WITNESSETH:

                                                                    EXHIBIT 10.4

                        EXTENSION AND AMENDMENT AGREEMENT

         THIS EXTENSION AND AMENDMENT AGREEMENT ("Agreement") is entered into as
of the 1st day of July, 1998 by and between Big Entertainment, Inc., a Florida
corporation (the "Company") and Xxxxxx X. Xxxxxxx (the "Executive").

                                   WITNESSETH:

         WHEREAS, the Executive has served as President of the Company since its
inception, and presently serves in this capacity pursuant to a written
Employment Agreement with the Company entered into as of July 1, 1993 (the
"Current Employment Agreement"); and

         WHEREAS, the five-year term of the Current Employment Agreement ends
July 1, 1998; and

         WHEREAS, the Executive possesses intimate knowledge of the business and
affairs of the Company, its policies, methods and personnel; and

         WHEREAS, the Board of Directors (the "Board") of the Company recognizes
that the Executive's contribution to the growth and success of the Company has
been and will continue to be substantial and desires to assure the Company of
the Executive's continued employment in an executive capacity and to compensate
Executive therefor; and

         WHEREAS, the Board has determined that entering into this Agreement to
extend and update the Current Employment Agreement will reinforce and encourage
the Executive's continued attention and dedication to the Company; and

         WHEREAS, the Executive is willing to make his services available to the
Company on the terms and conditions hereinafter set forth.

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

         1.  EXTENSION. The Current Employment Agreement is hereby extended for
             an additional five-year term beginning on the date hereof and
             ending on the fifth anniversary of said date unless sooner
             terminated pursuant to the terms of said Current Employment
             Agreement.

         2.  AMENDMENT TO REFLECT CURRENT BASE SALARY. Section 2.1 of the
             Current Employment Agreement is amended to provide that the "Base
             Salary" shall be $200,000 plus automatic cost of living adjustments
             made to date and subject to adjustment in accordance with said
             Section.


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The parties hereto acknowledge that the other terms of the Current Employment 
Agreement remain in full force and effect.

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

                                    COMPANY:

                                    BIG ENTERTAINMENT, INC.,
                                    a Florida corporation
                                    
                                    /s/ XXXXXXXX XXXXXXXXXX
                                    -------------------------------------------
                                    By:  Xxxxxxxx Xxxxxxxxxx
                                    Title:  Chief Executive Officer

                                    EXECUTIVE:

                                    /s/ XXXXXX X. XXXXXXX
                                    -------------------------------------------
                                    Xxxxxx X. Xxxxxxx



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