Document:

RESTRICTED STOCK AGREEMENT

             THIS  RESTRICTED  STOCK  AGREEMENT  is made as of the  25th  day of
August, 2000, between Audio Visual Services Corporation,  a Delaware corporation
(hereinafter called the "Corporation"), and ________________, an employee of the
Corporation or one of its subsidiaries (hereinafter called the "Participant").

             WHEREAS,  the  Corporation  desires  to  give  the  Participant  an
opportunity  to  participate  in the  long-term  growth  of the  Corporation  by
awarding to the Participant shares of the Corporation's  common stock, par value
$0.01 per share (the "Restricted Stock"),  pursuant to the terms, conditions and
restrictions  of the  Corporation's  Amended and Restated 1996 Stock Option Plan
(as may otherwise be amended or restated from time to time, the "Plan") and this
Agreement.

         NOW,  THEREFORE,  in consideration of the mutual covenants  hereinafter
set forth and for other good and valuable consideration, the receipt of which is
hereby acknowledged, the parties agree as follows:

         1. Grant of  Restricted  Stock.  The  Corporation  hereby grants to the
Participant an aggregate of ________  shares (the "Shares") of Restricted  Stock
on the terms and subject to the conditions herein set forth. The Shares shall be
subject to the terms, conditions and restrictions set forth in the Plan and this
Agreement,  provided  that the  Participant's  right to the Shares  shall become
non-forfeitable  and shall vest one hundred percent (100%) on April 4, 2002 (the
"Vesting Date").

         2.   Nontransferability.   The  Shares  granted  hereby  shall  not  be
transferable  by the  Participant,  whether  voluntarily  or  involuntarily,  by
operation of law or  otherwise,  until on or after the Vesting  Date,  except as
otherwise provided in the Plan or in this Agreement. More particularly, prior to
the Vesting Date, the Shares may not be sold, transferred, pledged, assigned, or
otherwise  alienated or  hypothecated  in any way,  shall not be  assignable  by
operation  of  law,  and  shall  not  be  subject  to   execution,   attachment,
garnishment,  lien or similar  process.  Any attempted sale,  transfer,  pledge,
assignment,  hypothecation or other disposition of any of the Shares contrary to
the provisions hereof, and the levy of any execution,  attachment,  garnishment,
lien or similar  process  upon the  Shares,  shall be null and void and  without
effect.  If  a  sale,  assignment,  pledge,  transfer,  hypothecation  or  other
disposition,

<PAGE>

voluntary  or  involuntary,  of any of  the  Shares  shall  be  made,  or if any
execution,  attachment,  garnishment,  lien or other encumbrance shall be issued
against or placed upon any of the Shares,  then the  Participant's  right to the
Shares  shall   immediately  cease  and  terminate  and  the  Participant  shall
immediately forfeit to the Corporation all Shares awarded under this Agreement.

         3. Disclosure and Risk.

          (a) The  Participant  represents  and warrants to the  Corporation  as
follows:

     (i)  The  Participant  acknowledges  that  (A) the  Shares  have  not  been
          registered  for resale under the  Securities  Act of 1933,  as amended
          (the "Securities Act"), and (B) the Corporation is under no obligation
          to effect the registration under the Securities Act of the Shares.

     (ii) The Shares are being acquired by the Participant for the Participant's
          own account,  for  investment and not with a view to, or for resale in
          connection  with, any  distribution or public offering  thereof within
          the meaning of the Securities Act.

    (iii) The Corporation has made  available to the Participant the opportunity
          to ask questions of the officers and management of the Corporation and
          to acquire  information about the business and financial  condition of
          the Corporation  and has all information  necessary for him to make an
          informed investment decision.

     (iv) He has received a copy of the Plan.

          (b) Each certificate representing the Shares will be endorsed with the
following or substantially similar legends:

                  "RESTRICTIONS  ON THE  OWNERSHIP  AND  TRANSFER  RIGHTS OF THE
                  SHARES  REPRESENTED  BY THIS  CERTIFICATE  HAVE  BEEN  IMPOSED
                  PURSUANT TO THE CORPORATION'S  AMENDED AND RESTATED 1996 STOCK
                  OPTION PLAN (THE  "PLAN") AND A  RESTRICTED  STOCK  AGREEMENT,
                  DATED AUGUST 25,  2000. A COPY OF THE PLAN AND THE  RESTRICTED
                  STOCK  AGREEMENT  ARE ON FILE AT THE  PRINCIPAL  OFFICE OF THE
                  CORPORATION AND WILL BE

                                      -2-
<PAGE>

                  FURNISHED WITHOUT CHARGE TO  THE  HOLDER OF THIS  CERTIFICATE
                  UPON RECEIPT  BY  THE   CORPORATION   AT  ITS PRINCIPAL PLACE
                  OF  BUSINESS  OR REGISTERED  OFFICE OF A WRITTEN REQUEST FROM
                  THE HOLDER REQUESTING SUCH COPY."

