Document:

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                                                                    EXHIBIT 10.5

                                                                             PRA

                  RELEASE AND SEVERANCE COMPENSATION AGREEMENT

         THIS RELEASE AND SEVERANCE COMPENSATION AGREEMENT (the "Agreement") is
between ProAssurance Corporation, a Delaware corporation ("ProAssurance"), and
James J. Morello, an individual (the "Executive"). ProAssurance and its
majority-owned subsidiaries are hereinafter collectively referred to as the
"Companies."

                                    RECITALS:

         The Executive is currently employed by one of the Companies in an at
will employment relationship. ProAssurance has offered to expand protection to
the Executive in the form of severance benefits payable on termination of
employment under certain circumstances in consideration of Executive's agreement
to continue his [her] employment under the terms of this Agreement. The
Executive desires to continue employment with the Companies under such terms and
conditions, and with the protection afforded to the Executive by this Agreement.

                                    AGREEMENT

         NOW, THEREFORE, These Premises Considered, and in consideration of the
mutual covenants and promises in this Agreement, the sufficiency of which is
hereby acknowledged, the parties agree as follows:

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         1.       Term of Agreement. This Agreement shall continue in effect for
a period of one year from date hereof (the "Initial Term"). Thereafter, this
Agreement shall automatically be extended for successive terms of one year (a
"Renewal Term"), except this Agreement may be terminated after the Initial Term
upon delivery of written notice of the termination of this Agreement by any of
the Companies at least six months prior to the commencement of any Renewal Term.
If the Executive's employment is terminated during the term of the Agreement,
the date on which the Executive's employment terminates shall be referred to as
the "Date of Termination."

         2.       Severance Benefits. If during the term of this Agreement the
Executive leaves the employment of the Companies for Good Reason, as explained
in Section 4 of this Agreement, and the Executive signs the release (the
"Release") that is attached to and incorporated in this Agreement, the Executive
shall receive the following benefits (the "Severance Benefits"):

                  (a)      An amount equal to the Executive's annual base
         salary. The "annual base salary" of the Executive shall be defined as
         the Executive's base rate of compensation in effect as of the Date of
         Termination, but in no event less than the Executive's base rate of
         compensation in effect as of the end of the last calendar quarter
         preceding the Date of Termination;

                  (b)      An amount equal to the average annual incentive
         award(s) or bonus(es) paid to Executive in each of the three complete
         calendar years prior to the Date of Termination (but not including in
         such average calendar year 2000) or, if shorter, in each of the
         complete calendar years during the Executive's entire period of
         employment with the Companies. The "annual incentive award(s) or
         bonus(es)" shall mean the sum of (i) amount of cash awards or bonuses,
         plus (ii) the value of stock awards, in each case

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         accrued by the Companies for the account of the Executive as
         performance based compensation (whether or not deferred) during the
         applicable year. The value of stock awarded to the Executive shall be
         calculated based on the value of the stock as of the date the stock was
         awarded to the Executive as annual incentive compensation.
         Notwithstanding the foregoing, the Executive's actual total annual
         incentive awards or bonuses shall be calculated excluding the value of
         options to purchase stock which may have been awarded to the Executive;

                  (c)      Payment of the Executive's monthly COBRA premiums for
         continued health and dental insurance coverage for the shorter of the
         following: (i) 12 months after the Date of Termination; (ii) until the
         Executive no longer has coverage under COBRA; or (iii) until the
         Executive becomes eligible for substantially similar coverage under a
         subsequent employer's group health plan; and

                  (d)      Outplacement services that are customary to
         Executive's position.

         Subject to the delivery of the executed Release by Executive, the
severance benefits described in subparagraphs (a) and (b) above shall be paid in
cash or good funds in equal monthly installments during the period that the
covenants set forth in Section 7 shall be in effect commencing on the first day
of the calendar month that occurs thirty (30) days after the Date of
Termination; provided that the obligation of the Companies to pay such severance
benefits to the Executive shall be subject to termination under the provisions
of Section 7 hereof in the event the Executive should violate the covenants set
forth therein; and provided further that the payment of such severance benefits
shall be accelerated and payable in lump sum by the Companies upon a breach of
this Agreement as a result of the failure of a successor (herein defined) to
assume this Agreement as required in Section 9 of this Agreement. The Companies
shall withhold from any

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amounts payable under this Agreement all federal, state, city or other income
and employment taxes that shall be required.

         The Companies shall fund the obligation to pay Severance Benefits under
subparagraphs (a) and (b) hereof by depositing in escrow an amount equal to the
sum of the amounts payable to the Executive thereunder (the "Escrow Funds") with
SouthTrust Bank (or another financial institution with total assets of more than
$1,000,000,000) as escrow agent (the "Escrow Agent"). The Escrow Funds shall be
the property of the Companies and shall be held, invested and distributed by
Escrow Agent in accordance with the following provisions. At the time of
delivery of the Escrow Funds, the Escrow Agent shall acknowledge receipt of the
Escrow Funds and agree to be bound by the provisions of this Agreement in a
separate written document. The Escrow Agent shall invest the Escrow Funds in a
money market account for the benefit of the Companies and shall distribute the
earnings not more frequently than monthly. Unless and until the Escrow Agent
receives notice from ProAssurance that the Executive has breached this
Agreement, the Escrow Agent shall distribute the Escrow Funds to the Executive
in the same number of equal monthly installments as the number of whole calendar
months in the Restricted Period (as defined in Section 7 hereof). The monthly
installments shall be distributed to the Executive on the first day of each
calendar month in the Restricted Period together with accrued and undistributed
earnings on the Escrow Funds. If the Company delivers written notice to the
Escrow Agent and Executive that the Severance Benefits payable to Executive are
subject to termination under Section 7 of this Agreement, the Escrow Agent shall
distribute the balance of the Escrow Funds and accrued and undistributed
earnings thereon to ProAssurance unless the Escrow Agent receives a written
notice of objection from the Executive within 15 days after delivery of
ProAssurance's notice. If Executive provides a timely notice of objection, the

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Escrow Agent shall hold the Escrow Funds until it receives a written notice of
distribution from the arbitrator appointed pursuant to Section 12 hereof or a
joint written notice of distribution from the Executive and ProAssurance. The
failure of the Executive or the Company to deliver notice to the Escrow Agent as
herein provided shall not be a waiver of any of their respective rights under
this Agreement.

         The Executive shall be entitled to the following in addition to and not
in limitation of the Severance Benefits: (i) accrued and unpaid base salary as
of the Date of Termination; (ii) accrued vacation and sick leave, if any, on
Date of Termination in accordance with the then current policy of the Companies
with respect to terminated employees generally; and (iii) vested benefits under
the Companies' employee benefit plans in which the Executive was a participant
on Date of Termination, which vested benefits shall be paid or provided for in
accordance with the terms of said employee benefit plans.

         The Executive shall not be entitled to receive Severance Benefits if
employment with the Companies is terminated by reason of death of Executive,
retirement of Executive as permitted under a retirement plan as then in effect
for the Companies, the Executive having reached the age of mandatory retirement
(if such requirement then exists for bona fide executives); or Disability of
Executive (herein defined); or by reason of termination of employment by the
Executive without Good Reason (herein defined); or by reason of termination of
employment by the Companies with Cause (herein defined).

         The Executive shall be under no duty or obligation to seek or accept
other employment and shall not be required to mitigate the amount of the
Severance Benefits provided under the Agreement by seeking employment or
otherwise; provided, however, that the Executive shall be required to notify the
Companies if the Executive becomes covered by a health or dental care

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program providing substantially similar coverage, at which time health or dental
care continuation coverage provided under this Agreement shall cease.

         3.       Parachute Payments. Subject to Section 280G of the Internal
Revenue Code of 1986, as amended ("Code"), if the board of directors of
ProAssurance determines that an excise tax under Section 4999 ("Excise Tax")
would be due, the Executive's Severance Benefits under this Agreement shall be
limited to the amount necessary to avoid the Excise Tax. For purposes of making
such computation:

                  (a)      Any other payments or benefits received or to be
received by the Executive in connection with the Change of Control or the
Executive's termination of employment (whether pursuant to the terms of this
Agreement or any other plan, arrangement, or agreement with the Companies, or
with any person whose actions result in the Change of Control) shall be treated
as "parachute payments" within the meaning of Section 280G(b)(2) of the Code,
and all "excess parachute payments" within the meaning of Section 280G(b)(1) of
the Code shall be treated as subject to the Excise Tax, unless, in the opinion
of tax counsel selected by ProAssurance's independent auditors, such other
payments or benefits (in whole or in part) do not constitute parachute payments,
or such other payments or benefits (in whole or in part) represent reasonable
compensation for services actually rendered within the meaning of Section
280G(b)(4) of the Code in excess of the base amount within the meaning of
Section 280G(b)(3) of the Code, or such other payments or benefits (in whole or
in part) are otherwise not subject to the Excise Tax. In the event an Excise Tax
is due, because of payments made under this Agreement, the Executive shall be
responsible for paying said Excise Tax.

                  (b)      The amount of the Severance Benefits that will be
treated as subject to the Excise Tax shall be equal to the lesser of: (i) the
total amount of the Severance Benefits; or

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(ii) the amount of excess parachute payments within the meaning of Section
280G(b)(1) (after applying subparagraph (a) above).

                  (c)      The value of any noncash benefits or any deferred
payment or benefit shall be determined by ProAssurance's independent auditors in
accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

                  (d)      The Executive shall be deemed to pay federal income
taxes at the highest marginal rate of federal income taxation in a calendar year
in which the Severance Benefits are to be paid, and state and local income taxes
at the highest marginal rate of taxation in the state and locality of the
Executive's residence on the Date of Termination, net of the maximum reduction
in federal income taxes that could be obtained from deduction of such state and
local taxes.

         In the event the Internal Revenue Service adjusts the computation in
subparagraphs (a) through (d) above, so that the Executive did not receive the
greatest net benefit, the Companies shall reimburse the Executive for the amount
necessary to make the payment of Severance Benefits to the Executive to the
extent permitted hereunder, plus a market rate of interest as determined by the
Board of Directors of ProAssurance.

         4.       Good Reason for Termination. In the event that the Executive's
employment relationship with the Companies is terminated for any of the reasons
described in this Section 4, the Executive shall be entitled to Severance
Benefits, subject to and described in Section 2 of this Agreement. "Good Reason"
shall constitute any of the following circumstances if they occur without the
Executive's express written consent during the term of this Agreement:

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                  (a)      The Executive no longer holds an executive level
position with executive level responsibilities with the Companies consistent
with the Executive's training and experience;

                  (b)      The Companies require that the Executive's primary
location of employment be more than 50 miles from the location of the
Executive's primary location of employment on date of this Agreement;

                  (c)      The failure of the Companies to provide the
Executive, at a level commensurate with the Executive's position, the incentive
compensation opportunities and employee benefits that are provided to other
executives of comparable rank with the Companies;

                  (d)      A breach by the Companies of any provision of this
Agreement. including without limitation, the failure of a successor to assume
this Agreement as required in Section 9 hereof;

                  (e)      The termination of the Executive's employment by the
Companies for a reason other than: (i) death; (ii) retirement pursuant to a
retirement plan as then in effect for the Companies; (iii) Disability as
explained in Section 5 of this Agreement; (iv) the Executive has reached the age
of mandatory retirement (if such requirement then exists for bona fide
executives); (v) for Cause, as explained in Section 6 of this Agreement;

                  (f)      A reduction by the Companies in the Executive's base
salary in effect as of the date of this Agreement; or

                  (g)      The termination or non-renewal of this Agreement by
the Companies.

         The Executive must provide the Companies with written notice no later
than 45 calendar days after the Executive knows or should have known that Good
Reason has occurred.

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Following the Executive's Notice, the Companies shall have 45 calendar days to
rectify the circumstances causing the Good Reason. If the Companies fail to
rectify the event(s) causing the Good Reason within the 45 day period after the
Executive's Notice, or if any of the Companies delivers to the Executive written
notice stating that the circumstances cannot or shall not be rectified, the
Executive shall be entitled to assert Good Reason and terminate employment on or
before 90 days after the delivery of the Executive's Notice. Should Executive
fail to provide the required Notice in a timely manner, Good Reason shall not be
deemed to have occurred as a result of that event. The Initial Term or a Renewal
Term shall not be deemed to have expired during the Notice period, however, as
long as the Executive has provided Notice within the Term.

         5.       Disability. For purposes of this Agreement, Disability means a
serious injury or illness that requires the Executive to be under the regular
care of a licensed medical physician and renders the Executive incapable of
performing the essential functions of the Executive's position for 12 months as
determined by the Board of Directors of the Companies in good faith and upon
receipt of and in reliance on competent medical advice from one or more
individuals selected by the Board of Directors, who are qualified to give
professional medical advice.

