EXHIBIT 10.1

                      METROMEDIA INTERNATIONAL GROUP, INC.
                           TRANSACTION BONUS AGREEMENT
                           ---------------------------


                  THIS AGREEMENT is entered into as of the 8th day of March,
2005 (the "Effective Date") by and between Metromedia International Group, Inc.,
a Delaware corporation (the "Company"), and Mark Stephen Hauf ("Executive").

                  WHEREAS, Executive is currently employed by the Company as its
Chief Executive Officer ("CEO") pursuant to an employment agreement, entered
into on October 6, 2003 and effective as of October 1, 2003, by and between
Executive and the Company (the "Employment Agreement"); and

                  WHEREAS, the Board of Directors of the Company (the "Board")
recognizes that the Employment Agreement does not provide for any equity-based
or other long-term cash-based incentive compensation for Executive, that
programs providing for such compensation have not been provided to executive at
any time during the period of his service as CEO and that such programs are
common for executives of companies that are similar to the Company; and

                  WHEREAS, the Board recognizes further that Executive has
performed his services under the Employment Agreement with the expectation that
he would receive compensation in the future to make up for the current absence
of equity-based and long-term cash incentive compensation arrangements, and the
Board has determined that it is in the best interests of the Company and its
stockholders to provide Executive with such compensation; and

                  WHEREAS, the Company has entered into an agreement, dated as
of February 17, 2005, pursuant to which it has agreed to sell all of its
interest in Peterstar ZAO ("Peterstar") to First National Holding S.A., a
societe anonyme organized under the laws of Luxembourg ("FNH"), Emergent Telecom
Ventures S.A., a societe anonyme organized under the laws of Switzerland
("ETV"), Pisces Investment Limited, a company organized under the Companies Law
of Cyprus and a wholly-owned subsidiary of FNH and ETV (the "Peterstar Sale
Agreement"); and

                  WHEREAS, the Board recognizes that (i) during the period
pending the consummation of the transactions contemplated by the Peterstar Sale
Agreement, or (ii) in the event the transactions contemplated by the Peterstar
Sale Agreement are not consummated, because a sale by the Company of its
interest in Peterstar may nevertheless arise, key employees of the Company may
be motivated to leave the employment of the Company or be distracted in the
performance of their duties to the Company and its subsidiaries, to the
detriment of the Company and its stockholders; and

                  WHEREAS, Executive is a key executive of the Company, and the
Board has determined that it is in the best interests of the Company and its
stockholders to secure Executive's continued services and to ensure Executive's
continued and undivided dedication to his duties in the event of a sale by the
Company of its interest in Peterstar; and

<PAGE>

WHEREAS, to such end, and in order to adequately compensate Executive for the
performance of his services to the Company as its CEO, and in consideration for
Executive's agreement to waive severance benefits under the Employment Agreement
and abide by the non-competition covenants in this Agreement, subject to the
terms and conditions described in this Agreement, the Company desires to provide
Executive with certain payments and benefits pursuant to the terms of this
Agreement; and

                  WHEREAS, the Board has authorized the Company to enter into
this Agreement.

                  NOW, THEREFORE, for and in consideration of the premises and
the mutual covenants and agreements contained herein and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
Company and Executive hereby agree as follows:

I.   Effect of this Agreement on the Employment Agreement; Duration of this
     Agreement.

     A. Other than as specifically stated in this Agreement, the Employment
Agreement shall remain in full force and effect.

     B. On and following the Effective Date, Section 8 of the Employment
Agreement, relating to payments to Executive in connection with a "Change of
Control" (as defined in the Employment Agreement), shall be void and of no
further effect; provided, that such Section 8 shall once again become effective
on October 1, 2005 if and only if a "Peterstar Sale Transaction" (defined below)
is not consummated prior to that date.

     C. On and following the Effective Date, Section 5 of the Employment
Agreement (relating to Covenants Not to Compete) shall be null and void, and
Executive shall be bound by Section VI of this Agreement; provided, that, if a
Peterstar Sale Transaction is not consummated prior to October 1, 2005, Section
5 of the Employment Agreement shall once again become effective on October 1,
2005 pursuant to its terms. The parties hereby acknowledge that the Company's
agreement to waive the provisions of Section 5 of the Employment Agreement, and
Executive's agreement to be bound by Section VI of this Agreement, is part of
the consideration given by each party in entering into this Agreement.

