Document:

<PAGE>
                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY

                                 AMENDMENT NO. 2

               Amendment No. 2 dated as of March 26, 2002 (this "AMENDMENT")
among LIBERTY LIVEWIRE CORPORATION, a Delaware corporation (the "BORROWER"), the
several Lenders from time to time parties to the Credit Agreement (as defined
below), BANC OF AMERICA SECURITIES LLC, as Lead Arranger and Book Manager, BANK
OF AMERICA, N.A., as Issuer and Swingline Lender, BANK OF AMERICA, N.A., as
administrative agent for the Lenders (in such capacity, the "ADMINISTRATIVE
AGENT"), SALOMON SMITH BARNEY INC., as Syndication Agent, and THE BANK OF NEW
YORK COMPANY, INC., as Documentation Agent.

                               W I T N E S S E T H

               WHEREAS, the Borrower, the Lenders, the Lead Arranger, the
Issuer, the Administrative Agent, the Syndication Agent and the Documentation
Agent are parties to the Credit Agreement, dated as of December 22, 2000 (as
amended by Amendment No. 1, dated as of November 1, 2001, the "CREDIT
AGREEMENT"; terms defined in the Credit Agreement are used herein as defined
therein);

               WHEREAS, the parties desire to amend the Credit Agreement to
modify certain provisions thereof;

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

               SECTION 1. AMENDMENT TO CREDIT AGREEMENT.

               (a) AMENDMENT TO SECTION 1.1. Section 1.1 of the Credit Agreement
        is hereby amended by:

                      (i) Deleting clause (a) of the definition of "Applicable
               Margin" in its entirety and replacing it with the following:

                             (a) for each Type of Revolving Loan and Term A
                      Loan, the rate per annum set forth under the relevant
                      column heading opposite the applicable Total Leverage
                      Ratio:

<PAGE>

<TABLE>
<CAPTION>
                                                       Eurodollar      Alternate Base
                        Total Leverage Ratio             Loans           Rate Loans
                        --------------------           ----------      --------------
                <S>                                    <C>             <C>
                Greater than or equal to 4.50 to          3.00            2.00
                1.00
                Less than 4.50 to 1.00 but greater        2.75%           1.75%
                than or equal to 4.00 to 1.00
                Less than 4.00 to 1.00 but greater        2.50%           1.50%
                than or equal to 3.50 to 1.00
                Less than 3.50 to 1.00 but greater        2.25%           1.25%
                than or equal to 3.00 to 1.00
                Less than 3.00 to 1.00 but greater        2.00%           1.00%
                than or equal to 2.50 to 1.00
                Less than 2.50 to 1.00                    1.75%           0.75%
</TABLE>

                      (ii) Deleting clause (b) of the definition of "Applicable
               Margin" in its entirety and replacing it with the following:

                             (b) for each Type of Term B Loan, (i) if the Total
                      Leverage Ratio is less than 4.50 to 1.00, a rate per annum
                      equal to (x) in the case of an Alternate Base Rate Loan,
                      2.50% and (y) in the case of a Eurodollar Loan, 3.50%, and
                      (ii) if the Total Leverage Ratio equals or exceeds 4.50 to
                      1.00, a rate per annum equal to (x) in the case of an
                      Alternate Base Rate Loan, 2.75% and (y) in the case of a
                      Eurodollar Loan, 3.75%.

                      (iii) Deleting in its entirety the first full paragraph of
               the definition of "EBITDA" and replacing it with the following:

                             "EBITDA" shall mean, for any period of
                      determination, an amount (computed without duplication)
                      equal to (a) Net Income for such period, after exclusion
                      of (i) all items which should be classified as
                      extraordinary (all determined in accordance with GAAP) and
                      (ii) all gains attributable to insurance proceeds (other
                      than proceeds of business interruption insurance) received
                      during such period to the extent, if any, such gains are
                      included in Net Income plus (b) all amounts deducted in
                      computing Net Income for such period in respect of (i)
                      Interest Expense (after giving effect to all Hedging
                      Agreements and payments and receipts thereunder), (ii)
                      noncash amortization expense (including amortization of
                      financing costs, noncurrent assets and noncash charges),
                      (iii) depreciation, (iv) income taxes, (v) all other
                      non-cash expenses, (vi) any cash payments made to
                      repurchase vested employee stock options of the Borrower
                      in an amount not to exceed $10,000,000 in the aggregate
                      during the term of this Agreement, (vii) if any Permitted
                      Acquisition occurred during such period, the amount of any
                      Non-Recurring Expenses attributable to the assets or
                      Capital Stock so acquired, as set forth in the certificate
                      delivered pursuant to paragraph (c)(i) of the definition
                      of "Permitted Acquisition" and (viii) until recognized in
                      accordance with GAAP for the fiscal year 2000, the items
                      described in Schedule 1.1(c) in an aggregate amount not to

