SECOND AMENDMENT TO PURCHASE AND SALE AGREEMENT
This SECOND AMENDMENT TO PURCHASE AND SALE AGREEMENT (this "AMENDMENT") is
dated as of this 10th day of November, 1997, by and between Cinergi Pictures
Entertainment Inc., a Delaware corporation, f/k/a/ Cinergi Productions, Inc.,
Cinergi Productions N.V. Inc., a Delaware corporation (collectively, "SELLER")
and Walt Disney Pictures and Television, a California corporation ("Buyer").
W I T N E S S E T H:
WHEREAS, Seller and Buyer entered into a Purchase and Sale Agreement dated
as of April 3, 1997 and that certain First Amendment to the Purchase and Sale
Agreement dated as of August 26, 1997 (the "FIRST AMENDMENT") (the Purchase and
Sale Agreement, as amended by the First Amendment, shall be referred to as the
"PURCHASE AGREEMENT"; capitalized terms used, but not otherwise defined herein,
shall have the meaning given to such terms in the Purchase Agreement); and
WHEREAS, Seller and Buyer each desire to amend certain terms of the Purchase
Agreement as set forth herein.
NOW, THEREFORE, based on the above premises and in consideration of the
mutual covenants and agreements contained herein, the parties agree as follows:
I. Amendment to Section 1.2(a). Section 1.2(a) is hereby amended by
deleting the phrase "November 22, 1997" appearing in the sixth (6th) line
and replacing it with the phrase "December 24, 1997".
II. Amendment to Section 2.4. Section 2.4(ii) is hereby amended by
deleting the reference to "An Alan Smithee Film".
III. Amendment with respect to "An Alan Smithee Film". Section 2.15
is hereby amended in its entirety to read as follows:
"2.15 "AN ALAN SMITHEE FILM". Seller shall complete the motion
picture entitled "An Alan Smithee Film" and fully deliver said
motion picture prior to Closing to Buyer in accordance with the
terms of the Alan Smithee Distribution Agreement and to each of
the foreign distributors who have entered into an Exploitation
Agreement including, without limitation, Existing Exploitation
Agreements with respect to said motion picture. As provided in
that certain Amendment to the Alan Smithee Distribution Agreement
dated as of September 17, 1997, as the same shall be amended to
reflect the provisions of this Section 2.15, upon delivery of "An
Alan Smithee Film" in compliance with the terms of the Alan
Smithee Distribution Agreement, as amended, Buyer shall pay to
Seller a sum of Three Million Seven Hundred Twenty Five Thousand
Dollars ($3,725,000), which payment (along with other minimum
guarantee payments received by Seller with respect to such motion
picture) shall be used by Seller to pay off the outstanding
principal and interest owing by Seller under the Credit,
Security, Pledge and Guaranty Agreement dated as of August 16,
1994, between Cinergi Productions N.V. Inc. and The Chase
Manhattan Bank, as Agent ("CHASE") (the "CHASE CREDIT
AGREEMENT"). Buyer agrees that Seller may retain (subject to
repayment in full of the Chase Credit Agreement) all fixed cash
minimum guarantees payable to Seller under Existing Exploitation
Agreements only for "An Alan Smithee Film" listed on Schedule
2.15 hereof. To the extent that Seller receives any fixed cash
minimum guarantees with respect to "An Alan Smithee Film" other
than those minimum guarantees listed on Schedule 2.15, then
Seller shall account for and remit such additional amounts to
Buyer on the Closing Date and thereafter in accordance with
Section 2.11 of this Agreement. Seller agrees that Seller will
not amend any of the terms or provisions of any of such Existing
Exploitation Agreements in any way that would decrease, delay or
otherwise
adversely affect payment of any amounts (other than the minimum
guarantees provided for in such Existing Exploitation Agreements
as specified in Schedule 2.15 hereof) otherwise payable pursuant
to such Existing Exploitation Agreements."