     D. Effective upon the consummation of a Peterstar Sale Transaction on or
prior to September 30, 2005, Section 7.08 of the Employment Agreement, relating
to payments to Executive upon termination of employment without "Cause" or for
"Good Reason" (as such terms are defined in the Employment Agreement), shall be
null and void. The parties hereby acknowledge that Executive's waiver of the
provisions of Section 7.08 of the Employment Agreement as described above is
part of the consideration given by Executive for the Company to enter into this
Agreement.

                                       2
<PAGE>

     E. This Agreement shall terminate, and be of no further force and effect,
on and after October 1, 2005 if a Peterstar Sale Transaction is not consummated
prior to that date.

     F. For purposes of this Agreement, a "Peterstar Sale Transaction" shall
mean the sale, directly or indirectly, of the Company's entire interest in the
Peterstar business venture (the "Peterstar Venture").

II. Effect of a Peterstar Sale Transaction.

     A. Peterstar Transaction Bonus Trigger. As partial consideration for
Executive's agreement to enter into this Agreement, including, without
limitation, Section VI of this Agreement, the Company agrees that, in connection
with the consummation of a Peterstar Sale Transaction that occurs on or prior to
September 30, 2005, Executive shall be entitled to the Peterstar Transaction
Bonus, which, subject to Section II.B. of this Agreement, shall be payable as
follows: (i) 50% in one lump sum payment concurrent with the consummation of the
Peterstar Sale Transaction; provided Executive is still employed by the Company
as of such date, (ii) 25% in one lump sum payment on the date that is six months
after the consummation of the Peterstar Sale Transaction (the "Second Payment
Date"), provided Executive is still employed by the Company as of such date; and
(iii) 25% in one lump sum payment on the date that is 12 months after the
consummation of the Peterstar Sale Transaction (the "Third Payment Date"),
provided Executive is still employed by the Company as of such date. Following
payment to Executive of the first installment of the Peterstar Transaction
Bonus, the Company shall cause the balance of such bonus to be placed in a
"rabbi" trust (the "Trust") and paid to Executive from the Trust when due in
accordance with the terms of this Section II.

     B. Termination of Employment. If Executive's employment with the Company or
any of its affiliates is terminated by the Company without Cause or by Executive
for Good Reason at any time after payment of the first installment of the
Peterstar Transaction Bonus, but before the Second Payment Date or Third Payment
Date, the Company shall, within 10 days after such termination cause to be paid
from the Trust, or pay directly (at the Company's option) the unpaid balance of
the Peterstar Transaction Bonus. In addition, if Executive is entitled to
payments under this Section II.B., he shall also be entitled to any amounts due
under Section 7.07 of the Employment Agreement, and, provided Executive is
eligible for and timely elects to continue group health insurance coverage for
himself and, if applicable, his family, under Part 6 of Title I of the Employee
Retirement Income Security Act of 1986, as amended ("COBRA"), the Company shall
directly pay the cost of continuing group health insurance for Executive and, if
applicable, his qualified beneficiaries under COBRA until the date Executive or
any such qualified beneficiary, as applicable, ceases for any reason to be
eligible for continuation of group health insurance coverage under COBRA. For
purposes of this Agreement, Executive agrees that the fact that a Peterstar Sale
Transaction has occurred will not, of itself, constitute Good Reason under the
Employment Agreement.


                                       3
<PAGE>

     C. Peterstar Transaction Bonus. The "Peterstar Transaction Bonus" shall be
equal to the sum of (a) $1,333,333, and (b) 15% of the amount, if any, by which
the "Peterstar Enterprise Value" exceeds $178 million, where "Peterstar
Enterprise Value" shall mean the aggregate consideration paid to the Company in
the Peterstar Sale Transaction in respect of the Peterstar Venture.