                  "THE SECURITIES  EVIDENCED BY THIS  CERTIFICATE  HAVE NOT BEEN
                  REGISTERED  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED (THE
                  "SECURITIES  ACT"), OR UNDER ANY APPLICABLE  STATE  SECURITIES
                  LAWS,  AND MAY NOT BE SOLD,  TRANSFERRED,  ASSIGNED,  PLEDGED,
                  HYPOTHECATED  OR OTHERWISE  DISPOSED OF UNLESS (i) THERE IS AN
                  EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT
                  COVERING SUCH SECURITIES,  OR (ii) THE CORPORATION  RECEIVES A
                  WRITTEN   OPINION   FROM  COUNSEL  FOR  THE  HOLDER  OF  THESE
                  SECURITIES,   REASONABLY   SATISFACTORY  TO  THE  CORPORATION,
                  STATING  THAT  SUCH  SALE,   TRANSFER,   ASSIGNMENT,   PLEDGE,
                  HYPOTHECATION  OR OTHER  DISPOSITION  MAY BE MADE  PURSUANT TO
                  RULE 144 PROMULGATED  UNDER THE SECURITIES ACT OR IS OTHERWISE
                  EXEMPT  FROM  THE   REGISTRATION   AND   PROSPECTUS   DELIVERY
                  REQUIREMENTS  OF  THE  SECURITIES  ACT  AND  APPLICABLE  STATE
                  SECURITIES LAWS."

         The  Corporation  need not allow a transfer of any of the Shares unless
one  of  the  conditions  specified  in  the  immediately  preceding  legend  is
satisfied. The Corporation may also instruct its transfer agent not to allow the
transfer of any of the Shares unless one of the conditions specified in the such
legend is satisfied.

         Any legend endorsed on a certificate pursuant to the foregoing language
and the stop transfer instructions with respect to such Shares shall be removed,
and the  Corporation  shall promptly issue a certificate  without such legend to
the holder thereof if (i) the Shares are registered under the Securities Act and
a prospectus  meeting the  requirements  of Section 10 of the  Securities Act is
available  and has been  delivered or (ii) the holder  provides the  Corporation
with a written  opinion from  counsel for such holder of the Shares,  reasonably
satisfactory  to  the  Corporation,   to  the  effect  that  a  sale,  transfer,
assignment,  pledge,

                                       -3-

<PAGE>

hypothecation  or  other   disposition  of  such  Shares  may  be  made  without
registration.

                  4.  Share   Certificates;   Rights  as  a   Stockholder.   The
Corporation  or its designee  shall retain in the  Corporation's  possession the
certificates  representing the Shares of Restricted Stock until the later of the
Vesting Date or such other date as all conditions and/or restrictions applicable
to the Shares have been satisfied. In addition to the foregoing, the Corporation
may require the  Participant  to execute and deliver to the  Corporation a stock
power in blank in respect of the Shares.  The Corporation  shall have the right,
in its sole  discretion,  to  exercise  such  stock  power in the event that the
Corporation becomes entitled to the Shares pursuant to paragraph 5 hereof.

         Notwithstanding  the foregoing,  during the period from the date hereof
until the  Vesting  Date (the  "Period of  Restriction"),  the  Participant  may
exercise  full voting rights with respect to the shares and may be credited with
regular cash  dividends  paid with respect to the Shares while they are so held.
The  Compensation  Committee  (the  "Committee")  of the Board of Directors (the
"Board") of the Corporation may apply any  restrictions to the dividends that it
deems appropriate.

         5. Termination of Employment Prior to Vesting Date; Disability; Death.

          (a) In the event that the Participant shall cease to be an employee of
the  Corporation  prior to the  Vesting  Date for any reason  other than  death,
Disability,  termination  with or without Cause,  or resignation for Good Reason
(each as defined below),  the Shares of Restricted Stock granted hereunder shall
be forfeited  immediately by the  Participant  and be of no force or effect.  So
long as the Participant shall continue to be an employee of the Corporation, the
Shares shall not be affected by any change of duties or position.

          (b) In the event of Disability of the Participant prior to the Vesting
Date, the Period of Restriction and any other restrictions imposed on the Shares
hereunder shall lapse and all Shares of Restricted Stock granted hereunder shall
vest and become  non-forfeitable.  "Disability"  shall mean any  termination  of
employment with the Corporation or a subsidiary  because of a long-term or total
disability, as determined by the Committee in its sole discretion.

                                      -4-

<PAGE>

          (c) In the  event  of the  death  of the  Participant  while  he is an
employee of the  Corporation  or any  subsidiary  prior to the Vesting Date, the
Period of Restriction and any other restrictions imposed on the Shares hereunder
shall lapse and all Shares of Restricted Stock granted  hereunder shall vest and
become non-forfeitable.