         6.       Cause. If the Executive's employment relationship with the
Companies is terminated by the Companies for Cause, as described below in this
Section, the Executive shall not be eligible for Severance Benefits and all
rights of the Executive and obligations of the Companies under this Agreement
shall expire. Cause means:

                  (a)      The Executive has been convicted in a federal or
state court of a crime classified as a felony;

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                  (b)      Action or inaction by the Executive (i) that
constitutes embezzlement, theft, misappropriation or conversion of assets of the
Companies which alone or together with related actions or inactions involve
assets of more than a de minimis amount, or that constitutes fraud, gross
malfeasance of duty, or conduct grossly inappropriate to Executive's office; and
(ii) such action or inaction has adversely affected or is likely to adversely
affect the business of the Companies or has resulted or is intended to result in
direct or indirect gain or personal enrichment of the Executive to the detriment
of the Companies;

                  (c)      The Executive has been grossly inattentive to, or
in a grossly negligent manner failed to competently perform, Executive's job
duties and the failure was not cured within 45 days after written notice from
the Companies.

         Any termination of the Executive's employment by the Companies for
Cause shall be communicated by a notice of termination (the "Notice of
Termination") to the Executive. The Notice of Termination shall be a written
notice indicating the specific termination provision of this Agreement relied
upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
this provision.

         7.       Non-Competition.

                  (a)      The Executive will not during the Restricted Period

(herein defined):

                           (i)      become employed by a competitor company at
         any location and directly solicit or sell medical professional
         liability insurance to any person or entity that was insured by any of
         the Companies within one year prior to the Date or Termination, or
         directly provide services related to medical professional liability
         insurance to any such person or entity; or

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                           (ii)     receive or earn compensation of any type
         directly arising out of the purchase of medical professional liability
         insurance by any person or entity that was insured by the Companies at
         any time within one year prior to the Date of Termination; or

                           (iii)    solicit or induce any other employees of the
         Companies to leave such employment or accept employment with any other
         person or entity, or solicit or induce any insurance agent of the
         Companies to offer, sell or market medical professional liability
         insurance for a competitor company in the primary market of the
         Companies.

                           "Competitor company" means an insurance company,
                  insurance agency, business, for profit or not for profit
                  organization (other than the Companies) that provides, or
                  offers to provide medical professional liability insurance to
                  health care providers.

                           "Health care providers" means physicians, dentists,
                  podiatrists, physician assistants, nurse practitioners, other
                  individual health care providers and hospital and other
                  institutional health care providers.

                           "Medical professional liability insurance" means
                  medical malpractice insurance and reinsurance, and equivalent
                  self-insured services such as administration of self-insured
                  trusts, claims management services and risk management
                  services for health care providers. "Medical professional
                  liability insurance" does not include services provided as an
                  employee of a health care provider if such services are
                  rendered solely for the purpose of servicing medical
                  professional liability risk of the employer or that of its
                  employees.

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                           "Primary market area" means any state in which the
                  Companies derived more than $5 million in direct written
                  premiums from the sale of medical professional liability
                  insurance to health care providers in the most recent complete
                  fiscal year prior to the Date of Termination.

                           "Restricted Period" means a period of 12 months from
                  the Date of Termination.

                           "Employed" includes activities as an owner,
                  proprietor, employee, agent, solicitor, partner, member,
                  manager, principal, shareholder (owning more than 1% of the
                  outstanding stock), consultant, officer, director or
                  independent contractor.

                           "Companies" means any company that is a subsidiary of
                  ProAssurance, now or in the future, and any other company that
                  has succeeded to the business of any of the Companies.

                  (b)      If the Executive is deemed to have materially
breached the non-competition covenants set forth in Section 7 of this Agreement,
the Companies may, in addition to seeking an injunction or any other remedy they
may have, withhold or cancel any remaining payments or benefits due to the
Executive pursuant to Section 2 of this Agreement. The Companies shall give
prior or contemporaneous written notice of such withholding or cancellation of
payments in accordance with Section 2 hereof. If the Executive violates any of
these restrictions, the Companies shall be further entitled to an immediate
preliminary and permanent injunctive relief, without bond, in addition to any
other remedy which may be available to the Companies.

                  (c)      Both parties agree that the restrictions in this
Agreement are fair and reasonable in all respects, including the geographic and
temporal restrictions, and that the

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benefits described in this Agreement, to the extent any separate or special
consideration is necessary, are fully sufficient consideration for the
Executive's obligations under this Agreement.

         8.       Confidentiality. Executive will remain obligated under any
confidentiality or nondisclosure agreement with the Companies (or any of them)
that is currently in effect or to which the Executive may in the future be
bound. In the event that the Executive is at any time not the subject of a
separate confidentiality or nondisclosure agreement with the Companies (or any
of them), Executive expressly agrees that Executive shall not use for the
Executive's personal benefit, or disclose, communicate or divulge to, or use for
the direct or indirect benefit of any person, firm, association or company any
confidential or competitive material or information of the Companies or their
subsidiaries, including without limitation, any information regarding insureds
or other customers, actual or prospective, and the contents of their files;
marketing, underwriting or financial plans or analyses which is not a matter of
public record; claims practices or analyses which are not matters of public
record; pending or past litigation in which the Companies have been involved and
which is not a matter of public record; and all other strategic plans, analyses
of operations, computer programs, personnel information and other proprietary
information with respect to the Companies which are not matters of public
record. Executive shall return to the Companies promptly, and in no event later
than the Date of Termination, all items, documents, lists and other materials
belonging to the Companies or their subsidiaries, including but not limited to,
credit, debit or service cards, all documents, computer tapes, or other business
records or information, keys and all other items in the Executive's possession
or control.

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         9.       Successors of ProAssurance. ProAssurance will require any
successor (herein defined) to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that the Companies would be
required to perform this Agreement if no such succession had taken place.
Failure of ProAssurance to obtain such agreement prior to the effectiveness of
any such succession shall be a breach of this Agreement and shall entitle the
Executive to terminate employment for Good Reason and receive Severance Benefits
as provided in Section 2 hereof. Reference to the Companies in this Agreement
shall include any successor which assumes and agrees to perform this Agreement
by operation of law or otherwise.

         The term "successor" means any Person, as defined by Section 3(a)(9) of
the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that
either (i) becomes the Beneficial Owner, as defined by Rule 13d-3 of the General
Rules and Regulations under the Exchange Act, directly or indirectly, of the
securities of ProAssurance representing more than 50.1% of the combined voting
power of the then outstanding securities of ProAssurance; (ii) purchases or
otherwise acquires substantially all of the assets of the Companies such that
the Companies cease to function on a going forward basis as an insurance holding
company system that provides medical professional liability insurance; or (iii)
survives a merger, consolidation or reorganization that results in less than
50.1% of the combined voting power of ProAssurance or such surviving entity
being owned by stockholders of ProAssurance immediately preceding such merger,
consolidation or reorganization.

         10.      Notice. For purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered by hand or commercial courier or
mailed by certified or registered mail, return

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receipt requested, postage prepaid, addressed to the respective addresses as set
forth below or to such other address as one party may have furnished to the
other in writing in accordance herewith.

                  Notice to the Executive:

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

                  Notice to the Companies:

                           ProAssurance Corporation
                           Mailing Address:
                           P. O. Box 590009
                           Birmingham, Alabama 35259-0009
                           Street Address:
                           100 Brookwood Place
                           Birmingham, Alabama 35209
                           Attention: Chairman of the Board

         11.      Claims Procedure.

                  (a)      The administrator for purposes of this Agreement
shall be ProAssurance ("Administrator"), whose address is 100 Brookwood Place,
Birmingham, Alabama 35209; Telephone: (205) 877-4400. The "Named Fiduciary" as
defined in Section 402(a)(2) or ERISA, also shall be ProAssurance. ProAssurance
shall have the right to designate one or more employees of the Companies as the
Administrator and the Named Fiduciary at any time, and to change the address and
telephone number of the same. ProAssurance shall give the Executive written
notice of any change in the Administrator and Named Fiduciary, or in the address
or telephone number of the same.

                  (b)      The Administrator shall make all determinations as to
the right of any person to receive benefits under the Agreement. Any denial by
the Administrator of a claim for benefits

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by the Executive ("the claimant") shall be stated in writing by the
Administrator and delivered or mailed to the claimant within ten (10) days after
receipt of the claim, unless special circumstances require an extension of time
for processing the claim. If such an extension is required, written notice of
the extension shall be furnished to the claimant prior to the termination of the
initial 10-day period. In no event shall such extension exceed a period of ten
(10) days from the end of the initial period. Any notice of denial shall set
forth the specific reasons for the denial, specific reference to pertinent
provisions of this Agreement upon which the denial is based, a description of
any additional material or information necessary for the claimant to perfect the
claim, with an explanation of why such material or information is necessary, and
any explanation of claim review procedures, written to the best of the
Administrator's ability in a manner that may be understood without legal or
actuarial counsel.

                  (c)      A claimant whose claim for benefits has been wholly
or partially denied by the Administrator may request, within ten (10) days
following the receipt of such denial, in a writing addressed to the
Administrator, a review of such denial. The claimant shall be entitled to submit
such issues or comments in writing or otherwise, as the claimant shall consider
relevant to a determination of the claim, and the claimant may include a request
for a hearing in person before the Administrator. Prior to submitting the
request, the claimant shall be entitled to review such documents as the
Administrator shall agree are pertinent to the claim. The claimant may, at all
stages of review, be represented by counsel, legal or otherwise, of the
claimant's choice. All requests for review shall be promptly resolved. The
Administrator's decision with respect to any such review shall be set forth in
writing and shall be mailed to the claimant not later than ten (10) days
following receipt by the Administrator of the claimant's request unless special
circumstances, such as the need to hold a hearing, require an extension of time
for processing, in

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which case the Administrator's decision shall be so mailed not later than twenty
(20) days after receipt of such request.

         12.      Arbitration. The parties to this Agreement agree that final
and binding arbitration shall be the sole recourse to settle any claim or
controversy arising out of or relating to a breach or the interpretation of this
Agreement, except as either party may be seeking injunctive relief. Either party
may file for arbitration. A claimant seeking relief on a claim for benefits,
however, must first follow the procedure in Section 11 hereof and may file for
arbitration within sixty (60) days following claimant's receipt of the
Administrator's written decision on review under Section 11(c) hereof, or if the
Administrator fails to provide any written decision under Section 11 hereof,
within 60 days of the date on which such written decision was required to be
delivered to the claimant as therein provided. The arbitration shall be held at
a mutually agreeable location, and shall be subject to and in accordance with
the arbitration rules then in effect of the American Arbitration Association;
provided that if the location cannot be agreed upon the arbitration shall be
held in either Atlanta, Georgia, or Chicago, Illinois, whichever location is
closer to the principal office where the Executive was employed on the Date of
Termination. The arbitrator may award any and all remedies allowable by the
cause of action subject to the arbitration, but the arbitrator's sole authority
shall be to interpret and apply the provisions of this Agreement. In reaching
its decision the arbitrator shall have no authority to change or modify any
provision of this Agreement or other written agreement between the parties. The
arbitrator shall have the power to compel the attendance of witnesses at the
hearing. Any court having jurisdiction may enter a judgment based upon such
arbitration. All decisions of the arbitrator shall be final and binding on the
parties without appeal to any court. Upon execution of this Agreement, the
Executive shall be deemed to have waived any right to commence litigation

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proceedings regarding this Agreement outside of arbitration or injunctive relief
without the express consent of ProAssurance. The Companies shall pay all
arbitration fees and the arbitrator's compensation. If the Executive prevails in
the arbitration proceeding, the Companies shall reimburse to the Executive the
reasonable fees and expenses of Executive's personal counsel for his or her
professional services rendered to the Executive in connection with the
enforcement of this Agreement.

         13.      Miscellaneous.

                  (a)      Except insofar as this provision may be contrary to
applicable law, no sale, transfer, alienation, assignment, pledge,
collateralization or attachment of any benefits under this Agreement shall be
valid or recognized by the Companies.

                  (b)      This Agreement is an unfunded deferred compensation
arrangement for a member of a select group of the Companies' management and any
exemptions under ERISA, as applicable to such arrangement, shall be applicable
to this Agreement. Nothing in this Agreement shall require or be deemed to
require the Companies or any of them to segregate, earmark or otherwise set
aside any funds or other assets to provide for any payments made or required to
be made hereunder.

                  (c)      Nothing in this Agreement shall be deemed to create
an employment agreement between the Executive and the Companies or any of them
providing for Executive's employment for any fixed duration, nor shall it be
deemed to modify or undercut the Executive's at will employment status with the
Companies.

                  (d)      Neither the provisions of this Agreement nor the
severance benefits provided hereunder shall reduce any amounts otherwise
payable, or in any way diminish the Executive's

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rights as an employee of the Companies, whether existing now or hereafter, under
any benefit, incentive, retirement, stock option, stock bonus or stock purchase
plan, or any employment agreement or other plan or arrangement.

