Document:

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                                                                    EXHIBIT 10.3

                              EMPLOYMENT AGREEMENT

        This Employment Agreement (the "Agreement"), dated as of April 25, 2002,
is entered into by and between Liberty Livewire Corporation, a Delaware
corporation (the "Company"), and William W. Goodmen ("Executive").

                                  INTRODUCTION

        The Company and its operating subsidiaries ("Affiliates") are engaged in
the business of providing technical and creative services to the entertainment
industry. The Company desires to employ Executive, and Executive desires to
accept such employment, under the terms and conditions set forth herein.

        NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

                                    ARTICLE I

                            EMPLOYMENT; TERM; DUTIES

        1.1 Employment. Upon the terms and conditions hereinafter set forth, the
Company hereby employs Executive, and Executive hereby accepts employment, as
Executive Vice President of Human Resources.

        1.2 Term. Subject to Article IV below, Executive's employment hereunder
shall be for a term of five (5) years commencing as of May 15, 2002, and
expiring at the close of business on May 14, 2007 (the "Term").

        1.3 Duties. During the Term, Executive shall perform such executive
duties for the Company and/or its Affiliates, consistent with his position
hereunder, as may be assigned to him from time to time by the Chief Executive
Officer of the Company or his designee. Executive shall devote his entire
productive business time, attention and energies to the performance of his
duties hereunder. Executive shall use his best efforts to advance the interests
and business of the Company and its Affiliates. Executive shall abide by all
rules, regulations and policies of the Company, as may be in effect from time to
time. Notwithstanding the foregoing, Executive may act for his own account in
passive-type investments as provided in Section 5.3, or as a member of boards of
directors of other companies, where the time allocated for those activities does
not materially interfere with or create a conflict of interest with the
discharge of his duties for the Company.

        1.4 Reporting. Executive shall report directly to the Chief Executive
Officer of the Company or his designee.

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        1.5 Exclusive Agreement. Executive represents and warrants to the
Company that there are no agreements or arrangements, whether written or oral,
in effect which would prevent Executive from rendering his exclusive services to
the Company during the Term.

                                   ARTICLE II

                                  COMPENSATION

        2.1 Compensation. For all services rendered by Executive hereunder and
all covenants and conditions undertaken by him pursuant to this Agreement, the
Company shall pay, and Executive shall accept, as full compensation, the amounts
set forth in this Article II.

        2.2 Base Salary. The base salary shall be an annual salary of $225,000
(the "Base Salary"), payable by the Company in accordance with the Company's
normal payroll practices applicable to senior executives but no less frequently
than monthly.

        2.3 Signing Bonus. Upon execution of this Agreement, the Company shall
pay Executive a signing bonus in the amount of Twenty-Five Thousand Dollars
($25,000).

        2.4 Bonus. In addition to the Base Salary, Executive shall be eligible
to participate in an incentive bonus plan, if any, to be established and
administered by the Compensation Committee of the Board of Directors. The
criteria on which awards under any such plan are based shall be set by the Board
or the Compensation Committee of the Board.

        2.5 Deductions. The Company shall deduct from the compensation described
in Sections 2.2, 2.3 and 2.4 any federal, state or local withholding taxes,
social security contributions and any other amounts which may be required to be
deducted or withheld by the Company pursuant to any federal, state or local
laws, rules or regulations.

        2.6 Disability Adjustment. Any compensation otherwise payable to
Executive pursuant to Sections 2.2 and 2.4 in respect of any period during which
Executive is disabled (as contemplated in Section 4.4) shall be reduced by any
amounts payable to Executive for loss of earnings or the like under any
insurance plan or policy sponsored by the Company.

                                   ARTICLE III

                               BENEFITS; EXPENSES

        3.1 Benefits. During the Term, Executive shall be entitled to
participate in such group life, health, accident, disability or hospitalization
insurance plans, pension plans and retirement plans as the Company may make
available to its other senior executive employees as a group, subject to the
terms and conditions of any such plans. Executive's participation in all

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such plans shall be at a level, and on terms and conditions, that are
commensurate with his positions and responsibilities at the Company.

        3.2 Expenses. The Company agrees that Executive is authorized to incur
reasonable expenses in the performance of his duties hereunder and in promoting
the business of the Company. The Company shall from time to time pay or
reimburse Executive for the reasonable and necessary expenses incurred by
Executive in connection with the performance of his duties hereunder if such
expenses have been previously approved by the Company or if reimbursement is
otherwise appropriate in accordance with the Company's established policies and
if the Company receives such verification thereof as the Company may require in
order to qualify such expenses as deductible business expenses.

        3.3 Vacation. Executive shall accrue a total of one hundred sixty (160)
hours of vacation per year following the date of this Agreement. If, at any time
during the Term, Executive accumulates two hundred forty (240) hours of earned
but unused vacation time, Executive will cease to be covered by the Company's
vacation policy and will not earn, vest or accrue additional vacation time until
he has taken the previously earned vacation. Executive will again be covered by
the Company's vacation policy and will earn, vest and accrue paid vacation time
to the extent he uses the previously earned vacation. Upon termination of
Executive's employment, any accrued but unused vacation time will be paid to
Executive.

        3.4 Key Man Insurance. The Company may secure in its own name or
otherwise, and at its own expense, life, health, accident and other insurance
covering Executive alone or with others, and Executive shall not have any right,
title or interest in or to such insurance other than as expressly provided
herein. Executive agrees to assist the Company in procuring such insurance by
submitting to the usual and customary medical and other examinations to be
conducted by such physicians as the Company or such insurance company may
designate and by signing such applications and other written instruments as may
be required by the insurance companies to which application is made for such
insurance. Executive's failure to submit to such usual and customary medical and
other examinations shall be deemed a material breach of this Agreement.

        3.5 Stock Options. Subject to approval by the Board of Directors of the
Company (or any duly empowered Committee thereof), the Company shall grant to
Executive an option (the "Option") to purchase 65,000 shares of the Company's
Class A common stock, par value $.01 per share, pursuant to the Liberty Livewire
Corporation 2001 Incentive Plan (as the same may be amended from time to time,
the "Plan"). The exercise price shall be an amount equal to the closing market
price of the Company's Class A common stock on the date of the grant (the "Grant
Date"), but in no event less than Seven Dollars ($7.00) per share. The terms and
conditions of the Option shall be set forth in a stock option agreement (the
"Stock Option Agreement") in the form customarily utilized by the Company for
the grant of options to similarly situated executives. Except as otherwise set
forth in the Stock Option Agreement and this Agreement, the Option shall vest in
accordance with the terms of the Plan.