IV. Amendment Regarding Participation Settlement Negotiations. A
new Section 2.17 shall be added as follows:
"2.17 PARTICIPATION SETTLEMENT NEGOTIATIONS. Seller has notified
Buyer that Seller is presently in settlement discussions with
certain third parties regarding participation claims asserted by
the third parties against Seller. Seller agrees to (1) notify
Buyer of any participation claims which may be asserted by any
third parties against Seller and (2) keep Buyer advised as to the
status of all such negotiations, discussions and claims,
including any legal proceedings, and will not object to Buyer's
attendance at or other participation in any such discussions,
negotiations or proceedings. Seller agrees that any payment made
by Seller or any agreement entered into by Seller to pay or
settle any amounts or claims which could be an assumed liability
of Buyer under the terms of Section 2.2 of this Agreement,
including without limitation, participation obligations, shall
require the prior written consent of the Buyer. If
notwithstanding the foregoing, Seller makes any payments, takes,
or omits to take, any action with respect to any legal
proceedings, or enters into a settlement agreement with respect
to any amounts or claims which could be an assumed liability and
which is not approved by Buyer, Seller's obligations with respect
to such payments or under any such agreement shall be Excluded
Liabilities for purposes of Section 2.2."
V. Amendment to Schedule A. The definition of "Accounts Receivable"
in Schedule A is hereby amended by deleting the third (3rd) sentence in
its entirety and replacing it with the following:
"Notwithstanding the foregoing, the term "Accounts Receivable"
shall expressly exclude (a) with respect to the motion picture
entitled "An Alan Smithee Film" all contractual minimum
guarantees payable pursuant to the Existing Exploitation
Agreements in the amounts specified on Schedule 2.15 hereof, and
(b) with respect to all other Pictures all contractual minimum
guarantees payable pursuant to a contract in existence as of
January 1, 1997 (the "EXCLUDED RECEIVABLES"); provided, however,
notwithstanding the foregoing, the term "Accounts Receivable"
shall include (x) the contractual minimum guarantees due with
respect to the motion pictures presently entitled, "Up Close and
Personal", "Deep Rising" a/k/a "Tentacles", and (y) the
contractual minimum guarantees due with respect to the motion
picture entitled "An Alan Smithee Film" payable pursuant to any
contract other than the Existing Exploitation Agreements listed
on Schedule 2.15 hereof."
VI. Amendment to Schedule A. The definition of "Smithee Amount" is
hereby deleted in its entirety.
VII. Counterparts. This Amendment may be executed simultaneously in
two or more counterparts, each of which will be deemed an original, but
all of which together will constitute one and the same instrument.
VIII. No Other Changes. Except as expressly modified by the
provisions of this Amendment, the Purchase Agreement shall remain
unchanged in all respects and in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of
the date first above written.
CINERGI PICTURES ENTERTAINMENT INC.,
f/k/a CINERGI PRODUCTIONS, INC.
By: /s/ Warren Braverman
----------------------------------
Name: Warren Braverman
--------------------------------
Title: Executive Vice President
-------------------------------
CINERGI PRODUCTIONS N.V. INC.
By: /s/ Erick J. Feitshans
----------------------------------
Name: Erick J. Feitshans
--------------------------------
Title: Senior Vice President
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WALT DISNEY PICTURES AND TELEVISION
By: /s/ Robert Moore
----------------------------------
Name: Robert Moore
--------------------------------
Title: EVP, CFO
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To the extent that the rights of either of the undersigned are affected by
this Agreement, each of the undersigned acknowledges and consents to any such
modifications.
BUENA VISTA INTERNATIONAL, INC.
By: /s/ Jere R. Hausfater
----------------------------------
Name: Jere R. Hausfater
--------------------------------
Title: Sr. VP
-------------------------------
BUENA VISTA PICTURES DISTRIBUTION,
a division of ABC, INC.
