Document:

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                                                                   Exhibit 10.74

                               AMENDMENT NO. 5 TO
                         LIMITED FORBEARANCE AGREEMENT

     AMENDMENT NO. 5 dated as of June 1, 2001 (the "Amendment"), to Limited
Forbearance Agreement dated as of January 11, 2001, as heretofore amended (the
"Forbearance Agreement") among THE KUSHNER-LOCKE COMPANY (the "Borrower"), its
subsidiaries (the "Guarantors", and together with the Borrower, the "Credit
Parties"), the Lenders party to the Credit Agreement defined below (the
"Lenders") and THE CHASE MANHATTAN BANK (formerly known as Chemical Bank), as
Agent and as Fronting Bank for the Lenders (the "Agent").

     The Borrower, the Guarantors, the Lenders and the Agent are parties to a
Credit, Security, Guaranty and Pledge Agreement, dated as of June 16, 1996, as
amended (the "Credit Agreement").

     As set forth in Section 1 of the Forbearance Agreement, Defaults and
Events of Default under the Credit Agreement have occurred and are continuing.
In order to allow the Borrower additional time to prepare for the proposed sale
of its film library and related accounts receivable and to explore various
restructuring options, the Borrower has requested that the Agent and the
Lenders amend the Forbearance Agreement to (i) extend the Lenders' agreement to
forebear from applying collections in respect of the Credit Parties'
receivables to repayment of the Loans, (ii) release an additional portion of
such collections to fund operating expenses of the Credit Parties and (iii)
make certain other modifications to the Forbearance Agreement.

     The Agent and the Lenders have agreed to the foregoing requests, all on
the terms and subject to the conditions hereinafter set forth.

     Accordingly, the parties hereby agree as follows:

     1.   Defined Terms. All capitalized terms not otherwise defined herein are
used as defined in the Forbearance Agreement.

     2.   Amendments to Forbearance Agreement. Subject to the satisfaction of
the condition precedent set forth in Section 4 hereof, the Forbearance
Agreement is hereby amended effective as of the Effective Date (as hereinafter
defined) as follows:

          (a)  The reference to "June 6, 2001" as the Stated Expiration Date
set forth in Section 2 of the Forbearance Agreement is hereby amended to be
"July 4, 2001."

          (b)  The Disbursement Schedule attached as Exhibit A to the
Forbearance Agreement is hereby replaced in its entirety with the Disbursement
Schedule attached as Exhibit A to this Amendment.

          (c)  Section 5(iii) of the Forbearance Agreement, which was added by
Amendment No. 3 thereto and amended by Amendment No. 4 thereto, is hereby
amended to
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delete the figure "75%" and insert the figure "100%" in its place, and to
delete the figure "$2,500,000" and insert the figure "$1,500,000" in its place.

     3.   Condition to Effectiveness. The provisions of Section 2 of this
Amendment shall not become effective unless and until the Agent shall have
received counterparts of this Agreement executed by each of the parties hereto.

     4.   Full Force and Effect. Except as expressly amended hereby, the
Forbearance Agreement shall continue in full force and effect in accordance
with the provisions thereof on the date hereof. As used in the Forbearance
Agreement, the terms "Agreement", "this Agreement", "herein", "hereafter",
"hereto", "hereof", and words of similar import shall, unless the context
otherwise requires, mean the Forbearance Agreement as amended by this Amendment.

     5.   APPLICABLE LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     6.   Counterparts. This Amendment may be executed in two or more
counterparts, each of which shall constitute an original, but all of which when
taken together shall constitute but one instrument.

     7.   Headings. The headings of this Amendment are for the purposes of
reference only and shall not affect the construction of this Amendment.

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their duly authorized officers, all as of the date and year
first above written.

                                        BORROWER:

                                        THE KUSHNER-LOCKE COMPANY

                                        By: /s/ PETER LOCKE
                                            ------------------------------------
                                            Name:  Peter Locke
                                            Title: Co-CEO

                                        GUARANTORS:

                                        KL PRODUCTIONS, INC.
                                        POST AND PRODUCTION SERVICES, INC.
                                        TWILIGHT ENTERTAINMENT, INC.
                                        KLP GUILD CO.
                                        KLTV DEVELOPMENT CO.
                                        KUSHNER-LOCKE INTERNATIONAL, INC.
                                        KL INTERACTIVE MEDIA, INC.
                                        DAYTON WAY PICTURES III, INC.

                                        By: /s/ PETER LOCKE
                                            ------------------------------------
                                            Name:  Peter Locke
                                            Title: Co-CEO

                                        KLC/NEW CITY
                                        By its General Partner
                                        THE KUSHNER-LOCKE COMPANY

                                        By: /s/ PETER LOCKE
                                            ------------------------------------
                                            Name:  Peter Locke
                                            Title: Co-CEO

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                                        LENDERS:

Executed in                             THE CHASE MANHATTAN BANK (formerly
New York, New York                      known as Chemical Bank), as Agent

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        NIB CAPITAL BANK N.Y. (formerly known as
                                        De Nationale Investeringsbank N.V.)

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        COMERICA BANK -- CALIFORNIA

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        FAR EAST NATIONAL BANK

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                       4EXHIBIT 4.1

                                      E-16
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                Incorporated Under the Laws Of The State of Texas

         Number                      Shares
    [GRAPHIC OMITTED]

                          D I R E C T  W I R E L E S S C
                               OMMUNICATIONS, INC.

