Document:

SECURITY AGREEMENT

            THIS SECURITY AGREEMENT (this "Agreement") is made as of December
31, 1999, by and between Interiors, Inc., a Delaware corporation ("Debtor"),
Petals, Inc., a Delaware corporation (the "Subsidiary") and Endeavour Capital
Fund SA (hereinafter referred to as the "Secured Party").

      1. Definitions.

      (a) Certain Defined Terms. The following terms, as used herein, have the
meanings set forth below:

      Collateral - has the meaning assigned to that term in Section 2.

      Event of Default - has the meaning assigned to that term in Section 9.

      Exchange Agreement - means that certain Exchange Agreement (including all
Exhibits annexed thereto) of even date herewith, by and between Debtor and
Secured Party.

      Note - means that certain Secured Convertible Note of even date herewith,
in the aggregate original principal amount of $1,744,518, made and executed by
Debtor and issued to Secured Party, and all amendments and supplements thereto,
restatements thereof and renewals, extensions, restructuring and refinancings
thereof.

      Person - means and includes natural persons, corporations, limited
partnerships, general partnerships, joint stock companies, joint ventures,
associations, companies, trusts, banks, trust companies, land trusts, business
trusts or other organizations, whether or not legal entities, and governments
and agencies and political subdivisions thereof.

      Proceeds - means all proceeds of, and all other profits, rentals or
receipts, in whatever form, arising from the collection, sale, lease, exchange,
assignment, licensing or other disposition of, or realization upon, any
Collateral including, without limitation, all claims against third parties for
loss of, damage to or destruction of, or for proceeds payable under, or unearned
premiums with respect to, policies of insurance with respect to any Collateral,
and any condemnation or requisition payments with respect to any Collateral, in
each case whether now existing or hereafter arising.

      Secured Obligations - has the meaning assigned to that term in Section 3.

      Security Interests - means the security interests granted pursuant to
Section 2, as well as all other security interests created or assigned as
additional security for the Secured Obligations pursuant to the provisions of
this Agreement.

      Shares - means all of the outstanding securities of Petals, Inc.

      UCC - means the Uniform Commercial Code as in effect on the date hereof in
the State of New York, provided that if by reason of mandatory provisions of
law, the perfection or the

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effect of perfection or non-perfection of the Security Interest in any
Collateral or the availability of any remedy hereunder is governed by the
Uniform Commercial Code as in effect on or after the date hereof in any other
jurisdiction, "UCC" means the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such perfection
or effect of perfection or non-perfection or availability of such remedy.

      (b) Other Definition Provisions. References to "Sections", "subsections",
"Exhibits" and "Schedules" shall be to Sections, subsections, Exhibits and
Schedules, respectively, of this Agreement unless otherwise specifically
provided. Any of the terms defined in Section 1(a) may, unless the context
otherwise requires, be used in the singular or the plural depending on the
reference. All references to statutes and related regulations shall include
(unless otherwise specifically provided herein) any amendments of same and any
successor statutes and regulations.

      2. Grant of Security Interest

      In order to secure the payment and performance of the Secured Obligations
in accordance with the terms thereof, Debtor and Subsidiary hereby grant to
Secured Party a continuing security interest in and to all right, title and
interest of Debtor and/or Subsidiary in the Shares (also referred to as the
"Collateral").

      3. Security for Obligations

      This Agreement secures the payment and performance of the Exchange
Agreement and the Note, and all renewals, extensions, restructuring and
refinancings thereof (the "Secured Obligations").

      4. Representations and Warranties. Debtor and Subsidiary represent and
warrant as follows:

            (a) Binding Obligation. This Agreement has duly executed and
delivered by the Subsidiary and Debtor, which is a legal, valid and binding
obligation of Debtor and Subsidiary, enforceable against Debtor and Subsidiary
in accordance with its terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium, or similar laws or equitable
principles relating to or limiting creditor's rights generally. This Agreement
is not in violation of any other agreements, instruments, order or judgment by
which Debtor and/or Subsidiary is bound or subject. The execution, delivery and
performance of this Agreement by Debtor and Subsidiary do not require the
consent or approval of any other person, entity or governmental agency.

            (b) Ownership of Shares. Debtor owns the Shares free and clear of
any lien, security interest or encumbrance. No effective financing statement or
other form of lien notice covering all or any part of the Collateral is on file
in any recording office. Debtor is, and as long as this Agreement shall be in
effect pursuant to its terms, shall be the sole, record, legal and beneficial
owner of, and has good and marketable title to, the Shares, subject to no lien,
pledge or encumbrance, except the lien on the Shares created by this Agreement.

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            (c) Office Locations; Debtor Names.

            (i) As of the date hereof, the chief place of business, the chief
      executive office and the office where Debtor and Subsidiary keeps its
      books and records is located at 320 Washington Street, Mount Vernon, New
      York 10553. Debtor and/or Subsidiary have not maintained any other address
      at any time during the five years preceding the date hereof.

            (ii) Debtor and Subsidiary do not do business nor, as of the date
      hereof, have they done business during the past five years under any
      corporate name, trade name or fictitious business name except for Debtor
      and Subsidiary's corporate name set forth above. Debtor and Subsidiary
      will notify Secured Party promptly in writing at least thirty (30)
      calendar days prior to (a) any change in Debtor and/or Subsidiary's name
      and (b) Debtor and/or Subsidiary's commencing the use of any trade name,
      assumed name or fictitious name.

            (d) Perfection. This Agreement, together with the UCC filings
referenced herein, created to secure the Secured Obligations a valid, perfected
and priority security interest in the Collateral, and all filings and other
actions necessary or desirable to perfect and protect such security interest
have been duly taken.

            (e) Governmental Authorizations; Consents. No authorization,
approval or other action by, and no notice to or filing with, any governmental
authority or regulatory body or consent of any other Person is required either
(i) for the grant by Debtor and Subsidiary of the Security Interests granted
hereby or for the execution, delivery or performance of this Agreement by Debtor
and Subsidiary or (ii) for the perfection of or the exercise by Secured Party of
its rights and remedies hereunder (except as may have been taken by or at the
direction of Debtor, Subsidiary or Secured Party) other than the filing of
financing statements in connection with the perfection of the Security
Interests.

            (f) Value of Collateral. The value of the Collateral as of the date
hereof is approximately $10,000,000.

            (g) Accurate Information. All information heretofore, herein or
hereafter supplied to Secured Party by or on behalf of Debtor and Subsidiary
with respect to the Collateral is and will be accurate and complete in all
material respects.

            (h) Deficiency. Debtor and Subsidiary will remain liable for any
deficiency in the event that the delivery of the Shares to the Secured Party is
insufficient to satisfy the Debtor's obligations under the Notes.

            (i) Survival. From and after the date hereof and so long as this
Agreement shall be in effect pursuant to its terms, the Debtor and Subsidiary
agree that they shall not take any action that would cause the Debtor and/or
Subsidiary to be in breach or default of any of the Secured Obligations, that
all representations and warranties made by Debtor and Subsidiary shall survive
this Agreement and that as of the date hereof, the Secured Party shall be deemed
to have a priority lien on the Shares for the purposes and in accordance with
the terms and provisions

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hereof, and the Debtor and Subsidiary shall cooperate with the Secured Party and
take all action requested by the Secured Party to ensure the representations and
warranties shall survive this Agreement with respect thereto.

            (j) Delivery. Upon the Shares being delivered to the Secured Party
as heretofore provided, they shall become fully the property of the Secured
Party. In addition, the Debtor and Subsidiary shall promptly take all necessary
action, at the direction of the Secured Party (at no cost to the Secured Party)
to transfer the Shares to the Secured Party or its nominee for sale

            (k) Valid Issuances. The Subsidiary's performance of its obligations
under this Agreement will not (i) result in the creation or imposition by the
Debtor and Subsidiary of any liens, charges, claims or other encumbrances upon
the Shares, or any of the assets of the Subsidiary other than the security
interest granted under this Agreement, or (ii) entitle the holders of
outstanding capital shares of the Subsidiary to preemptive or other rights to
subscribe to or acquire any capital shares or other securities of the
Subsidiary.

            (l) No Conflicts. The execution, delivery and performance of this
Agreement by the Subsidiary and the consummation by the Subsidiary of the
transactions contemplated hereby do not and will not (i) result in a violation
of its Articles of Incorporation or ByLaws or (ii) conflict with, or constitute
a material default (or an event that with notice or lapse of time or both would
become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, patent, patent license,
indenture, instrument or any "lock-up" or similar provision of any underwriting
or similar agreement to which the Subsidiary is a party, or (iii) result in a
violation of any federal, state or local law, rule, regulation, order, judgment
or decree (including federal and state securities laws and regulations)
applicable to the Subsidiary or by which any property or asset of the Subsidiary
is bound or affected, nor is the Subsidiary otherwise in violation of, in
conflict with, or in default under, any of the foregoing except as would not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect. The business of the Subsidiary is not being conducted in
violation of any law, ordinance or regulation of any governmental entity, except
for possible violations that either singly or in the aggregate would not
reasonably be expected to have a Material Adverse Effect.

            (m) No Undisclosed Liabilities. The Subsidiary has no liabilities or
obligations, known or unknown, absolute or otherwise (individually or in the
aggregate), which have not been disclosed in writing to the Secured Party or
otherwise publicly announced, or as incurred in the ordinary course of the
Subsidiary's business since January 1, 1999, or which, individually or in the
aggregate, would reasonably be expected to have a Material Adverse Effect.

            (n) Litigation and Other Proceedings. There are no lawsuits or
proceedings pending or to the knowledge of the Debtor and/or Subsidiary
threatened, against the Subsidiary, nor has the Debtor and Subsidiary received
any written or oral notice of any such action, suit, proceeding or
investigation, which would reasonably be expected to have a Material Adverse
Effect. No judgment, order, writ, injunction or decree or award has been issued
by or, so far as is

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known by the Debtor and Subsidiary, requested of any court, arbitrator or
governmental agency which would be reasonably expected to result in a Material
Adverse Effect.

            (o) Employee Relations. The Subsidiary is not involved in any labor
dispute, nor, to the knowledge of the Debtor and Subsidiary, is any such dispute
threatened which could reasonably be expected to have a Material Adverse Effect.
None of the Subsidiary's employees is a member of a union and the Debtor and
Subsidiary believe that Subsidiary's relations with its employees are good.

            (p) Insurance. The Subsidiary is insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as
management of the Debtor and Subsidiary believe to be prudent and customary in
the businesses in which the Subsidiary is engaged. The Debtor and Subsidiary
have no notice to believe that the Subsidiary will not be able to renew its
existing insurance coverage as and when such coverage expires, or obtain similar
coverage from similar insurers as may be necessary to continue its business at a
cost that would not have a Material Adverse Effect.

            (q) Patents and Trademarks. The Subsidiary has, or has rights to
use, all patents, patent applications, trademarks, trademark applications,
service marks, trade names, copyrights, licenses, trade secrets and other
intellectual property rights which are necessary for use in connection with its
business or which the failure to so have would have a Material Adverse Effect
(collectively, the "Intellectual Property Rights"). To the best knowledge of the
Subsidiary, none of the Intellectual Property Rights is infringing, or will
infringe on any trademark, trade name, patent right, copyright, license, trade
secret or other similar right of others currently in existence rights of any
other Person, and the Subsidiary either owns or has duly licensed or otherwise
acquired all necessary rights with respect to the Intellectual Property Rights.
The Subsidiary has not received any notice from any third party of any claim of
infringement by the Subsidiary of any of the Intellectual Property Rights, and
has no reason to believe there is any basis for any such claim. To the best
knowledge of the Subsidiary, there is no existing infringement by another Person
on any of the Intellectual Property Rights.

            (r) Permits; Compliance. Subsidiary is in possession of and
operating in compliance with all franchises, grants, authorizations, licenses,
permits, easements, variances, exemptions, consents, certificates, approvals and
orders necessary to own, lease and operate its properties and to carry on its
business as it is now being conducted (collectively, the "Subsidiary Permits")
all of which are valid and in full force and effect, and there is no action
pending or, to the knowledge of the Subsidiary, threatened regarding the
suspension or cancellation of any of the Subsidiary Permits except for such
Subsidiary Permits, the failure of which to possess, or the cancellation, or
suspension of which, would not, individually or in the aggregate, have a
Material Adverse Effect. To the Debtor and/or Subsidiary's knowledge, the
Subsidiary is in material conflict with, or in material default or material
violation of, any of the Subsidiary Permits. Since January 1, 1999 the
Subsidiary has not received any notification with respect to possible material
conflicts, material defaults or material violations of applicable laws.

            (s) Taxes. All federal, state, city and other tax returns, reports
and declarations required to be filed by or on behalf of the Subsidiary have
been filed and such returns are complete and accurate and disclose all taxes
(whether based upon income, operations,

<PAGE>

purchases, sales, payroll, licenses, compensation, business, capital, properties
or assets or otherwise) required to be paid in the periods covered thereby.

            (t) No Bankruptcy. Debtor and Subsidiary are aware of no facts or
claims against it that would, and the Debtor and/or Subsidiary has no present
intention to, liquidate the assets of the Subsidiary and/or seek bankruptcy
protection either voluntarily or involuntarily.

            (u) No Default. Subsidiary is not in default in the performance or
observance of any material obligation, agreement, covenant or condition
contained in any indenture, mortgage, deed of trust or other material instrument
or agreement to which it is a party or by which it is or its property is bound

            (v) Title to Assets. Subsidiary has good and marketable title to all
properties and material assets as owned by it, free and clear of any pledge,
lien, security interest, encumbrance, claim or equitable interest other than
such as are not material to the business of Subsidiary.

            (w) Organization of the Subsidiary. The Subsidiary is a corporation
duly incorporated and existing in good standing under the laws of the State of
Delaware and has all requisite corporate authority to own its properties and to
carry on its business as now being conducted. The Subsidiary is duly qualified
as a foreign corporation to do business and is in good standing in every
jurisdiction in which the nature of the business conducted or property owned by
it makes such qualification necessary, other than those (individually or in the
aggregate) in which the failure so to qualify would not reasonably be expected
to have a Material Adverse Effect. The Subsidiary is not in violation of any
material terms of its Articles of Incorporation or Bylaws.

            (x) Authority. (i) The Subsidiary has the requisite corporate power
and authority to enter into and perform its obligations under this Agreement,
(ii) the execution, issuance and delivery of this Agreement by the Subsidiary
and the consummation by it of the transactions contemplated hereby have been
duly authorized by all necessary corporate action and no further consent or
authorization of the Subsidiary, its shareholders, or its Board of Directors is
necessary, and (iii) this Agreement has been duly executed and delivered by the
Subsidiary and constitute valid and binding obligations of the Subsidiary
enforceable against the Subsidiary in accordance with their terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency, or
similar laws relating to, or affecting generally the enforcement of, creditors'
rights and remedies or by other equitable principles of general application.
Upon their issuance and delivery pursuant to this Agreement, the Shares will be
validly issued, fully paid and nonassessable, and will be free of any liens or
encumbrances other than those created hereunder or by the actions of the Secured
Party and those granted to Limeridge LLC.

