Document:

SECURITIES SUBSCRIPTION AGREEMENT

     THIS SECURITIES SUBSCRIPTION AGREEMENT, dated as of _____________
("Agreement"), is executed in reliance upon the exemption from
registration afforded by Rule 504 promulgated under Regulation D
by the Securities and Exchange Commission ("SEC"), under
the Securities Art of 1933, as amended.  Capitalized terms
used herein and not defined shall have the meanings given
to them in Rule 504 and Regulation D.

This Agreement has been executed by the undersigned buyer ("Buyer") in
connection with the private placement of 3% Series A Convertible Debentures
of Jones Naughton Entertainment,  Inc., a corporation organized under the
laws of Colorado, with its principal executive offices located at 5681 Beach
Boulevard, Suite 101, Buena Park, California 90621, hereinafter referred to
as ("Seller").  Buyer hereby represents and warrants to, and agrees with
Seller:

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN
AND WILL NOT BE REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN
EXEMPTION FROM REGISTRATION PROVIDED BY SECTION 3(b) OF THE SECURITIES ACT
OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER
(THE "1933 ACT"), AND RULE 504 OF REGULATION D PROMULGATED THEREUNDER.

1. Agreement to Subscribe; Purchase Price.

(a) Subscription. The undersigned Buyer hereby subscribes for and agrees to
purchase the Seller's 3% Series A Convertible Debenture substantially in the
form of the Debenture attached as Exhibit A hereto and having an aggregate
original principal face amount of U.S. $________ (singly, a "Debenture," and
collectively, the "Debentures"), at an aggregate purchase price of 100% of
the face amount of such Debentures as set forth in subsection (b) herein.

(b) Payment. The Purchase Price for the Debenture shall be ______________
United States Dollars (U.S. $___________ ) ("Purchase Price"), which
shall be payable at closing, pursuant to paragraph c herein, in accordance
with the terms and conditions of an Escrow Agreement which is attached
hereto and shall be executed simultaneously with this Agreement ("Escrow
Agreement").

(c) Closing. Subject to the satisfaction of the conditions set
forth in Sections 7 and 8 hereof, the Closing of the transactions
contemplated by this Agreement shall

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take place when (i) Seller delivers the Debentures to the Escrow Agent, and
(ii) Buyer delivers to the Escrow Agent the purchase price of the Debentures
less any sums required to be paid pursuant to the Escrow Agreement.

2. Buyer Representations and Covenants;

Access to Information.

In connection with the purchase and sale of the Debenture, Buyer represents
and warrants to, and covenants and agrees with Seller as follows,

(i) Buyer is not, and on the closing date will not be, an
affiliate of Seller;

(ii) Buyer is purchasing the Securities for its own account and Buyer is
qualified to purchase the Securities under the laws of its jurisdiction of
residence, and the offer and sale of the Securities will not violate the
securities laws or other laws of such jurisdiction;

(iii) All offers and sales of any of the Securities by Buyer shall be made
in compliance with any applicable securities laws of any applicable
jurisdiction and in accordance with Rule 504, as applicable, of Regulation D
or pursuant to registration of securities under the 1953 Act or pursuant to
an exemption from registration;

(iv) Buyer understands that the Securities are not registered under the 1933
Act and are being offered and sold to it in reliance on specific exclusions
from the registration requirements of Federal and State securities laws, and
that Seller is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of Buyer set
forth herein in order to determine the applicability of such exclusions and
the suitability of Buyer and any purchaser from Buyer to acquire the
Securities;

(v) Buyer shall comply with Rule 504 promulgated under Regulation D;

(vi) Buyer has the full right, power and authority to enter into this
Agreement and to consummate the transaction contemplated herein. This
Agreement has been duly authorized, validly executed and delivered on behalf
of Buyer and is a valid and binding agreement in accordance with its terms,
subject to general principles of equity and to bankruptcy or other laws
affecting the enforcement of creditors' rights generally;

