Document:

<PAGE>
                                                                    Exhibit 10.4

                                                                  EXECUTION COPY

                            STOCK PURCHASE AGREEMENT

                                      AMONG

                   SYMPHONY ACQUISITION VEHICLE, S.A. DE C.V.

                            CINEMEX ACQUISITION CORP.

           CONSOLIDATED PRESS HOLDINGS LIMITED (ACN 008 394 509)

                      HOYTS CINEMAS LTD. (ACN 066 234 900)

                          HOYTS EUROPEAN HOLDINGS, B.V.

                          HOYTS CINEMAS AMERICA LIMITED

                    STICHTING ADMINISTRATIEKANTOOR STRAWINSKY

                        HOYTS EMERGING TERRITORIES, LTD.

                   CINEMAS HOYTS DE MEXICO, S. DE R.L. DE C.V.

                                       AND

                           GRUPO CINEMEX, S.A. DE C.V.

                            DATED AS OF JUNE 19, 2002
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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                             Page
<S>                                                                          <C>
1.    Definitions...........................................................   2

2.    Purchase, Sale and Transfer of Shares; Closing........................  14
      2.1   PURCHASE AND SALE OF SHARES.....................................  14
      2.2   PURCHASE PRICE..................................................  14
      2.3   CLOSING.........................................................  14
      2.4   ESTIMATED NET ASSETS/LIABILITIES AND RECENT CAPITAL EXPENDITURES  14
      2.5   CLOSING OBLIGATIONS.............................................  14
      2.6   POST-CLOSING PRICE ADJUSTMENT...................................  15
      2.7   MANNER OF PAYMENT...............................................  17

3.    Representations and Warranties Relating to Mexico SRL.................  18
      3.1   ORGANIZATION....................................................  18
      3.2   AUTHORITY; NO CONFLICT..........................................  18
      3.3   CAPITALIZATION..................................................  19
      3.4   BOOKS AND RECORDS...............................................  20
      3.5   TITLE TO ASSETS.................................................  20
      3.6   NO LIABILITIES..................................................  20
      3.7   FINANCIAL STATEMENTS, ETC.......................................  21
      3.8   TAXES...........................................................  22
      3.9   COMPLIANCE WITH LEGAL REQUIREMENTS; GOVERNMENTAL AUTHORIZATIONS.  23
      3.10  LEGAL PROCEEDINGS; ORDERS.......................................  23
      3.11  CONTRACTS.......................................................  24
      3.12  GENERAL/HOLDING COMPANY.........................................  24
      3.13  BROKERS OR FINDERS..............................................  24
      3.14  CERTAIN PAYMENTS................................................  24

4.    Representations and Warranties and Certain Agreements of Shareholders.  25
      4.1   ORGANIZATION AND GOOD STANDING..................................  25
      4.2   AUTHORITY; NO CONFLICT..........................................  25
      4.3   LEGAL PROCEEDINGS; ORDERS.......................................  26
      4.4   TITLE TO SHARES.................................................  26
      4.5   RELATIONSHIPS WITH RELATED PERSONS..............................  26
      4.6   BROKERS OR FINDERS..............................................  27

5.    Representations and Warranties of Cinemex.............................  27

6.    Representations and Warranties of Buyers..............................  27
      6.1   ORGANIZATION AND GOOD STANDING..................................  27
      6.2   AUTHORITY; NO CONFLICT..........................................  27
      6.3   CERTAIN PROCEEDINGS.............................................  28
      6.4   BROKERS OR FINDERS..............................................  28
      6.5   AVAILABLE FUNDS.................................................  28
</TABLE>

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<TABLE>
<CAPTION>
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      6.6   NO ADDITIONAL REPRESENTATIONS...................................  28

7.    Covenants Prior to Closing Date.......................................  29
      7.1   ACCESS AND INVESTIGATION........................................  29
      7.2   OPERATION OF BUSINESS...........................................  29
      7.3   LOAN AGREEMENT..................................................  29
      7.4   Negative Covenants..............................................  30
      7.5   REQUIRED APPROVALS..............................................  30
      7.6   NOTIFICATION....................................................  31
      7.7   NO NEGOTIATION..................................................  31
      7.8   BEST EFFORTS....................................................  31

8.    Conditions Precedent to Buyers' Obligation to Close...................  31
      8.1   ACCURACY OF REPRESENTATIONS.....................................  32
      8.2   THE SHAREHOLDERS, MEXICO SRL'S AND CINEMEX'S PERFORMANCE........  32
      8.3   CONSENTS........................................................  32
      8.4   NO ORDER........................................................  33
      8.5   NO CLAIM REGARDING STOCK OWNERSHIP OR SALE PROCEEDS.............  33
      8.6   NO PROHIBITION..................................................  33
      8.7   OTHER CLOSINGS..................................................  33
      8.8   DIRECTORS/OFFICERS..............................................  33

9.    Conditions Precedent to Shareholders' Obligation to Close.............  33
      9.1   ACCURACY OF REPRESENTATIONS.....................................  33
      9.2   BUYERS' PERFORMANCE.............................................  34
      9.3   NO ORDER........................................................  34
      9.4   NO PROHIBITION..................................................  34
      9.5   LOAN AGREEMENT..................................................  34

10.   Termination...........................................................  34
      10.1  TERMINATION EVENTS..............................................  34
      10.2  EFFECT OF TERMINATION...........................................  35

11.   Indemnification; Remedies.............................................  35
      11.1  SURVIVAL; RIGHT TO INDEMNIFICATION NOT AFFECTED BY KNOWLEDGE....  35
      11.2  INDEMNIFICATION AND PAYMENT OF DAMAGES BY THE SHAREHOLDERS......  35
      11.3  INDEMNIFICATION AND PAYMENT OF DAMAGES BY BUYERS................  39
      11.4  TIME LIMITATIONS................................................  39
      11.5  LIMITATIONS ON AMOUNT - SHAREHOLDERS............................  40
      11.6  LIMITATIONS ON AMOUNT - BUYERS..................................  40
      11.7  PROCEDURE FOR INDEMNIFICATION - THIRD PARTY CLAIMS..............  40
      11.8  PROCEDURE FOR INDEMNIFICATION - OTHER CLAIMS....................  42
      11.9  ADDITIONAL PROVISIONS REGARDING TAX INDEMNIFICATION.............  42
      11.10 FILING OF THE CINEMEX COMPANIES' TAX RETURNS....................  45
      11.11 COOPERATION ON THE CINEMEX COMPANIES' TAX MATTERS...............  45
      11.12 ALLOCATION OF TAX LIABILITY FOR OVERLAP PERIODS.................  46
      11.13 CERTAIN MISCELLANEOUS TAX MATTERS...............................  46
</TABLE>

                                       ii
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      11.14 NOTICES AND DETERMINATION BY SHAREHOLDERS.......................  47
      11.15 FILING OF TAX MEXICO SRL RETURNS................................  47
      11.16 COOPERATION ON MEXICO SRL TAX MATTERS...........................  48
      11.17 USE OF COMMERCIALLY REASONABLE EFFORTS..........................  48
      11.18 . From and after the Closing Date, Cinemex shall, and
            Buyers shall cause the relevant Cinemex Companies to, use
            their commercially reasonable efforts to prevent the
            occurrence of any Disruption and/or the Santa Fe Event..........  48

12.   Other Post-Closing Matters............................................  48
      12.1  RELEASE AND DISCHARGE...........................................  48
      12.2  REDEMPTION......................................................  49
      12.3  SUCCESSORS......................................................  50
      12.4  NAME CHANGE.....................................................  50

13.   General Provisions....................................................  50
      13.1  EXPENSES........................................................  50
      13.2  PUBLIC ANNOUNCEMENTS............................................  50
      13.3  NOTICES.........................................................  50
      13.4  FURTHER ASSURANCES..............................................  53
      13.5  WAIVER..........................................................  53
      13.6  ENTIRE AGREEMENT AND MODIFICATION...............................  54
      13.7  SCHEDULES.......................................................  54
      13.8  ASSIGNMENTS, SUCCESSORS, AND NO THIRD-PARTY RIGHTS..............  54
      13.9  SEVERABILITY....................................................  55
      13.10 SECTION HEADINGS, CONSTRUCTION..................................  55
      13.11 GOVERNING LAW...................................................  55
      13.12 JURISDICTION....................................................  55
      13.13 COUNTERPARTS....................................................  55
</TABLE>

<TABLE>
<CAPTION>
Exhibits
<S>                             <C>
Exhibit 2.5(a)(iii)-A           Form of Opinion of Mexico counsel to Parents
Exhibit 2.5(a)(iii)-B           Form of Opinion of Australia counsel to Parents
Exhibit 2.5(a)(vii)             Powers of Attorney/Proxy Letters
Exhibit 7.3                     Form of Loan Agreement
Exhibit 11.2(c)                 Projected Cash Flow
Exhibit A                       Cinemex Recent Capital Expenditures
</TABLE>

<TABLE>
<CAPTION>
Schedules
<S>                             <C>
Schedule A                      Capitalization of Mexico SRL
Schedule B                      Cinemex Representations and Warranties
</TABLE>

<TABLE>
<CAPTION>
            Annexes
<S>                                  <C>
            Annex 5.1                Organization
            Annex 5.2                Authority; No Conflict
            Annex 5.3                Capitalization as of Immediately Prior to the Recapitalization
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                                      iii
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<TABLE>
<S>                                  <C>
            Annex 5.4                Recapitalization
            Annex 5.5                Current Capitalization
            Annex 5.6                Financial Statements
            Annex 5.7                Books and Records
            Annex 5.8                Title to Properties; Encumbrances
            Annex 5.9                Condition and Sufficiency of Assets; Recent Capital Expenditures
            Annex 5.10               Undisclosed Liabilities
            Annex 5.11               Taxes
            Annex 5.13               Employee Benefits
            Annex 5.14               Compliance with Mexican Legal Requirements; Mexican
                                     Governmental Authorizations
            Annex 5.15               Legal Proceedings; Orders
            Annex 5.16               Absence of Certain Changes and Events
            Annex 5.17               Contracts
            Annex 5.18               Insurance
            Annex 5.19               Environmental Matters
            Annex 5.20               Employees
            Annex 5.21               Labor Relations; Compliance
            Annex 5.22               Intellectual Property
            Annex 5.24               Relationships with Related Persons
</TABLE>

<TABLE>
<S>                     <C>
Schedule C              Shareholder Percentages
Schedule 3.7            Financial Statements - Mexico SRL
Schedule 3.8            Taxes
Schedule 6.2            Authority; No Conflict
</TABLE>

                                       iv

<PAGE>
                            STOCK PURCHASE AGREEMENT

      This STOCK PURCHASE AGREEMENT (this "Agreement") is made as of June 19,
2002, among Symphony Acquisition Vehicle, S.A. de C.V., a corporation organized
under the laws of Mexico ("MAV"), Cinemex Acquisition Corp., a corporation
organized under the laws of Delaware ("USAC" and collectively with MAV, the
"Buyers"), Consolidated Press Holdings Limited (ACN 008 394 509), a corporation
organized under the laws of Australia ("CPH"), Hoyts Cinemas Ltd. (ACN 066 234
900), a corporation organized under the laws of Australia ("HCL," collectively
with CPH, "Parents"), Hoyts European Holdings, B.V., a corporation organized
under the laws of the Netherlands ("NA"), Hoyts Cinemas America Limited, a
corporation organized under the laws of Barbados ("HAL"), Stichting
Administratiekantoor Strawinsky, a managing company organized under the laws of
the Netherlands ("Strawinsky"), Hoyts Emerging Territories, Ltd., a corporation
organized under the laws of Barbados ("Barbados"), Cinemas Hoyts de Mexico, S.
de R.L. de C.V., a corporation organized under the laws of Mexico ("Mexico
SRL"), and Grupo Cinemex, S.A. de C.V., a corporation organized under the laws
of Mexico ("Cinemex"), pursuant to the following recitals and clauses:

                                    RECITALS

      A. WHEREAS, at a General Extraordinary Shareholders Meeting of Cinemex
(the "General Shareholders Meeting") held on June 7, 2002, Cinemex's
shareholders approved the Recapitalization (as defined below) of Cinemex;

      B. WHEREAS, all steps of the Recapitalization were effected by Cinemex on
June 7, 2002;

      C. WHEREAS, simultaneously with the execution and delivery of this
Agreement, USAC has entered into that certain Stock Purchase Agreement (the
"Cinemex Purchase Agreement") among Cinemex LLC ("USLLC"), USAC, Cinemex,
Matthew D. Heyman, BBVA Bancomer, S.A., Institucion de Banca Multiple, Grupo
Financiero, BBVA Bancomer Division Fiduciaria, as Trustee (the "Concentration
Trustee") of the Irrevocable Trust Agreement No. F147016-1, dated as of June 13,
2002, among the Concentration Trustee, on its own behalf and on behalf of
certain of Cinemex's shareholders, and certain other shareholders of Cinemex,
pursuant to which it is contemplated that USLLC and USAC will purchase certain
shares of Series P Preferred Stock and Common Stock (each as defined below);

      D. WHEREAS, simultaneously with the execution and delivery of this
Agreement and the Cinemex Purchase Agreement, USLLC, USAC and MAV have entered
into that certain Inducement Agreement, dated, as of the date hereof, among
USLLC, USAC, MAV, Cinemex, Miguel Angel Davila Guzman and Adolfo Fastlicht
Kurian (the "Inducement Agreement") pursuant to which Messrs. Davila and
Fastlicht will, among other things, make representations and warranties to, and
agree to indemnify and reimburse, Buyers and USLLC with respect to certain
matters relating to Cinemex;

      E. WHEREAS, Mexico SRL's sole asset consists of the Cinemex Stock (as
defined below) and a receivable from The Hoyts Corporation Pty. Ltd. in the
aggregate amount of $34'182,225 pesos (the "Intercompany Receivable");
<PAGE>
      F. WHEREAS, NA, HAL and Strawinsky (the "Sellers"), collectively own the
Series A Interests (as defined below) and Series B Interests (as defined below)
set forth on Schedule A (collectively, the Series A Interests and Series B
Interests are referred to herein as the "Transferred Interests");

      G. WHEREAS, Barbados owns the Series P Interests (as defined below) set
forth opposite its name on Schedule A, which represent all of the issued and
outstanding Series P Interests and which will be redeemed on the first business
day immediately following the date on which the Closing (as defined below)
occurs (the "Retained Interests");

      H. WHEREAS, Sellers and Barbados collectively hold 100% of the issued and
outstanding equity interests in Mexico SRL;

      I. WHEREAS, Parents directly or indirectly own 100% of the issued and
outstanding shares of capital stock and other securities of Sellers (other than
Strawinsky) and Barbados;

      J. WHEREAS, in order to indirectly acquire the Cinemex Stock (as defined
below), Buyers have agreed to purchase from Sellers, and Sellers have agreed to
sell to Buyers, the Transferred Interests, and Barbados has agreed to engage in
the Redemption, upon the terms and subject to the conditions set forth in this
Agreement; and

      K. WHEREAS, Buyers desire to acquire the Cinemex Stock held by Mexico SRL.

      The parties, intending to be legally bound and based on the foregoing
recitals, hereby agree to grant the following:

                                     CLAUSES

1.    DEFINITIONS.

      For purposes of this Agreement, the following terms have the meanings
specified or referred to in this Section 1:

      "Accountants" shall mean Galaz, Gomez Morfin, Chavero, Yamazaki, S.C.

      "Adjustment Amount" shall mean the sum of Recent Capital Expenditures and
the Net Assets/Liabilities, minus the sum of Estimated Net Assets/Liabilities
and Estimated Recent Capital Expenditures.

      "Advisors" shall have the meaning set forth in Section 7.1.

      "Affected Theatre" shall have the meaning set forth in Section 11.2(c)(i).

      "Agreement" shall have the meaning set forth in the first paragraph of
this Agreement.

      "Barbados" shall have the meaning set forth in the first paragraph of this
Agreement.

                                       2
<PAGE>
      "Best Efforts" shall mean the efforts that a prudent Person desirous of
achieving a result would use in similar circumstances to attempt to achieve such
result as expeditiously as possible; provided, however, that an obligation to
use Best Efforts under this Agreement does not require the Person subject to
that obligation to take actions that would result in a materially adverse change
in the benefits to such Person of this Agreement and the Contemplated
Transactions or would require such Person to pay any consideration or otherwise
incur any liability or obligation except where such consideration, liability or
obligation is insubstantial and immaterial.

      "Breach" - a "Breach" of a representation, warranty, covenant, obligation,
or other provision of this Agreement or any instrument delivered pursuant to
this Agreement will be deemed to have occurred if there is or has been any
inaccuracy in or breach of, or any failure to perform or comply with, such
representation, warranty, covenant, obligation, or other provision, and the term
"Breach" means any such inaccuracy, breach or failure.

      "Buyer Indemnified Persons" shall have the meaning set forth in Section
11.2(a).

      "Buyers" shall have the meaning set forth in the first paragraph of this
Agreement.

      "Buyers Basket Amount" shall mean one and one-half percent (1.5%) of the
Equity Value.

      "Buyers Cap Amount" shall mean twenty-five percent (25%) of the Equity
Value.

      "Capitalized Lease Obligations" shall mean an obligation to pay rent or
other amounts under any lease of (or other arrangement conveying the right to
use) real and/or personal property which obligation is required to be classified
and accounted for as a capital lease on a balance sheet prepared in accordance
with GAAP, and for purposes hereof the amount of such obligation shall be the
capitalized amount thereof determined in accordance with GAAP.

      "Cinemex" shall have the meaning set forth in the first paragraph of this
Agreement.

      "Cinemex Companies" shall mean Cinemex and its Subsidiaries, collectively.

      "Cinemex Indebtedness" shall mean (i) all obligations of the Cinemex
Companies for borrowed money (including, without limitation, the principal
amount outstanding under the Non-Revolving Credit Agreement dated October 11,
2001 among Cadena Mexicana de Exhibicion, S.A. de C.V., BankBoston, N.A.,
General Electric Capital Corporation, Scotiabank Inverlat, S.A. and BBVA
Bancomer, S.A. (which, as of the Closing Date, shall be valued at the average of
the bid and ask peso/United States Dollar inter-bank exchange rate as agreed to
by Cinemex and Buyers on the Closing Date) and any unpaid fees, interest and
other amounts payable thereunder), (ii) all obligations of the Cinemex Companies
evidenced by bonds, debentures, notes or other similar instruments, (iii) all
obligations of the Cinemex Companies to pay the deferred purchase price of
property or services, except current trade accounts payable arising in the
Ordinary Course of Business, (iv) all of the Cinemex Companies' Capitalized
Lease Obligations, and (v) all obligations of the Cinemex Companies to reimburse
or repay any bank or other Person in respect of amounts paid or available to be
drawn under a letter of credit or banker's acceptance (each such obligation to
be valued at the face amount of such instrument).

                                       3
<PAGE>
      "Cinemex Purchase Agreement" shall have the meaning set forth in the
Recitals to this Agreement.

      "Cinemex Stock" shall mean the 1,137,963 shares of Series P Preferred
Stock owned beneficially and of record by Mexico SRL.

      "Closing" shall have the meaning set forth in Section 2.3.

      "Closing Balance Sheet" shall have the meaning set forth in Section
2.6(a).

      "Closing Cash Notional Payment" shall mean $2,750'000,000.00 pesos plus
the Estimated Net Assets/Liabilities (if a positive number) or minus the
absolute value of the Estimated Net Assets/Liabilities (if a negative number)
plus the Estimated Recent Capital Expenditures.

      "Closing Date" shall mean the date on which the Closing takes place.

      "CMEX" shall mean CMEX Investors, L.P.

      "Common Stock" shall mean Cinemex's "Series B" registered, common, with
full voting rights, non-par value shares.

      "Competing Business" shall have the meaning set forth in Section 5.24 of
Schedule B attached hereto.

      "Concentration Trustee" shall have the meaning set forth in the Recitals
to this Agreement.

      "Confidentiality Agreement" shall mean the letter agreement, dated May 13,
2002, among Onex Investment Corp., Oaktree Capital Management, Cinemex and the
other parties thereto.

      "Consent" shall mean any approval, consent, ratification, waiver or other
authorization (including any Governmental Authorization).

      "Contemplated Transactions" shall mean all of the transactions
contemplated by this Agreement and the Cinemex Purchase Agreement, and the
following:

            (a) the sale of the Transferred Interests by Sellers to Buyers (or
Buyers' designee) and the purchase by Buyers (or Buyers' designee) of the
Transferred Interests from Sellers;

            (b) Buyers', direct or indirect, acquisition and ownership of the
Transferred Interests and exercise of control over Mexico SRL;

            (c) the entering into the Loan Agreement in connection with the
Redemption and the consummation of the transactions contemplated thereby;

                                       4
<PAGE>
            (d) the Redemption, which shall occur on the first business day
immediately following the Closing;

            (e) the execution, delivery and performance of the Cinemex Purchase
Agreement and the documents and agreements contemplated thereby by the parties
thereto;

            (f) the execution, delivery and performance of the Inducement
Agreement and the documents and agreements contemplated thereby by the parties
thereto;

            (g) the Recapitalization; and

            (h) the performance by the parties hereto and the performance by the
parties to the Cinemex Purchase Agreement and the Inducement Agreement of their
respective covenants and obligations under each of this Agreement, the Cinemex
Purchase Agreement and the Inducement Agreement, respectively.

      "Contract" shall mean any agreement, contract, obligation, promise or
undertaking (whether written or oral and whether express or implied) that is
legally binding.

      "CPH" shall have the meaning set forth in the first paragraph of this
Agreement.

      "CPH Financial Report" shall have the meaning set forth in Section 3.7(b).

      "Damages" shall have the meaning set forth in Section 11.2(a).

      "Disruption" shall have the meaning set forth in Section 11.2(c)(i).

      "Encumbrance" shall mean any charge, claim, community property interest,
condition, lien, option, pledge, mortgage, guaranty trust, easement, security
interest, right of first refusal or restriction of any kind, including any
restriction on use, voting, transfer, receipt of income or exercise of any other
attribute of ownership.

      "Equity Value" shall mean the sum of $2,750'000,000.00 pesos plus the
Recent Capital Expenditures, plus the Net Assets/Liabilities (if a positive
number) or minus the absolute value of the Net Assets/Liabilities (if a negative
number).

      "ESOP" shall mean the Cinemex Employee Stock Option Plan.

      "ESOP Payment" shall have the meaning set forth in the definition of
"Recapitalization".

      "Estimated Net Assets/Liabilities" shall have the meaning set forth in
Section 2.4.

      "Estimated Recent Capital Expenditures" shall have the meaning set forth
in Section 2.4.

      "Existing Stockholders Agreement" shall have the meaning set forth in
Section 3.5.

      "Family" of an individual includes (i) the individual, (ii) the
individual's spouse and former spouses, (iii) any other natural person who is a
child or grandchild of such individual's grandparents and (iv) any other natural
person who regularly resides with such individual.

                                       5
<PAGE>
      "GAAP" shall mean (i) in the case of the Cinemex Companies, generally
accepted accounting principles in Mexico, (ii) in the case of Mexico SRL,
generally accepted accounting principles in Mexico and (iii) in the case of CPH,
generally accepted accounting principles of Australia, in each case applied on a
consistent basis.

      "General Shareholders Meeting" shall have the meaning set forth in the
Recitals to this Agreement.

      "Governmental Authorization" shall mean any approval, consent, license,
permit, waiver or other authorization issued, granted, given or otherwise made
available by or under the authority of any Governmental Body or pursuant to any
Legal Requirement.

      "Governmental Body" shall mean any:

            (a) nation, state, county, city, town, village, district or other
jurisdiction of any nature;

            (b) federal, state, local, municipal, foreign or other government;

            (c) governmental authority of any nature (including any governmental
agency, branch, department, official or entity, centralized or decentralized,
commission, government owned or controlled entities and any court or other
tribunal);

            (d) multi-national organization or body; or

            (e) body exercising, or entitled to exercise, any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or
power of any nature.

      "HAL" shall have the meaning set forth in the first paragraph of this
Agreement.

      "HCL" shall have the meaning set forth in the first paragraph of this
Agreement.

      "Hoyts Attributable Damages" shall mean, at any time, the product of (i)
the aggregate Damages for the matters described in Sections 11.2(a)(i),
11.2(a)(ii), 11.2(a)(iii), 11.2(a)(iv) or 11.2(a)(v) for which Buyers are
entitled to indemnification (without regard to Section 11.5) and (ii) the Hoyts
Percentage.

      "Hoyts Basket Amount" shall mean the product of (x) one and one-half
percent (1.5%) of the Equity Value and (y) the Hoyts Percentage.

      "Hoyts Cap Amount" shall mean the product of (x) twenty five percent (25%)
of the Equity Value and (y) the Hoyts Percentage.

      "Hoyts Percentage" shall mean 29.9350%.

      "HSR Act" shall mean the U.S. Hart-Scott-Rodino Antitrust Improvements Act
of 1976 or any successor law, and regulations and rules issued pursuant to that
Act or any successor law.

                                       6
<PAGE>
      "Inducement Agreement" shall have the meaning set forth in the Recitals to
this Agreement.

      "Indebtedness" shall mean (i) all obligations of Mexico SRL for borrowed
money, (ii) all obligations of Mexico SRL evidenced by bonds, debentures, notes
or other similar instruments, (iii) all obligations of Mexico SRL to pay the
deferred purchase price of property or services, (iv) all Capitalized Lease
Obligations of Mexico SRL, (v) all obligations of Mexico SRL to reimburse or
repay any bank or other Person in respect of amounts paid or available to be
drawn under a letter of credit or banker's acceptance (each such obligation to
be valued at the face amount of such instrument), and (vi) any guaranty or other
similar obligation to pay any Indebtedness or other obligation of another Person
or any other contingent obligation for money borrowed or otherwise in favor of
any Person (each such obligation to be valued at the maximum liability or
obligation thereunder).

      "Intercompany Receivable" shall have the meaning set forth in the Recitals
to this Agreement.

      "Interests" shall mean the Retained Interests and the Transferred
Interests, collectively.

      "JPM" shall mean JPMCC Belgium, SCA, and Sixty Wall Street Belgium, SCA,
collectively.

      "Knowledge" - an individual will be deemed to have "Knowledge" of a
particular fact or other matter if:

            (a) such individual is actually aware of such fact or other matter;
or

            (b) a prudent individual could be expected to discover or otherwise
become aware of such fact or other matter in the course of performance of such
individual's regular employment duties.

      A Person (other than an individual) will be deemed to have "Knowledge" of
a particular fact or other matter if any individual who is serving as a
director, officer, general partner, executor or trustee of such Person (or in
any similar capacity) has, or at any time prior to the Closing Date had,
Knowledge of such fact or other matter.

      "Legal Requirement" shall mean any federal, state, local, municipal,
foreign, international, multinational or other administrative order,
constitution, law, decree, ordinance, regulation, statute or treaty.

      "Lender" shall mean MAV.

      "Loan Agreement" shall have the meaning set forth in Section 7.3.

      "Loan Amount" shall have the meaning set forth in Section 7.3.

      "Major Disruption" shall have the meaning set forth in Section
11.2(c)(ii).

                                       7
<PAGE>
      "Management Trust Agreement" shall mean that certain Trust Agreement No.
F25234 dated as of March 24, 1995, among Cinemex, Miguel Angel Davila Guzman,
Adolfo Fastlicht Kurian, Matthew D. Heyman and BBVA Bancomer, S.A., Institucion
de Banca Multiple, Grupo Financiero, as trustee, as amended.

      "Material Adverse Effect" shall mean any events, changes or effects which,
individually or in the aggregate, would have a material adverse effect on the
business, operations, assets, financial condition or results of operations of
the Cinemex Companies, taken as a whole; provided, however, that in determining
whether there has been a Material Adverse Effect, any adverse effect principally
attributable to either of the following shall be disregarded: (i) general
political, economic, business, industry or financial market conditions; and (ii)
the taking of any action specifically required by this Agreement.

      "MAV" shall have the meaning set forth in the first paragraph to this
Agreement.

      "Mexican Governmental Authorization" shall mean any Governmental
Authorization issued, granted, given or otherwise made available by or under the
authority of any Mexican Governmental Body or pursuant to any Mexican Legal
Requirement.

      "Mexican Governmental Body" shall mean any:

            (a) Mexican federal, state, county, city, town, village, district or
other jurisdiction of any nature;

            (b) Mexican federal, state, local, municipal, or other government;

            (c) Mexican governmental authority of any nature (including any
governmental agency, branch, department, official or entity, centralized or
decentralized, commission, government owned or controlled entities and any court
or other tribunal);

            (d) multi-national organization or body of which Mexico is a party;
or

            (e) body exercising, or entitled to exercise, any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or
power of any nature in Mexico.

      "Mexican Legal Requirement" shall mean any administrative order,
constitution, law, decree, ordinance, regulation or statute enacted or
promulgated by any Mexican Governmental Body.

      "Mexico" shall mean the United Mexican States.

      "Mexico SRL" shall have the meaning set forth in the first paragraph of
this Agreement.

      "Mexico SRL Balance Sheet" shall have the meaning set forth in Section
3.7(a).

      "Minor Disruption" shall have the meaning set forth in Section 11.2(c).

      "NA" shall have the meaning set forth in the first paragraph to this
Agreement.

                                       8
<PAGE>
      "Net Assets/Liabilities" shall mean, with respect to the Cinemex
Companies, as of the close of business on the Closing Date (unless another date
is specified in this Agreement), (a) the sum of (i) current assets, (ii)
long-term employee receivables and (iii) long-term creditable value added taxes,
minus (b) all Cinemex Indebtedness and other current and deferred liabilities
(including without limitation, the amount of advance sales and any amounts
payable in respect of the expenses to be paid by Cinemex in accordance with
Section 11.1 of the Cinemex Purchase Agreement, unless such expenses are
satisfied prior to the date as of which Net Assets/Liabilities is being
determined), as shall be finally determined in accordance with Section 2.6. Net
Assets/Liabilities may be a positive or negative number and shall be in pesos.
For this purpose, there shall be taken into account $13'500,000 pesos in respect
of liability for deferred income taxes and no amount in respect of short-term or
long-term deferred income for advances by the Coca Cola Company. In determining
Net Assets/Liabilities, (i) any funds advanced by Buyers or their affiliates
(whether as loans, capital or similar contributions, amounts in respect of
future capital increases or otherwise) shall be disregarded, (ii) the amount of
the ESOP Payment shall, unless satisfied prior to the date as of which Net
Assets/Liabilities is being determined, be treated as a current liability and
(iii) the receivable from certain of the Cinemex's shareholders (in the amount
of $922,000 pesos as of May 31, 2002) shall be disregarded.

      "Net Assets/Liabilities Statement" shall have the meaning set forth in
Section 2.6(a).

      "Order" shall mean any award, decision, injunction, judgment, settlement,
order, ruling, subpoena or verdict entered, issued, made, or rendered by any
court, administrative agency or other Governmental Body or by any arbitrator.

      "Ordinary Course of Business" - an action taken by a Person will be deemed
to have been taken in the "Ordinary Course of Business" only if:

            (a) such action is consistent with the past practices of such Person
and is taken in the ordinary course of the normal day-to-day operations of such
Person;

            (b) such action is not required to be authorized by the board of
directors of such Person (or by any Person or group of Persons exercising
similar authority); and

            (c) such action is similar in nature and magnitude to actions
customarily taken, without any authorization by the board of directors (or by
any Person or group of Persons exercising similar authority), in the ordinary
course of the normal day-to-day operations of other Persons that are in the same
line of business, of comparable size in terms of revenue, and similarly
closely-held in terms of stock ownership, as such Person.