<PAGE>

      5. Further Assurances; Covenants

            (a) Other Documents and Actions. Debtor and Subsidiary will, from
time to time, at its expense, promptly execute and deliver all further
instruments and documents and take all further action that may be necessary or
desirable, or that Secured Party may reasonably request, in order to perfect and
protect any security interest granted or purported to be granted hereby or to
enable Secured Party to exercise and enforce its rights and remedies hereunder
with respect to any Collateral. Without limiting the generality of the
foregoing, Debtor and/or Subsidiary will: (i) execute and file such financing or
continuation statements, or amendments thereto, and such other instruments or
notices, as may be necessary or desirable, or as Secured Party may reasonably
request, in order to perfect and preserve the security interests granted or
purported to be granted hereby; (ii) at any reasonable time, upon demand by
Secured Party exhibit the Collateral to allow inspection of the Collateral by
Secured Party or persons designated by Secured Party; (iii) upon Secured Party's
request, appear in and defend any action or proceeding that may affect
Subsidiary's title to or Secured Party's security interest in the Collateral,
and (iv) take all action necessary to have the Pledged Stock transferred in the
name of the Pledgee.

            (b) Secured Party Authorized. Debtor and Subsidiary hereby
authorizes Secured Party to file one or more financing or continuation
statements, and amendments thereto, relating to all or any part of the
Collateral without the signature of Debtor and/or Subsidiary where permitted by
law.

            (c) Stock Dividends, Distributions, etc. If, while this Agreement is
in effect, the Debtor and/or Subsidiary shall became entitled to receive or
shall receive any stock certificate (including, without limitation, any
certificate representing a stock dividend, stock split, conversion of a
convertible security or a distribution in connection with any reclassification
or any increase or reduction of capital, or issued in connection with any
reorganization), option or right, whether as an addition to, in substitution, of
or in exchange for any of the Shares, Debtor and Subsidiary agrees that such
stock certificate, option or right shall be additional collateral security for
the Secured Obligations, and shall be delivered to Escrow Agent to be held as
Collateral pursuant to the terms of this Agreement.

            (d) Other Information. Debtor and Subsidiary will, promptly upon
request, provide to Secured Party all information and evidence it may reasonably
request concerning the Collateral to enable Secured Party to enforce the
provisions of this Agreement.

            (e) Maintenance. The Debtor and Subsidiary will maintain the
business of the Subsidiary as presently operated, and shall take any and all
actions necessary for such maintenance as are customary.

      6. Escrow Agent. The parties each hereby designate The Goldstein Law
Group, P.C., New York NY 10006 as the "Escrow Agent" to hold the Shares in
accordance with the escrow agreement dated as of the date hereof. Simultaneously
with the execution of this Agreement, Debtor has delivered the Shares along with
duly endorsed stock powers that permit Secured Party to transfer the Shares to
the Secured Party if an Event of Default occurs, as set forth herein or in the
Notes to the Escrow Agent to be held by Escrow Agent as Collateral under

<PAGE>

this Agreement, to secure complete and final payment by the debtor of the
Secured Obligations in accordance with the terms and provisions of this
Agreement.

      7. Voting Rights. Unless an Event of Default, as defined herein or in the
Note, shall have occurred, Debtor shall be entitled to vote the Shares and to
give consents, waiver and ratification in respect of the Shares; provided,
however, that no vote shall be cast, or consent, waiver or ratification given or
action taken, which would violate any rights the Secured Party has to the Shares
under the terms of this Agreement or the Notes.

      8. Rights of Secured Party. Any of the Shares may, if an Event of Default
has occurred and is continuing (as defined below or in the Note), (a) be
registered in the name of the Secured Party and its nominees (for which a power
of attorney coupled with an interest is hereby granted), which may thereafter
exercise all voting and other rights and exercise any and all rights of
conversion, exchange, subscription or any other rights, privileges or options
pertaining to any of the Shares as if it were the absolute owner thereof or (b)
to the extent permitted by law, be sold by Secured Party in the name of Debtor
to any third party with proceeds (up to the amount equal to the Secured
Obligations plus any and all monies due to the Secured Party pursuant to this
Agreement and the Exchange Agreement) of such sale being paid to Secured Party
(for which a power of attorney coupled with an interest is hereby granted). In
addition, Debtor and Subsidiary grant to Secured Party a power of attorney
coupled with an interest to sign on behalf of Debtor and Subsidiary after an
Event of Default (as defined herein or in the Note), a statement renouncing or
modifying Debtor and Subsidiary right under section 9-505 of the Uniform
Commercial Code of the State of New York.

      9. Secured Party Appointed Attorney-in-Fact. Debtor and Subsidiary hereby
irrevocably appoint Secured Party as its attorney-in-fact, with full authority
in the place and stead of Debtor and Subsidiary and in the name of Debtor and
Subsidiary, Secured Party or otherwise, from time to time in Secured Party's
discretion to take any action and to execute any instrument that Secured Party
may deem necessary or advisable after the occurrence and during the continuation
of an Event of Default to accomplish the purposes of this Agreement, including,
without limitation:

            (a) to obtain and adjust insurance required to be paid to Secured
Party;

            (b) to ask, demand, collect, sue for, recover, compound, receive and
give acquittance and receipts for monies due and to become due under or in
respect of any of the Collateral;

            (c) to file any claims or take any action or institute any
proceedings that Secured Party may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of
Secured Party with respect to any of the Collateral;

            (d) to pay or discharge taxes or liens, levied or placed upon or
threatened against the Collateral, the legality or validity thereof and the
amounts necessary to discharge the same to be determined by Secured Party in its
sole discretion, and such payments made by Secured Party to become obligations
of Debtor and Subsidiary, due and payable immediately without demand and secured
by the Security Interests; and

<PAGE>

            (e) generally to sell, transfer, pledge, make any agreement with
respect to or otherwise deal with any of the Collateral as fully and completely
as though Secured Party were the absolute owner thereof for all purposes, and to
do, at Secured Party's option and Debtor and Subsidiary's expense, at any time
or from time to time, all acts and things that Secured Party deems necessary to
protect, preserve or realize upon the Collateral.

      This power, being coupled with an interest, is irrevocable so long as this
Agreement shall remain in force.

      10. Transfers and Other Liens. Debtor and Subsidiary shall not, without
Secured Party's prior written consent:

            (a) Sell, assign (by operation of law or otherwise) or otherwise
dispose of, or grant any option with respect to, any of the Collateral.

            (b) Create or suffer to exist any lien, security interest or other
charge or encumbrance upon or with respect to any of the Collateral to secure
indebtedness of any Person except for the security interest created by this
Agreement.

      11. Events of Default. The occurrence of any "Event of Default" as that
term is defined in Note shall constitute an Event of Default by Debtor and/or
Subsidiary under this Agreement.

      12. Remedies

            (a) If any Event of Default shall have occurred and be continuing,
Secured Party may declare the entire outstanding principal amount of the Note
immediately due and payable without any notice, demand or other action on the
part of Secured Party.

            (b) If any Event of Default shall have occurred and be continuing,
Secured Party may exercise in respect of the Collateral, in addition to all
other rights and remedies provided for herein or otherwise available to it, all
the rights and remedies of a secured party on default under the UCC (whether or
not the UCC applies to the affected Collateral) and also may: (i) without notice
or demand or legal process, take possession of the Collateral and take any and
all actions necessary to transfer the Shares in the name of the Secured Party;
(ii) without notice except as specified below, sell the Collateral or any part
thereof at such time or times, for cash, on credit or for future delivery, and
at such price or prices and upon such other terms as Secured Party may deem
commercially reasonable; (iii) notify the obligors on any Accounts or
Instruments to make payments there under directly to Secured Party; (iv) without
notice to Debtor and/or Subsidiary, renew, modify or extend any of the Accounts
and Instruments or grant waivers or indulgences with respect thereto or accept
partial payment thereof, or substitute any obligor thereon, in any manner as
Secured Party may deem advisable, without affecting or diminishing Debtor and/or
Subsidiary's continuing obligations hereunder, and (v) and shall have all
applicable remedies set forth in the New York Uniform Commercial Code.

<PAGE>

      13. Application of Proceeds. Upon the occurrence and during the
continuance of an Event of Default as set forth herein, the proceeds of any sale
of, or other realization upon, all or any part of the Collateral shall be
applied: first, to all fees, costs and expenses incurred by Secured Party with
respect to the Collateral; and second, to the Secured Obligations. Secured Party
shall pay over to Debtor and Subsidiary any surplus and Debtor and Subsidiary
shall remain liable for any deficiency.

      14. Expenses. Debtor and Subsidiary agree to pay all insurance expenses
and all expenses of protecting, storing, warehousing, appraising, insuring,
handling, maintaining and shipping the Collateral, all costs, fees and expenses
of perfecting and maintaining the Security Interests, and any and all excise,
property, sales and use taxes imposed by any state, federal or local authority
on any of the Collateral, or with respect to periodic appraisals and inspections
of the Collateral, or with respect to the sale or other disposition thereof. If
Debtor and/or Subsidiary fails promptly to pay any portion of the above expenses
when due or to perform any other obligation of Debtor and/or Subsidiary under
this Agreement, Secured Party may, at its option, but shall not be required to,
pay or perform the same, and Debtor and Subsidiary agree to reimburse Secured
Party therefor on demand. All sums so paid or incurred by Secured Party for any
of the foregoing, any and all other sums for which Debtor and Subsidiary may
become liable hereunder and all costs and expenses (including attorneys' fees,
legal expenses and court costs) incurred by Secured Party in enforcing or
protecting the Security Interests or any of their rights or remedies under this
Agreement shall be payable on demand, shall constitute Secured Obligations,
shall bear interest until paid at the rate provided in the Note and shall be
secured by the Collateral.

      15. Termination of Security Interests; Release of Collateral. Upon payment
in full of all Secured Obligations, the Security Interests shall terminate and
all rights to the Collateral shall revert to Debtor and Subsidiary. Upon such
termination of the Security Interests or release of any Collateral, Secured
Party will, at the expense of Debtor and Subsidiary, execute and deliver to
Debtor and Subsidiary such documents as Debtor and Subsidiary shall reasonably
request to evidence the termination of the Security Interests or the release of
such Collateral, as the case may be.

      16. Notices. Each notice, communication and delivery under this Agreement:
(a) shall be made in writing signed by the party giving it; (b) shall specify
the section of this Agreement pursuant to which given; (c) shall either be
delivered in person or by telecopier, a nationally recognized next business day
courier service or Express Mail; (d) unless delivered in person, shall be given
to the address specified below; (e) shall be deemed to be given (i) if delivered
in person, on the date delivered, (ii) if sent by telecopier, on the date of
telephonic confirmation of receipt, (iii) if sent by a nationally recognized
next business day courier service with all costs paid, on the next business day
after it is delivered to such courier, or (iv) if sent by Express Mail (with
postage and other fees paid), on the next business day after it is mailed. Such
notice shall not be effective unless copies are provided contemporaneously as
specified below, but neither the manner nor the time of giving notice to those
to whom copies are to be given (which need not be the same as the addressee)
shall control the date notice is given or received. The addresses and
requirements for copies are as follows:

<PAGE>

      If to Debtor or Subsidiary:

                  Interiors, Inc.
                  320 Washington Street
                  Mount Vernon, New York 10553
                  Telephone:  (914) 665-5400
                  Facsimile: (914) 665-5469
                  Attention: Max Munn

      With a copy to:

                  Greenberg Traurig
                  200 Park Avenue
                  New York, New York 10166
                  Telephone: (212) 801-9200
                  Facsimile: (212) 801-6400
                  Attention: Stephen A. Weiss, Esq.

      If to Secured Party:

                  Endeavour Capital Fund SA
                  The Maduro Building, P.O. Box 662,
                  Wickhams Cay, Road Town, Tortola,
                  British Virgin Islands
                  Telephone: (284) 494-2217
                  Facsimile: (284) 494-3917
                  Attention: Phil Williams

      Except as otherwise expressly set forth in any particular provision of
this Agreement, any consent or approval required or permitted by this Agreement
to be given by Secured Party may be given, and any term of this Agreement or of
any other instrument related hereto or mentioned herein may be amended, and the
performance or observance by Debtor and/or Subsidiary of any term of this
Agreement, the Exchange Agreement or the Note may be waived (either generally or
in a particular instance and either retroactively or prospectively) with, but
only with, the written specific consent of Secured Party. No waiver shall extend
to or affect any obligation not expressly waived or impair any right consequent
thereon. No course of dealing or delay or omission on the part of Secured Party
in exercising any right shall operate as a waiver thereof or otherwise be
prejudicial thereto. No notice to or demand upon Debtor and/or Subsidiary shall
entitle Debtor and/or Subsidiary to other or further notice or demand in similar
or other circumstances. The rights in this Agreement, the Exchange Agreement and
the Note are cumulative and are not exclusive of any other remedies provided by
law. The invalidity, illegality or unenforceability of any provision in or
obligation under this Agreement shall not affect or impair the validity,
legality or enforceability of the remaining provisions or obligations under this
Agreement.

<PAGE>

      17. Successors and Assigns. This Agreement is for the benefit of Secured
Party and its successors and assigns, and in the event of an assignment of all
or any of the Secured Obligations, the rights hereunder, to the extent
applicable to the Secured Obligations so assigned, may be transferred with such
Secured Obligations. This Agreement shall be binding on Debtor and Subsidiary
and its successors and assigns, provided that Debtor and/or Subsidiary shall not
assign this Agreement without Secured Party's prior written consent.

      18. Changes in Writing. No amendment, modification, termination or waiver
of any provision of this Agreement or consent to any departure by Debtor and/or
Subsidiary therefrom, shall in any event be effective without the written
concurrence of Secured Party, Debtor, and Subsidiary.

      19. Governing Law/Venue/Jurisdiction. This Agreement shall be exclusively
governed by and construed in accordance with the laws of the State of New York,
without giving effect to the conflicts of law principles thereof. Each of the
parties consents to the exclusive jurisdiction of the U.S. District Court
sitting in the Southern District of the State of New York sitting in Manhattan
in connection with any dispute arising under this Agreement and hereby waives,
to the maximum extent permitted by law, any objection, including any objection
based on forum non conveniens, to the bringing of any such proceeding in such
jurisdictions. Each party hereby agrees that if the other party to this
Agreement obtains a judgment against it in such a proceeding, the party which
obtained such judgment may enforce same by summary judgment in the courts of any
country having jurisdiction over the party against whom such judgment was
obtained, and each party hereby waives any defenses available to it under local
law and agrees to the enforcement of such a judgment. Each party to this
Agreement irrevocably consents to the service of process in any such proceeding
by the mailing of copies thereof by registered or certified mail, postage
prepaid, to such party at its address set forth herein. Nothing herein shall
affect the right of any party to serve process in any other manner permitted by
law. Each party waives its right to a trial by jury.

