Document:

<PAGE>

                                                                   EXHIBIT 10.18

June 15, 1998

Averil Associates, Inc.
833 17th Street, Suite Six
Santa Monica, CA  90403
Attn: Diana L. Maranon

Ladies and Gentlemen:

In connection with your engagement as our financial advisor pursuant to a letter
agreement, dated June 15, 1998 (as such agreement may be amended from time to
time, the "Agreement"), between you and us, we hereby agree to indemnify and
hold harmless you and your affiliates, and your respective directors, officers,
agents, employees and controlling persons, and each of their respective
successors and assigns (collectively, the "indemnified persons"), to the full
extent lawful, from and against all losses, claims, damages, liabilities and
expenses (or actions in respect thereof) that are related to or arise out of (i)
actions or alleged actions taken or omitted to be taken (including any untrue
statements made or any statements omitted to be made) by us or any of our
affiliates, directors, officers, employees or agents, (ii) actions or alleged
actions taken or omitted to be taken by an indemnified person (including acts or
omissions constituting ordinary negligence) pursuant to the terms of, or in
connection with services rendered pursuant to or in accordance with the terms
of, the Agreement or any transaction or proposed transaction contemplated
thereby or any indemnified person's role in connection therewith, or (iii) any
untrue statement or alleged untrue statement of a material fact contained in any
offering materials or in any amendment or supplement thereto, or any omission or
alleged omission of a material fact required to be stated therein or necessary
to make the statements therein not misleading. We will not be responsible,
however, for any losses, claims, damages, liabilities or expenses pursuant to
clause (ii) of the preceding sentence that are finally judicially determined to
have resulted primarily from the gross negligence or willful misconduct of the
person seeking indemnification hereunder. We also agree that (i) no indemnified
person shall have any liability to us or any of our affiliates, directors,
officers, employees or agents except for losses, claims, damages, liabilities or
expenses incurred by us in connection with the transaction that are finally
judicially determined to have resulted primarily from the gross negligence or
willful misconduct of such indemnified person; and (ii) in no event shall the
indemnified persons' aggregate liability in connection with such losses, claims,
damages, liabilities and expenses exceed the fees you actually receive from us
pursuant to the Agreement.

Promptly after receipt by an indemnified person of notice of any complaint or
the commencement of any action or proceeding with respect to which
indemnification is being sought hereunder, such person will notify us in writing
of such complaint or of the commencement of such action or proceeding. We will
not, without the prior written consent of you, settle or compromise or consent
to the entry of any judgment in any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not you or any other indemnified person is an actual or
potential party to such claim, action, suit or proceeding).

We agree that if any indemnification sought by an indemnified person pursuant to
this letter agreement is held by a court to be unavailable for any reason other
than as specified in the second sentience of the first paragraph of this letter
agreement, then we will contribute to the losses, claims, damages, liabilities
and expenses for which such indemnification is held unavailable (i) in such
proportion as is appropriate to reflect the relative benefits to us, on the one
hand, and you, on the other hand, in connection with your engagement referred to
above, or (ii) if the allocation provided by clause (i) above in this paragraph
is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) in this
paragraph, but also the relative fault of us, on the one hand, and you, on the
other hand, as well as any other relevant equitable considerations; PROVIDED
HOWEVER, that in any event the aggregate contribution by all indemnified persons
to all losses, claims, damages, liabilities and expenses with respect to which
contribution is available hereunder will not exceed the amount of fees actually
received by you from us pursuant to your engagement referred to above. It is
hereby agreed that for purposes of this paragraph, the relative benefits to us,
on the one hand, and you, on the other hand, with respect to your engagement
shall be deemed to be in the same proportion as (i) the total value paid or
proposed to be paid or received by us or our stockholders, as the case may be,
pursuant to the transaction, whether or not
<PAGE>

consummated, for which you are engaged to render financial advisory services,
bears to (ii) the fee paid or proposed to be paid to you in connection with such
engagement. It is agreed that it would not be just and equitable if contribution
pursuant to this paragraph were determined by pro rata allocation or by any
other method which does not take into account the considerations referred to in
this paragraph.

We further agree that we will promptly reimburse you and any other indemnified
person hereunder for all expenses (including fees and disbursements of counsel)
as they are incurred in connection with investigating, preparing or defending
any pending or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder, whether or not in
connection with pending or threatened litigation in which any indemnified person
is a party; PROVIDED, HOWEVER; that we will have the right to mutually determine
legal counsel to represent you and any other indemnified person hereunder and
will have the right to manage any such legal process, so long as such management
does not adversely impair, hinder or otherwise jeopardize the rights or defense
of you or any other indemnified person hereunder.

