Document:

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                                                                   EXHIBIT 10.60

                               ADVISORY AGREEMENT

     AGREEMENT, dated as of December 31, 2001, by and between Intervisual Books,
Inc., a California corporation (the "Corporation"), and Wardenclyffe Group, Inc.
(the "Consultant").

                              W I T N E S S E T H :
                               - - - - - - - - - -

     WHEREAS, the Corporation and Intervisual Partners, LLC (the "Investor")
have entered into a Series A Preferred Stock Purchase Agreement, of even date
herewith, pursuant to which the Investor proposes to acquire certain shares of
the Corporation's newly designated Series A Preferred Stock (the "Purchase
Agreement");

     WHEREAS, upon completion of such acquisition, the Corporation will require
certain consultancy services from the Consultant;

     WHEREAS, the Consultant desires to supply consultancy services to the
Corporation upon the terms and conditions set forth herein; and

     WHEREAS, it is a condition to the closing of the Purchase Agreement that
the Consultant and the Corporation enter into this Agreement providing for the
Consultant to supply the consultancy services described herein to the
Corporation.

     NOW, THEREFORE, the parties hereto agree as follows:

     1.   Duties.

          (a)  The Corporation hereby engages Consultant and Consultant hereby
agrees to render services as a consultant to the Corporation for the term
specified in Section 2 hereof.

          (b)  Consultant shall, at all reasonable times and as reasonably
required, provide the Corporation with regular and customary public relations
and strategic advisory services. Consultant's duties may include, but will not
necessarily be limited to, providing:

               (i)  advice regarding, and assistance in, the formation of
          corporate goals and their implementation;

               (ii) advice regarding, and the development of, the Corporation's
          business plan and its implementation and evolution;

               (iii) advice regarding the financial structure of the Corporation
          and its subsidiaries;

               (iv) advice regarding corporate organization and structure, and
          identification and retention of personnel;

<PAGE>

               (v)  assistance with respect to investor relations; and

               (vi) assistance with respect to identification and retention of
          financial analysts.

          Consultant shall provide such services and shall devote such time and
attention as the Corporation and the Consultant shall reasonably agree shall be
necessary or desirable for the performance of Consultant's duties as a
consultant when called upon to do so by the Corporation, provided that the
Corporation shall not require that Consultant's services be performed at any
particular place or at any particular time.

     2.   Term. The term of this Agreement shall commence on the date hereof and
shall continue for a period of one (1) year thereafter (the "Term") unless
sooner terminated pursuant to Section 8 of this Agreement.

     3.   Independent Contractor. Consultant is an independent contractor.
Nothing contained in this Agreement shall be deemed or construed to create a
joint venture, partnership, principal-agent or employment relationship between
the parties. Consultant expressly acknowledges and agrees that it shall have no
authority to, and that it shall not, enter into any contract or agreement on
behalf of the Corporation, bind the Corporation in any manner, or otherwise act
as, or hold itself out as, an agent of the Corporation.

     4.   Compensation. For all services to be rendered hereunder by
Consultant, the Corporation agrees to compensate the Consultant as follows:

          (a)  Monthly Fee: The Corporation agrees to pay the Consultant a
monthly fee equal to Two Thousand Dollars ($2,000), payable monthly in arrears
on the last business day of each month.

          (b)  Finder's Fee: In the event that the Consultant, or an agent,
representative or other designee of the Consultant, first introduces to the
Corporation a third party, and as a result of such introduction, during the Term
or within three (3) months thereafter, such third party acquires, directly from
the Corporation, debt or equity securities of the Corporation, the Consultant
shall be entitled to a fee in the aggregate amount of 7% of the aggregate
consideration received by the Corporation from such third party.

     5.   Right of First Refusal to Act as Investment Banker. The Consultant
shall have the right of first refusal to act as the Corporation's investment
banker with respect to all strategic decisions of the Corporation, including,
but not limited to, mergers, acquisitions, divestitures and joint ventures;
provided, however, that in order to exercise such right of first refusal
Consultant must have all necessary licenses. The Consultant agrees that
Consultant's compensation for its services as the Corporation's investment
banker shall not exceed an amount that would have otherwise been paid by the
Corporation for comparable services of a reputable investment banking firm.

