommendations on feasibility and achievement of desired goals.

         (B) Upon CCEC's receipt of payment of shares and/or receipt of
Company's cash payment, as detailed in Section 4(A), CCEC will review all of the
general information and recent filings from the Company and produce at least a
50,000 piece and up to a 100,000 piece direct mail package to include an 11" X
17" self mailer and an ample number of corporate profiles so as to allow for one
profile for each respondent to the original mailing, all items to be approved by
the Company prior to circulation. Response devices engaged to capture
respondents from the direct mail piece shall include a Postage-Paid Business
Reply Card, a 24-hour, toll-free call-in number exclusively featuring the
Company, and an online response card posted to CCEC's website in conjunction
with the electronic version of the direct mail piece featured on
www.insidewallstreet.com and mass e-mailed to Inside Wall Street e-mail
subscribers.
         (C) CCEC will provide exposure to its network of firms and brokers that
may be interested in participating with the Company and schedule and conduct the
necessary due diligence and obtain the required approvals necessary for those
firms to participate. CCEC will also interview and make determinations on any
firms or brokers referred by the Company with regard to their participation.

                                       1
<PAGE>

         (D) At the Company's request, CCEC will be available to the Company to
field any calls from firms and brokers inquiring about the Company.
         (E) CCEC will use its best efforts to obtain the Company exposure on
radio programming, in independent financial newsletters, and through on-line fax
and Internet broadcast services.
         (F) CCEC will promote the Company on the Worldwide Internet via CCEC's
home web site (www.insidewallstreet.com). Further CCEC shall create banner ads
for placement on financial web sites with hyperlinks back to the Company's
feature page on CCEC's home web site. The banner ads shall run for two (2)
months.
         (G) At the Company's request, CCEC shall write, produce and assist the
Company in releasing all press announcements. The Company shall be solely
responsible for paying all fees associated with the actual release(s) through
BusinessWire, P.R. Newswire, or any other comparable news dissemination source.
         (H) CCEC will create, build and continually update and enhance a fax
database of all brokers, investors, analysts and media contacts who have
expressed an interest in receiving ongoing information on the Company. CCEC will
assist the Company in setting up an account with a fax broadcasting agency to
manage the actual broadcasting in the event Company does not have this
capability in-house. Further, CCEC will, at its election and expense, mass-fax
broadcast select releases to its network of U.S. stockbrokers, analysts and
institutional investors.
         (I) CCEC will obtain express written approval from the Company on all
material produced by CCEC prior to disseminating the information to the public.

3. TIME OF PERFORMANCE: Services to be performed under this Agreement shall
commence upon execution of this Agreement and shall continue for a period of six
(6) months.

4. COMPENSATION AND EXPENSES: In consideration of the services to be performed
by CCEC, the Company agrees to pay compensation to CCEC as follows:

         (A) Fifty thousand dollars ($50,000.00), payable as follows:
                  *  $25,000.00 due upon the execution of this Agreement, plus
                  *  $25,000.00  due upon the approval of the press-ready  proof
of the Inside Wall Street direct mail piece.
         (B) CCEC shall also be issued a certificate representing two hundred
thousand (200,000) "pre-reverse split" shares of the Company's common stock,
which certificate shall be issued within three business days after the execution
of this Agreement by CCEC. CCEC acknowledges that the Company intends to effect
a 1-for-4 reverse stock split and that such certificate will thereafter
represent fifty thousand (50,000) "post-reverse split" shares of the Company's
common stock. CCEC and the Company shall enter into a registration rights
agreement in substantially the form of Exhibit A hereto, with respect to the
registration of such shares.
         (C) Within three business days after the Company effects its 1-for-4
reverse stock split, CCEC shall be issued a Warrant, the form of which is
attached hereto as Exhibit B, entitling it to purchase, in the aggregate, up to
200,000 shares of the Company's "post-reverse split" common stock (the "Warrant
Shares"). The Warrant shall be divided into four tranches of fifty thousand
(50,000) shares each, with each tranche to have the following exercise prices:
Tranche I - $7.00 per share; Tranche 2 - $8.50 per share; Tranche 3 - $10.00 per

                                       2
<PAGE>

share; and Tranche 4 - $11.50 per share. Upon issuance of the Warrant, CCEC and
the Company shall enter into a registration rights agreement in substantially
the form of Exhibit C hereto, with respect to the registration of the Warrants
Shares.

5. REPRESENTATIONS AND WARRANTIES:

(i) The Company represents and warrants to CCEC, each such representation and
warranty being deemed to be material that:
         (A) The Company will cooperate fully and timely with CCEC to enable
CCEC to perform its obligations under this Agreement.
         (B) The execution and performance of this Agreement by the Company has
been duly authorized by the Board of Directors of the Company in accordance with
applicable law, and, to the extent required, by the requisite number of
shareholders of the Company;
         (C) The performance by the Company of this Agreement will not violate
any applicable court decree, law or regulation, nor will it violate any
provisions of the organizational documents of the Company or any contractual
obligation by which the Company may be bound.
         (D) The Company will promptly deliver to CCEC a complete due diligence
package to include latest 10K, latest 10Q, last six (6) months of press releases
and all other relevant materials, including but not limited to corporate
reports, brochures, etc.
         (E) The Company will promptly deliver to CCEC a list of names and
addresses of all shareholders of the Company of which it is aware.
         (F) The Company will promptly deliver to CCEC a list of brokers and
market makers of the Company's securities which have been following the Company.
         (G) Because CCEC will rely on such information to be supplied it by the
Company, all such information shall be true, accurate, complete and not
misleading, in all respects.
         (H) The Company will act diligently and promptly in reviewing materials
submitted to it by CCEC to enhance timely distribution of the materials and will
inform CCEC of any inaccuracies contained therein prior to the projected
publication date.
(ii) CCEC represents and warrants to the Company, each such representation and
warranty being deemed to be material, that:
         (A) The execution and performance of this Agreement by CCEC has been
duly authorized by CCEC, in accordance with applicable law, and the performance
by CCEC will not violate any applicable court decree, law or regulation, nor
will it violate any provisions of the organizational documents of CCEC or any
contractual obligation by which CCEC may be bound.
         (B) Notwithstanding the information made known to the Company regarding
CCEC's selling shareholder, founder and outgoing President John R. Manion, since
January 1, 1997, and as of the date hereof, there is no suit, claim, action,
proceeding, administrative hearing or investigation pending or, to the knowledge
of CCEC, threatened, against CCEC or any of its officers, directors of
affiliates before any court, agency or other governmental entity regarding any
actual or alleged violation of the securities laws or regulations of the United
States or any State thereof (a "Securities Action"). Notwithstanding the
information made known to the Company regarding CCEC's selling shareholder,
founder and outgoing President John R. Manion, since January 1, 1997 and as of
the date hereof, neither CCEC nor any of its officers, directors or affiliates
have been subject to any outstanding order, writ, judgement, injunction, decree
or arbitration order or award as a result of any Securities Action.

                                       3
<PAGE>

         (C) CCEC is an "accredited investor" within the meaning of Rule
501(a)(3) Linder the Securities Act of 1933, as amended (the "Securities Act"),
and the Restricted Shares and the Warrant Shares are and will be acquired for
CCEC's own account and not with a view toward, or for sale in connection with,
any distribution thereof except in compliance with applicable United States
federal and state securities law.
         (D) CCEC understanding that the Restricted Shares and the Warrant
Shares have not been registered under the Securities Act and may not be
transferred or sold except as permitted under the Securities Act and applicable
state securities laws, pursuant to either an effective registration statement or
an exemption therefrom, and that the Restricted Shares and any Warrant Shares
issued will contain a legend to that effect.