     D. Except to the extent otherwise provided in this Agreement, if Executive
receives payments pursuant to Section II of this Agreement, Executive shall have
no further rights to any compensation or other benefits under this Agreement
(other than pursuant to Section III of this Agreement, if applicable) or, for
the avoidance of doubt, under Section 7.08 or Section 8 of the Employment
Agreement, and any other benefits due Executive shall be determined in
accordance with all plans, policies and practices of the Company; provided,
however, that, Executive shall not be entitled to any payments or benefits under
any separately stated severance, retention or change of control plan, policy,
program or arrangement of the Company.

III. Certain Additional Payments by the Company.

     A. If it is determined (as hereafter provided) that any payment or
distribution by the Company to or for the benefit of Executive, whether paid or
payable or distributed or distributable pursuant to the terms of this Agreement
or otherwise pursuant to or by reason of any other agreement, policy, plan,
program or arrangement (a "Payment"), would be subject to the excise tax imposed
by Section 4999 of the Internal Revenue Code of 1986, as amended (the "Code")
(or any successor provision thereto) or to any similar tax imposed by state or
local law, or any interest or penalties with respect to such excise tax (such
tax or taxes, together with any such interest and penalties, are hereafter
collectively referred to as the "Excise Tax"), then Executive will be entitled
to receive an additional payment or payments (a "Gross-Up Payment") in an amount
such that, after payment by Executive of all taxes (including any interest or
penalties imposed with respect to such taxes), including any Excise Tax, imposed
upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment
equal to the Excise Tax imposed upon the Payments.

     B. Subject to Section III.F of this Agreement, all determinations required
to be made under this Section III, including whether an Excise Tax is payable by
Executive and the amount of such Excise Tax and whether a Gross-Up Payment is
required and the amount of such Gross-Up Payment, will be made by a nationally
recognized firm of certified public accountants (the "Accounting Firm") selected
by the Company, which may be the Company's regular outside auditors. The Company
will direct the Accounting Firm to submit its determination and detailed
supporting calculations to both the Company and Executive within 30 calendar
days after the date of consummation of the Peterstar Sale Transaction or the
date of Executive's termination of employment, if applicable, and any other such
time or times as may be requested by the Company or Executive. If the Accounting
Firm determines that any Excise Tax is payable by Executive, the Company will
pay the required Gross-Up Payment to Executive no later than five calendar days
prior to the due date for the Executive's income tax return on which the Excise
Tax is included. If the Accounting Firm determines that no Excise Tax is payable
by Executive, it will, at the same time as it makes such determination, furnish
Executive with an opinion that he has substantial authority not to report any
Excise Tax on his federal, state, local income or other tax return. Any
determination by the Accounting Firm as to the amount of the Gross-Up Payment
will be binding upon the Company and Executive. As a result of the uncertainty
in the application of Section 4999 of the Code (or any successor provision
thereto) and the possibility of similar uncertainty regarding applicable state
or local tax law at the time of any determination by the Accounting Firm
hereunder, it is possible that Gross-Up Payments which will not have been made
by the Company should have been made (an "Underpayment"), consistent with the
calculations required to be made hereunder. If the Company exhausts or fails to
pursue its remedies pursuant to Section III.F hereof, and Executive thereafter
is required to make a payment of any Excise Tax, Executive shall so notify the
Company, which will direct the Accounting Firm to determine the amount of the
Underpayment that has occurred and to submit its determination and detailed
supporting calculations to both the Company and Executive as promptly as
possible. Any such Underpayment will be promptly paid by the Company to, or for
the benefit of, Executive within five business days after receipt of such
determination and calculations.

                                       4
<PAGE>

     C. The Company and Executive will each provide the Accounting Firm access
to and copies of any books, records and documents in the possession of the
Company or Executive, as the case may be, reasonably requested by the Accounting
Firm, and otherwise cooperate with the Accounting Firm in connection with the
preparation and issuance of the determination contemplated by Section III.B
hereof.

     D. The federal, state and local income or other tax returns filed by
Executive will be prepared and filed on a consistent basis with the
determination of the Accounting Firm with respect to the Excise Tax payable by
Executive. Executive will make proper payment of the amount of any Excise Tax,
and at the request of the Company, provide to the Company true and correct
copies (with any amendments) of his federal income tax return as filed with the
Internal Revenue Service and corresponding state and local tax returns, if
relevant, as filed with the applicable taxing authority, and such other
documents reasonably requested by the Company, evidencing such payment. If prior
to the filing of Executive's federal income tax return, or corresponding state
or local tax return, if relevant, the Accounting Firm determines that the amount
of the Gross-Up Payment should be reduced, Executive will within five business
days pay to the Company the amount of such reduction.