          (d) In the event the  Participant is terminated for Cause prior to the
Vesting Date, the Committee may, in its sole discretion,  cause the Shares to be
forfeited  by  the  Participant.  "Cause"  shall  mean:  (i)  Participant  shall
continually  fail  substantially to perform his duties hereunder with reasonable
diligence, other than by reason of incapacity or shall violate any material term
or  condition  of  his  employment  by the  Corporation  or a  subsidiary,  (ii)
Participant shall engage in an act of fraud, theft or embezzlement in connection
with his employment by the Corporation or a subsidiary,  (iii) Participant shall
engage in a  material  act or  omission  involving  wilful  misconduct  or gross
negligence  in the  performance  of  Participant's  duties as an employee of the
Corporation or a subsidiary,  (iv) Participant shall engage in a material act of
dishonesty,  (v) Participant shall  unreasonably  refuse to carry out the lawful
order of the Board or his supervisor  commensurate with Participant's  duties to
be  performed  as an  Employee  of  the  Corporation  or a  subsidiary  or  (vi)
Particpant shall be convicted of a felony involving moral turpitude (which shall
include any felony relating to drugs) or shall plead nolo contendere (or make an
equivalent plea) in respect of, any governmental indictment,  complaint or other
formal  allegation.  The  Committee  will have the sole  discretion to determine
whether  the  Participant's  termination  was for  Cause.

          (e) In the event  the  Participant  is  terminated  without  Cause (as
defined  above) or if  Participant  resigns for Good  Reason (as defined  below)
prior to the Vesting Date,  Participant  shall be permitted to retain the Shares
subject to the  restrictions  on the transfer of the Shares prior to the Vesting
Date as set forth in paragraph 2 hereof and the other  restrictions  on transfer
under applicable law. "Good Reason" shall mean: (i) a relocation of Participant,
without his prior  written  consent,  more than fifty (50) miles  outside of the
Corporation's  offices in  ___________________,  or (ii) a failure  to  maintain
Participant as _________________________ of the Corporation, or (iii) a material
diminution  by the  Corporation  of the  Participant's  responsibilities,  which
change would cause the Participant's position with the Corporation to become one
of significantly  less  responsibility or scope from that currently  occupied by
the Participant.

                                      -5-

<PAGE>

         6. Change of Control.

          (a) In the event of a "Change  of  Control"  of the  Corporation,  the
Period of Restriction and any other restrictions imposed on the Shares hereunder
shall  lapse,  and all the  Shares  granted  hereunder  shall  vest  and  become
non-forfeitable as of the effective date of the Change of Control.  For purposes
of this paragraph, a "Change of Control" shall be deemed to have occurred if (i)
any person or  "group"  (other  than  Warburg,  Pincus  Investors,  L.P.  or any
affiliate  thereof)  acquires,  in a single  transaction  or series  of  related
transactions,  50% or more of the outstanding  Common Stock; or (ii) the sale of
all or  substantially  all of the  assets of the  Corporation  (other  than to a
wholly-owned subsidiary of the Corporation).

          (b)  Notwithstanding  the provisions of paragraph  6.(a),  in the case
that the Corporation is merged or consolidated with another corporation,  or the
assets or stock of the  Corporation  is  acquired by another  corporation,  or a
separation,  reorganization or liquidation of the Corporation occurs, the Board,
or the Board of Directors of any  corporation  assuming the  obligations  of the
Corporation  hereunder,  shall make appropriate provisions for the protection of
the Shares by  substitution  on an equitable  basis of appropriate  stock of the
Corporation,  or  appropriate  stock of the merged,  consolidated  or  otherwise
reorganized corporation.

         7. Taxes.  The Corporation may make such provisions and take such steps
as it may deem  necessary or  appropriate  for the  withholding  of all federal,
state, local and other taxes (including  Participant's FICA obligation) required
by law to be withheld with respect to any exercise of the  Participant's  rights
under this Agreement,  including, but not limited to (i) deducting the amount of
any such withholding  taxes from any amount payable to the Participant;  or (ii)
requiring the Participant,  Designated  Beneficiary or legal  representative  to
remit to the  Corporation  the  amount  required  or  desirable  to enable it to
satisfy its  withholding  obligations as a condition of releasing the Restricted
Stock.

         8. General Provisions.

            (a) This Agreement and the rights of the  Participant  hereunder are
subject to (i) the terms and  conditions of the Plan, as the same may be amended
from time to time, as well as to such rules and regulations as the Committee may
adopt for administration of the Plan

                                      -6-

<PAGE>

and (ii) all applicable laws,  rules, and regulations,  and to such approvals by
any governmental  agencies or national securities  exchanges as may be required.
With the foregoing in mind,  the  Committee  shall have the right to impose such
restrictions  on  any  Shares  acquired  pursuant  to the  lapse  or  waiver  of
restrictions  with  respect  to  Restricted  Stock,  as it may  deem  advisable,
including, without limitation,  restrictions under applicable federal securities
laws,  under the  requirements  of any stock  exchange or market upon which such
Shares are then listed and/or traded, and under any blue sky or state securities
laws applicable to such Shares. It is expressly understood that the Committee is
authorized to administer,  construe,  and make all  determinations  necessary or
appropriate to the  administration of the Plan and this Agreement,  all of which
shall be binding upon the Participant.

            (b) The Board may  terminate,  amend or modify  the Plan;  provided,
however,  that no such  termination,  amendment or  modification of the Plan may
adversely  affect the  Participant's  rights  under this  Agreement  without the
written consent of the Participant.

            (c) To the extent not preempted by federal law, this Agreement shall
be governed by and  construed  in  accordance  with the laws of the State of New
York without regard to principles of conflicts of laws.

