Document:

OVERSEAS FILMGROUP, INC.
                              AMENDED AND RESTATED
                  1996 SPECIAL STOCK OPTION PLAN AND AGREEMENT

     This OVERSEAS FILMGROUP, INC. AMENDED AND RESTATED 1996 SPECIAL STOCK
OPTION PLAN AND AGREEMENT (the "Amended and Restated Plan Agreement") is made
and entered into this 20th day of June, 2000, by and among ROBERT B. LITTLE
("Robert"), ELLEN DINERMAN LITTLE ("Ellen") and OVERSEAS FILMGROUP, INC., a
Delaware corporation (the "Company"). Robert B. Little and Ellen Dinerman Little
are each sometimes individually referred to herein as an "Optionee" and they
sometimes are collectively referred to herein as the "Optionees."

                                    RECITALS

     WHEREAS, the Optionees each were granted options to purchase an aggregate
of 1,100,000 shares of the Company's common stock, $.001 par value per share
("Common Stock") under the Overseas Filmgroup, Inc. 1996 Special Stock Option
Plan and Agreement dated October 31, 1996 among Robert, Ellen and the Company
(the "Existing Plan Agreement");

     WHEREAS, pursuant to a Securities Purchase Agreement dated May 3, 2000 (the
"Purchase Agreement") between the Company and Rosemary Street Productions, LLC
("Rosemary"), Rosemary is purchasing certain securities of the Company;

     WHEREAS, the Company has entered into an Amended and Restated Employment
Agreement with Robert dated the date hereof ("Employment Agreement") and has
entered into a First Look Agreement with Ellen dated the date hereof ("First
Look Agreement");

     WHEREAS, in order to induce Rosemary to enter into the Purchase Agreement,
the parties hereto have agreed to amend and restate the Existing Plan Agreement
in its entirety to set forth the terms of the options to be granted to the
Optionees following the transactions contemplated by the Purchase Agreement; and

     WHEREAS, as a term and condition of the Employment Agreement and First Look
Agreement and as consideration for the execution thereof, the parties hereto
shall have entered into this Amended and Restated Plan Agreement.

                                    AGREEMENT

     NOW, THEREFORE, the parties hereto hereby agree as follows:

     1. Existing Plan Agreement. The Existing Plan Agreement is hereby amended
and restated in its entirety as set forth herein and, upon execution hereof, the
terms of this Agreement shall supercede the terms of the Existing Plan
Agreement.

<PAGE>

     2. Representations and Warranties of the Company. The Company represents
and warrants that:

          (a) This Amended and Restated Plan Agreement has been approved
pursuant to the procedures required for compliance with the provisions of Rule
16b-3 of the General Rules and Regulations ("Rule 16b-3") under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and Section 162(m)(4)(C)
of the Internal Revenue Code of 1986, as amended (the "Code");

          (b) The grant of options under this Amended and Restated Plan
Agreement and the terms and conditions of this Amended and Restated Plan
Agreement have been approved by a committee (the "Committee") comprised solely
of two or more Directors of the Company who are (i) "outside directors" within
the meaning of Section 162(m)(4)(C) of the Code and (ii) "disinterested persons"
within the meaning of Rule 16b-3(c)(2)(i) under the Exchange Act; and

          (c) This Amended and Restated Plan Agreement complies in all respects
with Rule 16b-3 in connection with the options to be granted hereunder.

     3. Registration; Reservation of Shares. The Company represents, warrants,
covenants and agrees that within fourteen calendar days of the date hereof, the
Company shall have registered under the Securities Act of 1933, as amended (the
"Act"), this Amended and Restated Plan Agreement and the shares of Common Stock,
issuable upon exercise of the options to be granted hereunder on such form and
in such manner so that upon exercise of the options hereunder the shares of
Common Stock issuable as a result thereof may be transferred thereafter by the
Optionees without any restriction whatsoever under any federal or state
securities law. Until all options granted hereunder have been exercised or have
expired, the Company shall use its best efforts to maintain such registration,
keep the applicable registration statement effective and otherwise permit the
transferability by Optionees of the Common Stock issuable upon exercise of the
options granted hereunder without restriction under any federal or state
securities laws. The Company shall cause all shares of Common Stock issuable
upon exercise of the options granted hereunder to be listed on each securities
exchange or quotation system on which similar securities issued by the Company
are then listed. All of the foregoing actions of the Company have been and shall
be at the Company's expense. The Company will at all times reserve and keep
available, free from preemptive rights, out of the aggregate of its authorized
but unissued Common Stock, for the purpose of enabling it to satisfy any
obligation to issue shares of Common Stock upon exercise of the Options, the
maximum number of shares of Common Stock which may then be deliverable upon the
exercise of all outstanding Options.

     4. Grants to Optionees. The Company hereby grants, on the date hereof (the
"Grant Date"), to each Optionee, subject to the terms and conditions set forth
herein, options to purchase from the Company an aggregate of 250,000 shares of
the Company's Common Stock per Optionee. The Options are not intended to qualify
as and will not be treated as "incentive stock options" within the meaning of
Section 422 of the Code. The maximum number of shares of Common Stock for which
each Optionee may be granted options under this Amended and Restated Plan
Agreement shall be limited to 250,000 (such number being subject to adjustment
in accordance with the terms and provisions hereof including, without
limitation, Section 13 hereof).

<PAGE>

     5. Price and Exercise of the Options.

          (a) Exercise Price. The exercise price ("Exercise Price") of the
Options is $3.40 per share of Common Stock, subject to adjustment as provided in
this Amended and Restated Plan Agreement. The Exercise Price shall be paid in
full at the time of exercise (except to the extent the sale and remittance
procedure described in subparagraph (iv) below is utilized) by one of the
following methods selected in each case by the Optionee:

          (i) in cash or by certified or cashier's check payable to the order of
     the Company,

          (ii) by cancellation of indebtedness owed by the Company to the
     Optionee exercising the Option.

          (iii) by delivery of shares of the Common Stock of the Company already
     beneficially owned by the Optionee(s) and having an aggregate Current
     Market Price determined in accordance with Section 9 hereof equal to the
     total Exercise Price of the Options being exercised (provided such shares
     have been beneficially owned by the Optionee(s) for at least six (6)
     months),

          (iv) through a special sale and remittance procedure, which the
     Company shall promptly establish, pursuant to which upon irrevocable
     written instructions of Optionee to the Company (a) a Company-designated
     brokerage firm shall effect the immediate sale of the shares underlying the
     Options being exercised and remit to the Company, out of the sale proceeds
     available on the settlement date, sufficient funds to cover the aggregate
     Exercise Price payable for the exercise of the Options covering such shares
     plus all applicable taxes required to be withheld by the Company by reason
     of such exercise, (b) the remainder of the sale proceeds shall be promptly
     remitted to Optionee and (c)the Company shall deliver the certificates for
     such shares underlying the Options being exercised directly to such
     brokerage firm in order to complete the sale,

          (v) by any combination thereof, or

          (vi) in such other manner as the Committee may specify in order to
     facilitate the exercise of Options by the Optionees.

          (b) Exercise Notice. In order to exercise an Option, the Optionee or
any other person or persons entitled to exercise the Option shall give written
notice to the Secretary of the Company or to such other person as may be
designated by the Company, in the form set forth on Exhibit "A," specifying the
number of shares to be purchased. If the Option is being exercised by any
person(s) other than the Optionee, such notice shall be accompanied by proof,
satisfactory to counsel for the Company, of the right of such person(s) to
exercise the Option. This notice shall be accompanied by payment of the Exercise
Price for the shares as provided in Section 4(a). The Optionee shall also
deliver such additional documents as the Company may then reasonably require
pursuant to this Amended and Restated Plan Agreement.

<PAGE>

          (c) Withholding Tax. Upon the exercise of an Option, the Company shall
have the right to require the Optionee, and Optionee hereby agrees, to pay the
Company the amount of any taxes which the Company may be required to withhold
with respect thereto. The Committee may, in its discretion, grant an Optionee,
at any time while any of such Optionee's Options remain outstanding, the right
to pay the amount of any taxes which the Company may be required to withhold in
connection with the subsequent exercise of such Options by delivering shares of
Common Stock with a Current Market Price (determined in accordance with Section
9 hereof) equal to such withholding tax obligation. If such right is granted to
an Optionee, then the shares which may be delivered in satisfaction of such
withholding tax obligation may, at such Optionee's discretion, be either shares
withheld by the Company upon the exercise of the Option or other shares of
Common Stock.

     6. Exercisability.

          (a) Subject to paragraph (b) of this Section 6 and Section 8 of this
Amended and Restated Plan Agreement, the Options granted to each Optionee will
be immediately exercisable.

          (b) Limitations on Exercisability of Robert's Options.

          (i) Notwithstanding the foregoing, if, during the term of Robert's
     employment under his Employment Agreement, Robert's employment with the
     Company (A) is validly terminated by the Company for "Cause" (as defined in
     Robert's Employment Agreement) or (B) is voluntarily terminated by Robert
     other than for "Good Reason" (as defined in Robert's Employment Agreement),
     then all of such Optionee's Options shall expire and become void.

          (ii) Notwithstanding anything to the contrary contained in this
     Amended and Restated Plan Agreement (including anything in Section 14), if
     Robert's employment with the Company is terminated (A) by the Company other
     than for "Cause" (as such term is defined in Robert's Employment
     Agreement), or (B) by Robert for "Good Reason" (as such term is defined in
     such Robert's Employment Agreement), then all of Robert's Options shall
     remain exercisable until the Expiration Date.

          (iii) Notwithstanding anything to the contrary contained herein, if
     Robert's employment with the Company is terminated as a result of Robert's
     Death or Disability (as such terms are defined in Robert's Employment
     Agreement), then Robert's Options shall remain exercisable until the
     Expiration Date.

     7. Expiration Date. The Options shall terminate and expire at 5:00 p.m.,
California time, on June 19, 2005. In no event may the Options be exercised
after the date on which they terminate.