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(vii) The execution and delivery of this Agreement and the consummation of
the Purchase Of the Securities and the transactions contemplated by this
Agreement do not and will not conflict with or result in a breach by Buyer
of any of the term or provisions of, or constitute a default under, the
articles of incorporation or by-laws (or similar constitutive documents) of
Buyer or any indenture, mortgage, deed of trust, or other material agreement
or instrument to which Buyer is a party or by which it or any of its
properties or assets are bound, or any existing applicable law, rule or
regulation of the United States or any State thereof or any applicable
decree, judgment or order of any Federal or State court, Federal or State
regulatory body, administrative agency or other United States governmental
body having jurisdiction over buyer or any of its properties or assets;

(viii) All invitations, offers and sales of or in respect of, any of the
Securities, by Buyer and any distribution by Buyer of any documents relating
to any invitation, offer or sale by it of any of the Securities will be in
compliance with applicable laws and regulations, will be made in such a
manner that no prospectus need be filed and no other filing need by made by
Seller with any regulatory authority or stock exchange in any country or any
political sub-division of any country, and Bayer will make no
misrepresentations nor omissions of material fact in the invitation, offer
or resale of the Debentures;

(ix) The Buyer (or others for whom it is contracting hereunder) has been
advised to consult its own legal and tax advisors with respect to applicable
resale restrictions and applicable tax considerations and it (or others for
whom it is contracting hereunder) is solely responsible (and the Seller is
not in any way responsible) for compliance with applicable resale
restrictions and applicable tax legislation;

(x) Buyer understands that no Federal or State or foreign government agency
has passed on or made any recommendation or endorsement of the Securities;

(xi) Buyer has had an opportunity to discuss with the officers of Seller,
all matters relating to the securities, financial condition, operations and
prospects of Seller and any questions raised by Buyer have been answered to
Buyer's satisfaction.

(xii) Buyer acknowledges that the purchase of the Securities involve a high
degree of risk. Buyer has such knowledge and experience in financial and
business matters that it is capable of evaluating the merits and risks of
purchasing the Securities- Buyer understands that the Securities are not
being registered under

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the 1933 Act, and therefore, Buyer must bear the economic risk of this
investment for an indefinite period of time; and

(xiii) Buyer is not a "10-percent Shareholder" (as defined in Section
871(h)(3)(B) of the U.S. Internal Revenue Code) of Seller.

3. Seller Representations and Covenants

(a) Seller is a corporation duly organized and validly existing under the
laws of the State of Colorado, and is in good standing under such laws- The
Seller has all requisite corporate power and authority to own, lease and
operate its properties and assets, and to carry on its business as presently
conducted. The Seller is qualified to do business as a foreign corporation
in each jurisdiction in which the ownership of its property or the nature of
its business requires such qualification, except where failure to so qualify
would not have a material adverse effect on the Seller

(b) There are 100,000,000 shares of Seller's Common Stock, $0. 001 par value
per share ("Common Stock"), authorized and 39,735,106 as of July 30, 1998
outstanding. The Common Stock trades on OTC Bulletin Board. All issued and
outstanding shares of Common Stock have been authorized and validly issued
and are My paid and assessable

(c) My execution and delivery of this Agreement do not, and the
consummation of the transactions contemplated hereby will not, conflict
with, or result in any violation of, or default (with or without notice or
lapse of time, or both), or give rise to a right of termination,
cancellation or acceleration of. any obligation or to a loss of a material
benefit, under, any provision of the Articles of Incorporation, and any
amendments thereto, By-laws, Stockholders Agreements and any amendments
thereto of the Seller or any material mortgage, indenture, lease or other
agreement or instrument, permit, concession, franchise, license, judgment,
order, decree, statute, law ordinance, rule or regulation applicable to the
Seller, its properties or assets.

(d) The Seller is not subject to the reporting requirements of Sections 13
or 15(d) of the Securities and Exchange Act, is not an investment company or
a developmental stage company that either has no specific business plan or
purpose.

(e) There is no fact known to the Seller that has not been publicly
disclosed by the Seller or disclosed in writing to the Buyer which could
reasonably be expected to have a material adverse effect on the condition
(financial or otherwise) or in the earnings, business affairs, properties or
assets of the Seller, or could reasonably be expected to materially and
adversely affect the ability of the Seller to perform its obligations
pursuant to this Agreement.