6. DISCLAIMER BY CCEC: CCEC WILL BE THE PREPARER OF CERTAIN PROMOTIONAL
MATERIALS. CCEC MAKES NO REPRESENTATION THAT (A) ITS SERVICE WILL RESULT IN ANY
ENHANCEMENT TO THE COMPANY (B) THE PRICE OF THE COMPANY'S PUBLICLY TRADED
SECURITIES WILL INCREASE, (C) ANY PERSON WILL PURCHASE SECURITIES IN THE
COMPANY, OR (D) ANY INVESTOR WILL LEND MONEY TO OR INVEST IN OR WITH THE
COMPANY.

7. EARLY TERMINATION: If the Company fails to make timely payment of the
compensation set forth in Section 4 of this Agreement, or if the Company commits
a material breach of its representations and warranties under Section 5 of this
Agreement that is not cured within 30 days after the Company receives written
notice of the breach from CCEC, then CCEC shall have the right, for 30 days
after failure or uncured breach, to terminate any further performance under this
Agreement. In such event, provided that CCEC has not breached its obligations
hereunder, all compensation shall become immediately due and payable and/or
deliverable, and CCEC shall be entitled to receive and retain the same as
liquidated damages, and not as a penalty, in lieu of all other remedies, the
parties acknowledging and agreeing that it would be too difficult currently to
determine the exact extent of CCEC's damage, but that the receipt and retention
of such compensation is reasonable present estimate of such damage.

8. LIMITATION OF LIABILITY: If CCEC fails to perform its services hereunder, its
entire liability to the Company shall not exceed the lessor of (a) the amount of
cash compensation CCEC has received from the Company under Section 4 of this
Agreement or (b) the actual damage to the Company as a result of such
non-performance. If the Company breaches this Agreement, its sole liability to
CCEC shall not exceed the obligation to pay the compensation set forth in
Section 4 of this Agreement. IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE
OTHER FOR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES NOR FOR ANY CLAIM BY
ANY PERSON OR ENTITY ARISING FROM OR IN ANY WAY RELATED TO THIS AGREEMENT,
UNLESS (i) IN THE CASE OF THE COMPANY, SUCH DAMAGES RESULT FROM THE COMPANY'S
INTENTIONAL MISCONDUCT, OR (ii) IN THE CASE OF CCEC, SUCH DAMAGES RESULT FROM
CCEC'S INTENTIONAL MISCONDUCT (WHICH SHALL NOT INCLUDE THE DISTRIBUTION OF
MATERIAL AUTHORIZED IN WRITING BY THE COMPANY) OR FROM THE USE, BY CCEC, OF
INFORMATION NOT AUTHORIZED BY THE COMPANY.

                                       4
<PAGE>

9. OWNERSHIP OF MATERIALS: All right, title, and interest in and to materials
produced by CCEC in connection with its performance of services hereunder shall
be deemed works made for hire and shall be the property of the Company upon
payment to CCEC of the compensation to be paid pursuant to Section 4 hereof.
Notwithstanding the foregoing, the Company shall have the right, title and
interest in any CCEC trademark, trade name, domain name or service mark, and
shall have no right to use the same after the termination of this Agreement
without the prior written consent of CCEC. The parties agree to execute any
further documentation necessary to effect the purposes of this section.

10. CONFIDENTIALITY: Until such time as the same may become publicly known, CCEC
agrees that any information of a confidential nature will be used by CCEC solely
in connection with its performances hereunder and will not be revealed or
disclosed to any person or entity, except in the performance of this Agreement,
and upon completion of its services and upon written request of the Company all
materials and original documentation provided by the Company will be returned to
it. CCEC will, however, require Confidentiality Agreements from its own
employees and from contractors CCEC reasonably believes will come in contact
with confidential material.

11. NOTICES: All notices hereunder shall be in writing and addressed to the
party at the address herein set forth and shall be given by personal delivery,
by certified mail, express mail or by national overnight courier services.
Notices will be deemed given upon the earlier of actual receipt or three (3)
business days after being mailed or delivered to such courier service. Any
notices to be given hereunder will be effective if executed by and sent by the
attorneys for the parties giving such notice, and in connection therewith the
parties and their respective counsel agree that in giving such notice such
counsel may communicate directly in writing with such parties to the extent
necessary to give such notice.

12. SEPARABILITY: If one or more of the provisions of this Agreement shall be
held invalid, illegal, or unenforceable in any respect, such provision, to the
extent invalid, illegal, or unenforceable, and provided that such provision is
not essential to the transaction provided for by this Agreement, shall not
affect any other provision hereof, and the Agreement shall be construed as if
such provision had never been contained herein.

13. ARBITRATION: Any controversy or claim arising out of or relating to the
Client Service Agreement, or the breach thereof, shall be settled by arbitration
in accordance with the commercial arbitration rules of the American Arbitration
Association, and judgement upon the award rendered by the arbitrators may be
entered in any court having jurisdiction thereof.

14. MISCELLANEOUS:
         (A) GOVERNING LAW: This Agreement shall be governed by and interpreted
under the laws of the State of Florida where CCEC has been organized and this
Agreement has been accepted by CCEC. Venue for all litigation shall be Seminole
County, Florida.
         (B) CURRENCY: In all instances, references to dollars shall be deemed
to be United States Dollars.

                                       5
<PAGE>

         (C) MULTIPLE/FAXED COUNTERPARTS: This Agreement may be executed in
multiple counterparts, and by fax transmission, each of which shall be deemed an
original.

                                       6
<PAGE>

Executed as a sealed instrument as of the last day and year shown hereunder.

CONFIRMED AND AGREED ON THE 7TH DAY OF JUNE 2000.

CONTINENTAL CAPITAL & EQUITY CORPORATION

By:       /s/ John R. Manion                  /s/ Dodi B. Handy
      -----------------------------------     ----------------------------------
      CCEC Representative                     CCEC Officer

          /s/ John R. Manion                  /s/ Dodi B. Handy
      -----------------------------------     ----------------------------------
      Print Name                              Print Name

          /s/ Henry Harrison                  /s/ Henry Harrison
      -----------------------------------     ----------------------------------
      Witness                                 Witness

          /s/ Henry Harrison                  /s/ Henry Harrison
      -----------------------------------     ----------------------------------
      Print Name                              Print Name

CONFIRMED AND AGREED ON THE 7TH DAY OF JUNE 2000.

NEW VISUAL ENTERTAINMENT, INC.

By:       /s/ Ray Willenberg, Jr.                 /s/ John Howell
      -----------------------------------     ----------------------------------
      Duly Authorized                         Witness

          /s/ Ray Willenberg, Jr.                 /s/ John Howell
      -----------------------------------     ----------------------------------

                                       7

<PAGE>

                      Exhibit A to Client Service Agreement

                                    EXHIBIT A
                      FORM OF REGISTRATION RIGHTS AGREEMENT
                              FOR RESTRICTED SHARES

                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT ("Agreement"), dated as of June __, 2000,
among NEW VISUAL ENTERTAINMENT, INC., a Utah corporation (the "Company"), and
CONTINENTAL CAPITAL & EQUITY CORPORATION (the "Holder").