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        Notwithstanding the foregoing, the following shall apply:

        (a) Subject to Section 4.6 below, and subject to approval by the Board
of Directors of the Company (or any duly empowered Committee thereof), upon the
occurrence of a Termination Without Cause (as defined in Section 4.2 below), or
a Termination With Good Reason (as defined in Section 4.3 below), the shares
covered by the Option shall vest and become exercisable in accordance with the
following schedule:

               (i)    If the termination takes place prior to the second
                      anniversary of the Grant Date, then twenty-five percent
                      (25%) of the shares covered by the Option shall be deemed
                      vested. All unvested shares shall terminate.

               (ii)   If the termination takes place on or after the second
                      anniversary of the Grant Date, but prior to the expiration
                      of forty-two (42) months from the Grant Date, then fifty
                      percent (50%) of the shares covered by the Option shall be
                      deemed vested. All unvested shares shall terminate.

               (iii)  If the termination takes place at any point thereafter
                      (i.e., on or after the expiration of forty-two (42) months
                      from the Grant Date), then the greater of (A) seventy-five
                      percent (75%) of the shares covered by the Option or (B)
                      such amount as otherwise would be deemed vested pursuant
                      to the terms of the Plan, shall be deemed vested. All
                      unvested shares shall terminate.

        (b) Subject to Section 4.6 below, and subject to approval by the Board
of Directors of the Company (or any duly empowered Committee thereof), in the
event that Executive incurs a termination of employment pursuant to (i) a
Termination Without Cause, or (ii) a Termination With Good Reason, then any
portion of the Option that has become vested on or before the date of such
termination (including, without limitation, any portion that becomes exercisable
due to such termination) shall remain exercisable for eighteen (18) months
following the date of such termination; provided, however, that the Board of
Directors shall have the discretion to determine that the Option must be
exercised prior to consummation of an Approved Transaction (as such term is
defined in the Plan).

        (c) In the event that (i) Executive incurs a Termination With Cause (as
defined in Section 4.1 below), (ii) Executive incurs a termination for death or
Disability (as defined in Section 4.4 below), or (iii) Executive resigns without
"Good Reason" prior to the expiration of the Term, then the Option shall be
governed by the terms of the Plan.

        (d) Notwithstanding anything else to the contrary provided herein, the
Option shall terminate on the expiration date provided in the Stock Option
Agreement, if not already expired.

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                                   ARTICLE IV

                         TERMINATION; DEATH; DISABILITY

        4.1 Termination of Employment With Cause. In addition to any other
remedies available to the Company at law, in equity or as set forth in this
Agreement, the Company shall have the right, upon written notice to Executive,
to terminate his employment hereunder without any further liability or
obligation to him in respect of his employment (other than its obligation to pay
Base Salary and vacation time accrued but unpaid as of the date of termination
and reimbursement of expenses incurred prior to the date of termination in
accordance with Section 3.2 above) if Executive: (a) breaches any material
provision of this Agreement; or (b) has committed an act of gross misconduct in
connection with the performance of his duties hereunder, as determined in good
faith by the Chief Executive Officer of the Company; or (c) demonstrates
habitual negligence in the performance of his duties, as determined by the Chief
Executive Officer of the Company; or (d) is convicted of or pleads nolo
contendere to any felony; or (e) is convicted of or pleads nolo contendere to
any misdemeanor involving moral turpitude and the conduct underlying such
misdemeanor has an adverse or detrimental effect on the Company, its reputation,
or its business, as determined by the Chief Executive Officer of the Company; or
(f) has committed any act of fraud, misappropriation of funds or embezzlement in
connection with his employment hereunder (a "Termination With Cause").

               Notwithstanding the foregoing, no purported Termination With
Cause pursuant to (a), (b) or (c) of this Section 4.1 shall be effective unless
all of the following provisions shall have been complied with: (i) Executive
shall be given written notice by the Chief Executive Officer of the intention to
effect a Termination With Cause, such notice to state in detail the particular
circumstances that constitute the grounds on which the proposed Termination With
Cause is based; and (ii) Executive shall have five (5) business days after
receiving such notice in which to cure such grounds, to the extent such cure is
possible, as determined in the sole discretion of the Chief Executive Officer.

        4.2 Termination of Employment Without Cause. During the Term, the
Company may at any time, in its sole discretion, terminate the employment of
Executive hereunder for any reason (other than those set forth in Section 4.1
above) upon written notice (the "Termination Notice") to Executive (a
"Termination Without Cause"). In such event, the Company shall pay Executive an
amount equal to the sum of the following:

               (a)    any Base Salary and vacation time accrued but unpaid as of
                      the date of termination;

               (b)    subject to Section 4.6 below, an amount (the "Severance
                      Payment") equal to Executive's monthly Base Salary in
                      effect on the date of termination for the lesser of (i)
                      eighteen (18) months or (ii) the remainder of the Term,
                      payable as and when such amounts would have been due and
                      payable hereunder had such termination not occurred (the
                      "Severance Period"); and

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               (c)    any reimbursement for expenses incurred in accordance with
                      Section 3.2.

               In addition, subject to Section 4.6 below, the Company shall use
its best efforts to arrange for the continuation, through the Severance Period,
of such health and/or medical benefits or plans as are in effect with respect to
Executive as of the date of termination, if and only if permissible under such
plans, such benefits and plans to be continued on the same terms and conditions
as were in effect with respect to Executive as of the date of termination. If
not so permissible, the Company shall pay to Executive an amount sufficient to
enable Executive to arrange for substantially equivalent health and/or medical
coverage during the Severance Period.

               Executive acknowledges that the payments and benefits referred to
in both Section 3.5 and this Section 4.2, together with any rights or benefits
under any written plan or agreement which have vested on or prior to the
termination date of Executive's employment under this Section 4.2, constitute
the only payments which Executive shall be entitled to receive from the Company
hereunder in the event of any termination of his employment pursuant to this
Section 4.2, and the Company shall have no further liability or obligation to
him hereunder or otherwise in respect of his employment.

        4.3 Termination of Employment With Good Reason. In addition to any other
remedies available to Executive at law, in equity or as set forth in this
Agreement, Executive shall have the right during the Term, upon written notice
to the Company, to terminate his employment hereunder upon the occurrence of any
of the following events without the prior written consent of Executive: (a) a
reduction in Executive's then current Base Salary; or (b) a breach by the
Company of any material provision of this Agreement (a "Termination With Good
Reason").

               Notwithstanding the foregoing, no purported Termination With Good
Reason pursuant to this Section 4.3 shall be effective unless all of the
following provisions shall have been complied with: (i) the Company shall be
given written notice by Executive of the intention to effect a Termination With
Good Reason, such notice to state in detail the particular circumstances that
constitute the grounds on which the proposed Termination With Good Reason is
based and to be given no later than ninety (90) days after Executive first
learns of such circumstances; and (ii) the Company shall have fifteen (15) days
after receiving such notice in which to cure such grounds, to the extent such
cure is possible.