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(f) No consent, approval or authorization of or designation, declaration or
filing with any governmental authority on the part of the Seller is required
in connection with the valid execution and delivery of this Agreement, or
the offer, sale or issuance of the debentures or Common Stock, or the
consummation of any other transaction contemplated hereby, except the filing
with the SEC of Form D.  A copy of such filed Form D will be sent to the
Escrow Agent.

(g) There is no action, proceeding or investigation pending, or to the
Seller's knowledge, threatened, against the Seller which might result,
either individually or in the aggregate, in any material adverse change in
the business, prospects, conditions, affairs or operations of the Seller.
The Seller is not a party to or subject to the provisions of any order,
writ, injunction, judgment or decree of any court or government agency or
instrumentality. is no action, suit proceeding or investigation by the
Seller currently pending or which the Seller intends to initiate. The SEC
has not issued any order suspending trading in the Seller's Common Stock.

(h) There are no other material outstanding debt or equity
securities presently convertible into Common Stock other than the Debentures.

(i) The Seller has not sold any securities within The 12 month period prior
to the date the Common Stock was first offered in reliance on any exemption
under Section 3(b) of the 1933 Act or in violation of Section 5(a) of the
1933 Act.

j) The issuance, sale and delivery of the Debentures have been duly
authorized by all required corporate action on the part of the Seller, and
when issued, sold and delivered in accordance with the terms hereof and
thereof for the consideration expressed herein and therein, will be duly and
validly issued, fully paid and non-assessable. The Common Stock issuable
upon conversion of the Debenture has been duly and validly reserved for
issuance and upon issuance in accordance with the terms of the Debentures,
shall be duly and validly issued, fully paid, and non-assessable There are
no pre-emptive rights of any shareholder of Seller.

(k) This Agreement has been duly authorized, validly executed and delivered
on behalf of Seller and is a valid and binding agreement in accordance with
its terms, subject to general principles of equity and to bankruptcy or
other laws affecting the enforcement of creditors' rights generally - The
Seller has all requisite right, power and authority to execute and deliver
this Agreement and to consummate the transactions contemplated hereby. All
corporate action on the part of the Seller, its directors and shareholders
necessary for the authorization, execution, delivery and performance of this
Agreement and the Debentures has been taken. Upon their issuance to the
Buyer and delivery to the Escrow Agent, as defined in and pursuant to the
Escrow Agreement, the Debentures will be validly issued and nonassessable,
and will be free of any liens or encumbrances.

<PAGE>

4. Exemption; Reliance on Representations.  Buyer understands that the offer
and sale of the Securities are not being registered under the 1933 Act.
Seller and Buyer are relying on the rules governing offers and sales made
pursuant to Rule 504 promulgated under Regulation D.

5. Transfer Agent Instructions.

(a) Debentures. Upon the conversion of the Debentures, the Buyer or holder
shall give a notice of conversion to the Seller and the Seller shall
instruct its transfer agent to issue one or more Certificates representing
that number of shares of Common Stock into which the Debenture or Debentures
are convertible in accordance with the provisions regarding conversion set
forth in Exhibit . The Seller shall act as Debenture Registrar and shall
maintain an appropriate ledger containing the necessary information with
respect to each Debenture.

(b) Common Stock to be Issued Without Restrictive Legend.  Upon the conversion
of any Debenture, Seller shall instruct Seller's transfer agent to issue
Stock Certificates up to the total of the "Conversion Amount" (as defined it
the Debenture) and any "Interest Shares" (as defined in the Debenture)
without restrictive legend in the name of the Buyer (or its nominee) and in
such denominations to be specified at conversion representing the number of
shares of Common Stock issuable upon such conversion, as applicable. The
Common Stock shall be immediately freely transferable on the books and
records of Seller.

6. Delivery Instructions. The Debentures being purchased
hereunder, and the Purchase Price, shall be delivered to the Escrow Agent
pursuant to the Escrow Agreement.

7. Conditions To Seller's Obligation To Sell. Seller's
obligation to sell the Debentures is conditioned upon:

(a) The receipt and acceptance by Seller of this Agreement as
executed by Buyer.