Our indemnity, contribution and other obligations under this letter agreement
shall be in addition to any rights that you or any other indemnified person may
have at common law or otherwise, and shall be binding on our successors and
assigns.

We hereby consent to personal jurisdiction, service and venue in any court in
which any claim which is subject to, or which may give rise to a claim for
indemnification or contribution under, this letter agreement is brought against
you or any other indemnified person.

This letter agreement shall be deemed made in California. This letter agreement
and all controversies arising from or relating to performance under this letter
agreement shall be governed by and construed in accordance with the laws of the
State of California, without giving effect to such state's rules concerning
conflicts of laws. ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY CLAIM OR
ACTION ARISING OUT OF THIS LETTER AGREEMENT OR ANY ENGAGEMENT OF YOU IS HEREBY
WAIVED.

It is understood that, in connection with your above-mentioned engagement, you
may also be engaged in writing to act in one or more additional capacities, and
that the terms of the original engagement or any such additional engagement may
be embodied in one or more separate written agreements. The provisions of this
letter agreement shall apply to the original engagement, related activities
prior to the date of the original engagement, any such additional written
engagement and any modification of the original engagement or such additional
written engagement and shall remain in full force and effect following the
completion or termination of your engagement(s).

                                       Sincerely,

                                       FUTURE MEDIA PRODUCTIONS

                                       By:________________________
                                          Alex Sandel

                                       Dated:_____________________

Accepted:

AVERIL ASSOCIATES, INC.

By:_______________________
   Diana L. Maranon

Dated:____________________<PAGE>

                                                                   EXHIBIT 10.19

June 15, 1998

Mr. Alex Sandel
President
Future Media Productions
25136 Anza Drive
Valencia, California 91355

Dear Mr. Sandel:

1.    This letter confirms our understanding that Future Media Productions,
      Inc. (the "Company") has engaged Averil Associates, Inc. ("Averil") as
      financial advisor to the Company regarding its strategic and financing
      alternatives with respect to an initial public offering (the
      "Engagement").  It is anticipated that the scope of this retention will
      take the following form:

      (A)    Averil will act as financial advisor to the Company with respect
             to the consideration and implementation of its strategic
             alternatives.  As part of this assignment, Averil will (i) study
             and evaluate the short-term and long-term projected financial
             performance and capital needs of the Company, (ii) develop
             valuation perspectives regarding the Company, reflecting
             appropriate strategic, industry and macroeconomic
             considerations, (iii) as a result of Averil's diligence, and in
             conjunction with management analysis, work with management in
             developing a strategic financing plan for the Company; (iv) work
             with management in contacting and negotiating with potential
             underwriters in line with the financing plan, (v) review various
             structural and tax considerations applicable to a transaction
             impacting the Company, (vi) coordinate all financial and legal
             advisors involved in the transactional process, and (vii) assist
             in the preparation, execution and the closing of all aspects of
             an initial public offering.

      (B)    A transaction may include the Company or any of its affiliates,
             including (without limitation) a new entity formed for such
             purpose (collectively, the "Entities").

2.    The Company shall pay to Averil, as compensation for services under this
      Engagement, as follows:

      (A)    RETAINER.  A non-refundable retainer fee of $35,000, payable
             upon execution of this letter agreement.

      (B)    TRANSACTION FEES.  In the case of a transaction, a transaction
             fee of .75% of the consideration raised, payable in cash, at the
             closing (or, if more than one, at each closing) of a transaction
             in line with the Company's business plan, by wire transfer or
             certified bank check; PROVIDED HOWEVER, the retainer fee payable
             pursuant to the first paragraph of Section 2(A) above, shall be
             credited against any transaction fees payable pursuant to this
             paragraph.
<PAGE>

             In addition to the cash fees payable pursuant to the above
             paragraph, the Company shall issue to Averil, at no cost,
             additional equity securities, warrants or other participating
             interests in the Company (or, if applicable, another Entity)
             representing .25% of the consideration raised in value, priced
             in accordance with the Black Scholes option model, to be issued
             upon consummation of the transaction and receipt of the
             consideration in cash; provided, however, the minimum amount of
             warrants issuable pursuant to this transaction shall be $50,000
             in value.  The Company will grant to Averil registration rights,
             at Averil's expense, on Form S-3, exercisable after twelve
             months following any initial public offering.