               In the event that a Termination With Good Reason occurs, then,
subject to Section 4.6 below, Executive shall have the same entitlement to the
amounts and benefits as provided under Section 4.2 for a Termination Without
Cause.

               Executive acknowledges that the payments and benefits referred to
in both Section 3.5 and this Section 4.3, together with any rights or benefits
under any written plan or agreement which have vested on or prior to the
termination date of Executive's employment under this Section 4.3, constitute
the only payments which Executive shall be entitled to receive from the Company
hereunder in the event of any termination of his employment pursuant to this
Section 4.3, and the Company shall have no further liability or obligation to
him hereunder or otherwise in respect of his employment.

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        4.4 Death; Disability. In the event that Executive dies or becomes
Disabled (as defined herein) during the Term, Executive's employment shall
terminate when such death or Disability occurs and the Company shall pay
Executive (or his legal representative, as the case may be) as follows:

               (a)    any Base Salary and vacation time accrued but unpaid as of
                      the date of death or termination for Disability;

               (b)    any reimbursement for expenses incurred in accordance with
                      Section 3.2.; and

               (c)    an amount equal to Executive's monthly Base Salary in
                      effect on such termination date for the lesser of (i) six
                      (6) months or (ii) the remainder of the Term, payable as
                      and when such amounts would have been due and payable
                      hereunder had such termination not occurred.

               For the purposes of this Agreement, Executive shall be deemed to
be "Disabled" or have a "Disability" if, because of Executive's physical or
mental disability, he has been substantially unable to perform his duties
hereunder for twelve (12) work weeks in any twelve (12) month period. Executive
shall be considered to have been substantially unable to perform his duties
hereunder only if he is either (a) unable to reasonably and effectively carry
out his duties with reasonable accommodations by the Company or (b) unable to
reasonably and effectively carry out his duties because any reasonable
accommodation which may be required would cause the Company undue hardship. In
the event of a disagreement concerning Executive's perceived Disability,
Executive shall submit to such examinations as are deemed appropriate by three
practicing physicians specializing in the area of Executive's Disability, one
selected by Executive, one selected by the Company, and one selected by both
such physicians. The majority decision of such three physicians shall be final
and binding on the parties. Nothing in this paragraph is intended to limit the
Company's right to invoke the provisions of this paragraph with respect to any
perceived Disability of Executive.

               Notwithstanding the foregoing, to the extent and for the period
required by any state or federal family and medical leave law, upon Executive's
request (i) he shall be considered to be on unpaid leave of absence and not
terminated, (ii) his group health benefits shall remain in full force and
effect, and (iii) if Executive recovers from any such Disability, at that time,
to the extent required by any state or federal family and medical leave law,
upon Executive's request, he shall be restored to his position hereunder or to
an equivalent position, as the Company may determine, and the Term of
Executive's employment hereunder shall be reinstated effective upon such
restoration. The Term shall not be extended by reason of such intervening leave
of absence or termination, nor shall any compensation or benefits accrue in
excess of those required by law during such intervening leave of absence or
termination. Upon the expiration of any such rights, unless Executive has been
restored to a position with the Company, he shall thereupon be considered
terminated.

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               Executive acknowledges that the payments referred to in both
Section 3.5 and this Section 4.4, together with any rights or benefits under any
written plan or agreement which have vested on or prior to the termination date
of Executive's employment under this Section 4.4, constitute the only payments
which Executive (or his legal representative, as the case may be) shall be
entitled to receive from the Company hereunder in the event of a termination of
his employment for death or Disability, and the Company shall have no further
liability or obligation to him (or his legal representatives, as the case may
be) hereunder or otherwise in respect of his employment.

        4.5 No Mitigation by Executive. Except as otherwise expressly provided
herein, Executive shall not be required to mitigate the amount of any payment
provided for in this Agreement by seeking other employment or otherwise, nor
shall the amount of any payment provided for herein be reduced by any
compensation earned by Executive as the result of employment by another
employer; provided, however, that if Executive becomes employed with another
employer and is eligible to receive health and/or medical benefits under such
other employer's plans, Executive's continued benefits and/or plan coverage as
set forth in Section 4.2 or 4.3, as the case may be, shall be reduced to the
extent that comparable benefits and/or coverage is provided under such other
employer's plans.

        4.6 Severance Agreement and Release. In the event that Executive incurs
a termination of employment pursuant to (i) a Termination Without Cause (as
defined in Section 4.2 above), or (ii) a Termination With Good Reason (as
defined in Section 4.3 above), payment by the Company of the amounts described
in said sections shall be subject to the execution by Executive of the Company's
standard severance agreement and release (the "Release").

               The Release shall be delivered to Executive, in the case of a
Termination Without Cause, at the time of delivery of the Termination Notice,
and, in the case of a Termination With Good Reason, upon delivery of written
notice by the Executive to the Company. Executive shall have a period of thirty
(30) days after the effective date of termination of this Agreement (the
"Consideration Period") in which to execute and return the original, signed
Release to the Company. If Executive delivers the original, signed Release to
the Company prior to the expiration of the Consideration Period, then the
Severance Period shall be deemed to have commenced as of the first day of the
Consideration Period and Executive shall be entitled to the amounts and benefits
set forth in Section 4.2 or 4.3, as the case may be.

               If Executive does not deliver the original, signed Release to the
Company prior to the expiration of the Consideration Period, then:

               (a)    the Company shall pay Executive an amount equal to the sum
                      of (i) any Base Salary and vacation time accrued but
                      unpaid as of the date of termination, plus (ii) any
                      reimbursement for expenses incurred in accordance with
                      Section 3.2;

               (b)    the Company shall have no obligation to (i) pay to
                      Executive the Severance Payment (as that term is defined
                      in Section 4.2(b) above), (ii) arrange for the
                      continuation, through the Severance Period, of health

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                      and/or medical benefits or plans in effect with respect to
                      Executive as of the date of termination, or (iii) pay to
                      Executive an amount sufficient to enable Executive to
                      arrange for substantially equivalent health and/or medical
                      coverage during the Severance Period; and

               (c)    any portion of the Option (as that term is defined in
                      Section 3.5 above) that has become vested on or before the
                      date of such termination shall be exercisable in
                      accordance with the terms of the Plan (as that term is
                      defined in Section 3.5 above), and all unvested shares
                      shall terminate.

        4.7 Continued Compliance. Executive and the Company hereby acknowledge
that the amounts or benefits payable by the Company under Sections 4.2(b), 4.3,
and 4.4(c) are part of the consideration for Executive's undertakings under
Article V below. Such amounts and benefits are subject to Executive's continued
compliance with the provisions of Article V. If Executive violates the
provisions of Article V, then the Company will have no obligation to make any of
the payments that remain payable by the Company under Sections 4.2(b), 4.3, and
4.4(c) on or after the date of such violation.