                  (e)      This Agreement sets forth the entire agreement
between the parties with respect to the matters set forth herein. This Agreement
may not be modified or amended except by written agreement intended as such and
signed by all parties.

                  (f)      This Agreement shall benefit and be binding upon the
parties and their respective directors, officers, employees, representatives,
agents, heirs, successors, assigns, devisees, and legal or personal
representatives.

                  (g)      The Companies, from time to time, shall provide
government agencies with such reports concerning this Agreement as may be
required by law, and shall provide Executive with such disclosure concerning
this Agreement as may be required by law or as the Companies may deem
appropriate.

                  (h)      Executive and the Companies respectively acknowledge
that each of them has read and understand this Agreement, that they have each
had adequate time to consider this Agreement and discuss it with each of their
attorneys and advisors, that each of them understands the consequences of
entering into this Agreement, that each of them is knowingly and voluntarily
entering into this Agreement, and that they are each competent to enter into
this Agreement.

                  (i)      If any provision of this Agreement is determined to
be unenforceable, at the discretion of ProAssurance the remainder of this
Agreement shall not be affected but each remaining provision shall continue to
be valid and effective and shall be modified so that it is enforceable to the
fullest extent permitted by law. Moreover, in the event this Agreement is

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<PAGE>

determined to be unenforceable against any of the Companies, it shall continue
to be valid and enforceable against the other Companies.

                  (j)      This Agreement will be interpreted as a whole
according to its fair terms. It will not be construed strictly for or against
either party.

                  (k)      Except to the extent that federal law controls, this
Agreement is to be construed according to Alabama law.

                  IN WITNESS WHEREOF, the parties have duly executed this
Agreement effective as of the 1st day of January, 2002.

                                            EXECUTIVE:

                                            Name: /s/ James J. Morello
                                                 ------------------------------
                                                     Name: James J. Morello

                                            PROASSURANCE CORPORATION

                                            By:  /s/  A. Derrill Crowe
                                               ---------------------------------
                                                      Its: Chairman

                                       20
<PAGE>

               RELEASE IN CONJUNCTION WITH SEVERANCE COMPENSATION

         This Release of Claims ("Release") is between ProAssurance Corporation
("ProAssurance"), The Medical Assurance Company, Inc., and any successor company
that has assumed the Agreement to which this Release was an attachment (all such
organizations being referred to in this Release as the "Companies") and _______
________ ("Executive").

         The Companies and Executive have agreed to terminate their employment
relationship. To effect an orderly termination, the Executive, and the Companies
are entering into this Release.

         1.       For the purposes of this Release, "Date of Termination" is the
effective date of Executive's termination of employment from Companies.
Executive hereby waives any and all rights Executive may otherwise have to
continued employment with or re-employment by the Companies or any parent,
subsidiary or affiliate of Companies.

         2.       Effective with the Date of Termination, Executive is relieved
of all duties and obligations to the Companies, except as provided in this
Release or any applicable provisions of the Release and Severance Compensation
Agreement between Companies and Executive, effective as of _____________, 2001
("Agreement"), which survive termination of the employment relationship.

         3.       Executive agrees that this Release and its terms are
confidential and shall not be disclosed or published directly or indirectly to
third persons, except as necessary to enforce its terms, by Executive or to
Executive's immediate family upon their agreement not to disclose the fact or
terms of this Release, or to Executive's attorney, financial consultant or
accountant, except that Executive may disclose, as necessary, the fact that
Executive has terminated Executive's employment with the Companies.

         4.       Any fringe benefits that Executive has received or currently
is receiving from the Companies or its affiliates shall cease effective with the
Date of Termination, except as otherwise provided for in this Release, in the
Agreement or by law.

         5.       The parties agree that the terms contained and payments
provided for in the Agreement are compensation for and in full consideration of
Employee's release of claims under this Release, and Executive's
confidentiality, non-compete, non-solicitation and non-disclosure agreements
contained in the Agreement.

         6.       The Executive shall be under no duty or obligation to seek or
accept other employment and shall not be required to mitigate the amount of the
Severance Benefits (as defined and provided under the Agreement) by seeking
employment or otherwise, provided, however, that the Executive shall be required
to notify the Companies if the Executive becomes covered by a health or dental
care program providing substantially similar coverage, at which time health or
dental care continuation coverage provided under the Agreement shall cease.

                                       21
<PAGE>

         7.       Executive waives, releases, and forever discharges the
Companies and each of their direct or indirect parents, subsidiaries,
affiliates, and any partnerships, joint ventures or other entities involving or
related to any of the Companies, their parents, subsidiaries or affiliates, and
all present or former employees, officers, agents, directors, successors,
assigns and attorneys of any of these corporations, persons or entities (all
collectively referred to in this Release as the "Released") from any and all
claims, charges, suits, causes of action, demands, expenses and compensation
whatsoever, known or unknown, direct or indirect, on account of or growing out
of Executive's employment with and termination from the Companies, or
relationship or termination of such relationship with any of the Released, or
arising out of related events occurring through the date on which this Release
is executed. This includes, but is not limited to, claims for breach of any
employment contract; handbook or manual; any express or implied contract; any
tort; continued employment; loss of wages or benefits; attorney fees; employment
discrimination arising under any federal, state, or local civil rights or
anti-discrimination statute, including specifically any claims Executive may
have under the federal Age Discrimination in Employment Act, as amended, 29 USC
ss.ss. 621, et seq.; emotional distress; harassment; defamation; slander; and
all other types of claims or causes of action whatsoever arising under any other
state or federal statute or common law of the United States.

         8.       The Executive does not waive or release any rights or claims
that may arise under the federal Age Discrimination in Employment Act, as
amended, after the date on which this Release is executed by the Executive.

         9.       The Executive acknowledges and agrees that Executive has been
advised in writing by this Release, and otherwise, to CONSULT WITH AN ATTORNEY
before Executive executes this Release.

         10.      The Executive agrees that Executive received a copy of this
Release prior to executing the Agreement, that this Release incorporates the
Companies' FINAL OFFER; that Executive has been given a period of at least
twenty-two (22) calendar days within which to consider this Release and its
terms and to consult with an attorney should Executive so elect.

         11.      The Executive shall have seven (7) calendar days following
Executive's execution of this Release to revoke this Release. Any revocation of
this Release shall be made in writing by the Executive and shall be received on
or before the time of close of business on the seventh calendar day following
the date of the Employee's execution of this Release at ProAssurance's address
at 100 Brookwood Place, P. O. Box 590009, Birmingham, Alabama 35259-0009,
Attention: Chairman, or such other place as the Companies may notify Executive
in writing. This Release shall not become effective or enforceable until the
eighth (8th) calendar day following the Executive's execution of this Release.

         12.      Executive and the Companies acknowledge that they have read
and understand this Release, that they have had adequate time to consider this
Release and discuss it with their attorneys and advisors, that they understand
the consequences of entering into this Release, that they are knowingly and
voluntarily entering into this Release, and that they are competent to enter
into this Release.

                                       22
<PAGE>

         13.      This Release shall benefit and be binding upon the parties and
their respective directors, officers, employees, agents, heirs, successors,
assigns, devisees and legal or personal representatives.

         14.      This Release, along with the attached Agreement, sets forth
the entire agreement between the parties at the time and date these documents
are executed, and fully supersedes any and all prior agreements or
understandings between them pertaining to the subject matter in this Release.
This Release may not be modified or amended except by a written agreement
intended as such, and signed by all parties.

         15.      Except to the extent that federal law controls, this Release
is to be construed according to the law of the state of Alabama.

         16.      If any provision of this Release is determined to be
unenforceable, at the discretion of ProAssurance the remainder of this Release
shall not be affected but each remaining provision or portion shall continue to
be valid and effective and shall be modified so that it is enforceable to the
fullest extent permitted by law.

         17.      To signify their agreement to the terms of this Release, the
parties have executed it on the date set forth opposite their signatures, or
those of their authorized agents, which follow.

                                    EXECUTIVE

Dated:
      -------------------------     -------------------------------------------

                                    PROASSURANCE CORPORATION

Dated:                              By:
      -------------------------        ----------------------------------------

                                    Its:
                                        ---------------------------------------

                                       23<PAGE>
                                 July ____, 2002

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

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

ZelnickMedia Corporation

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

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

                                LETTER AGREEMENT

Dear Mr. ____________:

      This letter is intended to set forth the agreement between J2
Communications ("J2") and ZelnickMedia Corporation ("ZM") with respect to the
provision of certain services by ZM to J2.

      SECTION 1. TERM. This Letter Agreement shall commence on the date last
executed below and shall continue until terminated by either party upon thirty
(30) days prior written notice to the other party (the "TERM").

      SECTION 2. SERVICES. Upon the request of J2, ZM shall provide general
management and financial advisory services to J2. These services may include,
without limitation, (i) providing managerial know-how and extensive contacts,
(ii) helping to create and execute special editions of publications; (iii)
helping secure distribution for special editions of publications; (iv) meeting
with management executives of proposed acquisition targets; (v) approaching and
attempting to negotiate relationships with record and film studios and other
potential strategic partners; (vi) helping formulate and execute strategies for
collectibles; and (vii) assisting in the formation and maintenance of
relationships with NASDAQ, Harvard University and other organizations. The
services provided pursuant to this Letter Agreement shall be provided in a
professional manner and with reasonable care.

      SECTION 3. COMPENSATION. The sole compensation to ZM for its performance
of this Agreement shall be the grant of certain warrants as provided by the
Warrant Agreement between J2 and ZM and the Warrant Agreement between J2 and
Scott Siegler (which Warrant Agreement ZM hereby directs J2 to enter into with
Scott Siegler instead of ZM with respect to the warrants described therein),
each executed as of the date of this Letter Agreement.

      SECTION 4. CONFIDENTIALITY.

            1.4.1. Each party hereby acknowledges that it may be exposed to
      confidential and proprietary information belonging to the other party or
      relating to its affairs. Confidential Information does not include (i)
      information already known or independently developed by the recipient,
      (ii) information in the public domain through no wrongful act of the
      recipient party, (iii) information received from a third party who

<PAGE>
July ___, 2002
Page 2

      was free to disclose it, or (iv) information that was required to be
      disclosed in the opinion of its counsel pursuant to a requirement of a
      governmental agency or any law, so long as the party required to disclose
      the information provides the other party with timely prior notice of such
      requirement.

            1.4.2. Each party hereby agrees that during the Term and at all
      times thereafter it shall use the Confidential Information of the other
      party solely for purposes of its performance under this Agreement and
      shall not disclose the other party's Confidential Information to any
      person or entity, except to its own employees having a "need to know," and
      to such other recipients as the other party may approve in a signed
      writing. Each party shall use at least the same degree of care in
      safeguarding the other party's Confidential Information as it uses to
      protect its own Confidential Information, but in no event shall a party
      use less than reasonable due diligence and care. Neither party shall alter
      or remove from any software, documentation, or other Confidential
      Information of the other party, or any third party, any proprietary,
      copyright, trademark or trade secret legend.

      SECTION 5. WORK PRODUCT. With respect to all work product that ZM will
develop and deliver to J2 pursuant to this Agreement, J2 shall own all right,
title, and interest in and to such work product. ZM expressly acknowledges and
agrees that the work product constitutes "work made for hire" under Federal
copyright laws (17 U.S.C. Sec. 101) owned exclusively by J2 and, alternatively,
hereby irrevocably assigns its rights in the work product to J2.

      SECTION 6. GENERAL AGREEMENTS AND REPRESENTATIONS. The parties each hereby
agree to cooperate in all reasonable requests of the other party hereto which
the requesting party deems reasonable, necessary, appropriate or expedient to
carry out the intents and purposes of this Letter Agreement. This Letter
Agreement may only be amended by a writing signed by both parties. This Letter
Agreement and the Warrant Agreement referred to herein, represent the entire
understanding of the parties with respect to the subject matter of this Letter
Agreement. ZM may assign this Letter Agreement only with the prior written
consent of J2. This Letter Agreement may be executed in counterparts.

      If the foregoing correctly sets forth our agreement, please endorse your
approval on one of the duplicate copies of this letter and it shall constitute
the agreement among us. Once endorsed, please forward a copy of this letter to
me at 10850 Wilshire Boulevard, Suite 1000, Los Angeles, California 90024.

                                       Very truly yours,

                                       J2 COMMUNICATIONS

                                       By:
                                           -------------------------------------
                                           James P. Jimirro, President

<PAGE>
July __, 2002
Page 3

Accepted and agreed to this _____ day of _____________, 2002.

ZELNICKMEDIA CORPORATION

By:
    -------------------------------

-----------------------------------
(Printed Name/Title)

<PAGE>
                                WARRANT AGREEMENT
                           (ZelnickMedia Corporation)

            This Agreement is entered into as of _______, 2002, between J2
Communications ("COMPANY") and ZelnickMedia Corporation ("HOLDER").