                                       2
<PAGE>

                      exceed $7,523,418, plus (c) Restructuring Charges incurred
                      in such period (provided, that (i) the amount of such
                      Charges shall be deducted from Net Income for purposes of
                      determining EBITDA in such period and each subsequent
                      period to the extent such Charges are paid in cash in such
                      period or subsequent period, as applicable, and (ii) in
                      any fiscal year of the Borrower, the aggregate of all
                      Restructuring Charges that shall be added back pursuant to
                      this clause (c) shall not exceed $10,000,000); provided
                      that the amounts described in clauses (a) and (b) above
                      shall not include any amounts attributable to (x) ISG or
                      (y) any Venture Subsidiary that is Minority Owned, except
                      to the extent of cash dividends actually received by the
                      Borrower or any Wholly Owned Subsidiary from on-going
                      operations of such Venture Subsidiary.

                      (iv) Deleting in its entirety the first paragraph of the
               definition of "Permitted Acquisition" and replacing it with the
               following:

                             "Permitted Acquisition" shall mean the VSC
                      Acquisition and any other acquisition by the Borrower or
                      any Subsidiary of all or substantially all the assets or
                      all the Capital Stock of any third-party Post Production
                      Company; or any division or business unit thereof provided
                      that with respect to any such acquisition (other than the
                      VSC Acquisition, which is to be completed on the Closing
                      Date), the Borrower shall have complied with the following
                      conditions:

                      (v) Deleting in its entirety clause (c)(i) of the
               definition of "Permitted Acquisition" and replacing it with the
               following:

                             (i) Officer's Certificate. A certificate executed
                      by a Responsible Officer of the Borrower, (x) setting
                      forth in reasonable detail the EBITDA and the Total
                      Leverage Ratio of the Borrower before and after giving
                      effect to such acquisition and the amount of any
                      Non-Recurring Expenses relating to the assets or Capital
                      Stock which are the subject of such acquisition and (y)
                      stating that on such closing date, both before and after
                      giving effect to such acquisition and any Loans to be
                      advanced on such closing date: (A) no Default or Event of
                      Default has occurred and is continuing; (B) no Material
                      Adverse Effect has occurred since the date of the then
                      most recent audited financial statements of the Borrower
                      delivered to the Administrative Agent pursuant to Section
                      5.1; (C) the representations and warranties set forth in
                      Article 3 are true and correct in all material respects on
                      and as of such date with the same effect as though made on
                      and as of such date; (D) the Borrower is in compliance
                      with all the terms and provisions set forth in this
                      Agreement on its part to be observed and performed; (E)
                      after giving effect to such acquisition (including any
                      Loans to be made in connection with the funding thereof),
                      the sum of the aggregate Available Revolving Credit
                      Commitments and Unrestricted Cash will be equal to or
                      greater than $20,000,000; provided that the condition set
                      forth in this subclause (i)(E) will not be required to

                                       3
<PAGE>

                      be satisfied if (x) the consideration to be paid by the
                      Borrower in respect of such acquisition consists entirely
                      of Capital Stock of the Borrower (excluding any
                      Indebtedness to be assumed in connection with such
                      acquisition) or (y) after giving effect to such
                      acquisition, the Total Leverage Ratio is less than 3.50 to
                      1.00 for the prior two consecutive fiscal quarters; and
                      (F) the financial projections delivered pursuant to clause
                      (d) below have been prepared based upon reasonable
                      assumptions and that such Responsible Officer has no
                      reason to believe that such projections are incorrect or
                      misleading in any material respect or that such
                      assumptions are not reasonable. Each of the foregoing
                      statements shall be true on such closing date before and
                      after giving effect to such acquisition.

                      (vi) Adding a new clause (d) to the definition of
               "Permitted Acquisition" to read as follows:

                             (d) Financial Condition. At least 30 days prior to
                      the closing date for such acquisition, the Borrower shall
                      have delivered to the Administrative Agent and the Lenders
                      financial projections based upon assumptions acceptable to
                      the Administrative Agent demonstrating that immediately
                      prior to and after giving effect to the consummation of
                      such acquisition and the incurrence of the Indebtedness
                      hereunder, the Borrower will be in compliance with all
                      covenants contained in this Agreement and, assuming the
                      schedule for the repayment of the Loans and the reduction
                      of the Revolving Credit Commitment then in effect, until
                      all the Obligations have been repaid in full.

