Document:

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                                                                    EXHIBIT 10.6

                             EMPLOYMENT AGREEMENT

     This Employment Agreement (this "AGREEMENT") is made and entered into as
of the 26th day of August, 1998, by and between Future Media Productions,
Inc., a California corporation (the "COMPANY"), and David Moss ("EXECUTIVE").

1.   ENGAGEMENT AND DUTIES.

     (a)  Upon the terms and subject to the conditions set forth in this
Agreement, the Company hereby engages and employs Executive as an officer of the
Company, with the title and designation "Executive Vice President - Operations."
Executive hereby accepts such engagement and employment.

     (b)  During the term of this Agreement, Executive, as Vice President -
Operations of the Company, shall report to the President, Chief Executive
Officer and/or Board. Subject to the direction and control of the President,
Chief Executive Officer and/or Board, Executive shall have active control of the
day to day operations of the Company and shall perform all duties and enjoy all
powers commonly incident to the position Vice President - Operations and
otherwise as may be delegated to him from time to time by the President, Chief
Executive Officer and/or Board.

     (c)  Executive agrees to devote his full-time business time, energy and
efforts to the business of the Company and will use his best efforts and
abilities faithfully and diligently to promote the Company's business interests.

     (d)  For so long as Executive is employed by the Company or is receiving
severance under Section 5(a) or Section 5(c) of this Agreement, Executive shall
not, directly or indirectly, as owner, partner, joint venturer, shareholder,
employee, broker, agent, principal, trustee, corporate officer, director,
licensor, or in any capacity whatsoever (i) engage in, become financially
interested in, be employed by, render any consultation or business advice with
respect to, or have any connection with, any business engaged in the
development, design, manufacture, sale, marketing, utilization or exploitation
of any products or services which are designed for the same purpose as, are
similar to, or are otherwise competitive with, current, proposed or anticipated
products or services of the Company, in any geographic area where, prior to or
at the time of the termination of his employment, the business of the Company
was being conducted or was proposed to be conducted in any manner whatsoever;
provided, however, that the Executive may own any securities of any corporation
which is engaged in such business and is publicly owned and traded but in an
amount not to exceed at any one time five percent (5%) of any class of stock or
securities of such corporation, or (ii) prepare or agree to undertake any action
or conduct not permitted to be engaged in by Executive pursuant to the preceding
clause (i).  Notwithstanding the foregoing, the Company expressly acknowledges
that Executive may:

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          (i)   make and manage personal business investments of Executive's
choice without consulting the Board;

          (ii)  serve in any capacity with any civic, educational, charitable or
trade organization; and

          (iii) serve as a member of the board of directors of other companies
or businesses with the approval of the Board, which approval will not be
unreasonably withheld.

2.   DEFINITIONS.

     For the purposes of this Agreement, the following terms shall have the
meanings set forth below:

     "BOARD" shall mean the Board of Directors of the Company, not including
Executive.

     "COMPENSATION COMMITTEE" shall mean the members of the Board who have been
appointed by the Board to determine compensation issues relating to the Company.

     "EMPLOYMENT COMMENCEMENT DATE" shall mean August 26, 1998.

     "EMPLOYMENT TERM" shall mean August 26, 1998 through August 26, 2003;
provided, the term shall be extended through August 26, 2006 upon the mutual
written consent of the Company and Executive and if so extended, "Employment
Term" shall mean August 26, 1998 through August 26, 2006.

     "FOR CAUSE" shall mean, in the context of a basis for termination of
Executive's employment with the Company, that:

          (a)  Executive materially breaches any obligation, duty or agreement
under this Agreement, which breach is not cured or corrected within 30 days of
written notice thereof from the Company (except for breaches of Sections 1(d), 6
or 7 of this Agreement, which cannot be cured and for which the Executive shall
have no opportunity to cure);

          (b)  Executive is grossly negligent in the course of providing
services to the Company, or commits any act of personal dishonesty, fraud or
breach of fiduciary duty or trust against the Company;

          (c)  Executive is convicted of, or pleads guilty or nolo contendere
with respect to, theft, fraud or felony under federal or applicable state law;

          (d)  Executive commits any act or acts of personal conduct that,
following due investigation and determination by the Board of probable cause,
gives rise to a likelihood of liability under federal or applicable state law
for discrimination or sexual or other forms of harassment or other similar
liabilities with respect to subordinate employees; or

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          (e)  Executive commits continued and repeated material violations of
specific directions of the Board, which directions are consistent with past
practices of the Board with respect to governance matters, with this Agreement
and with Executive's position, or continued and repeated substantive failure to
perform duties assigned by or pursuant to this Agreement; provided that no
termination shall be deemed For Cause under this subsection (e) unless Executive
first receives written notice from the Company advising him of the specific acts
or omissions alleged to constitute violations of written directions or a
material failure to perform his duties, and such violations or material failure
continue after he shall have had a reasonable opportunity to correct the acts or
omissions so complained of, which opportunity shall in no event be less than 30
days.

     "PERSON" shall mean an individual or a partnership, corporation, trust,
association, limited liability company, governmental authority or other entity.

3.   COMPENSATION; EXECUTIVE BENEFIT PLANS.

     (a)  BASE SALARY.  The Company shall pay to Executive a base salary (the
"BASE SALARY") at an annual rate of $395,000 during the Employment Term.  The
Base Salary shall be payable in installments throughout the year in the same
manner and at the same times the Company pays base salaries to other executive
officers of the Company.  The Base Salary shall be automatically increased by 6%
at each anniversary of the date of this agreement, subject to further upward
adjustment in the sole discretion of the Compensation Committee.

     (b)  BONUSES AND STOCK OPTIONS.  Executive may be paid a bonus or bonuses
in the sole discretion of the Compensation Committee of the Board.  Also, it
shall be within the sole discretion of the Compensation Committee of the Board
whether to grant to Executive an option or options to purchase shares of Common
Stock of the Company under any Company stock option plans and, if granted, the
number of shares subject to such option(s) and the terms and conditions of such
option(s).

     (c)  REIMBURSEMENT.  Executive shall be entitled to reimbursement from the
Company for the reasonable costs and expenses that he incurs in connection with
the performance of his duties and obligations under this Agreement in a manner
consistent with the Company's practices and policies for reimbursements for
executive officers.

     (d)  ADDITIONAL BENEFITS.  During the Term of this Agreement and on a basis
comparable to the current practice of the Company, the Company shall provide
Executive with, or reimburse Executive for, a cellular telephone and home office
equipment for his use in performing his employment duties and obligations under
this Agreement.  In addition, during the Term of this Agreement, the Company
shall pay to Executive an automobile allowance of $1,200 per month.

     (e)  INSURANCE.  During the term of this Agreement, the Company shall pay
100% of the premiums on term life insurance having a face value payable on death
of Executive of no less than $1 million, net of all loans or encumbrances, to a
beneficiary designated by the Executive.

