LYNCH INTERACTIVE CORPORATION

                              EMPLOYMENT AGREEMENT


     EMPLOYMENT  AGREEMENT,  effective  as of  August  1,  2001,  between  Lynch
Interactive Corporation (the "Company") and John Fikre (the "Executive").

                                R E C I T A L S:
                                 - - - - - - - -

     WHEREAS,  the Company desires to employ the Executive and the Executive has
indicated his  willingness to provide his services,  on the terms and conditions
set forth herein;

     NOW, THEREFORE, on the basis of the foregoing premises and in consideration
of the mutual  covenants and  agreements  contained  herein,  the parties hereto
agree as follows:

     Section 1.  Employment.  The Company  hereby agrees to employ the Executive
and the Executive hereby accepts  employment with the Company,  on the terms and
subject  to the  conditions  hereinafter  set  forth.  Subject  to the terms and
conditions contained herein, the Executive shall serve as the General Counsel of
the Company and, in such capacity,  shall report directly to the Chief Executive
Officer and the Board of Directors  and shall have such duties as are  typically
performed by a general  counsel of a corporation,  together with such additional
duties, commensurate with the Executive's position as the General Counsel of the
Company,  as may be  assigned  to the  Executive  from time to time by the Chief
Executive  Officer  or the Board of  Directors  of the  Company  (the  "Board of
Directors").

     Section 2.  Term.  Unless  terminated  pursuant  to  Section 6 hereof,  the
Executive's  employment  hereunder  shall  commence on the date hereof and shall
continue  during the period ending on the first  anniversary  of the date hereof
(the "Initial Term"). Thereafter, the Employment Term shall extend automatically
for consecutive  periods of one year unless either party shall provide notice of
termination  not less than sixty (60) days prior to an anniversary  date of this
Agreement.  The  Initial  Term,  together  with any  extension  pursuant to this
Section 2, is referred to herein as the "Employment Term."

     Section 3. Compensation. During the Employment Term, the Executive shall be
entitled to the following compensation and benefits:


     (a)  Salary.  As  compensation  for  the  performance  of  the  Executive's
          services  hereunder,  the Company  shall pay to the Executive a salary
          (the "Salary") of $250,000 per annum with increases, if any, as may be
          approved  in writing by the Board of  Directors.  The Salary  shall be
          payable in accordance with the payroll practices of the Company as the
          same shall  exist from time to time.  In no event  shall the Salary be
          decreased during the Employment Term.

     (b)  Bonus Plan. The Executive  shall be eligible to receive an annual cash
          bonus  ("Bonus")  which shall be determined  under the Company's  then
          current Bonus Plan; provided,  however, that Executive shall receive a
          guaranteed Bonus of $62,500 for the Initial Term.

     (c)  Options or Other Equity-Based Incentive  Compensation.  In addition to
          the Salary and Bonus,  if any,  the  Executive  shall be  eligible  to
          participate  in any  stock  option  or  other  equity-based  incentive
          compensation plan or program adopted by the Board of Directors for the
          benefit of other senior executives of the Company.

     (d)  Benefits.  In addition to the Salary and Bonus,  if any, the Executive
          shall be entitled to  participate  in health,  insurance,  pension and
          other benefits  provided to other senior  executives of the Company on
          terms no less favorable than those available to such senior executives
          of the  Company.  The  Executive  shall also be  entitled  to the same
          number of vacation days, holidays, sick days and other benefits as are
          generally  allowed  to  other  senior  executives  of the  Company  in
          accordance with the Company policy in effect from time to time.

     Section 4.  Exclusivity.  During the Employment  Term, the Executive  shall
devote his full time to the business of the Company,  shall faithfully serve the
Company,  shall in all  respects  conform  to and  comply  with the  lawful  and
reasonable  directions  and  instructions  given to him by the  Chief  Executive
Officer  and/or  the Board of  Directors  in  accordance  with the terms of this
Agreement,  shall use his best efforts to promote and serve the interests of the
Company and shall not engage in any other business activity, whether or not such
activity shall be engaged in for pecuniary profit, except that the Executive may
(i) participate in the activities of professional trade organizations related to
the business of the Company,  (ii) engage in personal  investing  activities and
(iii) engage in bar association activity,  provided that activities set forth in
these  clauses (i) through  (iii),  either  singly or in the  aggregate,  do not
interfere  in any  material  respect  with the  services  to be  provided by the
Executive hereunder.