      20. Headings. Cross reference pages and headings contained herein are for
convenience of reference only, do not constitute a part of this Agreement, and
shall not be deemed to limit or affect any of the provisions hereof.

      21. Counterparts. This Agreement may be executed by each party upon a
separate copy, and in such case one counterpart of this Agreement shall consist
of enough of such copies to reflect the signatures of all of the parties. This
Agreement may be executed in two or more counterparts, each of which shall be an
original, and each of which shall constitute one and the same agreement. Any
party may deliver an executed copy of this Agreement and of any documents
contemplated hereby by facsimile transmission to another party and such delivery
shall have the same force and effect as any other delivery of a manually signed
copy of this Agreement or of such other documents.

<PAGE>

      This Security Agreement has been duly executed and delivered by the
parties on the date first written above.

                                        Interiors, Inc.

                                        By: /s/ Max Munn
                                           -------------------------------------
                                           Name:  Max Munn
                                           Title: President

                                        Petals, Inc.

                                        By: /s/ Max Munn
                                           -------------------------------------
                                           Name:
                                           Title:

                                        SECURED PARTY:

                                        Endeavour Capital Fund SA

                                        By: /s/
                                           -------------------------------------
                                           Name:
                                           Title:EXECUTION COPY

                AMENDMENT AND WAIVER NO. 5 TO THE LOAN DOCUMENTS

     AMENDMENT AND WAIVER dated as of October 26, 1999 to (a) the Second Amended
and Restated Credit Agreement dated as of October 28, 1997 (as amended by Letter
Amendment No. 1 dated as of November 18, 1997, Letter Amendment No. 2 dated as
of April 16, 1998, Amendment and Waiver No. 3 to the Loan Documents dated as of
June 29, 1998 and Amendment and Waiver No. 4 to the Loan Documents dated as of
May 26, 1999, the "CREDIT Agreement") among FCN Holding, Inc., a Delaware
corporation ("FCN HOLDING"), International Family Entertainment, Inc., a
Delaware corporation ("IFE"), Saban Entertainment, Inc., a Delaware corporation
("SABAN"), Fox Family Properties, Inc., a Delaware corporation ("FOX
PROPERTIES"), Fox Family Management, LLC, a Delaware limited liability company
("FOX MANAGEMENT" and, together with FCN Holding, IFE, Saban and Fox Properties,
the "Borrowers"), Fox Kids Holdings, LLC, a Delaware limited liability company
("HOLDINGS"), as Guarantor, the banks, financial institutions and other
institutional lenders (collectively, the "LENDERS") party to the Credit
Agreement, Citicorp USA, Inc., as administrative agent (the "ADMINISTRATIVE
AGENT") for such Lenders and the other Secured Parties referred to therein, and
Salomon Smith Barney Inc. (formerly known as Citicorp Securities, Inc.), Chase
Securities, Inc. and BankBoston, N.A., as Co-Arrangers for the Facilities
referred to therein, (b) the Fox Kids Guarantee dated October 28, 1997 (as
amended by Letter Amendment No. 2 dated as of April 16, 1998, Amendment and
Waiver No. 3 to the Loan Documents dated as of June 29, 1998 and Amendment and
Waiver No. 4 to the Loan Documents dated as of May 26, 1999, the "FOX KIDS
GUARANTEE") made by Fox Kids in favor of the Secured Parties referred to
therein, (c) the Pledge and Assignment Agreement dated as of October 28, 1997
(as amended by Amendment and Waiver No. 3 to the Loan Documents dated as of June
29, 1998 and Amendment and Waiver No. 4 to the Loan Documents dated as of May
26, 1999 and as further amended, supplemented or otherwise modified through the
date hereof, the "PLEDGE AND ASSIGNMENT AGREEMENT") made by Fox Kids, Holdings
and each of the Subsidiaries of Holdings listed on the signature pages thereof,
as pledgors, to and in favor of the Administrative Agent, and (d) the other Loan
Documents referred to in the Credit Agreement. Capitalized terms not otherwise
defined in this Amendment and Waiver shall have the same meanings as specified
therefor in the Credit Agreement.

                             PRELIMINARY STATEMENTS

     (1) The Borrowers have requested that the Lenders agree to amend and
otherwise modify the Credit Agreement and the other Loan Documents in order to
permit:

          (a) all of the Equity Interests in Fox Kids Europe Limited, Fox Kids
     France SARL, TV 10 Holdings, Saban Merchandising and Licensing GmbH, Saban
     Entertainment Italy Srl and Saban Entertainment (UK) Ltd. (collectively,
     the "RESTRUCTURED EUROPEAN SUBSIDIARIES"), certain properties, assets and
     businesses of Saban International, N.V. and Saban International Paris SARL,
     and the Intercompany Note dated June 28, 1999 of IFE owing to FKE Holdings
     (the "EXISTING IFE INTERCOMPANY NOTE") to be sold, contributed or otherwise
     transferred from Saban and certain of its Subsidiaries to Fox Kids Europe,
     N.V., a newly created Dutch company that prior to the consummation of the
     FKE Equity Offering (as hereinafter defined) will be a wholly owned
     Subsidiary of Saban ("FOX KIDS EUROPE"), so that, upon the consummation of
     all such sales, contributions and transfers, Fox Kids Europe (i) will own
     substantially all of the existing television, merchandising, home video and
     Internet rights, and all amounts receivable under existing distribution or
     exploitation agreements due on or after the Restructuring Effective Date
     (as hereinafter defined), in and to the children's television series and
     specials owned or controlled

<PAGE>

     by Saban and certain of its Subsidiaries, subject to third party
     participation claims, and the future rights to Internet technologies and
     applications relating to children's programming and properties of Saban and
     certain of its Subsidiaries, for distribution in the territories set forth
     in Part III of Annex A hereto and (ii) will have the right to acquire the
     same rights in such territories in all children's programming and
     properties produced or acquired by Saban and certain of its Subsidiaries in
     the future, all as more fully described in Part I of Annex A hereto
     (together with the contributions by FKE Holdings and, in turn, by Fox Kids
     SPC2 of the Existing IFE Intercompany Note described in clause (c)(i)
     below, collectively, the "EUROPEAN SUBSIDIARIES RESTRUCTURING");

          (b) the sale by Fox Kids Europe of a portion of its Voting Interests
     to the public (the "FKE EQUITY OFFERING") pursuant to an effective
     registration statement under the Securities Act of 1933, as amended, or an
     exemption from the registration requirements thereof, and otherwise on the
     terms and conditions of the Final Offering Memorandum to be dated November
     1999 (the "FINAL OFFERING MEMORANDUM");

          (c) (i) the contribution by FKE Holdings to Fox Kids SPC2, Inc., a
     California corporation and a newly created, wholly owned subsidiary of FKE
     Holdings ("FOX KIDS SPC2"), and, in turn, the contribution by Fox Kids SPC2
     to Fox Kids Europe of the Existing IFE Intercompany Note as part of the
     European Subsidiaries Restructuring and (ii) upon the consummation of the
     FKE Equity Offering, the restatement of the Existing IFE Intercompany Note
     on the terms and conditions of the IFE/FKE Senior Notes (as hereinafter
     defined); and

          (d) the issuance by IFE of a senior unsecured note due May 2020 in
     favor of Fox Kids Europe (together with the restated IFE Intercompany Note
     referred to in clause (c)(ii) above, the "IFE/FKE SENIOR NOTES") in a
     principal amount equal to the loan made by Fox Kids Europe to IFE on the
     Offering Effective Date (as hereinafter defined) with the aggregate amount
     of cash proceeds received by Fox Kids Europe in the FKE Equity Offering in
     excess of $160,000,000.

The European Subsidiaries Restructuring, the FKE Equity Offering, the
contributions by FKE Holdings to Fox Kids SPC2 and, in turn, by Fox Kids SPC2 to
Fox Kids Europe of the Existing IFE Intercompany Note, the subsequent
restatement of the Existing IFE Intercompany Note on the terms and conditions of
the IFE/FKE Senior Notes and, if applicable, the issuance of the additional
IFE/FKE Senior Note are hereinafter collectively referred to as the "AMENDMENT
NO. 5 TRANSACTIONS".

     (2) The Lenders have indicated their willingness to agree to amend the
Credit Agreement and the other Loan Documents in order, among other things, to
permit the amendments and modifications thereto described in the foregoing
Preliminary Statements on the terms and subject to the satisfaction of
conditions set forth herein.

     SECTION 1. AMENDMENTS TO CERTAIN PROVISIONS OF THE CREDIT AGREEMENT
EFFECTIVE ON THE RESTRUCTURING EFFECTIVE DATE. The Credit Agreement is, upon the
occurrence of the Restructuring Effective Date, hereby amended to read as
follows:

          (a) Section 1.01 of the Credit Agreement is hereby amended to add the
     following new definitions in their appropriate alphabetical order:

                                   EX-10.1 - 2
<PAGE>

               "AMENDMENT AND WAIVER NO. 5" means Amendment and Waiver No. 5 to
          the Loan Documents dated as of October 26, 1999.

               "AMENDMENT NO. 5 TRANSACTIONS" means, collectively, (a) the
          consummation of the European Subsidiaries Restructuring and the FKE
          Equity Offering, (b) the execution and delivery, and the satisfaction
          of the conditions precedent to effectiveness, of Amendment and Waiver
          No. 5 to the Loan Documents, (c) the contributions by FKE Holdings to
          Fox Kids SPC2 and, in turn, by Fox Kids SPC2 to FKE of the
          Intercompany Note dated June 28, 1999 of IFE and the subsequent
          restatement of such Intercompany Note of IFE on the terms and
          conditions of the IFE/FKE Senior Notes, (d) the issuance of the
          additional IFE/FKE Senior Note, if applicable, and (e) the payment of
          the fees and expenses incurred in connection with the consummation of
          the foregoing.

               "EUROPEAN SUBSIDIARIES RESTRUCTURING" means the restructuring of
          the ownership of the Equity Interests in Fox Kids Europe Limited, Fox
          Kids France SARL, TV 10 Holdings, Saban Merchandising and Licensing
          GmbH, Saban Entertainment Italy Srl and Saban Entertainment (UK) Ltd.,
          certain properties, assets and businesses of SINV and Saban
          International Paris SARL and the Intercompany Note dated June 28, 1999
          of IFE by and from Saban and certain of its Subsidiaries to FKE so
          that, upon the consummation of such restructuring, FKE will own all of
          the FKE Intangibles and will have a right of first negotiation to
          acquire the same types of rights as comprise the FKE Intangibles in
          the same territories as are included in the FKE Intangibles in all
          children's programming produced or acquired by SINV in the future,
          together with the absolute right to acquire from SINV such rights in
          such territories in such future children's programming, all as more
          fully described in Part I of Annex A to Amendment and Waiver No. 5.

               "EUROPEAN SUBSIDIARIES RESTRUCTURING EFFECTIVE DATE" means the
          first date on which all of the conditions precedent to the
          effectiveness of the European Subsidiaries Restructuring set forth in
          Amendment and Waiver No. 5 were satisfied.

               "FKE"means Fox Kids Europe, B.V. and, after the conversion of
          such Person from a besloten vennootschap organized under the laws of
          The Netherlands to a naamloze vennootschap organized under the laws of
          The Netherlands as part of the European Subsidiaries Restructuring,
          Fox Kids Europe, N.V., in either case a Subsidiary of Saban.

               "FKE EQUITY OFFERING" means the sale of Voting Interests in FKE
          made to the public by FKE pursuant to an effective registration
          statement under the Securities Act, or an exemption from the
          registration requirements thereof, and otherwise on the terms and
          conditions described in the Final Offering Memorandum dated (or to be
          dated) November 1999, copies of which have been furnished to all of
          the Lenders.

               "FKE EQUITY OFFERING EFFECTIVE DATE" means the first date on
          which all of the conditions precedent to the effectiveness of the FKE
          Equity Offering set forth in Amendment and Waiver No. 5 were
          satisfied.

                                   EX-10.1 - 3
<PAGE>

               "FKE INTANGIBLES" means the existing terrestrial, cable and
          satellite television, merchandising, home video and Internet rights,
          and all amounts receivable under existing distribution or exploitation
          agreements due on or after the European Subsidiaries Restructuring
          Effective Date, in and to children's television series and specials
          owned or controlled by SINV, subject to third party participation
          claims, and the future rights to Internet technologies and
          applications relating to children's programming and properties of
          SINV, for distribution in the territories set forth in Part III of
          Annex A to Amendment and Waiver No. 5.

               "FOX KIDS SPC2" means Fox Kids SPC2, Inc., a California
          corporation and a direct wholly owned subsidiary of FKE Holdings.

               "IFE/FKE SENIOR NOTES" means one or more senior unsecured notes
          of IFE due May 2020 comprised of the restated Intercompany Note dated
          June 28, 1999 of IFE in an aggregate principal amount of $104,114,000
          (of which $4,114,000 represents capitalized interest on such
          Intercompany Note to the European Subsidiaries Restructuring Effective
          Date) and the principal amount of the loan, if any, made by FKE to IFE
          on the FKE Equity Offering Effective Date with the cash proceeds
          received by FKE in the FKE Equity Offering in excess of $160,000,000;
          PROVIDED, HOWEVER, that (a) such senior unsecured notes of IFE shall
          not accrue interest payable in cash at a rate per annum of more than
          10.5%, (b) no payment of the principal amounts outstanding under such
          senior unsecured notes shall be required to be made prior to October
          31, 2005, (c) any prepayment or payment of amounts outstanding from
          time to time under such senior unsecured notes shall be expressly
          permitted under Section 5.02(p), (d) the Obligations under the IFE/FKE
          Senior Notes shall be owing at all times to FKE or one or more of its
          wholly owned Subsidiaries or to one or more of the Borrowers and their
          wholly owned Subsidiaries and (e) all of the other terms and
          conditions of such senior unsecured notes shall be reasonably
          satisfactory to the Lenders.

               "1999 FBC SUBSCRIPTION AGREEMENT" means the Subscription
          Agreement dated as of June 28, 1999 between FKE Holdings and FBC, as
          amended by Amendment No. 1 to be dated on or about the European
          Subsidiaries Restructuring Effective Date.

               "SINV" means Saban International, N.V., a corporation organized
          under the laws of the Netherlands Antilles and a wholly owned
          Subsidiary of Saban."