                      (vii) Deleting the definition of "Permitted Indebtedness"
               in its entirety and replacing it with the following:

                             "Permitted Indebtedness" shall mean the collective
                      reference to (a) the Liberty Debt in an aggregate
                      principal amount (exclusive of capitalized interest) not
                      to exceed $310,000,000 and (b) other Indebtedness in an
                      aggregate principal amount at any one time outstanding not
                      to exceed $100,000,000.

                      (viii) Deleting the definition of "Purchase Money
               Indebtedness" in its entirety and replacing it with the
               following:

                             "Purchase Money Indebtedness" shall mean
                      Indebtedness of the Borrower or any Subsidiary incurred
                      solely to finance the acquisition (including by means of a
                      Financing Lease), construction, installation or
                      improvement of any real property or personal tangible
                      property which is useful to the Borrower or any Subsidiary
                      in its business as a Post Production Company and
                      businesses substantially complementing or ancillary
                      thereto which Indebtedness is incurred within 180 days
                      following such acquisition, construction, installation or
                      improvement and is secured only by the assets so financed.

                                       4
<PAGE>

                      (ix) Adding the following new definitions in the
               appropriate alphabetical order to read as follows:

                             "Restructuring Charges" shall mean cash
                      restructuring charges incurred with respect to severance
                      arrangements and discontinuance or sale of specific
                      operating facilities utilized as an entirety by a specific
                      business unit.

                             "Unrestricted Cash" shall mean all cash and cash
                      equivalents of the Borrower and its Subsidiaries that are
                      not subject to any Lien (other than the Liens of the Loan
                      Documents).

               (b) AMENDMENT OF SECTION 2.24(a).  Section 2.24(a) of the Credit
        Agreement is hereby deleted in its entirety and the following inserted
        in its place:

                      (a) At any time prior to September 30, 2002, the Borrower
               may, with the consent of the Administrative Agent, add any
               financial institution as a Lender hereunder; provided that after
               giving effect to such addition (a) no Default shall exist and be
               continuing and (b) the aggregate Revolving Credit Commitments
               shall not exceed $265,000,000, the aggregate Term A Loan
               Commitments shall not exceed $143,000,000 and the aggregate Term
               B Loan Commitments shall not exceed $67,000,000 (such financial
               institution being a "New Lender") and provided further, that the
               fees and other compensation (including any discount) paid to or
               received by any New Lender are not greater than the fees and
               compensation paid to each Lender in connection with entering into
               this Agreement and any amendments prior to September 30, 2002.
               Each such addition shall be effected by the delivery to the
               Administrative Agent of a New Lender Joinder Agreement executed
               by the Borrower, such financial institution and the
               Administrative Agent. Upon receipt of a duly executed and
               completed New Lender Joinder Agreement, such financial
               institution shall become a party hereto as a Lender and the
               Administrative Agent shall record in the Register the information
               contemplated by Section 9.6(c) with respect to such financial
               institution. On the effective date of such New Lender Joinder
               Agreement, the New Lender shall (i) make a Term A Loan in the
               amount of such New Lender's Term A Loan Commitment, (ii) make a
               Term B Loan in the amount of such New Lender's Term B Loan
               Commitment and (iii) acquire a part of the Revolving Loans equal
               to the product of (A) such New Lender's Revolving Credit
               Commitment Percentage (after giving effect to the change in
               Revolving Credit Commitment Percentages as a result of all New
               Lender Joinder Agreements effective as of such day) multiplied by
               (B) the Dollar Equivalent of the outstanding principal amount of
               all Revolving Loans. The Administrative Agent shall promptly
               notify the Lenders of each New Lender Joinder Agreement received
               by it.

               (c) AMENDMENT OF SECTION 2.24(b). Section 2.24(b) of the Credit
        Agreement is hereby amended by:

                                       5
<PAGE>

                      (i) Deleting "June 29, 2001" in the first line thereof and
               inserting "September 30, 2002" in its place; and

                      (ii) Deleting "June 29, 2001" in the eighth line thereof
               and inserting "September 30, 2002" in its place.