     Section 5. Reimbursement for Expenses. The Executive is authorized to incur
reasonable expenses in the discharge of the services to be performed  hereunder,
including expenses for travel,  lodging and similar items in accordance with the
Company's  expense  reimbursement  policy,  as the same may be  modified  by the
Company from time to time.  The Company  shall  reimburse  the Executive for all
such proper expenses upon  presentation by the Executive of itemized accounts of
such expenditures in accordance with the financial policy of the Company,  as in
effect from time to time.

     Section 6. Termination and Default.

     (a)  Death. The Executive's  employment shall automatically  terminate upon
          his  death  and upon  such  event,  the  Executive's  estate  shall be
          entitled to receive the amounts specified in Section 6(f) below.

     (b)  Disability.  If the Executive is unable to perform the duties required
          of him  under  this  Agreement  because  of  illness,  incapacity,  or
          physical or mental disability,  the Employment Term shall continue and
          the  Company  shall pay all  compensation  required  to be paid to the
          Executive  hereunder,  unless the  Executive  is unable to perform the
          duties  required of him under this  Agreement  for an aggregate of 120
          days (whether or not  consecutive)  during any 12-month  period during
          the term of this Agreement,  in which event the Executive's employment
          shall terminate.

     (c)  Cause.  In the event of termination  pursuant to this Section 6(c) for
          Cause,  the Company  shall  deliver to the  Executive  written  notice
          setting  forth the  basis for such  termination,  which  notice  shall
          specifically set forth the nature of the Cause which is the reason for
          such termination.  Termination of the Executive's employment hereunder
          shall be effective  upon delivery of such notice of  termination.  For
          purposes of this  Agreement,  "Cause" shall mean: (i) the  Executive's
          failure  (except where due to a disability  contemplated by subsection
          (b) hereof),  neglect or refusal to perform his duties hereunder which
          failure,  neglect  or  refusal  shall not have been  corrected  by the
          Executive within 30 days of receipt by the Executive of written notice
          from the Company of such  failure,  neglect or refusal,  which  notice
          shall  specifically  set forth the nature of said failure,  neglect or
          refusal, (ii) any willful or intentional act of the Executive that has
          the effect of injuring  the  reputation  or business of the Company or
          its  affiliates  in any  material  respect;  (iii)  any  continued  or
          repeated absence from the Company, unless such absence is (A) approved
          or  excused  by the  Board of  Directors  or (B) is the  result of the
          Executive's  illness,  disability  or  incapacity  (in which event the
          provisions of Section 6(b) hereof shall control);  (iv) use of illegal
          drugs by the Executive or repeated drunkenness;  (v) conviction of the
          Executive for the  commission of a felony;  or (vi) the  commission by
          the Executive of an act of fraud or embezzlement against the Company.

     (d)  Good Reason.  The Executive may  terminate  his  employment  for "Good
          Reason" following a Substantial Breach (as hereinafter  defined),  but
          only if such  Substantial  Breach shall not have been corrected by the
          Company  within  thirty (30) days of receipt by the Company of written
          notice  from  the  Executive  of the  occurrence  of such  Substantial
          Breach,  which notice shall  specifically  set forth the nature of the
          Substantial Breach which is the reason for such resignation.  The term
          "Substantial  Breach"  means (i) the  failure by the Company to pay to
          the  Executive  the Salary  and  Bonus,  if any,  in  accordance  with
          Sections  3(a) and 3(b)  hereof;  (ii) the  failure by the  Company to
          allow the Executive to participate in the Company's  employee  benefit
          plans  generally  available from time to time to senior  executives of
          the  Company;  or  (iii)  the  failure  of  any  successor  to  all or
          substantially  all of the  business  and/or  assets of the  Company to
          assume this Agreement;  provided,  however, that the term "Substantial
          Breach" shall not include a termination of the Executive's  employment
          hereunder  pursuant  to  Sections  6(b)  or (c)  hereof.  The  date of
          termination  of the  Executive's  employment  under this  Section 6(d)
          shall be the effective date of any resignation specified in writing by
          the  Executive,  which  shall not be less than  thirty (30) days after
          receipt by the Company of written notice of such resignation, provided
          that such resignation shall not be effective  pursuant to this Section
          6(d) and the Substantial  Breach shall be deemed to have been cured if
          such Substantial Breach is corrected by the Company during such 30-day
          period.