     6.   Expenses. The Corporation shall reimburse Consultant for all
reasonable and necessary out-of-pocket expenses of Consultant incurred in
connection with the services

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being rendered to the Corporation hereunder, subject to presentation of
appropriate vouchers, bills or similar documentation, and provided that any such
expenses in excess of $5,000 shall be agreed in advance by the Corporation in
writing.

     7.   Nondisclosure and Ownership of Proprietary Information.

          (a)  Definition of Proprietary Information. Consultant hereby
acknowledges that Consultant shall or may make use of, acquire, create, develop
or add to certain confidential and/or proprietary information regarding the
Corporation and its business (whether in existence prior to, as of or after the
date hereof, collectively, "Proprietary Information"), which Proprietary
Information shall include, without limitation, all of the following materials
and information (whether or not reduced to writing and whether or not patentable
or protected by copyright): inventions, processes, formulae, programs, technical
data, "know-how," procedures, manuals, confidential reports and communications,
marketing methods, product sales or cost information, new product ideas or
improvements, new packaging ideas or improvements, research and development
programs, identities or lists of suppliers, vendors, or other customers,
financial information and financial projections of the Corporation of any nature
whatsoever, or any other trade secrets or confidential or proprietary
information relating to the Corporation and/or its business. Consultant (i)
shall hold all such Proprietary Information in the strictest confidence, (ii)
shall cause its employees and agents to hold all such Proprietary Information in
the strictest confidence, and (iii) agrees not to use, copy, or otherwise
replicate any Proprietary Information of the Corporation.

          (b)  Ownership. Consultant acknowledges and agrees that all right,
title and interest in and to any Proprietary Information shall be and shall
remain the exclusive property of the Corporation. Without limiting the
foregoing, Consultant shall assign to the Corporation any and all right, title
and interest which Consultant may have in all Proprietary Information made,
developed or conceived of in whole or in part by Consultant during its
engagement hereof. Consultant agrees to make all necessary disclosures and
execute, acknowledge and deliver all instruments and perform all acts reasonably
requested by the Corporation to effectuate the assignment provided for in the
previous sentence.

          (c)  Return of Information. Upon the termination of this Agreement for
any reason or upon request of the Corporation, all Proprietary Information,
intellectual property, discoveries and trade secrets, together with all copies
of the same, shall be returned to the Corporation.

          (d)  Representations and Warranties. Consultant represents and
warrants that all work and materials or portions thereof delivered by Consultant
in connection with Consultant's services to the Corporation shall be original,
shall be solely of Consultant's authorship and design and shall not infringe
upon the rights of any other person or party.

     8.   Termination. Notwithstanding any provision of this Agreement to the
contrary, this Agreement may be terminated under any of the following
circumstances:

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          (a)  The Corporation may terminate this Agreement at any time, with or
without a Cause, effective upon written notice thereof to Consultant. As used
herein, "Cause" shall mean the breach by Consultant of any of its material
obligations under of this Agreement, which breach shall remain uncured for
thirty (30) days after written notice thereof from the Corporation to
Consultant.

          (b)  Consultant may terminate this Agreement at any time for Good
Reason, effective upon written notice thereof to the Corporation. As used
herein, "Good Reason" shall mean the breach by the Corporation of any of its
material obligations under this Agreement, which breach shall remain uncured for
thirty (30) days after written notice thereof from Consultant to the
Corporation.

          (c)  Upon termination of this Agreement pursuant to this Section 8,
the Consultant shall be entitled to all amounts or benefits to be paid or
provided by the Corporation under this Agreement up to the date of termination.
In addition, and in lieu of any and all other rights or remedies which
Consultant would or might have, if this Agreement is terminated prior to the end
of the Term, either by the Corporation for any reason other than Cause or by
Consultant for Good Reason, Consultant shall also be entitled to receive, as its
sole and exclusive remedy, in a single lump sum, an amount equal to the total
additional compensation which Consultant would have been entitled to receive had
there been no termination of this Agreement prior to the expiration of the Term.