                                    ARTICLE V

              OWNERSHIP OF PROCEEDS OF EMPLOYMENT; NON-DISCLOSURE;
                                 NON-COMPETITION

        5.1 Ownership of Proceeds of Employment. The Company shall be the sole
and exclusive owner throughout the universe in perpetuity of all of the results
and proceeds of Executive's services, work and labor during the Term in
connection with Executive's employment by the Company, free and clear of any and
all claims, liens or encumbrances. All results and proceeds of Executive's
services, work and labor during the Term shall be deemed to be
works-made-for-hire for the Company within the meaning of the copyright laws of
the United States and the Company shall be deemed to be the sole author thereof
in all territories and for all purposes.

        5.2 Non-Disclosure of Confidential Information. As used herein,
"Confidential Information" means any and all information affecting or relating
to the business of the Company and its Affiliates, including without limitation,
financial data, customer lists and data, licensing arrangements, business
strategies, pricing information, product development, intellectual, artistic,
literary, dramatic or musical rights, works, or other materials of any kind or
nature (whether or not entitled to protection under applicable copyright laws,
or reduced to or embodied in any medium or tangible form), including without
limitation, all copyrights, patents, trademarks, service marks, trade secrets,
contract rights, titles, themes, stories, treatments, ideas, concepts,
technologies, art work, logos, hardware, software, and as may be embodied in any
and all computer programs, tapes, diskettes, disks, mailing lists, lists of
actual or prospective customers and/or suppliers, notebooks, documents,
memoranda, reports, files, correspondence, charts, lists and all other written,
printed or otherwise recorded material of any kind whatsoever and any other
information, whether or not reduced to writing, including "know-how", ideas,
concepts,

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research, processes, and plans. "Confidential Information" does not include
information that is in the public domain, information that is generally known in
the trade, or information that Executive can prove he acquired wholly
independently of his employment with the Company. Executive shall not, at any
time during the Term or thereafter, directly or indirectly, disclose or furnish
to any other person, firm or corporation any Confidential Information, except in
the course of the proper performance of his duties hereunder or as required by
law (in which event Executive shall give prior written notice to Company and
shall cooperate with Company and Company's counsel in complying with such legal
requirements). Promptly upon the expiration or termination of Executive's
employment hereunder for any reason or whenever the Company so requests,
Executive shall surrender to the Company all documents, drawings, work papers,
lists, memoranda, records and other data (including all copies) constituting or
pertaining in any way to any of the Confidential Information.

        5.3 Non-Competition. Executive shall not, for so long as he is entitled
to compensation under or pursuant to this Agreement (whether or not he is
actively employed by the Company hereunder), directly or indirectly: (a) compete
with the Company; or (b) be interested in, employed by, engaged in or
participate in the ownership, management, operation or control of, or act in any
advisory or other capacity for, any Competing Entity which conducts its business
within the Territory (as such terms are hereinafter defined); provided, however,
that notwithstanding the foregoing, Executive may make solely passive
investments in any Competing Entity the common stock of which is "publicly
held," and of which Executive shall not own or control, directly or indirectly,
in the aggregate securities which constitute more than one (1%) percent of the
voting rights or equity ownership of such Competing Entity; or (c) solicit or
divert any business or any customer from the Company or assist any person, firm
or corporation in doing so or attempting to do so; or (d) cause or seek to cause
any person, firm or corporation to refrain from dealing or doing business with
the Company or assist any person, firm or corporation in doing so or attempting
to do so.

               For purposes of this Section 5.3, (i) the term "Competing Entity"
shall mean any entity which presently or during the period referred to above
engages in any business activity the Company is then engaged in or proposes to
be engaged in; and (ii) the term "Territory" shall mean any geographic area in
which the Company conducts business during such period.

        5.4    Non-Solicitation.

               5.4.1 Executive shall not, for a period of two (2) years from the
date of any termination or expiration of his employment hereunder, directly or
indirectly: (a) acquire any financial interest in or perform any services for
himself or any other entity in connection with a business in which Executive's
interest, duties or activities would inherently require Executive to reveal any
Confidential Information; or (b) solicit or cause to be solicited the disclosure
of or disclose any Confidential Information for any purpose whatsoever or for
any other party.

               5.4.2 Executive shall not, for a period of two (2) years from the
date of any termination or expiration of his employment hereunder, solicit,
directly or indirectly, or cause or permit others to solicit, directly or
indirectly, any person employed by the Company (a "Current Employee") to leave
employment with the Company. The term "solicit" includes, but is not

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limited to the following (regardless of whether done directly or indirectly):
(i) requesting that a Current Employee change employment, (ii) informing a
Current Employee that an opening exists elsewhere, (iii) assisting a Current
Employee in finding employment elsewhere, (iv) inquiring if a Current Employee
"knows of anyone who might be interested" in a position elsewhere, (v) inquiring
if a Current Employee might have an interest in employment elsewhere, (vi)
informing others of the name or status of, or other information about, a Current
Employee, or (vii) any other similar conduct, the effect of which is that a
Current Employee leaves the employment of the Company.

        5.5 Breach of Provisions. In the event that Executive shall breach any
of the provisions of this Article V, or in the event that any such breach is
threatened by Executive, in addition to and without limiting or waiving any
other remedies available to the Company at law or in equity, the Company shall
be entitled to immediate injunctive relief in any court, domestic or foreign,
having the capacity to grant such relief, without the necessity of posting a
bond, to restrain any such breach or threatened breach and to enforce the
provisions of this Article V. Executive acknowledges and agrees that there is no
adequate remedy at law for any such breach or threatened breach and, in the
event that any action or proceeding is brought seeking injunctive relief,
Executive shall not use as a defense thereto that there is an adequate remedy at
law.

        5.6 Reasonable Restrictions. The parties acknowledge that the foregoing
restrictions, the duration and the territorial scope thereof as set forth in
this Article V, are under all of the circumstances reasonable and necessary for
the protection of the Company and its business.

        5.7 Definition. For purposes of this Article V, the term "Company" shall
be deemed to include any subsidiary of, affiliate of, predecessor to, or
successor of the Company.

                                   ARTICLE VI

                                  MISCELLANEOUS

        6.1 Binding Effect. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective legal representatives,
heirs, distributees, successors and assigns; provided that the rights and
obligations of Executive hereunder shall not be assignable by him.