<PAGE>

     8. Redemption. The Company may, upon the affirmative vote of the majority
of the Committee, call the Options for redemption, in whole or in part, at a
price of $0.01 per Option (each, a "Redemption Call"), (i) on the date, if any,
on which the Company calls for redemption (the "Warrant Call") all of the
Company's Redeemable Common Stock Purchase Warrants issued pursuant to that
certain Warrant Agreement dated as of February 16, 1995, by and between the
Company and Continental Stock Transfer & Trust Company or (ii) at any time after
the Warrant Call, upon notice in the case of (i) and (ii) (in the manner set
forth below) to each Optionee of not less than 30 days prior to the date of
redemption (the "Redemption Date"), and, in the case of a Redemption Call
pursuant to clause (ii) of this sentence, such Redemption Call may only be made
if the Current Market Price (determined in accordance with Section 10 hereof) of
the Common Stock has been at least $8.50, subject to adjustment in accordance
with Section 13 hereof, on each of the twenty (20) consecutive trading days
ending on the third business day prior to the date on which notice of such
Redemption Call is given. The Company shall cause to be mailed, certified mail,
postage prepaid, return receipt requested, to each Optionee at the notice
address set forth in Section 15 hereof, a written notice, notifying such
Optionee that the Company has called all or a portion of the Options for
redemption and stating (i) the Redemption Date, (ii) the number of Options
called for redemption (identifying any Options called for redemption which are
not yet vested), (iii) that all Options subject to such Redemption Call which
have not been previously exercised may be exercised prior to and including the
Redemption Date, regardless of whether such Options would otherwise be vested as
of such Redemption Date and (iv) that all Options which are the subject of such
Redemption Call which are not exercised on or before the Redemption Date shall
thereafter cease to be exercisable. Notwithstanding anything to the contrary in
the foregoing, in the event that exercise of an Optionee's Options and/or sale
of the shares received upon exercise during the period after a Redemption Call
and prior to the applicable Redemption Date (i) would result in liability under
Sections 10(b) or 16(b) of the Exchange Act or (ii) would be prohibited or
restricted in any manner by any applicable law or regulation, the redemption of
such Optionee's Options shall be delayed until the tenth day after the later of
(i) last date upon which such exercise and sale would result in such liability
or (ii) the last date when any applicable law or regulation would prohibit or
restrict in any manner such exercise or sale.

     9. Transferability. The Options granted under this Amended and Restated
Plan Agreement shall be non-transferable by the holder either voluntarily or by
operation of law, other than by will or the laws of descent and distribution,
and shall be exercisable during the holder's lifetime only by the holder,
regardless of any community property interest therein of the spouse of the
holder, or such spouse's successors in interest. If the spouse of the holder
shall have acquired a community property interest in an Option pursuant to a
domestic relations order as defined under the Code or Title 1 of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), the holder, or the
holder's permitted successors in interest, may exercise the Option on behalf of
the spouse of the holder or such spouse's successors in interest.

     10. Current Market Price of Common Stock. For purposes of this Amended and
Restated Plan Agreement, Current Market Price means the closing price of a share
of Common Stock on the trading day immediately preceding the date of such
determination on the principal national securities exchange or in the Nasdaq
National Market System to which the shares of Common Stock are listed or
admitted to trading, or if not listed or admitted to trading thereon, the
average of the closing bid and asked prices of the Common Stock in the

<PAGE>

over-the-counter market as reported by Nasdaq or any comparable system, or if
the Common Stock is not listed on Nasdaq or a comparable system, the average of
the closing bid and asked prices on such day in the domestic over-the-counter
market as reported on the NASD Electronic Bulletin Board, or, if not reported on
such bulletin board, in the "pink sheets" published by the National Quotation
Bureau, Incorporated. If at any time the Common Stock is not listed on any
national securities exchange or quoted in the Nasdaq System or the
over-the-counter market or reported on the NASD Electronic Bulletin Board or in
the "pink sheets" published by the National Quotation Bureau, Incorporated, the
Current Market Price on such day shall be the fair market value thereof
reasonably determined in good faith by the Committee and agreed to by the
Optionees (which agreement shall not be unreasonably withheld) based upon such
information and advice as they mutually consider appropriate (such agreement
between the Committee and the Optionees being referred to herein as "Mutual
Agreement"). If the Committee and the Optionee are unable to so agree within
twenty-one (21) days of the date of determination, the Current Market Price on
such day will be the fair market value thereof determined by an independent,
nationally recognized investment banking firm selected by mutual agreement of
the Committee and the Optionees (an "Agreed Upon Firm").

     11. No Right to Continued Employment or Engagement by the Company. This
Amended and Restated Plan Agreement is not an employment contract and nothing in
this Amended and Restated Plan Agreement shall be deemed to create in any way
whatsoever any obligation on Optionee's part to continue in the employ of the
Company, or an affiliate of the Company or on the Company's part to continue
Optionee's employment with the Company or an affiliate of the Company.

     12. Privileges of Stock Ownership. No person entitled to exercise any
Option granted under this Amended and Restated Plan Agreement shall have any of
the rights or privileges of a stockholder of the Company in respect of any
shares of Common Stock issuable upon exercise of such Option until certificates
representing such shares shall have been issued and delivered.

     13. Adjustment of Exercise Prices and Number of Options. The Exercise
Prices shall be subject to adjustment from time to time as hereinafter provided.

          (a) Subdivision or Combination of Stock. In case the Company shall at
any time subdivide the outstanding shares of Common Stock into a greater number
of shares, whether through a stock split, stock dividend or otherwise, the
number of shares of Common Stock issuable upon exercise of the Options shall be
proportionately increased and the Exercise Price in effect immediately prior to
such subdivision shall be proportionately reduced, and conversely, in case the
outstanding shares of Common Stock shall be combined into a smaller number of
shares, the number of shares of Common Stock issuable upon exercise of the
Options shall be proportionately reduced and the Exercise Price in effect
immediately prior to such combination shall be proportionately increased. Upon
each adjustment of the Exercise Price pursuant to this paragraph (a), each
Optionee shall thereafter be entitled to purchase, at the Exercise Price
resulting from such adjustment, the number of shares of Common Stock obtained by
multiplying the Exercise Price in effect immediately prior to such adjustment by
the number of shares of Common Stock issuable upon exercise of such Option
immediately prior to such adjustment and dividing the product thereof by the
Exercise Price resulting from such adjustment.

<PAGE>

          (b) Adjustments for Consolidation, Merger, Sale of Assets,
Reorganization, Etc. In case the Company (i) consolidates with or merges into
any other entity and is not the continuing or surviving corporation of such
consolidation or merger, (ii) permits any other entity to consolidate with or
merge into the Company and the Company is the continuing or surviving
corporation but in connection with such consolidation or merger, the Common
Stock is changed into or exchanged for stock or other securities of any other
corporation or cash or any other assets, (iii) transfers all or substantially
all of its properties and assets to any other entity or (iv) effects a capital
reorganization or reclassification of the capital stock of the Company in such a
way that holders of Common Stock shall be entitled to receive stock, securities,
cash or assets with respect to or in exchange for Common Stock (each of the
foregoing events in clauses (i) through (iv) being a"Fundamental Change"), then
in each such case proper provision shall be made so that, upon the basis and
upon the terms and in the manner provided in this subsection (b), the Optionees,
upon the exercise of the Options at any time after the consummation of such
Fundamental Change, shall be entitled to receive (at the aggregate Exercise
Price in effect for all shares of Common Stock issuable upon such exercise
immediately prior to such consummation as adjusted to the time of such
transaction), in lieu of shares of Common Stock issuable upon such exercise
prior to such consummation, the stock and other securities, cash and assets to
which such Optionees would have been entitled upon such consummation if such
Optionees had exercised such Options immediately prior thereto (subject to
adjustments subsequent to such corporate action as nearly equivalent as possible
to the adjustments provided for in this Section 13). In the case of any
Fundamental Change, the Company shall require the successor or acquiring
corporation to assume the obligation to perform each and every covenant and
condition of this Amended and Restated Plan Agreement to be performed and
observed by the Company and all liabilities and obligations of the Company
hereunder.

          (c) Other Equitable Adjustments. If any event occurs as to which the
other provisions of this Section 13 are not strictly applicable (or if strictly
applicable would not fairly protect the rights of the Optionees in accordance
with the basic intent and principles of such provisions) but, in the reasonable
opinion of the Committee, an adjustment should be made to fairly protect the
rights of Optionees in accordance with the basic intent and principles of such
provisions, then the Company shall appoint a firm of independent certified
public accountants (which may be the regular auditors of the Company) of
recognized national standing, which shall give its opinion upon the adjustment,
if any, to be made to protect the Optionees against dilution on a basis
consistent with the basic intent and principles established in the other
provisions of this Section 13. Upon receipt of such opinion, the Company shall
forthwith make the adjustments, if any, described therein, provided such
equitable adjustments under this Section 13(c) would not result in a charge to
the Company's earnings pursuant to applicable financial accounting principles.

          (d) Notice of Adjustment. Upon any adjustment of the Exercise Price or
of the number of shares issuable upon the exercise of the Options, then and in
each such case the Company shall promptly deliver a notice to each Optionee of
the adjustment and a copy of a certificate of either the Committee or a firm of
independent public accountants selected by the Committee (who may be the regular
accountants employed by the Company), which certificate shall state the Exercise
Prices resulting from such adjustment and the increase or decrease, if any, in

<PAGE>

the number of shares issuable at such prices upon the exercise of each Option,
setting forth in reasonable detail the method of calculation and the facts upon
which such calculation is based.