      "Organizational Documents" shall mean (a) the articles or certificate of
incorporation, the by-laws or code of regulations, shareholder resolutions and
transitory clauses of a corporation; (b) the partnership agreement and any
statement of partnership of a general partnership; (c) the limited partnership
agreement and the certificate of limited partnership of a limited partnership;
(d) the operating or limited liability company agreement and the certificate of
formation of a limited liability company; (e) any charter, joint venture
agreement or similar document adopted or filed in connection with the creation,
formation or organization of a Person; and (f) any amendment to any of the
foregoing.

                                       9
<PAGE>
      "Overlap Period" means any taxable period beginning on or before and
ending after the Closing Date.

      "Parents" shall have the meaning set forth in the first paragraph of this
Agreement.

      "Percentage" shall mean with respect to each Shareholder herein and the
Persons selling securities under the Cinemex Purchase Agreement and the other
Persons named on Schedule C, the percentage set forth opposite such Person's
name under the caption "Percentage" in Schedule C hereto.

      "Person" shall mean any individual, corporation (including any non-profit
corporation), general or limited partnership, limited liability company, joint
venture, estate, trust, association, organization, labor union, or other entity
or Governmental Body.

      "pesos" or "$" shall mean Mexican pesos, legal tender of Mexico (except
where otherwise specifically indicated to be United States dollars).

      "Post-Closing Adjustment Notice Date" shall have the meaning set forth in
Section 2.6.

      "Post-Closing Representative" shall have the meaning set forth in Section
2.6.

      "Post-Closing Tax Period" means (i) any taxable period beginning after the
Closing Date and (ii) the portion of any Overlap Period beginning immediately
after the Closing Date and ending on the close of business of the last day of
such Overlap Period.

      "Pre-Closing Tax Period" means (i) any taxable period ending on or before
the close of business of the Closing Date and (ii) the portion of any Overlap
Period beginning on the first day of such Overlap Period and ending on the close
of business of the Closing Date.

      "Pre-Closing Taxes" shall mean the Taxes attributable to any Pre-Closing
Tax Period.

      "Proceeding" shall mean any action, arbitration, audit, hearing,
investigation, litigation or suit (whether civil, criminal, commercial, labor,
tax, administrative, investigative or informal) commenced, brought, conducted or
heard by or before, or otherwise involving, any Governmental Body, arbitrator or
other tribunal.

      "Projected Cash Flow" shall have the meaning set forth in Section
11.2(c)(ii).

      "Protest Notice" shall have the meaning set forth in Section 2.6(b).

      "Reallocated Matter" shall have the meaning set forth in Section 11.14.

      "Recapitalization" consists of each of the following steps: (i) conversion
of each share of Common Stock held by each Person who is a Series P Shareholder
immediately prior to the Recapitalization into one share of Series P Preferred
Stock; (ii) conversion of each share of Common Stock held by each of Adolfo
Fastlicht Kurian and Miguel Angel Davila Guzman immediately prior to the
Recapitalization into one share of Series PRD Preferred Stock; (iii)
cancellation of each share of Common Stock issued and held immediately prior to
the

                                       10
<PAGE>
Recapitalization in the treasury of Cinemex and or reserved for subscription
under the ESOP in exchange for the payment of $50'251,608.84 pesos in the
aggregate (the "ESOP Payment"); (iv) cancellation of all shares of Common Stock
held immediately prior to the time of the Recapitalization in treasury of
Cinemex pending subscription; (v) termination of the Management Trust Agreement
and the Existing Stockholders Agreement; and (vi) amendment of Cinemex's bylaws
to, among other things, eliminate any rights of first refusal, all other
restrictions on transfer of shares of Cinemex's capital stock and all minority
rights contained therein.

      "Recent Capital Expenditures" shall mean the aggregate amount of capital
expenditures made by the Cinemex Companies subsequent to April 1, 2002 and
through and including the Closing Date in the projects identified on Annex 5.9
to Schedule B to this Agreement, solely to the extent that the cumulative total
amount expended on such projects by the Cinemex Companies exceeds $74'500,000.00
pesos, as shall be determined in accordance with Section 2.6.

      "Redemption" shall have the meaning set forth in Section 12.2.

      "Redemption Price" shall have the meaning set forth in Section 12.2.

      "Refund Threshold" shall mean, at any time, 0.5% of the Equity Value,
reduced by amounts of refunds of Pre-Closing Taxes previously received by any
Cinemex Company and retained by it pursuant to the application of clause (ii) of
Section 11.9(a).

      "Related Person" shall mean, with respect to a particular individual:

            (a) each other member of such individual's Family;

            (b) any Person that is directly or indirectly controlled by such
individual or one or more members of such individual's Family;

            (c) any Person in which such individual or members of such
individual's Family hold (individually or in the aggregate) a Material Interest;
and

            (d) any Person with respect to which such individual or one or more
members of such individual's Family serves as a director, officer, partner,
executor or trustee (or in a similar capacity).

With respect to a specified Person other than an individual:

            (a) any Person that directly or indirectly controls, is directly or
indirectly controlled by, or is directly or indirectly under common control with
such specified Person;

            (b) any Person that holds a Material Interest in such specified
Person;

            (c) each Person that serves as a director, officer, partner,
executor or trustee of such specified Person (or in a similar capacity);

                                       11
<PAGE>
            (d) any Person in which such specified Person holds a Material
Interest;

            (e) any Person with respect to which such specified Person serves as
a general partner or a trustee (or in a similar capacity); and

            (f) any Related Person of any individual described in clause (b) or
(c).

            For purposes of this definition "Material Interest" shall mean
direct or indirect beneficial ownership of voting securities or other voting
interests representing at least 5% of the outstanding voting power of a Person
or equity securities or other equity interests representing at least 5% of the
outstanding shares or equity interests in a Person.

            For purposes of this definition "control" shall mean possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of a Person, whether through the ownership of voting
securities, by contract or otherwise.

      "Releasee" and "Releasees" shall have the meaning set forth in Section
12.1.

      "Representative" shall mean, with respect to a particular Person, any
director, officer, employee, agent, consultant, advisor or other representative
of such Person, including legal counsel, accountants and financial advisors.

      "Required Shareholders" shall have the meaning set forth in Section 2.6.

      "Retained Interests" shall have the meaning set forth in the Recitals to
this Agreement.

      "Santa Fe Event" shall have the meaning set forth in Section 11.2(d)(i).

      "Selected Counsel" shall mean Chevez, Ruiz, Zamarripa y Cia, S.C. or, if
that firm is unavailable, a law firm of comparable reputation and stature
selected by Buyers and the Shareholders (acting in the manner provided in
Section 11.14).

      "Sellers" shall have the meaning set forth in the Recitals to this
Agreement.

      "Series A Interests" shall mean Mexico SRL's Series A common voting
interests.

      "Series B Interests" shall mean Mexico SRL's Series B common voting
interests.

      "Series P Interests" shall mean Mexico SRL's redeemable, preferred,
cumulative interests.

      "Series P Shareholders" shall mean all the Persons listed on Schedule C
except for the Shareholders, Adolfo Fastlicht Kurian, Miguel Angel Davila Guzman
and Matthew D. Heyman.

      "Series P Preferred Stock" shall mean Cinemex's registered, preferred,
Series "P" non par value shares.

      "Series PRD Preferred Stock" shall mean Cinemex's registered, preferred,
with right to special dividend, redeemable, callable, Series "PRD" non-par value
shares.

                                       12
<PAGE>
      "Shareholders" shall mean each of the Sellers, Barbados and each of the
Parents.

      "Shareholder Indemnified Persons" shall have the meaning set forth in
Section 11.3.

      "Strawinsky" shall have the meaning set forth in the first paragraph of
this Agreement.

      "Subsidiary" shall mean, with respect to any Person (the "Owner"), any
corporation or other Person of which securities or other interests having the
power to elect a majority of that corporation's or other Person's board of
directors or similar governing body, or otherwise having the power to direct the
business and policies of that corporation or other Person (other than securities
or other interests having such power only upon the happening of a contingency
that has not occurred) are held by the Owner or one or more of its Subsidiaries.

      "Tax" shall mean any tax or contribution (including any income, transfer,
capital gains, value-added, sales, property, gift, estate, excise, employment,
severance, stamp, occupation, premium, windfall profits, capital stock,
franchise, withholding, social security, housing fund, savings retirement funds,
profit sharing, unemployment, disability, use, registration, alternative minimum
or add-on minimum, estimated or other tax of any kind whatsoever), levy,
assessment, tariff, duty (including any customs duty), rights (including
utilities) deficiency or other fee, and any related charge or amount (including
any fine, penalty, interest or addition to tax), imposed, assessed or collected
by or under the authority of any Governmental Body or payable pursuant to any
tax-sharing agreement or any other Contract relating to the sharing or payment
of or indemnification for or against payment of any such tax, levy, assessment,
tariff, duty, deficiency or fee.

      "Tax Contest" shall have the meaning set forth in Section 11.9(d)(i).

      "Tax Return" shall mean any return (including any information return),
report (including by authorized external accountant), statement, schedule,
notice, form or other document or information filed with or submitted to, or
required to be filed with or submitted to, any Governmental Body in connection
with the determination, assessment, collection or payment of any Tax or in
connection with the administration, implementation or enforcement of or
compliance with any Legal Requirement relating to any Tax, including any
amendment thereof.

      "Threatened" - a claim, Proceeding, dispute, action or other matter will
be deemed to have been "Threatened" if any demand or statement has been made in
writing or any notice has been given in writing, that would lead a prudent
Person to conclude that such a claim, Proceeding, dispute, action or other
matter is reasonably likely to be asserted, commenced, taken or otherwise
pursued in the future.

      "Transfer Tax" shall mean any sale, use, transfer, excise or similar Tax
imposed on any transfer of stock or other securities (including, without
limitation, the Transferred Interests) that is consummated as part of the
Contemplated Transactions (including, without limitation, each of the
Contemplated Transactions and the transfer of the Retained Interests in
connection with the Redemption, which shall occur immediately after the
closing). Transfer Tax shall not include any income or gross receipts Tax
imposed on any Shareholder, whether directly or through a withholding mechanism.

                                       13
<PAGE>
      "Transferred Interests" shall have the meaning set forth in the Recitals
to this Agreement.

      "United States" shall mean the United States of America, including the
commonwealths, territories and possessions thereof.

      "USAC" shall have the meaning set forth in the first paragraph of this
Agreement.

      "USLLC" shall have the meaning set forth in the Recitals to this
Agreement.

2.    PURCHASE, SALE AND TRANSFER OF SHARES; CLOSING.

      2.1 PURCHASE AND SALE OF SHARES. Subject to the satisfaction of the
conditions to each party's obligations set forth in Sections 8 and 9 (or, with
respect to any condition not satisfied, the waiver thereof by the party or
parties for whose benefit the condition exists), at the Closing, (a) Sellers
(other than Strawinsky), shall sell, transfer and deliver to MAV, and MAV shall
purchase and acquire from Sellers (other than Strawinsky) the Transferred
Interests (other than those of Strawinsky), free and clear of all Encumbrances
(other than those created or placed thereon by the Buyers), and (b) Strawinsky
shall sell, transfer and deliver to USAC, and USAC shall purchase and acquire
from Strawinsky, the Transferred Interests of Strawinsky, free and clear of all
Encumbrances (other than those created or placed thereon by the Buyers).

      2.2 PURCHASE PRICE. The purchase price for the Transferred Interests shall
equal (x) the product of the Equity Value and the Hoyts Percentage minus (y) the
Loan Amount.

      2.3 CLOSING. The purchase and sale provided for in this Agreement (the
"Closing") shall take place at the offices of Franck, Galicia y Robles, S.C.,
at 10:00 a.m. (local time) on June 19, 2002 or at such other time and place as
the parties may agree.

      2.4 ESTIMATED NET ASSETS/LIABILITIES AND RECENT CAPITAL EXPENDITURES.
Cinemex has prepared and delivered to Buyers a statement setting forth its good
faith estimate of the Net Assets/Liabilities as of May 31, 2002, minus estimated
legal expenses through the Closing of $9'685,000 pesos (the "Estimated Net
Assets/Liabilities"), which amount is $(634'892,058) pesos and its good faith
estimate of Recent Capital Expenditures through the Closing Date (the "Estimated
Recent Capital Expenditures") which amount is $52'975,537.51 pesos. For the
avoidance of doubt, the reference in the preceding sentence to $(634'892,058)
pesos is to a negative number.

      2.5 CLOSING OBLIGATIONS. At the Closing:

            (a) Buyers shall receive:

                  (i) Intentionally omitted.

                  (ii) a certified copy by the Secretary of the board of
      managers of Mexico SRL of the stock registry book of Mexico SRL,
      reflecting the transfer of the Transferred Interests, and the recordation
      of Buyers, or Buyers' designee, as holders of the Transferred Interests on
      the books and records of or pertaining to Mexico SRL, and all of the books
      and records of or pertaining to Mexico SRL;

                                       14
<PAGE>
                  (iii) an opinion of Minter Ellison, dated the Closing Date,
      Australian counsel to Parents, in the form of Exhibit 2.5(a)(iii)-A and an
      opinion of Basham, Ringe y Correa, S.C., dated the Closing Date, Mexican
      counsel to Parents, in the form of Exhibit 2.5(a)(iii)-B;

                  (iv) certificates executed by Mexico SRL, each Parent, each
      Seller and Barbados as to the accuracy of the representations and
      warranties as provided in Section 8.1(a) and as to compliance with the
      covenants as provided in Section 8.2(a);

                  (v) a certificate executed by Cinemex as to the accuracy of
      the representations and warranties as provided in Section 8.1(b) and as to
      compliance with the covenants as provided in 8.2(b);

                  (vi) certificates of the Secretary of the Board of Directors
      of Mexico SRL, each Parent, each Seller, Barbados, and each Cinemex
      Company as to the legal existence of each in their respective
      jurisdictions of incorporation or organization; and

                  (vii) a duly executed power of attorney letter (proxy letter)
      from Barbados relating to the Retained Interests in the form of Exhibit
      2.5(a)(vii).

            (b) Buyers (or their designees) will:

                  (i) pay to Sellers an aggregate amount equal to (x) the
      product of (A) the Hoyts Percentage and (B) the Closing Cash Notional
      Payment, minus (y) the Loan Amount;

                  (ii) deliver to Sellers and Barbados a copy of the Loan
      Agreement executed by Mexico SRL;

                  (iii) deliver to Sellers and Barbados a certificate executed
      by each Buyer as to the accuracy of the representations and warranties as
      provided in Section 9.1 and as to performance of the covenants as provided
      in Section 9.2; and

                  (iv) deliver to Sellers and Barbados, in the case of MAV, a
      certificate of the Secretary (or other Person) of MAV as to the legal
      existence of MAV in Mexico, and in the case of USAC, a certificate of good
      standing issued by the Delaware Secretary of State as of a recent date.

      2.6 POST-CLOSING PRICE ADJUSTMENT.

            (a) Not later than thirty (30) days after the Closing Date, Buyers
shall prepare and deliver to the Shareholders a balance sheet of the Cinemex
Companies as of the close of business on the Closing Date (the "Closing Balance
Sheet") which shall be prepared in accordance with GAAP and consistent with
Cinemex's past practices. Simultaneously with the delivery of the Closing
Balance Sheet, Buyers shall also prepare and deliver to the Shareholders a
statement (the "Net Assets/Liabilities Statement") setting forth Buyers'
calculation of the Net Assets/Liabilities derived from the Closing Balance Sheet
and of Recent Capital Expenditures. The Post-Closing Representative (as defined
below) and any attorneys, accountants and other

                                       15
<PAGE>
representatives retained by the Post-Closing Representative will be given
reasonable access to the Cinemex Companies' books and records and work papers
during reasonable business hours for purposes of evaluating the Net
Assets/Liabilities Statement and Buyers' calculation of Recent Capital
Expenditures and confirming their accuracy.

            (b) Within thirty (30) business days after Buyers' delivery of the
Net Assets/Liabilities Statement (the date of such delivery, the "Post-Closing
Adjustment Notice Date"), the Post-Closing Representative may deliver written
notice (the "Protest Notice") to Buyers of any objections, and the basis
therefor, which Shareholders may have to the Net Assets/Liabilities Statement
and to Buyers' calculation of Recent Capital Expenditures. The failure of the
Post-Closing Representative to deliver such Protest Notice within the prescribed
time period will constitute the Shareholders' acceptance of the Net
Assets/Liabilities Statement and to Buyers' calculation of Recent Capital
Expenditures for purposes of determining the Adjustment Amount hereunder.

            (c) If Buyers and the Post-Closing Representative are unable to
resolve any disagreement with respect to the Net Assets/Liabilities Statement or
Buyers' calculation of Recent Capital Expenditures within twenty (20) days
following the receipt of the Protest Notice, then the items in dispute will be
referred to the Accountants for final determination within forty-five (45) days,
which determination shall be final and binding on Buyers and the Shareholders.
Buyers, on the one hand, and the Shareholders, on the other hand, shall each
bear one-half of the product of (i) the fees and expenses of the Accountants and
(ii) the Hoyts Percentage.

            (d) If, following final determination of the Net Assets/Liabilities
and the calculation of Recent Capital Expenditures in accordance with this
Section 2.6, the Adjustment Amount is positive, then Buyers (or their designees)
shall promptly pay to Sellers an amount in cash equal to the product of (x) the
Adjustment Amount and (y) the Hoyts Percentage.

            (e) If, following final determination of the Net Assets/Liabilities
and the calculation of Recent Capital Expenditures in accordance with this
Section 2.6, the Adjustment Amount is negative, then the Shareholders, jointly
and severally, shall promptly pay to Buyers an amount equal to the product of
(x) the Adjustment Amount and (y) the Hoyts Percentage.

            (f) The "Post-Closing Representative" shall mean Person appointed by
JPM, the Shareholders, CMEX and two of Miguel Angel Davila Guzman, Adolpho
Fastlicht Kurian and Matthew D. Heyman (or in the event that any of such
individuals shall have died or become disabled, such individual's duly appointed
Representative(s)) (collectively, the "Required Shareholders") and designated as
such in a written notice by the Required Shareholders. In the event that Buyers
shall not have received such notice on or prior to the Post-Closing Adjustment
Notice Date, the Post-Closing Representative shall be Matthew D. Heyman.

            (g) If the Post-Closing Representative dies, becomes incapacitated
so that he is unable to perform his responsibilities hereunder or resigns from
such position or is removed by the Required Shareholders, then the Required
Shareholders shall designate a Person to act as successor within 10 days after
such death, incapacity, resignation or removal, and notify Cinemex and the
Buyers in writing of such replacement within 10 days after the designation of

                                       16
<PAGE>
such Person. In the event that Buyers shall not have received such notice within
such 10 day period, the Post-Closing Representative shall be selected by the
Accountants.

            (h) Each of the Buyers, Cinemex and Mexico SRL shall be entitled to
rely conclusively and exclusively upon the notices, instructions, waivers and
consents given by or of the Post-Closing Representative, as to any matter
described in Section 2.6, as being the binding acts of the Shareholders and may
disregard any notice or instructions of any Shareholder with respect thereto. No
party hereto shall have any cause of action against either Buyer, Cinemex or
Mexico SRL for any action taken by either Buyer or Cinemex or Mexico SRL in
reliance upon the notices, instructions, waivers, consents or decisions of the
Post-Closing Representative.

            (i) The Post-Closing Representative and each successor Post-Closing
Representative (A) shall not incur any personal liability for acting in such
capacity if in doing so he acts upon advice of counsel or otherwise acts in good
faith, (B) shall not incur any personal liability for acting in such capacity in
the absence of any gross negligence or willful misconduct by the Post-Closing
Representative, (C) may act upon any instrument or signature believed by the
Post-Closing Representative to be genuine and may assume that any Person
purporting to give any notice or instruction hereunder or under any other
related document, certificate, instrument or agreement believed by the
Post-Closing Representative to be authorized has been authorized to do so, and
(D) shall be promptly reimbursed by the Shareholders for actions taken by the
Post-Closing Representative in accordance with his duties hereunder.

            (j) The Shareholders jointly and severally will indemnify and hold
harmless the Post-Closing Representative for, and will pay to the Post-Closing
Representative the amount of the Hoyts Percentage of any Damages arising,
directly or indirectly, from or in connection with any undertaking, act or
omission (or alleged act or omission) of the Post-Closing Representative in
accordance with this Section 2.6 of this Agreement.

            (k) The provisions of this Section 2.6 are independent and
severable, are irrevocable and coupled with an interest, and shall be
enforceable notwithstanding any rights or remedies that any Shareholder may have
in connection with this Agreement or any of the Contemplated Transactions.

            (l) The provisions of this Section 2.6 shall be binding upon the
executors, heirs, legal representatives, successors and assigns of each of the
Shareholders, and any references in this Agreement to a Shareholder shall mean
and include the successors to the rights of each such Shareholder.

            (m) The Post-Closing Representative under this Agreement shall
always be the same Person as the post-closing representative under the Cinemex
Purchase Agreement and under the Inducement Agreement, and each action taken by
the Post-Closing Representative under this Agreement shall be consistent with
the actions taken by the post-closing representative under the Cinemex Purchase
Agreement and under the Inducement Agreement.

      2.7 MANNER OF PAYMENT. All payments under this Section 2 shall be made in
the form of certified or bank cashier's check payable to the order of the
recipient or, at the

                                       17
<PAGE>
recipient's option, by wire transfer of immediately available funds to an
account designated by the recipient not less then forty-eight (48) hours prior
to the time for such payment.

3.    REPRESENTATIONS AND WARRANTIES RELATING TO MEXICO SRL.

      Each Parent, each Seller, and Mexico SRL, jointly and severally, represent
and warrant to, and agree in favor of, Buyers as follows:

      3.1 ORGANIZATION.

            (a) Mexico SRL is a corporation duly organized and validly existing
under the laws of Mexico, with full corporate power and authority to conduct its
business as it is now being conducted, to own or use the properties and assets
that it purports to own or use and to perform all of its obligations under all
of the Contracts it is a party to or by which its assets or properties are
bound.

            (b) On the date hereof, Mexico SRL has delivered to Buyers true and
complete copies of its Organizational Documents as currently in effect; these
Organizational Documents have not been amended, altered or modified.

      3.2 AUTHORITY; NO CONFLICT.

            (a) The execution, delivery and performance of this Agreement and
the Contemplated Transactions have been duly authorized by all necessary action
on the part of Mexico SRL. This Agreement constitutes the legal, valid and
binding obligation of Mexico SRL, enforceable against Mexico SRL in accordance
with its terms. Mexico SRL has the absolute and unrestricted right, power and
authority to execute and deliver this Agreement and to perform its obligations
hereunder.

            (b) Neither the execution and delivery of this Agreement by Mexico
SRL nor the consummation or performance of any of the Contemplated Transactions
by Mexico SRL will, directly or indirectly (with or without notice or lapse of
time):

                  (i) contravene, conflict with, or result in a violation of (1)
      any provision of the Organizational Documents of Mexico SRL, or (2) any
      resolution adopted by the board of directors (or similar governing body)
      or the stockholders of Mexico SRL;

                  (ii) contravene, conflict with, or result in a violation of,
      or give any Governmental Body or other Person the right to challenge any
      of the Contemplated Transactions or to exercise any remedy or obtain any
      relief under, any Legal Requirement or any Order to which Mexico SRL, any
      Cinemex Company or the Cinemex Stock may be subject;

                  (iii) contravene, conflict with, or result in a violation of
      any of the terms or requirements of, or give any Governmental Body the
      right to revoke, withdraw, suspend, cancel, terminate or modify, any
      Governmental Authorization that is held by Mexico SRL, any Cinemex Company
      or that otherwise relates to the Cinemex Stock;

                                       18
<PAGE>
                  (iv) cause Buyers, any Cinemex Company or Mexico SRL to become
      subject to, or to become liable for the payment of, any Tax;

                  (v) cause the Cinemex Stock or any Cinemex Company to be
      reassessed or revalued by any taxing authority or other Governmental Body;

                  (vi) contravene, conflict with or result in a violation or
      breach of any provision of, or give any Person the right to declare a
      default or exercise any remedy under, or to accelerate the maturity or
      performance of, or to cancel, terminate or modify, any Contract to which
      Mexico SRL, any Cinemex Company, or any Shareholder is a party or by which
      any of their respective properties or assets may be bound; or

                  (vii) result in the imposition or creation of any Encumbrance
      upon or with respect to the Cinemex Stock, Mexico SRL or any Cinemex
      Company.

      Mexico SRL is not or will not be required to give any notice to or obtain
any Consent from any Person in connection with the execution and delivery of
this Agreement or the consummation or performance of the Contemplated
Transactions, other than a filing with the Mexican Federal Economic Competition
Commission (which has been made).

      3.3 CAPITALIZATION. On the date hereof and at all times through the
Closing, the authorized equity interests and other securities in Mexico SRL
consist of 1 partnership interest with a par value of $3'818,000 pesos
(corresponding to $49,800 pesos Series A and $3'768,200 pesos Series B), 1
partnership interest with a par value of $3,900 pesos (corresponding to $100
pesos Series A, and $3,800 pesos Series B), 1 partnership interest with a par
value of $100 pesos (all corresponding to Series A) and 1 partnership interest
with a par value of $195'841,953 pesos (all corresponding to Series P), all of
which are issued and outstanding. No securities (including, without limitation,
equity securities or capital stock) of Mexico SRL are issued, outstanding or
authorized other than as described in the immediately preceding sentence. Each
Seller and Barbados is, and will be as of the Closing, the record and beneficial
owner and holder of the Interests set forth opposite such Seller's and Barbados'
name on Schedule A, free and clear of all Encumbrances. Sellers and Barbados
own, in the aggregate, all of the issued and outstanding Interests of Mexico
SRL, free and clear of all Encumbrances (in the amounts indicated on Schedule
A). No legend or other reference to any purported Encumbrance appears upon any
certificate representing any Interest. All of the Interests have been duly
authorized and validly issued and are fully paid and nonassessable. There are no
Contracts relating to the issuance, sale or transfer of any Interests or any
other securities (including equity securities) of Mexico SRL. There are no
outstanding Contracts (including, without limitation, those to which Mexico SRL
is a party) to repurchase, redeem or otherwise acquire any Interests or other
securities (including equity securities) of Mexico SRL other than the Retained
Interests which shall be redeemed on the business day immediately following the
Closing Date in accordance with Section 12.2 of this Agreement. There are no,
and as of the Closing there will be no, options, warrants, convertible
securities or rights that are or may become exercisable or exchangeable for,
convertible into, or that otherwise give the holder any right to acquire
Interests or other securities (including equity securities) of Mexico SRL or to
receive payments based in whole or in part upon the value of the Interests or
other securities (including equity securities) of Mexico SRL, whether pursuant
to a phantom stock plan or otherwise. No Interest, equity security or other
security of Mexico SRL

                                       19
<PAGE>
has ever been issued by Mexico SRL in violation of any Legal Requirement. Other
than the Cinemex Stock, Mexico SRL does not own, or have any Contract or other
right to acquire, any equity securities or other securities of any Person or any
direct or indirect equity or ownership interest in any other business or Person.

      3.4 BOOKS AND RECORDS. The books of account, minute books, stock registry
book, capital variations books and other records of Mexico SRL, all of which
have been delivered to Buyers, (i) are complete and correct in all respects,
(ii) accurately and fairly reflect the transactions and dispositions of the
assets of Mexico SRL, and (iii) have been maintained in accordance with sound
business practices. The minute books of Mexico SRL contain accurate and complete
records of all meetings held of, and corporate action taken by, the
stockholders, the boards of directors (or similar governing bodies) and
committees of the boards of directors (or similar governing bodies) of Mexico
SRL, and no meeting of any such stockholders, board of directors (or similar
governing body) or committee has been held for which minutes have not been
prepared and are not contained in such minute books. At the Closing, all of
those books and records will be delivered to Buyers.

      3.5 TITLE TO ASSETS. Mexico SRL is, as of the date hereof, and will be at
the time of the Closing, the sole record and beneficial owner of the Cinemex
Stock, free and clear of all Encumbrances, other than those arising under the
Amended and Restated Stockholders Agreement, dated May 29, 1997, among JP Morgan
International Capital Corp., CMEX, Mexico SRL and certain other parties (the
"Existing Stockholders' Agreement"), which shall be terminated at or prior to
the time of the Closing as part of the Recapitalization. No legend or other
reference to any purported Encumbrance appears on any certificate or instrument
representing the Cinemex Stock (other than those contemplated by the Existing
Stockholders' Agreement which shall be terminated at or prior to the time of the
Closing as part of the Recapitalization and which will have been removed on or
prior to the Closing Date) nor in the registry books of Cinemex. The Cinemex
Stock has been duly authorized and validly issued and is fully paid and
nonassessable. Mexico SRL is not a party to any Contract relating to the
issuance, sale, or transfer or voting of (or any other matter affecting) any of
the Cinemex Stock, other than the Existing Stockholders' Agreement, which shall
be terminated at or prior to the time of Closing. No Person has any right to
redeem, purchase or otherwise acquire the Cinemex Stock or any part thereof and
none of the Cinemex Stock was issued in violation of any Legal Requirement.
Mexico SRL owns no assets or properties other than the Cinemex Stock.

      3.6 NO LIABILITIES. Mexico SRL does not have any liabilities or
obligations of any nature (whether known or unknown and whether absolute,
accrued, contingent or otherwise), including, without limitation, liabilities or
obligations relating to any environmental or health and/or occupational safety
matter or owing to any Related Person, other than pursuant to the Loan
Agreement.

                                       20
<PAGE>
      3.7 FINANCIAL STATEMENTS, ETC.

            (a) Annexed to Schedule 3.7(a) to this Agreement are: (a) balance
sheets of Mexico SRL as at December 31 in each of the years 1995 through 1999,
and the related statements of income for each of the fiscal years then ended,
(b) balance sheets of Mexico SRL as of December 31, 2000, the related statements
of income, changes in partnership equity, and changes in the financial position
for the fiscal year then ended, together with a report thereon of the statutory
auditor, (c) a balance sheet of Mexico SRL as at December 31, 2001 (including
the notes thereto, the "Mexico SRL Balance Sheet"), and the related statements
of income, changes in partners' equity, and changes in financial position for
the fiscal year then ended, together with the report thereon of the statutory
auditor and (d) an unaudited balance sheet of Mexico SRL as at March 31, 2002
and the related unaudited statements of income for the three months then ended,
including in each case the notes thereof. Such financial statements and notes
fairly present the financial condition and the results of operations, changes in
partners' equity, and changes in financial position, of Mexico SRL as at the
respective dates of and for the periods referred to in such financial
statements, all in accordance with GAAP, subject, in the case of interim
financial statements, to normal recurring year-end adjustments (the effect of
which will not, individually or in the aggregate, be materially adverse) and the
absence of notes (that, if presented, would not differ materially from those
included in the Mexico SRL Balance Sheet); the financial statements referred to
in this Section 3.7(a) reflect the consistent application of such accounting
principles throughout the periods involved, except as disclosed in the notes to
such financial statements. No financial statements of any Person other than
Mexico SRL are required by GAAP to be included in the financial statements of
Mexico SRL. Since the date of the Mexico SRL Balance Sheet, there has not been
any material adverse change in the business, operations, properties, assets or
condition of Mexico SRL, and no event or circumstance has occurred or
circumstance exists that may result in such a material adverse change.