(b) All of the representations and warranties of the Buyer contained in this
Agreement shall be true and correct on the Payment Date with the same force
and effect as if made on and as of the Payment Date. The Buyer shall have
performed or complied with all agreements and satisfied all conditions on
its part to be performed, complied with or satisfied at or prior to the
Payment Date.

(c) No order asserting that the transactions contemplated by this
Agreement are subject to the registration requirements of the Act shall have
been issued, and no proceedings for that purpose shall have been commenced
or shall be pending or, to the knowledge of the Seller, be contemplated. No
stop order suspending the sale of the Debentures or Common Stock shall have
been issued, and no proceedings for that purpose shall have been commenced
or shall be pending or, to the knowledge of the Seller, be contemplated.

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(d) No action shall have been taken and no statute, rule, regulation or
order shall have been enacted, adopted or issued by any governmental agency
that would prevent the issuance of the Debentures or Common Stock.  No
injunction, restraining order or order of any nature by a federal or state
court of competent jurisdiction shall have been issued that would prevent
the issuance of the Debentures.

(e) The funding by the Buyer of the Escrow Fund.

8.  Conditions To Buyers Obligation To Purchase.  Buyer's
obligation to purchase the Debentures is conditioned upon:

(a) The confirmation of receipt and acceptance by Seller of this
Agreement as evidenced by execution of this Agreement of the duly authorized
officer of Seller.

(b) Delivery of the Debentures to the Escrow Agent.

9. No Shareholder Approval. Seller hereby agrees that from the
Closing Date until the issuance of Common Stock upon
the conversion of the Debentures, Seller will
not take any action Which would require Seller to seek shareholder
approval of such issuance unless such
shareholder approval is required by law or
regulatory body (including but not limited to the NASDAQ Stock
Market, Inc.) as a result of the issuance of the Securities
hereunder.

10. Miscellaneous.

(a) This Agreement together with the Debentures and Escrow Agreement,
constitutes the entire agreement between the parties, and neither party
shall be liable or bound to the other in any mariner by any warranties,
representations or covenants except as specifically set forth herein- Any
previous agreement among the parties related to the transactions described
herein is superseded hereby.  The term and conditions of this Agreement shall
inure to the benefit of and be binding upon the restrictive successors and
assigns of the parties hereto. Nothing in this Agreement, express or
implied, is intended to confer upon any party, other than the parties
hereto, and their respective successors and assigns, any rights, remedies,
obligations or liabilities under or by reason of this Agreement, except as
expressly provided herein.

(b) Buyer is an independent contractor and is not the agent of
Seller. Buyer is not authorized to bind Seller or to make any representation
or warranties on behalf of Seller.

(c) All representations and warranties contained in this
Agreement by Seller and Buyer shall survive the closing of the transactions
contemplated by this Agreement.

(d) This Agreement shall be construed in accordance with the laws of New
York applicable to contracts made and wholly to be performed within the
State of New York and shall be binding upon the successors and assigns of
each party hereto. Buyer and Seller hereby

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mutually waive trial by jury and consent to exclusive jurisdiction and venue
in the courts of the State of New York. At Buyer's election, any dispute
between the parties may be arbitrated rather than litigated in the courts,
before the arbitration board of the National Association of Securities
Dealers in New York City and pursuant to its rules. Upon demand made by the
Buyer to the Seller, Seller agrees to submit to and participate in such
arbitration.  This Agreement may be executed in counterparts, and the
facsimile transmission of an executed counterpart to this Agreement shall be
effective as an original.

(e) Seller agrees to indemnify and hold Buyer harmless from any and all
claims, damages and liabilities arising from Seller's breach of its
representations and/or covenants set forth herein.

(f) Buyer agrees to indemnify and hold Seller harmless from any and all
claims, damages and liabilities arising from Buyer's breach of its
representations and warranties set forth in this Agreement.

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IN WITNESS WHEREOF, the undersigned has executed This Agreement as of the
date first set forth above.

                      Official Signatory of Seller:

                      JONES NAUGHTON ENTERTAINMENT, INC.