          (e) Other Notices. In case at any time:

          (i) the Company shall declare any cash dividend on its Common Stock;

          (ii) the Company shall pay any dividend payable in stock upon its
     Common Stock or make any distribution (other than regular cash dividends)
     to the holders of its Common Stock;

          (iii) the Company shall offer for subscription pro rata to the holders
     of its Common Stock any additional shares of stock of any class or other
     rights;

          (iv) the Company shall authorize the distribution to all holders of
     its Common Stock of evidences of its indebtedness or assets (other than
     cash dividends or cash distributions payable out of earnings or earned
     surplus or dividends payable in Common Stock);

          (v) there shall be any capital reorganization, or reclassification of
     the capital stock of the Company, or consolidation or merger of the Company
     with another corporation (other than a subsidiary of the Company in which
     the Company is the surviving or continuing corporation and no change occurs
     in the Company's Common Stock), or sale of all or substantially all of its
     assets to, another entity;

          (vi) there shall be a voluntary or involuntary dissolution,
     liquidation, bankruptcy, assignment for the benefit of creditors, or
     winding up of the Company; or

          (vii) the Company proposes to take any other action or an event occurs
     which would require an adjustment of the Exercise Price pursuant to this
     Section 13; then, in any one or more of such cases, the Company shall give
     written notice to each Optionee who is not then an executive officer or
     director of the Company, addressed to each such Optionee at the address of
     the Optionee shown on the books of the Company, of (1) the date on which
     the books of the Company shall close or a record shall be taken for such
     dividend, distribution or subscription rights, or (2) the date (or, if not
     then known, a reasonable approximation thereof by the Company) on which
     such reorganization, reclassification, consolidation, merger, sale,
     dissolution, liquidation, bankruptcy, assignment for the benefit of
     creditors, winding up or other action, as the case may be, shall take
     place. Such notice shall also specify (or, if not then known, reasonably
     approximate) the date as of which the holders of Common Stock or record
     shall participate in such dividend, distribution or subscription rights or
     shall be entitled to exchange their Common Stock for securities or other
     property deliverable upon such reorganization, reclassification,
     consolidation, merger, sale, dissolution, liquidation, bankruptcy,
     assignment for the benefit of creditors, winding up or other action, as the
     case may be. Such written notice shall be given at least ten days prior to
     the action in question and not less than ten days prior to the record date
     or the date on which the Company's transfer books are closed in respect
     thereto.

<PAGE>

          (f) Adjustments Below Par Value. Before taking any action which would
cause an adjustment pursuant to this Section 13 to reduce the Exercise Price
below the then par value (if any) of the shares of Common Stock issuable upon
the exercise of Options, the Company will take any corporate action which may,
in the opinion of its counsel (which may by counsel employed by the Company), be
necessary in order that the Company may validly and legally issue fully paid and
nonassessable shares of Common Stock at the Exercise Price as so adjusted.

          (g) Shares of Common Stock. For the purpose of this Section 13, the
terms "shares of Common Stock" shall mean (i) the class of stock designated as
the Common Stock of the Company at the date of this Agreement, or (ii) any other
class of stock resulting from successive changes or reclassifications of such
shares consisting solely of changes in par value, or from par value to no par
value, or from no par value to par value. In the event that at any time, as a
result of an adjustment made pursuant to this Section 13, the Optionees shall
become entitled to purchase any securities of the Company other than shares of
Common Stock, thereafter the number of such other shares so issuable upon
exercise of each Option and the Exercise Prices with respect to such shares
shall be subject to adjustment from time to time in a manner on the terms as
nearly equivalent as practicable to the provisions with respect to the Options
contained in this Section 13, and the provisions of this Section 13 shall apply
on like terms to any such other securities.

     14. Amendment of Amended and Restated Plan Agreement.

          (a) This Amended and Restated Plan Agreement may not be revised or
amended without the written consent of the Company and each Optionee who holds
an outstanding Option subject to such proposed revision or amendment, provided
further, that any such amendment or revision shall also be subject to any
applicable stockholder approval requirements. Notwithstanding the foregoing,
this Amended and Restated Plan Agreement may not be amended more than once every
six months, other than to comport with changes in the Code, ERISA or the rules
thereunder.

          (b) Except as provided in Section 12 hereof, no modification may be
made to the Options except in compliance with Rule 16b-3.

     15. Section 16 of the Exchange Act.

          (a) It is the intent of the Company that this Amended and Restated
Plan Agreement comply in all respects with Rule 16b-3 in connection with the
Options granted hereunder. Accordingly, if any provision of this Amended and
Restated Plan Agreement does not comply with Rule16b-3 as then applicable to
Optionees, then, with the written consent of Optionees, such provision shall be
construed or deemed amended to the extent necessary to conform to such
requirements with respect to the Optionees.

          (b) Unless an Optionee could otherwise transfer an Option or the
shares of Common Stock issued upon exercise of an Option granted under this
Amended and Restated Plan Agreement without incurring liability under Section

<PAGE>

16(b) of the Exchange Act, at least six months shall elapse from the Grant Date
to the date of disposition of any Common Stock issuable upon exercise of any
Option hereunder.

     16. Notices. Any notice that the Company is required or may desire to give
to Optionees hereunder shall be in writing and may be served by delivering it to
Optionees, or by sending it to Optionees by certified mail, return receipt
requested (effective five days after mailing) or overnight delivery of the same
by delivery service capable of providing verified receipt (effective the next
business day) or facsimile (effective twenty-four hours after receipt is
confirmed by person or machine), at the addresses set forth below, or such
substitute addresses as Optionees may from time to time designate by notice to
the Company. Any notice that the Optionees are required or may desire to serve
upon the Company hereunder shall be in writing and may be served by delivering
it personally or by sending it certified mail, return receipt requested or
overnight delivery, or facsimile (with receipt confirmed by person or machine)
to the address set forth below, or such substitute address as the Company may
from time to time designate by notice to Optionees. Such notices by Optionees
shall be effective at the same times as specified in this Section 16 for notices
by the Company.

          Robert B. Little:                       Robert B. Little
                                                  12309 Viewcrest Road
                                                  Studio City, CA 91604

          Ellen Dinerman Little:                  Ellen Dinerman Little
                                                  12309 Viewcrest Road
                                                  Studio City, CA 91604

          The Company:                            OVERSEAS FILMGROUP, INC.
                                                  8800 Sunset Boulevard
                                                  Los Angeles, California 9069
                                                  Attention: Corporate Secretary
                                                  (fax) (310) 855-0719

     17. Governing Law; Assigns. This Amended and Restated Plan Agreement and
the Options issued hereunder shall be deemed to be a contract made under the
laws of Delaware and for all purposes shall be governed by and construed in
accordance with the internal laws of such state, regardless of the law of choice
of law of that or any other jurisdiction. This Amended and Restated Plan
Agreement shall be binding upon and inure to the benefit of and been forceable
by the respective heirs, legal representatives, successors and permitted assigns
of the parties hereto.

<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Amended and Restated Plan
Agreement to be executed as of the date first set forth above.

                                       OVERSEAS FILMGROUP, INC., a Delaware
                                       corporation

                                          /s/ William Lischak
                                       By:____________________________________
                                          Name:   William Lischak
                                          Title:  Chief Operating Officer, Chief
                                                  Financial Officer & Secretary

                                        /s/ Robert B. Little
                                       _______________________________________
                                       ROBERT B. LITTLE

                                        /s/ Ellen Dinerman Little
                                       _______________________________________
                                       ELLEN DINERMAN LITTLE

<PAGE>

                                                                     EXHIBIT A

                                 EXERCISE NOTICE

OVERSEAS FILMGROUP, INC.
8800 Sunset Boulevard
Los Angeles, California 90069
Attention: Corporate Secretary

                  Re:      Exercise of Stock Option

Ladies and Gentlemen:

     Pursuant to Section 5 of that certain OVERSEAS FILMGROUP, INC. AMENDED AND
RESTATED 1996 SPECIAL STOCK OPTION PLAN AND AGREEMENT (the "Amended and Restated
Plan Agreement") between the undersigned and OVERSEAS FILMGROUP, INC., a
Delaware corporation (the "Company"), the undersigned hereby elects to exercise
options granted thereby to purchase ___________ shares of Common Stock of the
Company at a price of $_______ per share. Accompanying this Notice is the
payment in full for such shares in the following manner permitted by Section 5
of the Amended and Restated Plan Agreement:

(check one and fill in blanks)

[  ] (i) $___________ in cash or by certified check or cashier's check payable
     to the order of the Company;

[  ] (ii) $___________ by cancellation of indebtedness (including principal
     and accrued interest) in the amount of $___________ owed by the Company to
     the undersigned;

[  ] (iii) $___________ by delivery of _________ shares of Common Stock of the
     Company, which have an aggregate Current Market Price determined in
     accordance with Section 10 of the Amended and Restated Plan Agreement of
     $____________which shares are beneficially owned by the undersigned and, if
     applicable, by ____________ and have been so beneficially owned for a least
     six (6) months prior to the date hereof;

[  ] (iv) $___________ through the special sale and remittance procedure
     pursuant to which, attached hereto are the following: (i) irrevocable
     written instructions to the Company- designated brokerage firm in the form
     supplied to the undersigned pursuant to the Amended and Restated Plan
     Agreement and (ii) irrevocable written instructions to the Company to
     deliver the shares underlying the Options being exercised herewith to
     deliver such shares to the Company-designated brokerage firm in the form
     supplied to the undersigned pursuant to the Amended and Restated Plan
     Agreement;

[  ] (v) $___________ through a combination of the payment methods set forth
     above. (Check each payment method being used and indicate the amount of the
     aggregate exercise price being paid pursuant to each method.)

<PAGE>

[  ] (vi) $___________ in the manner described in the addendum to this
     Exercise Notice, which manner has been approved by the Committee described
     in Section 2(b) of the Amended and Restated Plan Agreement.

Dated: ____________________________             _______________________________
                                                Signature

                                                _______________________________
                                                Print Name

                                                _______________________________
                                                Please print here the exact name
                                                desired to be on the stock
                                                certificate and the records of
                                                the Company.OVERSEAS FILMGROUP, INC.
                         NOTICE OF GRANT OF STOCK OPTION

     Notice is hereby given of the following option grant (the "Option") to
purchase shares of the Common Stock of Overseas Filmgroup, Inc., (the
"Company"):

Optionee                          William F. Lischak

Grant Date                        June 20, 2000

Vesting Commencement Date         The Options shall vest and become exercisable
                                  in thirty-six (36) monthly installments as
                                  follows: the first installment shall be in the
                                  amount of 2,095 Options and shall vest on May
                                  1, 2000; thereafter, the Options shall vest on
                                  the last day of each of the next thirty-five
                                  (35) consecutive months in thirty-five (35)
                                  monthly installments, each in the amount of
                                  2,083 Options.