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     (f)  GROUP BENEFIT PLANS.  The Company shall provide and pay for 100% of
the cost of group health and dental plans for Executive and his dependents and
Executive shall be eligible to participate in group life, disability, retirement
and pension benefit plans the Company may provide to its employees from time to
time, subject to the terms, conditions and limitations contained in the
applicable plan documents and insurance policies; PROVIDED, HOWEVER, Executive's
group health, dental, life, disability, retirement and pensions benefits shall
in no case be less favorable than they are as of the Employment Commencement
Date.

     (g)  VACATION.  Executive shall be entitled to four weeks of paid vacation
each year during the term of this Agreement.  Any vacation time shall be
scheduled to minimize interference with the exercise of Executive's duties under
this Agreement.

     (h)  WITHHOLDING.  The Company may deduct from any compensation payable to
Executive the minimum amounts sufficient to cover applicable federal, state
and/or local income tax withholding, old-age and survivors' and other social
security payments, state disability and other insurance premiums and payments.

4.   TERMINATION OF EMPLOYMENT.

     Executive's employment pursuant to this Agreement shall commence on the
Employment Commencement Date and shall terminate upon the earlier of (i) the
expiration of the Employment Term or (ii) on the earliest to occur of the
following:

     (a)  upon the death of Executive;

     (b)  upon delivery to Executive of written notice of termination by the
Company if Executive shall suffer a physical or mental disability which renders
Executive unable to perform his duties and obligations under this Agreement for
at least 120 days, whether or not consecutive, in any 12-month period;

     (c)  upon delivery to Executive of written notice of termination by the
Company For Cause; or

     (d)  upon delivery to Executive of written notice of termination by the
Company Other Than For Cause.

5.   SEVERANCE COMPENSATION.

     (a)  If Executive's employment is terminated pursuant to Section 4(a)
(death), the Company shall pay to the Executive or his estate his full Base
Salary through the end of the month of Executive's death, and Executive or his
estate shall be entitled to a prorated share of any bonus or benefits as
provided under Section 3 hereof for the calendar year during which his death
occurred.  If Executive's employment is terminated pursuant to Section 4(b)
(disability), Executive shall be entitled to continue to receive 50% of his then
current Base Salary from the Company in accordance with Section 3(a) of this
Agreement, payable at the same time and in the same manner

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as if Executive's employment had not terminated, through the later of (i) the
end of the Employment Term or (ii) that date which is one year after the date
Executive's employment was terminated.  Any disability benefits that
Executive does receive shall be offset against any amounts payable to
Executive pursuant to this Section.  Executive agrees to cooperate fully with
the Company and any disability insurance carrier with respect to any claim
for disability benefits. In addition to the foregoing, if Executive's
employment is terminated due to death or disability, the Company shall
continue to provide  group health and dental insurance to Executive and his
immediate family, at the same levels as such insurance was provided prior to
termination, through the end of the Employment Term.

     (b)  If Executive's employment is terminated pursuant to Section 4(c) (by
the Company For Cause), Executive's Base Salary and all benefits under Section 3
shall cease as of the date of termination, and Executive shall not be entitled
to any bonus for the calendar year during which his employment shall be
terminated or at any time thereafter.  In the event of termination of
Executive's employment pursuant to Section 4(c) (by the Company For Cause), and
subject to applicable law and regulations, the Company shall be entitled to
offset against any payments due Executive the loss and damage, if any, which
shall have been suffered by the Company as a result of the acts or omissions of
Executive giving rise to termination under Section 4(c).  The foregoing shall
not be construed to limit any cause of action, claim or other rights which the
Company may have against Executive in connection with such acts or omissions.

     (c)  If Executive's employment is terminated pursuant to Section 4(d) (by
the Company Other Than For Cause) prior to the end of the Employment Term,
Executive shall be entitled to receive a lump sum of $1,000,000 payable in full
no later than 30 days after the date of termination.  In addition, Executive
shall continue to receive his Base Salary (including the automatic increases) in
accordance with Section 3(a) of this Agreement through the end of the Employment
Term payable at the same time and in the same manner as if Executive's
employment had not terminated.  Executive shall have no duty to seek other
employment upon such termination.  Executive acknowledges that the Company has
the right to terminate Executive's employment Other Than For Cause and that such
termination shall not be a breach of this Agreement or any other express or
implied agreement between the Company and Executive.  Accordingly, in the event
of such termination, Executive shall be entitled only to the compensation and
benefits specifically provided for in this Agreement in the event of such
termination, and shall not have any other rights to any compensation or damages
from the Company for breach of contract.

6.   COVENANT NOT TO SOLICIT.

     (a)  During the period Executive is employed by the Company and through the
first anniversary of the date Executive's employment with the Company is
terminated, Executive will not directly or indirectly, either alone or by action
in concert with others: (i) induce any employee of the Company to engage in any
activity in which Executive is prohibited from engaging by Section 1(d) of this
Agreement or to terminate his or her employment with the Company; or (ii) employ
or offer employment or induce any Person to employ or offer employment to anyone
who is or was within the 12 months prior to the date of the proscribed action
employed by the

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Company; or (iii) induce or attempt to induce any customer, supplier, licensee,
licensor or other business relationship of the Company to discontinue or reduce
its business with the Company, or in any way interfere with the relationship
between any such customer, supplier, licensee or business relationship and the
Company (provided, this prohibition shall not prevent Executive from doing
business with such supplier, licensee or other business relationship of the
Company in a manner which is not adverse to the Company); or (iv) solicit or
accept any business whatsoever from any of the customers with which the Company
did business during the Executive's engagement or employment by the Company. All
of the provisions of this Section 6(a) shall continue to apply through the first
anniversary of the termination of Executive's employment with the Company (the
"POST-EMPLOYMENT PERIOD"), except that during the Post-Employment Period,
Executive may work with or for, or solicit or accept business from suppliers or
licensees of the Company so long as such business activity by the Executive is
not detrimental to the Company and such actions do not otherwise interfere with
Executive's other obligations under this Agreement.

     (b)  Executive acknowledges that the Company conducts business on a world-
wide basis, that its sales and marketing prospects are for continued expansion
into world markets and that, therefore, the territorial and time limitations set
forth in Section 1(d) and in this Section 6 are reasonable and properly required
for the adequate protection of the business of the Company. In the event any
such territorial or time limitation is deemed to be unreasonable by a court of
competent jurisdiction, Executive agrees to the reduction of the territorial or
time limitation to the area or period which such court deems reasonable.

     (c)  If any portion of the restrictions set forth in Section 1(d) and in
this Section 6 should, for any reason whatsoever, be declared invalid by a court
of competent jurisdiction, the validity or enforceability of the remainder of
such restrictions shall not thereby be adversely affected.

     (d)  The existence of any claim or cause of action by Executive against the
Company shall not constitute a defense to the enforcement by the Company of the
restrictive covenants set forth in Section 1(d) and in this Section 6, but such
claim or cause of action shall be litigated separately.