                      By: /s/Joseph Naughton
                      Title: President

Accepted this _______ day of _______________

                       Official Signatory of Buyer:

                       By: _____________________

                       Address of Buyer:DEBENTURE

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED
WITH THE UNWED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED
BY SECTION 3(B) OF THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND
REGULATIONS PROMULGATED THEREUNDER (THE 111933 ACT"), AND RULE 504 OF
REGULATION D PROMULGATED THEREUNDER.

A-001                                                   US $____________
               JONES NAUGHTON ENTERTAINMENT, INC.

                      3% SERIES A CONVERTIBLE DEBENTURE
                              DUE JULY 30, 2000

THIS DEBENTURE of Jones Naughton Entertainment, Inc., a corporation duly
organized and existing under the laws of Colorado ("Company"), designated
as its 3% Series A Convertible Debentures Due July 30, 2000, in an
aggregate principal face amount not exceeding ___________________ Dollars
(U.S. $___________), which Debentures are being purchased at 100% of the face
amount of such Debentures.

FOR VALUE RECEIVED, the Company promises to pay to ________________ the
registered holder hereof and his authorized successors and permitted assigns
("Holder"), the aggregate principal face sum not to exceed _________________
Dollars (U.S. $__________) on July 30, 2000 ("Maturity Date"), and to
pay interest on the principal sum outstanding, at the rate of 3% per annum
commencing January 30, 1999 and due in full at the Maturity Date pursuant to
paragraph 4(b) herein. Accrual of outstanding principal sum has been made or
duly provided for the interest so payable will be paid to the person in
whose name this Debenture is registered on the records of the Company
regarding registration and transfers of the Debentures ("Debenture
Register"); provided, however, that the Company's obligation to a transferee
of this Debenture arises only if such transfer, sale or other disposition is
made in accordance with the terms and conditions of the Securities
Subscription Agreement dated as of _______________ between the Company and
_________________ ("Subscription Agreement").The principal of, and interest on,
this Debenture are payable at the address last appearing on the Debenture
Register of the Company as designated in writing by the Holder hereof from
time to time. The Company will pay the outstanding principal due upon THIS
DEBENTURE before or on the Maturity Date, less any

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amounts required by law to be deducted or withheld, to the Holder of this
Debenture by check if paid more than 10 days prior to the Maturity Date or
by wire transfer and addressed to such Holder at the last address appearing
on the Debenture Register. The forwarding of such check or wire transfer
shall constitute a payment of outstanding principal hereunder and shall
satisfy and discharge the liability for principal on this Debenture -to the
extent of the sum represented by such check or wire transfer. Interest shall
be payable in Common Stock (as defined below) pursuant to paragraph 4(b)
herein.

This Debenture is subject to the following additional provisions

1. The Debentures are issuable in denominations of Ten Thousand Dollars
(US$10,000) and integral multiples thereof. The Debentures are exchangeable
for an equal aggregate principal amount of Debentures of different
authorized denominations, as requested by the Holders surrendering the same,
but not less than U.S. $10,000. No service charge will be made for such
registration or transfer or exchange, except that Holder shall pay any tax
or other governmental charges payable in connection therewith.

2. The Company shall be entitled to withhold from all payments
any amounts required to be withheld under the applicable laws.

3. This Debenture may be transferred or exchanged only in compliance with
the Securities Act of 1953, as amended ("Act") and applicable state
securities laws. Prior to due presentment for transfer of this Debenture,
the Company and any agent of the Company- may treat the person in whose name
this Debenture is duly registered on the Company's Debenture Register as the
owner hereof for all other purposes, whether or not this Debenture be
overdue, and neither the Company nor any such agent shall be affected or
bound by notice to the contrary. Any Holder of this Debenture, electing to
exercise the right of conversion set forth in Section 4(a) hereof, in
addition to the requirements set forth in Section 4(a), and any prospective
transferee of this Debenture, are also required to give the Company written
confirmation that the Debenture is being converted ("Notice of Conversion")
in the form annexed hereto as Exhibit I.