Exercise Price                    $3.40 per share

Number of Option Shares           75,000

Expiration Date                   June 19, 2005

Type of Option                    Incentive Stock Option

Date Exercisable                  See Vesting Commencement Date

Vesting Schedule                  Optionee shall acquire a vested interest in,
                                  and the Company's repurchase right shall
                                  accordingly lapse with respect to one-hundred
                                  percent (100%) of the Option Shares upon the
                                  Vesting Commencement Date.

Partial Exercise                  To the extent the Option is exercised for less
                                  than the total number of Option Shares at the
                                  time subject to such Option, the Option must
                                  be exercised for at least ten (10) Option
                                  Shares.

     Optionee understands and agrees that the Option is granted subject to and
in accordance with the terms of the Overseas Filmgroup, Inc. 1996 Basic Stock
Option and Stock Appreciation Rights Plan (the "Plan"). Optionee further agrees
to be bound by the terms of the Plan and the terms of the Option as set forth in
the Stock Option Agreement attached hereto as Exhibit A.

     Optionee understands that to the extent any Option Shares are not vested at
the time the Option is exercised, those Option Shares shall be subject to the

<PAGE>

terms set forth in the Stock Purchase Agreement attached hereto as Exhibit B. A
copy of the Plan is available upon request made to the Corporate Secretary at
the Corporation's principal offices.

     REPURCHASE RIGHTS. OPTIONEE HEREBY AGREES THAT ALL UNVESTED OPTION SHARES
ACQUIRED UPON THE EXERCISE OF THE OPTION SHALL BE SUBJECT TO CERTAIN REPURCHASE
RIGHTS EXERCISABLE BY THE COMPANY AND ITS ASSIGNS. THE TERMS OF SUCH RIGHTS ARE
SPECIFIED IN THE ATTACHED STOCK PURCHASE AGREEMENT.

     No Employment or Service Contract. Nothing in this Notice or in the
attached Stock Option Agreement or in the Plan shall confer upon Optionee any
right to continue in Service for any period of specific duration or interfere
with or otherwise restrict in any way the rights of the Company (or any Parent
or Subsidiary employing or retaining Optionee) or of Optionee, which rights are
hereby expressly reserved by each, to terminate Optionee's Service at any time
for any reason, with or without cause, subject to any provision to the contrary
in any written employment agreement which may be in effect at the time between
Optionee and the Company (or any such Parent or Subsidiary).

     Definitions. All capitalized terms in this Notice shall have the meaning
assigned to them in this Notice or in the attached Stock Option Agreement.

DATED: June 20, 2000

                                           OVERSEAS FILMGROUP, INC.

                                                /s/ Robert Little
                                           By: __________________________
                                               Name:  Robert Little
                                               Title: Co-Chairman & Co-Chief
                                                      Executive Officer

                                           /s/ William F. Lischak
                                           _______________________________
                                           WILLIAM F. LISCHAK, OPTIONEE

                                           Address:   517 9th Street
                                                      Santa Monica, CA 90402

Attachments:
Exhibit A - Stock Option Agreement
Exhibit B - Stock Purchase Agreement
Exhibit C - Plan Summary & Prospectus

<PAGE>

                                                                      EXHIBIT A

                            OVERSEAS FILMGROUP, INC.
                             STOCK OPTION AGREEMENT

                                    RECITALS

     A. The Board has adopted the Plan for the purpose of retaining the services
of selected Employees, non-employee members of the Board or the board of
directors of any Parent or Subsidiary and consultants and other independent
advisors in the service of the Corporation (or any Parent or Subsidiary).

     B. Optionee is to render valuable services to the Corporation (or a Parent
or Subsidiary), and this Agreement is executed pursuant to, and is intended to
carry out the purposes of, the Plan in connection with the Corporation's grant
of an option to Optionee.

     C. All capitalized terms in this Agreement shall have the meaning assigned
to them in the attached Appendix. Now, therefore, it is hereby agreed as
follows:

          1. GRANT OF OPTION. The Corporation hereby grants to Optionee, as of
the Grant Date, an option to purchase up to the number of Option Shares
specified in the Grant Notice. The Option Shares shall be purchasable from time
to time during the option term specified in Paragraph 2 at the Exercise Price.

          2. OPTION TERM. This option shall have a term of five (5) years
measured from the Grant Date and shall accordingly expire at the close of
business on the Expiration Date, unless sooner terminated in accordance with
Paragraph 5 or 6.

          3. LIMITED TRANSFERABILITY. During Optionee's lifetime, this option
shall be exercisable only by Optionee and shall not be assignable or
transferable other than by will or by the laws of descent and distribution
following Optionee's death.

          4. DATES OF EXERCISE. This option shall become exercisable for the
Option Shares in one or more installments as specified in the Grant Notice. As
the option becomes exercisable for such installments, those installments shall
accumulate and the option shall remain exercisable for the accumulated
installments until the Expiration Date or sooner termination of the option term
under Paragraph 5 or 6.

          5. CESSATION OF SERVICE. The option term specified in Paragraph 2
shall terminate (and this option shall cease to be outstanding) prior to the
Expiration Date should any of the following provisions become applicable:

               (a) Should Optionee cease to remain in Service for any reason
(other than death, Disability or termination for Cause) while this option is
outstanding, then Optionee shall have a period of three (3) months (commencing

<PAGE>

with the date of such cessation of Service) during which to exercise this
option, but in no event shall this option be exercisable at any time after the
Expiration Date.

               (b) Should Optionee die while this option is outstanding, then
the personal representative of Optionee's estate or the person or persons to
whom the option is transferred pursuant to Optionee's will or in accordance with
the laws of inheritance shall have the right to exercise this option. Such right
shall lapse, and this option shall cease to be outstanding, upon the earlier of
(i) the expiration of the twelve (12)-month period measured from the date of
Optionee's death or (ii) the Expiration Date.

               (c) Should Optionee cease Service by reason of Disability while
this option is outstanding, then Optionee shall have a period of twelve (12)
months (commencing with the date of such cessation of Service) during which to
exercise this option. In no event shall this option be exercisable at any time
after the Expiration Date.

          NOTE: Exercise of this option on a date later than three
          (3) months following cessation of Service due to Disability
          will result in loss of favorable Incentive Option treatment,
          unless such Disability constitutes Permanent Disability. In
          the event that Incentive Option treatment is not available,
          this option will be taxed as a Non-Statutory Option upon exercise.

               (d) During the limited period of post-Service exercisability,
this option may not be exercised in the aggregate for more than the number of
Option Shares in which Optionee is, at the time of Optionee's cessation of
Service, vested pursuant to the Vesting Schedule specified in the Grant Notice.
Upon the expiration of such limited exercise period or (if earlier) upon the
Expiration Date, this option shall terminate and cease to be outstanding for any
vested Option Shares for which the option has not been exercised. To the extent
Optionee is not vested in the Option Shares at the time of Optionee's cessation
of Service, this option shall immediately terminate and cease to be outstanding
with respect to those shares.

               (e) Should the Optionee's Service be terminated for Cause, then
this Option shall immediately terminate and cease to be exercisable for any of
the Option Shares.

     6. SPECIAL TERMINATION OF OPTION.

               (a) This option shall be assumable by the successor corporation
(or parent thereof) in any Corporate Transaction, and to the extent this option
is not so assumed, the option shall terminate and cease to be outstanding
immediately following the consummation of such Corporate Transaction.

               (b) If this option is assumed in connection with a Corporate
Transaction, then this option shall be appropriately adjusted, immediately after
such Corporate Transaction, to apply to the number and class of securities which
would have been issuable to Optionee in consummation of such Corporate

<PAGE>

Transaction had the option been exercised immediately prior to such Corporate
Transaction, and appropriate adjustments shall also be made to the Exercise
Price, provided the aggregate Exercise Price shall remain the same.

               (c) This Agreement shall not in any way affect the right of the
Corporation to adjust, reclassify, reorganize or otherwise change its capital or
business structure or to merge, consolidate, dissolve, liquidate or sell or
transfer all or any part of its business or assets.

     7. ADJUSTMENT IN OPTION SHARES. Should any change be made to the Common
Stock by reason of any stock split, stock dividend, recapitalization,
combination of shares, exchange of shares or other change affecting the
outstanding Common Stock as a class without the Corporation's receipt of
consideration, appropriate adjustments shall be made to (i) the total number
and/or class of securities subject to this option and (ii) the Exercise Price in
order to reflect such change and thereby preclude a dilution or enlargement of
benefits hereunder.

     8. SHAREHOLDER RIGHTS. The holder of this option shall not have any
shareholder rights with respect to the Option Shares until such person shall
have exercised the option, paid the Exercise Price and become a holder of record
of the purchased shares.

     9. MANNER OF EXERCISING OPTION.

               (a) In order to exercise this option with respect to all or any
part of the Option Shares for which this option is at the time exercisable,
Optionee (or any other person or persons exercising the option) must take the
following actions:

                    (i) To the extent the option is exercised for vested Option
          Shares, the Secretary of the Corporation shall be provided with
          written notice of the option exercise (the "Exercise Notice"), in
          substantially the form of Exhibit I attached hereto, in which there is
          specified the number of vested Option Shares to be purchased under the
          exercised option. To the extent that the option is exercised for one
          or more unvested Option Shares, Optionee (or other person exercising
          the option) shall deliver to the Secretary of the Corporation a
          Purchase Agreement for those unvested Option Shares.

                    (ii) Pay the aggregate Exercise Price for the purchased
          shares in one or more of the following forms:

                         (A) cash or check made payable to the Corporation; or

                         (B) cancellation of any indebtedness owed by the
                Corporation to the Optionee; or

                         (C) a promissory note payable to the Corporation, but
                only to the extent authorized by the Plan Administrator in
                accordance with Paragraph 13; or

<PAGE>

                         (D) in shares of Common Stock held by Optionee (or any
                other person or persons exercising the option) for at least
                six (6) months, and valued at Fair Market Value on the
                Exercise Date; or

                         (E) to the extent the option is exercised for vested
                Option Shares and such procedure is available at the time of
                such exercise, through a special sale and remittance
                procedure pursuant to which Optionee (or any other person or
                persons exercising the option) shall concurrently provide
                irrevocable instructions (a) to a Corporation-designated
                brokerage firm to effect the immediate sale of the purchased
                shares and remit to the Corporation, out of the sale
                proceeds available on the settlement date, sufficient funds
                to cover the aggregate Exercise Price payable for the
                purchased shares plus all applicable Federal, state and
                local income and employment taxes required to be withheld by
                the Corporation by reason of such exercise and (b) to the
                Corporation to deliver the certificates for the purchased
                shares directly to such brokerage firm in order to complete
                the sale.