7.   CONFIDENTIALITY.

     Executive will not at any time (whether during or after his employment with
the Company) disclose or use for his own benefit or purposes or the benefit or
purposes of any other Person, other than the Company, any trade secrets,
information, data, or other confidential information relating to customers,
development programs, costs, marketing, trading, investment, sales activities,
promotion, credit and financial data, financial methods, plans, or the business
and affairs of the Company generally.  Executive agrees that upon termination
for any reason of his employment by the Company, he will immediately return to
the Company all memoranda, books, papers, plans, information, letters and other
data, and all copies thereof or therefrom, in any way relating to the business
of the Company;  provided, however, that Executive may retain such materials as
in the reasonable discretion of the Board are required to fulfill his duties, if

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applicable, as a director of the Company (retention being permitted by Executive
until such time as the Board requests the return of such materials).  Executive
further agrees that he will not retain or use at any time any trade name,
trademark or other proprietary business designation used or owned in connection
with the business of the Company.

8.   COPYRIGHT AND TRADEMARKS.

     (a)  All right, title and interest, of every kind whatsoever, in the United
States and throughout the world, in (i) any work, including the copyright
thereof (for the full terms and extensions thereof in every jurisdiction),
created by the Executive at any time during the term of this Agreement and all
material embodiments of the work subject to such rights; and (ii) all
inventions, ideas, discoveries, designs and improvements, patentable or not,
made or conceived by the Executive at any time during the term of this
Agreement, shall be and remain the sole property of the Company without payment
of any further consideration to the Executive other than as set forth herein,
and each such work shall, for purposes of United States copyright law, be deemed
created by the Executive pursuant to his duties under this Agreement and within
the scope of his employment and shall be deemed a work made for hire; and
Executive agrees to assign, at the Company's expense, and the Executive does
hereby assign, all of his right, title and interest in and to all such works,
copyrights, materials, inventions, ideas, discoveries, designs and improvements,
patentable or not, and any copyrights, letters patent, trademarks, trade
secrets, and similar rights, and the applications therefor, which may exist or
be issued with respect thereto. For the purposes of this Section 8, "WORKS"
shall include all materials created during the term of this Agreement, whether
or not ever used by or submitted to the Company, including, without limitation,
any work which may be the subject matter of a copyright under the United States
copyright law. In addition to its other rights, the Company may copyright any
such work in its name in the United States in accordance with the requirements
of the United States copyright law and the Universal Copyright Convention and
any other convention or treaty to which the United States is or may become a
party. In accordance with California Labor Code Sections 2870 and 2872, the
provisions of this Section 8(a) shall not apply to any works that Executive
developed entirely on his own time without using the Company's equipment,
supplies, facilities or proprietary information, except for those works that
either: (i) relate at the time of conception or reduction to practice of the
work to the Company's business, or actual or demonstrably anticipated research
or development of the Company; or (2) result from any work performed by
Executive for the Company.

     (b)  Whenever the Company shall so request, whether during or after the
term of this Agreement, the Executive shall execute, acknowledge and deliver all
applications, assignments or other instruments; make or cause to be made all
rightful oaths; testify in all legal proceedings; communicate all known facts
which relate to such works, copyrights, inventions, ideas, discoveries, designs
and improvements; perform all lawful acts and otherwise render all such
assistance as the Company may deem necessary to apply for, obtain, register,
enforce and maintain any copyrights, letters patent and trademark registrations
of the United States or any foreign jurisdiction or under the Universal
Copyright Convention (or any other convention or treaty to which the United
States is or may become a party), or otherwise to protect the Company's
interests therein, including any which the Company shall deem necessary in

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connection with any proceeding or litigation involving the same.  The Company
shall reimburse the Executive for all reasonable out-of-pocket costs incurred by
the Executive in testifying at the Company's request or in rendering any other
assistance requested by the Company pursuant to this Section 8.  All
registration and filing fees and similar expenses shall be paid by the Company.

9.   SPECIFIC PERFORMANCE.

     Executive acknowledges and agrees that the Company's remedies at law for a
breach or threatened breach of any of the provisions of Sections 1(d), 6 or 7
would be inadequate and, in recognition of this fact, Executive agrees that, in
the event of such a breach or threatened breach, in addition to any remedies at
law, the Company shall be entitled to obtain equitable relief in the form of
specific performance, temporary restraining order, temporary or permanent
injunction or any other equitable remedy which may then be available.  In
addition, the Executive recognizes that the services to be rendered by him under
this Agreement are of a special, unique, unusual, extraordinary and intellectual
character involving skill of the highest order and giving them peculiar value,
the loss of which cannot be adequately compensated in damages.  Consequently, in
the event of a breach of this Agreement by the Executive, the Company shall be
entitled to injunctive relief or any other legal or equitable remedies.  The
Executive agrees that the Company also may recover by appropriate action the
amount of the actual damage caused the Company by any failure, refusal or
neglect of the Executive to perform his agreements, representations and
warranties contained in this Agreement.  The remedies provided in this Agreement
shall be deemed cumulative and the exercise of one shall not preclude the
exercise of any other remedy at law or in equity for the same event or any other
event.

10.  RESOLUTION OF DISPUTES.

     (a)  Except as provided in subsection (c) below, any controversy or claim
between or among the parties, relating to Executive's employment with the
Company, including but not limited to those arising out of or relating to this
Agreement or any agreements or instruments relating hereto or delivered in
connection herewith and any claim based on or arising from an alleged tort,
shall at the request of any party be determined by arbitration.  The arbitration
shall be conducted in Los Angeles, California, in accordance with the United
States Arbitration Act (Title 9 of the United States Code), notwithstanding any
choice of law provision in this Agreement, and under the National Rules for the
Resolution of Employment Disputes of the American Arbitration Association
("AAA").  The parties shall have the right to review and approve a panel of
prospective arbitrators supplied by AAA, but the arbitration shall be conducted
by a single arbitrator selected from the approved panel by AAA or by stipulation
of the parties.  The arbitrator shall give effect to statutes of limitation in
determining any claim.  Any controversy concerning whether an issue is
arbitrable shall be determined by the arbitrator.  The arbitrator shall be
entitled to order specific performance of the obligations imposed by this
Agreement. Judgment upon the arbitration award may be entered in any court
having jurisdiction.

     (b)  All decisions of the arbitrator shall be final, conclusive and binding
on all parties and shall not be subject to judicial review.  All costs of the
arbitration shall be borne by the party which is not the Prevailing Party (as
defined in Section 11(h) of this Agreement). If required, each

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party shall advance 50% of any costs of the arbitration required to be advanced,
subject to the right of the non-Prevailing Party to reimbursement.

     (c)  Subsection (a) above does not prohibit a party from seeking and
obtaining injunctive relief from a court of competent jurisdiction pending the
outcome of arbitration. A party bringing an action for injunctive relief shall
not be deemed to have waived its right to demand arbitration of all disputes.

     (d)  If Executive resigns, Executive agrees that he will not assert that
the Company breached this Agreement unless prior to such resignation Executive
provides written notice to the Chairman of the Company describing the alleged
breach and the Company does not cure, or take appropriate steps to cure, such
breach within 30 days of receipt of such notice.