        6.2 Notices. Any notice provided for herein shall be in writing and
shall be deemed to have been given or made when personally delivered or three
(3) days following deposit for mailing by first class registered or certified
mail, return receipt requested, or if delivered by facsimile transmission, upon
confirmation of receipt of the transmission, to the address of the other party
set forth below or to such other address as may be specified by notice given in
accordance with this Section 6.2:

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               (a)    If to the Company:

                      Liberty Livewire Corporation
                      520 Broadway, 5th Floor
                      Santa Monica, CA  90401
                      Attention:  Chief Executive Officer
                      Fax No.:  (310) 434-7007

                      With a copy to:

                      Liberty Livewire Corporation
                      520 Broadway, 5th Floor
                      Santa Monica, CA  90401
                      Attention:  General Counsel
                      Fax No.:  (310) 434-7005

               (b)    If to Executive:

                      Mr. William W. Goodmen
                      29095 Wagon Road
                      Agoura Hills, CA 91301
                      Fax No.:________________

        6.3 Severability. If any provision of this Agreement, or portion
thereof, shall be held invalid or unenforceable by a court of competent
jurisdiction, such invalidity or unenforceability shall attach only to such
provision or portion thereof, and shall not in any manner affect or render
invalid or unenforceable any other provision of this Agreement or portion
thereof, and this Agreement shall be carried out as if any such invalid or
unenforceable provision or portion thereof were not contained herein. In
addition, any such invalid or unenforceable provision or portion thereof shall
be deemed, without further action on the part of the parties hereto, modified,
amended or limited to the extent necessary to render the same valid and
enforceable.

        6.4 Confidentiality. The parties hereto agree that they will not, during
the Term or thereafter, disclose to any other person or entity the terms or
conditions of this Agreement without the prior written consent of the other
party or as required by law, regulatory authority or as necessary for either
party to obtain personal loans or financing. Approval of the Company and of
Executive shall be required with respect to any press releases regarding this
Agreement and the activities of Executive contemplated hereunder.

        6.5 Arbitration. If any controversy, claim or dispute arises out of or
in any way relates to this Agreement, the alleged breach thereof, Executive's
employment with the Company or termination therefrom, including without
limitation, any and all claims for employment discrimination or harassment,
civil tort and any other employment laws, excepting only claims which may not,
by statute, be arbitrated, both Executive and the Company (and its directors,
officers, employees or agents) agree to submit any such dispute exclusively to
binding arbitration. Both Executive and the Company acknowledge that they are
relinquishing their right

                                       12
<PAGE>

to a jury trial in civil court. Executive and the Company agree that arbitration
is the exclusive remedy for all disputes arising out of or related to
Executive's employment with the Company.

               The arbitration shall be in accordance with the Employment
Dispute Resolution Rules of the American Arbitration Association, except as
provided otherwise in this Agreement. The arbitration shall be commenced and
heard in Los Angeles County, California. The arbitrator(s) shall apply the
substantive law (and the law of remedies, if applicable) of California or
federal law, or both, as applicable to the claim(s) asserted. In any
arbitration, the burden of proof shall be allocated as provided by applicable
law. Either party may bring an action in court to compel arbitration under this
Agreement and to enforce an arbitration award. Discovery, such as depositions or
document requests, shall be available to the Company and Executive as though the
dispute were pending in California state court. The arbitrator shall have the
ability to rule on pre-hearing motions, as though the matter were in a
California state court, including the ability to rule on a motion for summary
judgment.

               The fees of the arbitrator and any other fees for the
administration of the arbitration that would not normally be incurred if the
action were brought in a court of law (e.g., room rental fees, etc.) shall be
paid by the Company. Fees which would normally be incurred if the action were
brought in a court of law (e.g., filing fees, court reporter fees, etc.) shall
be split evenly between the parties. The arbitrator must provide a written
decision which is subject to limited judicial review consistent with applicable
law. If any part of this arbitration provision is deemed to be unenforceable by
an arbitrator or a court of law, that part may be severed or reformed so as to
make the balance of this arbitration provision enforceable.

        6.6 Waiver. No waiver by a party hereto of a breach or default hereunder
by the other party shall be considered valid unless in writing signed by such
first party, and no such waiver shall be deemed a waiver of any subsequent
breach or default of the same or any other nature.

        6.7 Controlling Nature of Agreement. To the extent any terms of this
Agreement are inconsistent with the terms or provisions of the Company's
Employee Manual or any other personnel policy statements or documents, the terms
of this Agreement shall control. To the extent that any terms and conditions of
Executive's employment are not covered in this Agreement, the terms and
conditions set forth in the Employee Manual or any similar document shall
control such terms.

        6.8 Entire Agreement. This Agreement sets forth the entire agreement
between the parties with respect to the subject matter hereof, and supersedes
any and all prior agreements or understanding between the Company and Executive,
whether written or oral, fully or partially performed relating to any or all
matters covered by and contained or otherwise dealt with in this Agreement.

        6.9 Amendment. No modification, change or amendment of this Agreement or
any of its provisions shall be valid unless in writing and signed by the party
against whom such claimed modification, change or amendment is sought to be
enforced.

                                       13
<PAGE>

        6.10 Authority. The parties each represent and warrant that they have
the power, authority and right to enter into this Agreement and to carry out and
perform the terms, covenants and conditions hereof.

        6.11 Applicable Law. This Agreement, and all of the rights and
obligations of the parties in connection with the employment relationship
established hereby, shall be governed by and construed in accordance with the
substantive laws of the State of California without giving effect to principles
relating to conflicts of law.

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

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

                                            "COMPANY"

                                            LIBERTY LIVEWIRE CORPORATION,
                                            a Delaware corporation

                                            By:    /s/ George C. Platisa
                                               ---------------------------------
                                               Name:
                                               Title:

                                            "EXECUTIVE"

                                                   /s/ William W. Goodmen
                                            ------------------------------------
                                            William W. Goodmen

                                       14<PAGE>
                                                                  EXHIBIT (10.8)

                           ADVANCED BIOTHERAPY, INC.

                 2002 SUBORDINATED CONVERTIBLE PAY-IN-KIND NOTE
                             DUE SEPTEMBER 30, 2004

$                                                        Dated:
 -------------                                                 -----------------
                                                         Los Angeles, California

"NEITHER THIS CONVERTIBLE NOTE NOR ANY SECURITIES INTO WHICH IT IS CONVERTIBLE
HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, OR ANY APPLICABLE
SECURITIES LAW OF ANY JURISDICTION AND IS A "RESTRICTED SECURITY" AS THAT TERM
IS DEFINED IN RULE 144 UNDER THE SECURITIES ACT AND HAS BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF. THIS CONVERTIBLE NOTE AND THE SECURITIES INTO WHICH IT IS
CONVERTIBLE MAY NOT BE TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER SUCH
SECURITIES ACT OR SUCH APPLICABLE SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE
WITH REGARD THERETO, OR (ii) IN THE OPINION OF COUNSEL ACCEPTABLE TO THE MAKER
REGISTRATION UNDER SUCH SECURITIES ACT OR SUCH APPLICABLE SECURITIES LAWS IS NOT
REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER."