                    Except to the extent the sale and remittance procedure is
                utilized in connection with the option exercise, payment of the
                Exercise Price must accompany the Purchase Agreement delivered
                to the Corporation in connection with the option exercise.

                    (iii) Furnish to the Corporation appropriate documentation
          that the person or persons exercising the option (if other than
          Optionee) have the right to exercise this option.

                    (iv) Execute and deliver to the Corporation such written
          representations as may be requested by the Corporation in order for it
          to comply with the applicable requirements of Federal and state
          securities laws.

                    (v) Make appropriate arrangements with the Corporation (or
          Parent or Subsidiary employing or retaining Optionee) for the
          satisfaction of all Federal, state and local income and employment tax
          withholding requirements applicable to the option exercise.

          (b) As soon as practical after the Exercise Date, the Corporation
shall issue to or on behalf of Optionee (or any other person or persons
exercising this option) a certificate for the purchased Option Shares, with the
appropriate legends affixed thereto.

          (c) In no event may this option be exercised for any fractional
shares.

<PAGE>

     10. COMPLIANCE WITH LAWS AND REGULATIONS.

          (a) The exercise of this option and the issuance of the Option Shares
upon such exercise shall be subject to compliance by the Corporation and
Optionee with all applicable requirements of law relating thereto and with all
applicable regulations of any stock exchange (or the Nasdaq National Market or
the Nasdaq Small Cap Market, if applicable) on which the Common Stock may be
listed for trading at the time of such exercise and issuance.

          (b) The inability of the Corporation to obtain approval from any
regulatory body having authority deemed by the Corporation to be necessary to
the lawful issuance and sale of any Common Stock pursuant to this option shall
relieve the Corporation of any liability with respect to the non-issuance or
sale of the Common Stock as to which such approval shall not have been obtained.
The Corporation, however, shall use its best efforts to obtain all such
approvals.

     11. SUCCESSORS AND ASSIGNS. Except to the extent otherwise provided in
Paragraphs 3 and 6, the provisions of this Agreement shall inure to the benefit
of, and be binding upon, the Corporation and its successors and assigns and
Optionee, Optionee's assigns and the legal representatives, heirs and legatees
of Optionee's estate.

     12. NOTICES. Any notice required to be given or delivered to the
Corporation under the terms of this Agreement shall be in writing and addressed
to the Corporation at its principal corporate offices. Any notice required to be
given or delivered to Optionee shall be in writing and addressed to Optionee at
the address indicated below Optionee's signature line on the Grant Notice. All
notices shall be deemed effective upon personal delivery or upon deposit in the
U.S. mail, postage prepaid and properly addressed to the party to be notified.

     13. FINANCING. The Plan Administrator may, in its absolute discretion and
without any obligation to do so, permit Optionee to pay the Exercise Price for
the purchased Option Shares by delivering a full-recourse, interest-bearing
promissory note secured by those Option Shares. The payment schedule in effect
for any such promissory note shall be established by the Plan Administrator in
its sole discretion.

     14. CONSTRUCTION. This Agreement and the option evidenced hereby are made
and granted pursuant to the Plan and are in all respects limited by and subject
to the terms of the Plan. All decisions of the Plan Administrator with respect
to any question or issue arising under the Plan or this Agreement shall be
conclusive and binding on all persons having an interest in this option.

     15. GOVERNING LAW. The interpretation, performance and enforcement of this
Agreement shall be governed by the laws of the State of California without
resort to that State's conflict-of-laws rules.

     16. SHAREHOLDER APPROVAL. If the Option Shares covered by this Agreement
exceed, as of the Grant Date, the number of shares of Common Stock which may be
issued under the Plan as last approved by the shareholders, then this option

<PAGE>

shall be void with respect to such excess shares, unless shareholder approval of
an amendment sufficiently increasing the number of shares of Common Stock
issuable under the Plan is obtained in accordance with the provisions of the
Plan.

     17. ADDITIONAL TERMS APPLICABLE TO AN INCENTIVE OPTION. In the event this
option is designated an Incentive Option in the Grant Notice, the following
terms and conditions shall also apply to the grant:

          (a) This option shall cease to qualify for favorable tax treatment as
an Incentive Option if (and to the extent) this option is exercised for one or
more Option Shares: (i) ore than three (3) months after the date Optionee ceases
to be an Employee for any reason other than death or Permanent Disability or
(ii) more than twelve (12) months after the date Optionee ceases to be an
Employee by reason of Permanent Disability.

          (b) This option shall not become exercisable in the calendar year in
which granted if (and to the extent) the aggregate Fair Market Value(determined
at the Grant Date) of the Common Stock for which this option would otherwise
first become exercisable in such calendar year would, when added to the
aggregate value (determined as of the respective date or dates of grant) of the
Common Stock and any other securities for which one or more other Incentive
Options granted to Optionee prior to the Grant Date (whether under the Plan or
any other option plan of the Corporation or any Parent or Subsidiary) first
become exercisable during the same calendar year, exceed One Hundred Thousand
Dollars ($100,000) in the aggregate. To the extent the exercisability of this
option is deferred by reason of the foregoing limitation, the deferred portion
shall become exercisable in the first calendar year or years thereafter in which
the One Hundred Thousand Dollar ($100,000) limitation of this Paragraph 18(b)
would not be contravened, but such deferral shall in all events end immediately
prior to the effective date of a Corporate Transaction in which this option is
not to be assumed, whereupon the option shall become immediately exercisable as
a Non-Statutory Option for the deferred portion of the Option Shares.

          (c) Should Optionee hold, in addition to this option, one or more
other options to purchase Common Stock which become exercisable for the first
time in the same calendar year as this option, then the foregoing limitations on
the exercisability of such options as Incentive Options shall be applied on the
basis of the order in which such options are granted.

     18. LEAVE OF ABSENCE. The following provisions shall apply upon the
Optionee's commencement of an authorized leave of absence:

               (i) The vesting schedule in effect under the Grant Notice shall
          be frozen as of the first day of the authorized leave, and no
          additional installments of the Option Shares shall vest during the
          period Optionee remains on such leave.

               (ii) Should Optionee resume active Employee status within sixty
          (60) days after the start date of the authorized leave, Optionee
          shall, for purposes of the vesting schedule set forth in the Grant

<PAGE>

          Notice, receive Service credit for the entire period of such leave. If
          Optionee does not resume active Employee status within such sixty
          (60)-day period, then no Service credit shall be given for the period
          of such leave.

               (iii) If the option is designated as an Incentive Option in the
          Grant Notice, then the following additional provision shall apply:

                    (A) If the leave of absence continues for more than ninety
               (90) days, then this option shall automatically convert to a
               Non-Statutory Option under the Federal tax laws at the end of
               such ninety (90)-day period, unless the Optionee's reemployment
               rights are guaranteed by statute or by written agreement.
               Following any such conversion of the option, all subsequent
               exercises of such option, whether effected before or after
               Optionee's return to active Employee status, shall result in an
               immediate taxable event, and the Corporation shall be required to
               collect from Optionee the Federal, state and local income and
               employment withholding taxes applicable to such exercise.

               (iv) No additional Option Shares shall vest and the option shall
          cease to remain outstanding for any Option Shares, if Optionee does
          not resume Employee status prior to the Expiration Date of the option
          term.

<PAGE>

                                    APPENDIX

     The following definitions shall be in effect under the Agreement:

     A. AGREEMENT shall mean this Stock Option Agreement.

     B. BOARD shall mean the Corporation's Board of Directors.

     C. CAUSE shall have the same meaning in effect for that term under any
written employment agreement which may exist between Optionee and the
Corporation (or any Parent or Subsidiary) at the time Optionee's Service is
terminated. In the absence of such a written employment agreement, the
Optionee's Service shall be deemed to have been terminated for Cause if such
termination is due to the commission of any act of fraud, embezzlement or
dishonesty by Optionee, any unauthorized use or disclosure by Optionee of
confidential information or trade secrets of the Corporation (or any Parent or
Subsidiary), or any other intentional misconduct by Optionee adversely affecting
the business or affairs of the Corporation (or any Parent or Subsidiary) in a
material manner. Such definition shall not be deemed to be inclusive of all the
acts or omissions which the Corporation (or any Parent or Subsidiary) may
consider as grounds for the dismissal or discharge of Optionee or any other
individual in the Service of the Corporation (or any Parent or Subsidiary).

     D. CODE shall mean the Internal Revenue Code of 1986, as amended.

     E. COMMON STOCK shall mean the Corporation's common stock.

     F. CORPORATE TRANSACTION shall mean either of the following shareholder-
approved transactions to which the Corporation is a party:

          (i) a merger or consolidation in which securities possessing more than
     fifty percent (50%) of the total combined voting power of the Corporation's
     outstanding securities are transferred to a person or persons different
     from the persons holding those securities immediately prior to such
     transaction, or

          (ii) the sale, transfer or other disposition of all or substantially
     all of the Corporation's assets in complete liquidation or dissolution of
     the Corporation.

     G. CORPORATION shall mean Overseas Filmgroup, Inc., a Delaware corporation.

     H. DISABILITY shall mean the inability of Optionee to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental impairment and shall be determined by the Plan Administrator on the basis
of such medical evidence as the Plan Administrator deems warranted under the
circumstances. Disability shall be deemed to constitute PERMANENT DISABILITY in
the event that such Disability is expected to result in death or has lasted or
can be expected to last for a continuous period of twelve (12) months or more.

<PAGE>

     I. EMPLOYEE shall mean an individual who is in the employ of the
Corporation (or any Parent or Subsidiary), subject to the control and direction
of the employer entity as to both the work to be performed and the manner and
method of performance.