            WHEREAS, the Company and Holder have entered into a letter agreement
dated as of the date of this Agreement for the provision of services to the
Company by Holder, as may be amended (the "SERVICE AGREEMENT"), pursuant to
which the Company agreed to issue to Holder Warrants to purchase certain of the
Company's equity securities;

            WHEREAS, in satisfaction of such agreement, the Company is prepared
to issue two warrants ("WARRANTS"), each for the purchase of one hundred and
thirty nine thousand five hundred shares of the Company's Common Stock, no par
value (the "WARRANT SHARES"), as evidenced by two Warrant Certificates,
substantially in the form of EXHIBIT A1 and EXHIBIT A2 hereto, on the terms and
conditions set forth herein and therein; and

            WHEREAS, the Holder desires to acquire the Warrants on the terms and
conditions set forth herein.

            NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein, the parties hereby agree as follows:

      1. Issuance of Warrants. Subject to the terms and conditions of this
Agreement, the Company hereby issues the Warrants to the Holder simultaneously
with the execution and delivery of this Agreement and the Service Agreement by
delivery to the Holder of the two Warrant Certificates representing the
Warrants, each registered in the name of the Holder.

      2. Representations and Warranties. Holder hereby represents and warrants
to the Company as follows:

            a. Organization and Standing. Holder is a corporation duly
organized, validly existing and in good standing under the laws of the State of
New York.

            b. Power. Holder has all requisite power and authority to enter into
this Agreement and all other documents contemplated hereby to which Holder is to
be a party.

            c. Authorization. Holder has taken all actions necessary to
authorize it to perform all of its obligations under this Agreement and to
consummate the transactions contemplated hereby and thereby. This Agreement is a
legally valid and binding obligation of Holder enforceable against it in
accordance with its respective terms, subject to applicable bankruptcy,
insolvency, reorganization and moratorium laws and other laws of general
application affecting enforcement of creditors' rights generally.

            d. Knowledge. Holder is an "accredited investor" as that term is
defined in Rule 501 of Regulation D promulgated under the Securities Act of
1933, as amended (the

<PAGE>
"Securities Act") and has such knowledge and experience in financial business
matters as to be capable of evaluating the merits and risks of its investment,
has no need for liquidity in its investment and has the ability to bear the
economic risks of its investment.

            e. Investment. Holder is acquiring the Warrants for investment for
its own account and not with the view to, or for resale in connection with, any
public distribution thereof. Holder understands that the Warrants and the
Warrant Shares have not been registered under the Securities Act or under any
state securities laws by reason of a specified exemption from the registration
provisions of the Securities Act and such state securities laws which depends
upon, among other things, the bona fide nature of such purchaser's investment
intent as expressed herein.

            f. Resale Restrictions. Holder acknowledges that the Warrants and
the Warrant Shares acquired by it must be held indefinitely unless they are
subsequently registered under the Securities Act or an exemption from such
registration is available.

            g. Exemption from Securities Act. The offer and sale by the Company
of the Warrants and the Warrant Shares to the Holder, as contemplated by this
Agreement, qualifies for exemption from the registration requirements of the
Securities Act, without limitation, pursuant to the requirements of Rule 506
promulgated thereunder in so far as such requirements apply to the purchasers of
securities in a transaction relying on such rule for an exemption from the
registration requirements of the Securities Act.

      3. Assignment. Except as expressly permitted herein, this Agreement is not
assignable by either party without the prior written consent of the other party.

      4. Miscellaneous:

            a. If any provision of this Agreement is held invalid for any
reason, such holding shall not affect the remaining provisions of this
Agreement, but instead this Agreement shall be construed and enforced as if such
provision had never been included in this Agreement.

            b. The substantive laws of the State of California shall govern this
Agreement, without reference to California conflict of law provisions.

            c. Any reference to the masculine, feminine or neuter gender in this
Agreement shall be a reference to such other gender as is appropriate.

            d. This Warrant Agreement shall not be construed as giving Holder
any right to be retained by the Company in any capacity.

                                     PAGE 2
<PAGE>
       IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first above written.

                                      J2 COMMUNICATIONS

                                      By:
                                          --------------------------------------
                                          James P. Jimirro, President

                                      ZELNICKMEDIA CORPORATION

                                      By:
                                          --------------------------------------

                                      ------------------------------------------
                                      (Printed Name/Title)

                                     PAGE 3
<PAGE>
                                  EXHIBIT A1
<PAGE>
                              COMMON STOCK WARRANT
                    (ZELNICKMEDIA CORPORATION $10.00 WARRANT)

      THIS COMMON STOCK WARRANT (this "WARRANT") evidences that, for value
received, the undersigned ZELNICKMEDIA CORPORATION, a New York corporation, and
its assignee(s) (the "HOLDER") is entitled, upon the terms and subject to the
conditions hereafter set forth, to subscribe for and purchase from J2
COMMUNICATIONS, a California corporation (the "COMPANY"), one hundred thirty
nine thousand five hundred (139,500) fully paid and nonassessable shares of the
Company's Common Stock, no par value (the "COMMON STOCK"). The number and
exercise price of the shares of Common Stock that may be purchased upon the
exercise of this Warrant are subject to adjustment as provided herein.

      SECTION 1. FIRST EXERCISE. The purchase rights represented by this Warrant
shall first become exercisable with respect to one-third of the shares of the
Common Stock (46,500 shares) on the date of issuance hereof, with respect to
3,875 shares of Common Stock on the _________ day of each of the 23 consecutive
calendar months beginning with [July,] 2003, and with respect to any remaining
shares of Common Stock on the third anniversary of the date on which this
Warrant is issued. Notwithstanding the above, no purchase rights represented by
this Warrant shall become exercisable on or after the date upon which that
certain letter agreement between Holder and the Company dated as of July ____,
2002 (as may be amended, the "SERVICE AGREEMENT") is terminated.

      SECTION 2. EXERCISE PERIOD. The purchase rights represented by this
Warrant are exercisable by the Holder, in whole or in part and at any time or
from time to time, with respect to the shares of the Common Stock on or after
the date on which such purchase rights become exercisable pursuant to Section 1
and before the date that is five (5) years after the issuance date hereof (the
"EXERCISE PERIOD").

      SECTION 3. EXERCISE PRICE. The price per share for purchase of the Common
Stock upon exercise of the Warrant shall be equal to Ten Dollars ($10.00) per
share (the "EXERCISE PRICE"). Such Exercise Price shall be subject to adjustment
as provided in Section 8 hereof.

      SECTION 4. EXERCISE OF WARRANT.

            (a) During the Exercise Period, this Warrant may be exercised, in
      whole or in part and from time to time, by the surrender of this Warrant
      and the Notice of Exercise annexed hereto duly executed at the principal
      office of the Company and upon payment of the Exercise Price of the shares
      thereby purchased (payment to be by check or bank draft payable to the
      order of the Company).

            (b) Upon exercise, the Holder shall be entitled to receive, within a
      reasonable time, one or more certificates, issued in the Holder's name or
      in such name or names as the Holder may direct, for the number of shares
      of Common Stock so purchased. The shares so purchased shall be deemed to
      be issued as of the close of business on the date on which this Warrant
      shall have been exercised.

            (c) No fractional shares or scrip representing fractional shares
      shall be issued upon the exercise of this Warrant. In lieu thereof, a cash
      payment shall be made equal to such fraction multiplied by the Exercise
      Price per share as then in effect.

<PAGE>
            (d) If an exercise of any portion of this Warrant is to be made in
      connection with a registered public offering of the Company's stock or the
      sale of the Company by whatever means or structure effected, the exercise
      of any portion of this Warrant may, at the election of the Holder, be
      conditioned upon the consummation of the public offering or sale of the
      Company, in which case such exercise shall not be deemed to be effective
      until the consummation of such transaction.

      SECTION 5. STATUS OF SHARES. The Company represents, warrants and
covenants that all shares of Common Stock that are issued upon the exercise of
rights represented by this Warrant will be fully paid, nonassessable, and free
from all taxes, liens, and charges in respect of the issue thereof (other than
taxes in respect of any transfer occurring contemporaneously with such issue).

      SECTION 6. CHARGES, TAXES, AND EXPENSES. The issuance of certificates in
the name of the Holder for the Common Stock purchasable upon the exercise of
this Warrant shall be made without charge to the Holder of this Warrant for any
issue tax in respect thereof. The Holder shall pay all stock transfer taxes, if
any, in respect of any transfer of this Warrant or any Common Stock that may be
purchased upon the exercise of this Warrant.

      SECTION 7. NO RIGHTS AS SHAREHOLDER. This Warrant does not entitle the
Holder to any voting rights or other rights as a shareholder of the Company
prior to exercise and payment of the Exercise Price in accordance with Section 4
hereof.

      SECTION 8. ADJUSTMENTS.

            (a) Adjustment of the Exercise Price for Stock Splits, Reverse Stock
      Splits, and Stock Dividends. In the event that the outstanding shares of
      Common Stock shall be subdivided (split) or combined (reverse split), by
      reclassification or otherwise, or in the event of any dividend payable on
      the Common Stock in shares of Common Stock, the applicable Exercise Price
      and the number of shares of Common Stock available for purchase under this
      Warrant in effect immediately prior to such subdivision, combination, or
      dividend shall be proportionately adjusted.

            (b) Adjustment for Capital Reorganizations. If at any time there
      shall be a capital reorganization of the Company's Common Stock or a
      merger or consolidation of the Company with or into another corporation,
      or the sale of the Company's properties and assets as, or substantially
      as, an entirety to any other person, then, as part of such reorganization,
      merger, consolidation, or sale, lawful provision shall be made so that the
      Holder of this Warrant shall thereafter be entitled to receive, on
      exercise of this Warrant during the period specified in this Warrant and
      on payment of the Exercise Price then in effect, the number of shares of
      stock or other securities or property of the Company, or of the successor
      corporation resulting from such merger or consolidation, to which a holder
      of the Common Stock deliverable on exercise of this Warrant would have
      been entitled on such capital reorganization, merger, consolidation, or
      sale if this Warrant had been exercised immediately before that capital
      reorganization, merger, consolidation, or sale. In any such case,
      appropriate adjustment, as determined in good faith by the Board, shall be
      made in the application of the provisions of this Warrant with respect to
      the rights and interests of the Holder of this Warrant after the
      reorganization, merger, consolidation, or sale to the end that the
      provisions of this Warrant (including adjustment of the Exercise Price
      then in effect and the number of shares purchasable on exercise of this
      Warrant, but

                                     PAGE 2
<PAGE>
      without any change in the aggregate Exercise Price) shall be applicable
      after that event, as near as reasonably may be, in relation to any shares
      or other securities or property deliverable after that event on exercise
      of this Warrant.

            (c) Certificate as to Adjustments. Upon the occurrence of each
      adjustment or readjustment pursuant to this Section 8, the Company at its
      expense shall promptly compute such adjustment or readjustment in
      accordance with the terms hereof and furnish to the Holder a certificate
      setting forth such adjustment or readjustment and showing in detail the
      facts upon which such adjustment or readjustment is based. The Company
      shall, upon the written request, at any time, of the Holder, furnish or
      cause to be furnished to the Holder, a like certificate setting forth: (i)
      such adjustments and readjustments; (ii) the Exercise Price at the time in
      effect; and (iii) the number of shares of Common Stock and the amount, if
      any, of other property that at the time would be received upon the
      exercise of the Warrant.

            (d) Notices of Record Date. In the event of any taking by the
      Company of a record of the holders of any class of securities for the
      purpose of determining the holders thereof who are entitled to receive any
      dividend or other distribution, the Company shall mail to each Holder, at
      least ten days prior to the date specified for the taking of a record, a
      notice describing the proposed event and specifying the date on which any
      such record is to be taken for the purpose of such dividend or
      distribution.

      SECTION 9. SALE OR TRANSFER OF THE WARRANT; LEGEND. The Warrant, and any
shares of Common Stock of the Company purchased upon exercise of the Warrant,
shall not be sold or transferred unless either (i) they first shall have been
registered under the 1933 Act, or (ii) the such sale or transfer is exempt from
the registration requirements of the 1933 Act. Such Warrant and shares may be
subject to additional restrictions on transfer imposed under applicable state
and federal securities law. Each certificate representing any Warrant and any
such share that has not been registered and that has not been sold pursuant to
an exemption that permits removal of the legend shall bear a legend
substantially in the following form, as appropriate:

      THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
      OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD OR OFFERED FOR SALE IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES
      UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAW OR AN EXEMPTION
      FROM SUCH REGISTRATION UNDER SAID ACT.