               (d) AMENDMENT OF SECTION 5.2(d). Section 5.2(d) of the Credit
        Agreement is hereby deleted in its entirety and the following inserted
        in its place:

                      (d) not later than March 31, 2002 in respect of the fiscal
               year of the Borrower ended December 31, 2001 and for each fiscal
               year of the Borrower thereafter, not later than 60 days after the
               end of such fiscal year, a copy of the projections by the
               Borrower of the operating budget and cash flow budget of the
               Borrower and its Subsidiaries (including a statement of the
               amounts to be invested in ISG and the operating budget and cash
               flow budget for ISG) for the succeeding fiscal year set forth on
               a quarterly basis and on an annual basis through the later of (i)
               the end of the fifth fiscal year thereafter and (ii) December 31,
               2007, together with a narrative description setting forth the
               assumptions upon which such projections are based, such
               projections to be accompanied by a certificate of a Responsible
               Officer to the effect that such projections have been prepared on
               the basis of sound financial planning practices and that such
               Responsible Officer reasonably and in good faith believes that
               such projections are correct and are not misleading in any
               material respect and that such assumptions are reasonable;

               (e) AMENDMENT OF SECTION 5.2. Section 5.2 of the Credit Agreement
        is hereby amended by adding a new clause (i) to read as follows:

                      (i) if the Borrower takes a Restructuring Charge in any
               period, concurrently with the delivery of the Compliance
               Certificate delivered pursuant to Section 5.2(c) in respect of
               such period, any information required to be prepared in
               accordance with GAAP setting forth the anticipated utilization of
               such Charge, and, from time to time, any modification required by
               GAAP with respect to such information.

               (f) AMENDMENT OF SECTION 6.1(b). Section 6.1(b) of the Credit
        Agreement is hereby deleted in its entirety and the following inserted
        in its place:

                      (b) Fixed Charge Coverage. From and after January 1, 2003,
               on any date during any period set forth below, after giving
               effect to the making of each Loan to be made on such date, permit
               the Fixed Charge Coverage Ratio to be less than the ratio set
               forth opposite such period below:

<TABLE>
<CAPTION>
               Period                                Fixed Charge Coverage Ratio
               ------                                ---------------------------
               <S>                                   <C>
               1/01/03 through 12/31/03                      1.00 to 1.00
               1/01/04 and thereafter                        1.10 to 1.00
</TABLE>

                                       6
<PAGE>

               (g) AMENDMENT OF SECTION 6.1(c). Section 6.1(c) of the Credit
        Agreement is hereby deleted in its entirety and the following inserted
        in its place:

                      (c) Total Leverage Ratio. On any date during any period
               set forth below, after giving effect to the making of each Loan
               to be made on such date, permit the Total Leverage Ratio to
               exceed the ratio set forth opposite such period below:

<TABLE>
<CAPTION>
                 Period                                     Total Leverage Ratio
                 ------                                     --------------------
                 <S>                                        <C>
                 1/1/02 through 3/31/02                         4.65 to 1.00
                 4/1/02 through 6/30/02                         4.55 to 1.00
                 7/1/02 through 9/30/02                         4.45 to 1.00
                 10/1/02 through 12/31/02                       4.20 to 1.00
                 1/1/03 through 6/30/03                         4.00 to 1.00
                 7/1/03 and thereafter                          3.50 to 1.00
</TABLE>

               ; provided that if the Borrower declares or pays any dividends,
               then at all times thereafter the Borrower will not permit the
               Total Leverage Ratio to exceed 3.00 to 1.00.

               (h) AMENDMENT OF SECTION 6.1(d). Section 6.1(d) of the Credit
        Agreement is hereby deleted in its entirety and the following inserted
        in its place:

                      (d) Capital Expenditures. Make or commit to make (by way
               of the acquisition of the securities of a Person or otherwise)
               any Capital Expenditures exceeding in the aggregate (i)
               $85,000,000 during the period from January 1, 2000 through
               December 31, 2000, (ii) $185,000,000 during the period from
               January 1, 2000 through December 31, 2001 and (iii) an amount
               equal to (a) $60,000,000, plus (b) any Liberty Debt incurred or
               equity contributed by Liberty Media during the period from
               January 1, 2002 through December 31, 2002.

               (i) AMENDMENT OF SECTION 6.3(i). Section 6.3(i) of the Credit
        Agreement is hereby deleted in its entirety and the following inserted
        in its place:

                      (i) other Liens securing Purchase Money Indebtedness and
               other Indebtedness incurred after the Closing Date, so long as
               the aggregate principal amount of such Purchase Money
               Indebtedness and other Indebtedness does not exceed $50,000,000;
               provided that any Liens securing such Indebtedness shall be
               limited to assets (and not any Capital Stock) which are owned by
               the Borrower or a Subsidiary but not subject to any preexisting
               Lien in favor of the Administrative Agent for the benefit of the
               Lenders.

               SECTION 2. REPRESENTATIONS AND WARRANTIES OF THE BORROWER. The
Borrower represents and warrants that, after giving effect to this Amendment,
all the representations and warranties of the Borrower contained in Section 3 of
the Credit Agreement shall be true in all material respects.