     J. EXERCISE DATE shall mean the date on which the option shall have been
exercised in accordance with Paragraph 9 of the Agreement.

     K. EXERCISE PRICE shall mean the exercise price payable per Option Share as
specified in the Grant Notice.

     L. EXPIRATION DATE shall mean the date on which the option expires as
specified in the Grant Notice.

     M. FAIR MARKET VALUE per share of Common Stock on any relevant date shall
be determined in accordance with the following provisions:

               -- While the Common Stock is traded only on the OTC Bulletin
          Board, the Fair Market Value per share shall be the average of the
          highest bid and lowest asked prices of the Common Stock quoted on the
          relevant date.

               -- If the Common Stock should subsequently become traded on the
          Nasdaq Small Cap Market, then the Fair Market Value per share shall be
          the average of the highest bid and lowest asked prices of the Common
          Stock quoted for the relevant date. However, for any date in question
          under the Plan on which there is a closing selling price quoted for
          the Common Stock on the Nasdaq Small Cap Market, such closing selling
          price shall be deemed to be the Fair Market Value per share of Common
          Stock on that date.

               -- Should the Common Stock be admitted for trading on the Nasdaq
          National Market, the Fair Market Value per share of Common Stock on
          any relevant date shall be the closing selling price per share on that
          date as reported by the National Association of Securities Dealers on
          the Nasdaq National Market.

               -- If the Common Stock becomes traded on any Stock Exchange, then
          the Fair Market Value per share of Common Stock on any relevant date
          shall be the closing selling price per share on that date on such
          exchange, as reported in The Wall Street Journal.

     N. GRANT DATE shall mean the date of grant of the option as specified in
the Grant Notice.

     O. GRANT NOTICE shall mean the Notice of Grant of Stock Option accompanying
the Agreement, pursuant to which Optionee has been informed of the basic terms
of the option evidenced hereby.

<PAGE>

     P. INCENTIVE OPTION shall mean an option which satisfies the requirements
of Code Section 422.

     Q. 1934 ACT shall mean the Securities Exchange Act of 1934, as amended.

     R. NON-STATUTORY OPTION shall mean an option not intended to satisfy the
requirements of Code Section 422.

     S. OPTION SHARES shall mean the number of shares of Common Stock subject to
the option.

     T. OPTIONEE shall mean the person to whom the option is granted as
specified in the Grant Notice.

     U. PARENT shall mean any corporation (other than the Corporation) in an
unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the time
of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

     V. PLAN shall mean the Corporation's Basic 1996 Stock Option and Stock
Appreciation Rights Plan.

     W. PLAN ADMINISTRATOR shall mean either the Board or a committee of the
Board acting in its capacity as administrator of the Plan.

     X. PURCHASE AGREEMENT shall mean the stock purchase agreement
insubstantially the form of Exhibit B to the Grant Notice.

     Y. SERVICE shall mean the Optionee's performance of services for the
Corporation (or any Parent or Subsidiary) in the capacity of an Employee, a
non-employee member of the board of directors or an independent consultant.

     Z. STOCK EXCHANGE shall mean the American Stock Exchange or the New York
Stock Exchange.

     AA. SUBSIDIARY shall mean any corporation (other than the Corporation) in
an unbroken chain of corporations beginning with the Corporation, provided each
corporation (other than the last corporation) in the unbroken chain owns, at the
time of the determination, stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

<PAGE>

                                    EXHIBIT I
                               NOTICE OF EXERCISE

     I hereby notify Overseas Filmgroup, Inc. (the "Corporation") that I elect
to purchase __________ shares of the Corporation's Common Stock (the"Purchased
Shares") at the option exercise price of $___________ per share (the "Exercise
Price") pursuant to that certain option (the "Option") granted to me under the
Corporation's 1996 Basic Stock Option and Stock Appreciation Rights Plan on
____________________, 200___. Concurrently with the delivery of this Exercise
Notice to the Secretary of the Corporation, I shall hereby pay to the
Corporation the Exercise Price for the Purchased Shares in accordance with the
provisions of my agreement with the Corporation evidencing the Option and shall
deliver whatever additional documents may be required by such agreement as a
condition for exercise. To the extent such procedure is available at the time
the Option is exercised, I may also utilize the special broker/dealer sale and
remittance procedure specified in my agreement to effect payment of the Exercise
Price for any Purchased Shares in which I am vested at the time of exercise.

____________________, 200____
Date

                                          _____________________________________
                                           Optionee

                                           Address:____________________________

                                                   _____________________________

Print name in exact manner
it is to appear on the
stock certificate:                         ____________________________________

Address to which certificate
is to be sent, if different
from address above:                        ____________________________________

                                           ____________________________________

                                           ____________________________________

                                           ____________________________________

Social Security Number:                    ____________________________________

<PAGE>

                                                                     EXHIBIT B

                            OVERSEAS FILMGROUP, INC.
                            STOCK PURCHASE AGREEMENT

     AGREEMENT made as of this ____ day of _______________________ 200____, by
and between Overseas Filmgroup, Inc., a Delaware corporation (the
"Corporation"), and __________________________________, the recipient of an
option grant ("Optionee") under the Corporation's 1996 Basic Stock Option and
Stock Appreciation Rights Plan.

     All capitalized terms in this Agreement shall have the meaning assigned to
them in this Agreement or in the attached Appendix.

BB. EXERCISE OF OPTION

     1. EXERCISE. Optionee hereby purchases ____________ unvested shares of
Common Stock (the "Purchased Shares") pursuant to that certain option (the
"Option") granted Optionee on __________________________, 200__ (the "Grant
Date") to purchase up to _______________________ shares of Common Stock under
the Plan at the exercise price of $______ per share (the "Exercise Price").

     2. PAYMENT. Concurrently with the delivery of this Agreement to the
Corporation, Optionee shall pay the Exercise Price for the Purchased Shares in
accordance with the provisions of the Option Agreement and shall deliver
whatever additional documents may be required by the Option Agreement as a
condition for exercise, together with a duly-executed blank Assignment (in the
form attached hereto as Exhibit I) with respect to the Purchased Shares.

     3. STOCKHOLDER RIGHTS. Until such time as the Corporation exercises the
Repurchase Right, Optionee (or any successor in interest) shall have all the
rights of a stockholder (including voting, dividend and liquidation rights) with
respect to the Purchased Shares, subject, however, to the transfer restrictions
of Article B.

     4. COMPLIANCE WITH LAW. Under no circumstances shall shares of Common Stock
or other assets be issued or delivered to Optionee pursuant to the provisions of
this Agreement unless, in the opinion of counsel for the Corporation or its
successors, there shall have been compliance with all applicable requirements of
the Federal and state securities laws, all applicable listing requirements of
any stock exchange (or the Nasdaq National Market or the Nasdaq Small Cap Market
if applicable) on which the Common Stock is at the time listed for trading and
all other requirements of law or of any regulatory bodies having jurisdiction
over such issuance and delivery.

CC. TRANSFER RESTRICTIONS

     1. RESTRICTION ON TRANSFER. Except for any Permitted Transfer, Optionee
shall not transfer, assign, encumber or otherwise dispose of any of the
Purchased Shares which are subject to the Repurchase Right.

<PAGE>

     2. RESTRICTIVE LEGEND. The stock certificates for the Purchased Shares
shall be endorsed with the following restrictive legend:

     "The shares represented by this certificate are unvested and subject to a
     repurchase right granted to the Corporation and accordingly may not be
     sold, assigned, transferred, encumbered or in any manner disposed of except
     in conformity with the terms of a written agreement dated ____________,
     200__ between the Corporation and the registered holder of the shares (or
     the predecessor in interest to the shares). A copy of such agreement is
     maintained at the Corporation's principal corporate offices."

     3. TRANSFEREE OBLIGATIONS. Each person to whom the Purchased Shares are
transferred by means of a Permitted Transfer must, as a condition precedent to
the validity of such transfer, acknowledge in writing to the Corporation that
such person is bound by the provisions of this Agreement and that the
transferred shares are subject to the Repurchase Right to the same extent such
shares would be so subject if retained by Optionee.

DD. REPURCHASE RIGHT

     1. GRANT. The Corporation is hereby granted the right (the "Repurchase
Right"), exercisable at any time during the sixty (60)-day period following the
date Optionee ceases for any reason to remain in Service or (if later) during
the sixty (60)-day period following the execution date of this Agreement, to
repurchase at the Exercise Price all or (at the discretion of the Corporation
and with the consent of Optionee) any portion of the Purchased Shares in which
Optionee is not, at the time of his or her cessation of Service, vested in
accordance with the Vesting Schedule (such shares to be hereinafter referred to
as the "Unvested Shares").

     2. EXERCISE OF THE REPURCHASE RIGHT. The Repurchase Right shall be
exercisable by written notice delivered to each Owner of the Unvested Shares
prior to the expiration of the sixty (60)-day exercise period. The notice shall
indicate the number of Unvested Shares to be repurchased and the date on which
the repurchase is to be effected, such date to be not more than thirty (30) days
after the date of such notice. The certificates representing the Unvested Shares
to be repurchased shall be delivered to the Corporation on or before the close
of business on the date specified for the repurchase. Concurrently with the
receipt of such stock certificates, the Corporation shall pay to Owner, in cash
or cash equivalents (including the cancellation of any purchase-money
indebtedness), an amount equal to the Exercise Price previously paid for the
Unvested Shares which are to be repurchased from Owner.

     3. TERMINATION OF THE REPURCHASE RIGHT. The Repurchase Right shall
terminate with respect to any Unvested Shares for which it is not timely
exercised under Paragraph D.2. In addition, the Repurchase Right shall terminate
and cease to be exercisable with respect to any and all Purchased Shares in
which Optionee vests in accordance with the Vesting Schedule.

                                        2

<PAGE>

     4. AGGREGATE VESTING LIMITATION. If the Option is exercised in more than
one increment so that Optionee is a party to one or more other Stock Purchase
Agreements (the "Prior Purchase Agreements") which are executed prior to the
date of this Agreement, then the total number of Purchased Shares as to which
Optionee shall be deemed to have a fully-vested interest under this Agreement
and all Prior Purchase Agreements shall not exceed in the aggregate the number
of Purchased Shares in which Optionee would otherwise at the time be vested, in
accordance with the Vesting Schedule, had all the Purchased Shares (including
those acquired under the Prior Purchase Agreements) been acquired exclusively
under this Agreement.