      Upon request of a holder of such a certificate, the Company shall remove
the foregoing legend from the certificate or issue to such holder a new
certificate therefor free of any transfer legend, if, with such request, the
Company shall have received a written opinion of legal counsel who shall be
reasonably satisfactory to the Company, addressed to the Company and reasonably
satisfactory in form and substance to the Company's counsel, to the effect that
such legend is not required in order to establish compliance with any provisions
of the Securities Act.

      SECTION 10. CHANGE OF CONTROL. Notwithstanding the terms of Section 1, all
of the purchase rights represented by this Warrant shall become immediately
vested and exercisable if there is a change of control of the Company after the
issuance date of this Warrant and prior to the termination of the Service
Agreement. The term "change of control" with respect to the Company means that
(a) there shall have occurred (i) a reorganization, consolidation or merger

                                     PAGE 3
<PAGE>
involving the Company in which neither the Company nor a wholly-owned subsidiary
of the Company is the continuing or surviving company and pursuant to which
shares of common stock of the Company shall have been converted into cash,
securities or other property, or (ii) a sale, lease, exchange or other transfer,
directly or indirectly, in one transaction or in a series of related
transactions, of all or substantially all of the assets of the Company and its
subsidiaries, and that in any such case (b) immediately following any such
reorganization, merger, consolidation or transfer of assets, the individuals and
entities who were the beneficial owners (within the meaning of Rule 13d-3 under
the Securities Exchange Act of 1934, as amended) of the outstanding voting
securities of the Company entitled to vote generally in the election of
directors immediately prior to such reorganization, merger, consolidation or
transfer of assets, do not beneficially own both (i) more than fifty percent
(50%) of the then-outstanding voting securities entitled to vote generally in
the election of directors, and (ii) more than fifty percent (50%) of the
outstanding securities (voting or nonvoting), of the company that is the
surviving, continuing or transferee company in such reorganization, merger,
consolidation or transfer of assets.

      SECTION 11. REPRESENTATIONS. The provisions respecting the making of
representations regarding investment intent and investor suitability in, and
that are required to be made by investors in the Company pursuant to the Warrant
Agreement dated as of the issuance date of this Warrant between the Company and
Holder are hereby incorporated in full herein by this reference with the same
effect as if fully set forth herein, and are applicable to the purchase of this
Warrant and to purchases of Common Shares pursuant to the exercise of purchase
rights hereunder.

      SECTION 12. LOSS, THEFT, DESTRUCTION, OR MUTILATION OF WARRANT. Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction, or mutilation of this Warrant, and in case of loss, theft,
or destruction upon receipt of indemnity or security reasonably satisfactory to
it, and upon reimbursement to the Company of all reasonable expenses incidental
thereto, and upon surrender and cancellation of this Warrant, if mutilated, the
Company will make and deliver a new Warrant of like tenor and dated as of such
cancellation in lieu of this Warrant.

      SECTION 13. SATURDAYS, SUNDAYS, HOLIDAYS, AND SO FORTH. If the last or
appointed day for the taking of any action or the expiration of any right
required or granted herein shall be a Saturday or a Sunday or shall be a legal
holiday, then such action may be taken or such right may be exercised on the
next succeeding day that is not a legal holiday.

      SECTION 14. AUTHORIZED SHARES. The Company covenants that during the
period the Warrant is outstanding, it will reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance
of Common Stock upon the exercise of any purchase rights under this Warrant.

      SECTION 15. ISSUE DATE. The provisions of this Warrant shall be construed
and shall be given effect in all respects as if it had been issued and delivered
by the Company on the date hereof. This Warrant shall be binding upon any
successors or assigns of the Company.

      SECTION 16. GOVERNING LAW. This Warrant shall constitute a contract under
the laws of the State of California and for all purposes shall be construed in
accordance with and governed by the laws of said state.

                                     PAGE 4
<PAGE>
      IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its duly authorized officer and the Holder has accepted same as evidenced by
his, her or its signature below, all as of the issuance date of this Warrant,
which is ________, 2002.

                                        J2 COMMUNICATIONS

                                    By
                                        ----------------------------------------
                                        James P. Jimirro, President

                                                       "COMPANY"

                                        ZELNICKMEDIA CORPORATION

                                    By
                                        ----------------------------------------

                                        ----------------------------------------
                                        Printed Name/Title

                                                        "HOLDER"

                                     PAGE 5

<PAGE>
                  NOTICE OF EXERCISE OF STOCK PURCHASE WARRANT

To:   The Company

      1. Pursuant to the terms of the attached Warrant, the undersigned hereby
         elects to purchase _____ shares of Common Stock of J2 Communications, a
         California corporation (the "COMPANY"), and tenders herewith payment of
         the purchase price of such shares in full.

      2. Please issue a certificate or certificates representing said shares of
         Common Stock, in the name of the undersigned or in such other name(s)
         as is/are specified immediately below or, if necessary, on an
         attachment hereto:

         [List names and addresses]

      3. In the event of partial exercise, please reissue an appropriate Warrant
         exercisable into the remaining shares.

      4. The undersigned represents that the aforesaid shares of Common Stock
         are being acquired for the account of the undersigned for investment
         and not with a view to, or for resale in connection with, the
         distribution thereof and that the undersigned has no present intention
         of distributing or reselling such shares. The undersigned further
         represents that such shares shall not be sold or transferred unless
         either (a) they first shall have been registered under the 1933 Act or
         (b) the Company first shall have been furnished with an opinion of
         legal counsel reasonably satisfactory to the Company to the effect that
         such sale or transfer is exempt from the registration requirement.

Date:
      -------------                       --------------------------------------
                                          Warrant Holder

                                     PAGE 6
<PAGE>
                                  EXHIBIT A2
<PAGE>
                              COMMON STOCK WARRANT
                    (ZELNICKMEDIA CORPORATION $6.50 WARRANT)

      THIS COMMON STOCK WARRANT (this "WARRANT") evidences that, for value
received, the undersigned ZELNICKMEDIA CORPORATION, a New York corporation, and
its assignee(s) (the "HOLDER") is entitled, upon the terms and subject to the
conditions hereafter set forth, to subscribe for and purchase from J2
COMMUNICATIONS, a California corporation (the "COMPANY"), one hundred thirty
nine thousand five hundred (139,500) fully paid and nonassessable shares of the
Company's Common Stock, no par value (the "COMMON STOCK"). The number and
exercise price of the shares of Common Stock that may be purchased upon the
exercise of this Warrant are subject to adjustment as provided herein.

      SECTION 1. FIRST EXERCISE. The purchase rights represented by this Warrant
shall first become exercisable with respect to one-third of the shares of the
Common Stock (46,500 shares) on the date of issuance hereof, with respect to
3,875 shares of Common Stock on the _________ day of each of the 23 consecutive
calendar months beginning with [July,] 2003, and with respect to any remaining
shares of Common Stock on the third anniversary of the date on which this
Warrant is issued. Notwithstanding the above, no purchase rights represented by
this Warrant shall become exercisable on or after the date upon which that
certain letter agreement between Holder and the Company dated as of July ____,
2002 (as may be amended, the "SERVICE AGREEMENT") is terminated.

      SECTION 2. EXERCISE PERIOD. The purchase rights represented by this
Warrant are exercisable by the Holder, in whole or in part and at any time or
from time to time, with respect to the shares of the Common Stock on or after
the date on which such purchase rights become exercisable pursuant to Section 1
and before the date that is five (5) years after the issuance date hereof (the
"EXERCISE PERIOD").

      SECTION 3. EXERCISE PRICE. The price per share for purchase of the Common
Stock upon exercise of the Warrant shall be equal to Six Dollars and Fifty Cents
($6.50) per share (the "EXERCISE PRICE"). Such Exercise Price shall be subject
to adjustment as provided in Section 8 hereof.

      SECTION 4. EXERCISE OF WARRANT.

            (a) During the Exercise Period, this Warrant may be exercised, in
      whole or in part and from time to time, by the surrender of this Warrant
      and the Notice of Exercise annexed hereto duly executed at the principal
      office of the Company and upon payment of the Exercise Price of the shares
      thereby purchased (payment to be by check or bank draft payable to the
      order of the Company).

            (b) Upon exercise, the Holder shall be entitled to receive, within a
      reasonable time, one or more certificates, issued in the Holder's name or
      in such name or names as the Holder may direct, for the number of shares
      of Common Stock so purchased. The shares so purchased shall be deemed to
      be issued as of the close of business on the date on which this Warrant
      shall have been exercised.

            (c) No fractional shares or scrip representing fractional shares
      shall be issued upon the exercise of this Warrant. In lieu thereof, a cash
      payment shall be made equal to such fraction multiplied by the Exercise
      Price per share as then in effect.

<PAGE>
            (d) If an exercise of any portion of this Warrant is to be made in
      connection with a registered public offering of the Company's stock or the
      sale of the Company by whatever means or structure effected, the exercise
      of any portion of this Warrant may, at the election of the Holder, be
      conditioned upon the consummation of the public offering or sale of the
      Company, in which case such exercise shall not be deemed to be effective
      until the consummation of such transaction.

      SECTION 5. STATUS OF SHARES. The Company represents, warrants and
covenants that all shares of Common Stock that are issued upon the exercise of
rights represented by this Warrant will be fully paid, nonassessable, and free
from all taxes, liens, and charges in respect of the issue thereof (other than
taxes in respect of any transfer occurring contemporaneously with such issue).

      SECTION 6. CHARGES, TAXES, AND EXPENSES. The issuance of certificates in
the name of the Holder for the Common Stock purchasable upon the exercise of
this Warrant shall be made without charge to the Holder of this Warrant for any
issue tax in respect thereof. The Holder shall pay all stock transfer taxes, if
any, in respect of any transfer of this Warrant or any Common Stock that may be
purchased upon the exercise of this Warrant.

      SECTION 7. NO RIGHTS AS SHAREHOLDER. This Warrant does not entitle the
Holder to any voting rights or other rights as a shareholder of the Company
prior to exercise and payment of the Exercise Price in accordance with Section 4
hereof.

      SECTION 8. ADJUSTMENTS.

            (a) Adjustment of the Exercise Price for Stock Splits, Reverse Stock
      Splits, and Stock Dividends. In the event that the outstanding shares of
      Common Stock shall be subdivided (split) or combined (reverse split), by
      reclassification or otherwise, or in the event of any dividend payable on
      the Common Stock in shares of Common Stock, the applicable Exercise Price
      and the number of shares of Common Stock available for purchase under this
      Warrant in effect immediately prior to such subdivision, combination, or
      dividend shall be proportionately adjusted.

            (b) Adjustment for Capital Reorganizations. If at any time there
      shall be a capital reorganization of the Company's Common Stock or a
      merger or consolidation of the Company with or into another corporation,
      or the sale of the Company's properties and assets as, or substantially
      as, an entirety to any other person, then, as part of such reorganization,
      merger, consolidation, or sale, lawful provision shall be made so that the
      Holder of this Warrant shall thereafter be entitled to receive, on
      exercise of this Warrant during the period specified in this Warrant and
      on payment of the Exercise Price then in effect, the number of shares of
      stock or other securities or property of the Company, or of the successor
      corporation resulting from such merger or consolidation, to which a holder
      of the Common Stock deliverable on exercise of this Warrant would have
      been entitled on such capital reorganization, merger, consolidation, or
      sale if this Warrant had been exercised immediately before that capital
      reorganization, merger, consolidation, or sale. In any such case,
      appropriate adjustment, as determined in good faith by the Board, shall be
      made in the application of the provisions of this Warrant with respect to
      the rights and interests of the Holder of this Warrant after the
      reorganization, merger, consolidation, or sale to the end that the
      provisions of this Warrant (including adjustment of the Exercise Price
      then in effect and the number of shares purchasable on exercise of this
      Warrant, but

                                     PAGE 2
<PAGE>
      without any change in the aggregate Exercise Price) shall be applicable
      after that event, as near as reasonably may be, in relation to any shares
      or other securities or property deliverable after that event on exercise
      of this Warrant.

            (c) Certificate as to Adjustments. Upon the occurrence of each
      adjustment or readjustment pursuant to this Section 8, the Company at its
      expense shall promptly compute such adjustment or readjustment in
      accordance with the terms hereof and furnish to the Holder a certificate
      setting forth such adjustment or readjustment and showing in detail the
      facts upon which such adjustment or readjustment is based. The Company
      shall, upon the written request, at any time, of the Holder, furnish or
      cause to be furnished to the Holder, a like certificate setting forth: (i)
      such adjustments and readjustments; (ii) the Exercise Price at the time in
      effect; and (iii) the number of shares of Common Stock and the amount, if
      any, of other property that at the time would be received upon the
      exercise of the Warrant.

            (d) Notices of Record Date. In the event of any taking by the
      Company of a record of the holders of any class of securities for the
      purpose of determining the holders thereof who are entitled to receive any
      dividend or other distribution, the Company shall mail to each Holder, at
      least ten days prior to the date specified for the taking of a record, a
      notice describing the proposed event and specifying the date on which any
      such record is to be taken for the purpose of such dividend or
      distribution.