                                    RECITALS:

         1. The Holder is the holder of 200,000 unregistered shares (the
"Restricted Shares") of the Company's common stock, par value $0.001 per share
(the "Common Stock").

         2. For good and valuable consideration, the receipt of which is hereby
acknowledged, the Company is willing to grant the registration rights set forth
in this Agreement.

         NOW, THEREFORE, the parties hereby agree as follows:

         SECTION 1. DEFINITIONS. As used in this Agreement, the following terms
shall have the following meanings:

         AFFILIATE: the meaning set forth in Rule 12b-2 under the Exchange Act.

         EFFECTIVENESS PERIOD: as defined in Section 5.1(b).

         EXCHANGE ACT: the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the SEC promulgated thereunder.

         INCIDENTAL REGISTRATION: as defined in Section 3.1.

         PIGGY-BACK REQUEST: as defined in Section 3.1.

         PROSPECTUS: the prospectus included in any Registration Statement
(including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective Registration
Statement in reliance upon Rule 430A under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by such
Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all materials incorporated
by reference or deemed to be incorporated by reference in such Prospectus.

<PAGE>

         REGISTRABLE SECURITIES: the Restricted Shares and any other securities
issued or issuable with respect to the Restricted Shares by way of a stock
dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization or otherwise,
PROVIDED THAT any particular shares of such Registrable Securities shall cease
to be Registrable Securities when (i) a Registration Statement with respect to
the sale of such securities shall have become effective under the Securities Act
and such securities shall have been disposed of in accordance with such
Registration Statement, (ii) such shares shall have become eligible to be sold
to the public by the Holder pursuant to Rule 144 under the Securities Act, or
(iii) subsequent disposition of such shares shall not require registration or
qualification of them under the Securities Act or of any similar state law then
in force.

         REGISTRATION: a registration of securities (including Registrable
Securities) under the Securities Act.

         REGISTRATION EXPENSES: any and all expenses incident to performance of
or compliance with this Agreement by the Company and its subsidiaries,
including, without limitation (i) all SEC, stock exchange, NASDAQ and other
registration, listing and filing fees (other than fees and expenses incurred in
connection with compliance with state securities or blue sky laws); (ii) all
fees and expenses incurred in connection with compliance with the rules for
trading securities on the NASDAQ or on any stock exchange on which the Common
Stock is traded (including reasonable fees and disbursements of counsel to the
underwriters in connection with such compliance and the preparation of a Blue
Sky Memorandum and legal investment survey), (iii) all expenses of printing,
distributing, mailing and delivering, any Registration Statement, any
Prospectus, any underwriting agreements, transmittal letters, securities sales
agreements, securities certificates and other documents relating to the
performance of or compliance with this Agreement, (iv) the fees and
disbursements of counsel for the Company and of the independent public
accountants of the Company, including the expenses of any "cold comfort" letters
required by or incident to such performance and compliance, (v) the fees and
expenses of any trustee, transfer agent, registrar, escrow agent or custodian,
(vi) the expenses customarily borne by the issuer incurred in connection with
making road show presentations, if any, to facilitate the distribution and sale
of Registrable Securities, and (vii) all internal expenses of the Company
(including all salaries and expenses of officers and employees performing legal
or accounting duties).

         REGISTRATION STATEMENT: any registration statement of the Company that
covers any Registrable Securities filed or to be filed pursuant to this
Agreement in connection with a Registration of Registrable Securities pursuant
to Section 3, including the Prospectus, amendments and supplements to such
Registration Statement, including post-effective amendments, all exhibits, and
all material incorporated by reference or deemed to be incorporated by reference
in such registration statement.

         RULE 144: Rule 144 (or any successor provision) under the Securities
Act.

         SEC: the Securities and Exchange Commission.

                                       2
<PAGE>

         SECURITIES ACT: the Securities Act of 1933, as amended, and the rules
and regulations of the SEC promulgated thereunder.

         UNDERWRITTEN REGISTRATION OR UNDERWRITTEN OFFERING: a Registration in
which securities of the Company (including Registrable Securities) are sold to
an underwriter for reoffering to the public.

         SECTION 2. [RESERVED]

         SECTION 3. INCIDENTAL REGISTRATION RIGHTS.

         3.1 REQUESTS FOR INCIDENTAL REGISTRATION. If the Company proposes to
register any of its equity securities (other than pursuant to a Registration on
Form S-4 or S-8 or any successor form) and the Registration form to be used may
be used for Registration of the Registrable Securities, it will give prompt
written notice to the Holder of its intention to effect such Registration (the
"Incidental Registration"). Within ten business days of receiving such written
notice of an Incidental Registration, the Holder may make a written request (the
"Piggy-Back Request") that the Company include in the proposed Incidental
Registration all, or a portion, of the Registrable Securities owned by the
Holder (which Piggy-Back Request shall set forth the Registrable Securities
intended to be disposed of by the Holder and the intended method of disposition
thereof).

         3.2 OBLIGATION TO EFFECT INCIDENTAL REGISTRATION. (a) The Company will
use its best efforts to include in any Incidental Registration all Registrable
Securities which the Company has been requested to register pursuant to any
timely Piggy-Back Request to the extent required to permit the disposition (in
accordance with the intended methods thereof as aforesaid) of the Registrable
Securities so to be registered.

         (b) Notwithstanding the preceding Sections 3.1 and 3.2(a):

                  (i) the Company shall not be obligated pursuant to this
         Section 3 to effect a Registration of Registrable Securities requested
         pursuant to a timely Piggy-Back Request if the Company discontinues the
         related Incidental Registration at any time prior to the effective date
         of any Registration Statement filed in connection therewith; and

                  (ii) if a Registration pursuant to this Section 3 involves an
         underwritten offering, and the managing underwriter (or, in the case of
         an offering that is not underwritten, an investment banker) shall
         advise the Company that, in its opinion, the number of securities
         requested and otherwise proposed to be included in such Registration
         exceeds the number which can be sold in such offering without adversely
         affecting the marketability of the offering, the Company will include
         in such Registration to the extent of the number which the Company is
         so advised can be sold in such offering, FIRST, the securities the
         Company proposes to sell for its own account in such Registration and
         SECOND, the Registrable Securities of the Holder requesting to be

                                       3
<PAGE>

         included in such Registration and all other securities requested to be
         included in such Registration on a PRO RATA basis.

         SECTION 4. UNDERWRITERS.

         4.1 UNDERWRITTEN OFFERS. The provisions of this Section 4 do not
establish additional registration rights but instead set forth procedures
applicable, in addition to those set forth in Sections 3 and 5, to any
Registration which is an underwritten offering.

         4.2 SELECTION OF UNDERWRITERS. If a Registration of Registrable
Securities is being effected pursuant to Section 3 and such securities are to be
distributed by or through one or more underwriters, the Company shall have the
right to select one or more underwriters to administer the offering.

         4.3 PARTICIPATION IN UNDERWRITTEN REGISTRATIONS. The Holder may not
participate in any underwritten Registrations hereunder unless the Holder agrees
to sell the Holder's Registrable Securities on the basis provided in any
underwriting arrangements approved by the Company.