     5. RECAPITALIZATION. Any new, substituted or additional securities or other
property (including cash paid other than as a regular cash dividend) which is by
reason of any Recapitalization distributed with respect to the Purchased Shares
shall be immediately subject to the Repurchase Right and any escrow requirements
hereunder, but only to the extent the Purchased Shares are at the time covered
by such right or escrow requirements. Appropriate adjustments to reflect such
distribution shall be made to the number and/or class of Purchased Shares
subject to this Agreement and to the price per share to be paid upon the
exercise of the Repurchase Right in order to reflect the effect of any such
Recapitalization upon the Corporation's capital structure; provided, however,
that the aggregate purchase price shall remain the same.

     6. CORPORATE TRANSACTION.

          (a) The Repurchase Right shall be assignable to the successor entity
in any Corporate Transaction. However, to the extent the successor entity does
not accept such assignment, the Repurchase Right shall terminate immediately
upon the consummation of such Corporate Transaction.

          (b) To the extent the Repurchase Right remains in effect following a
Corporate Transaction, such right shall apply to any new securities or other
property (including any cash payments) received in exchange for the Purchased
Shares in consummation of the Corporate Transaction, but only to the extent the
Purchased Shares are at the time covered by such right. Appropriate adjustments
shall be made to the price per share payable upon exercise of the Repurchase
Right to reflect the effect of the Corporate Transaction upon the Corporation's
capital structure; PROVIDED, however, that the aggregate purchase price shall
remain the same. The new securities or other property (including any cash
payments) issued or distributed with respect to the Purchased Shares in
consummation of the Corporate Transaction shall be immediately deposited in
escrow with the Corporation (or the successor entity) and shall not be released
from escrow until Optionee vests in such securities or other property in
accordance with the same Vesting Schedule in effect for the Purchased Shares.

EE. SPECIAL TAX ELECTION

     1. The compensation income recognized by the Optionee in connection with
the acquisition of the Purchased Shares may under certain circumstances be
reduced by filing an election under Code Section 83(b). Such election must be

                                        3

<PAGE>

filed within thirty (30) days after the date of this Agreement. A description of
the tax consequences applicable to the acquisition of the Purchased Shares and
the form for making the Code Section 83(b) election are set forth in Exhibit II.

     2. OPTIONEE SHOULD CONSULT WITH HIS OR HER TAX ADVISOR TO DETERMINE THE TAX
CONSEQUENCES OF FILING THE CODE SECTION 83(B) ELECTION. OPTIONEE ACKNOWLEDGES
THAT IT IS OPTIONEE'S SOLE RESPONSIBILITY, AND NOT THE CORPORATION'S, TO FILE A
TIMELY ELECTION UNDER CODE SECTION 83(B), EVEN IF OPTIONEE REQUESTS THE
CORPORATION OR ITS REPRESENTATIVES TO MAKE THIS FILING ON HIS OR HER BEHALF.

FF. GENERAL PROVISIONS

     1. ASSIGNMENT. The Corporation may assign the Repurchase Right to any
person or entity selected by the Board, including (without limitation) one or
more shareholders of the Corporation. If the assignee of the Repurchase Right is
other than (i) a wholly owned subsidiary of the Corporation or (ii) the parent
corporation owning one hundred percent (100%) of the Corporation's outstanding
capital stock, then such assignee must make a cash payment to the corporation,
upon the assignment of the Repurchase Right, in an amount equal to the excess
(if any) of (i) the Fair Market Value of the Purchased Shares at the time
subject to the assigned Repurchase Right over (ii) the aggregate repurchase
price payable for the Unvested Shares.

     2. NO EMPLOYMENT OR SERVICE CONTRACT. Nothing in this Agreement or in the
Plan shall confer upon Optionee any right to continue in Service for any period
of specific duration or interfere with or otherwise restrict in any way the
rights of the Corporation (or any Parent or Subsidiary employing or retaining
Optionee) or of Optionee, which rights are hereby expressly reserved by each, to
terminate Optionee's Service at any time for any reason, with or without cause,
subject to any provision to the contrary in any written employment agreement
which may be in effect at the time between Optionee and the corporation (or any
such Parent or Subsidiary).

     3. NOTICES. Any notice required to be given under this Agreement shall be
in writing and shall be deemed effective upon personal delivery or upon deposit
in the U.S. mail, registered or certified, postage prepaid and properly
addressed to the party entitled to such notice at the address indicated below
such party's signature line on this Agreement or at such other address as such
party may designate by ten (10) days advance written notice under this paragraph
to all other parties to this Agreement.

     4. NO WAIVER. The failure of the Corporation to exercise the Repurchase
Right shall not constitute a waiver of any other repurchase rights that may
subsequently arise under the provisions of any other agreement between the
Corporation and Optionee. No waiver of any breach or condition of this Agreement
shall be deemed to be a waiver of any other or subsequent breach or condition,
whether of like or different nature.

                                        4

<PAGE>

     5. CANCELLATION OF SHARES. If the Corporation shall make available, at the
time and place and in the amount and form provided in this Agreement, the
consideration for the Purchased Shares to be repurchased in accordance with the
provisions of this Agreement, then from and after such time, the person from
whom such shares are to be repurchased shall no longer have any rights as a
holder of such shares (other than the right to receive payment of such
consideration in accordance with this Agreement). Such shares shall be deemed
purchased in accordance with the applicable provisions hereof, and the
corporation shall be deemed the owner and holder of such shares, whether or not
the certificates therefor have been delivered as required by this Agreement.

GG. MISCELLANEOUS PROVISIONS

     1. OPTIONEE UNDERTAKING. Optionee hereby agrees to take whatever additional
action and execute whatever additional documents the Corporation may deem
necessary or advisable in order to carry out or effect one or more of the
obligations or restrictions imposed on either Optionee or the Purchased Shares
pursuant to the provisions of this Agreement.

     2. AGREEMENT IS ENTIRE CONTRACT. This Agreement constitutes the entire
contract between the parties hereto with regard to the subject matter hereof.
This Agreement is made pursuant to the provisions of the Plan and shall in all
respects be construed in conformity with the terms of the Plan.

     3. GOVERNING LAW. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of California without resort to that
State's conflict-of-laws rules.

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

     5. SUCCESSORS AND ASSIGNS. The provisions of this Agreement shall inure to
the benefit of, and be binding upon, the Corporation and its successors and
assigns and upon Optionee, Optionee's permitted assigns and the legal
representatives, heirs and legatees of Optionee's estate, whether or not any
such person shall have become a party to this Agreement and have agreed in
writing to join herein and be bound by the terms hereof.

                                        5

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement on the day and
year first indicated above.

                                       OVERSEAS FILMGROUP, INC.

                                       By:_______________________________
                                          Name:
                                          Title:

                                       __________________________________
                                       OPTIONEE

                                       Address: _________________________

                                       __________________________________

                                        6

<PAGE>

                                    EXHIBIT I

                                   ASSIGNMENT

     FOR VALUE RECEIVED ______________________ hereby sell(s), assign(s)and
transfer(s) unto Overseas Filmgroup, Inc. (the "Corporation"), _________________
(________) shares of the Common Stock of the Corporation standing in his or her
name on the books of the Corporation represented by Certificate No. __________
herewith and do(es) hereby irrevocably constitute and appoint ________________
Attorney to transfer the said stock on the books of the Corporation with full
power of substitution in the premises.

Dated: ________________________

Signature:______________________

INSTRUCTION: Please do not fill in any blanks other than the signature line.
Please sign exactly as you would like your name to appear on the issued stock
certificate. The purpose of this assignment is to enable the Corporation to
exercise the Repurchase Right without requiring additional signatures on the
part of Optionee.

                                        7

<PAGE>

                                   EXHIBIT II

         FEDERAL INCOME TAX CONSEQUENCES AND SECTION 83(B) TAX ELECTION

A. FEDERAL INCOME TAX CONSEQUENCES AND SECTION 83(B) ELECTION FOR EXERCISE OF
NON-STATUTORY OPTION. If the Purchased Shares are acquired pursuant to the
exercise of a Non-Statutory Option, as specified in the Grant Notice, then under
Code Section 83, the excess of the fair market value of the Purchased Shares on
the date any forfeiture restrictions applicable to such shares lapse over the
Exercise Price paid for such shares will be reportable as ordinary income on the
lapse date. For this purpose, the term "forfeiture restrictions"includes the
right of the Corporation to repurchase the Purchased Shares pursuant to the
Repurchase Right. However, Optionee may elect under Code Section 83(b) to be
taxed at the time the Purchased Shares are acquired, rather than when and as
such Purchased Shares cease to be subject to such forfeiture restrictions. Such
election must be filed with the Internal Revenue Service within thirty (30) days
after the date of the Agreement. Even if the fair market value of the Purchased
Shares on the date of the Agreement equals the Exercise Price paid (and thus no
tax is payable), the election must be made to avoid adverse tax consequences in
the future. The form for making this election is attached as part of this
exhibit. FAILURE TO MAKE THIS FILING WITHIN THE APPLICABLE THIRTY (30)-DAY
PERIOD WILL RESULT IN THE RECOGNITION OF ORDINARY INCOME BY OPTIONEE AS THE
FORFEITURE RESTRICTIONS LAPSE.

B. FEDERAL INCOME TAX CONSEQUENCES AND CONDITIONAL SECTION 83(B) ELECTION FOR
EXERCISE OF INCENTIVE OPTION. If the Purchased Shares are acquired pursuant to
the exercise of an Incentive Option, as specified in the Grant Notice, then the
following tax principles shall be applicable to the Purchased Shares:

     1. For regular tax purposes, no taxable income will be recognized at the
time the Option is exercised.

     2. The excess of (a) the Fair Market Value of the Purchased Shares on the
date the Option is exercised or (if later) on the date any forfeiture
restrictions applicable to the Purchased Shares lapse over (b) the Exercise
Price paid for the Purchased Shares will be includible in Optionee's taxable
income for alternative minimum tax purposes.