     E. The fees and expenses of the Accounting Firm for its services in
connection with the determinations and calculations contemplated by Section
III.B and Section III.D hereof will be borne by the Company. If such fees and
expenses are initially advanced by Executive, the Company will reimburse
Executive the full amount of such fees and expenses within five business days
after receipt from Executive of a statement therefor and reasonable evidence of
his payment thereof.

                                       5
<PAGE>

     F. Executive will notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the
Company of a Gross-Up Payment. Such notification will be given as promptly as
practicable but no later than 10 business days after Executive actually receives
notice of such claim and Executive will further apprise the Company of the
nature of such claim and the date on which such claim is requested to be paid
(in each case, to the extent known by Executive). Executive will not pay such
claim prior to the earlier of (i) the expiration of the 30-calendar-day period
following the date on which he gives such notice to the Company and (ii) the
date that any payment of amount with respect to such claim is due. If the
Company notifies Executive in writing prior to the expiration of such period
that it desires to contest such claim, Executive will:

          1. provide the Company with any written records or documents in his
     possession relating to such claim reasonably requested by the Company;

          2. take such action in connection with contesting such claim as the
     Company will reasonably request in writing from time to time, including
     without limitation accepting legal representation with respect to such
     claim by an attorney competent in respect of the subject matter and
     reasonably selected by the Company;

          3. cooperate with the Company in good faith in order effectively to
     contest such claim; and

          4. permit the Company to participate in any proceedings relating to
     such claim;

                  provided, however, that the Company will bear and pay directly
                  all costs and expenses (including interest and penalties)
                  incurred in connection with such contest and will indemnify
                  and hold harmless Executive, on an after-tax basis, for and
                  against any Excise Tax or income tax, including interest and
                  penalties with respect thereto, imposed as a result of such
                  representation and payment of costs and expenses. Without
                  limiting the foregoing provisions of this Section III.F, the
                  Company will control all proceedings taken in connection with
                  the contest of any claim contemplated by this Section III.F
                  and, at its sole option, may pursue or forego any and all
                  administrative appeals, proceedings, hearings and conferences
                  with the taxing authority in respect of such claim (provided
                  that Executive may participate therein at his own cost and
                  expense) and may, at its option, either direct Executive to
                  pay the tax claimed and sue for a refund or contest the claim
                  in any permissible manner, and Executive agrees to prosecute
                  such contest to a determination before any administrative
                  tribunal, in a court of initial jurisdiction and in one or
                  more appellate courts, as the Company will determine;
                  provided, however, that, if the Company directs Executive to
                  pay the tax claimed and sue for a refund, the Company will
                  advance the amount of such payment to Executive on an
                  interest-free basis and will indemnify and hold Executive
                  harmless, on an after-tax basis, from any Excise Tax or income
                  tax, including interest or penalties with respect thereto,
                  imposed with respect to such advance; and provided further,
                  however, that any extension of the statute of limitations
                  relating to payment of taxes for the taxable year of Executive
                  with respect to which the contested amount is claimed to be
                  due is limited solely to such contested amount. Furthermore,
                  the Company's control of any such contested claim will be
                  limited to issues with respect to which a Gross-Up Payment
                  would be payable hereunder, and Executive will be entitled to
                  settle or contest, as the case may be, any other issue raised
                  by the Internal Revenue Service or any other taxing authority.