         4.4 HOLDBACK AGREEMENT OF THE HOLDER. If and whenever the Company
proposes to register any of its equity securities under the Securities Act for
its own account (other than on Form S-4 or S-8 or any successor form) or is
required to use reasonable efforts to effect the Registration of any Registrable
Securities under the Securities Act pursuant to Section 3, the Holder agrees not
to effect any public sale or distribution, including any sale pursuant to Rule
144, of any Registrable Securities, of any other equity securities of the
Company, or any securities convertible into or exchangeable for any equity
securities of the Company, within 15 days prior to and 90 days (unless advised
in writing by the managing underwriter that a longer period, not to exceed 180
days, is required) after the effective date of the Registration Statement
relating to such Registration, except as part of such Registration or with the
prior written consent of the Company and the managing underwriter, if any.

         SECTION 5. REGISTRATION PROCEDURES.

         5.1 OBLIGATIONS OF THE COMPANY. If and whenever the Company is required
pursuant to Section 3 to effect a Registration of Registrable Securities, the
Company shall, subject to the provisions of Section 3:

         (a) prepare and file with the SEC a Registration Statement covering
such Registrable Securities and use commercially reasonable efforts to cause
such Registration Statement to become effective and remain effective as provided
herein;

         (b) use commercially reasonable efforts to prepare and file with the
SEC such amendments and supplements to such Registration Statement as may be
necessary to keep such Registration Statement and Prospectus used in connection
therewith effective at least until the earlier of (i) 90 days after the
effective date of such Registration Statement, and (ii) the completion of the
distribution by the Holder of all of the Registrable Securities covered by such
Registration Statement (the "Effectiveness Period");

                                       4
<PAGE>

         (c) use commercially reasonable efforts to register or qualify the
Registrable Securities covered by such Registration Statement under the
securities or blue sky laws of such states within the United States as the
Company determines, PROVIDED that the Company shall not for any such purpose be
required to qualify generally to do business as a foreign corporation in any
state wherein it is not so qualified, subject itself to taxation in any state
wherein it is not so subject, or take any action which would subject it to
general service of process in any state wherein it is not so subject; and

         (d) (i) notify the Holder of Registrable Securities covered by such
Registration Statement if, to its knowledge, such Registration Statement, at the
time it or any amendment thereto became effective, contained an untrue statement
of a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, and, as
promptly as practicable, prepare and file with the SEC a post-effective
amendment to such Registration Statement and use commercially reasonable efforts
to cause such post-effective amendment to become effective such that such
Registration Statement, as so amended, shall not contain an untrue statement of
a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading, and (ii) notify the
Holder of Registrable Securities covered by such Registration Statement, at any
time when a Prospectus relating thereto is required to be delivered under the
Securities Act, if, to its knowledge, the Prospectus included in such
Registration Statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, and, as promptly as practicable, prepare
and furnish to such Holder a reasonable number of copies of a supplement to or
an amendment of such Prospectus as may be necessary so that, as thereafter
delivered to the purchasers of such securities, such Prospectus shall not
include an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.

         The Holder agrees that upon receipt of any notice from the Company
pursuant to Section 5.1(d), the Holder will promptly discontinue the Holder's
disposition of Registrable Securities pursuant to the Registration Statement
covering such Registrable Securities until the Holder shall have received notice
from the Company that such Registration Statement has been amended and/or copies
of the supplemented or amended Prospectus contemplated by Section 5.1(d) have
been furnished. If so directed by the Company, the Holder of Registrable
Securities will deliver to the Company all copies, other than permanent file
copies, in the Holder's possession of the Prospectus covering such Registrable
Securities at the time of receipt of such notice.

         5.2 SELLER INFORMATION. The Company may require the Holder of any
Registrable Securities as to which any Registration is being effected to furnish
to the Company such information regarding such Holder and the distribution of
such Registrable Securities as the Company may from time to time reasonably
request and as shall be required by law in connection therewith. The Holder
agrees to furnish promptly to the Company all information required to be

                                       5
<PAGE>

disclosed in order to make the information previously furnished to the Company
by such Holder not materially false or misleading.

         SECTION 6. REGISTRATION EXPENSES.

         The Company shall pay all Registration Expenses arising from or
incidental to the performance of, or compliance with, this Agreement, PROVIDED
that the Holder requesting such Registration shall bear any transfer taxes
applicable to its Registrable Securities registered thereunder, customary (both
as to type and amount) commissions, discounts or other compensation payable to
the underwriters (including fees and expenses of underwriters' counsel), selling
brokers, managers or other similar persons engaged in the distribution of any of
the Registrable Securities, and the fees and expenses of the Holder's own
counsel.

         SECTION 7. INDEMNIFICATION.

         7.1 INDEMNIFICATION BY THE HOLDER OF REGISTRABLE SECURITIES. The
Company may require, as a condition to including any Registrable Securities in
any Registration Statement filed pursuant to this Agreement that the Company
shall have received an undertaking satisfactory to it from the Holder to
indemnify, defend and hold harmless, the Company, its directors and officers and
each person, if any, who controls (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) the Company from and against
any and all losses, claims, damages and liabilities, joint or several, to which
any of the foregoing may become subject, under the Securities Act or otherwise,
based upon or arising out of any untrue statement or alleged untrue statement of
a material fact in a Registration Statement, any preliminary prospectus, final
Prospectus or summary Prospectus, or any amendment or supplement thereto, or
omission or alleged omission to state therein any material fact required to be
stated therein or necessary to make the statements therein not misleading, if
such statement or alleged statement or omission or alleged omission was made in
reliance upon and in conformity with written information furnished to the
Company by such Holder expressly for use in the preparation of such Registration
Statement, preliminary prospectus, final Prospectus, summary Prospectus,
amendment or supplement. Such indemnity shall remain in full force and effect,
regardless of any investigation made by or on behalf of the Company or any such
director, officer or controlling person and shall survive the transfer of such
Registrable Securities by such Holder.

         7.2 INDEMNIFICATION PAYMENTS. Any indemnification required to be made
by an indemnifying party pursuant to this Section 7 shall be made by periodic
payments to the indemnified party during the course of the action or proceeding,
as and when bills are received by such indemnifying party with respect to an
indemnifiable loss, claim, damage, liability or expense incurred by such
indemnified party.

         7.3 OTHER REMEDIES. If for any reason the foregoing indemnity is
unavailable, or is insufficient to hold harmless an indemnified party, other
than by reason of the exceptions provided therein, then the indemnifying party
shall contribute to the amount paid or payable by the indemnified party as a
result of such losses, claims, damages, liabilities, actions, proceedings or
expenses in such proportion as is appropriate to reflect the relative benefits

                                       6
<PAGE>

to and faults of the indemnifying party on the one hand and the indemnified
party on the other in connection with the offering of Registrable Securities
(taking into account the portion of the proceeds of the offering realized by
each such party) and the statements or omissions or alleged statements or
omissions which resulted in such loss, claim, damage, liability, action,
proceeding or expense, as well as any other relevant equitable considerations.
The relative fault of the indemnifying party and of the indemnified party shall
be determined by reference to, among other things, whether the untrue statement
of a material fact or the omission to state a material fact relates to
information supplied by the indemnifying party or by the indemnified party and
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such statements or omissions. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. No party shall be liable for
contribution under this Section 7.3 except to the extent and under such
circumstances as such party would have been liable to indemnify under this
Section 7 if such indemnification were enforceable under applicable law.

         SECTION 8. MISCELLANEOUS.