     3. If Optionee makes a disqualifying disposition of the Purchased Shares,
then Optionee will recognize ordinary income in the year of such disposition
equal in amount to the excess of (a) the Fair Market Value of the Purchased
Shares on the date the Option is exercised or (if later) on the date any
forfeiture restrictions applicable to the Purchased Shares lapse over (b) the
Exercise Price paid for the Purchased Shares. Any additional gain recognized
upon the disqualifying disposition will be either short-term or long-term
capital gain depending upon the period for which the Purchased Shares are held
prior to the disposition.

     4. For purposes of the foregoing, the term "forfeiture restrictions" will
include the right of the Corporation to repurchase the Purchased Shares pursuant

                                        8

<PAGE>

to the Repurchase Right. The term "disqualifying disposition" means any sale or
other disposition1 of the Purchased Shares within two (2) years after the Grant
Date or within one (1) year after the exercise date of the Option.

     5. In the absence of final Treasury Regulations relating to Incentive
Options, it is not certain whether Optionee may, in connection with the exercise
of the Option for any Purchased Shares at the time subject to forfeiture
restrictions, file a protective election under Code Section 83(b) which would
limit (a) Optionee's alternative minimum taxable income upon exercise and (b)
Optionee's ordinary income upon a disqualifying disposition to the excess of the
Fair Market Value of the Purchased Shares on the date the Option is exercised
over the Exercise Price paid for the Purchased Shares. Accordingly, such
election if properly filed will only be allowed to the extent the final Treasury
Regulations permit such a protective election. Page 2 of the attached form for
making the election should be filed with any election made in connection with
the exercise of an Incentive Option.

__________________

     1   Generally, a disposition of shares purchased under an Incentive Option
includes any transfer of legal title, including a transfer by sale, exchange or
gift, but does not include a transfer to the Optionee's spouse, a transfer into
joint ownership with right of survivorship if Optionee remains one of the joint
owners, a pledge, a transfer by bequest or inheritance or certain tax free
exchanges permitted under the Code.

                                        9

<PAGE>

                             SECTION 83(B) ELECTION

     This statement is being made under Section 83(b) of the Internal Revenue
Code, pursuant to Treas. Reg. Section 1.83-2.

(1)  The taxpayer who performed the services is:

     Name:
     Address:
     Taxpayer Ident. No.:

(2)  The property with respect to which the election is being made is
     ___________ shares of the common stock of Overseas Filmgroup, Inc.

(3)  The property was issued on ____________, 200__.

(4)  The taxable year in which the election is being made is the calendar year
     200__.

(5)  The property is subject to a repurchase right pursuant to which the issuer
     has the right to acquire the property at the original purchase price if for
     any reason taxpayer's service with the issuer is terminated. The issuer's
     repurchase right lapses in a series of installments over a
     ____________(______)-year period ending on ____________________, 200___.

(6)  The fair market value at the time of transfer (determined without regard to
     any restriction other than a restriction which by its terms will never
     lapse) is $ ____________per share.

(7)  The amount paid for such property is $ ___________ per share.

(8)  A copy of this statement was furnished to Overseas Filmgroup, Inc. for whom
     taxpayer rendered the services underlying the transfer of property.

(9)  This statement is executed on ______________________, 200__.

-------------------------           ----------------------------------------
Spouse (if any)                     Taxpayer

THIS ELECTION MUST BE FILED WITH THE INTERNAL REVENUE SERVICE CENTER WITH WHICH
TAXPAYER FILES HIS OR HER FEDERAL INCOME TAX RETURNS AND MUST BE MADE WITHIN
THIRTY (30) DAYS AFTER THE EXECUTION DATE OF THE STOCK PURCHASE AGREEMENT. THIS
FILING SHOULD BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED.
OPTIONEE MUST RETAIN TWO (2) COPIES OF THE COMPLETED FORM FOR FILING WITH HIS OR

                                       10

<PAGE>

HER FEDERAL AND STATE TAX RETURNS FOR THE CURRENT TAX YEAR AND AN ADDITIONAL
COPY FOR HIS OR HER RECORDS.

     The property described in the above Section 83(b) election is comprised of
shares of common stock acquired pursuant to the exercise of an incentive stock
option under Section 422 of the Internal Revenue Code (the "Code"). Accordingly,
it is the intent of the Taxpayer to utilize this election to achieve the
following tax results:

     1. The purpose of this election is to have the alternative minimum taxable
income attributable to the purchased shares measured by the amount by which the
fair market value of such shares at the time of their transfer to the Taxpayer
exceeds the purchase price paid for the shares. In the absence of this election,
such alternative minimum taxable income would be measured by the spread between
the fair market value of the purchased shares and the purchase price which
exists on the various lapse dates in effect for the forfeiture restrictions
applicable to such shares. The election is to be effective to the full extent
permitted under the Code.

     2. Section 421(a)(1) of the Code expressly excludes from income any excess
of the fair market value of the purchased shares over the amount paid for such
shares. Accordingly, this election is also intended to be effective in the event
there is a "disqualifying disposition" of the shares, within the meaning of
Section 421(b) of the Code, which would otherwise render the provisions of
Section 83(a) of the Code applicable at that time. Consequently, the Taxpayer
hereby elects to have the amount of disqualifying disposition income measured by
the excess of the fair market value of the purchased shares on the date of
transfer to the Taxpayer over the amount paid for such shares. Since Section
421(a) presently applies to the shares which are the subject of this Section
83(b) election, no taxable income is actually recognized for regular tax
purposes at this time, and no income taxes are payable, by the Taxpayer as a
result of this election.

THIS PAGE 2 IS TO BE ATTACHED TO ANY SECTION 83(B) ELECTION FILED IN CONNECTION
WITH THE EXERCISE OF AN INCENTIVE STOCK OPTION UNDER THE FEDERAL TAX LAWS.

                                       11

<PAGE>

                                    APPENDIX

     The following definitions shall be in effect under the Agreement:

A.   AGREEMENT shall mean this Stock Purchase Agreement.

B.   BOARD shall mean the Corporation's Board of Directors.

C.   CODE shall mean the Internal Revenue Code of 1986, as amended.

D.   COMMON STOCK shall mean the Corporation's common stock.

E.   CORPORATE TRANSACTION shall mean any of the following transactions to which
     the Corporation is a party:

     1. a merger or consolidation in which securities possessing more than fifty
percent (50%) of the total combined voting power of the Corporation's
outstanding securities are transferred to a person or persons different from the
persons holding those securities immediately prior to such transaction, or

     2. the sale, transfer or other disposition of all or substantially all of
the Corporation's assets in complete liquidation or dissolution of the
Corporation.

F.   CORPORATION shall mean Overseas Filmgroup, Inc., a Delaware corporation.

G.   EXERCISE PRICE shall have the meaning assigned to such term in Paragraph
     A.1.

H.   GRANT DATE shall have the meaning assigned to such term in Paragraph A.1.

I.   GRANT NOTICE shall mean the Notice of Grant of Stock Option pursuant to
     which Optionee has been informed of the basic terms of the Option.

J.   INCENTIVE OPTION shall mean an option which satisfies the requirements of
     Code Section 422.

K.   NON-STATUTORY OPTION shall mean an option not intended to satisfy the
     requirements of Code Section 422.

L.   OPTION shall have the meaning assigned to such term in Paragraph A.1.

M.   OPTION AGREEMENT shall mean all agreements and other documents evidencing
     the Option.

N.   OPTIONEE shall mean the person to whom the Option is granted.

                                       12

<PAGE>

O.   OWNER shall mean Optionee and all subsequent holders of the Purchased
     Shares who derive their chain of ownership through a Permitted Transfer
     from Optionee.

P.   PARENT shall mean any corporation (other than the Corporation) in an
     unbroken chain of corporations ending with the Corporation, provided each
     corporation in the unbroken chain (other than the Corporation) owns, at the
     time of the determination, stock possessing fifty percent (50%) or more of
     the total combined voting power of all classes of stock in one of the other
     corporations in such chain.

Q.   PERMITTED TRANSFER shall mean (i) a gratuitous transfer of the Purchased
     Shares, provided and only if Optionee obtains the Corporation's prior
     written consent to such transfer, (ii) a transfer of title to the Purchased
     Shares effected pursuant to Optionee's will or the laws of intestate
     succession following Optionee's death or (iii) a transfer to the
     Corporation in pledge as security for any purchase-money indebtedness
     incurred by Optionee in connection with the acquisition of the Purchased
     Shares.

R.   PLAN shall mean the Corporation's 1996 Basic Stock Option and Stock
     Appreciation Rights Plan.

S.   PRIOR PURCHASE AGREEMENT shall have the meaning assigned to such term in
     Paragraph C.4.

T.   PURCHASED SHARES shall have the meaning assigned to such term in Paragraph
     A.1.

U.   RECAPITALIZATION shall mean any stock split, stock dividend,
     recapitalization, reclassification, combination of shares, exchange of
     shares or other change affecting the outstanding Common Stock as a class
     without the corporation's receipt of consideration.

V.   REPURCHASE RIGHT shall mean the right granted to the Corporation in
     accordance with Article C.

W.   SERVICE shall mean the Optionee's performance of services for the
     corporation (or any Parent or Subsidiary) in the capacity of an employee,
     subject to the control and direction of the employer entity as to both the
     work to be performed and the manner and method of performance, a
     non-employee member of the board of directors or an independent consultant.

X.   SUBSIDIARY shall mean any corporation (other than the Corporation) in an
     unbroken chain of corporations beginning with the Corporation, provided
     each corporation (other than the last corporation) in the unbroken chain
     owns, at the time of the determination, stock possessing fifty percent
     (50%) or more of the total combined voting power of all classes of stock in
     one of the other corporations in such chain.

                                       13

<PAGE>

Y.   VESTING SCHEDULE shall mean the vesting schedule specified in the Grant
     Notice pursuant to which the Optionee is to vest in the Option Shares in a
     series of installments over his or her period of Service.

Z.   UNVESTED SHARES shall have the meaning assigned to such term in Paragraph
     C.1.

                                       14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}]]