      SECTION 9. SALE OR TRANSFER OF THE WARRANT; LEGEND. The Warrant, and any
shares of Common Stock of the Company purchased upon exercise of the Warrant,
shall not be sold or transferred unless either (i) they first shall have been
registered under the 1933 Act, or (ii) the such sale or transfer is exempt from
the registration requirements of the 1933 Act. Such Warrant and shares may be
subject to additional restrictions on transfer imposed under applicable state
and federal securities law. Each certificate representing any Warrant and any
such share that has not been registered and that has not been sold pursuant to
an exemption that permits removal of the legend shall bear a legend
substantially in the following form, as appropriate:

      THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
      OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD OR OFFERED FOR SALE IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES
      UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAW OR AN EXEMPTION
      FROM SUCH REGISTRATION UNDER SAID ACT.

      Upon request of a holder of such a certificate, the Company shall remove
the foregoing legend from the certificate or issue to such holder a new
certificate therefor free of any transfer legend, if, with such request, the
Company shall have received a written opinion of legal counsel who shall be
reasonably satisfactory to the Company, addressed to the Company and reasonably
satisfactory in form and substance to the Company's counsel, to the effect that
such legend is not required in order to establish compliance with any provisions
of the Securities Act.

      SECTION 10. CHANGE OF CONTROL. Notwithstanding the terms of Section 1, all
of the purchase rights represented by this Warrant shall become immediately
vested and exercisable if there is a change of control of the Company after the
issuance date of this Warrant and prior to the termination of the Service
Agreement. The term "change of control" with respect to the Company means that
(a) there shall have occurred (i) a reorganization, consolidation or merger

                                     PAGE 3
<PAGE>
involving the Company in which neither the Company nor a wholly-owned subsidiary
of the Company is the continuing or surviving company and pursuant to which
shares of common stock of the Company shall have been converted into cash,
securities or other property, or (ii) a sale, lease, exchange or other transfer,
directly or indirectly, in one transaction or in a series of related
transactions, of all or substantially all of the assets of the Company and its
subsidiaries, and that in any such case (b) immediately following any such
reorganization, merger, consolidation or transfer of assets, the individuals and
entities who were the beneficial owners (within the meaning of Rule 13d-3 under
the Securities Exchange Act of 1934, as amended) of the outstanding voting
securities of the Company entitled to vote generally in the election of
directors immediately prior to such reorganization, merger, consolidation or
transfer of assets, do not beneficially own both (i) more than fifty percent
(50%) of the then-outstanding voting securities entitled to vote generally in
the election of directors, and (ii) more than fifty percent (50%) of the
outstanding securities (voting or nonvoting), of the company that is the
surviving, continuing or transferee company in such reorganization, merger,
consolidation or transfer of assets.

      SECTION 11. REPRESENTATIONS. The provisions respecting the making of
representations regarding investment intent and investor suitability in, and
that are required to be made by investors in the Company pursuant to the Warrant
Agreement dated as of the issuance date of this Warrant between the Company and
Holder are hereby incorporated in full herein by this reference with the same
effect as if fully set forth herein, and are applicable to the purchase of this
Warrant and to purchases of Common Shares pursuant to the exercise of purchase
rights hereunder.

      SECTION 12. LOSS, THEFT, DESTRUCTION, OR MUTILATION OF WARRANT. Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction, or mutilation of this Warrant, and in case of loss, theft,
or destruction upon receipt of indemnity or security reasonably satisfactory to
it, and upon reimbursement to the Company of all reasonable expenses incidental
thereto, and upon surrender and cancellation of this Warrant, if mutilated, the
Company will make and deliver a new Warrant of like tenor and dated as of such
cancellation in lieu of this Warrant.

      SECTION 13. SATURDAYS, SUNDAYS, HOLIDAYS, AND SO FORTH. If the last or
appointed day for the taking of any action or the expiration of any right
required or granted herein shall be a Saturday or a Sunday or shall be a legal
holiday, then such action may be taken or such right may be exercised on the
next succeeding day that is not a legal holiday.

      SECTION 14. AUTHORIZED SHARES. The Company covenants that during the
period the Warrant is outstanding, it will reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance
of Common Stock upon the exercise of any purchase rights under this Warrant.

      SECTION 15. ISSUE DATE. The provisions of this Warrant shall be construed
and shall be given effect in all respects as if it had been issued and delivered
by the Company on the date hereof. This Warrant shall be binding upon any
successors or assigns of the Company.

      SECTION 16. GOVERNING LAW. This Warrant shall constitute a contract under
the laws of the State of California and for all purposes shall be construed in
accordance with and governed by the laws of said state.

                                     PAGE 4
<PAGE>
      IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its duly authorized officer and the Holder has accepted same as evidenced by
his, her or its signature below, all as of the issuance date of this Warrant,
which is ________, 2002.

                                        J2 COMMUNICATIONS

                                    By
                                        ----------------------------------------
                                        James P. Jimirro, President

                                                     "COMPANY"

                                        ZELNICKMEDIA CORPORATION

                                    By
                                        ----------------------------------------

                                        ----------------------------------------
                                        Printed Name/Title

                                                      "HOLDER"

                                     PAGE 5
<PAGE>
                  NOTICE OF EXERCISE OF STOCK PURCHASE WARRANT

To:   The Company

      1. Pursuant to the terms of the attached Warrant, the undersigned hereby
         elects to purchase _____ shares of Common Stock of J2 Communications, a
         California corporation (the "COMPANY"), and tenders herewith payment of
         the purchase price of such shares in full.

      2. Please issue a certificate or certificates representing said shares of
         Common Stock, in the name of the undersigned or in such other name(s)
         as is/are specified immediately below or, if necessary, on an
         attachment hereto:

         [List names and addresses]

      3. In the event of partial exercise, please reissue an appropriate Warrant
         exercisable into the remaining shares.

      4. The undersigned represents that the aforesaid shares of Common Stock
         are being acquired for the account of the undersigned for investment
         and not with a view to, or for resale in connection with, the
         distribution thereof and that the undersigned has no present intention
         of distributing or reselling such shares. The undersigned further
         represents that such shares shall not be sold or transferred unless
         either (a) they first shall have been registered under the 1933 Act or
         (b) the Company first shall have been furnished with an opinion of
         legal counsel reasonably satisfactory to the Company to the effect that
         such sale or transfer is exempt from the registration requirement.

Date:
      -------------                       --------------------------------------
                                          Warrant Holder

                                     PAGE 6
<PAGE>
                                WARRANT AGREEMENT
                                    (Siegler)

            This Agreement is entered into as of _______, 2002, between J2
Communications ("COMPANY") and Scott Siegler ("HOLDER").

            WHEREAS, Holder is a principal of ZelnickMedia Corporation ("ZM");

            WHEREAS, the Company and ZM have entered into a letter agreement
dated as of the date of this Agreement for the provision of services to the
Company by ZM, as may be amended (the "SERVICE AGREEMENT"), pursuant to which
the Company agreed to issue to Holder Warrants to purchase certain of the
Company's equity securities;

            WHEREAS, in satisfaction of such agreement, the Company is prepared
to issue two warrants ("WARRANTS"), each for the purchase of ten thousand five
hundred shares of the Company's Common Stock, no par value (the "WARRANT
SHARES"), as evidenced by two Warrant Certificates, substantially in the form of
EXHIBIT A1 and EXHIBIT A2 hereto, on the terms and conditions set forth herein
and therein; and

            WHEREAS, the Holder desires to acquire the Warrants on the terms and
conditions set forth herein.

            NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein, the parties hereby agree as follows:

      1. Issuance of Warrants. Subject to the terms and conditions of this
Agreement, the Company hereby issues the Warrants to the Holder simultaneously
with the execution and delivery of this Agreement and the Service Agreement by
delivery to the Holder of the two Warrant Certificates representing the
Warrants, each registered in the name of the Holder.

      2. Representations and Warranties. Holder hereby represents and warrants
to the Company as follows:

            a. Residence. Holder is a bona fide resident of, has established his
domicile in, and has his principal residence in, the State of __________.

            b. Power. Holder has all requisite power and authority to enter into
this Agreement and all other documents contemplated hereby to which Holder is to
be a party.

            c. Authorization. Holder has taken all actions necessary to
authorize him to perform all of his obligations under this Agreement and to
consummate the transactions contemplated hereby and thereby. This Agreement is a
legally valid and binding obligation of Holder enforceable against him in
accordance with its respective terms, subject to applicable bankruptcy,
insolvency, reorganization and moratorium laws and other laws of general
application affecting enforcement of creditors' rights generally.

<PAGE>
            d. Knowledge. Holder is an "accredited investor" as that term is
defined in Rule 501 of Regulation D promulgated under the Securities Act of
1933, as amended (the "Securities Act") and has such knowledge and experience in
financial business matters as to be capable of evaluating the merits and risks
of his investment, has no need for liquidity in his investment and has the
ability to bear the economic risks of his investment.

            e. Investment. Holder is acquiring the Warrants for investment for
his own account and not with the view to, or for resale in connection with, any
public distribution thereof. Holder understands that the Warrants and the
Warrant Shares have not been registered under the Securities Act or under any
state securities laws by reason of a specified exemption from the registration
provisions of the Securities Act and such state securities laws which depends
upon, among other things, the bona fide nature of such purchaser's investment
intent as expressed herein.

            f. Resale Restrictions. Holder acknowledges that the Warrants and
the Warrant Shares acquired by him must be held indefinitely unless they are
subsequently registered under the Securities Act or an exemption from such
registration is available.

            g. Exemption from Securities Act. The offer and sale by the Company
of the Warrants and the Warrant Shares to the Holder, as contemplated by this
Agreement, qualifies for exemption from the registration requirements of the
Securities Act, without limitation, pursuant to the requirements of Rule 506
promulgated thereunder in so far as such requirements apply to the purchasers of
securities in a transaction relying on such rule for an exemption from the
registration requirements of the Securities Act.

      3. Assignment. Except as expressly permitted herein, this Agreement is not
assignable by either party without the prior written consent of the other party.

      4. Miscellaneous:

            a. If any provision of this Agreement is held invalid for any
reason, such holding shall not affect the remaining provisions of this
Agreement, but instead this Agreement shall be construed and enforced as if such
provision had never been included in this Agreement.

            b. The substantive laws of the State of California shall govern this
Agreement, without reference to California conflict of law provisions.

            c. Any reference to the masculine, feminine or neuter gender in this
Agreement shall be a reference to such other gender as is appropriate.

            d. This Warrant Agreement shall not be construed as giving Holder
any right to be retained by the Company in any capacity.

                                     PAGE 2
<PAGE>
       IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first above written.

                                       J2 COMMUNICATIONS

                                       By:
                                           -------------------------------------
                                           James P. Jimirro, President

                                       -----------------------------------------
                                       Scott Siegler

                                     PAGE 3
<PAGE>
                                  EXHIBIT A1
<PAGE>
                             COMMON STOCK WARRANT
                           (SIEGLER $10.00 WARRANT)

      THIS COMMON STOCK WARRANT (this "WARRANT") evidences that, for value
received, the undersigned SCOTT SIEGLER, a resident of the State of __________,
and his assignee(s) (the "HOLDER") is entitled, upon the terms and subject to
the conditions hereafter set forth, to subscribe for and purchase from J2
COMMUNICATIONS, a California corporation (the "COMPANY"), ten thousand five
hundred (10,500) fully paid and nonassessable shares of the Company's Common
Stock, no par value (the "COMMON STOCK"). The number and exercise price of the
shares of Common Stock that may be purchased upon the exercise of this Warrant
are subject to adjustment as provided herein.

      SECTION 1. FIRST EXERCISE. The purchase rights represented by this Warrant
shall first become exercisable with respect to one-third of the shares of the
Common Stock (3,500 shares) on the date of issuance hereof, with respect to 292
shares of Common Stock on the _________ day of each of the 23 consecutive
calendar months beginning with [July,] 2003, and with respect to any remaining
shares of Common Stock on the third anniversary of the date on which this
Warrant is issued. Notwithstanding the above, no purchase rights represented by
this Warrant shall become exercisable on or after the date upon which that
certain letter agreement between ZelnickMedia Corporation and the Company dated
as of July ____, 2002 (as may be amended, the "SERVICE AGREEMENT") is
terminated.

      SECTION 2. EXERCISE PERIOD. The purchase rights represented by this
Warrant are exercisable by the Holder, in whole or in part and at any time or
from time to time, with respect to the shares of the Common Stock on or after
the date on which such purchase rights become exercisable pursuant to Section 1
and before the date that is five (5) years after the issuance date hereof (the
"EXERCISE PERIOD").