          (b) The definition of "FOREIGN SUBSIDIARY PLEDGE AGREEMENTS" set forth
     in Section 1.01 of the Credit Agreement is hereby restated in its entirety
     to read as follows:

               "FOREIGN SUBSIDIARY PLEDGE AGREEMENTS" means, collectively, (a)
          the Amended and Restated Pledge Agreement of Shares dated the Phase II
          Closing Date among Saban, SINV and the Administrative Agent, (b) the
          Pledge Agreement dated the Phase II Closing Date between Saban and the
          Administrative Agent, (c) the Deed of Pledge of Shares dated the Phase
          II Closing Date among Saban, Saban International Paris SARL and the
          Administrative Agent, (d) the Pledge Agreement of Shares dated on or
          prior to the European Subsidiaries Restructuring Effective Date among
          Saban, certain of its Subsidiaries and the Administrative Agent and
          (e) each of the other pledge agreements, assignment agreements (or
          other similar documents) governed by the laws of a jurisdiction
          outside of the United States of America that is delivered pursuant to
          Section

                                   EX-10.1 - 4
<PAGE>

          5.02(j), in each of the foregoing cases as amended, supplemented or
          otherwise modified hereafter from time to time in accordance with the
          terms hereof and Section 9.01."

          (c) The definition of "RESTRICTED SUBSIDIARY" set forth in Section
     1.01 of the Credit Agreement is hereby amended to add the following new
     parenthetical at the end of clause (a) thereof:

          "(other than the special purpose companies organized in a jurisdiction
          of the United States as part of the European Subsidiaries
          Restructuring and referred to as "SPC3" and "SPC5" in Annex A to
          Amendment and Waiver No. 5, which will be (or will have been)
          liquidated on or immediately following the FKE Equity Offering
          Effective Date)".

          (d) Section 5.01(j) of the Credit Agreement is hereby amended (i) to
     delete the word "and" at the end of clause (vi) thereof, (ii) to delete the
     punctuation "." at the end of clause (vii) thereof and to substitute
     therefor the new language "; and", (iii) to delete the language "(iv), (vi)
     or (vii) of Section 5.02(f)" at the end of clause (vii) thereof and to
     substitute therefor the new language "(iv), (vi), (vii) or (x) of Section
     5.02(f)" and (iv) to add the following new clause (viii) thereto:

          "(viii) the making and holding of the loans to IFE as evidenced by the
          IFE/FKE Senior Notes and the making and holding of loans by, and
          capital contributions from, Saban to Fox Kids Europe Limited and Fox
          Kids France SARL in accordance with Section 5.02(e)(v)(D)."

          (e) Section 5.01 of the Credit Agreement is hereby further amended to
     add to the end of such Section 5.01 the following new subsection (l):

               "(l) COVENANT TO REESTABLISH SECURITY INTEREST, ETC. If the FKE
          Equity Offering Effective Date shall not have occurred on or prior to
          December 15, 1999, each of the Borrowers and the Restricted
          Subsidiaries (including, without limitation, the special purpose
          companies that are wholly owned Domestic Subsidiaries and are referred
          to as "SPC3" and "SPC5" in Annex A to Amendment and Waiver No. 5),
          shall, no later than December 15, 1999, (i) cause the Intercompany
          Note dated June 28, 1999 of IFE otherwise transferred as part of the
          European Subsidiaries Restructuring to be acquired (or reacquired) by
          a Borrower other than IFE or a Restricted Subsidiary and pledged and
          assigned (or repledged and reassigned) thereby to the Administrative
          Agent for the benefit of the Secured Parties as Collateral, (ii)
          pledge and assign and repledge and reassign, as applicable, to the
          Administrative Agent for the benefit of the Secured Parties all of the
          Equity Interests in, and all of the Intercompany Notes issued by, the
          Restructured European Subsidiaries (as defined in Amendment and Waiver
          No. 5) intended to comprise part of the Collateral, and any other
          items of Collateral that were released by the Lenders and the Agents
          on the European Subsidiaries Restructuring Effective Date and (iii)
          take all actions necessary to comply with the requirements of Section
          5.02(j), all as though Sections 1(g)(iv), 4(b)(ii), 4(c) and 4(d) of
          Amendment and Waiver No. 5 had not become effective."

          (f) Section 5.02(b) of the Credit Agreement is hereby amended (i) to
     delete the word "and" at the end of subclause (ii)(A) thereof, (ii) to
     delete the language "; and" at the end of

                                   EX-10.1 - 5
<PAGE>

     subclause (ii)(B) thereof and to substitute therefor the new language ",
     and", (iii) to add the following new subclause (ii)(C):

               "(C) Indebtedness evidenced by the Intercompany Note dated June
          28, 1999 of IFE owing to FKE (as successor in interest to FKE Holdings
          upon the contribution thereto as part of the European Subsidiaries
          Restructuring);", and

     (iv) to delete the phrase "otherwise expressly permitted under Section
     5.02(e)(xii)" in the sixth and seventh lines of subclause (iii)(C) thereof
     and to substitute therefor the new phrase "otherwise expressly permitted
     under Section 5.02(e)(v)(D) or 5.02(e)(xii)".

               (g) Section 5.02(d) of the Credit Agreement is hereby amended (i)
          to delete the word "and" at the end of subclause (iii)(B) thereof and
          to substitute therefor the new punctuation ",", (ii) to delete the
          phrase "any of their respective Subsidiaries" at the end of subclause
          (iii)(C) thereof immediately following the language "any of the
          Borrowers or " and to substitute therefor the new phrase "any of the
          Restricted Subsidiaries", (iii) to add immediately prior to the
          PROVISO clause to clause (iii) thereof the following new subclause
          (iii)(D) thereto:

                  "and (D) any of the Unrestricted Subsidiaries may sell, lease,
                  transfer or otherwise dispose of any of its property or assets
                  to any of the other Unrestricted Subsidiaries", and

     (iv) to renumber the existing clause (xii) thereof as clause (xi) of
     Section 5.02(d).

          (h) Section 5.02(e) of the Credit Agreement is hereby amended (i) to
     delete the word "or" at the end of subclause (v)(B) thereof and to
     substitute therefor the new punctuation ",", (ii) to add the following new
     subclause (v)(D) thereto:

          "and (D) Saban in Fox Kids Europe Limited and Fox Kids France SARL
          comprised solely of loans and cash capital contributions made
          (directly or indirectly through FKE Holdings) in the ordinary course
          of business prior to the European Subsidiaries Restructuring Effective
          Date in an aggregate amount not to exceed $36,000,000",

     (iii) to delete the phrase "in accordance with clause (vii), (viii), (ix)
     or (xii) of Section 5.02(d)" in clause (viii) thereof and to substitute
     therefor the phrase "in accordance with clause (vii), (viii), (ix) or (xi)
     of Section 5.02(d)", (iv) to delete the word "and" at the end of clause
     (xii) thereof, (v) to delete the punctuation "." at the end of clause
     (xiii) thereof and to substitute therefor the new language "; and" and (vi)
     to add the following new clause (xiv) thereto:

               "(xiv) as part of the European Subsidiaries Restructuring,
          Investments by Saban and one or more of the Restricted Subsidiaries in
          FKE, either directly or indirectly, of all of the Equity Interests in
          Fox Kids Europe Limited, Fox Kids France SARL, TV 10 Holdings, Saban
          Merchandising and Licensing GmbH, Saban Entertainment Italy Srl and
          Saban Entertainment (UK) Ltd., certain properties, assets and
          businesses of SINV and Saban International Paris SARL and the
          Intercompany Note dated June 28, 1999 of IFE in exchange for at least
          51% of the outstanding Equity Interests in FKE (on a fully diluted
          basis); PROVIDED that immediately before and after giving PRO FORMA
          effect to each such Investment, no Default shall have occurred and be
          continuing."

                                   EX-10.1 - 6
<PAGE>

          (i) Section 5.02(g) of the Credit Agreement is hereby amended to
     restate clause (ii) thereof in its entirety to read as follows:

               "(ii) Amend, modify or change in any manner any of the terms or
          conditions of any of the Surviving Indebtedness or any of the other
          Intercompany Notes, except (A) that the terms and conditions of the
          Intercompany Note dated June 28, 1999 of IFE may be amended to reflect
          the capitalization of all accrued and unpaid interest thereon to the
          European Subsidiaries Restructuring Effective Date and to conform to
          the terms of the IFE/FKE Senior Notes upon the restatement thereof on
          the FKE Equity Offering Effective Date , (B) as part of the European
          Subsidiaries Restructuring, the terms of the Intercompany Notes of Fox
          Kids Europe Limited and Fox Kids France SARL that evidence the loans
          made by Saban and FKE Holdings in accordance with Section
          5.02(e)(v)(D) may be amended to replace (1) the maturity thereof upon
          demand with a maturity date that is no earlier than May 31, 2002 and
          (2) the payment of interest on demand with scheduled periodic interest
          payments to occur no more frequently than semiannually, and (C) as
          otherwise expressly permitted under the terms of the Loan Documents
          or, solely in the case of the Intercompany Notes, as, either
          individually or in the aggregate, could not adversely affect Fox Kids
          or any of its Subsidiaries or any of the rights or interests of the
          Administrative Agent or the Lenders in any manner;".

          (j) Section 5.02(l) of the Credit Agreement is hereby amended and
     restated in its entirety to read as follows:

               "(l) AMENDMENTS TO CONSTITUTIVE DOCUMENTS. Amend, or permit any
          of its Subsidiaries to amend, its Constitutive Documents, except that
          (i) Holdings or any of its Subsidiaries may amend its certificate or
          articles of association (or similar Constitutive Documents) to change
          its legal name, (ii) FKE may amend its Articles of Association to
          convert FKE from a besloten vennootschap organized under the laws of
          The Netherlands to a naamloze vennootschap organized under the laws of
          The Netherlands as part of the European Subsidiaries Restructuring and
          (iii) Holdings or any of its Subsidiaries may amend its bylaws (or
          similar Constitutive Documents) in such a manner as, either
          individually or in the aggregate, could not reasonably be expected to
          have a Material Adverse Effect; PROVIDED that copies of any such
          amendment to the Constitutive Documents of Holdings or any such
          Subsidiary shall be delivered to the Administrative Agent at least ten
          Business Days prior to the date on which such amendments are intended
          to become effective; and PROVIDED FURTHER that Holdings or its
          applicable Subsidiary shall have executed and filed such financing
          statements, or amendments thereto, and such instruments and notices,
          and shall have taken such other actions, as may be necessary or as the
          Administrative Agent may reasonably deem desirable and may request in
          order to perfect and preserve the pledges, assignments and security
          interests granted or purported to be granted under the Pledge and
          Assignment Agreement."

          (k) Section 5.03(c) of the Credit Agreement is hereby amended and
     restated in its entirety to read as follows:

               "(c) ANNUAL FINANCIALS. As soon as available and in any event
          within 120 days after the end of each Fiscal Year, an unaudited
          Consolidated balance sheet of Holdings and its Subsidiaries as of the
          end of such Fiscal Year and unaudited

                                   EX-10.1 - 7
<PAGE>

          Consolidated statements of operations, stockholders' equity and cash
          flows of Holdings and its Subsidiaries for such Fiscal Year, setting
          forth in comparative form, in the case of each such Consolidated
          balance sheet, the corresponding figures as of the last day of the
          immediately preceding Fiscal Year from the Consolidated balance sheet
          for such Persons for such immediately preceding Fiscal Year and, in
          the case of each such Consolidated statement of operations,
          stockholders' equity or cash flows, the corresponding figures for the
          immediately preceding Fiscal Year, all in reasonable detail, together
          with an "AGREED UPON PROCEDURES" report prepared in accordance with
          the guidelines of the American Institute of Certified Public
          Accountants then in effect from Ernst & Young LLP (or other
          independent public accountants of recognized standing reasonably
          acceptable to the Required Lenders) for the reconciliation of the
          Consolidated financial statements of Holdings and its Subsidiaries for
          such Fiscal Year with the audited Consolidated financial statements of
          Fox Kids and its Subsidiaries for such Fiscal Year delivered to the
          Lenders pursuant to Section 7(i)(ii) of the Fox Kids Guarantee."

          (l) Section 5.03(d) of the Credit Agreement is hereby amended (i) to
     delete the existing clause (ii) thereof, (ii) to renumber the existing
     clauses (iii), (iv), (v) and (vi) thereof as clauses (ii), (iii), (iv) and
     (v) of Section 5.03(d), respectively, and (iii) to delete the language "in
     the case of any such financial statements delivered to the Lenders pursuant
     to Section 5.03(b)," at the beginning of the renumbered clauses (iv) and
     (v) of Section 5.03(d).

          (m) Section 7.01(c) of the Credit Agreement is hereby amended to
     delete the language "5.01(j) or 5.01(k)" in the third line of clause (i)
     thereof and to substitute therefor the new language "5.01(j), 5.01(k) or
     5.01(l)".

     SECTION 2. AMENDMENTS TO CERTAIN PROVISIONS OF THE CREDIT AGREEMENT
EFFECTIVE ON THE OFFERING EFFECTIVE DATE. The Credit Agreement is, upon the
occurrence of the Offering Effective Date, hereby amended to read as follows:

          (a) The definition of "CONSOLIDATED CASH INTEREST EXPENSE" set forth
     in Section 1.01 of the Credit Agreement is hereby amended (i) to delete the
     word "and" in the last line thereof immediately following the phrase "any
     deferred payment obligation" and to substitute therefor the punctuation ","
     and (ii) to add in the last line thereof after the phrase "not payable in
     cash" the following new subclause (D):

          "and (D) interest expense paid or payable by IFE in respect of
          Indebtedness outstanding under the IFE/FKE Senior Notes".

          (b) The definition of "CONSOLIDATED EBITDA" set forth in Section 1.01
     of the Credit Agreement is hereby amended to add the following new PROVISO
     clause at the end of such definition:

          "; PROVIDED, HOWEVER, that in the case of Fox Kids and its
          Subsidiaries or Holdings and its Subsidiaries, as the case may be, but
          solely with respect to any Measurement Period ending after September
          30, 1999, Consolidated EBITDA shall be increased to include, solely to
          the extent any such amount is otherwise deducted in the determination
          of the Consolidated Net Income of such Person and its Subsidiaries for
          such period, (A) any nonrecurring, noncash restructuring charges taken
          in accordance with GAAP in connection with the consummation of the
          Amendment No. 5 Transactions, (B) the aggregate amount of all
          transaction fees and expenses paid to any Person that is not an

                                   EX-10.1 - 8
<PAGE>

          Affiliate of Fox Kids or any of its Subsidiaries in connection with
          the consummation of the Amendment No. 5 Transactions and (C) any
          noncash charges taken in accordance with GAAP for increases in the
          value of the options to purchase common stock of Fox Kids, which
          options were issued to the Fox Kids Optionholders on or prior to the
          FKE Equity Effective Date, that result solely from increases in the
          market value of the ordinary shares of FKE".