11.  MISCELLANEOUS.

     (a)  NOTICES.  All notices, requests, demands and other communications
(collectively, "NOTICES") given pursuant to this Agreement shall be in writing,
and shall be delivered by personal service, courier, facsimile transmission or
by United States first class, registered or certified mail, addressed to the
following addresses:

     (i)  If to the Company, to:

          Future Media Productions, Inc.
          25136 Anza Drive
          Valencia, California 91355
          Attn: President

     (ii) If to Executive, to:

          Attn: David Moss
          Future Media Productions, Inc.
          25136 Anza Drive
          Valencia, California 91355

Any Notice, other than a Notice sent by registered or certified mail, shall be
effective when received; a Notice sent by registered or certified mail, postage
prepaid return receipt requested, shall be effective on the earlier of when
received or the third day following deposit in the United States mails (or on
the seventh day if sent to or from an address outside the United States).  Any
party may from time to time change its address for further Notices hereunder by
giving notice to the other party in the manner prescribed in this Section.

     (b)  ENTIRE AGREEMENT.  This Agreement contains the sole and entire
agreement and understanding of the parties with respect to the entire subject
matter hereof, and any and all prior discussions, negotiations, commitments and
understandings, whether oral, written or implied, related to the subject matter
hereof are hereby extinguished and superseded.  No representations,

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oral or otherwise, express or implied, other than those contained in this
Agreement have been relied upon by either party to this Agreement.

     (c)  SEVERABILITY.  In the event that any provision or portion of this
Agreement shall be determined to be invalid or unenforceable for any reason, in
whole or in part, the remaining provisions of this Agreement shall be unaffected
thereby and shall remain in full force and effect to the fullest extent
permitted by law.

     (d)  GOVERNING LAW.  This Agreement has been made and entered into in the
State of California and shall be construed in accordance with the laws of the
State of California.

     (e)  CAPTIONS.  The various captions of this Agreement are for reference
only and shall not be considered or referred to in resolving questions of
interpretation of this Agreement.

     (f)  COUNTERPARTS.  This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument.

     (g)  BUSINESS DAY.  If the last day permissible for delivery of any notice
under any provision of this Agreement, or for the performance of any obligation
under this Agreement, shall be other than a business day, such last day for such
notice or performance shall be extended to the next following business day
(provided, however, under no circumstances shall this provision be construed to
extend the date of termination of this Agreement).

     (h)  ATTORNEYS' FEES.  If any action, proceeding or arbitration is brought
to enforce or interpret any provision of this Agreement, the Prevailing Party
shall be entitled to recover as an element of its costs, and not its damages,
its reasonable attorneys' fees, costs and expenses.  The "PREVAILING PARTY" is
the party who would have been entitled to recover its costs under the California
Code of Civil Procedure had the action been maintained in the Superior Court of
California regardless of whether there is final judgment.  A party not entitled
to recover its costs may not recover attorneys' fees.  No sum for attorneys'
fees shall be counted in calculating the amount of a judgment for purposes of
determining whether a party is entitled to recover its costs or attorneys' fees.

     (i)  ADVICE FROM INDEPENDENT COUNSEL.  The parties hereto understand that
this Agreement is legally binding and may affect such party's rights.  Each
party represents to the other that it has received legal advice from counsel of
its choice regarding the meaning and legal significance of this Agreement.

     (j)  INTERPRETATION.  Should any provision of this Agreement require
interpretation, it is agreed that any court or arbitrator interpreting or
construing the same shall not apply a presumption that the terms hereof shall be
more strictly construed against any Person by reason of the rule of construction
that a document is to be construed more strictly against the Person who itself
or through its agent prepared the same, it being agreed that all Parties have
participated in the preparation of this Agreement.

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     (k)  SURVIVAL.  The termination of the Executive's employment hereunder
shall not affect the enforceability of Sections 1(d), 6, 7 and 8.

     (l)  WAIVER OF JURY TRIAL.  IF NOTWITHSTANDING THE AGREEMENT THAT ALL
DISPUTES BE SUBMITTED TO BINDING ARBITRATION, A DISPUTE IS SUBMITTED TO A COURT,
EACH PARTY HERETO WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY DISPUTE IN
CONNECTION WITH OR RELATING TO THIS AGREEMENT, ANY RELATED AGREEMENT OR ANY
MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN, AND AGREE TO TAKE ANY AND
ALL ACTION NECESSARY OR APPROPRIATE TO EFFECT SUCH WAIVER. IN THE EVENT OF
LITIGATION, THIS AGREEMENT MAY BE FILED AS WRITTEN CONSENT TO A TRIAL BY THE
COURT.

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     IN WITNESS WHEREOF, the undersigned parties hereby execute this Agreement
as of the date first set forth above.

                                   Company:

                                   FUTURE MEDIA PRODUCTIONS, INC.

                                   By: /s/ ALEX SANDEL
                                       -------------------------------

                                   Its: President
                                        ------------------------------

                                   EXECUTIVE:

                                   /s/ DAVID MOSS
                                   ----------------------------------
                                   David Moss

                                       12<PAGE>

                                                                    EXHIBIT 10.7

     THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
     THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED OR
     OTHERWISE HYPOTHECATED WITHOUT REGISTRATION UNDER SUCH ACT OR PURSUANT TO
     AN EXEMPTION THEREFROM.

                               WARRANT AGREEMENT

     This WARRANT AGREEMENT (the "AGREEMENT") is made and entered into as of
January 1, 1998, by and between Future Media Productions, Inc., a California
corporation (the "COMPANY"), and David Moss ("HOLDER").  In consideration of
these premises and the mutual covenants and agreements hereinafter set forth,
and other good and valuable consideration the receipt and sufficiency of which
are hereby acknowledged, the Company and Holder agree as follows:

     1.   GRANT OF WARRANT.

     For good and valuable consideration, receipt of which is hereby
acknowledged, the Company hereby grants to Holder the right and option (the
"WARRANT"), upon the terms and subject to the conditions set forth in this
Agreement, to purchase all or any portion of 611 shares of the common stock of
the Company (the "WARRANT SHARES") at an exercise price of $1 per share (the
"EXERCISE PRICE").

     2.   TERM OF WARRANT.

          (a)  The Warrant shall terminate and expire at 5:00 p.m., Los Angeles
time, on December 31, 2007 (the "WARRANT EXPIRATION DATE"), unless sooner
terminated as provided herein.

          (b)  If Holder shall cease to be in the employ of the Company for any
reason other than Holder's death or permanent disability (a "SPECIAL TERMINATING
EVENT"), Holder shall have the right, subject to the provisions of Section 2(d)
below, to exercise the Warrant at any time within 30 days after the date Holder
ceased to be employed by the Company, but in no case later than the Warrant
Expiration Date. The Warrant may be exercised during such period only with
respect to the Warrant Shares that were vested as of the date Holder's
employment terminated and only to the extent the Warrant had not previously been
exercised. To the extent the Warrant remains unexercised at the end of such
period, the Warrant shall terminate. The Board, in its sole and absolute
discretion, shall determine whether or not authorized leaves of absence shall
constitute termination of employment for purposes of this Agreement.