      SECTION 3. EXERCISE PRICE. The price per share for purchase of the Common
Stock upon exercise of the Warrant shall be equal to Ten Dollars ($10.00) per
share (the "EXERCISE PRICE"). Such Exercise Price shall be subject to adjustment
as provided in Section 8 hereof.

      SECTION 4. EXERCISE OF WARRANT.

            (a) During the Exercise Period, this Warrant may be exercised, in
      whole or in part and from time to time, by the surrender of this Warrant
      and the Notice of Exercise annexed hereto duly executed at the principal
      office of the Company and upon payment of the Exercise Price of the shares
      thereby purchased (payment to be by check or bank draft payable to the
      order of the Company).

            (b) Upon exercise, the Holder shall be entitled to receive, within a
      reasonable time, one or more certificates, issued in the Holder's name or
      in such name or names as the Holder may direct, for the number of shares
      of Common Stock so purchased. The shares so purchased shall be deemed to
      be issued as of the close of business on the date on which this Warrant
      shall have been exercised.

            (c) No fractional shares or scrip representing fractional shares
      shall be issued upon the exercise of this Warrant. In lieu thereof, a cash
      payment shall be made equal to such fraction multiplied by the Exercise
      Price per share as then in effect.

<PAGE>
            (d) If an exercise of any portion of this Warrant is to be made in
      connection with a registered public offering of the Company's stock or the
      sale of the Company by whatever means or structure effected, the exercise
      of any portion of this Warrant may, at the election of the Holder, be
      conditioned upon the consummation of the public offering or sale of the
      Company, in which case such exercise shall not be deemed to be effective
      until the consummation of such transaction.

      SECTION 5. STATUS OF SHARES. The Company represents, warrants and
covenants that all shares of Common Stock that are issued upon the exercise of
rights represented by this Warrant will be fully paid, nonassessable, and free
from all taxes, liens, and charges in respect of the issue thereof (other than
taxes in respect of any transfer occurring contemporaneously with such issue).

      SECTION 6. CHARGES, TAXES, AND EXPENSES. The issuance of certificates in
the name of the Holder for the Common Stock purchasable upon the exercise of
this Warrant shall be made without charge to the Holder of this Warrant for any
issue tax in respect thereof. The Holder shall pay all stock transfer taxes, if
any, in respect of any transfer of this Warrant or any Common Stock that may be
purchased upon the exercise of this Warrant.

      SECTION 7. NO RIGHTS AS SHAREHOLDER. This Warrant does not entitle the
Holder to any voting rights or other rights as a shareholder of the Company
prior to exercise and payment of the Exercise Price in accordance with Section 4
hereof.

      SECTION 8. ADJUSTMENTS.

            (a) Adjustment of the Exercise Price for Stock Splits, Reverse Stock
      Splits, and Stock Dividends. In the event that the outstanding shares of
      Common Stock shall be subdivided (split) or combined (reverse split), by
      reclassification or otherwise, or in the event of any dividend payable on
      the Common Stock in shares of Common Stock, the applicable Exercise Price
      and the number of shares of Common Stock available for purchase under this
      Warrant in effect immediately prior to such subdivision, combination, or
      dividend shall be proportionately adjusted.

            (b) Adjustment for Capital Reorganizations. If at any time there
      shall be a capital reorganization of the Company's Common Stock or a
      merger or consolidation of the Company with or into another corporation,
      or the sale of the Company's properties and assets as, or substantially
      as, an entirety to any other person, then, as part of such reorganization,
      merger, consolidation, or sale, lawful provision shall be made so that the
      Holder of this Warrant shall thereafter be entitled to receive, on
      exercise of this Warrant during the period specified in this Warrant and
      on payment of the Exercise Price then in effect, the number of shares of
      stock or other securities or property of the Company, or of the successor
      corporation resulting from such merger or consolidation, to which a holder
      of the Common Stock deliverable on exercise of this Warrant would have
      been entitled on such capital reorganization, merger, consolidation, or
      sale if this Warrant had been exercised immediately before that capital
      reorganization, merger, consolidation, or sale. In any such case,
      appropriate adjustment, as determined in good faith by the Board, shall be
      made in the application of the provisions of this Warrant with respect to
      the rights and interests of the Holder of this Warrant after the
      reorganization, merger, consolidation, or sale to the end that the
      provisions of this Warrant (including adjustment of the Exercise Price
      then in effect and the number of shares purchasable on exercise of this
      Warrant, but

                                     PAGE 2
<PAGE>
      without any change in the aggregate Exercise Price) shall be applicable
      after that event, as near as reasonably may be, in relation to any shares
      or other securities or property deliverable after that event on exercise
      of this Warrant.

            (c) Certificate as to Adjustments. Upon the occurrence of each
      adjustment or readjustment pursuant to this Section 8, the Company at its
      expense shall promptly compute such adjustment or readjustment in
      accordance with the terms hereof and furnish to the Holder a certificate
      setting forth such adjustment or readjustment and showing in detail the
      facts upon which such adjustment or readjustment is based. The Company
      shall, upon the written request, at any time, of the Holder, furnish or
      cause to be furnished to the Holder, a like certificate setting forth: (i)
      such adjustments and readjustments; (ii) the Exercise Price at the time in
      effect; and (iii) the number of shares of Common Stock and the amount, if
      any, of other property that at the time would be received upon the
      exercise of the Warrant.

            (d) Notices of Record Date. In the event of any taking by the
      Company of a record of the holders of any class of securities for the
      purpose of determining the holders thereof who are entitled to receive any
      dividend or other distribution, the Company shall mail to each Holder, at
      least ten days prior to the date specified for the taking of a record, a
      notice describing the proposed event and specifying the date on which any
      such record is to be taken for the purpose of such dividend or
      distribution.

      SECTION 9. SALE OR TRANSFER OF THE WARRANT; LEGEND. The Warrant, and any
shares of Common Stock of the Company purchased upon exercise of the Warrant,
shall not be sold or transferred unless either (i) they first shall have been
registered under the 1933 Act, or (ii) the such sale or transfer is exempt from
the registration requirements of the 1933 Act. Such Warrant and shares may be
subject to additional restrictions on transfer imposed under applicable state
and federal securities law. Each certificate representing any Warrant and any
such share that has not been registered and that has not been sold pursuant to
an exemption that permits removal of the legend shall bear a legend
substantially in the following form, as appropriate:

      THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
      OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD OR OFFERED FOR SALE IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES
      UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAW OR AN EXEMPTION
      FROM SUCH REGISTRATION UNDER SAID ACT.

      Upon request of a holder of such a certificate, the Company shall remove
the foregoing legend from the certificate or issue to such holder a new
certificate therefor free of any transfer legend, if, with such request, the
Company shall have received a written opinion of legal counsel who shall be
reasonably satisfactory to the Company, addressed to the Company and reasonably
satisfactory in form and substance to the Company's counsel, to the effect that
such legend is not required in order to establish compliance with any provisions
of the Securities Act.

      SECTION 10. CHANGE OF CONTROL. Notwithstanding the terms of Section 1, all
of the purchase rights represented by this Warrant shall become immediately
vested and exercisable if there is a change of control of the Company after the
issuance date of this Warrant and prior to the termination of the Service
Agreement. The term "change of control" with respect to the Company means that
(a) there shall have occurred (i) a reorganization, consolidation or merger

                                     PAGE 3
<PAGE>
involving the Company in which neither the Company nor a wholly-owned subsidiary
of the Company is the continuing or surviving company and pursuant to which
shares of common stock of the Company shall have been converted into cash,
securities or other property, or (ii) a sale, lease, exchange or other transfer,
directly or indirectly, in one transaction or in a series of related
transactions, of all or substantially all of the assets of the Company and its
subsidiaries, and that in any such case (b) immediately following any such
reorganization, merger, consolidation or transfer of assets, the individuals and
entities who were the beneficial owners (within the meaning of Rule 13d-3 under
the Securities Exchange Act of 1934, as amended) of the outstanding voting
securities of the Company entitled to vote generally in the election of
directors immediately prior to such reorganization, merger, consolidation or
transfer of assets, do not beneficially own both (i) more than fifty percent
(50%) of the then-outstanding voting securities entitled to vote generally in
the election of directors, and (ii) more than fifty percent (50%) of the
outstanding securities (voting or nonvoting), of the company that is the
surviving, continuing or transferee company in such reorganization, merger,
consolidation or transfer of assets.

      SECTION 11. REPRESENTATIONS. The provisions respecting the making of
representations regarding investment intent and investor suitability in, and
that are required to be made by investors in the Company pursuant to the Warrant
Agreement dated as of the issuance date of this Warrant between the Company and
Holder are hereby incorporated in full herein by this reference with the same
effect as if fully set forth herein, and are applicable to the purchase of this
Warrant and to purchases of Common Shares pursuant to the exercise of purchase
rights hereunder.

      SECTION 12. LOSS, THEFT, DESTRUCTION, OR MUTILATION OF WARRANT. Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction, or mutilation of this Warrant, and in case of loss, theft,
or destruction upon receipt of indemnity or security reasonably satisfactory to
it, and upon reimbursement to the Company of all reasonable expenses incidental
thereto, and upon surrender and cancellation of this Warrant, if mutilated, the
Company will make and deliver a new Warrant of like tenor and dated as of such
cancellation in lieu of this Warrant.

      SECTION 13. SATURDAYS, SUNDAYS, HOLIDAYS, AND SO FORTH. If the last or
appointed day for the taking of any action or the expiration of any right
required or granted herein shall be a Saturday or a Sunday or shall be a legal
holiday, then such action may be taken or such right may be exercised on the
next succeeding day that is not a legal holiday.

      SECTION 14. AUTHORIZED SHARES. The Company covenants that during the
period the Warrant is outstanding, it will reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance
of Common Stock upon the exercise of any purchase rights under this Warrant.

      SECTION 15. ISSUE DATE. The provisions of this Warrant shall be construed
and shall be given effect in all respects as if it had been issued and delivered
by the Company on the date hereof. This Warrant shall be binding upon any
successors or assigns of the Company.

      SECTION 16. GOVERNING LAW. This Warrant shall constitute a contract under
the laws of the State of California and for all purposes shall be construed in
accordance with and governed by the laws of said state.

                                     PAGE 4
<PAGE>
      IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its duly authorized officer and the Holder has accepted same as evidenced by
his, her or its signature below, all as of the issuance date of this Warrant,
which is ________, 2002.

                                       J2 COMMUNICATIONS

                                    By
                                        ----------------------------------------
                                        James P. Jimirro, President

                                                       "COMPANY"

                                        ----------------------------------------
                                        Scott Siegler

                                                       "HOLDER"

                                     PAGE 5
<PAGE>
                 NOTICE OF EXERCISE OF STOCK PURCHASE WARRANT

To:   The Company

      1. Pursuant to the terms of the attached Warrant, the undersigned hereby
         elects to purchase _____ shares of Common Stock of J2 Communications, a
         California corporation (the "COMPANY"), and tenders herewith payment of
         the purchase price of such shares in full.

      2. Please issue a certificate or certificates representing said shares of
         Common Stock, in the name of the undersigned or in such other name(s)
         as is/are specified immediately below or, if necessary, on an
         attachment hereto:

         [List names and addresses]

      3. In the event of partial exercise, please reissue an appropriate Warrant
         exercisable into the remaining shares.

      4. The undersigned represents that the aforesaid shares of Common Stock
         are being acquired for the account of the undersigned for investment
         and not with a view to, or for resale in connection with, the
         distribution thereof and that the undersigned has no present intention
         of distributing or reselling such shares. The undersigned further
         represents that such shares shall not be sold or transferred unless
         either (a) they first shall have been registered under the 1933 Act or
         (b) the Company first shall have been furnished with an opinion of
         legal counsel reasonably satisfactory to the Company to the effect that
         such sale or transfer is exempt from the registration requirement.

Date:
       ------------------                 --------------------------------------
                                          Warrant Holder

                                     PAGE 6
<PAGE>

                                  EXHIBIT A2
<PAGE>
                              COMMON STOCK WARRANT
                             (SIEGLER $6.50 WARRANT)

      THIS COMMON STOCK WARRANT (this "WARRANT") evidences that, for value
received, the undersigned SCOTT SIEGLER, a resident of the State of __________,
and his assignee(s) (the "HOLDER") is entitled, upon the terms and subject to
the conditions hereafter set forth, to subscribe for and purchase from J2
COMMUNICATIONS, a California corporation (the "COMPANY"), ten thousand five
hundred (10,500) fully paid and nonassessable shares of the Company's Common
Stock, no par value (the "COMMON STOCK"). The number and exercise price of the
shares of Common Stock that may be purchased upon the exercise of this Warrant
are subject to adjustment as provided herein.