4. (a) The Holder of this Debenture is entitled, at its option, at any time
immediately following execution of this Agreement and delivery of the
Debenture hereof, to convert all or any amount over $10,000 of the principal
face amount. of this Debenture then outstanding into shares of Common Stock,
$0.001 par value per share, of the Company ("Common Stock"), at a conversion
price ("Conversion Price") for each share of Common Stock equal 75% of the
average closing bid. price of the Common Stock for the day immediately
preceding the date of receipt by the Company of Notice of Conversion
("Conversion Share").  However, if the conversion price is below $0.05 per
share, then the Holder is limited to converting a maximum of 25% of the
then outstanding principal in any 7 business day period. If the number of
resultant Conversion Shares would as a matter of law or pursuant to
regulatory authority require the Company to seek shareholder approval of
such issuance, the Company shall, as soon as practicable, take the necessary
steps to seek such approval. Such conversion shall be effectuated, as
provided in a certain Escrow Agreement executed simultaneously with this
Debenture, by the Company delivering the Conversion Shares to the Holder
within 10

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business days of receipt by the Company of the Notice of Conversion. Once
the Holder has received such Conversion Shares, the Escrow Agent shall
surrender the Debentures to be converted to the Company, executed by the
Holder of this Debenture evidencing such Holder's intention to convert this
Debenture or a specified portion hereof, and accompanied by proper
assignment hereof in blank. Accrued but unpaid interest shall be subject to
conversion. No fractional shares or scrip representing fractions of shares
will be issued on conversion, but the number of shares issuable shall be
rounded to the nearest whole share.

(b) Interest at the rate of 3% per annum shall be paid by issuing Common
Stock of the Company as follows: Based on the average closing bid price of
the Common Stock for the day immediately preceding the date of the monthly
interest payment due ("Market Price"), the Company shall issue to the
Holder shares of Common Stock in an amount equal to the total
monthly interest accrued and due divided by 75% of
the Market Price ("Interest Shares"). The dollar amount of interest payable
pursuant to this paragraph 4(b) shall be calculated based upon the total
amount of payments actually made by the Holder in connection with the
purchase of the Debentures at the time any interest payment is due. If such
payment is made by check, interest shall accrue beginning 10 days from the
date the check is received by the Company. If such payment is made by wire
transfer directly into the Company's account, interest shall accrue
beginning on the date the wire transfer is received by the Company.  Common
Stock issued pursuant hereto shall be issued pursuant to Rule 504 of
Regulation D in accordance with the terms of the Subscription Agreement.

(C) At any time after 90 days the Company shall have the option to pay to
the Holder 120% of the principal amount of the Debenture, in full, to the
extent conversion has not occurred pursuant to paragraph 4(a) herein, or pay
upon maturity if the Debenture is not converted. The Company shall give the
Holder 5 days written notice and the Holder during such 5 days shall have
the option to convert the Debenture or any part thereof into shares of
Common Stock at the Conversion Price set forth in paragraph 4(a) of this
Debenture. Any shares issued pursuant to this paragraph 4(C) shall be issued
pursuant to Rule 504 of Regulation D.

5. No provision of this Debenture shall alter or impair the obligation of
the Company, which is absolute and unconditional, to pay the principal of,
and interest on, this Debenture at the time, place, and rate, and in the
form, herein prescribed.

6. The Company hereby expressly waives demand and presentment for payment,
notice of non-payment, protest, notice of protest, notice of dishonor,
notice of acceleration or intent to accelerate, and diligence in taking any
action to collect amounts called for hereunder and shall be directly and
primarily liable for the payment of all sums owing and to be owing hereto

7. The Company agrees to pay all costs and expenses, including reasonable
attorneys' fees, which may be incurred by the Holder in collecting any
amount due under this Debenture.

8. If one or more of the following described "Events of
Default" shall occur and continue for 30 days, unless a different time
frame is noted below:

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(a)   The Company shall default in the payment of principal or interest on
this Debenture; or

(b)   Any of the representations or warranties made by the Company herein, in
the Subscription Agreement, or in any certificate or financial or other
written statements heretofore or hereafter furnished by or on behalf of the
Company in connection with the execution and delivery of this Debenture
or the Subscription Agreement shall be false or misleading in any material
respect at the time made; or

(C)   The Company shall fail to perform or observe, in any material respect,
any other covenant, term, provision, condition, agreement or obligation
of the Company under this Debenture and such failure shall continue
uncured for a period of thirty (30) days after notice from the Holder of
such failure; or