                                       6
<PAGE>

     G. If, after the receipt by Executive of an amount advanced by the Company
pursuant to Section III.F hereof, Executive receives any refund with respect to
such claim, Executive will (subject to the Company's complying with the
requirements of Section III.F hereof) promptly pay to the Company the amount of
such refund (together with any interest paid or credited thereon after any taxes
applicable thereto). If, after the receipt by Executive of an amount advanced by
the Company pursuant to Section III.F hereof, a determination is made that
Executive will not be entitled to any refund with respect to such claim, and the
Company does not notify Executive in writing of its intent to contest such
denial or refund prior to the expiration of 30 calendar days after such
determination, then such advance will be forgiven and will not be required to be
repaid, and the amount of such advance will offset, to the extent thereof, the
amount of Gross-Up Payment required to be paid pursuant to this Section III. If,
after the receipt by Executive of a Gross-Up Payment but before the payment by
Executive of the Excise Tax, it is determined by the Accounting Firm that the
Excise Tax payable by Executive is less than the amount originally computed by
the Accounting Firm and consequently that the amount of the Gross-Up Payment is
larger than that required by this Section III, Executive shall promptly refund
to the Company the amount by which the Gross-Up Payment initially made to
Executive exceeds the Gross-Up Payment required under this Section III.

IV. No Duplication of Benefits. It is the intent of the parties that no
duplication of benefits occur between this Agreement and the Employment
Agreement.

V. Withholding Taxes. The Company may withhold from all payments due to
Executive hereunder all taxes which, by applicable federal, state, local or
other law, the Company is required to withhold therefrom.

VI. Nature of Obligations.

     A. The payments and benefits provided under this Agreement are contingent
on (i) Executive's compliance with Section 3 and Section 4 of the Employment
Agreement (ii) for any payments hereunder that are made in connection with
Executive's termination of employment, Executive's execution of a Release
consistent with that described in Section 7.09(a) of the Employment Agreement no
earlier than the date of termination of employment, and Executive not having
revoked such release during the time period within which he may do so, and (iii)
Executive's compliance with Section VI.B. below. In addition, for the avoidance
of doubt, and notwithstanding the foregoing, in the event that any compensation
or other benefits become due to Executive under this Agreement, such
compensation and benefits shall be in lieu of any amounts payable and benefits
provided under Section 7.08 and Section 8 of the Employment Agreement, as it is
the intent of this Agreement that such sections of the Employment Agreement
shall become null and void in order for any amounts under this Agreement to be
payable.

                                       7
<PAGE>

     B. Covenants Not to Compete.

          1. Non-Competition. During the term of the Employment Agreement and
     for a period of two years following the termination of Executive's
     employment for any reason (the "Restricted Period"), Executive shall not,
     by or for himself or as the agent of another, except any entity that
     directly or indirectly controls, is controlled by or is under common
     control with, the Company (an "Affiliate"), or through others as his agent:

               (a) promote, sell, lease, license or distribute products,
          services or processes in material competition with products, services
          or processes of the Company that were in existence, or under
          development during Executive's employment with the Company;

               (b) except as otherwise permitted by this Agreement, own, manage,
          operate, be compensated by, participate in, render advice to, or have
          any interest in any other business that designs, produces, sells or
          distributes products, services or processes in material competition
          with products, services or processes of the Company that were in
          existence, or under development during Executive's employment by the
          Company;

               (c) intentionally interfere with any material business
          relationship of the Company or publicly disparage the name or
          reputation of the Company or intentionally take any action intended to
          bring the Company into public ridicule or disrepute; or

               (d) make any public statement or publish or participate in the
          publication of any account or story relating to Executive's employment
          with the Company or the termination thereof.

          2. Non-Interference. During the Restricted Period, Executive shall not
     by or for himself, or as the agent of another, except an Affiliate, or
     through others as his agent, directly or indirectly:

               (a) solicit business from customers or suppliers of the Company
          with respect to products, services or processes of the Company that
          were in existence, or under development during Executive's employment
          with the Company, or request, induce or advise customers or suppliers
          of the Company to withdraw, curtail or cancel their business with the
          Company; or


                                       8
<PAGE>


               (b) solicit for employment or employ, other than at the Company
          or an Affiliate, any person who at such time is, or within six months
          previously was an employee of the Company or request any employee to
          leave the employ of the Company.

          3. Duration of Effectiveness. If Executive violates any of the
     restrictive covenants set forth in this Section VI, the Company shall not,
     as a result of the time involved in obtaining relief, be deprived of the
     benefit of the full period of such restrictive covenant. Accordingly, each
     restrictive covenant shall remain in effect not only for the duration
     specified in Sections VI.B.1. and VI.B.2 hereof, but also for an additional
     period equal in length to the period during which Executive remained in
     violation of such covenant.