FOR VALUE RECEIVED, the undersigned, Advanced Biotherapy, Inc., a Delaware
corporation ("Maker") hereby promises to pay to ___________________ ("Holder")
the principal sum of ___________________ Thousand Dollars ($_________ ),
together with interest at the rate of eleven percent (11%) per annum accrued
from the Funding Date on the unpaid principal balance. "Funding Date" means the
date Maker shall have received from the Holder immediately available funds in
the original principal amount of this Convertible Note. Principal and interest
shall be payable in lawful money of the United States, except as otherwise
provided herein. Payments are to be made to the address of the registered Holder
of this Convertible Note as set forth on the records of the Maker.

This Convertible Note is one of the Convertible Notes (which term, for all
purposes hereof includes the PIK Notes) designated as its 2002 Subordinated
Convertible Pay-In-Kind Notes due September 30, 2004 (the "Convertible Notes"),
limited in aggregate principal amount to US $1,000,000.00, all of like terms and
maturity, except variations necessary to express the issuance date, the
principal amount and holder of each Convertible Note.

Interest is payable semi-annually on June 30 and December 31 (such date an
"Interest Payment Date") of each year at a rate of eleven percent (11%) per
annum commencing the June 30th or December 31st, immediately following the
Funding Date, whichever date comes first, to the holder of record on the date
that is ten (10) business days prior to such Interest Payment Date. Interest on
this Convertible Note will accrue from the most recent date to which interest
has been paid, or if no interest has been paid on the Convertible Note, from the
date of issuance. On each Interest Payment Date, the Maker

<PAGE>

may, at its option and in its sole discretion, in lieu of the payment of
interest in cash on the Convertible Notes, pay interest on all outstanding
Convertible Notes, in whole, or in part, through the issuance of additional
notes ("PIK Notes") in denominations (rounded if necessary to the nearest
dollar) of one dollar ($1.00) and integral multiples thereof, in an aggregate
principal amount equal to the amount of interest that would be payable on such
Convertible Notes, if such interest were paid in cash. On each such Interest
Payment Date that the Maker elects to deliver PIK Notes, the Maker shall issue
and deliver PIK Notes to the Holder entitled to such interest payment or, with
the prior written consent of the Holder and to the extent such consent has not
been revoked as to future delivery, in lieu of delivery of the physical PIK
Notes, shall make a record on its books of the PIK Notes so issued without
delivering physical PIK Notes to the Holders to whom such interest is due. The
outstanding principal balance together with accrued and unpaid interest is due
and payable in cash on September 30, 2004. This Convertible Note may be prepaid,
in whole or in part, at any time, and from time to time, without premium or
penalty. Any payment (in cash or in kind) received on this Convertible Note
shall be applied first to all accrued and unpaid interest and then to the
outstanding principal balance.

Each PIK Note is an additional obligation of the Maker and shall be governed by
and entitled to the benefits of, and shall be subject to the terms of that
Investor Rights Agreement, a copy of which has been presented to Holder. Each
Convertible Note shall rank pari passu with and be subject to the same terms
(including the interest rate from time to time payable thereon) as any other
Convertible Note (except, as the case may be, with respect to the issuance date,
aggregate principal amount) and shall rank pari passu with the Company's
Subordinated Convertible Debt due September 30, 2004 ("2000 Convertible Debt").

1. Conversion. Subject to the terms hereof, the entire principal amount owing
under this Convertible Note, or any portion thereof, is convertible at the
option of Holder ("Conversion Right") at any time after the date hereof prior to
(and including) its maturity so long as Maker has not made a Call (defined
below) by issuing a Call Notice). This Convertible Note is convertible into
fully paid and non-assessable shares of Maker's common stock, $.001 par value
("Common Stock"), at the rate of one (1) share of Common Stock for each
Twenty-Five Cents ($0.25) ("Initial Conversion Price") of principal amount so
converted. Upon conversion, unpaid interest accrued on such principal so
converted shall be paid in cash or, at the option of Holder, paid in additional
shares of stock at the rate of one (1) share of Common Stock for each
Twenty-Five Cents ($0.25) of interest amount so converted. Shares issued upon
the conversion of this Convertible Note shall not be entitled to any dividend
declared prior to the date of such conversion.

Subject to the terms hereof, and subject to the Excluded Sales (defined below),
if at any time prior to December 31, 2003, inclusive, Maker sells Common Stock
at a price less than the Initial Conversion Price or sells rights to acquire
Common Stock at a price less than the Initial Conversion Price and such rights
are then currently exercisable at such lower price, then Holder shall be
entitled to exercise the Conversion Right at such lower

                                       2
<PAGE>

price ("Price Adjustment") rather than the Initial Conversion Price. The
foregoing reduction of the Conversion Price shall not apply to any shares of
Common Stock issued or issuable upon the occurrence of one (1) or more of the
following events (collectively, " Excluded Sales"): (i) upon conversion of
Convertible Notes, (ii) the exercise of options, warrants, and other rights to
acquire Common Stock outstanding as of the date hereof, (iii) the exercise of
options, warrants and other rights to acquire Common Stock granted to directors,
officers, employees of, or consultants to, the Maker from and after the date
hereof, in a manner determined by the Maker's Board of Directors, or (iv) in
connection with any acquisition transaction or to financial institutions or
lessors in connection with commercial credit arrangements or other financings,
or to strategic partners or licensees and the like, which issuances are approved
by the Maker's Board of Directors, provided that the shares of Common Stock
issued or issuable pursuant to the Excluded Sales described in clauses (iii) and
(iv) above shall be cumulatively not more than 4,700,000 shares (as
appropriately adjusted for anti-dilution and any subsequent stock splits, stock
dividends, recapitalizations and the like); or (v) with the consent of the
holders of greater than fifty percent (50%) of the aggregate principal amount
then outstanding under all Convertible Notes; or (vi) with the consent of the
holders of greater than fifty percent (50%) of the aggregate principal amount
then outstanding under all 2000 Convertible Debt.