(d)   The Company shall (1) become insolvent; (2) admit in writing its
inability to Pay its debts generally as they mature; (3) make an assignment
for the benefit of creditors or -commence proceedings for its dissolution;
or (4) apply for or consent to the appointment of a trustee, liquidator or
receiver for its or for a substantial part of its property or business; or

(e)   A trustee, liquidator or receiver shall be appointed for the Company
or for a substantial pan of its property or business without its
consent and shall not be discharged within thirty (30) days after
such appointment; or

(f)   Any governmental agency or ally court of competent jurisdiction at the
instance of any governmental agency shall assume custody or control of
the whole or any substantial portion of the properties or assets of the
Company; or

(g)  Any money judgment, writ or warrant of attachment, or similar process,
in excess of One Hundred Thousand ($100,000) Dollars in the aggregate
shall be entered or filed against the Company or any of its properties or
other assets and shall remain unpaid, unvacated, unbonded or unstayed for
a period of fifteen (15) days or in any event later than five (5) days prior
to the date of any proposed sale thereunder; or

(h)   Bankruptcy, reorganization, insolvency or liquidation proceedings, or
other proceedings for relief under any bankruptcy law or any law for the
relief of debtors shall be instituted by or against the Company and, if
instituted against the Company; or

(i)   The Company shall have its Common Stock delisted from the over-the
counter market; or

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(j) The Company shall not deliver to the Buyer the Common Stock pursuant to
paragraph 4 herein without restrictive legend within 3 business days.

Then, or at any time thereafter, unless cured, and in each and every such
case, unless such Event of Default shall have been waived in writing by the
Holder (which waiver shall not be deemed to be a waiver of any subsequent
default) at the option of the Holder and in the Holder's sole discretion,
the Holder may consider this Debenture immediately due and payable, without
presentment, demand, protest or (further) notice of any kind (other than
notice of acceleration), all of which are hereby expressly waived, anything
herein or in any note or other instruments contained to the contrary
notwithstanding, and the Holder may immediately, and without expiration of
any period of grace, enforce any and all of the Holder's rights and remedies
provided herein or any other rights or remedies afforded by law.

9. This Debenture represents a prioritized obligation of the Company.
However, no recourse shall be had for the payment of the principal of, or
the interest on, this Debenture, or for any claim based hereon, or otherwise
in respect hereof, against any incorporator, shareholder, officer or
director, as such, past, present or future, of the Company or any successor
corporation, whether by virtue of any constitution., statute or rule of law,
or by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration
for the issue hereof, expressly waived and released

10. In case any provision of this Debenture is held by a court of competent
jurisdiction to be excessive in scope or otherwise invalid or unenforceable,
such provision shall be adjusted rather than voided, if possible, so that it
is enforceable to the maximum extent possible, and the validity and
enforceability of the remaining provisions of this Debenture will
not in any way be affected or impaired thereby.

11. This Debenture and the agreements referred to in this Debenture
constitute the fall and entire understanding and agreement between the
Company and the Holder with respect to the subject hereof. Neither this
Debenture nor any term hereof may be amended, waived, discharged or
terminated other than by a written instrument signed by the Company and the
Holder.

12. This Debenture shall be governed by and construed in accordance with the
laws of New York applicable to contracts made and wholly to be performed
within the State of New York and shall be binding upon the successors and
assigns of each party hereto. The Holder and the Company hereby mutually
waive trial by jury and consent to exclusive jurisdiction and venue in the
courts of the State of New York. At Holder's election, any dispute between
the parties may be arbitrated rather than litigated in the courts, before
the arbitration board of the National Association of Securities Dealers in
New York City and pursuant to its rules. Upon demand made by the Holder to
the Company, the Company agrees to submit to and participate in such
arbitration. This Agreement may be executed in counterparts, and the
facsimile transmission of an executed counterpart to this Agreement shall be
effective as an original.

<PAGE>

IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed by an officer thereunto duly authorized.

Dated: ____________________

JONES NAUGHTON ENTERTAINMENT, INC.

BY:/s/Joseph Naughton
Title: President

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