          4. Reasonable Duration and Scope. The parties hereby agree and
     acknowledge that the duration and scope applicable to the restrictive
     covenants described in this Section VI.B are fair, reasonable and
     necessary, that adequate compensation has been received by Executive for
     such covenants, and that these covenants do not prevent Executive from
     earning a livelihood. If, however, for any reason, any court or arbitrator
     determines that the restrictions in this Section VI.B are not reasonable,
     that consideration is inadequate or that Executive has been prevented from
     earning a livelihood, the parties agree that such restrictions are intended
     to be divisible and severable and that such restrictions shall be
     interpreted, modified or rewritten to include as much of the duration,
     geographic area and scope identified in this Section VI.B. as will render
     such restrictions valid and enforceable.

          5. Limitation on Restrictions. Nothing herein shall prohibit Executive
     from:

                    (a) owning, in the aggregate, not more than two percent (2%)
               of the outstanding stock of any corporation which is publicly
               traded, so long as Executive has no active participation in the
               business or management of such corporation;

                    (b) having a passive investment as a shareholder, limited
               partner or other venturer with no active participation in the
               business or management of a non-public corporation, limited
               partnership or venture, in either case that may be in competition
               with the business of the Company as provided in Section VI.B.1
               and VI.B.2 above; or

                    (c) owning an interest of any size or having an active role
               in the business or management of an Affiliate or any entity that
               was an Affiliate at any time during Executive's employment by the
               Company, provided, however, that if the entity has ceased to be
               an Affiliate of the Company, Executive must have the consent of
               the Board.

          6. For purposes of the covenants in this Section VI.B., the "Company"
     shall include the Company and all of its subsidiaries and affiliates,
     including, without limitation, Affiliates, Peterstar, the Magticom Ltd.
     business venture and any other affiliates in which the Company does not own
     a controlling interest.

                                       9
<PAGE>

          C. Essential Covenants. Executive acknowledges that he has carefully
     read and considered the terms and provisions of Section VI.B of this
     Agreement and knows them to be essential to induce the Company to enter
     into this Agreement and that any breach of such terms and provisions would
     result in serious and irreparable injury to the Company. Executive further
     acknowledges that the Company's business interests protected thereby are
     substantial and legitimate. Therefore, in the event of a breach by
     Executive of any such terms or provisions, the Company shall be entitled to
     equitable relief against Executive by way of injunction (in addition to,
     but not in substitution for, any and all other relief to which the Company
     may be entitled at law or in equity) to restrain Executive from such breach
     and to compel compliance by Executive with his obligations hereunder. The
     Company shall also be entitled to seek a protective order to ensure the
     continued confidentiality of its trade secrets and proprietary information.

VII. Non-Exclusivity of Rights. Other than as specifically stated in this
Agreement, nothing in this Agreement shall prevent or limit Executive's right to
participate in any benefit, bonus, incentive or other plan or program provided
by the Company and for which Executive may qualify (other than any severance,
retention or change of control plan, policy, program or arrangement), nor shall
anything herein limit or reduce such rights as Executive may have under any
agreements with the Company. Amounts which are vested benefits or which
Executive is otherwise entitled to receive under any plan or program of the
Company shall be payable in accordance with such plan or program, except as
explicitly modified by this Agreement.

VIII. Entire Agreement. This Agreement constitutes the entire agreement of the
parties hereto and supersedes all prior and contemporaneous agreements and
understandings (including term sheets) both written and oral, between the
parties hereto, or either of them, with respect to the subject matter hereof. No
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are
not expressly set forth in this Agreement.

IX. Not an Employment Agreement. This Agreement is not, and nothing herein shall
be deemed to create, a contract of employment between Executive and the Company.
The Company may terminate the employment of Executive with the Company at any
time, subject to the terms of this Agreement and/or the Employment Agreement
and/or any other employment agreement or arrangement between the Company and
Executive that may be in effect.