2. Automatic Conversion. If at any time, and from time to time, while this
Convertible Note is outstanding, the Market Price (defined below) of the Common
Stock is at least three hundred percent (300%) of the Initial Conversion Price
for at least a twenty (20) consecutive trading day period, Maker, upon ten (10)
days' prior written notice ("Call Notice") to Holder, may cause all or a portion
of the outstanding principal balance of this Convertible Note to automatically
convert to Common Stock ("Call") at the conversion price in effect on the date
of the Call Notice given by Maker. The Maker shall then cancel this Convertible
Note, and, in the event that less than the entire principal amount owing is so
converted, the Maker shall promptly issue a new Convertible Note for the
principal balance not so converted, and convertible at the option of the Holder,
on the same terms and conditions as this Convertible Note. The term "Market
Price" shall mean, with respect to a given date, (i) if the Common Stock is
traded on the over-the-counter market and not in the NASDAQ National Market
System or on any national securities exchange, the average mean between the per
share closing bid and asked prices of the Common Stock on the trading date in
question, as reported by NASDAQ or an equivalent generally accepted reporting
service, or (ii) if the Common Stock is traded in the NASDAQ National Market
System or on a national securities exchange, the per share closing price of the
Common Stock in the NASDAQ National Market System or on the principal stock
exchange on which it is listed, as the case may be; provided, however, if such
Common Stock is traded both on a national stock exchange and the NASDAQ National
Market System, the closing prices on the principal stock exchange shall be used.
The closing price referred to in clause (ii) above shall be the last reported
sale price or, in case no such reported sale takes place on such day, the
average of the reported closing bid and asked prices, in either case in the
NASDAQ National Market system or on the national securities exchange on which
the Common Stock is then listed.

                                       3
<PAGE>

3. Mechanics of Conversion. In order to exercise the Conversion Right granted
herein, the Holder shall surrender this Convertible Note to the Maker, with the
form for conversion hereinafter provided fully executed, whereupon the Maker
shall promptly issue to the Holder one or more share certificates of the Maker
representing the shares of Common Stock into which this Convertible Note is to
be convertible. The Maker shall then cancel this Convertible Note, and, in the
event that less than the entire principal amount owing is so converted, the
Maker shall promptly issue a new Convertible Note for the principal balance not
so converted, and convertible at the option of the Holder, on the same terms and
conditions as this Convertible Note.

4. Adjustments to Conversion Price. In the event of any stock split, stock
dividend, or similar distribution or in respect of the Common Stock occurring
after the date hereof (collectively "Splits"), the number of Common Stock shares
issuable upon conversion hereof shall be appropriately increased and the
conversion price stated above shall be appropriately adjusted. In the event of
any reverse stock split or similar subdivision occurring with respect to the
Common Stock after the date hereof (collectively "Reverse Splits"), the number
of shares of Common Stock issuable upon conversion hereof shall be approximately
decreased and the conversion price stated above shall be appropriated adjusted.
In the event of any Split or Reverse Split, the Common Stock price referred to
in the provisions relating to Price Adjustment and Excluded Sales shall be
appropriately adjusted consistent with the provisions immediately preceding this
sentence in this paragraph. In the event of any merger, consolidation,
reorganization, reclassification or similar event involving the Maker or the
Common Stock (other than a merger in which the Maker is the surviving entity),
then the type and amount of securities or other property that Holder shall be
entitled to receive upon conversion hereof shall be appropriately adjusted based
on the type and amount of securities or other property received by the holders
of the Common Stock in such transaction.

5. Subordination. This Convertible Note and the indebtedness evidenced hereby,
including principal and interest, shall at all times remain junior and
subordinate to Superior Indebtedness. As used herein, the term "Superior
Indebtedness" shall be and mean any item of indebtedness which shall be
designated as Superior Indebtedness by the Maker (i) in accordance with the 2000
Convertible Debt, or (ii) upon consent of the holders of greater than fifty
percent (50%) of the aggregate outstanding principal amount of all Convertible
Notes.

     In the event of any liquidation, dissolution or winding up of Maker or of
any execution sale, receivership, insolvency, bankruptcy, liquidation,
readjustment, reorganization, or other civil proceeding relative to maker or its
property, all principal and interest owing on all Superior Indebtedness
(including interest accruing after such event) and all costs, fees and expenses
(including attorneys' fees related to the collection of Superior Indebtedness)
shall first be paid in full before any payment is made upon the indebtedness
evidenced by this Convertible Note; and in any such any payment or distribution
of any kind or character, whether in cash, property or securities (other than in
securities or other evidences of indebtedness, the payment of which is
subordinated to the payment of

                                       4
<PAGE>

all Superior Indebtedness which may at the time be outstanding including without
limitation dividends payable on Common Stock into which this Convertible Note
may be converted), which shall be made upon or in respect of this Convertible
Note shall be held in trust and paid over to the holders of such Superior
Indebtedness, in accordance with their respective rights, for the application
and payment thereof unless and until such Superior Indebtedness shall have been
paid or satisfied in full. Further, in the event that any portion of the
indebtedness evidenced hereby shall become due and payable before its express
maturity by reason or acceleration pursuant hereto (under circumstances when the
provisions of the immediately preceding sentence or the immediately succeeding
sentence shall not be applicable), all principal and interest owing on all
Superior Indebtedness (including interest accruing after such event) and all
costs, fees and expenses (including attorneys' fees relating to collection of
Superior Indebtedness) shall be paid in full before any payment is made upon the
indebtedness evidenced hereby. During the continuance of any default in the
payment of either principal or interest on any Superior Indebtedness, no payment
of principal or interest shall be made hereon if either (i) notice of such
default in writing has been given to the Maker by the holder or holders of such
Superior Indebtedness or (ii) judicial proceedings shall be commenced or pending
in respect of such default. Maker forthwith upon receipt of any notice received
by it pursuant to the immediately preceding sentence shall send a copy thereof
to Holder.

        Holder, by acceptance hereof, agrees to accept no payment by Maker on
account of the indebtedness of evidenced hereby in violation of the provisions
of the immediately preceding paragraph and further agrees that any such payment
so accepted may be recovered by the holders of Superior Indebtedness and such
payments shall be held in trust and immediately paid over to the holders of the
Superior Indebtedness. Holder undertakes and agrees for the benefit of each
holder of Superior Indebtedness to execute, verify, deliver and file any proofs
of claims, consents, assignments or other instruments which any holder of
Superior Indebtedness may at any time require in order to confirm, prove or
realize upon any rights or claims pertaining to this Convertible Note and to
effectuate the full benefit of the subordination contained herein; and upon
failure of the Holder to do so, any holder of Superior Indebtedness shall be
deemed to be irrevocably appointed the agent and attorney-in-fact of Holder to
execute, verify, deliver and file any such proofs of claims, consents,
assignments or other instruments.

        The foregoing subordination provisions are for the benefit of the
holders of Superior Indebtedness and are solely for the purpose of defining the
relative rights of the holders of Superior Indebtedness on the one hand and
Holder on the other hand, and nothing herein shall impair, as between Maker and
Holder, the obligation of Maker to pay the principal and interest on this
Convertible Note in accordance with the terms hereof, which is unconditional and
absolute, nor shall anything herein prevent Holder from exercising all remedies
otherwise permitted by applicable law or hereunder upon default hereunder,
subject to the holders of Superior Indebtedness as herein provided for.