     (e)  Other Termination. The Executive shall have the right to terminate his
          employment at any time by giving notice of his resignation  other than
          for Good Reason. The Company may terminate the Executive's  employment
          at any time, with or without Cause.

     (f)  Payments. In the event that the Executive's  employment terminates for
          any reason, the Company shall pay to the Executive all amounts accrued
          but unpaid  hereunder  through the date of  termination  in respect of
          Salary or unreimbursed expenses.  Other than a termination pursuant to
          Section 2, in the event the  Executive's  employment  is terminated by
          the Company  without  Cause or by the Executive  with Good Reason,  in
          addition to the amounts specified in the foregoing  sentence,  (i) the
          Executive  shall  continue to receive the Salary (less any  applicable
          withholding or similar  taxes) at the rate in effect  hereunder on the
          date  of  such  termination  periodically,   in  accordance  with  the
          Company's  prevailing  payroll  practices,  for a period of six months
          following the date of such termination (the "Severance Term") and (ii)
          to the  extent  permissable  under the  Company's  health  plans,  the
          Executive  shall continue to receive any health  benefits  provided to
          him as of the date of such termination in accordance with Section 3(c)
          hereof during the Severance  Term. In the event the Executive  accepts
          other employment or engages in his own business prior to the last date
          of the  Severance  Term,  the  Executive  shall  forthwith  notify the
          Company and the Company  shall be entitled to set off from amounts due
          the  Executive  under  this  Section  6(f)  the  amounts  paid  to the
          Executive in respect of such other  employment  or business  activity.
          Amounts owed by the Company in respect of the Salary or  reimbursement
          for expenses under the provisions of Section 5 hereof shall, except as
          otherwise  set forth in this Section  6(f),  be paid promptly upon any
          termination.

     (g)  Survival  of  Operative   Sections.   Upon  any   termination  of  the
          Executive's employment,  the provisions of Sections 6(f) and 7 through
          18 of this  Agreement  shall  survive to the extent  necessary to give
          effect to the provisions thereof.

     Section 7. Secrecy and Non-Competition.

     (a)  No  Competing   Employment.   The  Executive   acknowledges  that  the
          agreements and covenants  contained in this Section 7 are essential to
          protect  the value of the  Company's  business  and  assets and by his
          current  employment  with  the  Company  and  its  subsidiaries,   the
          Executive  has  obtained  and will  obtain such  knowledge,  contacts,
          know-how,   training  and   experience  and  there  is  a  substantial
          probability  that such  knowledge,  know-how,  contacts,  training and
          experience could be used to the substantial  advantage of a competitor
          of the Company and to the Company's substantial detriment.  Therefore,
          the  Executive  agrees that for the period  commencing  on the date of
          this  Agreement  and ending six months  after the  termination  of the
          Executive's  employment hereunder (such period is hereinafter referred
          to as the "Restricted  Period") with respect to any State in which the
          Company or any of its  subsidiaries  is engaged in business during the
          Employment  Term,  the  Executive  shall not  participate  or  engage,
          directly or indirectly,  for himself or on behalf of or in conjunction
          with any person, partnership,  corporation or other entity, whether as
          an employee,  agent, officer,  director,  shareholder,  partner, joint
          venturer,  investor or otherwise,  in any business  activities if such
          activity consists of any activity undertaken or expressly contemplated
          to be undertaken by the Company or any of its  subsidiaries  or by the
          Executive at any time during the Employment Term.