         8.1 ENTIRE AGREEMENT. This Agreement is intended by the parties as a
final expression of their agreement, and is intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein. This Agreement supersedes all
prior agreements and understandings between the parties with respect to such
subject matter.

         8.2 NOMINEES FOR BENEFICIAL OWNERS. In the event that any Registrable
Securities are held by a nominee for the beneficial owner thereof, the
beneficial owner thereof may, at its election and unless notice is otherwise
given to the Company by the record owner, be treated as the Holder of such
Registrable Securities for purposes of any request or other action by the Holder
pursuant to this Agreement. If the beneficial owner of any Registrable
Securities so elects, the Company may require assurances reasonably satisfactory
to it of such owner's beneficial ownership of such Registrable Securities.

         8.3 TERM. This Agreement shall be effective as of the date hereof and
shall continue in effect thereafter until the earlier of (a) its termination by
the consent of the parties hereto or their respective successors in interest and
(b) the date on which no Registrable Securities remain outstanding, and (c) the
date on which the Holder may resell all of the Registrable Securities under Rule
144.

         8.4 NOTICES. All notices, requests, demands, waivers and other
communications required or permitted to be given under this Agreement shall be
in writing and shall be deemed to have been duly given if (a) delivered
personally, (b) mailed by first-class, registered or certified mail, return
receipt requested, postage prepaid, or (c) sent by next-day or overnight mail or
delivery or (d) sent by telecopy or telegram:

                           (i)      If to the Holder, at:

                                       7
<PAGE>

                                    Continental Capital & Equity Corporation
                                    195 Wekiva Springs Road, Suite 200
                                    Longwood, Florida, 32779

                           (ii)     If to the Company, at:

                                    New Visual Entertainment, Inc.
                                    5920 Friars Road, Suite 104
                                    San Diego, California 92108

or, in each case, at such other address as may be specified in writing to the
other parties hereto.

         All such notices, requests, demands, waivers and other communications
shall be deemed to have been received (w) if by personal delivery on the day
after such delivery, (x) if by certified or registered mail, on the seventh
business day after the mailing thereof, (y) if by next-day or overnight mail or
delivery, on the day delivered, (z) if by telecopy or telegram, on the next day
following the day on which such telecopy or telegram was sent, provided that a
copy is also sent by certified or registered mail.

         8.5 AMENDMENTS; WAIVERS; ETC. No amendment, modification or discharge
of this Agreement, and no waiver hereunder, shall be valid or binding unless set
forth in writing and duly executed by the party against whom enforcement of the
amendment, modification, discharge or waiver is sought. Any such waiver shall
constitute a waiver only with respect to the specific matter described in such
writing and shall in no way impair the rights of the party granting such waiver
in any other respect or at any other time. Neither the waiver by any of the
parties hereto of a breach of or a default under any of the provisions of this
Agreement, nor the failure by any of the parties, on one or more occasions, to
enforce any of the provisions of this Agreement or to exercise any right or
privilege hereunder, shall be construed as a waiver of any other breach or
default of a similar nature, or as a waiver of any of such provisions, rights or
privileges hereunder. The rights and remedies herein provided are cumulative and
are not exclusive of any rights or remedies that any party may otherwise have at
law or in equity.

         8.6 SEVERABILITY. If any provision of this Agreement, including any
phrase, sentence, clause, Section or subsection is inoperative or unenforceable
for any reason, such circumstances shall not have the effect of rendering the
provision in question inoperative or unenforceable in any other case or
circumstance, or of rendering any other provision or provisions herein contained
invalid, inoperative, or unenforceable to any extent whatsoever.

         8.7 GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Florida.

         8.8 SUCCESSORS, ASSIGNS AND TRANSFEREES. This Agreement shall not be
assignable or otherwise transferable by the Holder without the prior written
consent of the Company. This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective successors and permitted
assigns.

                                       8
<PAGE>

         8.9 NO THIRD PARTY BENEFICIARIES. Except as provided in Section 8 with
respect to indemnification of certain third parties hereunder, nothing in this
Agreement shall confer any rights upon any person or entity other than the
parties hereto and their respective heirs, successors and permitted assigns.

         8.10 HEADINGS. The headings contained in this Agreement are for
purposes of convenience only and shall not affect the meaning or interpretation
of this Agreement.

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

         8.12 CONFIDENTIALITY. The Holder shall treat as confidential and shall
not use confidential information of the Company acquired from the Company
pursuant to this Agreement except in accordance with the terms and provisions of
this Agreement and the Holder's rights and obligations hereunder, and will not
disclose the same or any part thereof to any third party without the prior
written approval of the Company; provided, however, that nothing contained
herein shall in any way restrict or impair the Holder's right to use, disclose,
or otherwise deal with any information of the Company which:

                  (i) at the time of the disclosure is generally available to
         the public or thereafter becomes generally available to the public by
         publication or otherwise through no act of the Holder;

                  (ii) was in the Holder's possession prior to the time of
         disclosure hereunder and was not acquired directly or indirectly from
         the Company;

                  (iii) is independently made available to the Holder as a
         matter of right by a third party, or

                  (iv) was developed independent of the confidential information
         obtained from the Company.

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

                         NEW VISUAL ENTERTAINMENT, INC.

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

                         CONTINENTAL CAPITAL & EQUITY CORPORATION

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

                                       9

<PAGE>

                      Exhibit B to Client Service Agreement

                                    EXHIBIT B
                           FORM OF WARRANT CERTIFICATE

         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 ENTERTAINMENT, INC.

No. WR- _____                                                   200,000 Warrants
Date: June __, 2000

         THIS CERTIFIES THAT, for value received, CONTINENTAL CAPITAL & EQUITY
CORPORATION., or its registered assigns, is entitled to purchase from NEW VISUAL
ENTERTAINMENT, INC., a Utah corporation (the "Company"), at any time or from
time to time during the period specified in Paragraph 2, TWO HUNDRED THOUSAND
(200,000) fully paid and nonassessable shares of the Company's Common Stock, par
value $0.001 per share (the "Common Stock"), at the various exercises prices as
set forth in this Agreement. 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.
The Warrant Shares are divided into four equal tranches of fifty thousand
(50,000) shares with the following exercise prices for each tranche (the
"Exercise Prices"): Tranche One - $7.00 per share; Tranche Two - $8.50 per
share; Tranche Three - $10.00 per share; and Tranche Four - $11.50 per share.
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 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

<PAGE>

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,
not to exceed three business days 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 (b) ending at 5:00 p.m., Eastern time, on the third anniversary
of the date of this Warrant (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.

                  (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

                                       2
<PAGE>

         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:

                           (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;

                                       3
<PAGE>

                           (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.

                           (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

                                       4
<PAGE>

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.

                  (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

                                       5
<PAGE>

         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: President, 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 FLORIDA WITHOUT
REGARD TO THE BODY OF LAW CONTROLLING CONFLICTS OF LAW.

         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,

                                       6
<PAGE>

         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 ENTERTAINMENT, INC.

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

ATTEST:

-----------------------------
Secretary

                                       7
<PAGE>

                              [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.

                                       8
<PAGE>

                         [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
designated as being in Tranche _____ and 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:
                                          --------------------------------------

                                       9
<PAGE>

                                     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.

                                       10

<PAGE>

                      Exhibit C to Client Service Agreement

                                    EXHIBIT C
                      FORM OF REGISTRATION RIGHTS AGREEMENT
                               FOR WARRANT SHARES

                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT ("Agreement"), dated as of June __, 2000,
among NEW VISUAL ENTERTAINMENT, INC., a Utah corporation (the "Company"), and
CONTINENTAL CAPITAL & EQUITY CORPORATION (the "Holder").