      (C)    EXPENSES.  In addition to any fees payable hereunder, the
             Company shall, whether or not a transaction shall be consummated,
             reimburse Averil as billed for its business class travel and
             other reasonable out-of-pocket expenses (including all fees and
             disbursements of counsel and of other consultants and advisors
             retained by it, messenger and duplicating services, telephone
             and facsimile expenses, document and database charges and other
             customary expenditures), incurred in connection with, or arising
             out of, Averil's activities under or contemplated by this
             engagement.  Averil shall charge all of its out-of-pocket
             expenses at its actual cost.  Aggregate total expenses shall not
             exceed $7,500; provided, however, in the event that Averil is
             asked to travel with the Company either in connection with the
             selection of underwriters or completion of the roadshow, such
             expenses shall be covered by the Company.

      (D)    DEFINITIONS.  As used herein, "transaction" shall mean any
             transaction or series or combination of transactions whereby,
             directly or indirectly, a private or public party(ies)
             (excluding Greyrock Business Credit, Alexander Sandel, Beny
             Alagem and Jason Barzilay or any entity that any of them owns or
             controls) lends or otherwise invests in any of the Entities or
             their respective affiliates or assets.  Such transaction may
             include, but shall not be limited to, placement of a term loan,
             revolver or other debt facility, subordinated debentures,
             convertible equity or other similar securities, a private or
             public financing transaction, an acquisition or exchange of
             capital stock or assets, a lease of assets with or without a
             purchase option, a merger or consolidation, the formation of a
             joint venture or partnership or any similar transaction through
             which the Company's financing objectives are met.

             As used herein, "consideration" shall mean all (i) cash,
             whether paid, funded or contributed immediately or to be paid,
             funded or contributed in the future (contingent, deferred or
             otherwise), (ii) the fair market value of all debt, equity and
             other securities, other participating interests and any other
             property paid, funded or contributed, and (iii) the fair market
             value of all debt or other liabilities paid, funded or secured
             (or otherwise assumed) directly or indirectly on behalf of the
             Company or any of its affiliates.

3.    In connection with Averil's activities hereunder, the Company will
      furnish Averil with all material information regarding the business and
      financial condition of the Company (all such information so furnished
      being the "Information").  The Company recognizes and confirms that
      Averil (i) will use and rely primarily on the Information and on
      information available from generally recognized public sources in
      performing the services contemplated by this letter without having
      independently verified the same; (ii) does not assume responsibility
      for the accuracy or completeness of the Information and such other
      information, (iii) will not make an appraisal of any assets of the
<PAGE>

      Company, and (iv) retains the right to continue to perform due
      diligence during the course of the engagement.

4.    Since Averil will be acting on behalf of the Company in connection with
      its engagement hereunder, the Company and Averil have entered into a
      separate indemnification agreement, dated the date hereof and attached
      hereto, providing for the indemnification of Averil and certain related
      persons.  Such indemnification agreement is an integral part of this
      letter and the terms thereof are incorporated by reference herein.  It
      is understood that if any other person or entity is established by the
      Company for the purpose of carrying out any transaction contemplated by
      this engagement letter, such person or entity will enter into
      engagement and indemnification agreements substantially similar to this
      engagement letter and the associated indemnification agreement dated the
      date hereof.  THE COMPANY ACKNOWLEDGES AND AGREES THAT THE
      SERVICES RENDERED BY AVERIL UNDER THIS ENGAGEMENT ARE FINANCIAL ADVISORY
      SERVICES ONLY AND DO NOT INCLUDE THE RENDERING OF ANY LEGAL
      REPRESENTATION BY AVERIL OR ANY OF ITS AGENTS OR EMPLOYEES.  THE
      COMPANY REPRESENTS THAT IT EITHER HAS LEGAL COUNSEL, OR WILL RETAIN
      LEGAL COUNSEL, TO RENDER APPLICABLE LEGAL SERVICES IN RELATION TO THE
      ASSIGNMENTS CONTEMPLATED BY THIS ENGAGEMENT AND WILL IN NO WAY RELY
      UPON AVERIL TO RENDER SUCH LEGAL COUNSEL._________(initials)