         The Corporation is authorized to issue 10,000,000 Common Shares

                                  COMMON STOCK

THIS CERTIFIES THAT ______________________SAMPLE CERTIFICATE______________ IS
THE OWNER OF THE SHARES SET FORTH HEREON, FULLY PAID AND NON-ASSESSABLE COMMON
SHARES OF THE ABOVE CORPORATION TRANSFERABLE ONLY ON THE BOOKS OF THE
CORPORATION BY THE HOLDER HEREOF IN PERSON OR BY DULY AUTHORIZED ATTORNEY UPON
SURRENDER OF THIS CERTIFICATE PROPERLY ENDORSED.

IN WITNESS WHEREOF, THE SAID CORPORATION HAS CAUSED THIS CERTIFICATE TO BE
SIGNED BY ITS DULY AUTHORIZED OFFICERS AND TO BE SEALED WITH THE SEAL OF THE
CORPORATION.

                                      E-17EXHIBIT 4.2

                                      E-18
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         If the election of directors shall not be held on the day above
designated for the annual meeting, the Board of Directors shall cause the
election to be held as soon thereafter as may be convenient at a special meeting
of the shareholders called for the purpose of holding such election.

         The annual meeting of shareholders may be held for any other purpose in
addition to the election of directors which may be specified in a notice of such
meeting. The meeting may be called by resolution of the Board of Directors or by
a writing filed with the secretary signed either by a majority of the directors
or by shareholders owning a majority in amount of the entire capital stock of
the corporation issued and outstanding and entitled to vote at any such meeting.

                          SPECIAL SHAREHOLDERS MEETINGS

         2.03     Special meetings of the Shareholders may be called by the
Chief Executive Officer, the President, the Board of Directors, the holders of
not less than twenty-five percent (25%) of all shares entitled to vote at the
meeting so called, or such other officers or persons as may be provided by
resolution of the Board of Directors.

                         NOTICE OF SHAREHOLDERS' MEETING

         2.04     A written or printed notice stating the place, day and hour of
the meeting, and in case of a special meeting, the purpose or purposes for which
the meeting is called, shall be delivered not less than ten (10) nor more than
fifty (50) days before the date of the meeting, either personally or by mail, by
or at the direction of the chief executive officer, president, the secretary, or
the officer or person calling the meeting, to each shareholder of record
entitled to vote at such meeting. If mailed, such notice shall be deemed to be
delivered when deposited in the United States mail addressed to the shareholder
at his address as it appears on the share transfer book of the corporation, with
postage thereon prepaid.

         Attendance at a meeting shall be deemed to be waiver of notice, unless
the Shareholder attending does so for the purpose of protesting the legality of
the meeting and announces such purpose before casting a vote on any business
before the meeting.

                                VOTING OF SHARES

         2.05     Each outstanding share, regardless of class, shall be entitled
to one vote on each matter submitted to a vote at a meeting of shareholders,
except to the extent that the voting rights of the shares of any class or
classes are limited or denied by the Articles of Incorporation or by law.

         At each election for directors every shareholder entitled to vote at
such election shall have the right to vote, in person or by proxy, the number of
shares owned by him for as many persons as there are directors to be elected and
for whom election he has a right to vote.

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                                LOST CERTIFICATE

         5.04     The Board of Directors may direct a new certificate or
certificates to be issued in place of any certificate or certificates
theretofore issued by the corporation alleged to have been lost or destroyed,
upon the making of an affidavit of the fact by the person claiming the
certificate to be lost. When authorizing such issue of a new certificate or
certificates, the Board of Directors in its discretion and as a condition
precedent to the issuance thereof, may require the owner of such lost or
destroyed certificate or certificates or his legal representatives to advertise
the same in such manner as it shall require or to give the corporation a bond
with surety and in form satisfactory to the corporation (which bond shall also
name the corporation's transfer agents and registrars, if any, as obligees) in
such sum as it may direct as indemnity against any claim that may be made
against the corporation or other obligees with respect to the certificate
alleged to have been lost or destroyed, or to advertise and also give such bond.

                              ARTICLE 6 - DIVIDEND

                                   DECLARATION

         6.01     The Board of Directors may declare at any annual, regular or
special meeting of the Board and the corporation may pay, dividends on the
outstanding shares in cash, property or in the shares of the corporation to the
extent permitted by, and subject to, the provisions of the laws of the State of
Texas.

                                    RESERVES

         6.02     Before the payment of any dividend there may be set aside out
of any funds of the corporation available for dividends such sum or sums as the
directors from time to time in their absolute discretion think proper as a
reserve fund to meet contingencies or for equalizing dividends or for
maintaining any property of the corporation or for such other purpose as the
directors shall think conducive to the interest of the corporation, and the
directors may abolish any such reserve in the manner in which it was created.

                            ARTICLE 7 - MISCELLANEOUS

         7.01     The Board of Directors may authorize any officer or officers,
agent or agents, to enter into any contract or execute and deliver any
instrument in the name of and on behalf of the Corporation, and such authority
may be general or confined to specific instances.

         7.02     No loans shall be contracted on behalf of the Corporation and
no evidence of indebtedness shall be issued in its name unless authorized by a
resolution or the Board of Directors. Such authority may be general or confined
to specific instances.

         7.03     All funds of the Corporation not otherwise employed shall be
deposited from time to time to the credit of the Corporation in such banks,
trust companies, or other depositories as the Board of Directors may select.

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