            (d) This  Agreement shall inure to the benefit of the successors and
assigns of the Corporation  and,  subject to the restrictions on transfer herein
set   forth,   be  binding   upon  the   Participant,   his  heirs,   executors,
administrators,  successors and assigns.

            (e) Any notice to be given  hereunder by  either  party to the other
shall be in writing and shall be given either by personal delivery, facsimile or
by mail, registered or certified,  postage prepaid, return receipt requested, or
by overnight delivery  addressed to the other party at the respective  addresses
or facsimile  numbers set forth below their signatures to this Agreement,  or at
any other  address or facsimile  number as such party may  hereafter  specify in
writing.

            (f) This  Agreement is intended to conform in all respects  with the
Plan.  Inconsistencies  between  this  Agreement  and the Plan shall be resolved
according  to the terms of the Plan,  which  shall be  deemed to  supersede  and
replace the  conflicting  terms  contained  in this  Agreement.  This  Agreement
contains the entire  understanding  between the parties

                                      -7-

<PAGE>

concerning the subject matter of contained herein. There are no representations,
agreements,  arrangements,  or  understandings,  oral or  written,  between  the
parties  hereto  relating to the subject  matter of this  Agreement that are not
fully expressed  herein.  No amendments or modifications to this Agreement shall
be binding  upon the  parties  unless  made in writing and signed by the parties
hereto.

            (g) The waiver by either  party of a breach of any term or provision
of this Agreement  shall not operate or be construed as a waiver of a subsequent
breach of the same  provision or of the breach of any other term or provision of
this Agreement.

            (h) As used herein,  the masculine gender shall include the feminine
and the neuter genders,  the neuter shall include the masculine and the feminine
genders, the singular shall include the plural, and the plural shall include the
singular.

            (i) The headings in this  Agreement  are solely for  convenience  of
reference and shall be given no effect in the construction or  interpretation of
this Agreement.

            (j)  The  invalidity  or  enforceability  of any  provision  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.

            (k) NEITHER THE PLAN NOR THIS  AGREEMENT  SHALL BE (1)  CONSTRUED AS
GIVING THE PARTICIPANT THE RIGHT TO BE RETAINED IN THE EMPLOY OF THE CORPORATION
OR ANY SUBSIDIARY  THEREOF OR TO BE ENTITLED TO ANY REMUNERATION OR BENEFITS NOT
SET FORTH IN THE PLAN OR THIS AGREEMENT OR (2) INTERFERE WITH OR LIMIT THE RIGHT
OF THE CORPORATION OR ANY SUBSIDIARY THEREOF TO MODIFY THE TERMS OF OR TERMINATE
THE PARTICIPANT'S EMPLOYMENT AT ANY TIME WITH OR WITHOUT CAUSE.

                                      -8-

<PAGE>

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

                                            PARTICIPANT

                                            ------------------------------
                                             Name:
                                             Social Security No.:

                                             Home Address:
                                             -----------------------------
                                             -----------------------------
                                             -----------------------------

                                             Home Telephone: -------------

                                             Work Address:----------------
                                             -----------------------------
                                             -----------------------------
                                             -----------------------------

                                             Work Telephone:--------------
                                             Work Facsimile:--------------

                                             AUDIO VISUAL SERVICES CORPORATION

                                            By: --------------------------
                                                Name:  Robert K. Ellis
                                                Title: Chairman of the Board
                                                       and Chief Executive
                                                       Officer

                                      -9-

<PAGE>

                                                Address: 111 West Ocean Blvd.
                                                         Suite 1110
                                                         Long Beach, CA 90802

                                                Telephone:  (562) 366-0620
                                                Facsimile:  (562) 366-0628

                                      -10-------------------------------------------------------------------------------

                              EMPLOYMENT AGREEMENT

                                 By and Between

                        AUDIO VISUAL SERVICES CORPORATION

                                       and

                                 MICHAEL O'BRIEN

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

                              As of August 29, 2000

<PAGE>

                              EMPLOYMENT AGREEMENT

            EMPLOYMENT  AGREEMENT  (this  "Agreement"),  dated as of August  29,
2000, by and between AUDIO VISUAL SERVICES  CORPORATION,  a Delaware corporation
having an office at 111 West Ocean Boulevard, Suite 1110, Long Beach, California
90802  ("Employer"),  and MICHAEL O'BRIEN,  an individual  residing at 1937 Lake
Street, Huntington Beach, California 92648 ("Employee").

                              W I T N E S S E T H:

            WHEREAS,   Employee  is  currently  employed  in  the  Audio  Visual
Headquarters ("AVHQ") division of the Employer's  wholly-owned  subsidiary known
as Audio Visual Services Group, Inc. ("AVSG");

          WHEREAS,  Employer  desires  to  continue  to  retain  Employee  as an
employee and Employee desires to continue to provide his services to Employer in
connection with Employer's business; and

          WHEREAS,  both  parties  desire to clarify  and specify the rights and
obligations  which  each  have with  respect  to the  other in  connection  with
Employee's employment.