          (c) The definition of "FIXED CHARGE COVERAGE RATIO" set forth in
     Section 1.01 of the Credit Agreement is hereby amended to add the following
     new parenthetical at the end of subclause (b)(v) thereof after the language
     "Fox Kids and its Subsidiaries during such period":

          "(other than the mandatory prepayment of outstanding Advances made on
          the FKE Equity Offering Effective Date with the proceeds of the
          IFE/FKE Senior Notes)".

          (d) Section 2.04(b) of the Credit Agreement is hereby amended (i) to
     add in the third line of subclause (iv)(B) thereof after the phrase "or
     subclause (iii)(A), (iii)(C) or (iii)(G), of Section 5.02(b)" the new
     language "and, except to the extent such reduction is expressly required
     thereunder, subclause (ii)(C) of Section 5.02(b) hereof" and (ii) to add in
     the third line of subclause (iv)(C) thereof after the phrase "pursuant to
     subclause (v), (vi) or (vii) of Section 5.02(f) hereof" the new language
     "and, except to the extent such reduction is expressly required thereunder,
     subclause (ix) of Section 5.02(f) hereof".

          (e) Section 4.01(ll) of the Credit Agreement is hereby amended (i) to
     delete the word "or" in the second line thereof after the phrase "on the
     Effective Date" and to substitute therefor the new punctuation "," and (ii)
     to add in the second line thereof after the phrase "the TV 10 Transactions
     Effective Date" the new language ", the Foreign Subsidiaries Restructuring
     Effective Date or the FKE Equity Offering Effective Date".

          (f) Section 5.02(b) of the Credit Agreement is hereby amended (i) to
     restate subclause (ii)(C) thereof in its entirety to read as follows:

               "(C) Indebtedness evidenced by the IFE/FKE Senior Notes, and the
          restatement on the FKE Equity Offering Effective Date of the
          Intercompany Note dated June 28, 1999 of IFE owing to FKE (as
          successor in interest to FKE Holdings) on the terms and conditions of
          the IFE/FKE Senior Notes; PROVIDED that all of the Net Cash Proceeds
          received from the issuance of the IFE/FKE Senior Notes shall be (or
          shall have been) applied on the date of receipt thereof to reduce the
          Commitments in accordance with, and to the extent required under,
          Section 2.04(b)(iv) and to prepay the Advances outstanding at such
          time in accordance with, and to the extent required under, Section
          2.05(b); and PROVIDED FURTHER that the payee of such Indebtedness
          shall be at all times FKE or one or more of its wholly owned
          Subsidiaries or one or more of the Borrowers and their wholly owned
          Subsidiaries;", and

     (ii) to delete the language "any of subclauses (iii)(B)" in the second and
     third lines of subclause (iii)(N) thereof and to substitute therefor the
     new language "any of subclauses (ii)(C), (iii)(B)".

          (g) Section 5.02(d) of the Credit Agreement is hereby amended (i) to
     add the following new PROVISO clause at the end of clause (iv) thereof:

                                   EX-10.1 - 9
<PAGE>

          " PROVIDED, HOWEVER, that notwithstanding the foregoing provisions of
          this clause (iv), the Borrowers and the applicable Unrestricted
          Subsidiaries may wind up, liquidate or otherwise dissolve the special
          purpose companies organized in a jurisdiction of the United States as
          part of the European Subsidiaries Restructuring and referred to as
          "SPC3" and "SPC5" in Annex A to Amendment and Waiver No. 5 within ten
          Business Days of the FKE Equity Offering Effective Date so long as all
          of the property and assets thereof are distributed to, and all of
          their liabilities and other Obligations are assumed by, their
          respective shareholders upon their winding-up, liquidation or
          dissolution, as the case may be;",

     (ii) to delete the word " and" at the end of clause (x) thereof, (iii) to
     delete the punctuation "." at the end of clause (xi) thereof and to
     substitute therefor the new language "; and" and (iv) to add the following
     new clause (xii) thereto:

               "(xii) at any time prior to the consummation of the FKE Equity
          Offering, FKE Holdings may sell and otherwise transfer to FBC all of
          the Equity Interests in FKE received thereby upon the organization of
          FKE in satisfaction of its Obligations under the 1999 FBC Subscription
          Agreement; PROVIDED that the Fair Market Value of all such Equity
          Interests in FKE so issued to FBC shall not exceed the purchase price
          paid therefor under the 1999 FBC Subscription Agreement."

          (h) Section 5.02(f) of the Credit Agreement is hereby amended (i) to
     delete the language ", (vii) or (viii) of this Section 5.02(f)" in the
     tenth and eleventh lines thereof and to substitute therefor the new
     language ", (vii), (viii) or (ix) of this Section 5.02(f)", (ii) to delete
     the word "and" at the end of subclause (ii)(C) thereof after the language
     "Section 8(c)(iv) of the Fox Kids Guarantee" and to substitute therefor the
     new punctuation ",", (iii) to add at the end of clause (ii) thereof the
     following new subclause (ii)(E):

          "and (E) to pay additional compensation to one or more of its senior
          executives during the calendar year ending December 31, 1999 in
          connection with the FKE Equity Offering in an aggregate amount not to
          exceed $6,500,000",

     (iv) to delete the word "and" at the end of clause (vii) thereof, (v) to
     delete the punctuation "." at the end of clause (viii) thereof and to
     substitute therefor the new punctuation ";" and (vi) to add the following
     new clauses (ix) and (x) thereto:

               "(ix) FKE may issue and sell its ordinary shares in the FKE
          Equity Offering; provided that upon consummation of the FKE Equity
          Offering, the Borrowers and the Restricted Subsidiaries shall continue
          to own and control legally and beneficially Voting Interests in FKE
          representing at least 51% of the combined voting power of all of the
          Voting Interests in FKE (on a fully diluted basis) and Equity
          Interests in FKE representing at least 51% of the issued and
          outstanding Equity Interests in FKE (on a fully diluted basis); and
          PROVIDED FURTHER that FKE receives not less than $140,000,000 in gross
          proceeds in cash from such issuance and sale and applies such proceeds
          on the date of receipt thereof in the following manner:

                    (A) FIRST, at least $100,000,000 of the Net Cash Proceeds so
               received by FKE shall be paid to SINV in full satisfaction of the
               Intercompany Note of FKE owing to SINV (which Intercompany Note
               was issued in partial

                                  EX-10.1 - 10
<PAGE>

               consideration for the transfer of the FKE Intangibles, and
               assumed by FKE, in the European Subsidiaries Restructuring) and,
               immediately thereafter, paid to Saban in satisfaction of
               co-production costs funded by Saban in the ordinary course of
               business and, immediately thereafter, applied by Saban as
               follows:

                         (1) not more than $25,000,000 of such payment so
                    received by Saban may be retained thereby for use in the
                    business and operations of the Borrowers and their
                    Subsidiaries in the ordinary course; and

                         (2) the remaining proceeds of such payment so received
                    by Saban shall be applied to reduce the Commitments in
                    accordance with, and to the extent required under, Section
                    2.04(b)(iv) and to prepay the Advances outstanding at such
                    time in accordance with, and to the extent required under,
                    Section 2.05(b);

                    (B) SECOND, not more than $60,000,000 of the Net Cash
               Proceeds so received by FKE may be retained thereby for use in
               the businesses and operations of FKE and its Subsidiaries in the
               ordinary course; and

                    (C) THIRD, all remaining Net Cash Proceeds so received by
               FKE shall be advanced (either directly or through the repayment
               of amounts outstanding under existing Intercompany Notes among
               IFE and its Affiliates) to IFE on the terms and conditions of the
               IFE/FKE Senior Notes and immediately applied by IFE in accordance
               with the terms of Section 5.02(b)(ii)(C); and

               (x) FKE may issue and sell its ordinary shares, or options or
          other rights to acquire its ordinary shares, to one or more employees
          of FKE and its Subsidiaries pursuant to a stock option plan duly
          adopted by the board of directors of FKE so long as (A) the aggregate
          number of ordinary shares of FKE so issued and sold (or subject to all
          options and other rights so issued and sold) shall not exceed 10% of
          the outstanding ordinary shares of FKE on the date of the related
          issuance and sale (on a fully diluted basis), (B) the purchase price
          for any ordinary shares of FKE so issued and sold, or the exercise
          price for any options or other rights so issued and sold, shall not be
          less than the Fair Market Value of the date of such issuance and sale,
          and such purchase price shall be paid in cash or with a loan or
          advance from one of the Borrowers or their Subsidiaries otherwise
          permitted under Section 5.02(e)(vi) and (C) immediately after giving
          effect to each such issuance and sale, the Borrowers and the
          Restricted Subsidiaries shall continue to own and control legally and
          beneficially Voting Interests in FKE representing at least 51% of the
          combined voting power of all of the Voting Interests in FKE (on a
          fully diluted basis) and Equity Interests in FKE representing at least
          51% of the issued and outstanding Equity Interests in FKE (on a fully
          diluted basis)."

          (i) Section 5.02(g) of the Credit Agreement is hereby amended (i) to
     delete the word "and" at the end of subclause (i)(E) thereof, (ii) to
     delete the punctuation ";" at the end of subclause (i)(F) thereof and to
     substitute therefor the new language ", and" and (iii) to add the following
     new subclause (i)(G) thereto:

               "(G) the prepayment of amounts outstanding from time to time
          under the IFE/FKE Senior Notes in accordance with Section 5.02(p);".

                                  EX-10.1 - 11
<PAGE>

          (j) Section 5.02 of the Credit Agreement is hereby further amended to
     add at the end of such Section 5.02 the following new subsection (p):

               "(p) PAYMENTS UNDER THE IFE/FKE SENIOR NOTES. Pay, prepay,
          redeem, purchase, defease or otherwise satisfy in cash all or any
          portion of the IFE/FKE Senior Notes (whether principal, interest, fees
          or other amounts) unless immediately before and after giving PRO forma
          effect to such payment, prepayment, redemption, purchase, defeasance
          or other satisfaction, no Default shall have occurred and be
          continuing."

     SECTION 3. AMENDMENTS TO CERTAIN PROVISIONS OF THE FOX KIDS GUARANTEE
EFFECTIVE ON THE RESTRUCTURING EFFECTIVE DATE. The Fox Kids Guarantee is, upon
the occurrence of the Restructuring Effective Date, hereby amended to read as
follows:

          (a) Section 6(aa) of the Fox Kids Guarantee is hereby amended (i) to
     delete the word "or" in the second line thereof after the phrase "on the
     Effective Date" and to substitute therefor the new punctuation "," and (ii)
     to add to the second line thereof after the phrase "on the TV 10
     Transactions Effective Date" the new phrase ", the European Subsidiaries
     Restructuring Effective Date or the FKE Equity Offering Effective Date".

          (b) Section 7(g) of the Fox Kids Guarantee is hereby amended (i) to
     delete the word "and" at the end of clause (vi) thereof, (ii) to delete the
     punctuation "." at the end of clause (vii) thereof and to substitute
     therefor the new language "; and" and (iii) to add the following new clause
     (viii) thereto:

               "(viii) the making and holding of the loans to IFE as evidenced
          by the IFE/FKE Senior Notes and the making and holding of loans by,
          and capital contributions from, Saban to Fox Kids Europe Limited and
          Fox Kids France SARL in accordance with Section 5.02(e)(v)(D) of the
          Credit Agreement."

          (c) Section 8(d) of the Fox Kids Guarantee is hereby amended to add at
     the end of clause (iii) thereof the following new language:

          "except, solely in the case of the FBC Subordinated Notes Documents,
          the NAHI Subordinated Notes Documents or the Permitted Affiliate
          Subordinated Notes, as, either individually or in the aggregate, could
          not adversely affect Fox Kids or any of its Subsidiaries or any of the
          rights or interests of the Administrative Agent or the Lenders in any
          manner."

     SECTION 4. WAIVERS OF AND CONSENTS UNDER CERTAIN PROVISIONS OF THE LOAN
DOCUMENTS. (a) Any and all Defaults and Events of Default under Section
7.01(c)(i) of the Credit Agreement that have occurred and are continuing as a
result of the failure of Holdings and the Borrowers to deliver the financial
statements required to be delivered thereby under Sections 5.03(b) or 5.03(c) of
the Credit Agreement for any Fiscal Quarter or Fiscal Year occurring prior to
the date of this Amendment and Waiver are hereby waived by the Lenders.

          (b) Each of the Lenders and the Agents hereby agree, on and as of the
     Restructuring Effective Date, but solely in connection with the
     consummation of the Amendment No. 5 Transactions, to waive:

                                  EX-10.1 - 12
<PAGE>

               (i) the requirements of the second PROVISO to the definition of
          "FAIR MARKET Value" set forth in Section 1.01 of the Credit Agreement
          that a Responsible Officer certify to the Lenders the Fair Market
          Value of the Equity Interests in any Unrestricted Subsidiary, or the
          other property, assets or businesses of Saban or any of its
          Subsidiaries, being sold, contributed or otherwise transferred as part
          of the European Subsidiaries Restructuring and the Fair Market Value
          of the Equity Interests in Fox Kids Europe being issued to FBC in
          satisfaction of the Obligations of Fox Kids Europe under the 1999 FBC
          Subscription Agreement, or obtain an independent determination thereof
          from a qualified appraiser (although all of the other requirements of
          such definition of "FAIR MARKET VALUE" shall remain in full force and
          effect with respect to each such transaction); and

               (ii) the requirements of Section 5.02(j) of the Credit Agreement
          and Section 1(a)(ii) of the Pledge and Assignment Agreement (and the
          similar provisions of certain of the Foreign Subsidiary Pledge
          Agreements) that the Borrowers and the Restricted Subsidiaries pledge
          to the Administrative Agent, on behalf of the Secured Parties, up to
          66% of the Voting Interests and all of the other Equity Interests in
          the Unrestricted Subsidiaries being organized thereby as part of the
          European Subsidiaries Restructuring unless either (A) such Voting
          Interests or other Equity Interests will continue to be owned or
          otherwise held directly by one or more of the Borrowers and the
          Restricted Subsidiaries upon consummation of the European Subsidiaries
          Restructuring or (B) the European Subsidiaries Restructuring is not
          consummated on or prior to December 15, 1999.

          (c) Each of the Lenders and the Agents hereby consent, on and as of
     the Restructuring Effective Date, to release all liens and security
     interests of the Secured Parties in (i) the Equity Interests in the
     Restructured European Subsidiaries comprising part of the Collateral and
     (ii) Intercompany Notes owing to each of the Restructured European
     Subsidiaries comprising part of the Collateral, in each case in accordance
     with the terms of Section 23(a) of the Pledge and Assignment Agreement (and
     any similar provisions of any of the other Collateral Documents).

          (d) Each of the Lenders and the Agents hereby consent, on and as of
     the Restructuring Effective Date, to release and discharge each of the
     Restructured European Subsidiaries from its guarantee of the Guaranteed
     Obligations (as defined in the Subsidiaries Guarantee) and all of its other
     Obligations under and in respect of the Loan Documents to which such
     Restructured European Subsidiary is a party.