          (c)  If a Special Terminating Event occurs while Holder is in the
employ of the Company, then Holder, Holder's executors or administrators or any
person or persons acquiring the Warrant directly from Holder by bequest or
inheritance, shall have the right to exercise the Warrant at any time within six
months after the Special Terminating Event, but in no case later than the
Warrant Expiration Date. The Warrant may be exercised during such period only
with respect to the Warrant Shares that were vested as of the Special
Terminating Event and only to
<PAGE>

the extent the Warrant had not previously been exercised. To the extent the
Warrant remains unexercised at the end of such period, the Warrant shall
terminate.

          (d)  If Holder shall be terminated "for cause" by the Company, the
Warrant shall terminate immediately. For purposes of this Agreement, "for cause"
shall mean:

               (i)   the failure or refusal by Holder to perform his or her
duties to the Company; or

               (ii)  Holder's willful disobedience of any orders or directives
of the Board or any officers thereof acting under the authority thereof or such
person's deliberate interference with the compliance by other employees of the
Company with any such orders or directives; or

               (iii) the failure or refusal of Holder to abide by or comply with
the written policies, standard procedures or regulations of the Company; or

               (iv)  any willful or continued act or course of conduct by Holder
which the Board in good faith determines might reasonably be expected to have a
material detrimental effect on the Company or the business, operations, affairs
or financial position thereof; or

               (v)   the committing by Holder of any fraud, theft, embezzlement
or other dishonest act against the Company; or

               (vi)  the determination by the Board, in good faith and in the
exercise of reasonable discretion, that Holder is not competent to perform his
or her duties of employment.

          (e)  For purposes of this Agreement, "permanent disability" shall mean
permanent and total disability as defined by the Board. Holder shall not be
considered permanently disabled unless he furnishes proof of such disability in
such form and manner, and at such times, as the Board may from time to time
require.

     3.   VESTING.

          (a)  The Warrant is fully vested and all of the Warrant Shares may be
immediately exercised.

          (b)  Notwithstanding anything to the contrary contained in this
Agreement, the Warrant may not be exercised, in whole or in part, unless and
until any then-applicable requirements of all state and federal laws and
regulatory agencies shall have been fully complied with to the satisfaction of
the Company and its counsel.

     4.   EXERCISE OF WARRANT.

     There is no obligation to exercise the Warrant, in whole or in part.  The
Warrant may be exercised, in whole or in part, only by delivery to the Company
of:

                                       2
<PAGE>

          (a)  written notice of exercise in form and substance identical to
EXHIBIT "A" attached to this Agreement stating the number of Warrant Shares then
being purchased (the "PURCHASED SHARES"); and

          (b)  payment of the Exercise Price of the Purchased Shares in cash, by
check or by wire transfer. Upon receipt of the foregoing, the Company shall
promptly issue in the name of the Holder a stock certificate evidencing the
Purchased Shares by such exercise and deliver such certificate to the Holder.

     5.   RESTRICTIONS ON TRANSFER.

          (a)  HOLDER AGREES THAT THE WARRANT MAY NOT BE TRANSFERRED, SOLD,
ASSIGNED OR HYPOTHECATED EXCEPT BY OPERATION OF LAW. HOLDER FURTHER AGREES THAT
THE COMPANY SHALL HAVE NO OBLIGATION TO EFFECT ANY TRANSFER OF THE WARRANTS
UNLESS THE TRANSFEREE SHALL HAVE EXECUTED AN AGREEMENT OBLIGATING THE TRANSFEREE
TO COMPLY WITH ALL TERMS AND CONDITIONS OF THIS AGREEMENT APPLICABLE TO THE
TRANSFEROR.

          (b)  Prior to any exercise of the Warrants or any transfer or
attempted transfer of any of the Warrants, Warrant Shares, or Purchased Shares
(the "SECURITIES"), the Holder shall give the Company written notice of Holder's
intention so to do, describing briefly the manner of any such proposed exercise,
sale or transfer. The Holder may effect such exercise or transfer, provided that
such exercise or transfer is not prohibited by this Section 5 and such exercise
or transfer complies with all applicable federal and state securities laws and
regulations. If in the reasonable opinion of counsel for the Company,
notwithstanding the opinion of counsel to a Holder to the contrary, if any, the
proposed exercise or transfer of such Securities may not be effected without
registration thereof under the Securities Act and such registration has not been
accomplished, the Company shall, as promptly as practicable, so notify the
Holder and the Holder shall not consummate the proposed transfer.

          (c)  Each certificate for Purchased Shares initially issued upon the
exercise of the Warrants, shall be stamped or otherwise imprinted with a legend
in substantially the following form:

          "THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE
          CONDITIONS SPECIFIED IN THAT CERTAIN WARRANT AGREEMENT DATED JANUARY
          1, 1998. NO TRANSFER, SALE, PLEDGE, HYPOTHECATION, ENCUMBRANCE OR
          OTHER DISPOSITION OF THE SHARES REPRESENTED BY THIS CERTIFICATE SHALL
          BE VALID OR EFFECTIVE UNLESS SUCH TRANSFER, SALE, PLEDGE,
          HYPOTHECATION, ENCUMBRANCE OR OTHER DISPOSITION IS IN COMPLIANCE WITH
          THE PROVISIONS OF THE WARRANT AGREEMENT AND UNTIL REGISTERED OR THE
          COMPANY HAS RECEIVED AN OPINION OF COUNSEL, SATISFACTORY TO IT, THAT
          THE TRANSACTION IS EXEMPT FROM REGISTRATION, AND UNTIL SUCH CONDITIONS
          AS ARE CONTAINED IN THE WARRANT AGREEMENT HAVE BEEN FULFILLED. A COPY
          OF THE FORM OF THE WARRANT AGREEMENT IS ON FILE AT THE OFFICES OF
          FUTURE MEDIA PRODUCTIONS, INC. THE HOLDER OF THIS CERTIFICATE, BY
          ACCEPTANCE

                                       3
<PAGE>

          OF THIS CERTIFICATE, AGREES TO BE BOUND BY THE PROVISIONS OF THE
          WARRANT AGREEMENT."

     Subject to the provisions of Section 5(e) below, if the Purchased Shares
are no longer subject to the transfer restrictions imposed by applicable state
and Federal securities law because either (i) the Purchased Shares or the resale
of the Purchased Shares has been registered on a registration statement declared
effective by the Commission, or (ii) in the reasonable opinion of counsel for
the Company, or the opinion of counsel for Holder, which opinion is reasonably
satisfactory to counsel for the Company, all future dispositions of any of the
Purchased Shares by the contemplated transferee would be exempt from or would
satisfy the registration and prospectus delivery requirements of the Securities
Act and the qualification requirements of the applicable state securities laws,
then the restrictions on transfer of such securities contained in this Section
5(c) shall not apply to any subsequent transfer thereof and the Company shall,
promptly upon request by Holder, remove the legend set forth above and shall
promptly issue, in exchange for the certificate bearing such legend, a
certificate without such legend to Holder.