By: /s/ Jere R. Hausfater
----------------------------------
Name: Jere R. Hausfater
--------------------------------
Title: Sr. VP
-------------------------------
SCHEDULE 2.15
EXISTING EXPLOITATION AGREEMENTS FOR "AN ALAN SMITHEE FILM"
- -------------------------------------------------------------------------------------
DATE OF MINIMUM
AGREEMENT LICENSOR LICENSEE TERRITORY MEDIA GUARANTEE
- --------- ------------- ------------------ ----------------- --------- ---------
10/14/96 CPNVI Roadshow Australia TH/V/TV 350,000
- -------------------------------------------------------------------------------------
10/30/96 CPNVI Belga Belgium TH/V/TV 90,000
- -------------------------------------------------------------------------------------
10/30/96 CPNVI UCD Croatia TH/V 30,000
- -------------------------------------------------------------------------------------
10/30/96 CPNVI Intersonic Czech TH/V 25,000
- -------------------------------------------------------------------------------------
10/29/96 CPNVI UGC - PH France/Switzerland TH/V/TV 500,000
- -------------------------------------------------------------------------------------
11/17/96 CPNVI Tobis Germany TH/V/TV 1,000,000
- -------------------------------------------------------------------------------------
Summit UK Roadshow Greece TH/V/TV 50,000
- -------------------------------------------------------------------------------------
10/29/96 CPNVI Okura Enterp. Hong Kong TH/V/TV 110,000
- -------------------------------------------------------------------------------------
10/30/96 CPKFT Medusa Italy TH/V/TV 1,000,000
- -------------------------------------------------------------------------------------
10/23/96 CPNVI Gaga Japan TH/V/TV 1,111,111
- -------------------------------------------------------------------------------------
10/28/96 CPKFT Digital Media Korea (South) TH/V/TV 600,000
Corp.
- -------------------------------------------------------------------------------------
10/2/96 CPEI/CPNVI Buena Vista Latin America TH/V/TV 0
- -------------------------------------------------------------------------------------
10/29/96 CPNVI Picture Image Malaysia TH/V/TV 45,000
- -------------------------------------------------------------------------------------
10/27/96 CPNVI Jaguar Film Middle East TH/V 70,000
- -------------------------------------------------------------------------------------
1/23/97 CPNVI Solar Films Philippines TH/V/TV 50,000
- -------------------------------------------------------------------------------------
10/30/96 CPNVI Best Film Poland TH/V 46,500
- -------------------------------------------------------------------------------------
1/22/97 Summit UK Prisvideo Portugal TH/V/TV 20,000
- -------------------------------------------------------------------------------------
10/30/96 CPNVI West Video Russia (C.I.S.) TH/V 35,000
- -------------------------------------------------------------------------------------
10/30/96 CPNVI Scenecast Serbia TH/V 14,400
- -------------------------------------------------------------------------------------
10/30/96 CPNVI Overseas Singapore TH/V 45,000
- -------------------------------------------------------------------------------------
10/30/96 CPNVI Vesna Dist. Slovenia TH/V 15,000
- -------------------------------------------------------------------------------------
10/28/96 Summit UK Ster-Kinekor So. Africa TH/V/TV 100,000
- -------------------------------------------------------------------------------------
10/28/96 CPKFT Sogepaq S.A. Spain TH/V/TV 625,000
- -------------------------------------------------------------------------------------
10/23/96 CPNVI Big Film Taiwan TH/V/TV 450,000
- -------------------------------------------------------------------------------------
10/30/96 CPNVI Entertain Pictures Thailand TH/V/TV 60,000
- -------------------------------------------------------------------------------------
11/25/96 Summit UK Ozen Film Turkey TH/V/TV 50,000
- -------------------------------------------------------------------------------------
1/14/97 CPNVI EFD U.K. TH/V/TV 500,000
- -------------------------------------------------------------------------------------
10/2/96 CPEI/CPNVI Buena Vista United States TH/V/TV 3,725,000
- -------------------------------------------------------------------------------------
CPEI = Cinergi Pictures Entertainment Inc.
CPNVI = Cinergi Productions N.V. Inc./Cinergi Productions N.V.
CPKFT = Cinergi Productions Kft.
Summit UK = Summit Export (UK Ltd.)