            (b) Annexed as Schedule 3.7(b) to this Agreement is (i) the audited
financial report for the year ended June 30, 2001 of CPH, which is filed as part
of the Annual Report for fiscal year 2001 of CPH. This financial report is
comprised of the Statement of Financial Performance, Statement of Financial
Position, Statement of Cash Flows and Notes to or forming part of the accounts
and the Directors Declaration, together with the report thereon of Ernst &
Young, independent certified public accountants, (including the notes thereof,
the "CPH Financial Report") and (ii) a Statement of Financial Position of CPH as
at June 30, 2001. Such financial statements and notes fairly present the
financial condition and the results of operations, changes in stockholders'
equity, and cash flow of CPH as at the respective dates of and for the periods
referred to in such financial statements, all in accordance with GAAP, subject,
in the case of interim financial statements, to normal recurring year-end
adjustments (the effect of which will not, individually or in the aggregate, be
materially adverse) and the absence of notes (that, if presented, would not
differ materially from those included in the CPH Financial Report); the
financial statements referred to in this Section 3.7(b) reflect the consistent
application of such accounting principles throughout the periods involved,
except as disclosed in the notes to such financial statements. Since the date of
the CPH Financial Report, there has not been any material adverse change in the
business, operations, properties, assets or condition of CPH, and no event or
circumstance has occurred or circumstance exists that may result in such a
material adverse change.

                                       21
<PAGE>
      3.8 TAXES.

            (a) Mexico SRL has filed or caused to be filed on a timely basis all
Tax Returns that are or were required to be filed by or with respect to it
pursuant to applicable Legal Requirements. Mexico SRL has delivered or made
available to Buyers copies of, and Schedule 3.8 contains a complete and accurate
list of, all such Tax Returns ever filed by or on behalf of Mexico SRL. Mexico
SRL has paid, or made provision for the payment of, all Taxes that have or may
have become due pursuant to those Tax Returns or otherwise, or pursuant to any
assessment received by Mexico SRL, any Parent, Barbados or any Seller.

            (b) Schedule 3.8 contains a complete and accurate list of all audits
of all such Tax Returns, including a reasonably detailed description of the
nature and outcome of each audit. All deficiencies proposed as a result of such
audits have been paid, reserved against, settled or, as described in Schedule
3.8 or are being contested in good faith by appropriate proceedings. Schedule
3.8 describes all adjustments to the Tax Returns filed by Mexico SRL for all
taxable years since its organization, and the resulting deficiencies proposed by
the relevant Governmental Body. Mexico SRL has not been given or been requested
to give waivers or extensions (or is or would be subject to a waiver or
extension given by any other Person) of any statute of limitations which remain
in effect relating to the payment of Taxes of Mexico SRL or for which Mexico SRL
may be liable.

            (c) The charges, accruals, and reserves with respect to Taxes on the
respective books of Mexico SRL are adequate (determined in accordance with GAAP)
and are at least equal to Mexico SRL's liability for Taxes. There exists no
proposed tax assessment against Mexico SRL. All Taxes that Mexico SRL is or was
required by Legal Requirements to withhold or collect have been duly withheld or
collected and, to the extent required, have been paid to the proper Governmental
Body or other Person.

            (d) All Tax Returns filed by Mexico SRL are true, correct and
complete. There is no tax sharing agreement that will require any payment by
Mexico SRL after the date of this Agreement.

            (e) Mexico SRL is not currently the beneficiary of any extension of
time within which to file any Tax Return. No claim has ever been made by any
authority in a jurisdiction where Mexico SRL does not file Tax Returns that it
is or may be subject to taxation by that jurisdiction.

            (f) No Tax audit or review has been conducted on Mexico SRL by any
Governmental Body.

            (g) Shareholders will be responsible for the payment of (and the
filing of any related Tax Returns with respect to) any Taxes (of any type or
kind), withholding obligation or Transfer Taxes payable or arising in connection
with or as a result of any of the Contemplated Transactions, including, without
limitation, the Redemption.

                                       22
<PAGE>
      3.9 COMPLIANCE WITH LEGAL REQUIREMENTS; GOVERNMENTAL AUTHORIZATIONS.

            (a)   (i) Mexico SRL is, and at all times has been, in full
compliance with each Legal Requirement that is or was applicable to it or to the
conduct or operation of its business, including the ownership, possession or use
of the Cinemex Stock;

                  (ii) no event has occurred or circumstance exists that (with
      or without notice or lapse of time) (A) may constitute or result in a
      violation by Mexico SRL, or a failure on the part of Mexico SRL to comply
      with, any Legal Requirement, or (B) may give rise to any obligation on the
      part of Mexico SRL to undertake, or to bear all or any portion of the cost
      of, any remedial action of any nature;

                  (iii) Mexico SRL has not received at any time any notice or
      other communication (whether oral or written) from any Governmental Body
      or any other Person regarding (A) any actual, alleged, possible or
      potential violation of, or failure to comply with, any Legal Requirement,
      or (B) any actual, alleged, possible or potential obligation on the part
      of Mexico SRL to undertake, or to bear all or any portion of the cost of,
      any remedial action of any nature; and

                  (iv) neither the Redemption nor any of the other Contemplated
      Transactions will violate or contravene any Legal Requirement or give rise
      to any type of obligation, liability, fine or responsibility.

            (b) Mexico SRL neither holds nor requires any Governmental
Authorization relating to or in connection with its business or operations,
including, without limitation, the ownership, possession or use of the Cinemex
Stock.

      3.10 LEGAL PROCEEDINGS; ORDERS.

            (a) There is no pending Proceeding:

                  (i) that has been commenced by or against Mexico SRL or that
      otherwise relates to or may affect the Cinemex Stock; or

                  (ii) that challenges, or that may have the effect of
      preventing, delaying, making illegal, or otherwise interfering with, any
      of the Contemplated Transactions.

      No such Proceeding has been Threatened and no event has occurred or
circumstances exist that may give rise to or serve as a basis for the
commencement of any such Proceeding.

            (b)   (i) There is no Order to which Mexico SRL or the Cinemex Stock
      is subject;

                  (ii) none of Sellers, Barbados or Parents is subject to any
      Order that relates to the business of Mexico SRL, the Cinemex Stock or to
      the business of, or any of the assets owned or used by, any Cinemex
      Company; and

                                       23
<PAGE>
                  (iii) no officer, director, employee or agent of Mexico SRL is
      subject to any Order that prohibits such officer, director, employee or
      agent from engaging in or continuing any conduct, activity or practice
      relating to the business of Mexico SRL.

              (c) (i) Mexico SRL has not received at any time any notice or
      other communication (whether oral or written) from any Governmental Body
      or any other Person regarding any actual, alleged, possible or potential
      violation of, or failure to comply with, any term or requirement of any
      Order to which Mexico SRL, or any of the Cinemex Stock, was subject.

      3.11 CONTRACTS. Mexico SRL is not a party or bound by any Contract other
than the Existing Stockholders' Agreement (which will be terminated at or prior
to the time of the Closing) and an agreement with The Hoyts Corporation Pty.
Ltd. dated January 11, 2002, with respect to the Intercompany Receivable (which
will be terminated automatically at the Redemption) and this Agreement.

      3.12 GENERAL/HOLDING COMPANY. Mexico SRL was organized on January 10,
1995. Mexico SRL's main purpose and business is to hold and own the Cinemex
Stock and Mexico SRL has never engaged in any business, operations or activities
other than owning the Cinemex Stock and the Intercompany Receivable and owning
certain partnership interests in Related Persons of Mexico SRL, all of which
partnership interests in the Related Persons were sold by Mexico SRL prior to
December 31, 2000. Mexico SRL (i) does not, directly or indirectly, own or have
the right to use (under any Contract or otherwise) any assets or properties
(including real property, personal property, or mixed, and whether intangible or
tangible, any intellectual property or other type of asset or property), other
than the Cinemex Stock and the Intercompany Receivable, (ii) has no employees
(including, without limitation, part-time, full-time, consultants or otherwise)
or any obligation to any Person to pay them for any reason (including any salary
or benefits) and has no employee benefit or payment plans of any type or kind
(including pension plans, insurance programs, stock, option or security purchase
plans or any other type of plan or program), (iii) has no insurance policies or
programs, (iv) has not engaged in any transaction or business dealings (other
than the acquisition of the Cinemex Stock, the entering into the Existing
Stockholders' Agreement, the consummation of the Contemplated Transactions to
which it is a party and as described in the second sentence of this Section
3.12) and (v) is not obligated or committed to make any payment or make any
performance in favor of any Person (including, without limitation, any Related
Person) (other than pursuant to the Loan Agreement).

      3.13 BROKERS OR FINDERS. Neither Mexico SRL nor any Seller or any Parent
nor any of their respective agents has incurred any obligation or liability,
contingent or otherwise, for brokerage or finders' fees or agents' commissions
or other similar payment in connection with this Agreement, the Cinemex Purchase
Agreement or the Inducement Agreement or any of the Contemplated Transactions.

      3.14 CERTAIN PAYMENTS. Neither Mexico SRL nor any director, officer,
agent, or employee thereof, or, to Mexico SRL's, each Parent's, each Seller's
and/or Barbados' Knowledge, any other Person associated with or acting for or on
behalf of Mexico SRL, has directly or indirectly (a) made any contribution,
gift, bribe, rebate, payoff, influence payment, kickback, or other payment to
any Person, private or public, regardless of form, whether in

                                       24
<PAGE>
money, property, or services (i) to obtain favorable treatment in securing
business, (ii) to pay for favorable treatment for business secured, (iii) to
obtain special concessions or for special concessions already obtained, for or
in respect of Mexico SRL or any affiliate of Mexico SRL, or (iv) in violation of
any Legal Requirement, (b) established or maintained any fund or asset that has
not been recorded in the books and records of Mexico SRL.

4.    REPRESENTATIONS AND WARRANTIES AND CERTAIN AGREEMENTS OF SHAREHOLDERS.

      The Shareholders, jointly and severally, represent and warrant to Buyers
as follows:

      4.1 ORGANIZATION AND GOOD STANDING. Each Shareholder is duly organized,
validly existing and in good standing under the laws of its jurisdiction of
incorporation. Each of the Parents is the indirect beneficial owner of all of
the securities of each of the Sellers and Barbados and will realize the benefits
of the sale of the Transferred Interests and the other Contemplated
Transactions.

      4.2 AUTHORITY; NO CONFLICT.

            (a) The execution, delivery and performance of this Agreement and
the Contemplated Transactions to which it is a party have been duly authorized
by all necessary action on the part of each Shareholder. This Agreement
constitutes the legal, valid and binding obligations of each Shareholder
enforceable against each such Person in accordance with its terms. Each
Shareholder has the absolute and unrestricted right, power, authority and
capacity to execute and deliver this Agreement and to perform its obligations
hereunder.

            (b) Neither the execution and delivery of this Agreement by each
Shareholder nor the consummation or performance of any of the Contemplated
Transactions by each such Person will, directly or indirectly (with or without
notice or lapse of time):

                  (i) contravene, conflict with, or result in a violation of (A)
      any provision of any of such Persons' Organizational Documents or (B) any
      resolution adopted by the board of directors (or similar governing body)
      or the stockholders of each of such Persons, Mexico SRL or any Cinemex
      Company;

                  (ii) contravene, conflict with, or result in a violation of,
      or give any Governmental Body or other Person the right to challenge any
      of the Contemplated Transactions or to exercise any remedy or obtain any
      relief under, any Legal Requirement or any Order to which any such
      Persons, Mexico SRL or any Cinemex Company or their respective assets and
      properties may be subject;

                  (iii) contravene, conflict with, or result in a violation of
      any of the terms or requirements of, or give any Governmental Body the
      right to revoke, withdraw, suspend, cancel, terminate or modify, any
      Governmental Authorization that is held by Mexico SRL or any Cinemex
      Company or that otherwise relates to the Cinemex Stock or the assets or
      properties of any Cinemex Company;

                  (iv) cause Buyers, any Cinemex Company or Mexico SRL to become
      subject to, or to become liable for the payment of, any Tax;

                                       25
<PAGE>
                  (v) cause the Cinemex Stock or the assets or properties of any
      Cinemex Company to be reassessed or revalued by any taxing authority or
      other Governmental Body;

                  (vi) contravene, conflict with or result in a violation or
      breach of any provision of, or give any Person the right to declare a
      default or exercise any remedy under, or to accelerate the maturity or
      performance of, or to cancel, terminate or modify, any Contract to which
      such Persons, Mexico SRL or any Cinemex Company is a party or by which any
      of their respective properties or assets may be bound; or

                  (vii) result in the imposition or creation of any Encumbrance
      upon or with respect to the Cinemex Stock, any Cinemex Company or Mexico
      SRL.

      Neither any Parent nor any Seller nor Barbados, is or will be required to
give any notice to or obtain any Consent from any Person in connection with the
execution and delivery of this Agreement or the consummation or performance of
any of the Contemplated Transactions.

      4.3 LEGAL PROCEEDINGS; ORDERS. No Shareholder is subject to any Order that
relates to the business of, or any of the assets owned or used by, any Cinemex
Company or Mexico SRL.

      4.4 TITLE TO SHARES. Each of Seller and Barbados is the sole, legal,
record and beneficial owner of the Interests set forth opposite such
Shareholder's name on Schedule A hereto as of the date hereof, and will be the
sole, legal, record and beneficial owner of such Interests immediately prior to
the Closing, and in the case of Barbados, at all times until the Redemption,
free and clear of all Encumbrances. No legend or other reference to any
purported Encumbrance appears upon any registration of or certificate
representing Interests identified on Schedule A. Upon delivery of the
Transferred Interests and payment therefor pursuant hereto, good and valid title
to the Transferred Interests, free and clear of all Encumbrances, will pass to
MAV and USAC, as appropriate. Upon delivery of the Retained Interests to Mexico
SRL in connection with the Redemption, the Retained Interests will no longer be
outstanding and no Person, including, without limitation, Barbados, will have
any claim, right or entitlement relating to the Retained Interests or to any
payment in respect thereof.

      No Shareholder is party to any Contract relating to any of the Interests
or any other securities of Mexico SRL; no Shareholder has any options, warrants,
convertible securities or other rights to acquire any securities of Mexico SRL;
and no Shareholder owns, has or has any right to any securities in Mexico SRL
other than the Interests as detailed on Schedule A.

      4.5 RELATIONSHIPS WITH RELATED PERSONS. No Shareholder nor any Related
Person of such Shareholder:

            (a) has, or since January 1, 2000 has had, any interest in any
property (whether real estate property, personal property or mixed and whether
tangible or intangible), used in or pertaining to the Cinemex Companies'
businesses or Mexico SRL's business; or

            (b) owns, or since January 1, 2000 has owned (of record or as a
beneficial owner) an equity interest or any other financial or profit interest
in, a Person that has, (i) had

                                       26
<PAGE>
business dealings or a material financial interest in any transaction with
Mexico SRL or any Cinemex Company other than business dealings or transactions
conducted in the Ordinary Course of Business with the Cinemex Companies at
substantially prevailing market prices and on substantially prevailing market
terms and conditions, or (ii) engaged in competition with Mexico SRL or any
Cinemex Company with respect to any Competing Business (as defined in Section
5.24 of Schedule B), except for the ownership of less than one percent of the
outstanding capital stock of any Competing Business that is publicly traded on
any recognized exchange or in the over-the-counter market.

            (c) is a party to any Contract with, or has any claim or right
against, Mexico SRL or any Cinemex Company (other than under the Existing
Stockholders' Agreement, which shall be terminated at or prior to the Closing).

      4.6 BROKERS OR FINDERS. No Shareholder nor any of such Shareholders'
agents has incurred any obligation or liability, contingent or otherwise, for
brokerage or finders' fees or agents' commissions or other similar payment in
connection with this Agreement or the Cinemex Purchase Agreement or any of the
Contemplated Transactions.

5.    REPRESENTATIONS AND WARRANTIES OF CINEMEX.

      Cinemex hereby makes all of the representations and warranties to Buyers
set forth on Schedule B attached to this Agreement, which constitutes a part of
this Agreement.

6.    REPRESENTATIONS AND WARRANTIES OF BUYERS.

      Buyers represent and warrant to Sellers and Barbados as follows:

      6.1 ORGANIZATION AND GOOD STANDING. MAV is a corporation duly organized,
validly existing and in good standing under the laws of Mexico, with full
corporate power and authority to conduct its business as it is now being
conducted and to perform all its obligations under each Contract to which it is
a party. USAC is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware, with full corporate power and
authority to conduct its business as it is now being conducted and to perform
all its obligations under each Contract to which it is a party. Buyers have
delivered to Mexico SRL copies of their Organizational Documents as currently in
effect.

      6.2 AUTHORITY; NO CONFLICT.

            (a) The execution, delivery and performance of this Agreement and
the consummation or performance by Buyers of the Contemplated Transactions
(excluding the Redemption) have been duly authorized by all necessary action on
the part of Buyers. This Agreement constitutes the legal, valid and binding
obligation of each Buyer, enforceable against it in accordance with its terms.
Each Buyer has the absolute and unrestricted right, power and authority to
execute and deliver this Agreement and to perform its obligations hereunder.

            (b) Except as set forth on Schedule 6.2, neither the execution and
delivery of this Agreement by each Buyer nor the consummation or performance of
any of the Contemplated

                                       27
<PAGE>
Transactions by each Buyer will give any Person the right to prevent, delay, or
otherwise interfere with any of the Contemplated Transactions pursuant to:

                  (i) any provision of either Buyer's Organizational Documents;

                  (ii) any resolution adopted by the board of directors or the
      stockholders of either Buyer;

                  (iii) any Legal Requirement or Order to which either Buyer may
      be subject; or

                  (iv) any Contract to which either Buyer is a party or by which
      either Buyer may be bound.

      Except for those which have been obtained, given or made, neither Buyer
will be required to give any notice to or obtain any Consent from any Person in
connection with the execution and delivery of this Agreement or the consummation
or performance of any of the Contemplated Transactions.

      6.3 CERTAIN PROCEEDINGS. There is no pending Proceeding that has been
commenced against either Buyer and that challenges, or may have the effect of
preventing, delaying, making illegal, or otherwise interfering with, any of the
Contemplated Transactions. To either Buyer's Knowledge, no such Proceeding has
been Threatened.

      6.4 BROKERS OR FINDERS. Neither Buyer has incurred any obligation or
liability, contingent or otherwise, for brokerage or finders' fees or agents'
commissions or other similar payment in connection with this Agreement.

      6.5 AVAILABLE FUNDS. Buyers will have, on the Closing Date, sufficient
funds available to perform all of their obligations under this Agreement,
including, without limitation, to make the payments required under Section
2.5(b)(i). Buyers will have on the day which the Adjustment Amount is finally
determined in accordance with Section 2.6, sufficient funds available to make
any payments which may be required under Section 2.6(d) in accordance with the
terms of this Agreement.

      6.6 NO ADDITIONAL REPRESENTATIONS. Buyers have conducted their own due
diligence investigation of Mexico SRL, the Cinemex Companies and related
matters. None of Mexico SRL, Cinemex or the Shareholders has made, and Buyers
have not relied on, any representation or warranty, except as set forth in this
Agreement, the Cinemex Purchase Agreement or the Inducement Agreement, it being
understood that a party hereto that is not a party to the Cinemex Purchase
Agreement or the Inducement Agreement will not have any liability or obligation
with respect to representations and warranties made in such other agreements.
Nothing in this Section 6.6 shall in any way affect or limit any Shareholder's
liabilities or obligations under Sections 4, 11 and 12 of this Agreement or any
other provision of this Agreement.

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<PAGE>
7.    COVENANTS PRIOR TO CLOSING DATE.

      7.1 ACCESS AND INVESTIGATION.

            (a) Between the date of this Agreement and the Closing Date, each
Shareholder will, and will cause Mexico SRL and its Representatives to, (i)
afford Buyers and their Representatives (collectively, "Advisors") reasonable
access to Mexico SRL's properties, contracts, books and records and other
documents and data, (ii) furnish Buyers and their Advisors with copies of all
such contracts, books and records, and other existing documents and data as
Buyers and/or their Advisors may reasonably request, (iii) furnish Buyers and
their Advisors with such additional financial, operating and other data and
information as Buyers and/or their Advisors may reasonably request and (iv) make
available to Buyers and their Advisors, upon reasonable advance notice and
during normal business hours, the officers of Mexico SRL as Buyers and/or their
Advisors may reasonably request.

            (b) Between the date of this Agreement and the Closing Date, Cinemex
will, and will cause each Cinemex Company and their respective Representatives
to use their Best Efforts to (i) afford Buyers and their Advisors reasonable
access during normal business hours and upon reasonable advance notice, to each
Cinemex Company's properties, contracts, books and records and other documents
and data, (ii) furnish Buyers and their Advisors with copies of all such
contracts, books and records, and other existing documents and data as Buyers
and/or their Advisors may reasonably request, (iii) furnish Buyers and their
Advisors with such additional financial, operating and other data and
information concerning Cinemex as Buyers and/or their Advisors may reasonably
request and as may be reasonably available to Cinemex and (iv) make available to
Buyers and their Advisors, upon reasonable advance notice and during normal
business hours, the officers of each Cinemex Company as Buyers and/or their
Advisors may reasonably request; provided, that such availability shall not
interfere with the normal operations of such Cinemex Company. Any information
heretofore or hereafter obtained from any party hereto shall be subject to and
shall be held in accordance with the terms of the Confidentiality Agreement.

      7.2 OPERATION OF BUSINESS. Between the date of this Agreement and the
Closing Date, unless otherwise consented to by Buyers in writing, Cinemex will,
and will cause each Cinemex Company to:

            (a) conduct the business of the Cinemex Companies only in the
Ordinary Course of Business; and

            (b) use its Best Efforts to preserve intact in all material respects
the current business organization of the Cinemex Companies, keep available the
services of the current officers, employees and agents of the Cinemex Companies,
and maintain in all material respects the relations and goodwill with suppliers,
customers, landlords, creditors, employees, agents and others having business
relationships with the Cinemex Companies.

      7.3 LOAN AGREEMENT. Buyers shall cause Lender to lend and Lender shall
lend to Mexico SRL an amount (the "Loan Amount") equal to the excess of the
Redemption Price over the amount of the Intercompany Receivable under a loan
agreement in the form of Exhibit 7.3

                                       29
<PAGE>
(the "Loan Agreement"), the proceeds of which shall be used to fund part of the
Redemption Price.

      7.4 Negative Covenants

            (a) Except as otherwise expressly permitted by this Agreement,
between the date of this Agreement and the Closing Date, Mexico SRL will not,
and each Shareholder will not and will cause Mexico SRL not to, without the
prior consent of Buyers, take any action or omit to take any action which would
cause any of the representations and warranties set forth in Section 3, 4 or 5
of, or Schedule B to, this Agreement to be untrue, inaccurate or incomplete in
any respect.

            (b) Except as otherwise expressly permitted by this Agreement,
between the date of this Agreement and the Closing Date, Cinemex will not,
without the prior consent of Buyers, (i) take any action or omit to take any
action which would cause any of the representations and warranties set forth in
Schedule B to this Agreement and incorporated into Section 5 of this Agreement
to be untrue, inaccurate or incomplete in any material respect; (ii) take any
affirmative action, or fail to take any reasonable action as a result of which
any of the changes or events listed in Section 5.16 in Schedule B, attached
hereto and made a part hereof, is reasonably likely to occur; (iii) make any
capital expenditure commitment other than capital expenditure commitments not in
excess of $2'500,000 pesos for individual items and not in excess of $10'000,000
pesos in the aggregate; (iv) pay, discharge or satisfy any Cinemex Indebtedness
other than the payment, discharge or satisfaction of such Cinemex Indebtedness
upon maturity or when otherwise due; (v) take or omit to take any action with
respect to Taxes if such action or omission would have the effect of increasing
the Tax liability of the Cinemex Companies for a Tax Period after the Closing
Date; (vi) settle any litigation that provides for liability to any Cinemex
Company after the Closing or that imposes any restrictions on any Cinemex
Company after the Closing; or (vii) enter into any agreement to do any of the
foregoing.

      7.5 REQUIRED APPROVALS.

            (a) As promptly as practicable after the date of this Agreement, the
parties hereto will make all other filings required by Legal Requirements to be
made by them in order to consummate the Contemplated Transactions. Between the
date of this Agreement and the Closing Date, the parties hereto will (i)
reasonably cooperate with one another with respect to all filings that any party
hereto elects to make or is required by Legal Requirements to make in connection
with the Contemplated Transactions, and (ii) reasonably cooperate with one
another in obtaining all Consents identified in Schedule 6.2.

            (b) On May 29, 2002, Cinemex filed a notification of concentration
in connection with the Contemplated Transactions with the Mexican Federal
Competition Commission (Comision Federal de Competencia), and the parties shall
notify the other parties of any correspondence or contact with such agency,
shall comply as promptly as practicable with all requests for further documents
and information made by such agency, shall furnish to the other parties all such
information in its possession as may be reasonably necessary for the

                                       30
<PAGE>
completion of the reports or notifications to be filed and shall otherwise fully
cooperate in dealing with such agency.

      7.6 NOTIFICATION. Between the date of this Agreement and the Closing Date,
each Shareholder, Mexico SRL and Cinemex will promptly notify Buyers in writing
if such Person becomes aware of any fact or condition that causes or constitutes
a material Breach of such Person's (or any other Person's) representations and
warranties as of the date of this Agreement, or if such Person becomes aware of
the occurrence after the date of this Agreement of any fact or condition that
would (except as expressly contemplated by this Agreement) cause or constitute a
material Breach of any such representation or warranty had such representation
or warranty been made as of the time of occurrence or discovery of such fact or
condition. Should any such fact or condition require any change in the Schedules
to this Agreement if such Schedules were dated the date of the occurrence or
discovery of any such fact or condition, such Person will promptly deliver to
Buyers a supplement to the Schedules specifying such change. During the same
period, each of the Shareholders, Cinemex and Buyers will promptly notify the
other parties of the occurrence of any material Breach of any covenant of such
party in this Section 7 or of the occurrence of any event that could reasonably
be expected to make the satisfaction of the conditions in Sections 8 and 9
impossible or unlikely.

      7.7 NO NEGOTIATION. Until such time, if any, as this Agreement is
terminated pursuant to Section 10, the Shareholders, Mexico SRL and Cinemex will
not and will cause (as applicable) each of Mexico SRL and each Cinemex Company
not to, and each such Person will cause its respective Representatives not to,
directly or indirectly solicit, initiate, or encourage any inquiries or
proposals from, discuss or negotiate with, provide any non-public information
to, or consider the merits of any unsolicited inquiries or proposals from, any
Person (other than Buyers (or their respective affiliates)) relating to any
transaction involving the sale of the business or assets (other than in the
Ordinary Course of Business) of Mexico SRL or of any Cinemex Company, or any of
the capital stock of Mexico SRL as of any Cinemex Company, or any merger,
consolidation, business combination or similar transaction involving Mexico SRL
or any Cinemex Company.

      7.8 BEST EFFORTS. Between the date of this Agreement and the Closing Date,
the Shareholders will use their Best Efforts to cause the conditions in Section
8 of this Agreement to be satisfied and Buyers will use their Best Efforts to
cause the conditions in Section 9 in this Agreement to be satisfied. Buyers will
cause each Cinemex Company to use their Best Efforts to obtain Consents from
such holder(s) which do not require any reduction of the principal amount of
such Cinemex Indebtedness.

8.    CONDITIONS PRECEDENT TO BUYERS' OBLIGATION TO CLOSE.

      Buyers' obligation to purchase the Transferred Interests and to take the
other actions required to be taken by Buyers at the Closing is subject to the
satisfaction, at or prior to the Closing, of each of the following conditions
(any of which may be waived by Buyers in writing, in whole or in part):

                                       31
<PAGE>
      8.1 ACCURACY OF REPRESENTATIONS.

            (a) All of the Shareholders' and Mexico SRL's representations and
warranties in this Agreement (considered collectively), and each of these
representations and warranties (considered individually), must have been true
and correct in all respects as of the date of this Agreement, and must be true
and correct in all respects as of the Closing Date as if made on the Closing
Date, without giving effect to any supplement to the Schedules to this Agreement
(except to the extent that any representation and warranty is expressly made as
of a particular date other than the date of this Agreement or the Closing Date,
in which case such representation and warranty shall have been true and correct
as of such date).

            (b) Each of the representations and warranties of Cinemex contained
in this Agreement (disregarding all qualifications and exceptions contained
therein relating to substantiality, materiality or Material Adverse Effect)
shall be true and correct when made and on and as of the Closing Date as if made
on and as of the Closing Date (except for those representations and warranties
that relate to a particular date, which representations and warranties shall be
correct as of such date), provided that this Section 8.1 shall be deemed
satisfied so long as all failures of such representations and warranties to be
true and correct (disregarding all such qualifications as aforesaid), taken
together, would not reasonably be expected to (i) have a Material Adverse Effect
or (ii) materially impede or delay the ability of Buyers to consummate the
Contemplated Transactions.

      8.2 THE SHAREHOLDERS, MEXICO SRL'S AND CINEMEX'S PERFORMANCE. (a)
Shareholders and Mexico SRL shall have performed or complied with, in all
material respects, all agreements and covenants required to be performed or
complied with by it or them under this Agreement at or prior to the Closing
provided that this Section 8.2(a) shall be deemed satisfied so long as all
failures by the Shareholders and Mexico SRL to perform or comply with such
agreements and covenants, taken together, would not reasonably be expected to
(i) materially impair or delay the ability of Buyers to consummate the
Contemplated Transactions, (ii) have a Material Adverse Effect or (iii) have a
material adverse effect upon the business, operations, properties, assets or
conditions of Mexico SRL.

            (b) Cinemex shall have performed or complied with, in all material
respects, all agreements and covenants required to be performed or complied with
by it under this Agreement at or prior to the Closing Date, provided that this
Section 8.2(b) shall be deemed satisfied so long as all failures by Cinemex to
perform or comply with such agreements and covenants, taken together, would not
reasonably be expected to (i) have a Material Adverse Effect or (ii) materially
impair or delay the ability of Buyers to consummate the Contemplated
Transactions.

            (c) Each document and certificate required to be delivered by a
Shareholder, Mexico SRL or a Cinemex company pursuant to Section 2.5(a) or
elsewhere in this Agreement must have been delivered.

      8.3 CONSENTS. Each of the Consents identified in Schedule 6.2 must have
been obtained and must be in full force and effect.

                                       32
<PAGE>
      8.4 NO ORDER. No temporary restraining order, preliminary or permanent
injunction or other order issued by any court of competent jurisdiction or other
legal restraint or prohibition preventing the consummation of the Contemplated
Transactions shall be in effect.

      8.5 NO CLAIM REGARDING STOCK OWNERSHIP OR SALE PROCEEDS. There must not
have been made or Threatened by any Person (other than Sellers and Barbados
under a consistent basis with this Agreement) any claim asserting that such
Person (a) is the holder or the beneficial owner of, or has the right to acquire
or to obtain beneficial ownership of, any stock or security of, or any other
voting, equity, or ownership interest in, Mexico SRL, or (b) is entitled to all
or any portion of the amount(s) payable to Sellers under this Agreement or
Barbados in connection with the Redemption.

      8.6 NO PROHIBITION. There shall be no Legal Requirement which prohibits
the consummation of any of the Contemplated Transactions.

      8.7 OTHER CLOSINGS. The closing of the transactions contemplated by the
Cinemex Purchase Agreement shall have occurred, and the Inducement Agreement
shall have been executed and delivered by the parties thereto.