                                       7
<PAGE>

               SECTION 3. CONDITIONS TO EFFECTIVENESS. This Amendment shall be
effective upon the satisfaction of the following conditions precedent:

               (a) the Administrative Agent shall have received counterparts
        hereof executed by duly authorized officers of the Borrower and by duly
        authorized signatories of the Required Lenders;

               (b) the Administrative Agent shall have received a certificate of
        a Responsible Officer of the Borrower certifying that (i) this Amendment
        has been duly authorized, (ii) all representations and warranties are
        true as of the effective date hereof, and (iii) prior to and after
        giving effect to this Amendment, no Default or Event of Default shall
        have occurred which is continuing;

               (c) the Administrative Agent shall have received a consent from
        each Guarantor not a party hereto in the form attached as EXHIBIT A;

               (d) each consenting Lender shall have received a commitment fee
        equal to the product of (x) 20 basis points, times (y) the amount of
        such Lender's Commitment (after giving effect to this Amendment); and

               (e) the Administrative Agent shall have received such other
        documents and certificates as the Administrative Agent may request.

               SECTION 4. REFERENCE TO AND EFFECT IN THE LOAN DOCUMENTS.

               (a) Upon the effectiveness of this Amendment, each reference in
        the Credit Agreement to "this Agreement", "hereunder", "hereof" or words
        of like import referring to the Credit Agreement, and each reference in
        the other Loan Documents to "the Credit Agreement", "thereunder",
        "thereof" or words of like import referring to the Credit Agreement,
        shall mean and be a reference to the Credit Agreement as amended hereby.

               (b) Except as specifically amended above, the Credit Agreement
        and all other Loan Documents are and shall continue to be in full force
        and effect and are hereby in all respects ratified and confirmed.
        Without limiting the generality of the foregoing, the Loan Documents and
        all the Collateral described therein do and shall continue to secure the
        payment of all obligations of the Borrower under the Credit Agreement,
        the Notes and the other Loan Documents, in each case as amended hereby.

               (c) The execution, delivery and effectiveness of this Amendment
        shall not, except as expressly provided herein, operate as a waiver of
        any right, power or remedy of any Lender or the Administrative Agent
        under any of the Loan Documents, nor constitute a waiver of any
        provision of any of the Loan Documents.

               SECTION 5. EXECUTION IN COUNTERPARTS. This Amendment may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed to be an original and all of which taken together shall constitute but
one and the same agreement.

                                       8
<PAGE>

               SECTION 6. GOVERNING LAW. This Amendment shall be governed by,
and construed in accordance with, the laws of the State of New York.

            [NO ADDITIONAL TEXT ON THIS PAGE; SIGNATURE PAGES FOLLOW]

                                       9
<PAGE>

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

                                            BORROWER:

                                            LIBERTY LIVEWIRE CORPORATION

                                            By:    /s/ William E. Niles
                                               ---------------------------------
                                               Name: William E. Niles
                                               Title: Executive Vice President

                                            ADMINISTRATIVE AGENT:

                                            BANK OF AMERICA, N.A.,
                                            as Administrative Agent

                                            By:    /s/ Thomas J. Kane
                                               ---------------------------------
                                               Name: Thomas J. Kane
                                               Title: Principal

                                            THE LENDERS:

                                            BANK OF AMERICA, N.A.

                                            By:    /s/ Thomas J. Kane
                                               ---------------------------------
                                               Name: Thomas J. Kane
                                               Title: Principal

                                            CITICORP USA, INC.

                                            By:    /s/ Stephanie Bontemps
                                               ---------------------------------
                                               Name: Stephanie Bontemps
                                               Title: Managing Director

                                            THE BANK OF NEW YORK COMPANY, INC.

                                            By:    /s/ John C. Lambert
                                               ---------------------------------
                                               Name: John C. Lambert
                                               Title: Authorized Signer

                                      S-1
<PAGE>

                                            GENERAL ELECTRIC CAPITAL CORPORATION

                                            By:    /s/ Moira A. Duncan
                                               ---------------------------------
                                               Name: Moira A. Duncan
                                               Title: Senior Risk Manager

                                            ROYAL BANK OF CANADA

                                            By:    /s/ Barbara Meijer
                                               ---------------------------------
                                               Name: Barbara E. Meijer
                                               Title: Managing Director

                                            ING CAPITAL LLC
                                            formerly ING (U.S.) Capital LLC

                                            By:    /s/ Loring Guessous
                                               ---------------------------------
                                               Name: Loring Guessous
                                               Title: Managing Director