      SECTION 1. FIRST EXERCISE. The purchase rights represented by this Warrant
shall first become exercisable with respect to one-third of the shares of the
Common Stock (3,500 shares) on the date of issuance hereof, with respect to 292
shares of Common Stock on the _________ day of each of the 23 consecutive
calendar months beginning with [July,] 2003, and with respect to any remaining
shares of Common Stock on the third anniversary of the date on which this
Warrant is issued. Notwithstanding the above, no purchase rights represented by
this Warrant shall become exercisable on or after the date upon which that
certain letter agreement between ZelnickMedia Corporation and the Company dated
as of July ____, 2002 (as may be amended, the "SERVICE AGREEMENT") is
terminated.

      SECTION 2. EXERCISE PERIOD. The purchase rights represented by this
Warrant are exercisable by the Holder, in whole or in part and at any time or
from time to time, with respect to the shares of the Common Stock on or after
the date on which such purchase rights become exercisable pursuant to Section 1
and before the date that is five (5) years after the issuance date hereof (the
"EXERCISE PERIOD").

      SECTION 3. EXERCISE PRICE. The price per share for purchase of the Common
Stock upon exercise of the Warrant shall be equal to Six Dollars and Fifty Cents
($6.50) per share (the "EXERCISE PRICE"). Such Exercise Price shall be subject
to adjustment as provided in Section 8 hereof.

      SECTION 4. EXERCISE OF WARRANT.

            (a) During the Exercise Period, this Warrant may be exercised, in
      whole or in part and from time to time, by the surrender of this Warrant
      and the Notice of Exercise annexed hereto duly executed at the principal
      office of the Company and upon payment of the Exercise Price of the shares
      thereby purchased (payment to be by check or bank draft payable to the
      order of the Company).

            (b) Upon exercise, the Holder shall be entitled to receive, within a
      reasonable time, one or more certificates, issued in the Holder's name or
      in such name or names as the Holder may direct, for the number of shares
      of Common Stock so purchased. The shares so purchased shall be deemed to
      be issued as of the close of business on the date on which this Warrant
      shall have been exercised.

            (c) No fractional shares or scrip representing fractional shares
      shall be issued upon the exercise of this Warrant. In lieu thereof, a cash
      payment shall be made equal to such fraction multiplied by the Exercise
      Price per share as then in effect.

<PAGE>
            (d) If an exercise of any portion of this Warrant is to be made in
      connection with a registered public offering of the Company's stock or the
      sale of the Company by whatever means or structure effected, the exercise
      of any portion of this Warrant may, at the election of the Holder, be
      conditioned upon the consummation of the public offering or sale of the
      Company, in which case such exercise shall not be deemed to be effective
      until the consummation of such transaction.

      SECTION 5. STATUS OF SHARES. The Company represents, warrants and
covenants that all shares of Common Stock that are issued upon the exercise of
rights represented by this Warrant will be fully paid, nonassessable, and free
from all taxes, liens, and charges in respect of the issue thereof (other than
taxes in respect of any transfer occurring contemporaneously with such issue).

      SECTION 6. CHARGES, TAXES, AND EXPENSES. The issuance of certificates in
the name of the Holder for the Common Stock purchasable upon the exercise of
this Warrant shall be made without charge to the Holder of this Warrant for any
issue tax in respect thereof. The Holder shall pay all stock transfer taxes, if
any, in respect of any transfer of this Warrant or any Common Stock that may be
purchased upon the exercise of this Warrant.

      SECTION 7. NO RIGHTS AS SHAREHOLDER. This Warrant does not entitle the
Holder to any voting rights or other rights as a shareholder of the Company
prior to exercise and payment of the Exercise Price in accordance with Section 4
hereof.

      SECTION 8. ADJUSTMENTS.

            (a) Adjustment of the Exercise Price for Stock Splits, Reverse Stock
      Splits, and Stock Dividends. In the event that the outstanding shares of
      Common Stock shall be subdivided (split) or combined (reverse split), by
      reclassification or otherwise, or in the event of any dividend payable on
      the Common Stock in shares of Common Stock, the applicable Exercise Price
      and the number of shares of Common Stock available for purchase under this
      Warrant in effect immediately prior to such subdivision, combination, or
      dividend shall be proportionately adjusted.

            (b) Adjustment for Capital Reorganizations. If at any time there
      shall be a capital reorganization of the Company's Common Stock or a
      merger or consolidation of the Company with or into another corporation,
      or the sale of the Company's properties and assets as, or substantially
      as, an entirety to any other person, then, as part of such reorganization,
      merger, consolidation, or sale, lawful provision shall be made so that the
      Holder of this Warrant shall thereafter be entitled to receive, on
      exercise of this Warrant during the period specified in this Warrant and
      on payment of the Exercise Price then in effect, the number of shares of
      stock or other securities or property of the Company, or of the successor
      corporation resulting from such merger or consolidation, to which a holder
      of the Common Stock deliverable on exercise of this Warrant would have
      been entitled on such capital reorganization, merger, consolidation, or
      sale if this Warrant had been exercised immediately before that capital
      reorganization, merger, consolidation, or sale. In any such case,
      appropriate adjustment, as determined in good faith by the Board, shall be
      made in the application of the provisions of this Warrant with respect to
      the rights and interests of the Holder of this Warrant after the
      reorganization, merger, consolidation, or sale to the end that the
      provisions of this Warrant (including adjustment of the Exercise Price
      then in effect and the number of shares purchasable on exercise of this
      Warrant, but

                                     PAGE 2
<PAGE>
      without any change in the aggregate Exercise Price) shall be applicable
      after that event, as near as reasonably may be, in relation to any shares
      or other securities or property deliverable after that event on exercise
      of this Warrant.

            (c) Certificate as to Adjustments. Upon the occurrence of each
      adjustment or readjustment pursuant to this Section 8, the Company at its
      expense shall promptly compute such adjustment or readjustment in
      accordance with the terms hereof and furnish to the Holder a certificate
      setting forth such adjustment or readjustment and showing in detail the
      facts upon which such adjustment or readjustment is based. The Company
      shall, upon the written request, at any time, of the Holder, furnish or
      cause to be furnished to the Holder, a like certificate setting forth: (i)
      such adjustments and readjustments; (ii) the Exercise Price at the time in
      effect; and (iii) the number of shares of Common Stock and the amount, if
      any, of other property that at the time would be received upon the
      exercise of the Warrant.

            (d) Notices of Record Date. In the event of any taking by the
      Company of a record of the holders of any class of securities for the
      purpose of determining the holders thereof who are entitled to receive any
      dividend or other distribution, the Company shall mail to each Holder, at
      least ten days prior to the date specified for the taking of a record, a
      notice describing the proposed event and specifying the date on which any
      such record is to be taken for the purpose of such dividend or
      distribution.

      SECTION 9. SALE OR TRANSFER OF THE WARRANT; LEGEND. The Warrant, and any
shares of Common Stock of the Company purchased upon exercise of the Warrant,
shall not be sold or transferred unless either (i) they first shall have been
registered under the 1933 Act, or (ii) the such sale or transfer is exempt from
the registration requirements of the 1933 Act. Such Warrant and shares may be
subject to additional restrictions on transfer imposed under applicable state
and federal securities law. Each certificate representing any Warrant and any
such share that has not been registered and that has not been sold pursuant to
an exemption that permits removal of the legend shall bear a legend
substantially in the following form, as appropriate:

      THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
      OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD OR OFFERED FOR SALE IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES
      UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAW OR AN EXEMPTION
      FROM SUCH REGISTRATION UNDER SAID ACT.

      Upon request of a holder of such a certificate, the Company shall remove
the foregoing legend from the certificate or issue to such holder a new
certificate therefor free of any transfer legend, if, with such request, the
Company shall have received a written opinion of legal counsel who shall be
reasonably satisfactory to the Company, addressed to the Company and reasonably
satisfactory in form and substance to the Company's counsel, to the effect that
such legend is not required in order to establish compliance with any provisions
of the Securities Act.

      SECTION 10. CHANGE OF CONTROL. Notwithstanding the terms of Section 1, all
of the purchase rights represented by this Warrant shall become immediately
vested and exercisable if there is a change of control of the Company after the
issuance date of this Warrant and prior to the termination of the Service
Agreement. The term "change of control" with respect to the Company means that
(a) there shall have occurred (i) a reorganization, consolidation or merger

                                     PAGE 3
<PAGE>
involving the Company in which neither the Company nor a wholly-owned subsidiary
of the Company is the continuing or surviving company and pursuant to which
shares of common stock of the Company shall have been converted into cash,
securities or other property, or (ii) a sale, lease, exchange or other transfer,
directly or indirectly, in one transaction or in a series of related
transactions, of all or substantially all of the assets of the Company and its
subsidiaries, and that in any such case (b) immediately following any such
reorganization, merger, consolidation or transfer of assets, the individuals and
entities who were the beneficial owners (within the meaning of Rule 13d-3 under
the Securities Exchange Act of 1934, as amended) of the outstanding voting
securities of the Company entitled to vote generally in the election of
directors immediately prior to such reorganization, merger, consolidation or
transfer of assets, do not beneficially own both (i) more than fifty percent
(50%) of the then-outstanding voting securities entitled to vote generally in
the election of directors, and (ii) more than fifty percent (50%) of the
outstanding securities (voting or nonvoting), of the company that is the
surviving, continuing or transferee company in such reorganization, merger,
consolidation or transfer of assets.

      SECTION 11. REPRESENTATIONS. The provisions respecting the making of
representations regarding investment intent and investor suitability in, and
that are required to be made by investors in the Company pursuant to the Warrant
Agreement dated as of the issuance date of this Warrant between the Company and
Holder are hereby incorporated in full herein by this reference with the same
effect as if fully set forth herein, and are applicable to the purchase of this
Warrant and to purchases of Common Shares pursuant to the exercise of purchase
rights hereunder.

      SECTION 12. LOSS, THEFT, DESTRUCTION, OR MUTILATION OF WARRANT. Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction, or mutilation of this Warrant, and in case of loss, theft,
or destruction upon receipt of indemnity or security reasonably satisfactory to
it, and upon reimbursement to the Company of all reasonable expenses incidental
thereto, and upon surrender and cancellation of this Warrant, if mutilated, the
Company will make and deliver a new Warrant of like tenor and dated as of such
cancellation in lieu of this Warrant.

      SECTION 13. SATURDAYS, SUNDAYS, HOLIDAYS, AND SO FORTH. If the last or
appointed day for the taking of any action or the expiration of any right
required or granted herein shall be a Saturday or a Sunday or shall be a legal
holiday, then such action may be taken or such right may be exercised on the
next succeeding day that is not a legal holiday.

      SECTION 14. AUTHORIZED SHARES. The Company covenants that during the
period the Warrant is outstanding, it will reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance
of Common Stock upon the exercise of any purchase rights under this Warrant.

      SECTION 15. ISSUE DATE. The provisions of this Warrant shall be construed
and shall be given effect in all respects as if it had been issued and delivered
by the Company on the date hereof. This Warrant shall be binding upon any
successors or assigns of the Company.

      SECTION 16. GOVERNING LAW. This Warrant shall constitute a contract under
the laws of the State of California and for all purposes shall be construed in
accordance with and governed by the laws of said state.

                                     PAGE 4
<PAGE>
      IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its duly authorized officer and the Holder has accepted same as evidenced by
his, her or its signature below, all as of the issuance date of this Warrant,
which is ________, 2002.

                                       J2 COMMUNICATIONS

                                    By
                                        ----------------------------------------
                                        James P. Jimirro, President

                                                     "COMPANY"

                                        ----------------------------------------
                                        Scott Siegler

                                                      "HOLDER"

                                     PAGE 5
<PAGE>
                  NOTICE OF EXERCISE OF STOCK PURCHASE WARRANT

To:   The Company

      1. Pursuant to the terms of the attached Warrant, the undersigned hereby
         elects to purchase _____ shares of Common Stock of J2 Communications, a
         California corporation (the "COMPANY"), and tenders herewith payment of
         the purchase price of such shares in full.

      2. Please issue a certificate or certificates representing said shares of
         Common Stock, in the name of the undersigned or in such other name(s)
         as is/are specified immediately below or, if necessary, on an
         attachment hereto:

         [List names and addresses]

      3. In the event of partial exercise, please reissue an appropriate Warrant
         exercisable into the remaining shares.

      4. The undersigned represents that the aforesaid shares of Common Stock
         are being acquired for the account of the undersigned for investment
         and not with a view to, or for resale in connection with, the
         distribution thereof and that the undersigned has no present intention
         of distributing or reselling such shares. The undersigned further
         represents that such shares shall not be sold or transferred unless
         either (a) they first shall have been registered under the 1933 Act or
         (b) the Company first shall have been furnished with an opinion of
         legal counsel reasonably satisfactory to the Company to the effect that
         such sale or transfer is exempt from the registration requirement.

Date:
      -------------                       --------------------------------------
                                          Warrant Holder

                                     PAGE 6

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