      8.8 DIRECTORS/OFFICERS. The directors and officers of Mexico SRL shall
have resigned.

9.    CONDITIONS PRECEDENT TO SHAREHOLDERS' OBLIGATION TO CLOSE.

      Sellers' obligation to sell the Transferred Interests and the
Shareholders' obligations to take the actions required to be taken by them at
the Closing is subject to the satisfaction, at or prior to the Closing, of each
of the following conditions (any of which may be waived by the Shareholders, in
whole or in part).

      9.1 ACCURACY OF REPRESENTATIONS. Each of Buyers' representations and
warranties contained in this Agreement (disregarding all qualifications and
exceptions contained therein relating to substantiality or to materiality) shall
be true and correct when made and on and as of the Closing Date as if made on
and as of the Closing Date (except to the extent that any representation and
warranty is expressly made as of a particular date other than the date of this
Agreement or the Closing Date, in which case such representation and warranty
shall be true and correct in all respects as of such date); provided, that this
Section 9.1 shall be deemed satisfied so long as all failures of such
representations and warranties to be true and correct (disregarding all such
qualifications, as foresaid), taken together, would not reasonably be expected
to (i) have a material adverse effect on the business, operations, assets,
condition (financial or otherwise) or results of operations of Buyers
(considered collectively); provided, however, that in determining whether there
has been a material adverse effect, any adverse effect principally attributable
to any of the following shall be disregarded: (A) general political, economic,
business, industry or financial market conditions and (B) the taking of any
action specifically required by this Agreement or (ii) materially delay or
impair the ability of the Shareholders to consummate the Contemplated
Transactions.

                                       33
<PAGE>
      9.2 BUYERS' PERFORMANCE.

            (a) Buyers shall have performed or complied with, in all material
respects, all agreements and covenants required to be performed or complied with
by them under this Agreement at or prior to the Closing Date, provided, that
this Section 9.2 shall be deemed satisfied so long as all failures by Buyers to
perform or comply with such agreements and covenants, taken together, would not
reasonably be expected to (i) have a material adverse effect on the business,
operations, assets, financial condition or results of operations of Buyers
(considered collectively); provided, however, that in determining whether there
has been such a material adverse effect, any adverse effect principally
attributable to any of the following shall be disregarded: (A) general
political, economic, business, industry or financial market conditions; and (B)
the taking of any action specifically required by this Agreement or (ii)
materially delay or impair the ability of the Shareholders to consummate the
Contemplated Transactions.

            (b) Each document required to be delivered by Buyers pursuant to
Section 2.5(b) must have been delivered, and each of the other covenants and
obligations of Buyers set forth in this Agreement must have been performed and
complied with in all respects.

      9.3 NO ORDER. No temporary restraining order, preliminary or permanent
injunction or other order issued by any court of competent jurisdiction or other
legal restraint or prohibition preventing the consummation of the Contemplated
Transactions shall be in effect.

      9.4 NO PROHIBITION. There must not be in effect any Legal Requirement or
Order or any injunction that prohibits the consummation of the Contemplated
Transactions.

      9.5 LOAN AGREEMENT. Buyers shall have caused Lender to make the loan
contemplated by the Loan Agreement.

10.   TERMINATION.

      10.1 TERMINATION EVENTS. This Agreement may, by notice given prior to or
at the Closing, be terminated:

            (a) by Buyers if a material Breach of any provision of this
Agreement has been committed by the Shareholders, Mexico SRL or Cinemex which,
if not cured at Closing, would cause the conditions specified in either of
Sections 8.1 or 8.2 not to be satisfied, and the Shareholders, Mexico SRL or
Cinemex have not cured such Breach within 15 days of notice by Buyers;

            (b) by Parents if a material Breach of any provision of this
Agreement has been committed by Buyers which, if not cured at Closing, would
cause the conditions specified in either of Sections 9.1 or 9.2 not to be
satisfied, and Buyers have not cured such Breach within 15 days of notice by
Buyers;

            (c) (i) by Buyers if any of the conditions in Section 8 has not been
satisfied as of the Closing Date or if satisfaction of such a condition is or
becomes impossible (other than through the failure of Buyers to comply with
their obligations under this Agreement) and Buyers

                                       34
<PAGE>
have not waived such condition in writing on or before the Closing Date; or (ii)
by Parents if any of the conditions in Section 9 has not been satisfied on the
Closing Date or if satisfaction of such a condition is or becomes impossible
(other than through the failure of the Shareholders, Mexico SRL or Cinemex to
comply with their respective obligations under this Agreement) and Parents have
not waived such condition in writing on or before the Closing Date;

            (d) by mutual consent of the parties hereto; or

            (e) by either Buyers or Parents if the Closing has not occurred
(other than through the failure of any party (in the case of Parents, this shall
include each Shareholder, Mexico SRL and Cinemex) seeking to terminate this
Agreement to comply fully with its obligations under this Agreement) on or
before June 19, 2002, or such later date as the parties may agree upon.

      10.2 EFFECT OF TERMINATION. Each party's right of termination under
Section 10.1 is in addition to any other rights it may have under this Agreement
or otherwise, and the exercise of a right of termination will not be an election
of remedies. If this Agreement is terminated pursuant to Section 10.1, all
further obligations of the parties under this Agreement will terminate, except
that the obligations in Section 13.1 and the last sentence of Section 7.1(b)
will survive; provided, however, that if this Agreement is terminated by a party
because of the Breach of this Agreement by another party or because one or more
of the conditions to the terminating party's obligations under this Agreement is
not satisfied as a result of another party's failure to comply with its
obligations under this Agreement, the terminating party's right to pursue all
legal remedies will survive such termination unimpaired.

11.   INDEMNIFICATION; REMEDIES.

      11.1 SURVIVAL; RIGHT TO INDEMNIFICATION NOT AFFECTED BY KNOWLEDGE. All
representations, warranties, covenants, and obligations in this Agreement, the
Schedules hereto, the supplements to such Schedules, the certificates delivered
pursuant to Sections 2.5(a)(iv) and 2.5(b)(iii) of this Agreement and any other
certificate or document delivered pursuant to this Agreement will survive the
Closing. The right to indemnification, payment of Damages or other remedy based
on such representations, warranties, covenants and obligations will not be
affected by any investigation conducted with respect to, or any Knowledge
acquired (or capable of being acquired) at any time, whether before or after the
execution and delivery of this Agreement or the Closing Date, with respect to
the accuracy or inaccuracy of or compliance with, any such representation,
warranty, covenant, or obligation. The waiver of any condition based on the
accuracy of any representation or warranty, or on the performance of or
compliance with any covenant or obligation, will not affect the right to
indemnification, payment of Damages, or other remedy based on such
representations, warranties, covenants and obligations.

      11.2 INDEMNIFICATION AND PAYMENT OF DAMAGES BY THE SHAREHOLDERS.

            (a) The Shareholders, jointly and severally, will indemnify and hold
harmless each Buyer, Mexico SRL, the Cinemex Companies and their respective
Representatives, stockholders, controlling persons and affiliates and their
respective successors or assignees (collectively, the "Buyer Indemnified
Persons") for, and will pay to the Buyer Indemnified

                                       35
<PAGE>
Persons the Hoyts Percentage of the amount of, any loss, liability, claim,
damage, expense (including costs of investigation and defense and reasonable
attorneys' fees), fine, penalty or loss profits or, whether or not involving a
third-party claim (collectively, "Damages"), arising, directly or indirectly,
from or in connection with:

                  (i) any Breach of any representation or warranty made by
      Cinemex in this Agreement (including, without limitation, those set forth
      in Schedule B hereto) or (notwithstanding that the Shareholders have not
      made such representation or warranty) (without giving effect to any
      supplement to the Schedules hereto), the Schedules hereto, the supplements
      to such Schedules or any other certificate or document delivered by
      Cinemex pursuant to this Agreement (other than any such Breach as to which
      indemnity is available under clause (iv) below);

                  (ii) any Breach of any representation or warranty made by
      Cinemex in this Agreement (including, without limitation, those set forth
      in Schedule B hereto) (notwithstanding that the Shareholders have not made
      such representation or warranty) as if such representation or warranty
      were made on and as of the Closing Date without giving effect to any
      supplement to the Schedules hereto, other than any such Breach that is
      disclosed in a supplement to such Schedules and is expressly identified in
      the certificate delivered pursuant to Section 2.5(a)(v) as having caused
      the condition specified in Section 8.1(b) not to be satisfied (other than
      any such Breach as to which indemnity is available under clause (iv)
      below);

                  (iii) any Breach by Cinemex of any covenant or obligation of
      Cinemex in this Agreement; or

                  (iv) subject to Section 11.9(c), the payment of (A)
      Pre-Closing Taxes of the Cinemex Companies to the extent that the actual
      amount of such unpaid Pre-Closing Taxes exceeds the amount of unpaid
      Pre-Closing Taxes reflected as a liability on the Net Assets/Liabilities
      Statement, (B) 50% of all Transfer Taxes arising in respect of the direct
      transfer of shares contemplated under the Cinemex Purchase Agreement and
      (C) Taxes of the Cinemex Companies attributable to a Post-Closing Tax
      Period to the extent that they constitute Damages due to a breach of any
      representation or warranty of Cinemex made pursuant to Section 5.11 of
      Schedule B; provided, however, Shareholders shall not be obligated to
      indemnify the Buyer Indemnified Persons for Taxes pursuant to clause (A)
      of this Section 11.2(a)(iv) that are imposed on an item of income to the
      extent that the economic value corresponding to such item is possessed by
      the Cinemex Companies and has not been reflected in the Closing Balance
      Sheet, the Net Assets/Liabilities Statement or the other financial
      statements of the Cinemex Companies; provided, further, that for purposes
      of determining the amount of the Shareholders' liability under this clause
      (iv), the actual amount of unpaid Pre-Closing Taxes of the Cinemex
      Companies shall be determined on a net basis taking into account any
      refunds of Pre-Closing Taxes received by any of the Cinemex Companies and
      retained by it by virtue of the application of clause (ii) of Section
      11.9(a);

                  (v) any Disruption referred to in Section 11.2(c) or the Santa
      Fe Event referred to in Section 11.2(d); or

                                       36
<PAGE>
                  (vi) any claim by any Person for brokerage or finder's fees or
      commissions or similar payments based upon any agreement or understanding
      alleged to have been made by any such Person with any Cinemex Company (or
      any Person acting on its behalf) in connection with any of the
      Contemplated Transactions.

The parties acknowledge that the Hoyts Percentage of the Shareholders has been
calculated on the basis that it would apply to the Damages that would be
sustained by a purchaser of 100% of the outstanding shares and equity interests
in Cinemex, without giving effect to any indemnification under the Cinemex
Purchase Agreement or the Inducement Agreement.

            (b) The Shareholders will, jointly and severally, indemnify and hold
harmless the Buyer Indemnified Persons for, and will pay to the Buyer
Indemnified Persons the amount of, any Damages arising, directly or indirectly,
from or in connection with:

                  (i) any Breach of any representation or warranty made by
      Mexico SRL or any Shareholder in this Agreement (without giving effect to
      any supplement to the Schedules hereto), the Schedules hereto, the
      supplements to such Schedules or any other certificate or document
      delivered by Mexico SRL or the Shareholders pursuant to this Agreement;

                  (ii) any Breach of any representation or warranty made by
      Mexico SRL or any Shareholder in this Agreement as if such representation
      or warranty were made on and as of the Closing Date without giving effect
      to any supplement to the Schedules hereto (other than the representation
      made by the Shareholders in Section 4.5 of this Agreement), other than any
      such Breach that is disclosed in a supplement to such Schedules and is
      expressly identified in the certificate delivered pursuant to Section
      2.5(a)(iv) as having caused the condition specified in Section 8.1(a) not
      to be satisfied;

                  (iii) any Breach by Mexico SRL or any Shareholder of any
      covenant or obligation of Mexico SRL or any Shareholder in this Agreement;

                  (iv) any claim by any Person for brokerage or finder's fees or
      commissions or similar payments based upon any agreement or understanding
      alleged to have been made by any such Person with Mexico SRL or any
      Shareholder (or any Person acting on their behalf) in connection with any
      of the Contemplated Transactions;

                  (v) any (w) loss, liability, claim, damage, expense, fines,
      penalties or other item incurred, or paid or payable by Mexico SRL (or any
      of its successors and assigns) on account, or arising out, of any matter,
      cause or event occurring contemporaneously with or prior to the Closing
      Date, (x) loss, liability, claim, damage, expense, fine, penalty or other
      item paid or payable by any Buyer or any Related Person of any Buyer (or
      any of their respective successors and assigns) on account, or arising as
      a result, of the acquisition, redemption or ownership of any of the
      Interests arising due to any event occurring or circumstance or state of
      fact existing at any time at or prior to the Closing (or, with respect to
      the Redemption, at any time at or prior to the Redemption), (y) Taxes, or
      any Tax or other withholding obligation, or any Transfer Taxes, arising in

                                       37
<PAGE>
      connection with or payable as a result of the Redemption or the other
      Contemplated Transactions relating to Mexico SRL or (z) Pre-Closing Taxes
      of Mexico SRL; and

                  (vi) any (x) claim by any Person made as a result of or in
      connection with the Redemption other than by Barbados for the payment of
      the Redemption Price in accordance with Section 12.2 or (y) Breach of
      Section 12.2.

            (c)   (i) For purposes of this Agreement, a "Disruption" shall mean
the closure of the entire operation of any of the Coapa, Polanco or Universidad
theatres (each, an "Affected Theatre") that (i) continues for more than seven
(7) calendar days; (ii) is caused by the inability of the relevant Cinemex
Company to obtain or renew one or more of the Mexican Governmental
Authorizations for such theatre that is required as of and has not been obtained
as of the Closing Date; and (iii) commences within 18 months of the Closing
Date.

                  (ii) Notwithstanding anything in this Agreement to the
      contrary, (i) the sole Damages sustained by the Buyer Indemnified Persons
      as a result of any Disruption that terminates within twelve (12) months of
      the commencement of such Disruption (each, a "Minor Disruption") shall be
      equal to the product obtained by multiplying (A) the projected annual
      theatre level cash flow for the Affected Theatre as set forth in Cinemex's
      fiscal 2002 budget (a copy of which is attached hereto as Exhibit 11.2(c))
      (the "Projected Cash Flow") divided by 365; times (B) the number of
      calendar days constituting such Minor Disruption less seven (7); and (ii)
      the sole Damages sustained by the Buyer Indemnified Persons as a result of
      any Disruption that continues for twelve (12) months or more from and
      after its commencement (a "Major Disruption") shall be equal to the
      product obtained by multiplying the Projected Cash Flow for the Affected
      Theatre times six (6); provided that if such Affected Theater shall reopen
      within eighteen (18) months following the commencement of such Major
      Disruption and remain open for twelve (12) continuous months after
      reopening, the Buyer Indemnified Persons shall reimburse the Shareholders
      an amount equal to the excess, if any, of (x) the lesser of (A) the amount
      paid by the Shareholders to the Buyer Indemnified Persons in respect of
      the Damages sustained from such Major Disruption and (B) the product of
      (I) the Hoyts Percentage, (II) the cash flow for the Affected Theater for
      the twelve (12) month period immediately following the end of such Major
      Disruption and (III) six (6) over (y) the product of (I) that
      Shareholder's Percentage, (II) the Projected Cash Flow for the Affected
      Theater and (III) the quotient obtained by dividing the number of calendar
      days constituting such Major Disruption by 365.

            (d)   (i) For purposes of this Agreement, the "Santa Fe Event" is
      the successful suspension, expiration or termination by the landlord of
      the rent reduction currently in effect with respect to the Santa Fe
      theatre lease, dated March 2, 1995, as amended, other than as a result of
      the construction and completion of the expansion of the Santa Fe shopping
      center by the landlord and the relocation of the Santa Fe theatre complex
      elsewhere in the center.

                  (ii) Notwithstanding anything in this Agreement to the
      contrary, the sole Damages sustained by the Buyer Indemnified Persons in
      connection with the Santa Fe Event shall be in an amount equal to the
      difference between (A) the rent payable under the Santa Fe lease for the
      12 months following the Santa Fe Event and (B) the rent that

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<PAGE>
      would have been payable under the Santa Fe lease during such period had
      the Santa Fe Event not occurred, times six (6).

            (e) Notwithstanding anything in this Agreement to the contrary,
Damages sustained by the Buyer Indemnified Persons in connection with the
application of Sections 11.2(a)(v), 11.2(c) and/or 11.2(d) of this Agreement
shall be payable as provided in such Sections so long as, and only if, the Santa
Fe Event or any Disruption, as applicable, occurs or commences within 18 months
of the Closing Date.

      11.3 INDEMNIFICATION AND PAYMENT OF DAMAGES BY BUYERS. Buyers, jointly and
severally, will indemnify and hold harmless the Shareholders and their
respective Representatives, stockholders, controlling persons and affiliates and
their respective successors and assignees (collectively, the "Shareholder
Indemnified Persons") for, and will pay to the Shareholder Indemnified Persons
the amount of, any Damages arising, directly or indirectly, from or in
connection with:

            (a) any Breach of any representation or warranty made by Buyers in
this Agreement (without giving effect to any supplement to the Schedules
hereto), the Schedules hereto, the supplements to such Schedules or any other
certificate or document delivered by Buyers pursuant to this Agreement;

            (b) any Breach of any representation or warranty made by Buyers in
this Agreement as if such representation or warranty were made on and as of the
Closing Date without giving effect to any supplement to the Schedules hereto,
other than any such Breach that is disclosed in a supplement to such Schedules
and is expressly identified in the certificate delivered pursuant to Section
2.5(b)(iii) as having caused the condition specified in Section 9.1 not to be
satisfied;

            (c) any Breach by either Buyer of any covenant or obligation of such
Buyer in this Agreement; or

            (d) any claim by any Person for brokerage or finder's fees or
commissions or similar payments based upon any agreement or understanding
alleged to have been made by any such Person with Buyers (or any Person acting
on their behalf) in connection with any of the Contemplated Transactions.

      11.4 TIME LIMITATIONS.

            (a) If the Closing occurs, the Shareholders will not have liability
(for indemnification or otherwise) with respect to any representation or
warranty, or covenant or obligation to be performed and complied with prior to
the Closing Date, other than those made in Sections 5.3, 5.4, 5.5, 5.11, and
5.13 of Schedule B, Section 3 (including Sections 3.1 through and including
3.14), Section 4 (including Sections 4.1 through and including 4.6), Sections
7.4(a), 7.5(a), 7.6 (in the case of Section 7.6, with respect to the
Shareholders' and Mexico SRL's obligations only), 11.2(a)(iv) and 11.2(b),
unless on or before the day which is 18 calendar months after the Closing,
Buyers notify the Shareholders of a claim specifying the factual basis of that
claim in reasonable detail to the extent then known by Buyers. A claim with
respect to:

                                       39
<PAGE>
            (i) Sections 5.3, 5.4 or 5.5 of Schedule B, Section 3 (including
      Sections 3.1 through and including 3.14), Section 4 (including Sections
      4.1 through 4.6), Section 7.4(a), 7.5(a), 7.6 (in the case of Section 7.6,
      with respect to the Shareholders' and Mexico SRL's obligations only) or
      11.2(b) may be made at any time;

            (ii) Sections 5.11 or 5.13 of Schedule B or Section 11.2(a)(iv) may
      be upon notice to such Shareholder prior to sixty (60) days after the
      expiration of the statute of limitations applicable to the underlying
      claim (as it may from time to time be extended), unless no statute of
      limitations is applicable to the underlying claim, in which event a claim
      hereunder may be made at any time.

      (b) if the Closing occurs, Buyers will have no liability (for
indemnification or otherwise) with respect to any representation or warranty, or
covenant or obligation to be performed and complied with prior to the Closing
Date, unless on or before the day which is 18 calendar months after the Closing,
the Shareholder asserting the claim notifies Buyers of a claim specifying the
factual basis of that claim in reasonable detail to the extent then known by
such Shareholder.

      11.5 LIMITATIONS ON AMOUNT - SHAREHOLDERS. The Shareholders will not have
liability (for indemnification or otherwise) with respect to the matters
described in Sections 11.2(a)(i), 11.2(a)(ii), 11.2(a)(iii), 11.2(a)(iv) or
11.2(a)(v) until the Hoyts Attributable Damages exceeds the Hoyts Basket Amount
and then shall have liability only to the extent the Hoyts Attributable Damages
exceeds the Hoyts Basket Amount. The Shareholders aggregate liability (for
indemnification or otherwise) with respect to the matters described in Section
11.2(a) shall not exceed the Hoyts Cap Amount. Notwithstanding the foregoing,
(A) neither of the Hoyts Cap Amount nor the Hoyts Basket Amount shall apply to
Damages with respect to (x) the matters described in Section 11.2(b) or (y) any
Breach of any of Shareholders', Cinemex's or Mexico SRL's representations and
warranties involving fraud on the part of the Shareholders, Cinemex or Mexico
SRL and (B) the Hoyts Basket Amount shall not apply to Damages with respect to
the matters described in Section 11.2(a)(vi).

      11.6 LIMITATIONS ON AMOUNT - BUYERS. Buyers will not have liability (for
indemnification or otherwise) with respect to the matters described in Sections
11.3(a), 11.3(b) or 11.3(c) until the total of all Damages with respect to such
matters exceeds the Buyers Basket Amount and then Buyers shall only have
liability with respect to such matters to the extent such Damages exceed the
Buyers Basket Amount. Buyers' aggregate liability (for indemnification or
otherwise) with respect to the matters described in Section 11.3 shall not
exceed the Buyers Cap Amount. Notwithstanding the foregoing, (A) neither the
Buyers Cap Amount nor the Buyers Basket Amount shall apply to Damages with
respect to any Breach of any of Buyers' representations and warranties involving
fraud and (B) the Buyers Basket Amount shall not apply to any Damages with
respect to the matters described in Section 11.3(d).

      11.7 PROCEDURE FOR INDEMNIFICATION - THIRD PARTY CLAIMS.

            (a) Promptly after receipt by an indemnified party under Section
11.2, or 11.3 of notice of the commencement of any Proceeding against it, such
indemnified party will, if a claim is to be made against an indemnifying party
under such Section, give notice to the

                                       40
<PAGE>
indemnifying party of the commencement of such claim, but the failure to notify
the indemnifying party will not relieve the indemnifying party of any liability
that it may have to any indemnified party, except to the extent that the
indemnifying party demonstrates that the defense of such action is prejudiced by
the indemnified party's failure to give such notice.

      (b) If any Proceeding referred to in Section 11.7(a) is brought against an
indemnified party and it gives notice to the indemnifying party of the
commencement of such Proceeding, the indemnifying party will, unless the claim
involves Taxes, be entitled to participate in such Proceeding and, to the extent
that it wishes (unless the indemnifying party is also a party to such Proceeding
and the indemnified party determines in good faith that joint representation
would be inappropriate), to assume the defense of such Proceeding with counsel
satisfactory to the indemnified party and, after notice from the indemnifying
party to the indemnified party of its election to assume the defense of such
Proceeding, the indemnifying party will not, as long as it diligently conducts
such defense, be liable to the indemnified party under this Section 11 for any
fees of other counsel or any other expenses with respect to the defense of such
Proceeding, in each case subsequently incurred by the indemnified party in
connection with the defense of such Proceeding, other than reasonable costs of
investigation. If the indemnifying party assumes the defense of a Proceeding,
(i) it will be conclusively established for purposes of this Agreement that the
claims made in that Proceeding are within the scope of and subject to
indemnification; (ii) no compromise or settlement of such claims may be effected
by the indemnifying party without the indemnified party's consent unless (A)
there is no finding or admission of any violation of Legal Requirements or any
violation of the rights of any Person and no effect on any other claims that may
be made against the indemnified party, and (B) the sole relief provided is
monetary damages that are paid in full by the indemnifying party; and (iii) the
indemnifying party will have no liability with respect to any compromise or
settlement of such claims effected without its consent. If notice is given to an
indemnifying party of the commencement of any Proceeding and the indemnifying
party does not, within ten days after the indemnified party's notice is given,
give notice to the indemnified party of its election to assume the defense of
such Proceeding, the indemnifying party will be bound by any determination made
in such Proceeding or any good faith compromise or settlement effected by the
indemnified party.

      (c) Notwithstanding the foregoing, if an indemnified party determines in
good faith that there is a reasonable probability that a Proceeding may
adversely affect it or its affiliates other than as a result of monetary damages
for which it would be entitled to indemnification under this Agreement, the
indemnified party may, by notice to the indemnifying party, assume the exclusive
right to defend, compromise, or settle such Proceeding, but the indemnifying
party will not be bound by, or obligated to provide indemnification with respect
to (unless the basis therefor is established by a separate Proceeding) any
determination of a Proceeding so defended or any compromise or settlement
effected without its consent (which may not be unreasonably withheld).

      (d) The parties hereto hereby consent to the non-exclusive jurisdiction of
any court in which a Proceeding is brought by any other party other than a Buyer
Indemnified Person or a Shareholder Indemnified Person against any indemnified
party for purposes of any claim that an indemnified party may have under this
Agreement with respect to such Proceeding or the matters alleged therein, and
agree that process may be served on each party hereto with respect

                                       41
<PAGE>
to such a claim anywhere in the world; provided, applicable Legal Requirements
are complied with.

      11.8 PROCEDURE FOR INDEMNIFICATION - OTHER CLAIMS. A claim for
indemnification for any matter not involving a third-party claim may be asserted
by notice to the party from whom indemnification is sought.

            If the Closing occurs, neither Cinemex nor Mexico SRL shall have any
obligation (for indemnification or otherwise) with respect to its
representations and warranties in or pursuant to this Agreement, and the
indemnification obligations of the Shareholders shall not be abated or subject
to any defense that Cinemex or Mexico SRL made the inaccurate representation and
warranty on which the claim is based.

      11.9 ADDITIONAL PROVISIONS REGARDING TAX INDEMNIFICATION. For purposes of
Sections 11.9 through and including 11.13, Shareholders shall mean and include
all of the Shareholders and the other Persons listed on Schedule C, and the
provisions of Sections 11.9 through 11.13 shall only apply to matters involving
the Cinemex Companies and shall not have any application to any matter involving
Mexico SRL (or any Taxes of or payable by Mexico SRL).

            (a) If any of the Cinemex Companies receives any refund (whether
such refund is received directly or indirectly through a right of offset or
credit) of any Pre-Closing Taxes or Taxes otherwise described in Section
11.2(a)(iv) for which the Shareholders have provided indemnification (other than
any refunds in respect of Transfer Taxes, any refunds accrued or reflected on
the books and records of any of the Cinemex Companies as of the Closing Date or
any refunds for which any of the Cinemex Companies has made a claim or initiated
a suit as of the Closing Date), then to the extent that such refund exceeds the
aggregate of (A) any Taxes payable by such Cinemex Company attributable to any
Post-Closing Tax Period which Taxes result from the adjustment to or amendment
of Tax Returns that give rise to the refund in question and (B) the Refund
Threshold, upon the actual or deemed receipt of any such refund by any Cinemex
Company or Buyers, Cinemex shall promptly pay to each Shareholder an aggregate
amount equal to the product of (i) the amount of such refund (including any
interest thereon at the over-payment rate paid by the Governmental Body with
respect to such refund or credit) and (ii) such Shareholder's Percentage. The
Shareholders shall have the right to determine whether any claim for refund for
such Taxes shall be made on behalf of a Cinemex Company. Notwithstanding the
preceding sentence, neither Buyers nor any Cinemex Company shall be required to
file any claim for refund that it reasonably believes is not true, correct and
complete in all material respects. Notwithstanding anything provided in this
Section 11.9(a), Buyers reserve the right to pay any proposed refund or credit
(including interest thereon) to the Sellers in cash (in the manner provided in
the first sentence of this Section 11.9(a)) in lieu of the filing of any amended
Tax Return or claim or suit for refund. If the Shareholders elect to make a
claim for refund, Buyers and the Cinemex Companies shall cooperate fully in
connection therewith. Each Shareholder shall be responsible to reimburse Buyers
and the Cinemex Companies for its Percentage of reasonable out-of-pocket
third-party expenses incurred in providing such cooperation. None of the Cinemex
Companies shall file, and Buyers shall not file, and they shall cause the
Cinemex Companies not to file, any amended Tax Return or any claim for a refund
with respect to Pre-Closing Taxes of any of the Cinemex

                                       42
<PAGE>
Companies (y) without the prior consent of the Shareholders, the granting of
which shall be in the Shareholders' sole discretion; or (z) unless Buyers or the
relevant Cinemex Company in good faith determines that it is required to do so
under applicable Legal Requirements, and Selected Counsel does not, within
thirty days after Shareholders receive notice of such determination, render a
written legal opinion that the Buyers and the Cinemex Companies are not required
to do so under applicable Legal Requirements. Notwithstanding the foregoing, the
Buyers or the relevant Cinemex Company may file a claim for a refund without
meeting any of the conditions in clauses (y) or (z) or the proviso of the
preceding sentence, in which case the Shareholders shall have no obligation to
indemnify any of the Buyers and the Cinemex Companies for any Damages for Taxes
incurred by any of the Buyers or the Cinemex Companies as a consequence of such
filing. In the event that Buyers or any of the Cinemex Companies receives any
refund in respect of Transfer Taxes, Cinemex shall promptly pay to each
Shareholder an amount equal to the product of 50% of such refund and such
Shareholder's Percentage. In the event that any Shareholder receives any refund
in respect of Transfer Taxes, such Shareholder shall promptly pay to Buyers an
amount equal to the product of 50% of the refund received by such Shareholder.

            (b) Buyers shall be entitled to any refund of any Taxes other than a
refund described in Section 11.9(a), including interest thereon. If any such
refund is paid to any Shareholder, such Shareholder shall promptly pay such
refund (including any interest thereon) to Buyers. Buyers shall have the sole
right to determine whether any claim for refund for such Taxes shall be made. If
Buyers elect to make such a claim for refund, the Shareholders shall cooperate
fully in connection therewith. Buyers and the Cinemex Companies shall be jointly
responsible to reimburse the Shareholders for any reasonable out-of-pocket
expenses incurred in providing such cooperation.

            (c) Buyers shall include in their notice of any claim for
indemnification under Section 11.2(a)(iv) a detailed calculation of the amount
of the requested indemnity payment. The Shareholders shall not be obligated to
indemnify Buyers until there has been a Final Determination of the Tax liability
for which indemnification is sought pursuant to Section 11.2(a)(iv). A "Final
Determination" shall mean (i) a final, unappealable decision by a court of
competent jurisdiction, (ii) the expiration of the applicable statute of
limitations, (iii) any other final and irrevocable determination of such Tax
liability, or (iv) the agreement by the Shareholders to pay such Tax liability.
In the event that the pursuit of any Tax Contest (defined in Section 11.9(d)
below) with respect to any Tax liability with respect to which indemnification
under Section 11.2(a)(iv) is sought requires the payment of such Tax or the
posting of any bond or deposit prior to a Final Determination with respect
thereto, the Shareholders shall pay or post any such amount up to the amount for
which they would be required to indemnify the Buyers with respect to such Tax
liability if such Tax liability were finally determined to be due. The amount of
Shareholders' indemnification obligation, if any, shall be reduced by the amount
of Tax benefits realized by Buyers or any of the Cinemex Companies from the
liabilities for which indemnification is made.