                                    RECITALS:

         1. The Holder is the holder of Warrants (collectively, the "Warrants")
to purchase an aggregate of 200,000 shares (the "Warrant Shares") of the
Company's common stock, par value $0.001 per share (the "Common Stock").

         2. For good and valuable consideration, the receipt of which is hereby
acknowledged, the Company is willing to grant the registration rights set forth
in this Agreement.

         NOW, THEREFORE, the parties hereby agree as follows:

         SECTION 1. DEFINITIONS. As used in this Agreement, the following terms
shall have the following meanings:

         AFFILIATE: the meaning set forth in Rule 12b-2 under the Exchange Act.

         EFFECTIVENESS PERIOD: as defined in Section 5.1(b).

         EXCHANGE ACT: the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the SEC promulgated thereunder.

         FORM S-3: a Registration Statement effected on Form S-3 pursuant to the
Securities Act.

         INCIDENTAL REGISTRATION: as defined in Section 3.1.

         PIGGY-BACK REQUEST: as defined in Section 3.1.

         PROSPECTUS: the prospectus included in any Registration Statement
(including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective Registration
Statement in reliance upon Rule 430A under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by such
Registration Statement, and all other amendments and supplements to the

<PAGE>

Prospectus, including post-effective amendments, and all materials incorporated
by reference or deemed to be incorporated by reference in such Prospectus.

         REGISTRABLE SECURITIES: the Warrant Shares and any other securities
issued or issuable with respect to the Warrant Shares by way of a stock dividend
or stock split or in connection with a combination of shares, recapitalization,
merger, consolidation or other reorganization or otherwise, PROVIDED THAT any
particular shares of such Registrable Securities shall cease to be Registrable
Securities when (i) a Registration Statement with respect to the sale of such
securities shall have become effective under the Securities Act and such
securities shall have been disposed of in accordance with such Registration
Statement, (ii) such shares shall have become eligible to be sold to the public
by the Holder pursuant to Rule 144 under the Securities Act, (iii) subsequent
disposition of such shares shall not require registration or qualification of
them under the Securities Act or of any similar state law then in force; (iv)
the Warrants shall have not been exercised as of the expiration date specified
in the respective Warrant, or (v) such shares shall have ceased to be
outstanding.

         REGISTRATION: a registration of securities (including Registrable
Securities) under the Securities Act.

         REGISTRATION EXPENSES: any and all expenses incident to performance of
or compliance with this Agreement by the Company and its subsidiaries,
including, without limitation (i) all SEC, stock exchange, NASDAQ and other
registration, listing and filing fees (other than fees and expenses incurred in
connection with compliance with state securities or blue sky laws); (ii) all
fees and expenses incurred in connection with compliance with the rules for
trading securities on the NASDAQ or on any stock exchange on which the Common
Stock is traded (including reasonable fees and disbursements of counsel to the
underwriters in connection with such compliance and the preparation of a Blue
Sky Memorandum and legal investment survey), (iii) all expenses of printing,
distributing, mailing and delivering, any Registration Statement, any
Prospectus, any underwriting agreements, transmittal letters, securities sales
agreements, securities certificates and other documents relating to the
performance of or compliance with this Agreement, (iv) the fees and
disbursements of counsel for the Company and of the independent public
accountants of the Company, including the expenses of any "cold comfort" letters
required by or incident to such performance and compliance, (v) the fees and
expenses of any trustee, transfer agent, registrar, escrow agent or custodian,
(vi) the expenses customarily borne by the issuer incurred in connection with
making road show presentations, if any, to facilitate the distribution and sale
of Registrable Securities, and (vii) all internal expenses of the Company
(including all salaries and expenses of officers and employees performing legal
or accounting duties).

         REGISTRATION REQUEST:  shall have the meaning set forth in Section 2.

         REGISTRATION STATEMENT: any registration statement of the Company that
covers any Registrable Securities filed or to be filed pursuant to this
Agreement in connection with a Registration of Registrable Securities pursuant
to Section 3, including the Prospectus, amendments and supplements to such
Registration Statement, including post-effective amendments, all exhibits, and

                                       2
<PAGE>

all material incorporated by reference or deemed to be incorporated by reference
in such registration statement.

         RULE 144: Rule 144 (or any successor provision) under the Securities
Act.

         S-3 REGISTRATION STATEMENT: shall have the meaning set forth in Section
2.

         SEC:  the Securities and Exchange Commission.

         SECURITIES ACT: the Securities Act of 1933, as amended, and the rules
and regulations of the SEC promulgated thereunder.

         UNDERWRITTEN REGISTRATION OR UNDERWRITTEN OFFERING: a Registration in
which securities of the Company (including Registrable Securities) are sold to
an underwriter for reoffering to the public.

         SECTION 2. REGISTRATION UPON DEMAND. If at any time during the term of
this Agreement the Company is eligible to effect the Registration of its Common
Stock on Form S-3 for a secondary offering, the Holder may deliver one, and only
one, written request that all, or a portion, of the Registrable Securities be
registered pursuant to the terms of this Agreement (a "Registration Request").
Within 31 days after a Registration Request, the Company shall prepare and file
a Registration Statement to effect the Registration of all Registrable
Securities which the Company has been requested to register pursuant to the
Registration Request to the extent requisite to permit the public disposition of
such Registrable Securities. The Company shall use its best efforts to cause the
Registration Statement that is the subject of this Section 2 (the "S-3
Registration Statement") to be declared effective by the SEC upon the earlier to
occur of (a) 120 days after the date of the Registration Request, (ii) 90 days
following the filing of the S-3 Registration Statement, or (iii) ten business
days after receipt of a "no review" or similar letter from the SEC. As a result,
should the S-3 Registration Statement not relate to the entire number of
Registrable Securities requested by the Holder in the Registration Request, the
Company shall be required to promptly file a separate Registration Statement
(utilizing Rule 462 promulgated under the Exchange Act, where applicable)
relating to such Registrable Securities that then remain unregistered. The
provisions of this Agreement shall relate to such separate Registration
Statement as if it were an amendment to the S-3 Registration Statement.

         SECTION 3. INCIDENTAL REGISTRATION RIGHTS.

         3.1 REQUESTS FOR INCIDENTAL REGISTRATION. If the Company proposes to
register any of its equity securities (other than pursuant to a Registration on
Form S-4 or S-8 or any successor form) and the Registration form to be used may
be used for Registration of the Registrable Securities, it will give prompt
written notice to the Holder of its intention to effect such Registration (the
"Incidental Registration"). Within ten business days of receiving such written
notice of an Incidental Registration, the Holder may make a written request (the
"Piggy-Back Request") that the Company include in the proposed Incidental
Registration all, or a portion, of the Registrable Securities owned by the
Holder (which Piggy-Back Request shall set forth the Registrable Securities

                                       3
<PAGE>

intended to be disposed of by the Holder and the intended method of disposition
thereof).

         3.2 OBLIGATION TO EFFECT INCIDENTAL REGISTRATION. (a) The Company will
use its best efforts to include in any Incidental Registration all Registrable
Securities which the Company has been requested to register pursuant to any
timely Piggy-Back Request to the extent required to permit the disposition (in
accordance with the intended methods thereof as aforesaid) of the Registrable
Securities so to be registered.