                                       5
<PAGE>

        Holder, by acceptance hereof, acknowledges and agrees that the
subordination provisions set forth herein are, and are intended to be, an
inducement and a consideration to each holder of any Superior Indebtedness,
whether such Superior Indebtedness was created or acquired before or after the
issuance of this Convertible Note, to acquire and continue to hold, or to
continue to hold, such Superior Indebtedness, and such holder of Superior
Indebtedness shall be deemed conclusively to have relied upon such subordination
provisions in acquiring and continuing to hold, or in continuing to hold, such
Superior Indebtedness. No right of any present or future holder of any Superior
Indebtedness of Maker to enforce subordination as herein provided shall at any
time in any way be prejudiced or impaired by any act or failure to act on the
part of Maker or by any act or failure to act by any such holder, or by any
noncompliance by Maker with the terms, provisions and covenants of this
Convertible Note, regardless of any knowledgeable thereof any such holder may
have or be otherwise charged with.

6. Events of Default. The Holders of greater than fifty percent (50%) of the
then aggregate outstanding principal amount of all Convertible Notes, may, by
written notice to Maker, declare all or any part of the unpaid principal amount
of the Convertible Notes then outstanding to be forthwith due and payable upon
the occurrence of any one of the following events affecting the Maker ("Events
of Default"), and thereupon such unpaid principal balance or part thereof (as
applicable) together with interest accrued thereon shall become immediately due
and payable without further demand or notice:

        (i) Failure to make any payment when due and the failure to cure such
default within twenty (20) days after the receipt of written notice of such
default;

        (ii) Failure to honor Conversion Rights properly exercised in accordance
with the Convertible Notes and failure to cure such default within thirty (30)
days after receipt of written notice of such default;

        (iii) Maker's consent to (x) commencement of any proceeding against
Maker under any bankruptcy or insolvency law or (y) a general assignment for the
benefit of Maker's creditors or (z) the appointment of a receiver of any of
Maker's property; or

        (iv) Commencement by a third party of any proceeding against Maker under
any bankruptcy or insolvency law or appointment of a receiver for any part of
Maker's property without Maker's consent, if such proceeding has not been
discharged or appointment rescinded within one hundred twenty (120) days.

        Notwithstanding anything to the contrary herein, no Event of Default
shall occur or shall be deemed to occur, unless and until an Event of Default
(as that term is defined in the 2000 Convertible Debt) shall have occurred in
accordance with the terms and conditions of the 2000 Convertible Debt.

        No waiver by Holder of any payment or other right under this Convertible
Note shall operate as a waiver of any other payment or right, and no waiver
shall be valid

                                       6
<PAGE>

unless and until in writing and signed either by (i) the Holder or (ii) the
holders of more than fifty percent (50%) of the aggregate outstanding principal
amount of all Convertible Notes. This Convertible Note may not be modified or
terminated orally but only by agreement or discharge in writing and signed by
either Holder or Maker of this Convertible Note, or by the holders of more than
fifty percent (50%) of the then aggregate principal amount of all Convertible
Notes. Except as set forth herein, the Holder of this Convertible Note shall not
have the right to sell, assign or otherwise transfer this Convertible Note or,
prior to registration thereof, the underlying Common Stock, without the prior
written consent of Maker in its sole discretion. Nothing contained in this
Convertible Note shall be deemed to prohibit or otherwise restrict any voluntary
inter vivos transfer by a Holder who is a natural person of all or a portion (in
aggregate principal amount not less than Ten Thousand Dollars ($10,000)) of this
Convertible Note to an individual retirement account or in trust for the primary
benefit of any or all of such Holder, his or her spouse or the respective
parents, siblings, children or grandchildren (whether by blood or adoption)
(collectively "Family Members") or to a family partnership, limited liability
Maker or corporation, in which only such Holder, his or her spouse or their
Family Members are the partners, members or shareholders, as applicable
(collectively, "Estate Planning Entity"), provided that any such interest so
transferred to an Estate Planning Entity shall remain subject to the provisions
of this Convertible Note and the transferee shall comply with all terms herein.
This Convertible Note shall inure to the benefit of the parties and their
respective permitted successors, assigns, heirs and legal representatives.

7. Miscellaneous.

        7.1.   THIS CONVERTIBLE NOTE IS NOT NEGOTIABLE.

        7.2. Attorneys' Fees. In the event Holder shall incur costs, including
attorneys' fees, in enforcement and collection of this Convertible Note, whether
or not litigation is commenced, the prevailing party shall be entitled to
reasonable attorneys' fees and costs incurred in connection therewith. In the
event the Maker elects to exercise its rights to partially prepay or partially
Call the Convertible Notes, Maker shall do so among the holders pro rata in
proportion to the outstanding aggregate principal amounts thereof held by the
holders.

        7.3. Notices. All notices to be given under this Convertible Note shall
be in writing and shall be given either personally or by reputable overnight
courier service, or by facsimile with evidence of receipt, or by regular
first-class mail, or certified mail return receipt requested, addressed to the
Maker at the address shown below, or to the Holder at the address shown in the
Maker's records, or at any other address designated in writing by one party to
the Maker. All notices shall be deemed to have been given upon delivery in the
case of notices personally delivered, or at the expiration of one (1) business
day following delivery to the overnight courier service, or two (2) business
days following the deposit thereof in the United States mail, with postage
prepaid or on the first business day of receipt in the case of notices sent by
fax.

                                       7
<PAGE>

        7.4. Amendment; Successors and Assigns. This Convertible Note may not be
modified or amended, nor may any rights hereunder be waived, except in a writing
signed by the party against whom enforcement of the modification, amendment or
waiver. This Convertible Note shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and assigns.

        7.5. Governing Law. This Convertible Note shall be governed by, and
shall be construed and enforced in accordance with the internal laws of the
State of California, without regard to conflicts of laws principles.

IN WITNESS WHEREOF, the Maker has executed this Convertible Note as of the date
and at the place first written above.

                                   MAKER:

                                   Advanced Biotherapy, Inc.
                                   a Delaware corporation

                                   By:
                                       ------------------------------------
                                       Edmond F. Buccellato, President and
                                       Chief Executive Officer

                                   Address:   Advanced Biotherapy Concepts, Inc.
                                              6355 Topanga Canyon Boulevard
                                              Suite 510
                                              Woodland Hills, CA  91367
                                   Facsimile: 818-883-3353

                                       8
<PAGE>

                               ELECTION TO CONVERT

The undersigned Holder of the within Convertible Note hereby surrenders
$______________ of the aggregate principal amount of such instrument, and
$______________ of the aggregate accrued interest thereon, for conversion into
shares of Common Stock, $0.001 par value, of Advanced Biotherapy, Inc., in
accordance with the terms and conditions set forth in the Convertible Note
above, and hereby requests that such shares issuable upon such conversion be
issued to the undersigned.

                                     HOLDER

                                     ------------------------------------------
                                     Signature - Same as Registered Holder

                                     ------------------------------------------
                                     Print or Type Name

                                       9

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