            (d) (i) Buyers shall inform the Shareholders, and the Shareholders
shall be entitled to control and conduct those audits, examinations or
proceedings, administrative or judicial (a "Tax Contest"), relating to the
Cinemex Companies that are related to (A) the liability for any Taxes for which
the Shareholders would be required to indemnify Buyers pursuant to

                                       43
<PAGE>
Section 11.2(a)(iv), or (B) a claim for refund for any Taxes that the
Shareholders are entitled to pursuant to this Section 11.9. Costs of any Tax
Contest are to be borne by the party controlling such Tax Contest. Buyers shall
deliver or cause to be delivered to the Shareholders any power of attorney
required to allow the Shareholders and their counsel or accountant to represent
the relevant Cinemex Company in connection with the Tax Contest and shall
provide the Shareholders with such assistance as may be reasonably requested by
the Shareholders in connection with the Tax Contest. The Shareholders shall
reimburse the relevant Cinemex Company for reasonable out-of-pocket third party
expenses incurred in providing such assistance.

            (ii) Notwithstanding Section 11.9(d)(i), the Shareholders shall
      consult in good faith with Buyers with respect to the conduct of, or
      settlement of, any Tax Contest. The Shareholders shall neither consent nor
      agree to the settlement of any Tax Contest without Buyers' prior consent
      which shall not be unreasonably withheld or delayed, if such consent or
      agreement would legally bind, or materially increase the Taxes of, any
      Cinemex Company in a Post- Closing Tax Period; provided, however, that
      Shareholders shall be entitled to settle any such contest, even if such
      settlement would legally bind, or materially increase the Taxes of, any
      Cinemex Company in a Post-Closing Tax Period, so long as Shareholders
      reimburse the Cinemex Companies for any liability for additional Taxes for
      Post-Closing Periods incurred as a consequence of such settlement.

            (iii) Buyers shall inform the Shareholders of any Tax Contest with
      regard to any Tax Return of the Cinemex Companies for an Overlap Period or
      any other Post-Closing Tax Period that may result in an adjustment to any
      Tax for which Shareholders may be liable to indemnify Buyers or any
      Cinemex Company pursuant to this Agreement. Buyers shall control the
      conduct and resolution of any such Tax Contest. Costs of such Tax Contests
      are to be borne by Buyers. Buyers shall consult in good faith with the
      Shareholders with respect to the conduct of, and before entering into any
      settlement of, any Tax Contest that may have a material adverse impact on
      the liability for Taxes of the Shareholders, or any Tax for which the
      Shareholders may be liable to indemnify Buyers or any Cinemex Company
      pursuant to this Agreement, and shall not enter into any such settlement
      without the prior consent of the Shareholders, which consent shall not be
      unreasonably withheld or delayed.

            (iv) The failure of Buyers to inform the Shareholders of a Tax
      Contest on a timely basis shall relieve the Shareholders of any liability
      for Taxes due, as a result of such Tax Contest, unless Buyers can
      demonstrate that the failure to timely notify the Shareholders did not
      prejudice the Shareholders with respect to the Tax liability that resulted
      from such Tax Contest.

            (v) Neither the Shareholders nor any affiliate of the Shareholders
      shall file any amended Tax Return that may affect the Tax liability of
      Buyers or any Cinemex Company or any group of affiliated corporations of
      which Cinemex or any Cinemex Company is a member.

                                       44
<PAGE>
            (vi) Buyers shall not file, and shall not allow any of the Cinemex
      Companies or any affiliate of any of them to file any amended Tax Return
      (other than Tax Returns referred to in Section 11.9(a)), or suit or claim
      for refund that may affect the Tax liability of the Shareholders or any
      liability for Taxes of which Shareholders may indemnify Buyers or any
      Cinemex Company pursuant to this Agreement without the consent of the
      Shareholders, which consent shall not unreasonably be withheld or delayed.

            (vii) In the case of any Tax Contest described in Section
      11.9(d)(i), if notice is given to the Shareholders of the commencement of
      such Tax Contest and the Shareholders do not, within thirty days after
      such notice is given, give notice to Buyers of their election to assume
      the defense of such Tax Contest, the Shareholders will be bound by any
      determination made in such Tax Contest or any good faith compromise or
      settlement effected by Buyers or the relevant Cinemex Company, as the case
      may be.

      11.10 FILING OF THE CINEMEX COMPANIES' TAX RETURNS. The Shareholders shall
prepare and file or cause to be prepared and filed (at the expense of the
Cinemex Companies) on a timely basis all Tax Returns required to be filed prior
to the Closing Date with respect to the Cinemex Companies for Pre-Closing Tax
Periods other than Overlap Periods. Such Tax Returns shall be prepared in a
manner consistent with past practice of the Cinemex Companies. Buyers and the
Cinemex Companies shall cooperate in the execution and filing of such Tax
Returns, provided, however, that Buyers and the Cinemex Companies shall not be
required to execute or file any Tax Return that they reasonably believe is not
true, correct and complete in all material respects; provided further, that
Buyer and the Cinemex Companies shall be deemed to have consented to the
preparation, execution and filing of Tax Returns to the extent they are prepared
in a manner consistent with past practices of the Cinemex Companies. Buyers
shall prepare and file or cause to be prepared and filed all other Tax Returns
and reports of the Cinemex Companies. Buyers shall prepare or shall cause to be
prepared Tax Returns for Pre-Closing Tax Periods required to be filed after the
Closing Date, including Tax Returns for Overlap Periods, in a manner consistent
with past practice of the Cinemex Companies. Shareholders shall be provided with
and have the right to review any such Tax Return at least 30 days prior to the
due date of such Tax Return, and such Tax Return shall not be filed without
Shareholders' consent, which shall not be unreasonably withheld or delayed.
Shareholders shall be deemed to have consented to the preparation, execution and
filing of such Tax Returns to the extent they are prepared in a manner
consistent with past practice of the Cinemex Companies.

      11.11 COOPERATION ON THE CINEMEX COMPANIES' TAX MATTERS. The Shareholders,
Buyers and the Cinemex Companies and their respective affiliates will provide
the other parties with such assistance as may reasonably be requested by any of
them in connection with the preparation of any Tax Return, any Tax Contests, any
refund claims or any other claim arising under this Agreement, and each will
retain and provide the others with any records or information that may be
relevant to any such Tax Return, audit or examination, proceeding or claim. Such
assistance shall include making employees available on a mutually convenient
basis to provide additional information and explanation of any material provided
hereunder and shall include providing copies of any relevant Tax Returns and
supporting work schedules. The party requesting assistance hereunder shall
reimburse the other parties for reasonable out of pocket third- party expenses
incurred in providing such assistance. Notwithstanding any other provision

                                       45
<PAGE>
of this Agreement, Buyers hereby agree that they will retain, or cause the
relevant Cinemex Company to retain, until all appropriate statutes of limitation
(including any extensions) expire, copies of all Tax Returns, supporting work
schedules and other records or information which may be relevant to such Tax
Returns, and that they will not destroy or otherwise dispose of, and will not
allow any of the Cinemex Companies to destroy or otherwise dispose of, such
materials without first providing the Shareholders with a reasonable opportunity
to review and copy such materials.

      11.12 ALLOCATION OF TAX LIABILITY FOR OVERLAP PERIODS. In the case of a
Tax Return for a Cinemex Company for an Overlap Period based upon income, gross
receipts (such as sales Taxes) or specific transactions involving Taxes other
than Taxes based upon income or gross receipts, the allocation of Taxes between
the period ending on the Closing Date and the period after the Closing Date
shall be made by means of an interim closing of the books and records of the
Cinemex Company as of the close of the Closing Date and by treating each period
within the Overlap Period as a separate taxable year, provided that exemptions,
allowances or deductions that are calculated on an annual basis (including, but
not limited to, depreciation and amortization deductions) shall be allocated
between the period ending on the Closing Date and the period after the Closing
Date in proportion to the number of days in each such period. Notwithstanding
the foregoing, if the liability for Taxes for an Overlap Period is determined on
a basis other than income or gross receipts or other than with respect to a
specific transaction, the allocation of Taxes to the period ending on the
Closing Date included in the Overlap Period shall be equal to the amount of such
Taxes for the Overlap Period multiplied by a fraction, the numerator of which is
the number of days in such period ending on the Closing Date and the denominator
of which is the total number of days in the Overlap Period, and the amount of
such Taxes allocated to the period beginning after the Closing Date included in
the Overlap Period shall be excess of the amount of the Taxes for the Overlap
Period over the amount of Taxes attributable to the period ending on the Closing
Date included in such Overlap Period. If the liability for Taxes for the Overlap
Period is increased as a result of any action taken by Buyers or any of the
Cinemex Companies on or after the Closing Date, the portion of such additional
liability for Taxes allocated to the period ending on the Closing Date shall be
borne by Buyers.

      11.13 CERTAIN MISCELLANEOUS TAX MATTERS.

            (a) Buyers and the Cinemex Companies shall not, and Buyer shall
cause the Cinemex Companies not to, make or change any elections, change an
annual accounting period, or adopt or change any accounting method with respect
to any of the Cinemex Companies in a Post-Closing Tax Period, if such action
would have the effect of increasing the Pre-Closing Taxes of any of the Cinemex
Companies (i) without the prior consent of the Shareholders, the granting of
which shall be in the Shareholders' sole discretion; or (ii) unless Buyers or
the relevant Cinemex Company in good faith determines that it is required to do
so under applicable Legal Requirements, and Selected Counsel does not, within
thirty days after Shareholders receive notice of such determination, render a
written legal opinion that the Buyers and the Cinemex Companies are not required
to do so under applicable Legal Requirements. Notwithstanding the foregoing, the
Buyers or the relevant Cinemex Company may take the contemplated action without
meeting any of conditions in clauses (i) or (ii) or the proviso of the preceding
sentence, in which case the Shareholders shall have no obligation to indemnify
any of

                                       46
<PAGE>
the Buyers and the Cinemex Companies for any Damages for Taxes incurred by any
of the Buyers and the Cinemex Companies as a consequence of such actions.

            (b) Each of Shareholders and Buyers agree not to cause any of the
Cinemex Companies to engage in any transaction on the Closing Date outside of
the ordinary course of business, except the transactions contemplated by this
Agreement.

            (c) The Shareholders will be responsible for any Tax liability that
may arise or derive from the execution and consummation of the Contemplated
Transactions.

            (d) Buyers shall pay fifty percent (50%) of all Transfer Taxes
arising in respect of the direct transfer of shares of Cinemex contemplated
under the Cinemex Purchase Agreement.

      11.14 NOTICES AND DETERMINATION BY SHAREHOLDERS. With respect to any claim
for indemnification made under Section 11.2(a) or any provision of this Section
11 which contemplates a determination by, a notice from, a consent of, or any
other action by, the Shareholders, such determination by, notice from, consent
of, or other action by, the Shareholders shall, except as provided in this
Section 11.14, require a determination of, notice of or to, consent of, or other
action by, all Shareholders, all Series P Shareholders, Matthew D. Heyman,
Adolfo Fastlicht Kurian and Miguel Angel Davila Guzman. However, (i) the
Shareholders may exercise their right as an indemnifying party to participate
in, but not assume or control, the defense of an action or proceeding under
Section 11.7 at their own expense and (ii) any combination of Shareholders,
Series P Shareholders, Matthew D. Heyman, Adolfo Fastlicht Kurian and Miguel
Angel Davila Guzman with an aggregate Percentage in excess of 50% may assume the
defense of an action or proceeding in accordance with Section 11.7 if they
irrevocably agree with Buyers and Cinemex that for purposes of indemnification
and reimbursement for the matter to which such action or proceeding relates that
their aggregate Percentage (for purposes of this Agreement, the Cinemex Purchase
Agreement and the Inducement Agreement) shall be 100% (allocated among them in
proportion to their respective Percentages) and designate a representative for
the conduct of such defense. If clause (ii) of the preceding sentence is
applicable to a matter which results in Damages that would be subject to
indemnification under Section 11.2(a) without regard to Section 11.5 (a
"Reallocated Matter"), then Section 11.5 shall be applied to any other matter
that may be the subject of indemnification under Section 11.2(a) as if the
Percentages and Hoyts Attributable Damages applicable to, and any, payments made
with respect to, the Reallocated Matter had been determined without regard to
such clause (ii). All determinations, notices, consents and other actions
referred to in this Section 11.14 must also be made or given under the Cinemex
Purchase Agreement and the Inducement Agreement.

      11.15 FILING OF TAX MEXICO SRL RETURNS. The Shareholders shall prepare and
file or cause to be prepared and filed (at the expense of Mexico SRL) on a
timely basis all Tax Returns with respect to Mexico SRL for Pre-Closing Tax
Periods other than Overlap Periods. Such Tax Returns shall be prepared in a
manner consistent with past practice of Mexico SRL. Buyers and Mexico SRL shall
cooperate in the execution and filing of such Tax Returns, provided, however,
that Buyers and Mexico SRL shall not be required to execute or file any Tax
Return that they reasonably believe is not true, correct and complete in all
material respects; provided further, that

                                       47
<PAGE>
Buyers and Mexico SRL shall be deemed to have consented to the preparation,
execution and filing of Tax Returns to the extent they are prepared in a manner
consistent with past practices of Mexico SRL. Buyers shall prepare and file or
cause to be prepared and filed all other Tax Returns and reports of Mexico SRL.
Buyers shall prepare or shall cause to be prepared Tax Returns for Overlap
Periods in a manner consistent with past practice of Mexico SRL. Shareholders
shall have the right to review any such Tax Return at least 30 days prior to the
due date of such Tax Return, and such Tax Return shall not be filed without
Shareholders' consent, which shall not be unreasonably withheld or delayed.
Shareholders shall be deemed to have consented to the preparation, execution and
filing of such Tax Returns to the extent they are prepared in a manner
consistent with past practice of Mexico SRL.

      11.16 COOPERATION ON MEXICO SRL TAX MATTERS. The Shareholders, Buyers and
Mexico SRL and their respective affiliates will provide the other parties with
such assistance as may reasonably be requested by any of them in connection with
the preparation of any Tax Return, any Tax Contests, or any other claim arising
under this Agreement, and each will retain and provide the others with any
records or information that may be relevant to any such Tax Return, audit or
examination, proceeding or claim. Such assistance shall include making employees
available on a mutually convenient basis to provide additional information and
explanation of any material provided hereunder and shall include providing
copies of any relevant Tax Returns and supporting work schedules. The party
requesting assistance hereunder shall reimburse the other parties for reasonable
out of pocket third-party expenses incurred in providing such assistance.
Notwithstanding any other provision of this Agreement, Buyers hereby agree that
they will retain, or cause Mexico SRL to retain, until all appropriate statutes
of limitation (including any extensions) expire, copies of all Tax Returns,
supporting work schedules and other records or information which may be relevant
to such Tax Returns, and that it will not destroy or otherwise dispose of such
materials without first providing the Shareholders with a reasonable opportunity
to review and copy such materials.

      11.17 USE OF COMMERCIALLY REASONABLE EFFORTS. From and after the Closing
Date, Cinemex shall, and Buyers shall cause the relevant Cinemex Companies to,
use their commercially reasonable efforts to prevent the occurrence of any
Disruption and/or the Santa Fe Event.

12.   OTHER POST-CLOSING MATTERS.

      12.1 RELEASE AND DISCHARGE.

            (a) Subject to Section 12.2, effective immediately and automatically
upon the occurrence of the Closing, each of the Shareholders on behalf of itself
and each of its respective Related Persons (other than Mexico SRL and the
Cinemex Companies), hereby releases and forever discharges each of the Buyers,
Mexico SRL and each Cinemex Company, and each of their respective individual,
joint or mutual, past, present and future Representatives, affiliates,
stockholders, controlling persons, subsidiaries, successors and assigns
(individually, a "Releasee" and collectively, "Releasees") from any and all
claims, demands, Proceedings, causes of action, Orders, obligations, Contracts,
agreements, debts and liabilities whatsoever, whether known or unknown,
suspected or unsuspected, both at law and in equity, which each of the
Shareholders or any of their respective Related Persons now has, have ever had
or may hereafter

                                       48
<PAGE>
have against the respective Releasees arising contemporaneously with or prior to
the Closing Date or on account of or arising out of any matter, cause or event
occurring contemporaneously with or prior to the Closing Date, including, but
not limited to, any rights to indemnification or reimbursement from Mexico SRL
or any Cinemex Company, whether pursuant to its respective Organizational
Documents, Contract or otherwise and whether or not relating to claims pending
on, or asserted after, the Closing Date.

            (b) Effective immediately and automatically upon the occurrence of
the Closing, each of the Shareholders on behalf of itself and each of its
Related Persons (other than Mexico SRL and each Cinemex Company) hereby
irrevocably covenant to refrain from, directly or indirectly, asserting any
claim or demand, or commencing, instituting or causing to be commenced, any
proceeding of any kind against any Releasee, based upon any matter purported to
be released hereby.

            (c) Effective immediately and automatically upon the occurrence of
the Closing, without in any way limiting any of the rights and remedies
otherwise available to any Releasee, the Shareholders, jointly and severally,
shall indemnify and hold harmless each Releasee from and against all loss,
liability, claim, damage (including incidental and consequential damages) or
expense (including costs of investigation and defense and reasonable attorney's
fees) whether or not involving third party claims, arising directly or
indirectly from or in connection with (i) the assertion by or on behalf of any
Shareholder or any of their respective Related Persons of any claim or other
matter purported to be released pursuant to this Section 12.1 and (ii) the
assertion by any third party of any claim or demand against any Releasee which
claim or demand arises directly or indirectly from, or in connection with, any
assertion by or on behalf of any Shareholder or any of their Related Persons
against such third party of any claims or other matters purported to be released
pursuant to this Section 12.1.

      12.2 REDEMPTION. On the first business day immediately following the
Closing Date, Mexico SRL hereby irrevocably agrees to redeem and Barbados
irrevocably agrees to submit, surrender and deliver the Retained Interests to
Mexico SRL for redemption, in accordance with all applicable Legal Requirements,
Order and Contracts and the Organizational Documents of Mexico SRL (the
"Redemption"). The redemption price shall be $265'179,944 pesos (the "Redemption
Price") of which an amount equal to the amount of the Intercompany Receivable
will be satisfied by assignment without recourse of the Intercompany Receivable
to Barbados and (i) Barbados agrees to accept the Intercompany Receivable in
partial payment of the Redemption Price in the amount of $34'182,225 pesos, (ii)
all of the Shareholders agree that none of Mexico SRL or Buyers makes any
representation or warranty with respect to the existence, validity, amount,
collectibility of, or any other matter relating to, the Intercompany Receivable,
(iii) all of the Shareholders agree that none of Mexico SRL or Buyers shall have
any liability or obligation whatsoever relating to the Intercompany Receivable
and/or the agreement between Mexico SRL and The Hoyts Corporation Pty. Ltd.,
dated January 11, 2002, relating to the Intercompany Receivable and the
Shareholders shall jointly and severally indemnify and hold harmless Mexico SRL
and/or Buyers from any liability or obligations incurred by any of them with
respect to such agreement and/or the Intercompany Receivable and (iv) all of the
Shareholders agree that the assignment of the Intercompany Receivable shall
automatically occur simultaneously with the Redemption without any additional
action on the part of any party. Upon delivery of the Retained Interests to
Mexico SRL, the Retained Interests will no longer be

                                       49
<PAGE>
outstanding, and no Person, including, without limitation, Barbados, will have
any claim, right or entitlement relating to the Retained Interests or to any
payment in respect thereof. During the time from the Closing until the
Redemption, Barbados shall take no action with respect to the Retained Interests
(and shall not transfer, sell, assign, suffer any Encumbrance to or otherwise
dispose of any Retained Interests) other than to submit the Retained Interests
for Redemption. Buyers shall cause Mexico SRL to effectuate the Redemption in
accordance with this Section 12.2.

      12.3 SUCCESSORS. Each of the Parents hereby agrees that it will not
consummate any merger, consolidation, amalgamation, scheme of arrangement, sale
or other disposition of all or substantially all of its assets or businesses
(whether in one or a series of related transactions) or any similar transaction
or dissolve or liquidate, unless the successor or transferor Person (or Person
who receives assets or businesses in such dissolution or liquidation) in each
such transaction unconditionally assumes, by written instrument delivered to the
Buyers, the obligations of such Parent under this Agreement; provided that such
assumption will in no way relieve any Parent from its obligations under this
Agreement.

      12.4 NAME CHANGE. Buyers agree that they will cause Mexico SRL to change
its name so as to delete the word "Hoyts" from its corporate name within 60 days
after the Closing Date.

13.   GENERAL PROVISIONS.

      13.1 EXPENSES. Except as otherwise expressly provided in this Agreement,
each party to this Agreement will bear their respective expenses incurred in
connection with the preparation, execution and performance of this Agreement and
the Contemplated Transactions, including all fees and expenses of agents,
Representatives, counsel and accountants. In the event of termination of this
Agreement, the obligation of each party to pay its own expenses will be subject
to any rights of such party arising from a Breach of this Agreement by another
party.

      13.2 PUBLIC ANNOUNCEMENTS. Any public announcement or similar publicity
with respect to this Agreement or the Contemplated Transactions will be issued,
if at all, at such time and in such manner as Buyers and Parents may agree.
Unless consented to by the parties hereto in advance or required by Legal
Requirements, prior to the Closing, Buyers, each Shareholder, Cinemex and Mexico
SRL shall, and Shareholders shall cause Mexico SRL to, keep this Agreement
strictly confidential and may not make any disclosure of this Agreement to any
Person. The Shareholders and Buyers will consult with each other concerning the
means by which the Cinemex Companies' employees, customers and suppliers and
others having dealings with the Cinemex Companies will be informed of the
Contemplated Transactions, and Buyers and Cinemex will each have the right to be
present for any such communication.

      13.3 NOTICES. All notices, consents, waivers, and other communications
under this Agreement must be in writing and will be deemed to have been duly
given when (a) delivered by hand (with written confirmation of receipt), (b)
sent by telecopier (with written confirmation of receipt), provided that a copy
is mailed by registered mail, return receipt requested or (c) when received by
the addressee, if sent by an internationally recognized overnight delivery
service (receipt requested), in each case to the appropriate addresses and
telecopier numbers set forth

                                       50
<PAGE>
below (or to such other addresses and telecopier numbers as another party may
designate by notice to the other parties):

            Buyers or Mexico SRL to:

                  Symphony Acquisition Vehicle, S.A. de C.V.
                  and Cinemex Acquisition Corp.
                  c/o Creel, Garcia-Cuellar y Muggenburg, S.C.
                  Paseo de los Tamarindos 60
                  Bosques de Las Lomas
                  05120 Mexico, D.F.
                  Attention:  Carlos Creel Carrera
                  Facsimile No.:  (011) 5255-1105-0690

            with copies to:

                  Onex Investment Corporation
                  712 5th Avenue, 40th Floor
                  New York, New York  10019
                  Attention:  Anthony Munk
                  Facsimile No.:  (212) 582-0909

                  Oaktree Capital Management, LLC
                  333 South Grand Avenue, 28th Floor
                  Los Angeles, California  90071
                  Attention:  Kenneth Liang
                  Facsimile No.:  (213) 830-8522

                  and

                  Kaye Scholer LLP
                  425 Park Avenue
                  New York, New York  10022
                  Attention:  Joel I. Greenberg
                  Facsimile No.:  (212) 836-8211

            Parents, Sellers, Strawinsky, Barbados and Mexico SRL to:

                  Hoyts Cinemas Limited
                  505-523 George Street
                  Sydney, N.S.W. Australia 200
                  Attention:  Paul Johnson
                  Facsimile No.:  (612) 9273 7322

                                       51
<PAGE>
            with a copy to:

                  Basham, Ringe y Correa, S.C.
                  Paseo de los Tamarindos 400-A, piso 9,
                  Col. Bosques de Las Lomas
                  Mexico, D.F.
                  Attention:  Daniel A. del Rio
                  Facsimile No.:  (011) 5255-5261-0496

            with copies to:

                  Proskauer Rose LLP
                  1585 Broadway
                  New York, NY  10036-829
                  Attention:  Adam J. Kansler
                  Facsimile No.:  212.969.2900

                  Franck, Galicia y Robles, S.C.
                  Torre Del Bosque
                  Blvd. Manuel Avila Camacho 24, Piso 7
                  Col. Lomas De Chapultepec
                  11000 Mexico, Distrito Federal
                  Attention:  Rafael Robles Miaja
                  Facsimile No.:  (011) 5255-5540-9202

            with a copy to:

                  Creel, Garcia-Cuellar y Muggenburg, S.C. Paseo de los
                  Tamarindos 60 Bosques de Las Lomas 05120 Mexico, D.F.
                  Attention:  Carlos Creel Carrera
                  Facsimile No.:  (011) 5255-1105-0690

            Cinemex to:

                  Grupo Cinemex, S.A. de C.V.
                  Blvd. M. Avila Camacho No. 40, Piso 16
                  Lomas de Chapultepec
                  11000 Mexico, D.F.
                  Attention:  President
                  Facsimile No.:  (011) 5255-5201-5812
                                    and
                                (011) 5255-5201-5889

                                       52
<PAGE>
            with copies to:

                  Onex Investment Corporation
                  712 5th Avenue, 40th Floor
                  New York, New York  10019
                  Attention:  Anthony Munk
                  Facsimile No.:  (212) 582-0909

                  Oaktree Capital Management, LLC
                  333 South Grand Avenue, 28th Floor
                  Los Angeles, California  90071
                  Attention:  Kenneth Liang
                  Facsimile No.:  (213) 830-8522

                  and

                  Kaye Scholer LLP
                  425 Park Avenue
                  New York, New York  10022
                  Attention:  Joel I. Greenberg
                  Facsimile No.:  (212) 836-8211

            with a copy to:

                  Creel, Garcia-Cuellar y Muggenburg, S.C. Paseo de los
                  Tamarindos 60 Bosques de Las Lomas 05120 Mexico, D.F.
                  Attention:  Carlos Creel Carrera
                  Facsimile No.:  (011) 5255-1105-0690

      13.4 FURTHER ASSURANCES. The parties agree (a) to furnish upon request to
each other such further information, (b) to execute and deliver to each other
such other documents and (c) to do such other acts and things, all as the other
party may reasonably request for the purpose of carrying out the intent of this
Agreement and the documents referred to in this Agreement.

      13.5 WAIVER. The rights and remedies of the parties to this Agreement are
cumulative and not alternative. Neither the failure nor any delay by any party
in exercising any right, power or privilege under this Agreement or the
documents referred to in this Agreement will operate as a waiver of such right,
power or privilege, and no single or partial exercise of any such right, power
or privilege will preclude any other or further exercise of such right, power or
privilege or the exercise of any other right, power or privilege. To the maximum
extent permitted by applicable law, (a) no claim or right arising out of this
Agreement or the documents referred to in this Agreement can be discharged by
one party, in whole or in part, by a waiver or renunciation of the claim or
right unless in writing signed by the other parties; (b) no waiver that may be
given by a party will be applicable except in the specific instance for which it
is given; and (c) no notice to or demand on one party will be deemed to be a
waiver of any obligation of such party

                                       53
<PAGE>
or of the right of the party giving such notice or demand to take further action
without notice or demand as provided in this Agreement or the documents referred
to in this Agreement.

      13.6 ENTIRE AGREEMENT AND MODIFICATION. This Agreement supersedes all
prior agreements between the parties (other than the Confidentiality Agreement)
with respect to its subject matter and constitutes (along with the documents
referred to in this Agreement) a complete and exclusive statement of the terms
of the agreement between the parties with respect to its subject matter. This
Agreement may not be amended except by a written agreement executed by Buyers,
in the event Buyers are to be charged with the amendment or by each Shareholder,
in the event the Shareholders are to be charged with the amendment.

      13.7 SCHEDULES.

            (a) The disclosures in the Schedules, and those in any supplement
thereto, must relate only to the representations and warranties in the Section
of the Agreement to which they expressly relate, except to the extent that any
information disclosed in any Schedule to the representations or warranties of
Cinemex, Mexico SRL or any Shareholder would on its face be manifestly relevant
to another such Schedule.

            (b) In the event of any inconsistency between the statements in the
body of this Agreement and those in the Schedules hereto (other than an
exception expressly set forth as such in the Schedules with respect to a
specifically identified representation or warranty), the statements in the body
of this Agreement will control.

            (c) Schedule B (including the Annexes to Schedule B hereto)
constitutes a part of this Agreement as if the provisions thereof were set forth
in their entirety in this Agreement.

      13.8 ASSIGNMENTS, SUCCESSORS, AND NO THIRD-PARTY RIGHTS. No party may
assign any of its rights under this Agreement without the prior consent of the
other parties, which will not be unreasonably withheld. Subject to the preceding
sentence, this Agreement will apply to, be binding in all respects upon and
inure to the benefit of the successors and permitted assigns of the parties.
Nothing expressed or referred to in this Agreement will be construed to give any
Person other than the parties to this Agreement any legal or equitable right,
remedy, or claim under or with respect to this Agreement or any provision of
this Agreement, except as specifically contemplated by Section 11 and 12.1. This
Agreement and all of its provisions and conditions are for the sole and
exclusive benefit of the parties to this Agreement and their successors and
assigns and the other Persons identified in Section 11 and 12.1. Notwithstanding
anything contained in this Section 13.8, no prior consent of the parties shall
be required for (i) the collateral assignment by Buyers to any lender of Buyers
for security purposes and the assignment thereof by any such lender or agent to
any purchaser in connection with the exercise by any such lender or agent of all
of its rights and remedies as a secured creditor with respect thereto, and (ii)
the transfer, assignment or designation of Buyers of any or all of its rights
hereunder, including, but not limited to, the Transferred Interests, to one or
more of its affiliates or Related Persons.

                                       54
<PAGE>
      13.9 SEVERABILITY. If any provision of this Agreement is held invalid or
unenforceable by any court of competent jurisdiction, the other provisions of
this Agreement will remain in full force and effect. Any provision of this
Agreement held invalid or unenforceable only in part or degree will remain in
full force and effect to the extent not held invalid or unenforceable.

      13.10 SECTION HEADINGS, CONSTRUCTION. The headings of Sections in this
Agreement are provided for convenience only and will not affect its construction
or interpretation. All references to "Section" or "Sections" refer to the
corresponding Section or Sections of this Agreement. All words used in this
Agreement will be construed to be of such gender or number as the circumstances
require. Unless otherwise expressly provided, the word "including" does not
limit the preceding words or terms.

      13.11 GOVERNING LAW. The parties agree that this Agreement shall be
governed by and construed in accordance with the applicable laws of Mexico City,
Federal District, Mexico, without giving effect to laws, rules or principles
regarding the conflicts of laws.

      13.12 JURISDICTION. For any controversy related to this Agreement, the
parties hereto hereby expressly submit to the exclusive jurisdiction and
competence of the courts sitting in Mexico City, Federal District, Mexico,
including, but not limited to, the in personam and subject matter jurisdiction
of those courts, and the parties hereto hereby waive any right they may have to
submit to any other jurisdiction by reason of their domiciles or by any other
reason.

      13.13 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute
one and the same agreement.

                                    * * * * *

                                       55
<PAGE>
      IN WITNESS WHEREOF, the parties have executed and delivered this Agreement
as of the date first written above.

                                     SYMPHONY ACQUISITION VEHICLE, S.A. DE
                                     C.V.
                                     By:   /s/ Timothy A.R. Duncanson
                                           -------------------------------------
                                           Name: Timothy A.R. Duncanson
                                           Title:   Vice President

                                     CINEMEX ACQUISITION CORP.

                                     By:   /s/ Timothy A.R. Duncanson
                                           -------------------------------------
                                           Name: Timothy A.R. Duncanson
                                           Title:  Vice President and
                                           Assistant Secretary

                                     GRUPO CINEMEX, S.A. DE C.V.