          NOW,  THEREFORE,  in  consideration  of the  agreements  and covenants
herein set forth, the parties hereby agree as follows:

         1.       EMPLOYMENT

          Employer  hereby employs  Employee as Chief  Executive  Officer of the
AVHQ  division of AVSG and as an  Executive  Vice  President  of  Employer,  and
Employee  hereby accepts such employment and agrees to render his services as an
employee of Employer  and AVSG,  all subject to and on the terms and  conditions
herein set forth.

         2.       DUTIES AND RESPONSIBILITIES OF EMPLOYEE

          Employee  shall  be  employed  as and  perform  the  duties  of  Chief
Executive  Officer of the AVHQ division of AVSG and as Executive  Vice President
of  Employer,  subject  to the  other  provisions  of  this  Section  2.  In the
performance of his duties,  Employee shall report to Employer's  Chief Executive
Officer or such other person as may be  designated  by the Board of Directors of
Employer.  Employee  shall use his best  efforts to  maintain  and  enhance  the
business  and   reputation   of  Employer  and  AVHQ.   Employee's   duties  and
responsibilities  shall be designated to Employee by the Chief Executive Officer
of Employer and the Board of Directors of  Employer.  Upon  Employer's  request,
Employee shall also perform similar services in an identical  capacity for (and,
if  requested,  shall hold  directorships  with) any  subsidiary  or division of
Employer  designated by the Board.  Employee shall be available to travel as the
reasonable

                                      -1-
<PAGE>

needs of Employer shall require.  Employee shall be based in Employer's  offices
located in the Southern California.

         3.       EXCLUSIVITY OF SERVICE

          Employee  agrees to  devote  all of his  business  time,  efforts  and
attention to the business and affairs of Employer on an exclusive basis, and not
to engage in any other business activities for any person or entity,  other than
personal  investment   activities  and,  subject  to  Employer's  prior  written
approval, directorships,  provided that such activities do not materially affect
the performance of Employee's duties hereunder.

         4.       COMPENSATION; BONUS

          (a) In  consideration  for his  services  to be  performed  under this
Agreement and as compensation  therefor,  Employee shall receive, in addition to
all other benefits provided in this Agreement, a base salary (the "Base Salary")
at the annual  rate of two  hundred  ninety  thousand  dollars  ($290,000).  All
payments of Base Salary  shall be payable  bi-weekly  in arrears or otherwise in
accordance with Employer's policies.

          (b) In  addition  to the Base  Salary,  Employee  shall be eligible to
receive a bonus (the "Bonus") on an annual basis.  The Bonus shall be determined
pursuant to an executive bonus plan to be formulated by Employer in consultation
with  Employee.  Employee's  "target" level Bonus will be forty percent (40%) of
his then-current Base Salary; provided, however, that the Bonus paid to Employee
may be greater or less than the  "target"  based on  Employee's  and  Employer's
performance  during the fiscal  year in respect of which the Bonus is being paid
and subject to the  above-referenced  executive bonus plan. Payment of the Bonus
shall be made in the discretion of the Board of Directors of Employer subject to
the above-referenced  executive bonus plan and is not guaranteed.  To the extent
payable,  Employer shall pay the Bonus to Employee on or about 90 days following
the end of the fiscal year in respect of which the Bonus is being paid.

          (c) Employee's Base Salary and Bonus shall be reviewed annually by the
Board and increased in the discretion of the Board of Directors of Employer.

         5.       BENEFITS

         In  addition  to the Base  Salary and Bonus  provided  for in Section 4
hereof,  Employee  shall be entitled  to the  following  benefits  during and in
respect of his employment by Employer:

          (a) Employee  will,  at  Employer's  cost and expense,  be entitled to
participate in Employer's hospitalization,  medical, dental and vision insurance
plans, as well as long-term and short-term  disability and life insurance plans,
on the same basis as other senior executive  employees of Employer in accordance
with Employer's practices and subject, in each case, to the terms and conditions
of such plans,  which shall govern Employee's  participation  therein.  Employee
will, at Employer's cost and expense, be entitled to family medical and dental

                                      -2-

<PAGE>

insurance  coverage  subject to the terms and  conditions set forth by Employer.
Employee  will  also be  entitled  to  participate  in any of  Employer's  plans
relating to vacation, sick leave, personal days, stock options, stock purchases,
pension,  thrift, profit sharing,  education or other retirement or benefit plan
that  Employer  has  adopted  or may  adopt  for the  benefit  of its  executive
officers,  officers  and/or  employees  subject,  in each case, to the terms and
conditions of such plans, which shall govern Employee's participation therein.

          (b) Employee shall be entitled to  twenty-five  (25) working days paid
vacation to be taken by Employee at times mutually and reasonably agreed upon by
Employer and Employee in addition to all other  holidays  established as part of
Employer's standard  practices.  No payment shall be made to Employee for unused
vacation  days  nor may  such  days be  carried  over to  future  years  without
Employer's consent.

          (c) Employee  shall be entitled to  reimbursement  for all  reasonable
travel,  entertainment and other reasonable expenses incurred in connection with
Employer's business,  provided that such expenses are adequately  documented and
vouchered in accordance with Employer's policies.