     9.   No Set-Offs, etc. Except as expressly set forth in this Agreement, no
amounts agreed to be paid or benefits agreed to be furnished by the Corporation
under this Agreement shall be subject to any deduction, diminution or set off of
any kind whatsoever.

     10.  Binding Effect and Assignment. This Agreement shall be binding upon
and insure to the benefit of the Corporation, its successors and permitted
assigns and the Consultant, its successors and permitted assigns. No assignment
of this Agreement shall be valid unless consented to in writing by the
non-assigning party.

     11.  Waivers. The failure of any party to this Agreement to enforce its
terms and provisions or covenants shall not be construed as a waiver of the same
or of the right of such party to enforce the same.

     12.  Entire Agreement. This Agreement sets forth the entire Agreement
between the parties with respect to its subject matter and merges and supersedes
all prior discussions, agreements and understandings of every kind and nature
between them, including, without limitation, any other agreement with any third
party for the supply of Consultant's services to the Corporation. No party
hereto shall be bound by any term or condition other than as expressly set forth
or provided for in this Agreement. This Agreement may not be changed or modified
except by an agreement in writing, signed by the party or parties to be bound
thereby.

     13.  Notices. All notices, requests, demands and other communications
provided for, under, or made in connection with this Agreement, shall be in
writing and shall be deemed to have been given by any party hereto at the time
when delivered by hand against the

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appropriate receipt, or sent by facsimile transmission or mailed by registered
or certified mail or the equivalent thereof, addressed to the addresses of the
respective parties stated below, or as changed or added as any party may fix in
accordance with this Section 13.

               If to the Corporation:

                  Intervisual Books, Inc.
                  2716 Ocean Park Boulevard, Suite 2020
                  Santa Monica, California  90405

               If to the Consultant:

                  Wardenclyffe Group, Inc.
                  18 East 50th Street, 10th Floor
                  New York, New York  10022

     14.  Governing Law. This Agreement shall be governed by and construed in
all respects in accordance with the laws of the State of California without
regard to its conflict of law principles.

     15.  Counterparts. This Agreement may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an
original, but all such counterparts together shall constitute one and the same
instrument. Facsimile signatures shall be deemed original for all purposes.

     16.  Condition to Effectiveness. The effectiveness of this Agreement is
specifically conditioned upon the release from escrow to the Company of
$1,600,000 at the Second Closing (as defined in the Purchase Agreement) as
provided for in the Purchase Agreement. The parties acknowledge that unless such
sum is released from escrow to the Company at the Second Closing this Agreement
shall be null and void and of no further effect.

                            [signature page follows]

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                     [SIGNATURE PAGE TO ADVISORY AGREEMENT]

               IN WITNESS WHEREOF this Agreement has been entered into the day
and year first above written.

                                               INTERVISUAL BOOKS, INC.,
                                               a California corporation

                                               By: /s/ Waldo H. Hunt
                                                  -----------------------------
                                               Name: Waldo H. Hunt
                                               Title: Chairman of the Board

                                               WARDENCLYFFE GROUP, INC.

                                               By:  /s/ Douglas S. Ellenoff
                                                  -----------------------------
                                               Name: Douglas S. Ellenoff
                                               Title: President

                                      -6-<PAGE>
                                                                   EXHIBIT 10.61

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered into effective as
of the 1st day of December 31, 2001, between INTERVISUAL BOOKS, INC., a
California corporation (the "Company"), and WALDO H. HUNT (the "Executive").

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

     A.   Executive has agreed to continue to be employed by the Company as its
Chairman of the Board Emeritus.

     B.   The Board of Directors of the Company (the "Board") believes that the
continued employment of Executive by the Company will contribute to the growth
and success of the Company. The Board desires to provide for the employment of
Executive and to make Executive's employment arrangements in the best interest
of the Company and its shareholders so as to encourage Executive's attention and
dedication to the Company. Executive is willing to commit himself to serve the
Company, on the terms and conditions herein provided.