                                     By:   /s/ Adolfo Fastlicht
                                           -------------------------------------
                                           Name: Adolfo Fastlicht
                                           Title:  Co-Director General
<PAGE>
                                     CONSOLIDATED PRESS HOLDINGS LIMITED
                                     By:   /s/ Graham Gubbin
                                           -------------------------------------
                                           Name: Graham Gubbin
                                           Title:  Director

                                     HOYTS CINEMAS LTD.

                                     By:   /s/ Paul Johnson
                                           -------------------------------------
                                           Name: Paul Johnson
                                           Title:  Director

                                     HOYTS EUROPEAN HOLDING, B.V.

                                     By:   /s/
                                           -------------------------------------
                                           Name:
                                           Title: Trust International
                                           Management (T.I.M.) B.V.
                                           Managing Director

                                     HOYTS CINEMAS AMERICA LIMITED

                                     By:   /s/ Paul Johnson
                                           -------------------------------------
                                           Name: Paul Johnson
                                           Title:  Director
<PAGE>
                                     STICHTING ADMINISTRATIEKANTOOR
                                     STRAWINSKY
                                     By:   /s/
                                           -------------------------------------
                                           Name:
                                           Title:

                                     HOYTS EMERGING TERRITORIES, LTD.

                                     By:   /s/ Paul Johnson
                                           -------------------------------------
                                           Name: Paul Johnson
                                           Title:  Director

                                     CINEMAS HOYTS DE MEXICO, S. DE R.L. DE
                                     C.V.

                                     By:   /s/ Paul Johnson
                                           -------------------------------------
                                           Name: Paul Johnson
                                           Title:  Director

                                     By:   /s/ Paul Sheen
                                           -------------------------------------
                                           Name: Paul Sheen
                                           Title:  Corporate Financial
                                           Controller
<PAGE>
                                   SCHEDULE A

                              CORPORATE STRUCTURE:
                   CINEMAS HOYTS DE MEXICO, S. DE R.L. DE C.V.

<TABLE>
<CAPTION>
                                       Equity
       Partners                        Interest                  Value (in pesos)
       --------                        --------                  ----------------
                                                     Series A           Series B        Series P
<S>                                    <C>          <C>               <C>             <C>
Hoyts European Holding, B.V                1        $   49,800        $  3,768,200
Hoyts Cinemas America                      1        $      100        $      3,800
Limited
Stichting
Administratiekantoor                       1        $      100
Strawinsky
Hoyts Emerging Territories,                1                                          $195,841,953
Ltd.
Subtotal                                   4        $   50,000        $  3,772,000    $195,841,953

TOTAL                           $199,663,953
</TABLE>

                                    Sch. A-1
<PAGE>
                                   SCHEDULE B

                    REPRESENTATIONS AND WARRANTIES OF CINEMEX

5.    REPRESENTATIONS AND WARRANTIES OF CINEMEX.

      For purposes of this Schedule B, capitalized terms have the meanings set
forth in the Agreement or as specified or referred to at the end of this
Schedule B.

      Cinemex represents and warrants to Buyers:

      5.1 ORGANIZATION. Annex 5.1 to this Schedule B sets forth a complete and
accurate list of the Cinemex Companies (including the identity of each
stockholder or other equity holder and the number of shares of capital stock
held by each). Each Cinemex Company is a corporation duly organized and validly
existing under the laws of Mexico, with full corporate power and authority to
conduct its business as it is now being conducted, to own or use the properties
and assets that it purports to own or use and to perform all of its obligations
under the Applicable Contracts. Cinemex holds interests in each Partly-Owned
Person as set forth in Annex 5.1 to this Schedule B.

      5.2 AUTHORITY; NO CONFLICT.

            (a) The execution, delivery and performance by Cinemex of this
Agreement, the Cinemex Purchase Agreement, the Inducement Agreement and the
Ancillary Agreements to which Cinemex is a party, and the consummation and
performance by Cinemex of the Contemplated Transactions have been duly
authorized by all necessary action on the part of Cinemex. This Agreement, the
Cinemex Purchase Agreement, the Inducement Agreement and each of the Ancillary
Agreements to which Cinemex is a party constitute the legal, valid and binding
obligations of Cinemex, enforceable against Cinemex in accordance with their
terms. Cinemex has the absolute and unrestricted right, power and authority to
execute and deliver this Agreement, the Cinemex Purchase Agreement, the
Inducement Agreement and each of the Ancillary Agreements to which Cinemex is a
party and to perform its obligations hereunder and thereunder.

            (b) Except as set forth in Annex 5.2 to this Schedule B, neither the
execution and delivery of this Agreement, the Cinemex Purchase Agreement, the
Inducement Agreement or any of the Ancillary Agreements to which Cinemex is a
party, nor the consummation or performance of any of the Contemplated
Transactions will, directly or indirectly (with or without notice or lapse of
time):

            (i) contravene, conflict with, or result in a violation of (1) any
      provision of the Organizational Documents of the Cinemex Companies, or (2)
      any resolution adopted by the board of directors (or similar governing
      body) or the stockholders of any Cinemex Company;

            (ii) contravene, conflict with, or result in a violation of any
      Mexican Legal Requirement or any Order to which any Cinemex Company, or
      any of the assets owned or used under legal title by any Cinemex Company,
      may be subject;

                                    Sch. B-1
<PAGE>
            (iii) contravene, conflict with, or result in a violation of any of
      the terms or requirements of, or give any Mexican Governmental Body the
      right to revoke, withdraw, suspend, cancel, terminate or modify, any
      Mexican Governmental Authorization that is held by any Cinemex Company or
      that otherwise relates to the business of, or any of the assets owned or
      used by, any Cinemex Company;

            (iv) cause any Cinemex Company to become subject to, or to become
      liable for the payment of, any Mexican Tax;

            (v) cause any of the assets owned by any Cinemex Company to be
      reassessed or revalued by any taxing authority or other Governmental Body;

            (vi) contravene, conflict with or result in a violation or breach of
      any provision of, or give any Person the right to declare a default or
      exercise any remedy under, or to accelerate the maturity or performance
      of, or to cancel, terminate or modify, any Applicable Contract listed on
      Annex 5.17(a) to this Schedule B; or

            (vii) result in the imposition or creation of any Encumbrance upon
      or with respect to any of the assets owned or used under legal title by
      any Cinemex Company.

      Except as set forth in Annex 5.2 to this Schedule B, no Cinemex Company is
or will be required to give any notice to or obtain any Consent from any Person
in connection with the execution and delivery of this Agreement or the
consummation or performance of the Contemplated Transactions.

      5.3 CAPITALIZATION AS OF IMMEDIATELY PRIOR TO THE RECAPITALIZATION. As of
immediately prior to the Recapitalization, the authorized capital stock of
Cinemex consisted of 4,381,498 shares of Common Stock, of which 3,801,449 shares
of Common Stock were issued and outstanding. Cinemex's stock registry book
reflects that, as of immediately prior to the Recapitalization, each Person
named on Annex 5.3 to this Schedule B was the holder of the shares of Common
Stock set forth opposite such Person's name on Annex 5.3 to this Schedule B (in
the amounts indicated on Annex 5.3 to this Schedule B). All of the shares of
each Cinemex Company issued and outstanding as of immediately prior to the
Recapitalization were duly authorized and validly issued and were fully paid and
nonassessable.

      5.4 RECAPITALIZATION.

            (a) Each step of the Recapitalization (i) was effected by Cinemex on
June 7, 2002, pursuant to the General Shareholders Meeting, (ii) was duly
authorized by all necessary action on the part of Cinemex and its shareholders,
(iii) did not contravene, conflict with, or result in a violation of (1) any
provision of Cinemex's Organizational Documents, or (2) any resolution adopted
by Cinemex's board of directors or its shareholders and (iv) did not contravene,
conflict with, or result in a violation of any Mexican Legal Requirement or any
Order to which any Cinemex Company, was subject. A true and complete copy of
Cinemex's bylaws as amended in the Recapitalization is attached to Annex 5.4 to
this Schedule B.

                                    Sch. B-2
<PAGE>
            (b) The General Shareholders Meeting was duly called as instructed
by Cinemex's board of directors and complied with all provisions of Cinemex's
Organizational Documents and all Mexican Legal Requirements. A true and correct
copy of the minutes of the General Shareholders Meeting is attached to Annex 5.4
to this Schedule B.

      5.5 CURRENT CAPITALIZATION. After giving effect to the Recapitalization
and at all times thereafter through the Closing:

            (a) The authorized capital stock of Cinemex consists of 209,773
shares of Common Stock, 3,140,347 shares of Series P Preferred Stock, and
426,121 shares of Series PRD Preferred Stock, all of which are issued and
outstanding. Annex 5.5(a) to this Schedule B contains an accurate and complete
list of all of the holders of the Common Stock, the Series P Preferred Stock and
the Series PRD Preferred Stock (including the number (and type) of shares held
by each such holder). Cinemex's stock registry book reflects that each Person
named on Annex 5.5(a) to this Schedule B is the holder of the shares of Common
Stock, Series P Preferred Stock or Series PRD Preferred Stock, as the case may
be, set forth opposite such Person's name on Annex 5.5(a) to this Schedule B (in
the amounts indicated on Annex 5.5(a) to this Schedule B), and no Encumbrances
on such shares of capital stock are recorded on such stock registry book. All of
the shares of the Cinemex Companies have been duly authorized and validly issued
and are fully paid and nonassessable.

            (b) Cinemex's stock registry book does not reflect that there are
any Contracts relating to the issuance, sale or transfer of any equity
securities of any Cinemex Company or the repurchase, redemption or other
acquisition of any equity securities of any Cinemex Company. There are no
Contracts to which any Cinemex Company is a party relating to the issuance, sale
or transfer of any equity securities of any Cinemex Company or the repurchase,
redemption or other acquisition of any equity securities of any Cinemex Company.
Cinemex's stock registry book does not reflect any options, warrants,
convertible securities or rights that are or may become exercisable or
exchangeable for, convertible into, or that otherwise give the holder any right
to acquire shares of capital stock of any Cinemex Company or to receive payments
based in whole or in part upon the value of the capital stock of any Cinemex
Company. There are no options, warrants, convertible securities or rights to
which any Cinemex Company is a party that are or may become exercisable or
exchangeable for, convertible into, or that otherwise give the holder any right
to acquire shares of capital stock of any Cinemex Company or to receive payments
based in whole or in part upon the value of the capital stock of any Cinemex
Company. None of the equity securities of Cinemex were issued in violation of
any Mexican Legal Requirement. Except as set forth in Annex 5.5(b) to this
Schedule B, no Cinemex Company owns, or has any Contract to acquire, any equity
securities of any Person (other than any Subsidiary of Cinemex) or any direct or
indirect equity or ownership interest in any other business.

      5.6 FINANCIAL STATEMENTS. Cinemex has delivered to Buyers: (a) audited
consolidated balance sheets of the Cinemex Companies as of December 31, 2001
(the "Balance Sheet") and the related audited consolidated statements of income,
retained earnings and cash flow for the fiscal year then ended, together with
the notes thereto and the report thereon by Ruiz Urquiza y Cia, S.C.,
independent certified public accountants, (b) audited consolidated balance
sheets of the Cinemex Companies as of December 31 in each of the years 1997
through 2000 and

                                    Sch. B-3
<PAGE>
the related audited consolidated statements of income, retained earnings and
cash flow for each of the fiscal years then ended, together with the notes
thereto and the report thereon by Ruiz Urquiza y Cia, S.C., independent
certified public accountants, and (c) the unaudited consolidated balance sheet
and statement of income of the Cinemex Companies as at March 31, 2002 (the
"Interim Balance Sheet"). Such financial statements and notes fairly present the
financial condition and the results of operations and, where provided, cash
flows of the Cinemex Companies as at the respective dates of and for the periods
referred to in such financial statements, all in accordance with GAAP, subject,
in the case of interim financial statements, to normal recurring year-end
adjustments (the effect of which would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect) and to the absence of
footnotes; the financial statements referred to in this Section 5.6 reflect the
consistent application of such accounting principles throughout the periods
involved, except as disclosed in the notes to such financial statements. No
financial statements of any Person other than the Cinemex Companies are required
by GAAP to be included in the consolidated financial statements of Cinemex.
Attached to Annex 5.6 to Schedule B are the Cinemex Companies' consolidated
financial statements as of May 31, 2002.

      5.7 BOOKS AND RECORDS. Except as set forth in Annex 5.7 to this Schedule
B, the minute books, stock registry books, capital variations books and other
corporate records of the Cinemex Companies, all of which have been made
available to Buyers are complete and correct in all material respects. Except as
set forth on Annex 5.7 to this Schedule B, the minute books of the Cinemex
Companies contain accurate and complete records of all meetings held of, and
corporate action taken by, the stockholders, the boards of directors (or similar
governing bodies) and committees of the boards of directors (or similar
governing bodies) of the Cinemex Companies, and no meeting of any such
stockholders, board of directors (or similar governing body) or committees has
been held for which minutes have not been prepared and are not contained in such
minute books. At the Closing, all of those books and records will be in the
possession of the Cinemex Companies or its Mexican counsel.

      5.8 TITLE TO PROPERTIES; ENCUMBRANCES. Annex 5.8 to this Schedule B
contains a complete and accurate list of all real estate property, leaseholds or
other similar interests owned by any Cinemex Company. Cinemex has made available
to Buyers copies of the deeds and other instruments by which the Cinemex
Companies acquired such real estate property and other interests. The Cinemex
Companies own (with good and marketable title in the case of real estate
property, subject only to the matters permitted by the following sentence) all
the properties and assets (whether real estate property, personal property or
mixed and whether tangible or intangible) that they purport to own. Except as
set forth in Annex 5.8 to this Schedule B, all material properties and assets
owned by Cinemex are free and clear of all Encumbrances and are not, in the case
of real estate property, subject to any rights of way, building use
restrictions, exceptions, variances, reservations or limitations of any nature
except, with respect to all such material properties and assets, (a) mortgages,
guaranty trusts or security interests, with respect to which no default (or
event that, with notice or lapse of time or both, would constitute a default)
exists, (b) liens for current Taxes not yet due, (c) Encumbrances or minor
imperfections of title, if any, none of which is substantial in amount,
materially detracts from the value or materially impairs the use of the property
subject thereto, or materially impairs the operations of any Cinemex Company,
and (d) with respect to real estate property, zoning laws and other land use
restrictions that do not impair the present or anticipated use of the property
subject thereto. All

                                    Sch. B-4
<PAGE>
buildings, plants and structures owned by the Cinemex Companies lie wholly
within the boundaries of the real estate property owned or leased by the Cinemex
Companies and do not encroach upon the property of, or, except as set forth on
Annex 5.8 to this Schedule B, or as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, otherwise conflict
with the property rights of any other Person.

      5.9 CONDITION AND SUFFICIENCY OF ASSETS, RECENT CAPITAL EXPENDITURES.

            (a) To Cinemex's Knowledge, except as set forth in Annex 5.9 to this
Schedule B, the buildings, plants, structures and equipment of the Cinemex
Companies are structurally sound, are in good operating condition and repair and
are adequate for the uses to which they are being put, and none of such
buildings, plants, structures or equipment is in need of maintenance or repairs
other than maintenance and repairs consistent in nature and cost with the
maintenance and repairs made by the Cinemex Companies in the Ordinary Course of
Business during the 12-month period preceding the Closing Date.

            (b) Except as set forth on Annex 5.9 to this Schedule B, as of May
31, 2002 the Cinemex Companies have made no capital expenditures subsequent to
April 1, 2002 on the projects identified on Annex 5.9 to this Schedule B which,
when aggregated with the cumulative total amount expended on such projects by
the Cinemex Companies, causes the total amount expended on such projects to
exceed 74'500,000.00 pesos.

      5.10 NO UNDISCLOSED LIABILITIES. Except as set forth on Annex 5.10 to this
Schedule B, the Cinemex Companies have no liabilities or obligations of any
nature that would be required to be reflected or disclosed on the Balance Sheet
or in the notes thereto under GAAP, except for (a) liabilities or obligations
reflected or reserved against in the Balance Sheet or in the notes thereto or
the Interim Balance Sheet and (b) current liabilities incurred in the Ordinary
Course of Business since the respective dates thereof.

      5.11 TAXES.

            (a) The Cinemex Companies have filed or caused to be filed on a
timely basis all material Tax Returns that are or were required to be filed by
or with respect to any of them, either separately or as a member of a group of
corporations, pursuant to applicable Mexican Legal Requirements. Cinemex has
delivered or made available to Buyers copies of all such Tax Returns filed since
1998. The Cinemex Companies have paid, or made provision for the payment of, all
Taxes that have or may have become due pursuant to those Tax Returns or
otherwise, or pursuant to any assessment received by any Cinemex Company, except
such Taxes, if any, as are listed in Annex 5.11 to this Schedule B and are being
contested in good faith and as to which adequate reserves (determined in
accordance with GAAP) have been provided in the Balance Sheet and the Interim
Balance Sheet.

            (b) All deficiencies proposed as a result of audits of such Tax
Returns have been paid, reserved against, settled or are being contested in good
faith by appropriate proceedings. No Cinemex Company has been informed of any
pending audit relating to any Cinemex Company or any Tax Return of any Cinemex
Company. Except as described in Annex 5.11 to this Schedule B, no Cinemex
Company has given or been requested to give

                                    Sch. B-5
<PAGE>
waivers or extensions (or is or would be subject to a waiver or extension given
by any other Person) of any statute of limitations which remain in effect
relating to the payment of Taxes of any Cinemex Company or for which any Cinemex
Company may be liable.

            (c) The charges, accruals, and reserves with respect to all material
Taxes on the books of the Cinemex Companies as a whole are adequate (determined
in accordance with GAAP) and fairly approximate the Cinemex Companies liability
for Taxes accrued as of the date hereof. To the Knowledge of Cinemex, there
exists no written (or, within the past 12-months, any other) proposed tax
assessment against any Cinemex Company except as disclosed in the Balance Sheet
or in Annex 5.11 to this Schedule B. All Taxes that any Cinemex Company is or
was required by Mexican Legal Requirements to withhold or collect have been duly
withheld or collected and, to the extent required, have been paid to the proper
Governmental Body or other Person.

            (d) All Tax Returns filed by (or that include on a consolidated
basis) any Cinemex Company, as amended, are true, correct and complete in all
material respects. There is no tax sharing agreement that will require any
payment by any Cinemex Company (other than to or on behalf of another Cinemex
Company) after the Closing Date.

            (e) Except as set forth on Annex 5.11 to this Schedule B, no Cinemex
Company is currently the beneficiary of any extension of time within which to
file any material Tax Return. Except as set forth in Annex 5.11 to the Knowledge
of Cinemex to this Schedule B, no written (or, within the past 12-months, any
other) claim has ever been made to any Cinemex Company by any authority in a
jurisdiction where any Cinemex Company does not file Tax Returns that it is or
may be subject to taxation by that jurisdiction in any material respect.

      5.12 NO MATERIAL ADVERSE EFFECT. Since the date of the Balance Sheet,
there has not been any Material Adverse Effect.

      5.13 EMPLOYEE BENEFITS.

            (a) Except as provided by law or as set forth in Annex 5.13 to this
Schedule B hereto, none of the Cinemex Companies is a party to or bound by (i)
any Contracts with any of the members of the Board of Directors of any Cinemex
Company; or (ii) any bonus, deferred compensation, severance pay, profit
sharing, pension, retirement, stock purchase, stock option, insurance (including
life, retirement, medical, dental or other insurance), or other material plans,
fringe benefit or any other employee benefit plan, whether formal or informal,
relating to any Cinemex Company, except for the payment of bonuses, deferred
compensation, severance amounts or fringe benefits to individual employees in
the Ordinary Course of Business that are determined or made on an individual
basis and are not generally available to (and which do not create any obligation
to) other employees or groups of employees of any Cinemex Company (collectively,
the "Plans"). With respect to each Plan, true, correct and complete copies of
each material document related to such Plan (including without limitation,
agreement, trust, insurance contract, arrangement, and each amendment thereto)
have been made available or have been delivered to Buyers.

                                    Sch. B-6
<PAGE>
            (b) Each Cinemex Company has performed and complied in all material
respects with all of their obligations under and with respect to the Plans,
subject to such exceptions as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect and each of the Plans
has, at all times, in form, operation and administration complied in all
material respects with its terms and all other applicable Mexican Legal
Requirements.

      5.14 COMPLIANCE WITH MEXICAN LEGAL REQUIREMENTS; MEXICAN GOVERNMENTAL
AUTHORIZATIONS.

            (a) Except as set forth in Annex 5.14 to this Schedule B or as would
not, individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect:

            (i) each Cinemex Company is, and at all times since January 1, 2000
      has been, in compliance with each Mexican Legal Requirement that is or was
      applicable to it or to the conduct or operation of its business or the
      ownership, possession, or use of any of its assets;

            (ii) no event has occurred or circumstance exists that (with or
      without notice or lapse of time) (A) may constitute or result in a
      violation by any Cinemex Company of, or a failure on the part of any
      Cinemex Company to comply with, any Mexican Legal Requirement, or (B) may
      give rise to any obligation on the part of any Cinemex Company to
      undertake, or to bear all or any portion of the cost of, any remedial
      action of any nature required under any Mexican Legal Requirement; and

            (iii) no Cinemex Company has received, at any time since January 1,
      2000, any notice or other written communication from any Mexican
      Governmental Body or any other Person regarding (A) any actual, alleged,
      possible or potential violation of, or failure to comply with, any Mexican
      Legal Requirement, or (B) any actual, alleged, possible or potential
      obligation on the part of any Cinemex Company to undertake, or to bear all
      or any portion of the cost of, any remedial action of any nature.

            (b) Each Cinemex Company holds all Mexican Governmental
Authorizations required to be held by such Cinemex Company (and such Mexican
Governmental Authorizations are valid and in full force and effect) except where
the failure to hold such Mexican Governmental Authorizations would not,
individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect. Except as set forth in Annex 5.14 to this Schedule B or as would
not, individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect:

            (i) each Cinemex Company is, and at all times since January 1, 2000
      has been, in full compliance with all of the terms and requirements of
      each Mexican Governmental Authorization held by such Cinemex Company;

            (ii) no Cinemex Company has received, at any time since January 1,
      2000, any notice or other written communication from any Mexican
      Governmental Body or any other Person regarding (A) any actual, alleged,
      possible or potential violation of or failure to comply with any term or
      requirement of any Mexican Governmental

                                    Sch. B-7
<PAGE>
      Authorization held by such Cinemex Company, or (B) any actual, proposed,
      possible or potential revocation, withdrawal, suspension, cancellation,
      termination of, or modification to any Mexican Governmental Authorization
      held by such Cinemex Company;

            (iii) all applications required to have been filed for the renewal
      of the Mexican Governmental Authorizations held by any Cinemex Company
      listed on Annex 5.14 to this Schedule B have been duly filed on a timely
      basis with the appropriate Mexican Governmental Bodies, and all other
      filings required to have been made with respect to such Mexican
      Governmental Authorizations have been duly made on a timely basis with the
      appropriate Mexican Governmental Bodies; and

            (iv) the Cinemex Companies collectively hold all Mexican
      Governmental Authorizations necessary to permit them to lawfully conduct
      and operate their businesses in the manner they currently conduct and
      operate such businesses and to permit them to own and use their assets in
      the manner in which they currently own and use such assets.

            (c) Except as set forth on Annex 5.14 to this Schedule B, the
Cinemex Companies collectively hold all Mexican Governmental Authorizations the
failure to hold of which (i) could reasonably be expected to lead to the
temporary or permanent closure of any motion picture theater, or the principal
concession operation of any motion picture theater, owned or operated by any
Cinemex Company or (ii) could reasonably be expected to render unlawful the
operation of any motion picture theater, or the principal concession operation
of any motion picture theater, owned or operated by any Cinemex Company.

      5.15 LEGAL PROCEEDINGS; ORDERS.

            (a) Except as set forth in Annex 5.15 to this Schedule B, there are
no pending Proceedings:

            (i) that have been commenced by or against any Cinemex Company or
      that would otherwise, individually or in the aggregate, be reasonably
      expected to have Material Adverse Effect; or

            (ii) that challenge, or that would, individually or in the
      aggregate, reasonably be expected to have the effect of preventing,
      delaying, making illegal, or otherwise interfering with, any of the
      Contemplated Transactions.

      To the Knowledge of Cinemex, no such Proceedings have been Threatened.
Cinemex has made available to Buyers copies of all pleadings, correspondence and
other documents relating to each Proceeding listed in Annex 5.15 to this
Schedule B.

      (b) Except as set forth in Annex 5.15 to this Schedule B:

            (i) there is no Order to which any of the Cinemex Companies, or any
      of the assets owned or used under legal title by any Cinemex Company, is
      subject; and

                                    Sch. B-8
<PAGE>
            (ii) to the Knowledge of Cinemex, no officer, director, agent or key
      employee of any Cinemex Company is subject to any Order that prohibits
      such officer, director, agent or key employee from engaging in or
      continuing any conduct, activity or practice material to the business of
      any Cinemex Company.

            (c) Except as set forth in Annex 5.15 to this Schedule B:

            (i) each Cinemex Company is, and at all times since January 1, 2000
      has been, in full compliance with all of the terms and requirements of
      each Order to which it, or any of the assets owned, leased, or used under
      legal title by it, is or has been subject, subject to such exceptions
      which would not, individually or in the aggregate, reasonably be expected
      to have a Material Adverse Effect; and

            (ii) no Cinemex Company has received, at any time since January 1,
      2000, any notice or other communication (oral or written) from any Mexican
      Governmental Body or any other Person regarding any actual, alleged,
      possible or potential violation of, or failure to comply with, any term or
      requirement of any Order to which any Cinemex Company, or any of the
      assets owned or used under legal title by any Cinemex Company, is or has
      been subject, which would, individually or in the aggregate, reasonably be
      expected to have a Material Adverse Effect.

      5.16 ABSENCE OF CERTAIN CHANGES AND EVENTS. Except as set forth in Annex
5.16 to this Schedule B, since the date of the Balance Sheet, the Cinemex
Companies have conducted their businesses only in the Ordinary Course of
Business and there has not been, other than as part of the Recapitalization,
any:

            (a) change in any Cinemex Company's authorized or issued capital
stock; grant of any stock option or right to purchase shares of capital stock of
any Cinemex Company; issuance of any security convertible into such capital
stock; grant of any registration rights; purchase, redemption, retirement, or
other acquisition by any Cinemex Company of any shares of any such capital
stock; or declaration or payment of any dividend or other distribution or
payment in respect of shares of capital stock;

            (b) amendment to the Organizational Documents of any Cinemex
Company;

            (c) payment or increase by any Cinemex Company of any bonuses,
salaries, or other compensation to any stockholder, director, officer (except
for payment at the rates in effect on the date of the Balance Sheet, or except
in the Ordinary Course of Business) employee, or entry into any employment,
severance or similar Contract with any director, officer or employee;

            (d) adoption of, or increase in the payments to or benefits under,
any Plan;

            (e) damage to or destruction or loss of any asset or property of any
Cinemex Company, whether or not covered by insurance, which would, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect;

                                    Sch. B-9
<PAGE>
            (f) entry into, termination of, or receipt of notice of termination
of (i) any license, distributorship, dealer, sales representative, joint
venture, credit, lease, or similar agreement, or (ii) any Contract or
transaction involving a total remaining commitment by or to any Cinemex Company
of at least $2,500,000 pesos (excluding film Contracts, screen advertising
Contracts having a duration of less than one year, internet provider Contracts
and, solely in the case of the entering into of Contracts, the other Contracts
disclosed on Annex 5.17(a) to Schedule B);

            (g) sale (other than sales of inventory in the Ordinary Course of
Business and sales or other dispositions of equipment deemed surplus, obsolete
or no longer necessary to the business of any Cinemex Company), lease or other
disposition of any material asset or property of any Cinemex Company or
mortgage, pledge or imposition of any Encumbrance on any material asset or
property of any Cinemex Company, including the sale, lease or other disposition
of any material intellectual property;

            (h) cancellation or waiver of any claims or rights with, to
Cinemex's Knowledge, a value to any Cinemex Company in excess of $1'000,000
pesos;

            (i) change in the accounting methods used by any Cinemex Company; or

            (j) agreement, whether oral or written, by any Cinemex Company to do
any of the foregoing.

      5.17 CONTRACTS; NO DEFAULTS.

            (a) Annex 5.17(a) to this Schedule B contains a complete and
accurate list, and Cinemex has, in the case of written Contracts, made available
to Buyers true and complete copies, of:

            (i) each Applicable Contract that involves performance of services
      or delivery of goods or materials by one or more of the Cinemex Companies
      of an amount or value in excess of $1,000,000 pesos (excluding Contracts
      that are terminable by a Cinemex Company without penalty or cost to the
      Cinemex Companies in excess of $1,000,000 pesos);

            (ii) each Applicable Contract that was not entered into in the
      Ordinary Course of Business and that involves expenditures or other
      liabilities and/or receipts of one or more of the Cinemex Companies in
      excess of $1,000,000 pesos (excluding Contracts that are terminable by a
      Cinemex Company without penalty or cost to the Cinemex Companies in excess
      of $1,000,000 pesos);

            (iii) each loan agreement, promissory note, bond, letter of credit
      or other Applicable Contract evidencing Cinemex Indebtedness or any
      guarantee or similar obligation of any Cinemex Company with respect to
      indebtedness for borrowed money or any other similar payment obligation of
      any Person (other than any Cinemex Company);

            (iv) each lease, rental or occupancy agreement, license, installment
      and conditional sale agreement, and other Applicable Contract affecting
      the ownership of,

                                    Sch. B-10
<PAGE>
      leasing of, title to, use of, or any leasehold or other similar interest
      in, any real or personal property (except any personal property lease
      having payments of less than $1'000,000 pesos and with a term of less than
      one (1) year);

            (v) each material licensing agreement or other material Applicable
      Contract with respect to patents, trademarks, copyrights, or other
      intellectual property, including agreements with current or former
      employees, consultants, or contractors regarding the appropriation or the
      non-disclosure of any intellectual property other than (x) any licensing
      agreements or other Applicable Contracts entered into by any Cinemex
      Company in the Ordinary Course of Business which primarily relate to the
      exhibition by such Cinemex Company of a particular motion picture or (y)
      "shrink-wrap" or other software licenses generally available from
      commercial venders or retailers which do not require ongoing royalty
      payments;

            (vi) each collective bargaining agreement and other Applicable
      Contract to or with any labor union or other employee representative of a
      group of employees;

            (vii) each joint venture, partnership, and other similar Applicable
      Contract (however named) involving a sharing of profits, losses, costs or
      liabilities by any Cinemex Company with any other Person, excluding
      Contracts entered into in the Ordinary Course of Business by a Cinemex
      Company;

            (viii)each Applicable Contract containing covenants that in any way
      purport to restrict the business activity of any Cinemex Company or any
      affiliate of any Cinemex Company or limit the freedom of any Cinemex
      Company or any affiliate of any Cinemex Company to engage in any line of
      business or to compete with any Person or in any territory;

            (ix) each Applicable Contract providing for payments to or by any
      Person based on sales, purchases, or profits, other than direct payments
      for goods, excluding Contracts entered into in the Ordinary Course of
      Business by a Cinemex Company;

            (x) other than those held by Messrs. Davila, Fastlicht and Heyman,
      each power of attorney for (A) acts of ownership, (B) acts of management
      or (C) to subscribe or execute negotiable instruments, in each case, that
      is currently effective and outstanding and which will not be terminated
      prior to the Closing;

            (xi) each Applicable Contract under which a Cinemex Company is
      committed for individual capital expenditures in excess of $2'500,000
      pesos or aggregate capital expenditures in excess of $10'000,000 pesos;

            (xii) each employment, consulting or other similar Applicable
      Contract with employees or consultants of any Cinemex Company remaining in
      effect after the Closing Date and which are not terminable at the will of
      the applicable Cinemex Company without cost or liability to any Cinemex
      Company; and

                                    Sch. B-11
<PAGE>
            (xiii) each amendment, supplement, and modification (whether oral or
      written) in respect of any of the foregoing.