         (b)      Notwithstanding the preceding Sections 3.1 and 3.2(a):

                  (i) the Company shall not be obligated pursuant to this
         Section 3 to effect a Registration of Registrable Securities requested
         pursuant to a timely Piggy-Back Request if the Company discontinues the
         related Incidental Registration at any time prior to the effective date
         of any Registration Statement filed in connection therewith; and

                  (ii) if a Registration pursuant to this Section 3 involves an
         underwritten offering, and the managing underwriter (or, in the case of
         an offering that is not underwritten, an investment banker) shall
         advise the Company that, in its opinion, the number of securities
         requested and otherwise proposed to be included in such Registration
         exceeds the number which can be sold in such offering without adversely
         affecting the marketability of the offering, the Company will include
         in such Registration to the extent of the number which the Company is
         so advised can be sold in such offering, FIRST, the securities the
         Company proposes to sell for its own account in such Registration and
         SECOND, the Registrable Securities of the Holder requesting to be
         included in such Registration and all other securities requested to be
         included in such Registration on a PRO RATA basis.

         SECTION 4. UNDERWRITERS.

         4.1 UNDERWRITTEN OFFERS. The provisions of this Section 4 do not
establish additional registration rights but instead set forth procedures
applicable, in addition to those set forth in Sections 3 and 5, to any
Registration which is an underwritten offering.

         4.2 SELECTION OF UNDERWRITERS. If a Registration of Registrable
Securities is being effected pursuant to Section 3 and such securities are to be
distributed by or through one or more underwriters, the Company shall have the
right to select one or more underwriters to administer the offering.

         4.3 PARTICIPATION IN UNDERWRITTEN REGISTRATIONS. The Holder may not
participate in any underwritten Registrations hereunder unless the Holder agrees
to sell the Holder's Registrable Securities on the basis provided in any
underwriting arrangements approved by the Company.

         4.4 HOLDBACK AGREEMENT OF THE HOLDER. If and whenever the Company
proposes to register any of its equity securities under the Securities Act for
its own account (other than on Form S-4 or S-8 or any successor form) or is
required to use reasonable efforts to effect the Registration of any Registrable

                                       4
<PAGE>

Securities under the Securities Act pursuant to Section 3, the Holder agrees not
to effect any public sale or distribution, including any sale pursuant to Rule
144, of any Registrable Securities, of any other equity securities of the
Company, or any securities convertible into or exchangeable for any equity
securities of the Company, within 15 days prior to and 90 days (unless advised
in writing by the managing underwriter that a longer period, not to exceed 180
days, is required) after the effective date of the Registration Statement
relating to such Registration, except as part of such Registration or with the
prior written consent of the Company and the managing underwriter, if any.

         SECTION 5. REGISTRATION PROCEDURES.

         5.1 OBLIGATIONS OF THE COMPANY. If and whenever the Company is required
pursuant to Section 2 or Section 3 to effect a Registration of Registrable
Securities, the Company shall, subject to the provisions of Section 2 or Section
3:

         (a) prepare and file with the SEC a Registration Statement covering
such Registrable Securities and use commercially reasonable efforts to cause
such Registration Statement to become effective and remain effective as provided
herein;

         (b) use commercially reasonable efforts to prepare and file with the
SEC such amendments and supplements to such Registration Statement as may be
necessary to keep such Registration Statement and Prospectus used in connection
therewith effective at least until the earlier of (i) 90 days after the
effective date of such Registration Statement, and (ii) the completion of the
distribution by the Holder of all of the Registrable Securities covered by such
Registration Statement (the "Effectiveness Period");

         (c) use commercially reasonable efforts to register or qualify the
Registrable Securities covered by such Registration Statement under the
securities or blue sky laws of such states within the United States as the
Company determines, PROVIDED that the Company shall not for any such purpose be
required to qualify generally to do business as a foreign corporation in any
state wherein it is not so qualified, subject itself to taxation in any state
wherein it is not so subject, or take any action which would subject it to
general service of process in any state wherein it is not so subject; and

         (d) (i) notify the Holder of Registrable Securities covered by such
Registration Statement if, to its knowledge, such Registration Statement, at the
time it or any amendment thereto became effective, contained an untrue statement
of a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, and, as
promptly as practicable, prepare and file with the SEC a post-effective
amendment to such Registration Statement and use commercially reasonable efforts
to cause such post-effective amendment to become effective such that such
Registration Statement, as so amended, shall not contain an untrue statement of
a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading, and (ii) notify the
Holder of Registrable Securities covered by such Registration Statement, at any
time when a Prospectus relating thereto is required to be delivered under the

                                       5
<PAGE>

Securities Act, if, to its knowledge, the Prospectus included in such
Registration Statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, and, as promptly as practicable, prepare
and furnish to such Holder a reasonable number of copies of a supplement to or
an amendment of such Prospectus as may be necessary so that, as thereafter
delivered to the purchasers of such securities, such Prospectus shall not
include an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.

         The Holder agrees that upon receipt of any notice from the Company
pursuant to Section 5.1(d), the Holder will promptly discontinue the Holder's
disposition of Registrable Securities pursuant to the Registration Statement
covering such Registrable Securities until the Holder shall have received notice
from the Company that such Registration Statement has been amended and/or copies
of the supplemented or amended Prospectus contemplated by Section 5.1(d) have
been furnished. If so directed by the Company, the Holder of Registrable
Securities will deliver to the Company all copies, other than permanent file
copies, in the Holder's possession of the Prospectus covering such Registrable
Securities at the time of receipt of such notice.

         5.2 SELLER INFORMATION. The Company may require the Holder of any
Registrable Securities as to which any Registration is being effected to furnish
to the Company such information regarding such Holder and the distribution of
such Registrable Securities as the Company may from time to time reasonably
request and as shall be required by law in connection therewith. The Holder
agrees to furnish promptly to the Company all information required to be
disclosed in order to make the information previously furnished to the Company
by such Holder not materially false or misleading.

         SECTION 6. REGISTRATION EXPENSES.

         The Company shall pay all Registration Expenses arising from or
incidental to the performance of, or compliance with, this Agreement, PROVIDED
that the Holder requesting such Registration shall bear any transfer taxes
applicable to its Registrable Securities registered thereunder, customary (both
as to type and amount) commissions, discounts or other compensation payable to
the underwriters (including fees and expenses of underwriters' counsel), selling
brokers, managers or other similar persons engaged in the distribution of any of
the Registrable Securities, and the fees and expenses of the Holder's own
counsel.

         SECTION 7. INDEMNIFICATION.

         7.1 INDEMNIFICATION BY THE HOLDER OF REGISTRABLE SECURITIES. The
Company may require, as a condition to including any Registrable Securities in
any Registration Statement filed pursuant to this Agreement that the Company
shall have received an undertaking satisfactory to it from the Holder to
indemnify, defend and hold harmless, the Company, its directors and officers and
each person, if any, who controls (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) the Company from and against
any and all losses, claims, damages and liabilities, joint or several, to which
any of the foregoing may become subject, under the Securities Act or otherwise,

                                       6
<PAGE>

based upon or arising out of any untrue statement or alleged untrue statement of
a material fact in a Registration Statement, any preliminary prospectus, final
Prospectus or summary Prospectus, or any amendment or supplement thereto, or
omission or alleged omission to state therein any material fact required to be
stated therein or necessary to make the statements therein not misleading, if
such statement or alleged statement or omission or alleged omission was made in
reliance upon and in conformity with written information furnished to the
Company by such Holder expressly for use in the preparation of such Registration
Statement, preliminary prospectus, final Prospectus, summary Prospectus,
amendment or supplement. Such indemnity shall remain in full force and effect,
regardless of any investigation made by or on behalf of the Company or any such
director, officer or controlling person and shall survive the transfer of such
Registrable Securities by such Holder.