     SECTION 5. CONDITIONS OF EFFECTIVENESS TO THIS AMENDMENT AND WAIVER. (a)
Sections 1, 3 and 4 of this Amendment and Waiver shall become effective as of
the first date (the "RESTRUCTURING EFFECTIVE DATE") on which each of the
following conditions precedent shall have been satisfied:

          (i) The Administrative Agent shall have received (i) counterparts of
     this Amendment and Waiver executed by the Borrowers, Fox Kids, Holdings and
     the Required Lenders or, as to any of the Lenders, advice satisfactory to
     the Administrative Agent that such Lender has executed this Amendment and
     Waiver and (ii) the Consent attached hereto executed by each of the Loan
     Parties (other than Holdings, Fox Kids and the Borrowers).

                                  EX-10.1 - 13
<PAGE>

          (ii) The Required Lenders shall be reasonably satisfied with any and
     all additions and other modifications to the European Subsidiaries
     Restructuring from the structure described in Part I of Annex A hereto. All
     of the Lenders shall have received copies, certified by a Responsible
     Officer of Fox Kids or the Borrowers, of the 1999 FBC Subscription
     Agreement (as defined in Section 1) and all of the other material
     agreements, instruments and other documents evidencing or otherwise setting
     forth the terms and conditions of the European Subsidiaries Restructuring
     (collectively, the "RESTRUCTURING TRANSACTION DOCUMENTS") at least three
     Business Days prior to the Restructuring Effective Date, and shall be
     satisfied with any and all additions and other changes to the terms and
     conditions thereof from those disclosed to the Lenders prior to the date of
     this Amendment and Waiver.

          (iii) All of the Governmental Authorizations, and all of the consents,
     approvals and authorizations of, notices and filings to or with, and other
     actions by, any other Person necessary in connection with any aspect of the
     European Subsidiaries Restructuring or any of the other transactions
     contemplated thereby shall have been obtained (without the imposition of
     any conditions that are not reasonably acceptable to the Required Lenders)
     and shall remain in full force and effect; all applicable waiting periods
     shall have expired without any action being taken by any competent
     authority; and no Requirement of Law shall be applicable in the reasonable
     judgment of the Required Lenders that restrains, prevents or imposes
     materially adverse conditions upon any aspect of the European Subsidiaries
     Restructuring or any of the other transactions contemplated thereby. Each
     aspect of the European Subsidiaries Restructuring shall have been
     consummated or shall be consummated on or prior to the Restructuring
     Effective Date in compliance with all applicable Requirements of Law.

          (iv) The Administrative Agent shall have received on or before the
     Restructuring Effective Date the following, each dated such date (unless
     otherwise specified), in form and substance to which (unless otherwise
     specified) the Lenders shall not have reasonably objected and (unless
     otherwise specified) in sufficient copies for each of the Lenders:

               (A) A certificate of a Responsible Officer of Fox Kids or the
          Borrowers, in form and substance reasonably satisfactory to the
          Administrative Agent, certifying that immediately before and after
          giving PRO FORMA effect to each aspect of the European Subsidiaries
          Restructuring and the other transactions contemplated thereby that are
          to have been consummated at or prior to such time, no Default shall
          have occurred and be continuing and, immediately after giving effect
          to each aspect of the European Subsidiaries Restructuring and such
          other transactions contemplated thereby, Fox Kids and its Subsidiaries
          shall be in PRO FORMA compliance with all of the covenants set forth
          in Section 5.04, such compliance to have been determined on the basis
          of the Consolidated financial statements of Fox Kids and its
          Subsidiaries or Holdings and its Subsidiaries, as applicable, most
          recently delivered to the Lenders pursuant to Section 7(i)(i) or
          7(i)(ii) of the Fox Kids Guarantee or Section 5.03(b) or 5.03(c) of
          the Credit Agreement, respectively, as though the European
          Subsidiaries Restructuring and such other transactions had been
          consummated on the first day of the fiscal period covered thereby.

               (B) Certified copies of (1) the resolutions of the board of
          directors of each Loan Party that is or is to be a party to any aspect
          of the European Subsidiaries Restructuring or the transactions
          contemplated thereby that are to have been consummated at or prior to
          such time approving the Restructuring Transaction Documents to which
          it is or is to be a party and the consummation of each aspect of the

                                  EX-10.1 - 14
<PAGE>

          European Subsidiaries Restructuring and the other transactions
          contemplated by any of the foregoing involving or affecting such Loan
          Party, and (2) all documents evidencing necessary Governmental
          Authorizations, or other necessary consents, approvals,
          authorizations, notices, filings or actions, with respect to any of
          the Restructuring Transaction Documents to which it is or is to be a
          party or the consummation of any aspect of the European Subsidiaries
          Restructuring, or any of the other transactions contemplated by any of
          the foregoing, involving or affecting such Loan Party (other than the
          Constitutive Documents of any Unrestricted Subsidiary that is or will
          become a direct or indirect wholly owned Subsidiary of Fox Kids
          Europe).

               (C) A copy of the appraisal by Houlihan Lokey Howard & Zukin of
          the Fair Market Value of the FKE Intangibles.

               (D) A copy of the certificate or articles of incorporation (or
          similar Constitutive Document) of each of the wholly owned Domestic
          Subsidiaries created as part of the European Subsidiaries
          Restructuring other than the two special purpose companies organized
          in a jurisdiction of the United States as part of the European
          Subsidiaries Restructuring and referred to as "SPC3" and "SPC5" in
          Annex A hereto (collectively, the "NEW RESTRICTED SUBSIDIARIES"), and
          each amendment thereto, certified (as of a date reasonably near the
          Restructuring Effective Date) as being a true and complete copy
          thereof by the Secretary of State (or the equivalent Governmental
          Authority) of the jurisdiction of incorporation of such New Restricted
          Subsidiary.

               (E) A copy of a certificate of the Secretary of State (or the
          equivalent Governmental Authority) of the jurisdiction of
          incorporation of each New Restricted Subsidiary, dated reasonably near
          the Restructuring Effective Date, listing the certificate or articles
          of incorporation (or similar Constitutive Document) of such New
          Restricted Subsidiary and each amendment thereto on file in the office
          thereof and certifying that (1) such amendments are the only
          amendments to the certificate or articles of incorporation (or similar
          Constitutive Document) of such New Restricted Subsidiary on file in
          its office, (2) such New Restricted Subsidiary has paid all franchise
          taxes (or the equivalent thereof) to the date of such certificate and
          (3) such New Restricted Subsidiary is duly organized and is in good
          standing under the laws of the jurisdiction of its incorporation.

               (F) Certificates representing the Pledged Interests comprising
          all of the outstanding Equity Interests in the New Restricted
          Subsidiaries and, to the extent owned or otherwise held by the
          Borrowers and the Restricted Subsidiaries, Fox Kids Europe, in each
          case accompanied by undated stock powers or other appropriate powers
          duly executed in blank, and instruments evidencing the Pledged
          Indebtedness, if any, comprising all of the Indebtedness of any of the
          New Restricted Subsidiaries owing to any of the other Loan Parties,
          duly endorsed in blank, together with:

                    (1) proper amendments to existing financing statements (Form
               UCC-3 or a comparable form) under the Uniform Commercial Code of
               all jurisdictions that may be necessary or that the
               Administrative Agent may reasonably deem desirable in order to
               perfect and protect the liens and security interests created or
               purported to be created under the Pledge and Assignment

                                  EX-10.1 - 15
<PAGE>

               Agreement, covering such Pledged Interests and Pledged
               Indebtedness, in each case completed in a manner satisfactory to
               the Administrative Agent; and

                    (2) evidence that all of the other actions (including,
               without limitation, the completion of all of the other recordings
               and filing of or with respect to the Pledge and Assignment
               Agreement) that may be necessary or that the Administrative Agent
               may reasonably deem desirable in order to perfect and protect the
               liens and security interests created under the Pledge and
               Assignment Agreement have been taken or will be taken in
               accordance with the terms of the Loan Documents.

               (G) One or more guarantee supplements, in substantially the form
          of Exhibit A to the Subsidiaries Guarantee, duly executed by each of
          the New Restricted Subsidiaries.

               (H) One or more pledge agreement supplements, in substantially
          the form of Exhibit B to the Pledge and Assignment Agreement
          (collectively, the "PLEDGE AGREEMENT SUPPLEMENTS"), duly executed by
          each of the New Restricted Subsidiaries, together with:

                    (1) certificates representing the Pledged Interests referred
               to therein, if any, accompanied by undated stock powers or other
               appropriate powers, duly executed in blank;

                    (2) instruments evidencing the Pledged Indebtedness referred
               to therein, if any, duly endorsed in blank;

                    (3) proper financing statements (Form UCC-1 or a comparable
               form) under the Uniform Commercial Code of all jurisdictions that
               may be necessary or that the Administrative Agent may reasonably
               deem desirable in order to perfect and protect the liens and
               security interests created or purported to be created under the
               Pledge Agreement Supplements and the Pledge and Assignment
               Agreement, covering the Collateral of the New Restricted
               Subsidiaries described therein, in each case completed in a
               manner satisfactory to the Administrative Agent and duly executed
               by the applicable New Restricted Subsidiary; and

                    (4) evidence that all of the other actions (including,
               without limitation, the completion of all of the other recordings
               and filings of or with respect to the Pledge Agreement
               Supplements and the Pledge and Assignment Agreement) that may be
               necessary or that the Administrative Agent may reasonably deem
               desirable in order to perfect and protect the liens and security
               interests created under the Pledge Agreement Supplements and the
               Pledge and Assignment Agreement have been taken or will be taken
               in accordance with the terms of the Loan Documents.

               (I) A certificate of each of the New Restricted Subsidiaries,
          signed on behalf of such New Restricted Subsidiary by a Responsible
          Officer thereof,
          dated the Restructuring Effective Date (the statements made in which
          certificate shall be true on and as of the Restructuring Effective
          Date), certifying as to:

                                  EX-10.1 - 16
<PAGE>

                    (1) the absence of any amendments to the certificate or
               articles of incorporation (or similar Constitutive Document) of
               such New Restricted Subsidiary since the date of the Secretary of
               State's (or equivalent Governmental Authority's) certificate
               delivered pursuant to clause (E) of this Section 5(a)(iv) or any
               steps taken by the board of directors or the shareholders (or the
               persons performing similar functions) of such New Restricted
               Subsidiary to effect or authorize any further amendment,
               supplement or other modification thereto;

                    (2) the accuracy and completeness of the bylaws (or the
               equivalent Constitutive Documents, if any) of such New Restricted
               Subsidiary as in effect on the date on which the resolutions of
               the board of directors (or the persons performing similar
               functions) of such New Restricted Subsidiary referred to in
               clause (B) of this Section 5(a)(iv) were adopted and on the
               Restructuring Effective Date (a copy of which shall be attached
               to such certificate);

                    (3) the due organization and good standing of such New
               Restricted Subsidiary as a Person organized under the laws of the
               jurisdiction of its organization, and the absence of any
               proceeding (either pending or contemplated) for the dissolution,
               liquidation or other termination of the existence of such New
               Restricted Subsidiary;

                    (4) the legal and beneficial ownership by such New
               Restricted Subsidiary of all of the Collateral in which such New
               Restricted Subsidiary has purported to have granted a lien and
               security interest to the Administrative Agent, on behalf of the
               Secured Parties, under the Collateral Documents, free and clear
               of all Liens, except for the liens and security interests created
               under the Loan Documents;

                    (5) the accuracy in all material respects of the
               representations and warranties made by such New Restricted
               Subsidiary in the Loan Documents to which it is or is to be a
               party as though made on and as of the Restructuring Effective
               Date, before and after giving effect to this Amendment and Waiver
               and the European Subsidiaries Restructuring; and

                    (6) the absence of any event occurring and continuing, or
               resulting from this Amendment and Waiver or any aspect of the
               European Subsidiaries Restructuring, that would constitute a
               Default other than the Defaults and Events of Default expressly
               waived under Section 4.

               (J) A certificate of the Secretary or an Assistant Secretary of
          each of the New Restricted Subsidiaries certifying the names and true
          signatures of the officers of such New Restricted Subsidiary
          authorized to sign each of the Loan Documents to which it is or is to
          be a party and the other agreements, instruments and documents to be
          delivered hereunder and thereunder.

                                  EX-10.1 - 17
<PAGE>

               (K) A Deed of Pledge of Shares, in substantially the form of the
          Deed of Pledge of Shares dated the Phase II Closing Date, dated the
          Restructuring Effective Date (the "DUTCH FKE PLEDGE") among Saban and
          its applicable Subsidiaries (including Fox Kids Europe) and the
          Administrative Agent, duly executed by Saban, Fox Kids Europe and each
          such Subsidiary, together with evidence that all of the actions
          (including, without limitation, the completion of all of the
          recordings and filings of or with respect to the Dutch FKE Pledge)
          that may be necessary or that the Administrative Agent may reasonably
          deem desirable in order to perfect and protect the liens and security
          interests created under the Dutch FKE Pledge have been taken or will
          be taken in accordance with the terms of the Loan Documents.

               (L) A favorable opinion of Troop, Steuber, Pasich, Reddick &
          Tobey, LLP, special counsel for the Loan Parties, in form and
          substance satisfactory to the Lenders.

               (M) A favorable opinion of Squadron, Ellenoff, Plesent &
          Sheinfeld, LLP, New York counsel for the Loan Parties, in form and
          substance satisfactory to the Lenders.

               (N) A favorable opinion of Stibbe Simont Monahan Duhot, Dutch
          counsel for the Loan Parties, in form and substance satisfactory to
          the Lenders.

          (v) The representations and warranties set forth in each of the Loan
     Documents shall be correct in all material respects on and as of the date
     first above written and the Restructuring Effective Date, before and after
     giving effect to this Amendment and Waiver and the European Subsidiaries
     Restructuring and the transactions contemplated thereby, as though made on
     and as of such date (except (A) for any such representation and warranty
     that, by its terms, refers to a specific date other than the Restructuring
     Effective Date, in which case as of such specific date and (B) that the
     Consolidated financial statements of each of the Borrowers and its
     Subsidiaries and Fox Kids and its Subsidiaries referred to in Sections
     4.01(f), 4.01(g), 4.01(h) and 4.01(i) of the Credit Agreement,
     respectively, shall be deemed to refer to the Consolidated financial
     statements of each such Borrower and its Subsidiaries and Fox Kids and its
     Subsidiaries most recently delivered to the Administrative Agent and the
     Lenders pursuant to Sections 5.03(b) and 5.03(c) of the Credit Agreement
     and Sections 7(i)(i) and 7(i)(ii) of the Fox Kids Guarantee, respectively,
     on or prior to the Restructuring Effective Date and (C) that the forecasted
     Consolidated financial statements of Fox Kids and its Subsidiaries referred
     to in Section 4.01(j) of the Credit Agreement shall be deemed to refer to
     the forecasted Consolidated financial statements of Fox Kids and its
     Subsidiaries most recently delivered to the Administrative Agent and the
     Lenders prior to the Restructuring Effective Date).