          (d) Employee  shall be provided with an automobile in accordance  with
Employer's  policies.  Employer  will pay all  costs  incurred  by  Employee  in
connection with Employee's normal use of his automobile  (except for those which
Employee is entitled to reimbursement pursuant to Section 5(c) hereof).

         6.       AT-WILL STATUS

          Notwithstanding anything to the contrary contained herein and, subject
to Employer's  obligations  contained herein,  Employee shall be employed by the
Company as an "employee  at-will" and that as such,  Employee's  employment with
Employer may be terminated at any time for any reason or no reason whatsoever.

         7.       CONFIDENTIALITY; INVENTIONS; PRODUCT DEVELOPMENT, ETC.

          (a) Employee agrees and covenants that, at any time during  employment
by  Employer  (which,  for  purposes of  Sections 7 and 8 hereof  shall  include
Employer's  subsidiaries  and  affiliates) or  thereafter,  he will not (without
first  obtaining  the written  permission  of  Employer)  (i) at any time during
employment by Employer and thereafter  divulge to any person or entity,  nor use
(either  himself  or  in  connection   with  any  business)  any   "Confidential
Information"  (as  hereinafter  defined in Section  7(c) hereof) and (ii) at any
time during  employment  by Employer  and  thereafter,  divulge to any person or
entity,  nor use (either  himself or in connection with any business) any "Trade
Secrets"  (as  hereinafter  defined in Section 7(c) hereof) to which he may have
had access or which had been revealed to him during the course of his employment
unless

                                      -3-
<PAGE>

such disclosure is pursuant to a court order, disclosure in litigation involving
the  Employer or in any reports or applications required by law to be filed with
any governmental agency.

          (b)  Employee  hereby  grants to Employer or its nominee all rights of
every kind  whatsoever,  exclusively  and  perpetually,  in and to all  services
performed, products created and product ideas conceived by Employee for Employer
or its nominee,  and hereby agrees, upon Employer's request therefor,  to assign
and transfer to Employer or its nominee, any and all inventions,  Trade Secrets,
product ideas, improvements,  processes, Confidential Information and "know how"
relating to the business or products of Employer or any  subsidiary  or division
thereof,  including  any thereof  which  Employee may learn,  possess or acquire
during  Employee's  employment by Employer,  and agrees that all such things and
such knowledge are, and will be, the sole and exclusive  property of Employer or
its nominee,  and are known or held by Employee only for the benefit of Employer
or its nominee.

          (c) As used in this  Agreement,  the term  "Confidential  Information"
shall  mean and  include  all  information  and data in  respect  of  Employer's
operations,  financial condition,  products,  customers and business (including,
without limitation, artwork, photographs,  specifications,  facsimiles, samples,
business,   marketing  or  promotional  plans,  creative  written  material  and
information relating to characters,  concepts, names, trademarks and copyrights)
which may be  communicated  to Employee or to which  Employee may have access in
the course of Employee's employment by Employer.  Notwithstanding the foregoing,
the term "Confidential Information" shall not include information which:

   (i) is, at the time of the disclosure, a part of the public domain through no
       act or omission by Employee;

  (ii) was otherwise in Employee's lawful possession prior to the disclosure; or

 (iii) is  hereafter  lawfully  disclosed  to  Employee by a third party who or
       which   did   not   acquire  the  information  under  an  obligation  of
       confidentiality to or through Employer.

          As used in this  Agreement,  the term "Trade  Secrets"  shall mean and
include  information,  without  regard to form,  including,  but not limited to,
technical or non-technical data, a formula, a pattern, a compilation, a program,
a device, a method, a technique, a drawing, a process, financial data, financial
plans,  product plans,  or a list of actual or potential  customers or suppliers
which is not commonly known by or available to the public and which  information
(i) derives  economic value,  actual or potential,  from not being known to, and
not being readily ascertainable by proper means by, other persons who can obtain
economic  value from its  disclosure  or use; and (ii) is the subject of efforts
that are reasonable under the circumstances to maintain its secrecy.

         Any  combination  of  known  information  shall  be  within  any of the
foregoing exclusions only if the combination as such is within such exclusions.

                                      -4-
<PAGE>

         Nothing in this  Section 7 shall limit any  protection,  definition  or
remedy provided to Employer under any law,  statute or legal principle  relating
to Confidential Information or Trade Secrets.

         (d) Employee  agrees that at the time of leaving the employ of Employer
he will  deliver to Employer  and not keep or deliver to anyone else any and all
notes, notebooks,  drawings,  memoranda,  documents, and in general, any and all
material relating to the business of Employer (except Employee's  personal files
and  records)  or  relating  to  any  employee,   officer,  director,  agent  or
representative of Employer.

         8.       NON-COMPETITION; NON-SOLICITATION

         (a) Employee hereby agrees and covenants that commencing as of the date
hereof  and for a  period  of one (1)  year  following  the  termination  of his
employment  with  Employer  (the  "Limited  Period")  he will  not  directly  or
indirectly  engage  in or become  interested  (whether  as an owner,  principal,
agent,  stockholder,   member,  partner,  trustee,  venturer,  lender  or  other
investor,  director, officer, employee,  consultant or through the agency of any
corporation,  limited liability  company,  partnership,  association or agent or
otherwise) in any business or enterprise that shall, at the time, be in whole or
in substantial part competitive with any material part of the business conducted
by Employer  during the period of Employee's  employment  with Employer  (except
that ownership of not more than 1% of the outstanding securities of any class of
any entity  that are listed on a national  securities  exchange or traded in the
over-the-counter market shall not be considered a breach of this Section 8(a)).