          (d)  In connection with any underwritten public offering by the
Company of its equity securities pursuant to an effective registration statement
filed under the 1933 Act, including the Company's initial public offering,
Holder shall not sell, make any short sale of, loan, hypothecate, pledge, grant
any option for the purchase of, or otherwise dispose or transfer for value or
otherwise agree to engage in any of the foregoing transactions with respect to
the Securities without the prior written consent of the Company or its
underwriters, for such period of time from and after the effective date of such
registration statement as may be requested by the Company or such underwriters;
PROVIDED, HOWEVER, that in no event shall such period exceed 180 days.  This
Section 5(d) shall only remain in effect for the two-year period immediately
following the effective date of the Company's initial public offering and shall
thereafter terminate and cease to be in force or effect.  Holder agrees to
execute and deliver to the Company such further documents or instruments as the
Company reasonably determines to be necessary or appropriate to effect the
provisions of this Section 5(d).  In order to enforce the provisions of this
Section 5(d), the Company may impose stop-transfer instructions with respect to
the Securities until the end of the applicable stand-off period.

          (e)  So long as the Company is an S Corporation, none of the
Securities shall be transferred, sold, assigned or hypothecated (with or without
consideration) and the Company shall not be required to register any such
transfer and the Company may instruct its transfer agent not to register any
such transfer to any person who is not eligible to be an S Corporation
shareholder as defined in Section 1361 of the Internal Revenue Code, or to any
person if such transfer would, in the opinion of the Company's counsel, result
in the termination or revocation of the Company's taxable status as an S
Corporation.

          (f)  In the event of any stock dividend, stock split, recapitalization
or other transaction resulting in an adjustment under Section 6 hereof, then any
new, substituted or additional securities or other property which is by reason
of such transaction distributed with respect to or in exchange for the
Securities or shall be immediately subject to the provisions of this Section 5,
to the same extent such Securities are at such time covered by such provisions.

                                       4
<PAGE>

     6.   ADJUSTMENTS UPON RECAPITALIZATION.

          (a)  In the event the Company should at any time or from time to time
after the date of this Warrant (the "ISSUANCE DATE") fix a record date for the
effectuation of a split or subdivision of the outstanding shares of Common Stock
or the determination of holders of Common Stock entitled to receive a dividend
or other distribution payable in additional shares of Common Stock or other
securities or rights convertible into, or entitling the holder thereof to
receive, directly or indirectly, additional shares of Common Stock (hereinafter
referred to as "COMMON STOCK EQUIVALENTS") without payment of any consideration
by such holder for the additional shares of Common Stock or the Common Stock
Equivalents (including the additional shares of Common Stock issuable upon
conversion or exercise thereof), then, as of such record date (or the date of
such dividend, distribution, split or subdivision if no record date is fixed),
the number of Warrant Shares shall be increased in proportion to such increase
in the aggregate number of shares of Common Stock outstanding and those issuable
with respect to such Common Stock Equivalents and the Exercise Price shall be
appropriately decreased (i.e., the per share Exercise Price shall be adjusted
such that the aggregate exercise price for all Warrant Shares issuable upon
exercise of the Warrants in full, as adjusted, shall remain the same).

          (b)  If the number of shares of Common Stock outstanding at any time
after the Issuance Date is decreased by a combination of the outstanding shares
of Common Stock, then, following the record date of such combination, the number
of Warrant Shares shall be decreased in proportion to such decrease in the
aggregate number of shares of Common Stock outstanding and those issuable with
respect to such Common Stock Equivalents and the Exercise Price shall be
appropriately increased (i.e., the per share Exercise Price shall be adjusted
such that the aggregate exercise price for all Warrant Shares issuable upon
exercise of the Warrants in full, as adjusted, shall remain the same).

          (c)  In case of any capital reorganization, any reclassification of
the Common Stock (other than a change in par value or a recapitalization
described in Section 6(a) or 6(b) of this Agreement), or the consolidation of
the Company with, or a sale of substantially all of the assets of the Company to
(which sale is followed by a liquidation or dissolution of the Company), or
merger of the Company with, another person, the Holder shall thereafter be
entitled upon exercise of the Warrant to purchase the kind and number of shares
of stock or other securities or the amount or value of any cash, assets or other
property receivable upon such event by a holder of the number of shares of the
Common Stock which the Warrant entitles the holder of the Warrant to purchase
from the Company immediately prior to such event; and in any such case,
appropriate adjustment shall be made in the application of the provisions set
forth in this Agreement with respect to the Holder's rights and interests
thereafter, to the end that the provisions set forth in this Agreement
(including the specified changes and other adjustments to the Exercise Price)
shall thereafter be applicable in relation to any shares or other property
thereafter purchasable upon exercise of the Warrant.

          (d)  In the event the Company should at any time or from time to time
after the Issuance Date fix a record date for the determination of holders of
Common Stock entitled to receive a dividend or other distribution payable in
securities or rights convertible into, or entitling the holder thereof to
receive, directly or indirectly, additional shares of Common Stock or the

                                       5
<PAGE>

securities or such rights of any other corporation (other than Common Stock
Equivalents covered be Section 6(a) hereof), the Holder shall thereafter be
entitled upon exercise of the Warrant to receive, in addition to the Purchased
Shares being purchased upon such exercise, the securities or rights convertible
into securities receivable upon such event by a holder of the number of shares
of the Common Stock which the Holder is purchasing upon such exercise.

          (e)  If it is expected that there will occur any event described in
Section 6(c) or 6(d) hereof, the Company shall give the holder of the Warrants
notice thereof, which notice shall be given at such time or times as notice is
given to the holders of the Company's Common Stock.

          (f)  The provisions of this Section 6 are intended to be exclusive,
and the holder of the Warrant shall have no rights other than as set forth in
this Agreement (and the rights of a stockholder upon exercise of the Warrant)
upon the occurrence of any of the events described in this Section 6.

          (g)  The grant of the Warrant shall not affect in any way the right or
power of the Company to make adjustments, reclassifications, reorganizations or
changes in its capital or business structure, or to merge, consolidate, dissolve
or liquidate, or to sell or transfer all or any part of its business or assets.

     7.   REPRESENTATIONS AND WARRANTIES OF HOLDER.

          Holder makes the following representations and warranties:

          (a)  Holder is acquiring the Warrants for its own account with the
present intention of holding such securities for investment purposes only and
not with a view to, or for sale in connection with, any distribution of such
securities (other than a distribution in compliance with all applicable federal
and state securities laws).

          (b)  Holder is an experienced and sophisticated investor and has such
knowledge and experience in financial and business matters that it is capable of
evaluating the relative merits and the risks of an investment in the Warrants
and in the Warrant Shares and of protecting its own interests in connection with
this transaction.

          (c)  Holder is willing to bear and is capable of bearing the economic
risk of an investment in the Warrants and the Warrant Shares.

          (d)  The Company has made available, prior to the date of this
Agreement, to Holder the opportunity to ask questions of the Company and its
officers, and to receive from the Company and its officers information
concerning the terms and conditions of the Warrants and this Agreement and to
obtain any additional information with respect to the Company, its business,
operations and prospects, as reasonably requested by Holder.

          (e)  Holder is an "accredited investor" as that term is defined under
Rule 501(a) of Regulation D promulgated by the Securities and Exchange
Commission under the Act.