                               A G R E E M E N T:
                                - - - - - - - - -

     NOW, THEREFORE, in consideration of the promises and covenants set forth
below, the parties hereto agree as follows:

     1.   Employment.

     The Company hereby agrees to employ Executive, and Executive hereby agrees
to accept employment with the Company, on the terms and conditions set forth
herein.

     2.   Term.

          The employment of Executive by the Company as provided in this
Agreement will commence on December 31, 2001, and shall end on December 31,
2003, unless further extended or sooner terminated as hereinafter provided.

     3.   Position and Duties.

          Executive shall serve as Chairman of the Board Emeritus.

     4.   Compensation and Related Matters.

          (a)  Salary. For the period of December 31, 2001 through December 31,
2002, the Company shall pay to the Executive a salary of $165,000 per annum
unless adjusted as provided herein in semi-monthly installments in accordance
with the Company's regular payroll policies. For the period of December 31, 2001
through December 31, 2002, the Company shall pay to the Executive a salary of
$175,000

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per annum unless adjusted as provided herein in semi-monthly installments in
accordance with the Company's regular payroll policies.

          (b)  Expenses. During the term of Executive's employment hereunder,
Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by Executive in performing services hereunder, including all
expenses of travel and living expenses when away from home on business at the
request of and in the service of the Company, provided that such expenses are
incurred and accounted for in accordance with the policies and procedures from
time to time established by the Company.

          (c)  Other Benefits. During the term of Executive's employment
hereunder, Executive shall be entitled to participate in the Company's 401(k)
plan, or such other plans established by the Company, and any general health
disability insurance plans from time to time generally applicable to executives
of the Company to the extent generally permitted by the terms of such plans.

          (d)  Vacations. Executive shall be entitled to five (5) weeks
(twenty-five (25) business days) of mandatory vacation during any calendar year
during the term hereof, subject to proration for employment for less than the
entire calendar year.

          (e)  Services Furnished. The Company shall furnish Executive with
office space and such other facilities and services as shall be reasonably
suitable to Executive's position and reasonably adequate for the performance of
Executive's duties as set forth in Section 3 hereof.

          (f)  Automobile Allowance. During Executive's employment hereunder,
the Company shall pay to Executive an automobile allowance of $600 per month,
which automobile may be used by Executive for both personal and business
purposes. Executive shall conform to the Company's policies regarding the use of
such automobile.

     5.   Offices.

          During Executive's employment hereunder, Executive agrees to serve
without additional compensation as a director of the Company and, if elected or
appointed thereto, as a director of its subsidiaries (if any) and in one or more
executive offices of any of the Company's subsidiaries.

     6.   Confidential Information.

          Executive acknowledges that by virtue of his employment with the
Company, he has knowledge of certain information which is confidential and
proprietary to the Company ("Proprietary Information"). Such information
includes, but is not limited to, (i) financial, legal, corporate, manufacturing,
marketing, competitive and other information available only to top management,
directors and officers of the Company; (ii) any and all other information
related to the Company of which Executive may become aware but which is not
generally known to outsiders; and (iii) other trade secrets which the Company
owns.

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          Executive shall not disclose any Proprietary Information directly or
indirectly, either during or after his employment with the Company, without the
prior written consent of the Board of Directors of the Company. All such
Proprietary Information, including without limitation, all files, records,
documents, specifications, equipment, customer lists and similar items relating
to the business of the Company, whether prepared by Executive or otherwise
coming into his possession, shall remain the sole and exclusive property of the
Company.

          The parties hereto acknowledge that the extensive "pop up" book
collection, both antique and contemporary, which constitutes part of The Hunt
Museum and all of the related display cases are the sole property of the Hunt
Museum and the Company has no rights of ownership to the books or display cases
which constitute a part of the collection of the Hunt Museum. This paragraph
shall survive any termination of this Agreement.