          (vi) No event shall have occurred and be continuing, or shall result
     from the effectiveness of this Amendment and Waiver or the European
     Subsidiaries Restructuring, that constitutes a Default other than the
     Defaults and Events of Default expressly waived under Section 4.

          (vii) The Restructuring Effective Date shall have occurred on or prior
     to December 15, 1999.

                                  EX-10.1 - 18
<PAGE>

          (b) Section 2 of this Amendment and Waiver shall become effective as
     of the first date (the "OFFERING EFFECTIVE DATE") on which each of the
     following conditions precedent shall have been satisfied:

               (i) The Restructuring Effective Date shall have occurred. The
          Offering Effective Date shall have occurred on or prior to December
          15, 1999.

               (ii) The Required Lenders shall be reasonably satisfied with any
          and all additions and other modifications (A) to the FKE Equity
          Offering from the structure described in Part I of Annex A hereto and
          (B) the terms and conditions of the IFE/FKE Senior Notes from the
          terms and conditions thereof disclosed to the Lenders prior to the
          Restructuring Effective Date. All of the Lenders shall have received
          copies, certified by a Responsible Officer of Fox Kids or the
          Borrowers, of the Final Offering Memorandum, the form of the IFE/FKE
          Senior Notes and all of the other material agreements, instruments and
          other documents evidencing or otherwise setting forth the terms and
          conditions of the Amendment No. 5 Transactions at least three Business
          Days prior to the Offering Effective Date, and shall be satisfied with
          any and all additions and other changes to the terms and conditions
          thereof from those disclosed to the Lenders prior to the date of this
          Amendment and Waiver.

               (iii) All of the Governmental Authorizations, and all of the
          consents, approvals and authorizations of, notices and filings to or
          with, and other actions by, any other Person necessary in connection
          with any aspect of the Amendment No. 5 Transactions or any of the
          other transactions contemplated thereby shall have been obtained
          (without the imposition of any conditions that are not reasonably
          acceptable to the Required Lenders) and shall remain in full force and
          effect; all applicable waiting periods shall have expired without any
          action being taken by any competent authority; and no Requirement of
          Law shall be applicable in the reasonable judgment of the Required
          Lenders that restrains, prevents or imposes materially adverse
          conditions upon any aspect of the Amendment No. 5 Transactions or any
          of the other transactions contemplated thereby. Each aspect of the
          Amendment No. 5 Transactions shall have been consummated or shall be
          consummated on or prior to the Offering Effective Date in compliance
          with all applicable Requirements of Law.

               (iv) The Administrative Agent shall have received on or before
          the Offering Effective Date a certificate of a Responsible Officer of
          Fox Kids or the Borrowers, dated the Offering Effective Date and
          otherwise in form and substance reasonably satisfactory to the
          Administrative Agent, certifying that immediately before and after
          giving PRO FORMA effect to each aspect of the Amendment No. 5
          Transactions and the other transactions contemplated thereby, no
          Default shall have occurred and be continuing and (A) immediately
          after giving effect to each aspect of the Amendment No. 5 Transactions
          and the other transactions contemplated thereby, Fox Kids and its
          Subsidiaries shall be in PRO FORMA compliance with all of the
          covenants set forth in Section 5.04, such compliance to have been
          determined on the basis of the Consolidated financial statements of
          Fox Kids and its Subsidiaries or Holdings and its Subsidiaries, as
          applicable, most recently delivered to the Lenders pursuant to Section
          7(i)(i) or 7(i)(ii) of the Fox Kids Guarantee or Section 5.03(b) or
          5.03(c) of the Credit Agreement, respectively, as though the Amendment
          No. 5 Transactions and such other transactions had been consummated on
          the first day of the fiscal period covered thereby.

                                  EX-10.1 - 19
<PAGE>

               (v) The representations and warranties set forth in each of the
          Loan Documents shall be correct in all material respects on and as of
          the date first above written and the Offering Effective Date, before
          and after giving effect to this Amendment and Waiver and the Amendment
          No. 5 Transactions, as though made on and as of such date (except (A)
          for any such representation and warranty that, by its terms, refers to
          a specific date other than the Offering Effective Date, in which case
          as of such specific date and (B) that the Consolidated financial
          statements of each of the Borrowers and its Subsidiaries and Fox Kids
          and its Subsidiaries referred to in Sections 4.01(f), 4.01(g), 4.01(h)
          and 4.01(i) of the Credit Agreement, respectively, shall be deemed to
          refer to the Consolidated financial statements of each such Borrower
          and its Subsidiaries and Fox Kids and its Subsidiaries most recently
          delivered to the Administrative Agent and the Lenders pursuant to
          Sections 5.03(b) and 5.03(c) of the Credit Agreement and Sections
          7(i)(i) and 7(i)(ii) of the Fox Kids Guarantee, respectively, on or
          prior to the Offering Effective Date and (C) that the forecasted
          Consolidated financial statements of Fox Kids and its Subsidiaries
          referred to in Section 4.01(j) of the Credit Agreement shall be deemed
          to refer to the forecasted Consolidated financial statements of Fox
          Kids and its Subsidiaries most recently delivered to the
          Administrative Agent and the Lenders prior to the Offering Effective
          Date).

               (vi) No event shall have occurred and be continuing, or shall
          result from the effectiveness of this Amendment and Waiver or the
          Amendment No. 5 Transactions, that constitutes a Default.

               (vii) The Borrowers shall have paid to the Administrative Agent,
          for the account of each of the Lenders that has executed and delivered
          a counterpart of this Amendment and Waiver to the Administrative Agent
          on or prior to the date of this Amendment and Waiver (or advised the
          Administrative Agent in a manner satisfactory to it that such Lender
          has executed this Amendment and Waiver on or prior to the date of this
          Amendment and Waiver), an amendment fee of 0.05% on the aggregate
          Commitments of such Lender.

               (viii) All of the accrued fees and expenses of the Administrative
          Agent and the Lenders (including the accrued fees and expenses of
          counsel for the Administrative Agent) shall have been paid in full.

The effectiveness of each of Sections 1, 3 and 4 (in accordance with subsection
(a) of this Section 5) and Section 2 (in accordance with subsection (b) of this
Section 5) of this Amendment and Waiver is further conditioned upon the accuracy
of all of the factual matters described herein. This Amendment and Waiver is
subject to the provisions of Section 9.01 of the Credit Agreement.

     SECTION 6. REFERENCE TO AND EFFECT ON THE LOAN DOCUMENTS. (a) On and after
each of the Restructuring Effective Date and the Offering Effective Date, as
applicable, (i) each reference in the Credit Agreement to "THIS AGREEMENT",
"HEREUNDER", "HEREOF" or words of like import referring to the Credit Agreement,
and each reference in the Notes and each of the other Loan Documents to "THE
CREDIT AGREEMENT", "THEREUNDER", "THEREOF " or words of like import referring to
the Credit Agreement, shall mean and be a reference to the Credit Agreement, as
amended and otherwise modified by this Amendment and Waiver, as applicable; (ii)
each reference in the Fox Kids Guarantee to "THIS GUARANTEE", "HEREUNDER",
"HEREOF " or words of like import referring to the Fox Kids Guarantee, and

                                  EX-10.1 - 20
<PAGE>

each reference in each of the other Loan Documents to "THE FOX KIDS GUARANTEE",
"THEREUNDER", "THEREOF " or words of like import referring to the Fox Kids
Guarantee, shall mean and be a reference to the Fox Kids Guarantee, as amended
and otherwise modified by this Amendment and Waiver, as applicable; (iii) each
reference in the Pledge and Assignment Agreement to "THIS AGREEMENT,"
"HEREUNDER" "HEREOF", or words of like import referring to such Pledge and
Assignment Agreement and each reference in each of the other Loan Documents to
"THE PLEDGE AND ASSIGNMENT AGREEMENT," "THEREUNDER", "THEREOF" or words of like
import referring to the Pledge and Assignment Agreement, shall mean and be a
reference to the Pledge and Assignment Agreement, as amended and otherwise
modified by this Amendment and Waiver, as applicable; (iv) each reference in the
Subsidiaries Guarantee to "THIS Guarantee", "HEREUNDER", "HEREOF" or words of
like import referring to the Subsidiaries Guarantee, and each reference in the
Notes and each of the other Loan Documents to "THE SUBSIDIARIES GUARANTEE",
"THEREUNDER", "THEREOF " or words of like import referring to the Subsidiaries
Guarantee, shall mean and be a reference to the Subsidiaries Guarantee, as
amended and otherwise modified by this Amendment and Waiver, as applicable; and
(v) each reference in each Collateral Document to "THIS AGREEMENT", "HEREUNDER",
"HEREOF" or words of like import referring to such Collateral Document, and each
reference in the Notes and each of the other Loan Documents to "THE COLLATERAL
DOCUMENTS", "THEREUNDER", "THEREOF " or words of like import referring to such
Collateral Document, shall mean and be a reference to such Collateral Document,
as amended and otherwise modified by this Amendment and Waiver, as applicable.

     (b) The Credit Agreement, the Notes and each of the other Loan Documents,
as amended, supplemented and otherwise modified by the amendments, supplements,
waivers and affirmations specifically provided above in Sections 1 through 4,
are and shall continue to be in full force and effect and are hereby in all
respects ratified and confirmed. Without limiting the generality of the
foregoing, each of the Collateral Documents and all of the Collateral described
therein do and shall continue to secure the payment of all Obligations of the
Loan Parties under the Loan Documents, in each case as amended and otherwise
modified in accordance with this Amendment and Waiver.

     (c) The execution, delivery and effectiveness of this Amendment and Waiver
shall not, except as expressly provided herein, operate as a waiver of any
right, power or remedy of any of the Secured Parties or the Administrative Agent
under any of the Loan Documents, or constitute a waiver of any provision of any
of the Loan Documents.

     SECTION 7. COSTS AND EXPENSES. Each of the Borrowers hereby severally
agrees to pay, upon demand, all of the reasonably and properly documented costs
and expenses of the Administrative Agent (including, without limitation, the
reasonable fees and expenses of counsel for the Administrative Agent) in
connection with the preparation, execution, delivery, administration,
modification and amendment of this Amendment and Waiver and all of the
instruments, agreements and other documents delivered or to be delivered in
connection herewith, all in accordance with the terms of Section 9.05 of the
Credit Agreement.

     SECTION 8. EXECUTION IN COUNTERPARTS. This Amendment and Waiver may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Amendment and Waiver by telecopier shall be effective as delivery of a manually
executed counterpart of this Amendment and Waiver.

                                  EX-10.1 - 21
<PAGE>

     SECTION 9. GOVERNING LAW. This Amendment and Waiver shall be governed by,
and construed in accordance with, the laws of the State of New York, excluding
(to the fullest extent a New York court would permit) any rule of law that would
cause application of the laws of any jurisdiction other than the State of New
York.

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment and
Waiver to be executed by their respective officers, thereunto duly authorized,
as of the date first written above.

                                        THE LOAN PARTIES

                                        FCN HOLDING, INC.

                                        By  /S/ MEL WOODS
                                            --------------------------
                                             Name:  Mel Woods
                                             Title: President

                                        INTERNATIONAL FAMILY
                                        ENTERTAINMENT, INC.

                                        By  /S/ MEL WOODS
                                            --------------------------
                                             Name:  Mel Woods
                                             Title: President

                                        SABAN ENTERTAINMENT, INC.

                                        By  /S/ STAN GOLDEN
                                            --------------------------
                                              Name:  Stan Golden
                                              Title: President

                                        FOX FAMILY MANAGEMENT, LLC

                                        By   Haim Saban, as its Manager

                                              /S/ HAIM SABAN
                                              -------------------------

                                  EX-10.1 - 22
<PAGE>

                                        FOX FAMILY PROPERTIES, INC.

                                        By  /S/ MEL WOODS
                                            --------------------------
                                             Name:  Mel Woods
                                             Title: President

                                        FOX FAMILY WORLDWIDE, INC.

                                        By  /S/ MEL WOODS
                                            --------------------------
                                             Name:  Mel Woods
                                             Title: President

                                        FOX KIDS HOLDINGS, LLC

                                        By  Fox Family Worldwide, Inc.
                                             as its Managing Member

                                        By  /S/ MEL WOODS
                                            --------------------------
                                             Name:  Mel Woods
                                             Title: Authorized Signatory

                                  EX-10.1 - 23
<PAGE>

                                        THE AGENTS AND THE LENDERS

                                        CITICORP USA, INC., as Agent and as
                                          Lender

                                        By  /S/ ELIZABETH H. MINNELLA
                                            ----------------------------
                                             Name:  Elizabeth H. Minnella
                                             Title: Vice President

                                        SALOMON SMITH BARNEY INC., as Agent

                                        By  /S/ WILLIAM L. HARTMANN
                                            ------------------------------
                                             Name:  William L. Hartmann
                                             Title: Attorney-In-Fact

                                  EX-10.1 - 24
<PAGE>

                                        BANKBOSTON, N.A., as Agent and as
                                          Lender

                                        By  /S/ ROBERT F. MILORDI
                                            ------------------------------
                                             Name:
                                             Title:

                                  EX-10.1 - 25
<PAGE>

                                        THE CHASE MANHATTAN BANK, as
                                           Lender

                                        By  /S/ JOAN FITZGIBBON
                                            ------------------------------
                                             Name:  Joan M. Fitzgibbon
                                             Title: Managing Director

                                        CHASE SECURITIES, INC., as Agent

                                        By  /S/ JOHN P.HALTMAIER
                                            ------------------------------
                                              Name:  John P. Haltmaier
                                              Title: Vice President

                                  EX-10.1 - 26
<PAGE>

                                        BANK OF AMERICA, N.A., as Lender

                                        By  /S/ SEAN W. CASSIDY
                                            ------------------------------
                                             Name:  Sean W. Cassidy
                                             Title: Vice President

                                  EX-10.1 - 27
<PAGE>

                                        THE BANK OF NOVA SCOTIA, as Lender

                                        By  /S/ IAN A. HODGART
                                            ------------------------------
                                             Name:  Ian A. Hodgart
                                             Title: Authorized Signatory

                                  EX-10.1 - 28
<PAGE>

                                        FLEET BANK, N.A., as Lender

                                        By  /S/ TANYA CROSSLEY
                                            ------------------------------
                                             Name:  Tanya M. Crossley
                                             Title: Vice President