                                            BNP PARIBAS

                                            By:    /s/ Frederique Merhaut
                                               ---------------------------------
                                               Name: Frederique Merhaut
                                               Title: Director
                                                      Senior Credit Officer

                                            By:    /s/ C. Bettles
                                               ---------------------------------
                                               Name: C. Bettles
                                               Title: Managing Director

                                            THE FUJI BANK, LIMITED

                                            By:    /s/ Masahito Fukuda
                                               ---------------------------------
                                               Name: Masahito Fukuda
                                               Title: Senior Vice President &
                                                      Group Head

                                      S-2

<PAGE>

                                            THE GOVERNOR AND COMPANY OF THE BANK
                                            OF IRELAND

                                            By:    /s/ Tom Hayes
                                               ---------------------------------
                                               Name: Tom Hayes
                                               Title: Authorised Signatory

                                            By:    /s/ Olivia Treacy
                                               ---------------------------------
                                               Name: Olivia Treacy
                                               Title: Authorised Signatory

                                            BANK OF TOKYO-MITSUBISHI TRUST
                                            COMPANY

                                            By:    /s/ Paul P. Malecki
                                               ---------------------------------
                                               Name: Paul P. Malecki
                                               Title: Vice President & Manager

                                            U.S. BANK N.A.

                                            By:    /s/ George Adams
                                               ---------------------------------
                                               Name: George Adams
                                               Title: Senior Vice President

                                            EAST WEST BANK

                                            By:    /s/ Nancy A. Moore
                                               ---------------------------------
                                               Name: Nancy A. Moore
                                               Title: Senior Vice President

                                      S-3
<PAGE>

                                                                       EXHIBIT A

                            REAFFIRMATION AND CONSENT

                           Dated as of March 26, 2002

               Each of the undersigned, a Subsidiary of Liberty Livewire
Corporation that has entered into one or more Loan Documents (as defined in the
Credit Agreement referred to in the foregoing Amendment No. 2), hereby consents
to said Amendment and hereby reaffirms and agrees that (i) such Loan Documents
are, and shall continue to be, in full force and effect and are hereby ratified
and confirmed in all respects except that, upon the effectiveness of, and on and
after the date of, such Amendment No. 2, each reference in such Loan Documents
to the "Credit Agreement", "thereunder", "thereof" or words of like import shall
mean and be a reference to the Credit Agreement as amended by said Amendment,
and (ii) the Loan Documents to which the undersigned is a party and all of the
Collateral described therein do, and shall continue to, secure the payment of
all Obligations.

                                         10 MOONS AT POP, INC.

                                         4MC COMPANY 3, INC.

                                         4MC RADIANT, INC.

                                         4MC-BURBANK, INC.

                                         525 HOLDINGS, INC.

                                         525 STUDIOS, INC.

                                         525 STUDIOS, LLC

                                         A.F. ASSOCIATES, INC.

                                         AFA PRODUCTS GROUP, INC.

                                         AMERICAN SIMULCAST CORP.

                                         ANDERSON VIDEO COMPANY

                                         ANGAROLA, INC.

                                         ANS ACQUISITION SUB, INC.

                                         ATLANTIC SATELLITE COMMUNICATIONS, INC.

                                         AUDIO PLUS VIDEO INTERNATIONAL, INC.

                                         CABANA CORP.

                                         CATALINA TRANSMISSION CORP.

                                         CINRAM-POP DVD CENTER LLC

                                         COMPANY 11 PRODUCTIONS

                                         COMPANY 3 NEW YORK, INC.

                                         DIGITAL DOCTORS LLC

                                         DIGITAL MAGIC COMPANY

<PAGE>

                                         DIGITAL SOUND & PICTURE, INC.

                                         FILMCORE EDITORIAL LOS ANGELES LLC

                                         FILMCORE EDITORIAL SAN FRANCISCO LLC

                                         FOUR MEDIA COMPANY

                                         GWNS ACQUISITION SUB, INC.

                                         HOLLYWOOD SUPPLY COMPANY

                                         INTERNATIONAL POST FINANCE LIMITED

                                         INTERNATIONAL POST LEASING LIMITED

                                         IPL 235 CORP.

                                         LIBERTY LIVEWIRE LLC

                                         LIBERTY SEG ACQUISITION SUB, LLC

                                         LIVEWIRE NETWORK SERVICES, LLC

                                         MANHATTAN TRANSFER/EDIT, INC.

                                         MERIDIAN SOUND CORP.

                                         MERIDIAN SOUND, LLC

                                         MODERN MUSIC MAGIC, LLC

                                         MSCL, INC.