                                       6
<PAGE>

          (f)  For purposes of the application of federal and state securities
laws, Holder acknowledges that the offer and sale of the Warrants to such Holder
occurred in the State of California and that such Holder is a resident of the
State of California.

     8.   LEGEND ON STOCK CERTIFICATES.

     Holder agrees that all certificates representing the Securities will be
subject to such stock transfer orders and other restrictions as the Company may
deem advisable under the rules, regulations and other requirements of the
Securities and Exchange Commission (the "COMMISSION"), any stock exchange upon
which the Common Stock is then listed and any applicable federal or state
securities laws, and the Company may cause the following legend, or such other
legend as the Company may deem appropriate, to be put on such certificates to
make appropriate reference to such restrictions:

     THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
     THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED OR
     OTHERWISE HYPOTHECATED WITHOUT REGISTRATION UNDER SUCH ACT OR PURSUANT TO
     AN EXEMPTION THEREFROM.

     9.   NO RIGHTS AS STOCKHOLDER.

     Holder shall have no rights as a stockholder of the Company with respect to
the Securities until the date of the issuance to Holder of a stock certificate
or stock certificates evidencing such Securities.  Except as may be provided in
Paragraph 6 of this Agreement, no adjustment shall be made for dividends
(ordinary or extraordinary, whether in cash, securities or other property) or
distributions or other rights for which the record date is prior to the date
such stock certificate is issued.

     10.  MODIFICATION.

     The Board or a committee thereof may modify, extend or renew the Warrant or
accept the surrender of, and authorize the grant of a new option in substitution
for, the Warrant (to the extent not previously exercised).  No modification of
the Warrant shall be made without the consent of Holder which would alter or
impair any rights of Holder under the Warrant.

     11.  COVENANTS OF HOLDER AND THE COMPANY.

          (a)  PIGGYBACK REGISTRATION OF WARRANT SHARES. If, at any time during
the period commencing on the date that is 180 days from the date upon which any
initial public offering ("IPO") is declared effective by the Commission and on
or before December 31, 2002, the Company shall propose to register any shares of
Common Stock (but excluding any shares or securities being registered pursuant
to Form S-8 or Form S-4 or any successor form thereto), the Company shall (i)
give the Holder written notice, or telegraphic, telecopy or telephonic notice
followed as soon as practicable by written confirmation thereof, of such
proposed registration at least 20 business days prior to the filing of such
registration statement and, (ii) upon written

                                       7
<PAGE>

notice, or telegraphic or telephonic notice followed as soon as practicable by
written confirmation thereof, given to the Company by the Holder within 15 days
after the giving of such written confirmation or written notice by the Company,
the Company shall include or cause to be included in any such registration
statement all or such portion of the Warrant Shares as the Holder may request;
PROVIDED, HOWEVER, that the Company may at any time withdraw or cease proceeding
with any such registration if it shall at the same time withdraw or cease
proceeding with the registration of the Common Stock originally proposed to be
registered; and PROVIDED FURTHER, that in connection with any registered public
offering involving an underwriting, the managing underwriter may (if in its
reasonable opinion marketing factors so require) limit the number of securities
(including any Warrant Shares) included in such offering (other than securities
of the Company). In the event of any such limitation, the total number of
Warrant Shares to be offered for the account of the Holder in the registration
shall be reduced in proportion to the respective number of shares requested to
be included therein by all holders of the Company's Common Stock (other than the
Company) entitled to include shares of Common Stock in the registration to the
extent necessary to reduce the total number of shares proposed to be registered
to the number of shares recommended by the managing underwriter.

          (b)   COMPANY'S OBLIGATIONS IN REGISTRATION. The following provisions
shall also be applicable at the sole cost and expense of the Company in the case
of registrations under Section 11:

          i)    Following the effective date of such registration statement, the
Company shall, upon the request of the Holder, forthwith supply such number of
prospectuses meeting the requirements of the Securities Act as shall be
requested by the Holder to permit it to make a public distribution of all of its
Warrant Shares, provided that the Holder shall from time to time furnish the
Company with such appropriate information (relating to the intentions of the
Holder) in connection therewith as the Company shall request in writing.

          ii)   the Company shall bear the entire cost and expense of the
registration of securities provided for in this Section (but not the selling
expenses of the Holder).

          iii)  the Company shall indemnify and hold harmless the Holder from
and against any and all losses, claims, damages and liabilities (including
reasonable fees and expenses of counsel) arising out of or based upon any untrue
statement or alleged untrue statement of a material fact contained in any
registration statement or any prospectus included therein required to be filed
or furnished by reason of this Section or otherwise or in any application or
other filing under, the Securities Act or any other applicable Federal or state
securities law, or arising out of or based upon any omission or alleged omission
to state therein a material fact required to be stated therein (i.e., in any
such registration statement, prospectus, application or other filing) or
necessary to make the statements therein not misleading, to which such person
may become subject, or any violation or alleged violation by the Company to
which such Person may become subject, under the Securities Act, the Exchange
Act, or other Federal or state laws or regulations, at common law or otherwise,
except to the extent that such losses, claims, damages or liabilities are caused
by any such untrue statement or alleged untrue statement or omission or alleged
omission based upon and in strict conformity with written information furnished
to the Company by such person expressly for use therein; PROVIDED HOWEVER, that
the Holder shall at the same time

                                       8
<PAGE>

indemnify the Company, its directors, each officer signing the related
registration statement, and each person, if any, who controls the Company within
the meaning of the Securities Act, from and against any and all losses, claims,
damages and liabilities (including reasonable fees and expenses of counsel)
arising out of or based upon any untrue statement or alleged untrue statement of
a material fact contained in any registration statement or any prospectus
included therein required to be filed or furnished by reason of this Section, or
otherwise or in any application or other filing under, the Securities Act or any
other applicable Federal or state securities law, or arising out of or based
upon any omission or alleged omission to state therein a material fact required
to be stated therein (i.e., in any such registration statement, prospectus,
application or other filing) or necessary to make the statements therein not
misleading, to which such person may become subject, or any violation or alleged
violation by the Holder to which the Company, its directors, each officer
signing the related registration statement, and each person, if any, who
controls the Company within the meaning of the Securities Act, may become
subject, under the Securities Act, the Exchange Act, or other Federal or state
laws or regulations, at common law or otherwise, to the extent that such losses,
claims, damages or liabilities are caused by any such untrue statement or
alleged untrue statement or omission or alleged omission based upon and in
strict conformity with written information furnished to the Company by the
Holder expressly for use therein.

          (c)  In the event any person entitled to indemnification hereunder
receives in writing a complaint, claim or other written notice of any loss,
claim, damage, liability or action giving rise to a claim for indemnification
under Section 11(b)(iii), the person claiming indemnification under Section
11(b)(iii) shall promptly notify the person or persons against whom
indemnification is sought (the "INDEMNITOR") of such complaint, notice, claim or
action, and the Indemnitor shall have the right to investigate and defend any
such loss, claim, damage, liability or action. The person claiming
indemnification shall have the right to employ separate counsel in any such
action and to participate in the defense thereof but the fees and expenses of
such counsel shall not be at the expense of the Indemnitor. In no event shall
the Indemnitor be obligated to indemnify any person for any settlement of any
claim or action effected without the Indemnitor's consent, which consent shall
not be unreasonably withheld.