         (b) Employee  agrees and covenants  that for the Limited Period he will
not (without  first  obtaining the written  permission of Employer)  directly or
indirectly participate in the solicitation of any business of any type conducted
by Employer  during the period of Employee's  employment  with Employer from any
person or entity which was a client or customer of Employer during the period of
Employee's  employment with Employer,  or was a prospective customer of Employer
from which  Employee  (or  employees  under  Employee's  supervision)  solicited
business or for which a proposal for submission  was prepared  during the period
of Employee's employment with Employer.

         (c) Employee  agrees and covenants  that for the Limited Period he will
not (without  first  obtaining the written  permission of Employer)  directly or
indirectly,  recruit for  employment,  or induce or seek to cause such person to
terminate  his or his  employment  with  Employer,  any  person  who  then is an
employee of Employer.

         9.       TERMINATION

         (a)  CAUSE.  In  the  event  that  Employer   discharges  Employee  and
terminates  this  Agreement   because  (i)  Employee  shall   continually   fail
substantially to perform his duties hereunder with reasonable  diligence,  other
than by reason of  incapacity,  or shall  violate any

                                      -5-
<PAGE>

material covenant of his herein contained,  (ii) Employee shall engage in an act
of fraud,  theft or embezzlement  in connection  with his employment  hereunder,
(iii)  Employee  shall  engage in a material  act or omission  involving  wilful
misconduct or gross  negligence in the  performance of Employee's  duties,  (iv)
Employee  shall  engage in a material  act of  dishonesty,  (v)  Employee  shall
unreasonably refuse to carry out the lawful order of Employer  commensurate with
Employee's duties to be performed  hereunder or (vi) Employee shall be convicted
of a felony involving moral turpitude,  (which shall include any felony relating
to drugs) or shall plead nolo contendere (or make an equivalent plea) in respect
of,  any  governmental   indictment,   complaint  or  other  formal  allegation,
Employee's  Base Salary and Bonus under Section 4 hereof and all benefits  under
Section 5 hereof shall  terminate  immediately  upon such discharge  (subject to
applicable law such as COBRA),  and Employer shall have no further obligation to
Employee except the payment to and  reimbursement to Employee for any monies due
to  Employee  which  right to payment  or  reimbursement  accrued  prior to such
discharge.

         (b) DEATH. This Agreement shall terminate immediately upon the death of
Employee,  in which case Employee's legal  representatives  shall be entitled to
receive promptly a payment equal to four (4) months Base Salary.

         (c) TERMINATION WITHOUT CAUSE; GOOD REASON.  Notwithstanding  Section 6
of this  Agreement,  if Employee is discharged  and this Agreement is terminated
without Cause (Cause being defined as a reason for  termination  as set forth in
Section 9(a) above) or by reason other than as set forth in Section 9(b) hereof,
or if Employee resigns for Good Reason (as hereinafter defined),  Employer shall
pay to Employee (i) for a period of 12 months, the Base Salary (as determined by
the Base  Salary  being  paid to  Employee  at the time of such  termination  or
resignation,  as the case may be) as such sums  become  due (or,  at  Employer's
election,  in a lump sum giving effect to the present  value of such  payments);
and (ii) the Bonus to which  Employee  may be  entitled  in respect  only of the
fiscal year of Employer in which such  termination or  resignation  (as the case
may be) occurs  (prorated by reference to the number of days actually  worked by
Employee in such fiscal  year).  For purposes of this  Agreement,  "Good Reason"
shall mean (i) a relocation of Employee, without his prior written consent, more
than fifty (50) miles outside of Employer's offices in Southern  California,  or
(ii) a failure to maintain  Employee as an Executive  Vice President of Employer
and Chief Executive Officer of AVHQ, or (iii) a material  diminution by Employer
of Employee's  responsibilities,  which change would cause  Employee's  position
with Employer to become one of significantly  less  responsibility or scope from
that  contemplated by Section 2 hereof, or (iv) a wilful failure in bad faith to
pay the Base Salary or Bonus to Employee when due or another  material breach of
this Agreement by Employer that has a material adverse effect on Employee.

         10.      VIOLATION OF OTHER AGREEMENTS

         Employee represents and warrants to Employer that he is legally able to
enter into this Agreement and accept employment with Employer;  that Employee is
not  prohibited  by the terms of any  agreement,  understanding  or policy  from
entering into this  Agreement;  and the terms hereof will not and do not violate
or  contravene  the  terms of any  agreement,  understanding  or

                                      -6-
<PAGE>

policy  to which  Employee  is or may be a party,  or by which  Employee  may be
bound.  Employee  agrees that,  as it is a material  inducement to Employer that
Employee make the foregoing representations and warranties and that they be true
in all respects,  Employee  shall forever  indemnify and hold Employer  harmless
from and against all liability, costs or expenses (including attorney's fees and
disbursements) on account of the foregoing representations being untrue.