                                         POP ANIMATION

                                         SANTA MONICA FINANCIAL, INC.

                                         SOUND ONE CORPORATION

                                         SOUNDELUX HOLLYWOOD II, LLC

                                         SOUNDELUX HOLLYWOOD III, LLC

                                         SYMPHONIC VIDEO LLC

                                         THE POST EDGE, INC.

                                         THE TRIUMPH SWITCH COMPANY LLC

                                         TODD-AO AMUSEMENT PRODUCTION SERVICES,
                                         LLC

                                         TODD-AO DIGITAL IMAGES

                                         TODD-AO DVD, INC.

                                         TODD-AO EUROPE HOLDING COMPANY LIMITED

                                         TODD-AO HOLLYWOOD DIGITAL

                                         TODD-AO PRESERVATION SERVICES

<PAGE>

                                         TODD-AO PRODUCTIONS, INC.

                                         TODD-AO STUDIOS

                                         TODD-AO STUDIOS EAST, INC.

                                         TODD-AO STUDIOS WEST

                                         TODD-AO VIDEO SERVICES

                                         TODD-AO, ESPANA

                                         TRIUMPH COMMUNICATIONS & FIBER
                                         SERVICES, LLC

                                         TRIUMPH COMMUNICATIONS & LEASING
                                         SERVICES INC.

                                         TRIUMPH COMMUNICATIONS INC.

                                         VIDEO RENTALS, INC.

                                         VIDEO SERVICES CORPORATION

                                         VINE STREET MAGIC, LLC

                                         VISUALIZE

                                         VSC CORPORATION

                                         VSC EXPRESS COURIER, INC.

                                         VSC EXPRESS COURIER, LLC

                                         VSC LIMA CORP.

                                         VSC MAL CORP.

                                         VSDD ACQUISITION CORP.

                                         WATERFRONT COMMUNICATIONS CORPORATION

                                         Each By:      /s/ William E. Niles
                                                   -----------------------------
                                                   Name: William E. Niles
                                                   Title: Vice President<PAGE>
                                                                    EXHIBIT 10.2

                              EMPLOYMENT AGREEMENT

        This Employment Agreement (the "Agreement"), dated as of March 25, 2002,
is entered into by and between Liberty Livewire Corporation, a Delaware
corporation (the "Company"), and Aidan P. Foley ("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
President or Managing Director of the Company's Consulting Group and Executive
Vice President, Business Development of the Company.

        1.2 Term. Subject to Article IV below, Executive's employment hereunder
shall be for a term of five (5) years commencing as of March 25, 2002, and
expiring at the close of business on March 24, 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. 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 or of charitable organizations, 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.

<PAGE>

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

        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 $375,000
(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 Bonus.

        (a) Target Bonus. In addition to the Base Salary, Executive may earn
additional bonus compensation payable on an annual basis, with a target of fifty
percent (50%) of Executive's Base Salary for such period (the "Target Bonus"),
provided that specific economic performance objectives established for Executive
to achieve for such year (the "Benchmarks") have been equaled or exceeded. The
Benchmarks for the Target Bonus shall be established in writing on an annual
basis by the Company's Chief Executive Officer and Chief Financial Officer after
consultation with Executive. For the avoidance of any doubt, the term "Target
Bonus" in this Section 2.3 shall refer to the total amount of the bonus for
which Executive is eligible in a given year of the Term, rather than the amount
of the bonus, if any, actually earned by Executive for such period.

        (b) Executive Incentive Plan. In addition to the Base Salary and the
Target Bonus, Executive may also 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 "Bonus Plan"). The criteria on which
awards under any such Bonus Plan are based shall be set by the Board or the
Compensation Committee of the Board.

               In order for Executive to be eligible to participate in the Bonus
Plan during a particular year of the Term, the annual target bonus set under the
Bonus Plan for Executive (disregarding the existence of the Target Bonus) for
that year (the "Plan Target") must exceed fifty percent (50%) of his Base
Salary. If, in fact, the Plan Target for a given year exceeds fifty percent
(50%) of Executive's Base Salary, then Executive's total possible bonus
compensation for that year shall be equal to (i) the Target Bonus, plus (ii) the
difference between the Plan Target and the Target Bonus (the "Incremental
Bonus"), with the Target Bonus based on the

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<PAGE>

Benchmarks, and the Incremental Bonus based on the criteria set by the Board of
Directors or the Compensation Committee under the Bonus Plan. If the Plan Target
for a given year is equal to or less than fifty percent (50%) of Base Salary,
then Executive's total possible bonus compensation for that year shall be equal
to the Target Bonus alone, and Executive shall not be eligible to receive any
additional bonus compensation under, or participate in, the Bonus Plan for that
year.