     7.   Termination and Benefits Upon Termination.

          Executive's employment hereunder may be terminated without any breach
of this Agreement, under the following circumstances:

          (a)  Death.

               (1)  Executive's employment hereunder shall terminate
automatically upon Executive's death.

               (2)  If Executive's employment is terminated because of
Executive's death pursuant to this Section 7(a), then the Company shall have no
further obligation or liability to Executive except the Company shall pay to
Executive's spouse, or if Executive leaves no spouse, to Executive's estate, (i)
the portion of Executive's salary which has been earned up to the Date of
Termination in accordance with this Agreement, and (ii) reimbursement for
business expenses properly incurred up to the Date of Termination (collectively
the "Minimum Payments").

          (b)  Disability.

               (1)  If, as a result of Executive's incapacity due to physical or
mental illness, Executive shall have been absent from his duties hereunder on a
full-time basis for an entire period of one hundred twenty (120) consecutive
days, and within ten (10) days after written notice of termination is given by
the Company to Executive (which may occur before or after the end of such one
hundred twenty (120) day period), Executive shall not have returned to the
performance of his duties hereunder on a full-time basis, the Company may
terminate Executive's employment hereunder pursuant to this Section 7(b).

          During any period of time during which the Executive fails to perform
Executive's duties hereunder as a result of incapacity due to physical or mental
illness and prior to such time as Executive's employment is terminated,
Executive shall continue to receive his full salary at the rate then in effect
for such period until his employment is terminated pursuant to this Section
7(b), provided that the payments so made to Executive during any period of
disability or incapacity shall be reduced by the sum of the amounts,

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if any, paid or payable to Executive at or prior to the time of any such payment
of salary under disability benefit plans of the Company and which were not
otherwise previously applied to reduce any such payment.

               (2)  If Executive's employment is terminated because of
Executive's incapacity or disability pursuant to this Section 7(b), then the
Company shall have no further obligation or liability to Executive, except that
(i) Executive shall be entitled to receive the Minimum Payments, and (ii) the
Company shall continue Executive's base salary for a period of the lesser of one
hundred twenty (120) days or until Executive's death. In addition, the Company
shall provide (at the Company's expense) continuation coverage for Executive
under the Company's group health plan pursuant to COBRA for a period of twelve
(12) months after Executive's termination.

          (c)  Cause.

               (1)  The Company through action of the Board may terminate
Executive's employment hereunder for "Cause." For purposes of this Agreement,
the Company shall have "Cause" to terminate Executive's employment hereunder
upon:

     (i)  The willful and continued failure by Executive substantially to
          perform his duties hereunder (other than any such failure resulting
          from Executive's incapacity due to physical or mental illness), after
          demand for substantial performance is delivered by the Board of
          Directors that specifically identifies the manner in which the Board
          of Directors believes Executive has not substantially performed his
          duties; or

     (ii) The willful engaging by Executive in misconduct which is materially
          injurious to the Company, monetarily or otherwise, including the
          misuse of any Proprietary Information (as that term is defined in
          Section 6 hereof).

          For purposes of this subsection, no act or failure to act on
Executive's part shall be considered "willful" unless done, or omitted to be
done, by him not in good faith and without reasonable belief that his action or
omission was in the best interest of the Company. Notwithstanding the foregoing,
Executive shall not be deemed to have been terminated for Cause without (A)
reasonable notice to Executive setting forth the reasons for the Company's
intention to terminate for Cause, (B) an opportunity for Executive, together
with his counsel, to be heard before the Board, and (C) delivery to Executive of
a Notice of Termination (as defined in subsection (e) hereof) from the Board
finding that in the good faith opinion of the Board, Executive was guilty of
conduct constituting Cause within the meaning of this subsection (c) and
specifying the particulars thereof in detail.

               (2)  If Executive's employment hereunder is terminated for Cause
pursuant to this Section 7(c), then the Company shall have no further obligation
or liability to Executive, except that Executive shall be entitled to receive
the Minimum Payments.