X. Successors; Binding Agreement.

     A. The Company agrees that it will cause any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business of the Company (other than a successor in
connection with the Peterstar Sale Transaction), unconditionally to assume, by
written instrument delivered to Executive (or his beneficiary or estate) if such
assumption does not occur by operation of law, all of the obligations of the
Company hereunder. As used in this Agreement, "Company" shall mean (i) the
Company as hereinbefore defined, and (ii) any successor described in the
preceding sentence or which otherwise becomes bound by all the terms and
provisions of this Agreement by operation of law, including any parent or
subsidiary of such a successor.


                                       10
<PAGE>


     B. This Agreement shall inure to the benefit of and be enforceable by
Executive's personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If Executive shall die
while any amounts would be payable to Executive hereunder had Executive
continued to live, all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to such person or persons
appointed in writing by Executive to receive such amounts or, if no person is so
appointed, to Executive's estate. Neither this Agreement nor any right arising
hereunder may be assigned or pledged by Executive.

XI. Notice.

     A. For purposes of this Agreement, all notices and other communications
required or permitted hereunder shall be in writing and shall be deemed to have
been duly given when delivered or, if later, five days after deposit in the
United States mail, certified and return receipt requested, postage prepaid or
two days after deposit with a nationally recognized overnight courier service,
addressed as follows:

                  If to Executive:

                  Metromedia International Group, Inc.
                  8000 Tower Point Drive
                  Charlotte, NC 28277
                  Attention:  Mark Hauf, c/o Natasha Alexeeva, Esq.
                  Phone: (704) 321-7389
                  Fax:  (704) 845-1835

                  If to the Company:

                  Metromedia International Group, Inc.
                  8000 Tower Point Drive
                  Charlotte, NC 28277
                  Attention:  Natasha Alexeeva, Esq.
                  Phone:  (704) 321-7389
                  Fax:  (704) 845-1835

                  With a copy to:

                  Paul, Weiss, Rifkind, Wharton & Garrison LLP
                  1285 Avenue of the Americas
                  New York, NY 10019
                  Attention:  James M. Dubin, Esq.
                  Phone:  (212) 373-3000
                  Fax:  (212) 757-3990

                                       11
<PAGE>


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

XII. Arbitration: Except as provided in Section 6 of the Employment Agreement,
any dispute between the parties to this Agreement in connection with, arising
out of or asserting breach of this Agreement or the Employment Agreement, or any
statutory or common law claim by Executive relating to Executive's employment
under the Employment Agreement or rights under this Agreement (including any
tort or discrimination claim), shall be exclusively resolved by binding
statutory arbitration. Such dispute shall be submitted to arbitration in New
York, before a panel of three neutral arbitrators in accordance with the
Commercial Rules of the American Arbitration Association then in effect, and the
arbitration determination resulting from any such submission shall be final and
binding upon the parties hereto. Judgment upon any arbitration award may be
entered in any court of competent jurisdiction.

XIII. Governing Law: This Agreement shall be governed by and construed in
accordance with the internal substantive laws of the State of New York, without
regard to conflicts of laws principles.

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

XV. Miscellaneous. No provision of this Agreement may be modified or waived
unless such modification or waiver is agreed to in writing and signed by
Executive and by a duly authorized officer of the Company. 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. Failure by Executive
or the Company to insist upon strict compliance with any provision of this
Agreement or to assert any right Executive or the Company may have hereunder,
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement. Except as otherwise specifically provided
herein, the rights of, and benefits payable to Executive, his estate or his
beneficiaries pursuant to this Agreement are in addition to any rights of, or
benefits payable to, Executive, his estate or his beneficiaries under any other
employee benefit plan or compensation program of the Company (other than any
severance, retention or change of control plan, policy, program or arrangement).

                  [Remainder of page intentionally left blank]




                                       12
<PAGE>



                  IN WITNESS WHEREOF, the Company has caused this Agreement to
be executed by a duly authorized officer of the Company and Executive has
executed this Agreement as of the day and year first above written.



                                          METROMEDIA INTERNATIONAL GROUP, INC.


                                             By:  /s/ Harold F. Pyle
                                                 -------------------------------
                                             Title: Chief Financial Officer
                                                    ----------------------------



                                                  /s/ Mark S. Hauf
                                                 -------------------------------
                                                  Mark Stephen Hauf


                                       13