            (b) Except as set forth in Annex 5.17(b) to this Schedule B to the
Knowledge of Cinemex no officer, director, agent, key employee, consultant or
contractor of any Cinemex Company is bound by any Contract that purports to
limit the ability of such officer, director, agent, key employee, consultant, or
contractor to (i) engage in or continue any conduct, activity, or practice
material to the business of any Cinemex Company, or (ii) assign to any Cinemex
Company or to any other Person any rights to any invention, improvement or
discovery.

            (c) Except as set forth in Annex 5.17(c) to this Schedule B, each
Contract required to be identified in Annex 5.17(a) to this Schedule B is in
full force and effect and is valid and enforceable against the Cinemex Company
party thereto in accordance with its terms.

            (d) Except as set forth in Annex 5.17(d) to this Schedule B:

            (i) each Cinemex Company is, and at all times since January 1, 2002
      has been, in substantial compliance with all material terms and
      requirements of each material Contract identified on Annex 5.17(a) to this
      Schedule B;

            (ii) to the Knowledge of Cinemex, each other Person that has any
      material obligation or liability under any material Contract identified or
      required to be identified on Annex 5.17(a) to this Schedule B is, and at
      all times since January 1, 2002 has been, in substantial compliance with
      all material terms and requirements of such Contract;

            (iii) to the Knowledge of Cinemex, no event has occurred or
      circumstance exists that (with or without notice or lapse of time) would
      reasonably be expected to contravene, conflict with, or result in a
      violation or breach of, or give (x) any Person other than a Cinemex
      Company or (y) to the Knowledge of Cinemex, any Cinemex Company the right
      to declare a default or exercise any remedy under, or to accelerate the
      maturity or performance of, or to cancel, terminate, or modify, any
      material Contract identified on Annex 5.17(a) to this Schedule B; and

            (iv) no Cinemex Company has given to or received from any other
      Person, any notice or other written communication regarding any actual,
      alleged, possible, or potential violation or breach of, or default under,
      any material Contract on Annex 5.17(a) to this Schedule B; and

            (v) there are no pending renegotiations of, current attempts to
      renegotiate, or outstanding rights to renegotiate any material terms and
      conditions or material amounts paid or payable to any Cinemex Company
      under any of the material Contracts identified on Annex 5.17(a) to this
      Schedule B with any Person and no such Person has made written demand for
      such renegotiation.

      5.18 INSURANCE. Annex 5.18 to this Schedule B contains a complete list of
all of the Cinemex Companies' policies of insurance in effect as of the date
hereof. All of such policies are in full force and effect, and there is no
default (beyond any applicable grace or cure period)

                                    Sch. B-12
<PAGE>
with respect to any provision contained in any such policy, nor has there been
any failure to give any notice or present any claim under any liability policy
in a timely fashion or in the manner or detail required by such liability policy
such that the Cinemex Companies' rights to insurance recovery under such
policies would be prejudiced thereby in any material respect. Cinemex has
delivered or made available copies of all such policies to Buyers. Except as set
forth in Annex 5.18 to this Schedule B, there are no overdue and unpaid premiums
or claims, and no retroactive or retrospective premium adjustments with respect
to such policies, and no notice of cancellation or nonrenewal has been received
by any Cinemex Company with respect to, or disallowance of any claim under, any
such policy.

      5.19 ENVIRONMENTAL MATTERS.

            (a) Except as set forth in Annex 5.19 to this Schedule B:

            (i) Each Cinemex Company is in material compliance with all
      Environmental Laws;

            (ii) no Cinemex Company has made, caused or contributed to any
      Release of Hazardous Materials in violation of any Environmental Law;

            (iii) (A) none of the operations or business of any Cinemex Company
      is subject to any judicial or administrative proceeding alleging the
      violation of any Environmental Law, (B) none of the operations or business
      of any Cinemex Company is subject to any compliance agreement or
      settlement agreement resulting from an alleged violation of any
      Environmental Law, and (C) none of the operations or business of any
      Cinemex Company is the subject of any federal, state or local
      investigation or Threatened investigation regarding a violation or alleged
      violation of any Environmental Law;

            (iv) to the Knowledge of Cinemex, (A) none of the business of the
      Cinemex Companies involves any Hazardous Activity, and (B) none of the
      Cinemex Companies has knowledge of any Hazardous Materials in, on, over or
      under any of the Facilities other than Hazardous Materials maintained in
      small quantities in appropriate containers for use in the ordinary course
      of maintenance and operation of the Facilities and in material compliance
      with applicable Environmental Laws;

            (v) to the Knowledge of Cinemex, there is no condition arising from
      the operations of the Cinemex Companies that could reasonably be expected
      to result in claims against any of the Cinemex Companies, for Cleanup
      costs, damages to natural resources, or for personal injury claims under
      applicable Environmental Laws or as required by any Governmental Body with
      jurisdiction over such matters; and

            (vi) each of the Cinemex Companies possesses all material Mexican
      Governmental Authorizations required under any Environmental Law to
      conduct its business, and such Mexican Governmental Authorizations are in
      full force and effect.

      5.20 EMPLOYEES.

                                    Sch. B-13
<PAGE>
            (a) Annex 5.20 to this Schedule B contains a list of the name,
position, seniority, salary and labor benefits of all employees of the Cinemex
Companies (including employees of companies rendering employment and personnel
services to the Cinemex Companies) with an annual salary in excess of $600,000
pesos as of May 31, 2002 and, should the case may be, of any contracts or
arrangements with them.

            (b) Except as disclosed on Annex 5.20 to this Schedule B, none of
the Cinemex Companies have made any arrangements with any employees of the
Cinemex Companies which would have the effect of depriving any of the Cinemex
Companies of the continued service of any such employees following the Closing
Date.

      5.21 LABOR RELATIONS; COMPLIANCE.

            (a) Except as set forth in Annex 5.21 to this Schedule B, no Cinemex
Company is a party to any collective bargaining or other labor Contract and, as
of the date of execution of this Agreement, none of the Cinemex Companies is
negotiating with the unions mentioned in Annex 5.21 to this Schedule B or any
other unions.

            (b) Since January 1, 2000, and except as set forth in Annex 5.21 to
this Schedule B, there has not been, there is not presently pending or existing,
and there is not Threatened (i) any strike, slowdown, picketing, work stoppage,
or interruptions of work against any of the Cinemex Companies; (ii) any
Proceeding against any Cinemex Company relating to the alleged violation of any
Mexican Legal Requirement pertaining to labor relations or employment matters,
organizational activity, or other labor or employment dispute or controversy
against any of the Cinemex Companies or their currently owned, leased or
operated Facilities or (iii) any application for certification of a collective
bargaining agent. Except as set forth on Annex 5.21 to this Schedule B, there is
no lockout of any employees by any Cinemex Company, and no such action is
contemplated by any Cinemex Company.

            (c) Each Cinemex Company has substantially complied with all Mexican
Legal Requirements relating to employees and employment. Except as disclosed on
Annex 5.21 to this Schedule B, no Cinemex Company is liable for the payment of
any compensation, Damages, Taxes, fines, penalties or other amounts, however
designated, for failure to comply with any of the foregoing Mexican Legal
Requirements.

      5.22 INTELLECTUAL PROPERTY. Each Cinemex Company owns or possesses rights
to use all franchises, licenses, copyrights, copyright applications, patents,
patent rights or licenses, patent applications, trademarks, trademark rights,
trade names, trade name rights, copyrights and rights with respect to the
foregoing which are required to conduct its business as currently conducted.
Except as set forth in Annex 5.22 to this Schedule B, to the Knowledge of
Cinemex, no event has occurred which permits, or after notice or lapse of time
or both would permit, the revocation or termination of any such rights, and no
Cinemex Company is liable to any Person for infringement under applicable
Mexican Legal Requirements with respect to any such rights as a result of its
business operations.

      5.23 CERTAIN PAYMENTS. Since January 1, 2000, no Cinemex Company or
director or officer of any Cinemex Company, or to the Knowledge of Cinemex, any
employee, agent or

                                    Sch. B-14
<PAGE>
other Person acting for or on behalf of any Cinemex Company, has directly or
indirectly made any payments, gifts or rebates (whether in cash, property or
services) to any Person (i) in violation of Mexican Legal Requirements or (ii)
which, if Cinemex were subject to the United States Foreign Corrupt Practices
Act of 1977, as amended, would have violated the same, except in either case for
payments, gifts or rebates (whether in cash, property or services) which, if
discontinued subsequent to the Closing, could not, individually or in the
aggregate, be reasonably expected to have a Material Adverse Effect.

      5.24 RELATIONSHIPS WITH RELATED PERSONS. Except as set forth on Annex 5.24
to this Schedule B, no director or officer of any Cinemex Company, or to the
Knowledge of Cinemex, any Related Person of such director or officer has, or is
an owner of, or since January 1, 2000 has owned (of record or as a beneficial
owner) an equity interest or any other financial or profit interest in, a Person
that has, (i) had business dealings or a material financial interest in any
transaction with any Cinemex Company other than business dealings or
transactions conducted in the Ordinary Course of Business with the Cinemex
Companies at substantially prevailing market prices and on substantially
prevailing market terms and conditions, or (ii) engaged in the business of (a)
developing, owning or operating motion picture theaters or exhibiting motion
pictures in Mexico, or (b) within the vicinity of any motion picture theater
owned or operated by any Cinemex Company selling food, snacks or concession
services (in either case, a "Competing Business"), except for the direct or
indirect ownership of less than one percent of the outstanding capital stock of
any Competing Business (or Person that directly or indirectly owns such interest
in a Competing Business) that is publicly traded on any recognized exchange or
in the over-the-counter market.

      5.25 BROKERS OR FINDERS. No Cinemex Company and, to the Knowledge of
Cinemex, none of their respective agents has incurred any obligation or
liability, contingent or otherwise, for brokerage or finders' fees or agents'
commissions or other similar payment in connection with this Agreement.

      5.26 NO UNITED STATES PRESENCE. None of the real estate property owned by
any Cinemex Company or which any Cinemex Company leases or has any other
interest therein, and none of the buildings, equipment, inventories and other
tangible assets of any Cinemex Company are located in the United States within
the meaning of Rule 802.51 of the HSR Act. No Cinemex Company is organized under
the laws of the United States or any state or other jurisdiction within the
United States. The Cinemex Companies have not made aggregate sales in or into
the United States of over $50 million United States Dollars in the most recently
completed fiscal year within the meaning of Rule 802.51 of the HSR Act.

                             ADDITIONAL DEFINITIONS

      "Ancillary Agreements" shall mean ancillary agreements to be delivered by
the respective parties to the Cinemex Stock Purchase Agreement and to be
delivered by the respective parties to the Inducement Agreement.

      "Applicable Contract" shall mean any Contract (a) under which any Cinemex
Company has or may acquire any rights, (b) under which any Cinemex Company has
or may become

                                    Sch. B-15
<PAGE>
subject to any obligation or liability, or (c) by which any Cinemex Company or
any of the assets owned or used by it is or may become bound.

      "Balance Sheet" has the meaning set forth in Section 5.6 of this Schedule
B.

      "Cleanup" shall mean the cleanup costs or corrective action, including any
investigation, cleanup, removal, containment or other remediation or response
actions.

      "Environment" shall mean soil, land surface or subsurface strata, surface
waters (including navigable waters, ocean waters, streams, ponds, drainage
basins and wetlands), groundwaters, drinking water supply, stream sediments,
ambient air (including indoor air), plant and animal life, and any other
environmental medium or natural source.

      "Environmental Law" shall mean any Mexican Legal Requirement that requires
or relates to:

            (a) advising appropriate authorities, employees and the public of
intended or actual releases of pollutants or hazardous substances or materials,
violations of discharge limits or other prohibitions and of the commencement of
activities, such as resource extraction or construction, that could have
significant impact on the Environment;

            (b) preventing or reducing to acceptable levels the release of
pollutants or hazardous substances or materials into the Environment;

            (c) reducing the quantities, preventing the release or minimizing
the hazardous characteristics of wastes that are generated;

            (d) protecting resources, species or ecological amenities;

            (e) reducing to acceptable levels the risks inherent in the
transportation of hazardous substances, pollutants, oil or other potentially
harmful substances;

            (f) cleaning up pollutants that have been released, preventing the
Threat of Release or paying the costs of such clean up or prevention; or

            (g) making responsible parties pay private parties, or groups of
them, for damages done to their health or the Environment, or permitting
self-appointed representatives of the public interest to recover for injuries
done to public assets.

      "Facilities" shall mean any real estate property, leaseholds or other
similar interests currently or formerly owned or operated by any Cinemex Company
and any buildings, plants, structures or equipment (including motor vehicles)
currently or formerly owned, leased or operated by any Cinemex Company.

      "Hazardous Activity" shall mean the distribution, generation, handling,
importing, management, manufacturing, processing, production, refinement,
Release, storage, transfer, transportation, treatment or use (including any
withdrawal or other use of groundwater) of Hazardous Materials in, on, under,
about or from the Facilities or any part thereof into the

                                    Sch. B-16
<PAGE>
Environment, and any other act, business or operation that poses an unreasonable
risk of harm to persons or property on or off the Facilities, or that may affect
the value of the Facilities or the Cinemex Companies, as the case may be.

      "Hazardous Materials" shall mean any waste or other substance that is
listed, defined, designated or classified as, or otherwise determined to be,
hazardous, radioactive or toxic or a pollutant or a contaminant in amounts and
concentrations which are regulated under or pursuant to any Environmental Law,
including any admixture or solution thereof, and specifically including
petroleum and all derivatives thereof or synthetic substitutes therefor and
friable asbestos or friable asbestos-containing materials.

      "Interim Balance Sheet" shall have the meaning set forth in Section 5.6 of
this Schedule B.

      "Partly-Owned Person" shall mean, with respect to any Person, any
corporation or other Person (other than a Subsidiary of the first Person) of
which securities or other interests are held by such Person or one or more of
its Subsidiaries.

      "Plans" shall have the meaning set forth in Section 5.13(a) of this
Schedule B.

      "Release" shall mean any spilling, leaking, emitting, discharging,
depositing, escaping, leaching, dumping or other releasing into the Environment,
whether intentional or unintentional.

                                    Sch. B-17
<PAGE>
                                                                      SCHEDULE C

<TABLE>
<CAPTION>
                     SHAREHOLDER                                                              Shares            Percentage
<S>                                                                                         <C>                 <C>
CPH, HCL, NA, HAL, Barbados
and Strawinsky, jointly and severally, ("Hoyts")                                            1,137,963            29.9350%
JPMCC Belgium SCA                                                                             757,643            19.9304%
Sixty Wall Street Belgium SCA                                                                  46,393             1.2204%
CMEX Investors, L.P.                                                                          599,868            15.7800%
Adolfo Benjamin Fastlicht Kurian                                                              215,636             5.6725%
Miguel Angel Davila Guzman                                                                    210,485             5.5370%
Matthew David Heyman Podvin                                                                   209,773             5.5182%
Stein International Investments                                                                77,363             2.0351%
Mark Fastlicht y Sackler                                                                       57,168             1.5038%
Pilar Gonzalez Parra                                                                           44,516             1.1710%
Eagle LLC                                                                                      41,783             1.0991%
Abrahim Zaki Saadia Mussali                                                                    41,058             1.0801%
Cesar Montemayor                                                                               31,984             0.8414%
Oregon Trail Eye Clinic Partnership Profit Sharing Plan, for
the benefit of Mylan R. VanNewkirk                                                             28,531             0.7505%
Inmobiliaria y Constructora K, S.A. de C.V.                                                    25,788             0.6784%
Alexis Falquier Warnier                                                                        21,403             0.5630%
Ricardo Haneine Haua                                                                           21,403             0.5630%
Cipriano Santiesteban Aja                                                                      19,632             0.5164%
Eduardo Davila Guzman                                                                          18,958             0.4987%
Jeffrey Fastlicht Kurian                                                                       17,875             0.4702%
Irvin Goldman y Barbara Goldman                                                                17,287             0.4547%
Antonio Cepeda Lopezhermosa                                                                    55,706             1.4654%
Sonia Tendler                                                                                  10,701             0.2815%
Ronald F. Getto y Karen S. Getto                                                                9,078             0.2388%
Palmer & Sons LLC                                                                               8,035             0.2114%
Betty S. VanNewkirk, John D. VanNewkirk y Mylan R. VanNewkirk                                   7,135             0.1877%
Mario Epelbaum Lask                                                                             6,808             0.1791%
Karen Brodsky de Jinich                                                                         6,715             0.1766%
Michael D. Fernhoff y Mary Ellen P. Fernhoff                                                    6,232             0.1639%
Carlos Jinich Ripstein                                                                          6,194             0.1629%
Michael Perlo Kurian                                                                            3,601             0.0947%
Jonathan Perlo Kurian                                                                           3,600             0.0947%
Alan Benjamin Jaet Kurian                                                                       9,271             0.2439%
Jaime Paul Jaet Kurian                                                                          9,270             0.2439%
Ricardo Jinich Gancz                                                                            2,363             0.0622%
UEMCO X, L.L.C.                                                                                 2,280             0.0600%
Steven J. Rosenfield                         (Decedant's Trust)                                 1,617             0.0425%
Brenda Denise Jaet Kurian                                                                       6,667             0.1754%
Julie Rosenfield (Julie Friedman)     (Trust)                                                   1,616             0.0425%
Marci Rosenfield (Marci Lefkovits)    (Trust)                                                   1,616             0.0425%
Stephanie Nea Kurian Maltz de Fastlicht                                                           398             0.0105%
Damian Piza Velazquez                                                                              35             0.0009%
</TABLE>

                                    Sch. B-18<PAGE>
                                                                    Exhibit 10.5

                                                                  EXECUTION COPY

                              INDUCEMENT AGREEMENT

                                      AMONG

                                   CINEMEX LLC

                            CINEMEX ACQUISITION CORP.

                   SYMPHONY ACQUISITION VEHICLE, S.A. DE C.V.

                           GRUPO CINEMEX, S.A. DE C.V.

                           MIGUEL ANGEL DAVILA GUZMAN

                                       AND

                             ADOLFO FASTLICHT KURIAN

                            DATED AS OF JUNE 19, 2002
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                             Page
                                                                                             ----
<S>                                                                                          <C>
1.  Definitions............................................................................    2

2.  Effectiveness; Other Matters...........................................................    2
    2.1  Effective Time....................................................................    2
    2.2  Deliveries at or Prior to the Effective Time......................................    2

3.  Representations and Warranties of Cinemex..............................................    4

4.  Representations and Warranties of the Shareholders.....................................    4
    4.1  Nationality and Domicile..........................................................    4
    4.2  Authority; No Conflict............................................................    4
    4.3  Legal Proceedings; Orders.........................................................    5
    4.4  Title to Shares...................................................................    5
    4.5  Relationships with Related Persons................................................    5
    4.6  Brokers or Finders................................................................    6
    4.7  Accuracy of Representations and Warranties of Cinemex.............................    6

5.  Representations and Warranties of Investors............................................    6
    5.1  Organization and Good Standing....................................................    6
    5.2  Authority; No Conflict............................................................    6
    5.3  Certain Proceedings...............................................................    7
    5.4  Brokers or Finders................................................................    7
    5.5  No Additional Representations.....................................................    7

6.  Covenants Prior to Effective Date......................................................    7

7.  Call by Cinemex........................................................................    7
    7.1  Call Option.......................................................................    7
    7.2  Closing for Exercise of Call Option...............................................    7
    7.3  Power of Attorney.................................................................    8

8.  Indemnification; Remedies..............................................................    8
    8.1  Survival; Right to Indemnification Not Affected by Knowledge......................    8
    8.2  Indemnification and Payment of Damages by the Shareholders........................    8
    8.3  Indemnification and Payment of Damages by Investors...............................   11
    8.4  Time Limitations..................................................................   11
    8.5  Limitations on Amount - Shareholders..............................................   12
    8.6  Limitations on Amount - Investors.................................................   12
    8.7  Procedure for Indemnification - Third Party Claims................................   13
    8.8  Procedure for Indemnification - Other Claims......................................   14
    8.9  Additional Provisions Regarding Tax Indemnification...............................   14
    8.10 Filing of Tax Returns.............................................................   17
    8.11 Cooperation on Tax Matters........................................................   17
</TABLE>

                                       i
<PAGE>
<TABLE>
                                                                                             Page
                                                                                             ----
<S>                                                                                           <C>
    8.12 Allocation of Tax Liability for Overlap Periods...................................   18
    8.13 Certain Miscellaneous Tax Matters.................................................   18
    8.14 Notices and Determinations by Shareholders........................................   19
    8.15 Use of Commercially Reasonable Efforts............................................   19

9.  General Provisions.....................................................................   19
    9.1  Expenses..........................................................................   19
    9.2  Public Announcements..............................................................   19
    9.3  Notices...........................................................................   20
    9.4  Jurisdiction......................................................................   22
    9.5  Further Assurances................................................................   22
    9.6  Waiver............................................................................   22
    9.7  Entire Agreement and Modification.................................................   22
    9.8  Schedules.........................................................................   22
    9.9  Assignments, Successors, and No Third-Party Rights................................   23
    9.10 Severability......................................................................   23
    9.11 Section Headings, Construction....................................................   23
    9.12 Governing Law.....................................................................   23
    9.13 Counterparts......................................................................   23
</TABLE>

<TABLE>
<CAPTION>
Exhibits
--------

<S>                  <C>
Exhibit A            Definitions
Exhibit 2.2(a)(i)    Form of Shareholder Release
Exhibit 2.2(a)(ii)   Form of Davila Memorandum
Exhibit 2.2(a)(iv)   Form of Davila Competition Agreement
Exhibit 2.2(a)(v)    Form of Fastlicht Competition Agreement
Exhibit 8.2(c)       Projected Cash Flow

Schedules
---------

Schedule A           Shareholder Percentages
Schedule B           Representations and Warranties of Cinemex
</TABLE>

<TABLE>
<CAPTION>
                     Annexes
                     -------

<S>                                    <C>
                     Annex 3.1         Organization
                     Annex 3.2         Authority; No Conflict
                     Annex 3.3         Capitalization as of Immediately Prior to the Recapitalization
                     Annex 3.4         Recapitalization
                     Annex 3.5         Current Capitalization
                     Annex 3.6         Financial Statements
                     Annex 3.7         Books and Records
                     Annex 3.8         Title to Properties; Encumbrances
</TABLE>

                                       ii
<PAGE>
<TABLE>
<S>                                    <C>
                     Annex 3.9         Condition and Sufficiency of Assets; Recent Capital Expenditures
                     Annex 3.10        Undisclosed Liabilities
                     Annex 3.11        Taxes
                     Annex 3.13        Employee Benefits
                     Annex 3.14        Compliance with Mexican Legal Requirements;
                                       Mexican Governmental Authorizations
                                       Annex 3.15       Legal Proceedings; Orders
                     Annex 3.16        Absence of Certain Changes and Events
                     Annex 3.17        Contracts
                     Annex 3.18        Insurance
                     Annex 3.19        Environmental Matters
                     Annex 3.20        Employees
                     Annex 3.21        Labor Relations; Compliance
                     Annex 3.22        Intellectual Property
                     Annex 3.24        Relationships with Related Persons
</TABLE>

<TABLE>
<S>                  <C>
Schedule C           Covenants Prior to Effective Date
Schedule 4.1         Nationality and Domicile
Schedule 4.2         Authority; No Conflict - Shareholders
Schedule 4.3         Legal Proceedings; Orders - Shareholders
Schedule 4.4         Title to Shares
Schedule 4.5         Relationship with Related Persons - Shareholders
Schedule 5.2         Authority; No Conflict - Investors
Schedule 9.3         Notices
</TABLE>

                                      iii

<PAGE>
                              INDUCEMENT AGREEMENT

         This INDUCEMENT AGREEMENT (this "Agreement") is made as of June 19,
2002, among Cinemex LLC, a Delaware limited liability company ("USLLC"), Cinemex
Acquisition Corp., a Delaware corporation ("USAC"), Symphony Acquisition
Vehicle, S.A. de C.V., a corporation organized under the laws of Mexico ("MAV"),
Grupo Cinemex, S.A. de C.V., a corporation organized under the laws of Mexico
("Cinemex"), Miguel Angel Davila Guzman ("Davila") and Adolfo Fastlicht Kurian
("Fastlicht") pursuant to the following and recitals and clauses:

                                    RECITALS

         A. WHEREAS, at a General Extraordinary Shareholders Meeting of Cinemex
(the "General Shareholders Meeting") held on June 7, 2002, Cinemex's
shareholders approved, among other things, a recapitalization of Cinemex
(collectively, the "Recapitalization") consisting of each of the following
steps: (i) conversion of each share of Common Stock (as defined in Exhibit A to
this Agreement) then held by each of the shareholders of Cinemex other than
Davila, Fastlicht and Matthew D. Heyman into one share of Cinemex's Series P
Preferred Stock (as defined in Exhibit A to this Agreement); (ii) conversion of
each share of Common Stock then held by each of Fastlicht and Davila into one
share of Series PRD Preferred Stock (as defined in Exhibit A to this Agreement);
(iii) cancellation of each share of Common Stock issued and held immediately
prior to the time of the Recapitalization in the treasury of Cinemex and
reserved for subscription under Cinemex's employee stock option plan (the
"ESOP") in exchange for the payment of $50'251,608.84 pesos in the aggregate
(the "ESOP Payment"); (iv) cancellation of all shares of Common Stock then held
in the treasury of Cinemex pending subscription; (v) termination of the
Management Trust Agreement (as defined in Exhibit A to this Agreement) and the
Existing Stockholders Agreement (as defined in Exhibit A to this Agreement); and
(vi) amendment of Cinemex's bylaws to, among other things, eliminate any rights
of first refusal, all other restrictions on transfer of shares of Cinemex's
capital stock and all minority rights contained therein;

         B. WHEREAS, all steps of the Recapitalization were effected by Cinemex
on June 7, 2002;

         C. WHEREAS, simultaneously with the execution and delivery of this
Agreement, USAC, MAV and Cinemex have entered into that certain Stock Purchase
Agreement (the "Hoyts Stock Purchase Agreement"), dated as of the date hereof,
among MAV, USAC, Consolidated Press Holdings Limited (ACN 008 394 509) ("CPHL"),
Hoyts Cinemas Ltd. ("HCL"), Hoyts European Holdings B.V. ("BV"), Hoyts Cinemas
America Limited ("HCAL"), Stichting Administratiekantoor Strawinsky ("SAS"),
Hoyts Emerging Territories, Ltd. ("HET"), Cinemas Hoyts de Mexico, S. de R.L.
("SRL, and collectively with CPHL, HCL, BV, HCAL, SAS and HET, "Hoyts") and
Cinemex, pursuant to which, among other things, Investors will indirectly
acquire 1,137,963 shares of Series P Preferred Stock;

         D. WHEREAS, simultaneously with the execution and delivery of this
Agreement, USAC and USLLC have entered into that certain Stock Purchase
Agreement (the "Cinemex Stock Purchase Agreement") among USLLC, USAC, Cinemex,
Matthew D. Heyman, BBVA Bancomer, S.A., Institucion de Banca Multiple, Grupo
Financiero, BBVA
<PAGE>
Bancomer Division Fiduciaria, as Trustee (the "Concentration Trustee") of the
Irrevocable Trust Agreement No. F47016-1, dated as of June 13, 2002, among the
Concentration Trustee, on its own behalf and on behalf of certain of Cinemex's
shareholders, and certain of Cinemex's other shareholders, pursuant to which it
is contemplated that USLLC and USAC will purchase certain shares of Series P
Preferred Stock and Common Stock;

         E. WHEREAS, the Series PRD Preferred Shares (as defined in Exhibit A to
this Agreement) contain certain rights which are as set forth in Cinemex's
Organizational Documents (as defined in Exhibit A to this Agreement); and

         F. WHEREAS, in order to induce Investors to consummate the transactions
contemplated by the Cinemex Stock Purchase Agreement and the Hoyts Stock
Purchase Agreement and to acquire control of Cinemex, Davila and Fastlicht have
agreed to enter into this Agreement.

         The parties, intending to be legally bound and based on the foregoing
recitals, hereby agree to grant the following:

                                     CLAUSES

1.       DEFINITIONS.

         Capitalized terms used in this Agreement shall have meanings set forth
in Exhibit A, which constitutes a part of this Agreement.

2.       EFFECTIVENESS; OTHER MATTERS.

         2.1 EFFECTIVE TIME. This Agreement shall become effective (the
"Effective Time") upon the execution and delivery of this Agreement by the
parties hereto.

         2.2 DELIVERIES AT OR PRIOR TO THE EFFECTIVE TIME. At, or prior to the
Effective Time:

         (a)      Investors shall receive or shall have received:

                  (i) releases in the form of Exhibit 2.2(a)(i), executed by
         each Shareholder (collectively, the "Shareholder Releases");

                  (ii) a Memorandum of Employment and Investment Terms in the
         form of Exhibit 2.2(a)(ii) (the "Davila Memorandum"), executed by
         Davila;

                  (iii) [Intentionally omitted];

                  (iv) a competition agreement in the form of Exhibit 2.2(a)(iv)
         (the "Davila Competition Agreement"), executed by Davila;

                  (v) a competition agreement in the form of Exhibit 2.2(a)(v)
         (the "Fastlicht Competition Agreement"), executed by Fastlicht; and

                                       2
<PAGE>
                  (vi) a certificate executed by Cinemex certifying:

                           (A) that each of its representations and warranties
                  contained in this Agreement (including, without limitation,
                  those set forth on Schedule B hereto) (disregarding all
                  qualifications and exceptions contained therein relating to
                  substantiality, materiality or Material Adverse Effect) were
                  true and correct when made and are true and correct on and as
                  of the Effective Date as if made on and as of the Effective
                  Date (except for those representations and warranties that
                  relate to a particular date, which representations and
                  warranties were true and correct as of such date), except for
                  any failures of such representations and warranties to be true
                  and correct (disregarding all such qualifications as
                  aforesaid) that, taken together, would not reasonably be
                  expected to (i) have a Material Adverse Effect or (ii)
                  materially impede or delay the ability of Investors to
                  consummate the Contemplated Transactions; and

                           (B) that it has performed or complied with, in all
                  material respects, all agreements and covenants required to be
                  performed or complied with by it under this Agreement at or
                  prior to the Effective Date (including, without limitation,
                  those set forth on Schedule C hereto), except for any failures
                  to perform or comply with such agreements and covenants that,
                  taken together, would not reasonably be expected to (i) have a
                  Material Adverse Effect or (ii) materially impair or delay the
                  ability of Investors to consummate the Contemplated
                  Transactions.