               By way of illustration, and not as a limitation, if the Plan
Target for a given year during the Term was set at seventy-five percent (75%) of
Base Salary, then Executive would be eligible to earn, in the aggregate, bonus
compensation for the applicable year in an amount of up to seventy-five percent
(75%) of Executive's Base Salary for such period (i.e., 50% + (75% - 50%) =
75%), two-thirds of which would be based on the Benchmarks, and one-third of
which would be based on the criteria set by the Board of Directors or the
Compensation Committee under the Bonus Plan. If the Plan Target was set at
forty-five percent (45%) of Base Salary, then Executive would be eligible to
earn only the Target Bonus (i.e., up to fifty percent (50%) of Executive's Base
Salary for such period) and would not be eligible to receive any additional
bonus compensation under, or participate in, the Bonus Plan.

        2.4 Deductions. The Company shall deduct from the compensation described
in Sections 2.2 and 2.3 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.

        2.5 Disability Adjustment. Any compensation otherwise payable to
Executive pursuant to Sections 2.2 and 2.3 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 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

                                       3
<PAGE>

Company receives such verification thereof as the Company may require in order
to qualify such expenses as deductible business expenses. The Company agrees
that Executive's reasonable business expenses shall include, without limitation,
Executive's monthly membership dues at Sports Club Los Angeles.

        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 225,000 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, 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.

         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:

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<PAGE>

               (i)    If the termination takes place on or prior to December 31,
                      2002, 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 after December 31, 2002,
                      but on or prior to June 30, 2004, 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., after June 30, 2004), 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.

                                   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)

                                       5
<PAGE>

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 ten (10) 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 Executive's monthly Base Salary would
                      have been due and payable hereunder had such termination
                      not occurred (the "Severance Period"); and

               (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

                                       6
<PAGE>

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; provided, however, that notwithstanding the foregoing, following
such termination of employment, Executive shall be entitled to full
indemnification as an officer of the Company as provided under Delaware law and
the Company's Certificate of Incorporation, Bylaws, policies and directors' and
officers' liability insurance.

        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; (b) the relocation by the
Company of Executive's principal place of employment to a location more than 50
miles from such principal place of employment; or (c) 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.

        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;

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<PAGE>

               (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 (the
                      "Disability Severance Period").

               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.

               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.

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<PAGE>

        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
                      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.

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<PAGE>

        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 ideas, concepts,
research, processes, and plans. "Confidential Information" does not include
information that is in the public domain, information that is generally known or
becomes known in the trade, or information that Executive can show 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

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<PAGE>

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) have an economic interest in, or be 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) (the activities described in the foregoing subsections (a) and (b)
shall be collectively referred to hereinafter as "Competition with the
Company"); 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.

               Without limiting the foregoing, in the event that Executive
desires, during the Severance Period or the Disability Severance Period (as
those terms are defined in Section 4.2(b) and Section 4.4(c), respectively), to
directly or indirectly engage in Competition with the Company, the Company and
Executive hereby acknowledge and agree that Executive shall be free to engage in
such Competition with the Company, provided that (A) Executive shall immediately
inform the Company in writing (the "Competition Notice") that he intends to
engage in Competition with the Company, and (B) as of the date Executive first
engages in Competition with the Company, the Company shall have no obligation to
make any of the payments that remain payable by the Company under Section
4.2(b), 4.3, or 4.4(c) above. Until such time (if any) as the Competition Notice
is delivered to the Company, Executive covenants that he shall not compete with
the Company in violation of this Section 5.3.

        5.4    Non-Solicitation.

               5.4.1 Executive shall not, for a period of one (1) year 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.

                                       11
<PAGE>

               5.4.2 Executive shall not, for a period of one (1) year 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 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

                                       12
<PAGE>

other party set forth below or to such other address as may be specified by
notice given in accordance with this Section 6.2:

               (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:  Legal Department
                      Fax No.:  (310) 434-7005

               (b)    If to Executive:

                      Aidan P. Foley
                      9654 Wendover Drive
                      Beverly Hills, CA  90210

        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

                                       13
<PAGE>

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 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.

                                       14
<PAGE>

        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.

        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/  Robert T. Walston
                                           -------------------------------------
                                           Robert T. Walston
                                           President and Chief Executive Officer

                                       "EXECUTIVE"

                                            /s/ Aidan P. Foley
                                       -----------------------------------------
                                           Aidan P. Foley

                                       15

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