DEAL MEMORANDUM
THIS AGREEMENT dated as of the 26 January 1996 between Cinergi Productions N.V.
Inc. ("Cinergi") and Buena Vista Distribution International, Inc. ("BVI") is
entered into between the parties relating to the distribution of the theatrical
motion picture "Evita" ("the picture") in the Territory set forth below, as
follows:
1. ADVANCE: Three Million US Dollars (US$3,000,000) payable on a cash flow
basis. BVI's advance will be covered by the completion bond and
Five Hundred Thousand US Dollars (US$500,000) of the advance
shall be crossed against any overages payable to Cinergi in
Latin America;
2. TERRITORY: Spain, Spanish speaking Andora, The Balaeric and Canary Islands;
3. TERM: Nineteen (19) years from delivery (plus right of first
negotiation to extend the Term);
4. RIGHTS: All theatrical, non-theatrical, home video (including DVD, near
VOD), ship, hotel/motel, pay TV, free TV, pay-per-view and
video-on-demand rights. Airline and all other rights will be
retained by Cinergi;
5. BACK END TERMS:
a. THEATRICAL, NON-THEATRICAL: Twenty-five percent (25%) fee to Ptas.
One Hundred Fifty Million film rental, Twenty-seven and one-half
percent. (27.5%) fee from Ptas. One Hundred Fifty Million to Two
Hundred Fifty Million rental and thirty percent (30%) fee over Ptas.
Two Hundred Fifty Million for any and all film rentals actually
received.
b. The "out of pocket" sub-distribution fees which BVI actually pays to
Laurenfilm for Catalonia, shall be treated as an additional fee
hereunder.
c. VIDEO: Rental: 0-4,000 units -- Thirty percent (30%) royalty; 4,000 -
6,000 units -Thirty-two and one-half percent (32.5%) royalty; 6,000 -
8,000 units -- Thirty -five percent (35%) royalty and 8,000 + units
--Forty percent (40%) royalty. The above is on prospective basis.
Sell-through --We can accept a Fifteen percent (15%) royalty if the
picture is first released on rental. However, if BVI goes straight to
sell-through, the royalty should be Seventeen and one-half percent
(17.5%).
d. VIDEO-ON DEMAND: Thirty percent (30%) fee.
e. TELEVISION: Twenty-five percent (25%) fee.
Please acknowledge your acceptance of the terms and conditions of this deal
memorandum by signing in the space provided for below.
CINERGI PRODUCTIONS, N.V. INC.
BY:/s/ Xxxxxx Xxxxxxxxx
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ITS:Executive Vice President
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APPROVED AND ACCEPTED BY:
BUENA VISTA DISTRIBUTION
INTERNATIONAL INC.
By:/s/ Xxxxxxx X. Xxxxx
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Its:Senior Vice President
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