     (b)  Nondisclosure of Confidential  Information.  The Executive,  except in
          connection  with his employment  hereunder,  shall not disclose to any
          person or entity or use,  either during the Employment  Term or at any
          time thereafter, any information not in the public domain or generally
          known in the industry,  in any form,  acquired by the Executive  while
          employed by the Company or any  predecessor to the Company's  business
          or, if acquired following the Employment Term, such information which,
          to  the  Executive's  knowledge,   has  been  acquired,   directly  or
          indirectly,  from any person or entity owing a duty of confidentiality
          to the Company or any of its  subsidiaries or affiliates,  relating to
          the Company, its subsidiaries or affiliates, including but not limited
          to information regarding customers, vendors, suppliers, trade secrets,
          training  programs,  manuals  or  materials,   technical  information,
          contracts, systems, procedures,  mailing lists, know-how, trade names,
          improvements,  price  lists,  financial or other data  (including  the
          revenues,  costs  or  profits  associated  with  any of the  Company's
          products or services),  business plans, code books, invoices and other
          financial statements,  computer programs, software systems, databases,
          discs  and  printouts,  plans  (business,   technical  or  otherwise),
          customer  and  industry  lists,   correspondence,   internal  reports,
          personnel files,  sales and advertising  material,  telephone numbers,
          names,  addresses or any other compilation of information,  written or
          unwritten,  which is or was used in the business of the Company or any
          subsidiaries  or  affiliates   thereof.   The  Executive   agrees  and
          acknowledges that all of such information, in any form, and copies and
          extracts thereof, are and shall remain the sole and exclusive property
          of the  Company,  and  upon  termination  of his  employment  with the
          Company,  the Executive  shall return to the Company the originals and
          all copies of any such  information  provided  to or  acquired  by the
          Executive in  connection  with the  performance  of his duties for the
          Company,  and shall  return to the Company  all files,  correspondence
          and/or other communications received,  maintained and/or originated by
          the Executive during the course of his employment.

     (c)  No Interference. During the Employment Term and Restricted Period, the
          Executive shall not, whether for his own account or for the account of
          any other individual, partnership, firm, corporation or other business
          organization (other than the Company), directly or indirectly solicit,
          endeavor  to entice  away from the  Company  or its  subsidiaries,  or
          otherwise  directly  interfere with the relationship of the Company or
          its  subsidiaries  with  any  person  who,  to  the  knowledge  of the
          Executive, is employed by or otherwise engaged to perform services for
          the Company or its  subsidiaries  (including,  but not limited to, any
          independent sales  representatives or organizations) or who is, or was
          within the then most recent twelve-month period, a customer or client,
          of the Company, its predecessors or any of its subsidiaries.

     Section 8.  Injunctive  Relief.  Without  intending  to limit the  remedies
available to the Company, the Executive acknowledges that a breach of any of the
covenants  contained  in  Section 7 hereof may  result in  material  irreparable
injury to the Company or its  subsidiaries  or affiliates  for which there is no
adequate remedy at law, that it will not be possible to measure damages for such
injuries  precisely and that,  in the event of such a breach or threat  thereof,
the Company shall be entitled to obtain a temporary  restraining  order and/or a
preliminary   or  permanent   injunction,   without  the  necessity  of  proving
irreparable  harm or injury as a result of such breach or  threatened  breach of
Section  7  hereof,  restraining  the  Executive  from  engaging  in  activities
prohibited  by  Section  7  hereof  or  such  other  relief  as may be  required
specifically to enforce any of the covenants in Section 7 hereof.

     Section 9. Extension of Restricted  Period. In addition to the remedies the
Company  may seek and  obtain  pursuant  to  Section  8 of this  Agreement,  the
Restricted  Period  shall be extended by any and all  periods  during  which the
Executive  shall be found by a court to have been in violation of the  covenants
contained in Section 7 hereof.

     Section 10. Representations and Warranties of the Executive.  The Executive
represents and warrants to the Company as follows:

     (a)  This Agreement,  upon execution and delivery by the Executive, will be
          duly  executed  and  delivered  by the  Executive  and  (assuming  due
          execution  and delivery  hereof by the Company)  will be the valid and
          binding obligation of the Executive  enforceable against the Executive
          in accordance with its terms.

     (b)  Neither the execution and delivery of this Agreement, the consummation
          of the  transactions  contemplated  hereby nor the performance of this
          Agreement in accordance with its terms and conditions by the Executive
          (i) requires the  approval or consent of any  governmental  body or of
          any other  person or (ii)  conflicts  with or results in any breach or
          violation of, or constitutes  (or with notice or lapse of time or both
          would   constitute)  a  default  under,  any  agreement,   instrument,
          judgment,   decree,  order,  statute,  rule,  permit  or  governmental
          regulation   applicable  to  the  Executive.   Without   limiting  the
          generality  of the  foregoing,  the  Executive  is not a party  to any
          non-competition,  non-solicitation,  no hire or similar agreement that
          restricts in any way the Executive's ability to engage in any business
          or to solicit or hire the employees of any person.

     The  representations  and  warranties  of the  Executive  contained in this
Section 10 shall survive the  execution  and delivery of this  Agreement and the
consummation of the transactions contemplated hereby.