         7.2 INDEMNIFICATION PAYMENTS. Any indemnification required to be made
by an indemnifying party pursuant to this Section 7 shall be made by periodic
payments to the indemnified party during the course of the action or proceeding,
as and when bills are received by such indemnifying party with respect to an
indemnifiable loss, claim, damage, liability or expense incurred by such
indemnified party.

         7.3 OTHER REMEDIES. If for any reason the foregoing indemnity is
unavailable, or is insufficient to hold harmless an indemnified party, other
than by reason of the exceptions provided therein, then the indemnifying party
shall contribute to the amount paid or payable by the indemnified party as a
result of such losses, claims, damages, liabilities, actions, proceedings or
expenses in such proportion as is appropriate to reflect the relative benefits
to and faults of the indemnifying party on the one hand and the indemnified
party on the other in connection with the offering of Registrable Securities
(taking into account the portion of the proceeds of the offering realized by
each such party) and the statements or omissions or alleged statements or
omissions which resulted in such loss, claim, damage, liability, action,
proceeding or expense, as well as any other relevant equitable considerations.
The relative fault of the indemnifying party and of the indemnified party shall
be determined by reference to, among other things, whether the untrue statement
of a material fact or the omission to state a material fact relates to
information supplied by the indemnifying party or by the indemnified party and
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such statements or omissions. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. No party shall be liable for
contribution under this Section 7.3 except to the extent and under such
circumstances as such party would have been liable to indemnify under this
Section 7 if such indemnification were enforceable under applicable law.

         SECTION 8. MISCELLANEOUS.

         8.1 ENTIRE AGREEMENT. This Agreement is intended by the parties as a
final expression of their agreement, and is intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in

                                       7
<PAGE>

respect of the subject matter contained herein. This Agreement supersedes all
prior agreements and understandings between the parties with respect to such
subject matter.

         8.2 NOMINEES FOR BENEFICIAL OWNERS. In the event that any Registrable
Securities are held by a nominee for the beneficial owner thereof, the
beneficial owner thereof may, at its election and unless notice is otherwise
given to the Company by the record owner, be treated as the Holder of such
Registrable Securities for purposes of any request or other action by the Holder
pursuant to this Agreement. If the beneficial owner of any Registrable
Securities so elects, the Company may require assurances reasonably satisfactory
to it of such owner's beneficial ownership of such Registrable Securities.

         8.3 TERM. This Agreement shall be effective as of the date hereof and
shall continue in effect thereafter until the earlier of (a) its termination by
the consent of the parties hereto or their respective successors in interest and
(b) the date on which no Registrable Securities remain outstanding, and (c) the
date on which the Holder may resell all of the Registrable Securities under Rule
144.

         8.4 NOTICES. All notices, requests, demands, waivers and other
communications required or permitted to be given under this Agreement shall be
in writing and shall be deemed to have been duly given if (a) delivered
personally, (b) mailed by first-class, registered or certified mail, return
receipt requested, postage prepaid, or (c) sent by next-day or overnight mail or
delivery or (d) sent by telecopy or telegram:

                           (i)      If to the Holder, at:

                                    Continental Capital & Equity Corporation
                                    195 Wekiva Springs Road, Suite 200
                                    Longwood, Florida, 32779

                           (ii)     If to the Company, at:

                                    New Visual Entertainment, Inc.
                                    5920 Friars Road, Suite 104
                                    San Diego, California 92108

or, in each case, at such other address as may be specified in writing to the
other parties hereto.

         All such notices, requests, demands, waivers and other communications
shall be deemed to have been received (w) if by personal delivery on the day
after such delivery, (x) if by certified or registered mail, on the seventh
business day after the mailing thereof, (y) if by next-day or overnight mail or
delivery, on the day delivered, (z) if by telecopy or telegram, on the next day
following the day on which such telecopy or telegram was sent, provided that a
copy is also sent by certified or registered mail.

         8.5 AMENDMENTS; WAIVERS; ETC. No amendment, modification or discharge
of this Agreement, and no waiver hereunder, shall be valid or binding unless set

                                       8
<PAGE>

forth in writing and duly executed by the party against whom enforcement of the
amendment, modification, discharge or waiver is sought. Any such waiver shall
constitute a waiver only with respect to the specific matter described in such
writing and shall in no way impair the rights of the party granting such waiver
in any other respect or at any other time. Neither the waiver by any of the
parties hereto of a breach of or a default under any of the provisions of this
Agreement, nor the failure by any of the parties, on one or more occasions, to
enforce any of the provisions of this Agreement or to exercise any right or
privilege hereunder, shall be construed as a waiver of any other breach or
default of a similar nature, or as a waiver of any of such provisions, rights or
privileges hereunder. The rights and remedies herein provided are cumulative and
are not exclusive of any rights or remedies that any party may otherwise have at
law or in equity.

         8.6 SEVERABILITY. If any provision of this Agreement, including any
phrase, sentence, clause, Section or subsection is inoperative or unenforceable
for any reason, such circumstances shall not have the effect of rendering the
provision in question inoperative or unenforceable in any other case or
circumstance, or of rendering any other provision or provisions herein contained
invalid, inoperative, or unenforceable to any extent whatsoever.

         8.7 GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Florida.

         8.8 SUCCESSORS, ASSIGNS AND TRANSFEREES. This Agreement shall not be
assignable or otherwise transferable by the Holder without the prior written
consent of the Company. This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective successors and permitted
assigns.

         8.9 NO THIRD PARTY BENEFICIARIES. Except as provided in Section 8 with
respect to indemnification of certain third parties hereunder, nothing in this
Agreement shall confer any rights upon any person or entity other than the
parties hereto and their respective heirs, successors and permitted assigns.

         8.10 HEADINGS. The headings contained in this Agreement are for
purposes of convenience only and shall not affect the meaning or interpretation
of this Agreement.

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

         8.12 CONFIDENTIALITY. The Holder shall treat as confidential and shall
not use confidential information of the Company acquired from the Company
pursuant to this Agreement except in accordance with the terms and provisions of
this Agreement and the Holder's rights and obligations hereunder, and will not
disclose the same or any part thereof to any third party without the prior
written approval of the Company; provided, however, that nothing contained
herein shall in any way restrict or impair the Holder's right to use, disclose,
or otherwise deal with any information of the Company which:

                                       9
<PAGE>

                  (i) at the time of the disclosure is generally available to
         the public or thereafter becomes generally available to the public by
         publication or otherwise through no act of the Holder;

                  (ii) was in the Holder's possession prior to the time of
         disclosure hereunder and was not acquired directly or indirectly from
         the Company;

                  (iii) is independently made available to the Holder as a
         matter of right by a third party, or

                  (iv) was developed independent of the confidential information
         obtained from the Company.

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

                                    NEW VISUAL ENTERTAINMENT, INC.

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

                                    CONTINENTAL CAPITAL & EQUITY CORPORATION

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

                                       10

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