                                      -4-
<PAGE>

          (d)  Termination by Company Other Than for Death, Disability, or
Cause.

               (1)  The Company shall, for any reason, be entitled to terminate
Executive's employment hereunder at any time other than on account of
Executive's death or disability and without Cause pursuant to this Section 7(d).

               (2)  If Executive's employment hereunder is terminated by the
Company pursuant to this Section 7(d), the Company shall have no further
obligation or liability to Executive, except that (i) Executive shall be
entitled to receive the Minimum Payments, and (ii) the Company shall pay to
Executive a severance payment consisting of the lesser of the sum of the Salary
payments due as of the date of termination under the remaining term of this
agreement or twelve (12) months of Executive's then current annual salary in
effect on termination. Such severance shall be payable in equal monthly
installments over the great of the remaining term of this agreement or a 12
month period after termination. In addition, the Company shall provide (at
Company's expense) continuation coverage for Executive under the Company's group
health plan pursuant to COBRA for a period of twelve (12) months after
Executive's termination.

          (e)  Termination by Executive for Good Reason.

               (1)  Executive may terminate Executive's employment hereunder for
Good Reason (as defined below) pursuant to this Section 7(e).

          For purposes of this Agreement, "Good Reason" shall mean (A) the
failure by the Company to comply with any material provision of this Agreement
which has not been cured within forty-five (45) days after notice of such
non-compliance has been given by Executive to the Company, (B) any purported
termination of Executive's employment by the Company, except pursuant to
subsections 7(a), 7(b), 7(c) or 7(d) hereof or (C) without Executive's express
written consent, the assignment to Executive of any duties which would
constitute a material reduction in the importance of Executive's position,
authority or responsibilities as contemplated by Section 3 hereof or any other
material adverse change in such position, authority and responsibility.

               (2)  If Executive's employment hereunder is terminated by
Executive for Good Reason pursuant to this Section 7(e), then the Company shall
have no further obligation or liability to Executive, except (i) the Executive
shall be entitled to receive the Minimum Payments, and (ii) the Company shall
pay to Executive a severance payment the lesser of the sum of the Salary
payments due as of the date of termination under the remaining term of this
agreement or twelve (12) months of Executive's then current annual salary in
effect on termination. Such severance shall be payable in equal monthly
installments over the greater of the remaining term of this agreement or a 12
month period after termination. In addition, the Company shall provide (at the
Company's expense) continuation coverage for Executive under the Company's group
health plan pursuant to COBRA for a period of twelve (12) months after
Executive's termination.

          (f)  Resignation by Executive.

               (1)  Executive shall be entitled to terminate his Employment for
any reason at any time on thirty (30) days prior written notice delivered by
Executive to Company pursuant to this Section 7(f).

                                      -5-
<PAGE>

               (2)  If Executive's employment is terminated by Executive
pursuant to this Section 7(f), the Company shall have no further obligation or
liability to Executive, except (i) that Executive shall be entitled to receive
the Minimum Payments.

          (g)  Notice of Termination. Any termination of Executive's employment
by the Company or by Executive (other than termination for death pursuant to
subsection 7(a) above) shall be communicated by written a Notice of Termination
to the other party hereto. For purposes of this Agreement, "Notice of
Termination" shall mean a notice which shall indicate the specific termination
provision in this Agreement relied upon, shall set forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of
Executive's employment under the provisions so indicated and shall set forth the
Date of Termination.

          (h)  Date of Termination. "Date of Termination" shall mean (i) if
Executive's employment is terminated by death, the date of death, (ii) if
Executive's employment is terminated by disability, the date of the
determination of the disability, or (iii) if Executive's employment is
terminated for any other reason, thirty (30) days after Notice of Termination is
given.

     8.   Additional Covenants.

          (a)  No Duty to Mitigate. Executive shall not be required to mitigate
the amount of any payment provided for in Section 7 by seeking other employment.