     Section 11.  Successors  and Assigns;  No Third-Party  Beneficiaries.  This
Agreement shall inure to the benefit of, and be binding upon, the successors and
assigns of each of the parties,  including,  but not limited to, the Executive's
heirs and the personal  representatives  of the Executive's  estate. The Company
shall have the  unrestricted  right to assign this Agreement and to delegate all
or any part of its  obligations  hereunder to any party,  but in such event such
party shall expressly  assume all  obligations of the Company  hereunder and the
Company shall remain fully liable for the performance of all of such obligations
in the manner  prescribed in this  Agreement.  Nothing in this  Agreement  shall
confer  upon any  person or entity  not a party to this  Agreement  (except  any
permitted assignee),  or the legal representatives of such person or entity, any
rights or remedies of any nature or kind  whatsoever  under or by reason of this
Agreement.

     Section 12. Waiver and  Amendments.  Any waiver,  alteration,  amendment or
modification  of any of the terms of this Agreement  shall be valid only if made
in writing and signed by the parties hereto;  provided,  however,  that any such
waiver,  alteration,  amendment or modification is consented to on the Company's
behalf by the Board of Directors.  No waiver by either of the parties  hereto of
their rights  hereunder  shall be deemed to  constitute a waiver with respect to
any  subsequent   occurrences  or  transactions  hereunder  unless  such  waiver
specifically states that it is to be construed as a continuing waiver.

     Section 13. Severability and Governing Law. The Executive  acknowledges and
agrees that the covenants set forth in this  agreement are  reasonable and valid
in  geographical  and temporal scope and in all other  respects.  If any of such
covenants or such other  provisions of this Agreement are found to be invalid or
unenforceable by a final determination of a court of competent  jurisdiction (a)
the  remaining  terms and  provisions  hereof  shall be  unimpaired  and (b) the
invalid or unenforceable term or provision shall be deemed replaced by a term or
provision that is valid and enforceable and that comes closest to expressing the
intention of the invalid or  unenforceable  term or  provision.  THIS  AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF
NEW YORK  APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED  ENTIRELY WITHIN SUCH
STATE.

     Section 14. Notices. -------

     (a)  All communications  under this Agreement shall be in writing and shall
          be delivered by hand or facsimile or mailed by overnight courier or by
          registered or certified mail, postage prepaid:

          (1)  if  to  the  Executive,   at  28  Perryridge   Road,   Greenwich,
               Connecticut 06830 (facsimile:  (203) 869-9596),  or at such other
               address or facsimile  number as the Executive may have  furnished
               the Company in writing,

          (2)  if to the Company,  at 401 Theodore  Fremd Avenue,  New York, New
               York 10580 (facsimile:  (914) 921-6410), marked for the attention
               of the Chief  Executive  Officer,  or at such  other  address  or
               facsimile  number  as it may have  furnished  in  writing  to the
               Executive, or

     (b)  Any notice so addressed  shall be deemed to be given:  if delivered by
          hand or facsimile, on the date of such delivery; if mailed by courier,
          on the first  business day following the date of such mailing;  and if
          mailed by  registered  or certified  mail,  on the third  business day
          after the date of such mailing.

     Section 15. Section Headings.  The headings of the sections and subsections
of this Agreement are inserted for  convenience  only and shall not be deemed to
constitute  a part  thereof,  affect  the  meaning  or  interpretation  of  this
Agreement or of any term or provision hereof.

     Section  16.  Entire  Agreement.  This  Agreement  constitutes  the  entire
understanding  and agreement of the parties  hereto  regarding the employment of
the Executive.  This Agreement  supersedes all prior negotiations,  discussions,
correspondence,   communications,  understandings  and  agreements  between  the
parties relating to the subject matter of this Agreement.

     Section  17.  Severability.  In the  event  that  any part or parts of this
Agreement shall be held illegal or unenforceable by any court or  administrative
body  of  competent  jurisdiction,  such  determination  shall  not  affect  the
remaining  provisions  of this  Agreement  which shall  remain in full force and
effect.

     Section 18.  Counterparts.  This  Agreement  may be executed in one or more
counterparts,  each of  which  shall  be  deemed  an  original  and all of which
together shall be considered one and the same agreement.


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

                          LYNCH INTERACTIVE CORPORATION


                             By: /s/Mario J. Gabelli
                             Name:  Mario J. Gabelli
                             Title: Chief Executive Officer


                                  /s/John Fikre
                                   John Fikre