         11.      SPECIFIC PERFORMANCE; DAMAGES

         In the event of a breach or  threatened  breach  of the  provisions  of
Sections 7 or 8 hereof,  Employee agrees that the injury which would be suffered
by Employer  would be of a character  which could not be fully  compensated  for
solely by a recovery of monetary damages.  Accordingly,  Employee agrees that in
the event of a breach or threatened breach of Section 7 or 8 hereof, in addition
to and not in lieu of any damages  sustained by Employer and any other  remedies
which Employer may pursue hereunder or under any applicable law,  Employer shall
have the  right to  equitable  relief,  including  issuance  of a  temporary  or
permanent  injunction,  by any  court  of  competent  jurisdiction  against  the
commission or continuance of any such breach or threatened  breach,  without the
necessity  of proving any actual  damages or posting of any bond or other surety
therefor.  In addition  to, and not in  limitation  of the  foregoing,  Employee
understands and confirms that, in the event of a breach or threatened  breach of
Section 7 or 8 hereof,  Employee may be held financially  liable to Employer for
any loss suffered by Employer as a result.

         12.      NOTICES

Any and all notices, demands or requests required or permitted to be given under
this  Agreement  shall be given in writing and sent,  by registered or certified
U.S. mail, return receipt requested, by hand, or by overnight courier, addressed
to the parties hereto at their addresses set forth above or such other addresses
as they may from  time-to-time  designate  by written  notice or, in the case of
Employee,  which Employer maintains as Employee's  address,  given in accordance
with the terms of this  Section.  Notice given as provided in this Section shall
be deemed effective: (i) on the date hand delivered,  (ii) on the first business
day following the sending thereof by overnight courier, and (iii) on the seventh
calendar day (or, if it is not a business day, then the next succeeding business
day thereafter)  after the depositing  thereof into the exclusive custody of the
U.S. Postal Service.

         13.      WAIVERS

         No waiver by any party of any default  with  respect to any  provision,
condition  or  requirement  hereof  shall be  deemed to be a waiver of any other
provision,  condition or requirement  hereof; nor shall any delay or omission of
any party to exercise any right  hereunder in any manner  impair the exercise of
any such right accruing to it thereafter.

                                      -7-
<PAGE>

         14.      PRESERVATION OF INTENT

         Should any provision of this  Agreement be determined by a court having
jurisdiction  in the premises to be illegal or in conflict  with any laws of any
state or  jurisdiction or otherwise  unenforceable,  Employer and Employee agree
that such provision shall be modified to the extent legally possible so that the
intent of this Agreement may be legally carried out.

         15.      ENTIRE AGREEMENT

         This   Agreement   sets  forth  the  entire  and  only   agreement   or
understanding  between the parties  relating  to the subject  matter  hereof and
supersedes and cancels all previous agreements, negotiations, letters of intent,
correspondence,  commitments and  representations  in respect thereof among them
(including,  without  limitation,  (i) the Statement of Terms and  Conditions of
Employment, dated February 18, 1997, between Employee and Visual Action Holdings
plc (a wholly  owned  subsidiary  of Employer)  and (ii) that certain  agreement
between Employer and Employee regarding the payment of up to $750,000 to be made
to Employee  in the event of a change of control of  Employer  or AVHQ),  and no
party   shall  be  bound  by  any   conditions,   definitions,   warranties   or
representations  with respect to the subject matter of this Agreement  except as
provided in this Agreement.

         16.      INUREMENT; ASSIGNMENT

         The rights and obligations of Employer under this Agreement shall inure
to the benefit of and shall be binding upon any  successor of Employer or to the
business of Employer, subject to the provisions hereof. Employer may assign this
Agreement to any person,  firm or  corporation  controlling,  controlled  by, or
under common  control with  Employer.  Neither this  Agreement nor any rights or
obligations  of  Employee  hereunder  shall be  transferable  or  assignable  by
Employee.

         17.      AMENDMENT

         This  Agreement  may  not  be  amended  in  any  respect  except  by an
instrument in writing signed by the parties hereto.

         18.      HEADINGS

         The headings in this Agreement are solely for  convenience of reference
and shall be given no  effect  in the  construction  or  interpretation  of this
Agreement.

         19.      COUNTERPARTS

         This Agreement may be executed in any number of  counterparts,  each of
which shall be deemed an original,  but all of which when taken  together  shall
constitute one and the same instrument.

                                       -8-

<PAGE>

         20.      GOVERNING LAW

         This  Agreement  shall  be  governed  by,  construed  and  enforced  in
accordance  with the internal laws of the State of  California,  without  giving
reference to principles of conflict of laws.

                                      -9-

<PAGE>

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

                            EMPLOYEE:

                            By:/s/ Michael J. O'Brien
                               ----------------------
                               Michael J. O'Brien

                            Employer:

                            AUDIO VISUAL SERVICES
                            CORPORATION

                            By:/s/ Robert K. Ellis
                               --------------------
                                Robert K. Ellis
                                Chief Executive Officer

                                      -10-

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