          (b)  Excess Parachute Payment. Notwithstanding anything in this
Agreement to the contrary, if and to the extent (but only to the extent) that
any payment made under this Agreement shall constitute an "excess parachute
payment" under Section 28OG of the Internal Revenue Code as currently in effect
(or, if at the time of any such "excess parachute payment" said Section 28OG
shall have been amended to provide more favorable treatment to Executive without
materially adversely affecting the Company under said amended Section 28OG),
such payment shall be reduced or extended over a longer period of time to the
extent necessary to reduce such "excess parachute payment" to zero.

     9.   Specific Performance.

          In the event of the breach by Executive of any of the provisions of
Section 6 hereof, the Company, in addition and supplementary to all other rights
and remedies existing in its favor and notwithstanding the provisions of Section
10 hereof, may apply to any court of law or equity of competent jurisdiction for
specific performance and/or injunctive or other relief in order to enforce or
prevent any violations of the provisions thereof.

     10.  Arbitration.

          The parties hereto acknowledge that it is in their best interests to
facilitate the informal resolution of any disputes arising out of this Agreement
or otherwise by mutual cooperation and without resorting to litigation. As a
result, if any party has a dispute arising hereunder or otherwise, including,
but not limited to, any claim for breach of any contract or covenant (express or
implied), any dispute regarding Executive's

                                      -6-
<PAGE>

termination of employment from the Company, tort claims, claims for harassment
or discrimination (including, but not limited to, race, sex, religion, national
origin, age, handicap or disability), claims for compensation or benefits
(except where a benefit plan or pension plan or insurance policy specifies a
different claims procedure) and claims for violation of any federal, state or
other governmental law, statute, regulation or ordinance (except for claims
involving workers' compensation benefits), and the parties are unable to reach
agreement among themselves, then a settlement conference must be held within
thirty (30) days upon receipt of a notice by the complaining party describing in
detail the complaint and setting forth a proposed solution to the complaint. The
settlement conference will be held in any Los Angeles, California office of the
Judicial Arbitration and Mediation Services, Inc. ("JAMS"). The complaining
party must contact JAMS to schedule the conference and the parties must agree on
a retired judge from the JAMS panel. If the parties are unable to agree upon
such a retired judge, JAMS shall provide a list of three available judges and
each party may strike one judge. The remaining judge will serve as the mediator
at the settlement conference.

          If the dispute is not settled by the above-described format, the
parties agree to submit the dispute to JAMS for binding arbitration. A
three-judge panel will be selected to arbitrate the dispute. JAMS will provide
the names of five potential arbitrators, giving each party the opportunity to
strike one name. The remaining three arbitrators will serve as the arbitration
panel. The parties agree that the arbitration must be initiated within the time
period of the statute of limitations applicable to the claim(s) if the claim(s)
had been filed in Court. Arbitration may be initiated by the aggrieved party by
sending written notice of an intent to arbitrate by registered certified mail to
all parties and to JAMS. The notice must contain a description of the dispute,
the amount involved and the remedies sought. If and when a demand for
arbitration is made by either party, the parties agree to execute a Submission
Agreement provided by JAMS, setting forth the rights of the parties if the case
is arbitrated and rules and procedures to be followed at the arbitration
hearing.

          Nothing contained in this Section 10 shall prevent the Company from
seeking and obtaining equitable relief in a court to enforce any of its rights
under Section 6 hereof.

     11.  Representation by Counsel.

          Executive acknowledges that he has been represented by legal counsel
in connection with this Agreement and has consulted with such legal counsel. The
Company shall reimburse Executive for all reasonable attorneys' fees and
expenses actually incurred by Executive, but not to exceed $6,000, in connection
with the negotiation and preparation of this Agreement.