                                  EX-10.1 - 29
<PAGE>

                                        THE INDUSTRIAL BANK OF JAPAN
                                          LIMITED, LOS ANGELES AGENCY, as
                                          Lender

                                        By  /S/ CARL-ERIC BENZINGER
                                            ------------------------------
                                             Name:  Carl-Eric Benzinger
                                             Title: SVP & SDGM

                                  EX-10.1 - 30
<PAGE>

                                        TORONTO-DOMINION (TEXAS), INC., as
                                           Lender

                                        By  /S/ MARK A. BAIRD
                                            ------------------------------
                                             Name:  Mark A. Baird
                                             Title: Vice President

                                  EX-10.1 - 31
<PAGE>

                                        SOCIETE GENERALE, NEW YORK
                                           BRANCH, as Co-Agent and as Lender

                                        By  /S/ ELAINE KHALIL
                                            ------------------------------
                                             Name:  Elaine Khalil
                                             Title: Vice President

                                  EX-10.1 - 32
<PAGE>

                                        THE BANK OF NEW YORK, as Lender

                                        By  /S/ STEPHEN M. NETTLER
                                            ------------------------------
                                             Name:  Stephen M. Nettler
                                             Title: Assistant Vice President

                                  EX-10.1 - 33
<PAGE>

                                        BANQUE NATIONALE DE PARIS, as
                                          Lender

                                        By  /S/ NUALA MARLEY
                                            ------------------------------
                                             Name:  Nuala Marley
                                             Title: Vice President

                                        By  /S/ BRIAN M. FOSTER
                                            ------------------------------
                                             Name:  Brian M. Foster
                                             Title: Vice President

                                  EX-10.1 - 34
<PAGE>

                                        THE MITSUBISHI TRUST AND BANKING
                                           CORPORATION, LOS ANGELES
                                           AGENCY, as Lender

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

                                  EX-10.1 - 35
<PAGE>

                                        THE SUMITOMO BANK, LIMITED, as
                                            Lender

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

                                  EX-10.1 - 36
<PAGE>

                                        CRESTAR BANK, as Lender

                                        By  /S/ THOMAS C. KING
                                            ------------------------------
                                             Name:  Tom King
                                             Title: Assistant Vice President

                                  EX-10.1 - 37
<PAGE>

                                        THE DAI-ICHI KANGYO BANK, LIMITED,
                                           as Lender

                                        By  /S/ THOMAS CHA
                                            ------------------------------
                                             Name:  Thomas Cha
                                             Title: Account Officer

                                  EX-10.1 - 38
<PAGE>

                                        MORGAN GUARANTY TRUST COMPANY
                                          OF NEW YORK, as Lender

                                        By  /S/ WILLIAM IMGRASSIN
                                            ------------------------------
                                             Name:  William Imgrassin
                                             Title: V.P.

                                  EX-10.1 - 39
<PAGE>

                                        GENERAL ELECTRIC CAPITAL
                                          CORPORATION, as Lender

                                        By  /S/ ROBERT M. KADLICK
                                            ------------------------------
                                             Name:  Robert M. Kadlick
                                             Title: Duly Authorized Signatory

                                  EX-10.1 - 40
<PAGE>

                                        FIRST HAWAIIAN BANK, as Lender

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

                                  EX-10.1 - 41
<PAGE>

                                        ISRAEL DISCOUNT BANK LIMITED, LOS
                                          ANGELES AGENCY., as Lender

                                        By  /S/ HIEU T. NGUYEN
                                            ------------------------------
                                             Name:  Hieu T. Nguyen
                                             Title: Vice President

                                  EX-10.1 - 42
<PAGE>

                                    CONSENT

     Reference is made to (a) Amendment and Waiver No. 5 dated as of October 26,
1999 (the "AMENDMENT AND WAIVER"; capitalized terms not otherwise defined herein
being used herein as defined in the Amendment and Waiver and in the Credit
Agreement referred to therein), (b) the Second Amended and Restated Credit
Agreement dated as of October 28, 1997 (as amended by Letter Amendment No. 1
dated as of November 18, 1997, Letter Amendment No. 2 dated as of April 16,
1998, Amendment and Waiver No. 3 to the Loan Documents dated as of June 29,
1998, Amendment and Waiver No. 4 dated as of May 26, 1999, the Amendment and
Waiver, the "CREDIT AGREEMENT") among FCN Holding, Inc., International Family
Entertainment, Inc., Saban Entertainment, Inc., Fox Family Properties, Inc. and
Fox Family Management, LLC (collectively, the "BORROWERS"), Fox Kids Holdings,
LLC, a Delaware limited liability company ("HOLDINGS"), as Guarantor, the banks,
financial institutions and other institutional lenders (collectively, the
"LENDERS") party to the Credit Agreement, Citicorp USA, Inc., as administrative
agent (the "ADMINISTRATIVE AGENT") for such Lenders and the other Secured
Parties referred to therein, and Salomon Smith Barney Inc. (formerly known as
Citicorp Securities, Inc.), Chase Securities, Inc. and BankBoston, N.A., as
Co-Arrangers for the Facilities referred to therein, and (c) the other Loan
Documents referred to therein.

     Each of the undersigned, in its capacity as (a) a Guarantor under the
Second Amended and Restated Subsidiaries Guarantee dated October 28, 1997 (the
"SUBSIDIARIES GUARANTEE") in favor of the Secured Parties referred to therein
and a Pledgor under the Pledge and Assignment Agreement and/or (b) a Pledgor
under the Pledge and Assignment Agreement and/or under one or more of the
following Agreements, (i) the Amended and Restated Memorandum of Deposit of
Shares of Equity Interests dated October 28, 1997 (the "U.K./SABAN U.K. PLEDGE
AGREEMENT") between Saban and the Administrative Agent, (ii) the Amended and
Restated Memorandum of Deposit of Shares of Equity Interests dated October 28,
1997 (the "U.K./FKE PLEDGE AGREEMENT"), among FKE Holdings, Fox Kids Network
Europe Holdings, Inc. and the Administrative Agent, (iii) the Deeds of Pledge
dated September 4, 1997 and June 24, 1998 (collectively, the "NETHERLANDS PLEDGE
AGREEMENT"), among FKE Holdings, T.V. 10 and the Administrative Agent, (iv) the
Amended and Restated Pledge Agreement of Shares dated September 4, 1997 (the
"NETHERLANDS ANTILLES PLEDGE AGREEMENT"), among Saban, SINV and the
Administrative Agent, (v) the Pledge Agreement dated September 4, 1997 (the
"GERMAN PLEDGE AGREEMENT") among Saban and the Administrative Agent, (vi) the
Deed of Pledge of Shares dated September 4, 1997 (the "FRENCH/FOX KIDS PLEDGE
AGREEMENT"), among FKE Holdings, Fox Kids Network, Fox Kids France SARL and the
Administrative Agent and (vii) the Deed of Pledge of Shares dated September 4,
1997 (together with the U.K./Saban U.K. Pledge Agreement, the U.K./FKE Pledge
Agreement, the Netherlands Pledge Agreement, the Netherlands Antilles Pledge
Agreement, the German Pledge Agreement and the French/Fox Kids Pledge Agreement,
the "FOREIGN SUBSIDIARY PLEDGE AGREEMENTS"), among Saban, Saban International
Paris SARL and the Administrative Agent, hereby consents to the execution,
delivery and performance of the Amendment and Waiver and agrees that:

                                  EX-10.1 - 43
<PAGE>

          (A) each of the Subsidiaries Guarantee, the Pledge and Assignment
     Agreement, the Foreign Subsidiary Pledge Agreements and the other
     Collateral Documents to which it is a party is, and shall continue to be,
     in full force and effect and is hereby in all respects ratified and
     confirmed on each of the Restructuring Effective Date and the Offering
     Effective Date, except that, on and after each of the Restructuring
     Effective Date and the Offering Effective Date, as applicable, (1) each
     reference to "THE CREDIT AGREEMENT", "THEREUNDER", "THEREOF", "THEREIN" or
     words of like import referring to the Credit Agreement shall mean and be a
     reference to the Credit Agreement, as amended and otherwise modified by the
     Amendment and Waiver, (2) each reference to "THE FOX KIDS GUARANTEE",

                                  EX-10.1 - 44
<PAGE>

     "THEREUNDER", "THEREOF", "THEREIN" or words of like import referring to the
     Fox Kids Guarantee shall mean and be a reference to the Fox Kids Guarantee,
     as amended and otherwise modified by the Amendment and Waiver, (3) each
     reference to the "THE PLEDGE AND ASSIGNMENT AGREEMENT", "THEREUNDER",
     "THEREOF", "THEREIN" or words of like import referring to the Pledge and
     Assignment Agreement shall mean and be a reference to the Pledge and
     Assignment Agreement, as amended and otherwise modified by the Amendment
     and Waiver, (4) each reference to "THE SUBSIDIARIES GUARANTEE",
     "THEREUNDER", "THEREOF", "THEREIN" or words of like import referring to the
     Subsidiaries Guarantee shall mean and be a reference to the Subsidiaries
     Guarantee, as amended and otherwise modified by the Amendment and Waiver,
     and (5) each reference to the "THE COLLATERAL DOCUMENTS", "THEREUNDER",
     "THEREOF", "THEREIN" or words of like import referring to any Collateral
     Document shall mean and be a reference to such Collateral Document, as
     amended and otherwise modified by the Amendment and Waiver; and

          (B) as of each of the Restructuring Effective Date and the Offering
     Effective Date, as applicable, the Pledge and Assignment Agreement and the
     Foreign Subsidiary Pledge Agreements to which it is a party and all of the
     Collateral of such Person described therein do, and shall continue to,
     secure the payment of all of the Secured Obligations.

     This Consent shall be governed by, and construed in accordance with, the
laws of the State of New York, excluding (to the fullest extent a New York court
would permit) any rule of law that would cause application of the laws of any
jurisdiction other than the State of New York.

     Delivery of an executed counterpart of a signature page of this Consent by
telecopier shall be effective as the delivery of a manually executed counterpart
of this Consent.

                                         ANGEL GROVE PRODUCTIONS, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         BUGBOY PRODUCTIONS, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         CYBERPROD, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                  EX-10.1 - 45
<PAGE>

                                         FOX KIDS EUROPE HOLDINGS, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         ERIK PRODUCTIONS

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         FOX KIDS (LATIN AMERICA), INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         FOX KIDS WORLDWIDE, L.L.C.

                                         By  Fox Kids Holdings, LLC,
                                                as Managing Member

                                              By Fox Family Worldwide, Inc.,
                                                    as Managing Member

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                  EX-10.1 - 46
<PAGE>

                                         IAN PRODUCTIONS, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         INTERPROD, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         KIDS ROCK, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         LAUREL WAY PRODUCTIONS, INC.

                                         By  /S/ STAN GOLDMAN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         MMPR PRODUCTIONS, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         POCKET PRODUCTIONS, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                  EX-10.1 - 47
<PAGE>

                                         SABAN DOMESTIC SERVICES, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         SABAN FOODS, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         SABAN INTERNATIONAL SERVICES, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         SABAN MERCHANDISING, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         SABAN/SCHERICK PRODUCTIONS, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         SANDSCAPE, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                  EX-10.1 - 48
<PAGE>

                                         TEEN DREAM PRODUCTIONS, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         MELVILLE PRODUCTIONS, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         FCNH SUB, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         FOX CHILDREN'S PRODUCTIONS, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         FOX CHILDREN'S NETWORK, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         STORYMAKERS, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                  EX-10.1 - 49
<PAGE>

                                         FOX KID'S MUSIC, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         FOX CHILDREN'S MUSIC, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         FAMILY CHANNEL PICTURES, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         FAMILY DEVELOPMENT CORP.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         FAMILY GAME SHOWS, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         GAME TV, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                  EX-10.1 - 50
<PAGE>

                                         GILMORE ACQUISITION CORP.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         HOME PRODUCTIONS, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         IFE CHINA, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         IFE DIRECT MARKETING, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         IFE JAKE ACQUISITION CORP.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         IFE LATIN AMERICA, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                  EX-10.1 - 51
<PAGE>

                                         LYNNHAVEN ACQUISITION CORP.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         MOBILINK PARTNERS, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         MTM ACQUISITION COMPANY, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         MTM ENTERPRISES, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         MTM ENTERTAINMENT, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         MTM HOLDING COMPANY, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                  EX-10.1 - 52
<PAGE>

                                         PRETENDER PRODUCTIONS, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         UNITED STATES FAMILY
                                            ENTERTAINMENT, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         RED CHECK, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         PLAZA PICTURES, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         PAPER GARDENS, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         WEBSTER PARK, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                  EX-10.1 - 53
<PAGE>

                                         APRIL PARK, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         FAMILY SATELLITE BROADCASTING
                                           SERVICES, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         F.F.P. WEST, L.L.C.

                                         By  Mel Woods, as its Manager
                                             /S/ MEL WOODS
                                            ------------------------------

                                         FIRST PAPER, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         FOX FAMILY MUSIC, L.L.C.

                                         By  Mel Woods, as its Manager
                                             /S/ MEL WOODS
                                            ------------------------------

                                         FOX FAMILY MUSIC, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                  EX-10.1 - 54
<PAGE>

                                         FOX FAMILY POST PRODUCTION, INC.

                                         By  /S/ STAN GOLDEN
                                           -------------------------------
                                             Name: Stan Golden
                                             Title: President

                                         FOX FAMILY POST PRODUCTION, L.L.C.

                                         By  Mel Woods, as its Manager
                                             /S/ MEL WOODS
                                            -------------------------------

                                         FOX FAMILY RECORDING ARTISTS, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         HOPSCOTCH PRODUCTIONS, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         MONUMENT PRODUCTIONS, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         KID GUMBO PRODUCTIONS, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                  EX-10.1 - 55
<PAGE>

                                         FOX KIDS TOURING, L.L.C.

                                         ByMel Woods, as its Manager
                                            /S/ MEL WOODS
                                           -------------------------------

                                         FOXKIDS.COM, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         FOX LATIN PRODUCTIONS, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         CABLE HEALTH TV, INC.

                                         By  /S/ MEL WOODS
                                           -------------------------------
                                             Name: Mel Woods
                                             Title: President

                                         FOX KIDS EUROPE LIMITED

                                         By  /S/ YNON KREIZ
                                           -------------------------------
                                            Name: Ynon Kreiz
                                            Title: Authorized Signatory

                                         FOX KIDS SPC1, INC.

                                         By  /S/ JACQUELINE GOLD GRENFELD
                                           -------------------------------
                                            Name: Jacqueline Gold Grenfeld
                                            Title: Secretary

                                  EX-10.1 - 56
<PAGE>

                                         FOX KIDS SPC2, INC.

                                         By  /S/ JACQUELINE GOLD GRENFELD
                                           -------------------------------
                                            Name: Jacqueline Gold Grenfeld
                                            Title: Secretary

                                  EX-10.1 - 56

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