     12.  DISPUTES.

          (a)  ARBITRATION. All disputes arising in connection with this
Agreement shall be finally settled by arbitration in Los Angeles, California, in
accordance with the rules of the American Arbitration Association (the "RULES OF
ARBITRATION") and judgment on the award rendered by the arbitration panel (the
"ARBITRATION PANEL") may be entered in any court or tribunal of competent
jurisdiction.

          (b)  Any party which desires to initiate arbitration proceedings as
provided in Section 12(a) above may do so by delivering written notice to the
other party (the "ARBITRATION NOTICE") specifying (A) the nature of the dispute
or controversy to be arbitrated, (B) the name and address of the arbitrator
appointed by the party initiating such arbitration and (C) such other matters as
may be required by the Rules of Arbitration.

                                       9
<PAGE>

          (c)  The Parties shall appoint a single arbitrator who shall
constitute the Arbitration Panel hereunder. Should the parties not agree upon
the appointment of the arbitrator within 30 days of delivery of the Arbitration
Notice, the Arbitrator shall be appointed in accordance with the Rules of
Arbitration.

          (d)  In any arbitration proceeding conducted pursuant to the
provisions of this Section 12, both parties shall have the right to discovery,
to call witnesses and to cross-examine the opposing party's witnesses, either
through legal counsel, expert witnesses or both.

          (e)  FINALITY OF DECISION. All decisions of the Arbitration Panel
shall be final, conclusive and binding on all parties and shall not be subject
to judicial review. The arbitrator shall divide all costs (other than fees of
counsel) incurred in conducting the arbitration proceeding and the final award
in accordance with what they deem just and equitable under the circumstances.

          (f)  LIMITATIONS. Notwithstanding anything to the contrary contained
in Sections 12(a) and 12(b) above, any claim by either party for injunctive or
other equitable relief, including specific performance, may be brought in any
court of competent jurisdiction and any judgment, order or decree relating
thereto shall have precedence over any arbitral award or proceeding.

     13.  GENERAL PROVISIONS.

          (a)  FURTHER ASSURANCES. Holder shall promptly take all actions and
execute all documents requested by the Company which the Company deems to be
reasonably necessary to effectuate the terms and intent of this Agreement.

          (b)  NOTICES. All notices, requests, demands and other communications
under this Agreement shall be in writing and shall be given to the parties
hereto as follows:

                         If to the Company, to:

                         Future Media Productions, Inc.
                         2536 Anza Drive
                         Valencia, California 91355
                         Attention: Chief Executive Officer

                         If to Holder, to the address set
                         forth in the records of the Company,

or at such other address or addresses as may have been furnished by either party
in writing to the other party hereto. Any such notice, request, demand or other
communication shall be effective (i) if given by mail, two days after such
communication is deposited in the mail by first-class certified mail, return
receipt requested, postage prepaid, addressed as aforesaid, or (ii) if given by
any other means, when delivered at the address specified in this subparagraph
(b).

                                       10
<PAGE>

          (c)  GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS
MADE IN, AND TO BE PERFORMED WITHIN, THAT STATE. JURISDICTION AND VENUE OVER ANY
LEGAL ACTION BROUGHT HEREUNDER SHALL RESIDE EXCLUSIVELY IN THE COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA. EACH OF THE PARTIES HERETO WAIVE THEIR RIGHT TO A
JURY TRIAL WITH RESPECT TO ANY SUCH LEGAL ACTIONS.

          (d)  ATTORNEYS' FEES. In the event that any action, suit or
arbitration or other proceeding is instituted upon any breach of this Agreement,
the prevailing party shall be paid by the other party thereto an amount equal to
all of the prevailing party's costs and expenses, including attorneys' fees
incurred in each and every such action, suit or proceeding (including any and
all appeals or petitions therefrom). As used in this Agreement, "attorneys'
fees" shall mean the full and actual cost of any legal services actually
performed in connection with the matter involved calculated on the basis of the
usual fee charged by the attorney performing such services and shall not be
limited to "reasonable attorneys' fees" as defined in any statute or rule of
court.

          (e)  AMENDMENT; WAIVER. This Agreement shall be binding upon and inure
to the benefit of the parties to this Agreement and their respective successors,
heirs and personal representatives. No provision of this Agreement may be
amended or waived unless in writing signed by all of the parties to this
Agreement. Waiver of any one provision of this Agreement shall not be deemed to
be a waiver of any other provision.

          (f)  NO FINDERS. The parties each agree to indemnify and hold harmless
the other against any expense incurred by reason of any consulting, brokerage
commission or finder's fee alleged to be payable to any person in connection
with the transactions contemplated hereby because of any act, omission or
statement of indemnifying party or any dealings by the indemnifying party with
any consultant, broker or finder.

          (g)  EXPENSES. Each of the parties shall pay its own expenses incurred
in connection with the preparation of this Agreement and the consummation of the
transactions contemplated hereby.

          (h)  SEVERABILITY. Whenever possible, each provision of this Agreement
shall be interpreted in such a manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be or become
prohibited or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity without invalidating the
remainder of such provision or the remaining provisions of this Agreement.

          (i)  COUNTERPARTS. This Agreement may be executed in several
counterparts, all of which together shall constitute one agreement binding on
all parties hereto, notwithstanding that all of the parties have not signed the
same counterpart.

          (j)  ENTIRE AGREEMENT. This Agreement constitutes and embodies the
entire understanding and agreement of the parties hereto relating to the subject
matter hereof and there

                                       11
<PAGE>

are no other agreements or understandings, written or oral, in effect between
the parties relating to such subject matter except as expressly referred to
herein.

          (k)  MISCELLANEOUS. Titles and captions contained in this Agreement
are inserted for convenience of reference only and do not constitute a part of
this Agreement for any other purpose. Except as specifically provided herein,
neither this Agreement nor any right pursuant hereto or interest herein shall be
assignable by any of the parties hereto without the prior written consent of the
other party hereto.

                                       12
<PAGE>

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

                                         Future Media Productions Inc.

                                         By:  /s/ ALEX SANDEL
                                              -------------------------
                                              Alex Sandel
                                         Its: President

                                         /s/ DAVID MOSS
                                         ------------------------------
                                         David Moss

                                       13
<PAGE>

                                  EXHIBIT "A"

                              NOTICE OF EXERCISE

               (TO BE SIGNED ONLY UPON EXERCISE OF THE WARRANT)

TO:  Future Media Productions Inc.

     The undersigned hereby irrevocably elects (to the extent indicated herein)
to exercise the purchase right represented by the Warrant granted to the
undersigned on January 1, 1998 and to purchase thereunder ___________ shares of
Common Stock of Future Media Productions Inc., a California corporation (the
"COMPANY").  The closing of the exercise of the purchase right shall take place
at _____  on _________________, ____ at the principal executive office of the
Company located at 2536 Anza Drive, Valencia, California  91355.

                                            HOLDER

                                            -------------------------------

                                       14

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