     12.  Successors; Binding Agreement.

          (a)  The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company, by agreement in
form and substance satisfactory to Executive, to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place.
Failure of the Company to obtain such agreement prior to the effectiveness of
any such succession shall be a breach of this Agreement and shall

                                      -7-
<PAGE>

entitle Executive to compensation from the Company in the same amount and on the
same terms as he would be entitled to hereunder if he terminated his employment
for Good Reason, except that for purposes of implementing the foregoing, the
date on which any such succession becomes effective shall be deemed the Date of
Termination. As used in this Agreement, "Company" shall mean the Company as
herein before defined and any successor to its business and/or assets as
aforesaid which executes and delivers the agreement provided for in this Section
12 or otherwise becomes bound by all the terms and provisions of this Agreement
by operation of law.

          (b)  This Agreement and all rights of Executive hereunder shall inure
to the benefit of and be enforceable by Executive's personal or legal
representatives, executors, administrators, successors, heirs, distributes,
devisees and legatees. If Executive should die while any amounts would still be
payable to him hereunder if he had continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to Executive's devisee, legatee or other designee, or, if there be no
such designee, to Executive's estate.

     13.  Notice.

          For purposes of this Agreement, notices, demands and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or (unless otherwise specified)
mailed by United States registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

               If to Executive:     Waldo H. Hunt
                                    16130 High Valley Place
                                    Encino, California 91436

               If to Company:       Intervisual Books, Inc.
                                    2716 Ocean Park Blvd., #2020
                                    Santa Monica, California 90405
                                    Attention: President

or to such other address as any party may have furnished to the others in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

     14.  Miscellaneous.

          No provisions of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing signed by
Executive and by such officer of the Company as may be specifically designated
by the Board. No waiver by either party hereto at any time of any breach by the
other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. This Agreement, together with the documents referenced herein,
contains the entire agreement of the parties hereto with respect to the subject
matter hereof. It supersedes any and all other agreements, either oral or in
writing, between the parties hereto with respect to the employment of Executive
by the Company. No agreements or representations, oral or otherwise, express or

                                      -8-
<PAGE>

implied, with respect to the subject matter hereof have been made by either
party which are not set forth expressly in this Agreement. The validity,
interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of California.

     15.  Validity.

          The invalidity or unenforceability of any provision or provisions of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

     16.  Counterparts.

          This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

     17.  Survivability.

          The provisions in Sections 4(f), 6, 8, 9 and 10 of this Agreement
shall survive any termination of this Agreement.

     18.  Attorneys' Fees.

          In the event of any dispute arising out of the subject matter of this
Agreement, the prevailing party shall be entitled to recover from the
nonprevailing party its reasonable costs and expenses (including reasonable
attorneys' fees) incurred in arbitrating or otherwise resolving such dispute.

     19.  Withholding of Taxes; Tax Reporting.

          The Company may withhold from any amounts payable under this Agreement
all such Federal, state, city and other taxes, and may file with appropriate
governmental authorities all such information, returns or other reports with
respect to the tax consequences of any amounts payable under this Agreement, as
may, in its reasonable judgment, be required by law.

     20.  Office Space.

          After the termination of this Agreement, the Company agrees to provide
Executive with office space and reasonable access to phone, photocopying, and
other office equipment and resources. This provision shall survive any
termination of this Agreement.

     21.  Termination.

          This Agreement shall terminate and be of no force or effect unless
$1,600,000 is released to the Company at the Second Closing (as defined in
Series A Preferred Stock Purchase Agreement between Intervisual Partners, LLC
and the Company dated December 31, 2001 (the "Purchase Agreement")), as provided
for in the Purchase Agreement. The parties acknowledge that unless such sum is
released from escrow to the

                                      -9-
<PAGE>

Company at the Second Closing, this Agreement shall be null and void and of no
further effect.

                            [signature page follows]

                                      -10-
<PAGE>

                     SIGNATURE PAGE TO EMPLOYMENT AGREEMENT

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

"Company"                           INTERVISUAL BOOKS, INC., a
                                    California corporation

                                    By: /s/ Larry Nusbaum
                                       ----------------------------------------
                                            Larry Nusbaum
                                            CEO

"Executive"                                 /s/ Waldo H. Hunt
                                       ----------------------------------------
                                            Waldo H. Hunt

                                      -11-

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