5.    Averil's engagement hereunder shall be terminable at will at any time
      prior to the closing of the Transaction by either the Company or Averil
      upon thirty days' prior written notice thereof to the other party.  It
      is understood, however, that notwithstanding any termination of
      Averil's engagement hereunder by the Company, Averil shall be entitled
      to receive any retainer fees and all out-of-pocket expenses to be paid
      to it pursuant to clauses (A) and (C) of the second paragraph of this
      letter agreement and, for a period of twelve months subsequent to the
      termination of this engagement, any transaction fees referred to in
      clause (B) of the second paragraph of this letter agreement relating to
      assignments within the scope of this engagement.  Otherwise, the
      parties shall not have any continuing liability or obligation to the
      other except for those related to the indemnification agreement referred
      to in paragraph 4 hereof and the representations and warranties
      contained in paragraph 7, the terms of which shall survive any
      termination of Averil's engagement hereunder.

6.    The advice (written or oral) rendered by Averil pursuant to this
      agreement is intended solely for the benefit and use of the Company in
      considering the matters to which this agreement relates, and the
      Company agrees that neither such advice nor Averil's retention may be
      disclosed publicly or made available to third parties without the prior
      written consent of Averil.

7.    The Company represents and warrants to Averil that (i) this Agreement
      has been duly authorized, executed and delivered by the Company, and,
      constitutes a legal, valid and binding agreement of the Company,
      enforceable in accordance with its terms and (ii) any offering materials
      will not, when delivered for distribution in connection with a
      transaction and at the closing of a transaction, contain any untrue
      statements of a material fact or omit to state any material fact
      necessary to make the statements contained therein, in light of the
      circumstances under which they were made, not misleading.  The Company
      shall advise Averil promptly of the occurrence of any event or any
      other change that results in the Information or offering materials
      containing any untrue statement of a material fact or omitting to state
      any material fact necessary to make the statements contained therein, in
      light of the circumstances under which they were made, not misleading.
<PAGE>

8.    The execution of this letter shall not be deemed or construed as
      obligating Averil to make any investment in the Company or any other
      Entity, directly or indirectly.

9.    This Agreement may not be modified or amended except in a writing duly
      executed by the parties hereto.

10.   Any determination that any one or more of the provisions of this
      Agreement may be, or is, invalid, illegal or unenforceable shall not
      affect the validity, legality or enforceability of the remainder of
      this Agreement.

11.   THIS AGREEMENT AND ALL CONTROVERSIES ARISING FROM OR RELATING TO
      PERFORMANCE UNDER THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
      IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT GIVING
      EFFECT TO SUCH STATE'S RULES CONCERNING CONFLICTS OF LAWS.  THE PARTIES
      HERETO HEREBY IRREVOCABLY CONSENT TO PERSONAL JURISDICTION AND VENUE
      IN ANY COURT OF THE STATE OF CALIFORNIA OR ANY FEDERAL COURT SITTING IN
      THE CITY OF LOS ANGELES FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER
      PROCEEDING ARISING OUT OF THIS AGREEMENT OR ANY OF THE AGREEMENTS OR
      TRANSACTIONS CONTEMPLATED HEREBY, WHICH IS BROUGHT BY OR AGAINST ANY
      PARTY HERETO, AND HEREBY AGREE THAT ALL CLAIMS IN RESPECT OF ANY SUCH
      SUIT, ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH
      COURT.  THE PARTIES HERETO HEREBY IRREVOCABLY CONSENT TO THE SERVICE OF
      PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH SUIT, ACTION OR
      PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED
      MAIL, POSTAGE PREPAID, TO SUCH PARTIES AT THEIR RESPECTIVE ADDRESSES SET
      FORTH ABOVE, SUCH SERVICE TO BECOME EFFECTIVE TEN (10) DAYS AFTER SUCH
      MAILING.  ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY CLAIM OR ACTION
      ARISING OUT OF THIS AGREEMENT OR CONDUCT IN CONNECTION WITH THIS
      ENGAGEMENT IS HEREBY WAIVED.______(initials)

12.   This agreement may be executed in counterparts, each of which together
      shall be considered a single document.

Please confirm that the foregoing is in accordance with your understanding by
signing and returning to Averil the enclosed duplicate of this letter, which
shall thereupon constitute a binding agreement.

AVERIL ASSOCIATES, INC.

By:
     -----------------------------------
     Diana L. Maranon

ACCEPTED AND AGREED TO:

FUTURE MEDIA PRODUCTIONS

By:
     ------------------------------------
     Alex Sandel

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]