         (b) Investors will:

                  (i) deliver to Davila the Davila Memorandum and the Davila
         Competition Agreement, executed by Cinemex and Investors;

                  (ii) deliver to Fastlicht the Fastlicht Competition Agreement,
         executed by Cinemex and Investors; and

                  (iii) deliver to the Shareholders a certificate executed by
         Investors certifying:

                           (A) that each of the representations and warranties
                  of Investors contained in this Agreement (disregarding all
                  qualifications and exceptions contained therein relating to
                  substantiality or to materiality) were true and correct when
                  made and are true and correct on and as of the Effective Date
                  as if made on and as of the Effective Date (except for those
                  representations and warranties that relate to a particular
                  date, which representations and warranties were true and
                  correct as of such date), except for any failures of such
                  representations and warranties to be true and correct
                  (disregarding all such qualifications, as aforesaid) that,
                  taken together, would not reasonably be expected to (i) have a
                  material adverse effect on the business, operations, assets,
                  financial condition or results of

                                       3
<PAGE>
                  operations of Investors (considered collectively), provided,
                  that in determining whether there has been such a material
                  adverse effect, Investors may disregard any adverse effect
                  principally attributable to (I) general political, economic,
                  business, industry or financial market conditions and (II) the
                  taking of any action specifically required by this Agreement,
                  or (ii) materially delay or impair the ability of the
                  Shareholders to consummate the Contemplated Transactions; and

                           (B) that Investors have performed or complied with,
                  in all material respects, all agreements and covenants
                  required to be performed or complied with by them under this
                  Agreement at or prior to the Effective Date (including,
                  without limitation, those set forth in Schedule C hereto),
                  except for any failures by Investors to perform or comply with
                  such agreements and covenants that, taken together, would not
                  reasonably be expected to (i) have a material adverse effect
                  on the business, operations, assets, financial condition or
                  results of operations of Investors (considered collectively);
                  provided, that in determining whether there has been such a
                  material adverse effect, Investors may disregard any adverse
                  effect principally attributable to (I) general political,
                  economic, business, industry or financial market conditions
                  and (II) the taking of any action specifically required by the
                  Agreement, or (ii) materially delay or impair the ability of
                  the Shareholders to consummate the Contemplated Transactions.

3.    REPRESENTATIONS AND WARRANTIES OF CINEMEX.

         Cinemex hereby makes all of the representations and warranties to
Investors set forth on Schedule B hereto, which constitutes part of this
Agreement.

4.    REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS.

         Each Shareholder separately, and not jointly or severally, represents
and warrants to Investors as to itself as follows:

         4.1 Nationality and Domicile. Schedule 4.1 sets forth the nationality
and domicile of such Shareholder.

         4.2 Authority; No Conflict.

         (a) This Agreement and each Ancillary Agreement to which such
Shareholder is a party constitutes the legal, valid and binding obligation of
such Shareholder, enforceable against such Shareholder in accordance with its
terms. Such Shareholder has the absolute and unrestricted right, power,
authority and capacity to execute and deliver this Agreement and each Ancillary
Agreement to which such Shareholder is a party and to perform his obligations
hereunder and thereunder.

         (b) Except as set forth in Schedule 4.2, neither the execution and
delivery of this Agreement nor the consummation or performance by such
Shareholder of any of the

                                       4
<PAGE>
Contemplated Transactions will, directly or indirectly (with or without notice
or lapse of time), contravene, conflict with, or result in a violation of, or
give any Governmental Body or other Person the right to challenge any of the
Contemplated Transactions or to exercise any remedy or obtain any relief under,
any Legal Requirement or any Order to which such Shareholder may be subject.

         Except as set forth in Schedule 4.2 or those which have been obtained,
given or made, such Shareholder is not and will not be required to give any
notice to or obtain any Consent from any Person in connection with the execution
and delivery of this Agreement or the Ancillary Agreements or the consummation
or performance of any of the Contemplated Transactions.

         4.3 LEGAL PROCEEDINGS; ORDERS. Except as set forth in Schedule 4.3,
such Shareholder is not subject to any Order that relates to the business of, or
any of the assets owned or used by, any Cinemex Company.

         4.4 TITLE TO SHARES. Such Shareholder is the sole, legal, record and
beneficial owner of the shares of Series PRD Preferred Stock set forth opposite
such Shareholder's name under the caption "Shares" on Schedule A as of the date
hereof, and will be the sole, legal, record and beneficial owner of such shares
of Series PRD Preferred Stock immediately prior to the Effective Time, free and
clear of all Encumbrances. Except as set forth in Schedule 4.4, no legend or
other reference to any purported Encumbrance appears upon any registration of or
certificate representing shares of Series PRD Preferred Stock identified on
Schedule A as being owned by such Shareholder, which legends and Encumbrances
will be removed on or prior to the Effective Date.

         4.5 RELATIONSHIPS WITH RELATED PERSONS. Except as set forth on Schedule
4.5, neither such Shareholder nor any Related Person of such Shareholder:

         (a) has, or since January 1, 2000 has had, any interest in any property
(whether real estate property, personal property or mixed and whether tangible
or intangible), used in or pertaining to the Cinemex Companies' businesses; or

         (b) owns, or since January 1, 2000 has owned (of record or as a
beneficial owner) an equity interest or any other financial or profit interest
in, a Person that has (i) had business dealings or a material financial interest
in any transaction with any Cinemex Company other than business dealings or
transactions conducted in the Ordinary Course of Business with the Cinemex
Companies at substantially prevailing market prices and on substantially
prevailing market terms and conditions, or (ii) engaged in competition with any
Cinemex Company with respect to any Competing Business, except for the ownership
of less than one percent of the outstanding capital stock of any Competing
Business that is publicly traded on any recognized exchange or in the
over-the-counter market.

         (c) is a party to any Contract with, or has any claim or right against,
any Cinemex Company other than (i) rights arising under Cinemex's Organizational
Documents or (ii) rights relating to the such Shareholder's ownership of Common
Stock or Series P Preferred Stock which terminated in connection with the
Recapitalization or which will terminate at or prior to Effective Time.

                                       5
<PAGE>
         4.6 BROKERS OR FINDERS. Neither such Shareholder nor any of such
Shareholder's agents has incurred any obligation or liability, contingent or
otherwise, for brokerage or finders' fees or agents' commissions or other
similar payment in connection with this Agreement.

         4.7 ACCURACY OF REPRESENTATIONS AND WARRANTIES OF CINEMEX. To the
Knowledge of such Shareholder, all representations and warranties made by
Cinemex in this Agreement are true, accurate and complete in all material
respects.

5.    REPRESENTATIONS AND WARRANTIES OF INVESTORS.

         Investors represent and warrant to the Shareholders as follows:

         5.1 ORGANIZATION AND GOOD STANDING. USLLC is a limited liability
company duly organized, validly existing and in good standing under the laws of
the state of Delaware, with full limited liability company power and authority
to conduct its business as it is now being conducted and to perform all its
obligations under each Contract to which it is a party. USAC is a corporation
duly organized, validly existing and in good standing under the laws of the
state of Delaware, with full corporate power and authority to conduct its
business as it is now being conducted and to perform all its obligations under
each Contract to which it is a party. MAV is a corporation duly organized,
validly existing and in good standing under the laws of Mexico, with full
corporate power and authority to conduct its business as it is now being
conducted and to perform all its obligations under each Contract to which it is
a party.

         5.2 AUTHORITY; NO CONFLICT.

         (a) The execution, delivery and performance of this Agreement and the
Ancillary Agreements to which any Investor is a party and the consummation or
performance by any Investor of the Contemplated Transactions has been duly
authorized by all necessary action on the part of any Investor. This Agreement
and the Ancillary Agreements to which any Investor is a party constitutes the
legal, valid and binding obligation of each Investor, enforceable against such
Investor (as applicable) in accordance with their terms. Each Investor has the
absolute and unrestricted right, power and authority to execute and deliver this
Agreement and the Ancillary Agreements to which it is a party and to perform its
respective obligations hereunder and thereunder.

         (b) Except as set forth in Schedule 5.2, neither the execution and
delivery by any Investor of this Agreement and the Ancillary Agreements to which
any Investor is a party nor any Investor's consummation or performance of any of
the Contemplated Transactions will give any Person the right to prevent, delay,
or otherwise interfere with any of the Contemplated Transactions pursuant to:

                  (i) any provision of any Investor's Organizational Documents;

                  (ii) any resolution adopted by the board of directors or the
         stockholders of any Investor;

                  (iii) any Legal Requirement or Order to which any Investor may
         be subject; or

                                       6
<PAGE>
                  (iv) any Contract to which any Investor is a party or by which
         any Investor may be bound.

         Except for those which have been obtained, given or made, none of the
Investors will be required to give any notice to or obtain any Consent from any
Person in connection with the execution and delivery of this Agreement and the
Ancillary Agreement to which it is a party or the consummation or performance of
any of the Contemplated Transactions.

         5.3 CERTAIN PROCEEDINGS. There is no pending Proceeding that has been
commenced against any Investor and that challenges, or may have the effect of
preventing, delaying, making illegal, or otherwise interfering with, any of the
Contemplated Transactions. To Investors' Knowledge, no such Proceeding has been
Threatened.

         5.4 BROKERS OR FINDERS. None of the Investors has incurred any
obligation or liability, contingent or otherwise, for brokerage or finders' fees
or agents' commissions or other similar payment in connection with this
Agreement.

         5.5 NO ADDITIONAL REPRESENTATIONS. Investors have conducted their own
due diligence investigation of the Cinemex Companies and related matters. None
of Cinemex or the Shareholders, has made, and Investors has not relied on any
representation or warranty, except as set forth in this Agreement, the Cinemex
Stock Purchase Agreement or the Hoyts Stock Purchase Agreement, it being
understood that a party hereto that is not a party to the Cinemex Stock Purchase
Agreement or the Hoyts Stock Purchase Agreement will not have any liability or
obligation with respect to representations and warranties made in such other
agreements. Nothing in this Section 5.5 shall in any way affect or limit any
Shareholder's liabilities or obligations under Sections 4 and 8 of this
Agreement.

6. COVENANTS PRIOR TO EFFECTIVE DATE. Each of the parties hereby agrees to
perform the covenants and other agreements applicable to such party set forth on
Schedule C hereto, which constitutes part of this Agreement.

7.    CALL BY CINEMEX.

      7.1 CALL OPTION. For a period of three (3) years following the Effective
Date, Cinemex (or its designee) shall have the right, but not the obligation, at
any time during such period, and from time to time to purchase, by delivery of a
written notice (a "Call Notice") to Davila, and Davila shall be required to sell
to Cinemex (or its designee) upon his receipt of a Call Notice, any and all
shares of the capital stock and other equity interests of any Subsidiary of
Cinemex he owns on the date such Call Notice is delivered by Cinemex (the "Call
Shares") for an aggregate price equal to $1,000 pesos. Davila agrees that he
will not transfer, assign, sell, encumber or suffer to Encumbrance, dictate or
otherwise dispose of any shares of capital stock of a Subsidiary of Cinemex that
he owns on the date hereof (except as contemplated by this Section 7).

      7.2 CLOSING FOR EXERCISE OF CALL OPTION. The closing of any purchase of
Call Shares by Cinemex (or its designee) from Davila shall take place at the
principal office of Cinemex at 10:00 a.m. (local time) on such date as Cinemex
shall specify in the Call Notice. At such closing, Davila shall deliver to
Cinemex (or its designee), against payment by Cinemex (or its

                                       7
<PAGE>
designee) of the purchase price for the Call Shares in cash, certificates
evidencing the Call Shares, duly endorsed in property in favor of Cinemex (or
its designee), free and clear of all Encumbrances (other than those created by
this Agreement).

      7.3 POWER OF ATTORNEY. Davila hereby agrees to grant, not later than sixty
(60) days following the date hereof, an irrevocable power of attorney to the
Person or Persons appointed by Investors to, in his name of and his behalf,
execute and deliver all such instruments and other documents as may be necessary
effectively to transfer the Call Shares to Cinemex (or its designee) under this
Section 7, including but not limited to the endorsement in property of the
certificate(s) evidencing the Call Shares in favor of Cinemex (or its designee),
free and clear of all Encumbrances (other than those created by this Agreement).
Davila hereby ratifies and confirms and agrees to ratify and confirm all that
such attorney may lawfully do or cause to be done by virtue of the provisions of
this Section.

8.    INDEMNIFICATION; REMEDIES.

      8.1 SURVIVAL; RIGHT TO INDEMNIFICATION NOT AFFECTED BY KNOWLEDGE. All
representations, warranties, covenants, and obligations in this Agreement, the
Schedules hereto, the supplements to such Schedules, the certificates delivered
pursuant to Sections 2.2(a)(vi) and 2.2(b)(iv) and any other certificate or
document delivered pursuant to this Agreement will survive the Effective Date.
The right to indemnification, payment of Damages or other remedy based on such
representations, warranties, covenants and obligations will not be affected by
any investigation conducted with respect to, or any Knowledge acquired (or
capable of being acquired) at any time, whether before or after the execution
and delivery of this Agreement or the Effective Date, with respect to the
accuracy or inaccuracy of or compliance with, any such representation, warranty,
covenant, or obligation.

8.2   INDEMNIFICATION AND PAYMENT OF DAMAGES BY THE SHAREHOLDERS.

      (a) Each Shareholder, separately and not jointly or severally, will
indemnify and hold harmless Investors, the Cinemex Companies and their
respective Representatives, stockholders, controlling persons and affiliates and
their respective successors or assignees (collectively, the "Investor
Indemnified Persons") for, and will pay to the Investor Indemnified Persons such
Shareholder's Percentage of the amount of, any loss, liability, claim, damage,
expense (including costs of investigation and defense and reasonable attorneys'
fees), fine, penalty or loss profits or, whether or not involving a third-party
claim (collectively, "Damages"), arising, directly or indirectly, from or in
connection with:

      (i) any Breach of any representation or warranty made by Cinemex in this
Agreement (including, without limitation, those set forth in Schedule B hereto)
(notwithstanding that such Shareholder has not made such representation or
warranty) (without giving effect to any supplement to the Schedules hereto), the
Schedules hereto, the supplements to such Schedules or any other certificate or
document delivered by Cinemex pursuant to this Agreement;

      (ii) any Breach of any representation or warranty made by Cinemex in this
Agreement (notwithstanding that such Shareholder has not made such
representation or

                                       8
<PAGE>
warranty) (including, without limitation, those set forth in Schedule B hereto)
as if such representation or warranty were made on and as of the Effective Date
without giving effect to any supplement to the Schedules hereto, other than any
such Breach that is disclosed in a supplement to such Schedules and is expressly
identified in the certificate delivered pursuant to Section 2.2(a)(vi) as an
exception to the certification required to be made by Cinemex pursuant to such
Section (other than any such Breach as to which indemnity is available under
clause (iv) below);

         (iii) any Breach by Cinemex of any covenant or obligation of Cinemex in
this Agreement (including, without limitation, those set forth in Schedule C
hereto) (other than any such Breach as to which indemnity is available under
clause (iv) below);

         (iv) subject to Section 8.9(c), the payment of (A) Pre-Closing Taxes of
the Cinemex Companies to the extent that the actual amount of unpaid Pre-Closing
Taxes exceeds the amount of unpaid Pre-Closing Taxes reflected as a liability on
the Net Assets/Liabilities Statement, (B) 50% of all Transfer Taxes and (C)
Taxes of the Cinemex Companies attributable to a Post-Closing Tax Period to the
extent that they constitute Damages due to a breach of any representation or
warranty made pursuant to Section 3.11 of Schedule B hereto; provided, however,
Shareholders shall not be obligated to indemnify the Investor Indemnified
Persons for Taxes pursuant to clause (A) of this Section 8.2(a)(iv) that are
imposed on an item of income to the extent that the economic value corresponding
to such item is possessed by the Cinemex Companies and has not been reflected in
the Closing Balance Sheet, the Net Assets/Liabilities Statement or the other
financial statements of the Cinemex Companies; provided, further, that for
purposes of determining the amount of the Shareholders' liability under this
clause (iv), the actual amount of unpaid Pre-Closing Taxes of the Cinemex
Companies shall be determined on a net basis taking into account any refunds of
Pre-Closing Taxes received by any of the Cinemex Companies and retained by it by
virtue of the application of clause (ii) of Section 8.9(a);

         (v) any Disruption referred to in Section 8.2(c) or the Santa Fe Event
referred to in Section 8.2(d);

         (vi) any claim by any Person for brokerage or finder's fees or
commissions or similar payments based upon any agreement or understanding
alleged to have been made by any such Person with any Cinemex Company (or any
Person acting on its behalf) in connection with any of the Contemplated
Transactions; or

         (vii) any Breach of any representation or warranty made by such
Shareholder in Section 4.7 of this Agreement.

The parties acknowledge that the Percentages of the Shareholders have been
calculated on the basis that they would apply to the Damages that would be
sustained by a purchaser of 100% of the outstanding shares and equity interests
in Cinemex, without giving effect to any indemnification under the Hoyts Stock
Purchase Agreement or the Cinemex Stock Purchase Agreement.

                                       9
<PAGE>
         (b) Each Shareholder will indemnify and hold harmless the Investor
Indemnified Persons for, and will pay to the Investor Indemnified Persons the
amount of, any Damages arising, directly or indirectly, from or in connection
with:

         (i) any Breach of any representation or warranty made by such
Shareholder in Section 4.1, 4.2, 4.3, 4.4, 4.5 or 4.6 of this Agreement;

         (ii) any Breach by such Shareholder of any covenant or obligation of
such Shareholder in this Agreement; or

         (iii) any claim by any Person for brokerage or finder's fees or
commissions or similar payments based upon any agreement or understanding
alleged to have been made by any such Person with such Shareholder (or any
Person acting on such Shareholder's behalf) in connection with any of the
Contemplated Transactions.

         (c) (i) For purposes of this Agreement, a "Disruption" shall mean the
closure of the entire operation of any of the Coapa, Polanco or Universidad
theatres (each, an "Affected Theatre") that (i) continues for more than seven
(7) calendar days; (ii) is caused by the inability of the relevant Cinemex
Company to obtain or renew one or more of the Mexican Governmental
Authorizations for such theatre that is required as of and has not been obtained
as of the Effective Date; and (iii) commences within 18 months of the Effective
Date.

         (ii) Notwithstanding anything in this Agreement to the contrary, (i)
the sole Damages sustained by the Investor Indemnified Persons as a result of
any Disruption that terminates within twelve (12) months of the commencement of
such Disruption (each, a "Minor Disruption") shall be equal to the product
obtained by multiplying (A) the projected annual theatre level cash flow for the
Affected Theatre as set forth in Cinemex's fiscal 2002 budget (a copy of which
is attached hereto as Exhibit 8.2(c) (the "Projected Cash Flow") divided by 365;
times (B) the number of calendar days constituting such Minor Disruption less
seven (7); and (ii) the sole Damages sustained by the Investor Indemnified
Persons as a result of any Disruption that continues for twelve (12) months or
more from and after its commencement (a "Major Disruption") shall be equal to
the product obtained by multiplying the Projected Cash Flow for the Affected
Theatre times six (6); provided that if such Affected Theater shall reopen
within eighteen (18) months following the commencement of such Major Disruption
and remain open for twelve (12) continuous months after reopening, the Investor
Indemnified Persons shall reimburse each Shareholder an amount equal to the
excess, if any, of (x) the lesser of (A) the amount paid by that Shareholder to
the Investor Indemnified Persons in respect of the Damages sustained from such
Major Disruption and (B) the product of (I) that Shareholder's Percentage, (II)
the cash flow for the Affected Theater for the twelve (12) month period
immediately following the end of such Major Disruption and (III) six (6) over
(y) the product of (I) that Shareholder's Percentage, (II) the Projected Cash
Flow for the Affected Theater and (III) the quotient obtained by dividing the
number of calendar days constituting such Major Disruption by 365.

         (d) (i) For purposes of this Agreement, the "Santa Fe Event" shall mean
the successful suspension, expiration or termination by the landlord of the rent
reduction currently in effect with respect to the Santa Fe theatre lease, dated
March 2, 1995, as amended,

                                       10
<PAGE>
other than as a result of the construction and completion of the expansion of
the Santa Fe shopping center by the landlord and the relocation of the Santa Fe
theatre complex elsewhere in the center.

         (ii) Notwithstanding anything in this Agreement to the contrary, the
sole Damages sustained by the Investor Indemnified Persons in connection with
the Santa Fe Event shall be in an amount equal to the difference between (A) the
rent payable under the Santa Fe lease for the 12 months following the Santa Fe
Event and (B) the rent that would have been payable under the Santa Fe lease
during such period had the Santa Fe Event not occurred, times six (6).

         (e) Notwithstanding anything in this Agreement to the contrary, Damages
sustained by the Buyer Indemnified Persons in connection with the application of
Sections 8.2(a)(v), 8.2(c) and/or 8.2(d) of this Agreement shall be payable as
provided in such Sections so long as, and only if, the Santa Fe Event or any
Disruption, as applicable, occurs within 18 months of the Effective Date.

         8.3 INDEMNIFICATION AND PAYMENT OF DAMAGES BY INVESTORS. Investors will
jointly and severally indemnify and hold harmless the Shareholders and their
respective Representatives, stockholders, controlling persons and affiliates and
their respective successors and assignees (collectively, the "Shareholder
Indemnified Persons") for, and will pay to the Shareholder Indemnified Persons
the amount of, any Damages arising, directly or indirectly, from or in
connection with:

         (a) any Breach of any representation or warranty made by either
Investor in this Agreement (without giving effect to any supplement to the
Schedules hereto), the Schedules hereto, the supplements to such Schedules or
any other certificate or document delivered by either Investor pursuant to this
Agreement;

         (b) any Breach of any representation or warranty made by either
Investor in this Agreement as if such representation or warranty were made on
and as of the Effective Date without giving effect to any supplement to the
Schedules hereto, other than any such Breach that is disclosed in a supplement
to such Schedules and is expressly identified in the certificate delivered
pursuant to Section 2.2(b)(iv) as an exception to the certification required to
be made by Investors pursuant to such Section;

         (c) any Breach by either Investor of any covenant or obligation of such
Investor in this Agreement; or

         (d) any claim by any Person for brokerage or finder's fees or
commissions or similar payments based upon any agreement or understanding
alleged to have been made by any such Person with either Investor (or any Person
acting on their behalf) in connection with any of the Contemplated Transactions.

8.4      TIME LIMITATIONS.

         (a) A Shareholder will not have liability (for indemnification or
otherwise) with respect to any representation or warranty, or covenant or
obligation to be performed and

                                       11
<PAGE>
complied with prior to the Effective Date, other than those in Sections 3.3,
3.4, 3.5, 3.11 or 3.13 of Schedule B, or Sections 4.1, 4.2, 4.4 or 8.2(a)(iv)
unless on or before the day which is 18 calendar months after the Effective
Time, Investors notify such Shareholder of a claim specifying the factual basis
of that claim in reasonable detail to the extent then known by Investors. A
claim with respect to:

         (i) Section 3.3, 3.4 or 3.5 of Schedule B or Sections 4.1, 4.2 or 4.4
may be made at any time; and

         (ii) Section 3.11 or 3.13 of Schedule B or Section 8.2(a)(iv) may be
made upon notice to such Shareholder prior to sixty (60) days after the
expiration of the statute of limitations applicable to the underlying claim (as
it may from time to time be extended), unless no statute of limitations is
applicable to the underlying claim, in which event a claim hereunder may be made
at any time.

         (b) Investors will have no liability (for indemnification or otherwise)
with respect to any representation or warranty, or covenant or obligation to be
performed and complied with prior to the Effective Date, unless on or before the
day which is 18 calendar months after the Effective Date, the Shareholder
asserting the claim notifies Investors of a claim specifying the factual basis
of that claim in reasonable detail to the extent then known by such Shareholder.

         8.5 LIMITATIONS ON AMOUNT - SHAREHOLDERS. A Shareholder will not have
liability (for indemnification or otherwise) with respect to the matters
described in Sections 8.2(a)(i), 8.2(a)(ii), 8.2(a)(iii), 8.2(a)(iv), 8.2(a)(v)
or 8.2(a)(vii) until such Shareholder's Attributable Damages exceeds such
Shareholder's Basket Amount and then shall have liability only to the extent
such Shareholder's Attributable Damages exceeds such Shareholder's Basket
Amount. A Shareholder's aggregate liability (for indemnification or otherwise)
with respect to the matters described in Section 8.2(a) shall not exceed such
Shareholder's Cap Amount. Notwithstanding the foregoing, (A) neither such
Shareholder's Cap Amount nor such Shareholder's Basket Amount shall apply to
Damages with respect to (x) the matters described in Section 8.2(b) or (y) any
Breach of any of Cinemex's representations and warranties involving fraud on the
part of such Shareholder and (B) no Shareholder's Basket Amount shall apply to
Damages with respect to the matters described in Section 8.2(a)(vi).

         8.6 LIMITATIONS ON AMOUNT - INVESTORS. Investors will not have
liability (for indemnification or otherwise) with respect to the matters
described in Sections 8.3(a), 8.3(b) or 8.3(c) until the total of all Damages
with respect to such matters exceeds the Basket Amount and then Investors shall
only have liability with respect to such matters to the extent such Damages
exceed the Basket Amount. Investors' aggregate liability (for indemnification or
otherwise) with respect to the matters described in Section 8.3 shall not exceed
the Cap Amount. Notwithstanding the foregoing, (A) neither the Cap Amount nor
the Basket Amount shall apply to Damages with respect to any Breach of any of
Investors' representations and warranties involving fraud and (B) the Basket
Amount shall not apply to Damages with respect to matters described in Section
8.3(d).

                                       12
<PAGE>
8.7   PROCEDURE FOR INDEMNIFICATION - THIRD PARTY CLAIMS.

         (a) Promptly after receipt by an indemnified party under Section 8.2 or
8.3 of notice of the commencement of any Proceeding against it, such indemnified
party will, if a claim is to be made against an indemnifying party under such
Section, give notice to the indemnifying party of the commencement of such
claim, but the failure to notify the indemnifying party will not relieve the
indemnifying party of any liability that it may have to any indemnified party,
except to the extent that the indemnifying party demonstrates that the defense
of such action is prejudiced by the indemnified party's failure to give such
notice.

         (b) If any Proceeding referred to in Section 8.7(a) is brought against
an indemnified party and it gives notice to the indemnifying party of the
commencement of such Proceeding, the indemnifying party will, unless the claim
involves Taxes, be entitled to participate in such Proceeding and, to the extent
that it wishes (unless the indemnifying party is also a party to such Proceeding
and the indemnified party determines in good faith that joint representation
would be inappropriate) to assume the defense of such Proceeding with counsel
satisfactory to the indemnified party and, after notice from the indemnifying
party to the indemnified party of its election to assume the defense of such
Proceeding, the indemnifying party will not, as long as it diligently conducts
such defense, be liable to the indemnified party under this Section 8 for any
fees of other counsel or any other expenses with respect to the defense of such
Proceeding, in each case subsequently incurred by the indemnified party in
connection with the defense of such Proceeding, other than reasonable costs of
investigation. If the indemnifying party assumes the defense of a Proceeding,
(i) it will be conclusively established for purposes of this Agreement that the
claims made in that Proceeding are within the scope of and subject to
indemnification; (ii) no compromise or settlement of such claims may be effected
by the indemnifying party without the indemnified party's consent unless (A)
there is no finding or admission of any violation of Legal Requirements or any
violation of the rights of any Person and no effect on any other claims that may
be made against the indemnified party, and (B) the sole relief provided is
monetary damages that are paid in full by the indemnifying party; and (iii) the
indemnifying party will have no liability with respect to any compromise or
settlement of such claims effected without its consent. If notice is given to an
indemnifying party of the commencement of any Proceeding and the indemnifying
party does not, within ten days after the indemnified party's notice is given,
give notice to the indemnified party of its election to assume the defense of
such Proceeding, the indemnifying party will be bound by any determination made
in such Proceeding or any good faith compromise or settlement effected by the
indemnified party.

         (c) Notwithstanding the foregoing, if an indemnified party determines
in good faith that there is a reasonable probability that a Proceeding may
adversely affect it or its affiliates other than as a result of monetary damages
for which it would be entitled to indemnification under this Agreement, the
indemnified party may, by notice to the indemnifying party, assume the exclusive
right to defend, compromise, or settle such Proceeding, but the indemnifying
party will not be bound by, or obligated to provide indemnification with respect
to (unless the basis therefor is established by a separate Proceeding) any
determination of a Proceeding so defended or any compromise or settlement
effected without its consent (which may not be unreasonably withheld).

                                       13
<PAGE>
         (d) The parties hereto hereby consent to the non-exclusive jurisdiction
of any court in which a Proceeding is brought by any other party other than a
Investor Indemnified Person or a Shareholder Indemnified Person against any
indemnified party for purposes of any claim that an indemnified party may have
under this Agreement with respect to such Proceeding or the matters alleged
therein, and agree that process may be served on each party hereto with respect
to such a claim anywhere in the world; provided, applicable Legal Requirements
are complied with.

      8.8 PROCEDURE FOR INDEMNIFICATION - OTHER CLAIMS. A claim for
indemnification for any matter not involving a third-party claim may be asserted
by notice to the party from whom indemnification is sought.

         Cinemex shall have no obligation (for indemnification or otherwise)
with respect to its representations and warranties in or pursuant to this
Agreement, and the indemnification obligations of the Shareholders shall not be
abated or subject to any defense that Cinemex made the inaccurate representation
and warranty on which the claim is based.

8.9   ADDITIONAL PROVISIONS REGARDING TAX INDEMNIFICATION.

         (a) If any of the Cinemex Companies receives any refund (whether such
refund is received directly or indirectly through a right of offset or credit)
of any Pre-Closing Taxes or Taxes otherwise described in Section 8.2(a)(iv) for
which the Shareholders have provided indemnification (other than any refunds in
respect of Transfer Taxes, any refunds accrued or any refunds reflected on the
books and records of any of the Cinemex Companies as of the Closing Date or any
refunds for which any of the Cinemex Companies has made a claim or initiated a
suit as of the Closing Date), then to the extent that such refund exceeds the
aggregate of (A) any Taxes payable by such Cinemex Company attributable to any
Post-Closing Tax Period which Taxes result from the adjustment to or amendment
of Tax Returns that give rise to the refund in question and (B) the Refund
Threshold, upon the actual or deemed receipt of any such refund by any Cinemex
Company or Investors, Cinemex shall promptly pay to each Shareholder an amount
equal to the product of (i) the amount of such refund (including any interest
thereon at the over-payment rate paid by the Governmental Body with respect to
such refund or credit) and (ii) such Shareholder's Percentage. The Shareholders
shall have the right to determine whether any claim for refund for such Taxes
shall be made on behalf of a Cinemex Company. Notwithstanding the preceding
sentence, neither Investors nor any Cinemex Company shall be required to file
any claim for refund that it reasonably believes is not true, correct and
complete in all material respects. Notwithstanding anything provided in this
Section 8.9(a), Investors reserve the right to pay any proposed refund or credit
(including interest thereon) to the Shareholders in cash (in the manner provided
in the first sentence of this Section 8.9(a)) in lieu of the filing of any
amended Tax Return or claim or suit for refund. If the Shareholders elect to
make a claim for refund, Investors and the Cinemex Companies shall cooperate
fully in connection therewith. Each Shareholder shall be responsible to
reimburse Investors and the Cinemex Companies for its Percentage of reasonable
out-of-pocket third- party expenses incurred in providing such cooperation. None
of the Cinemex Companies shall file, and Investors shall not file, and they
shall cause the Cinemex Companies not to file, any amended Tax Return or any
claim for a refund with respect to Pre-Closing Taxes of any of the Cinemex
Companies (y) without the prior consent of the Shareholders, the granting of
which

                                       14
<PAGE>
shall be in the Shareholders' sole discretion; or (z) unless Investors or the
relevant Cinemex Company in good faith determines that it is required to do so
under applicable Legal Requirements, and Selected Counsel does not, within
thirty days after Shareholders receive notice of such determination, render a
written legal opinion that the Investors and the Cinemex Companies are not
required to do so under applicable Legal Requirements. Notwithstanding the
foregoing, the Investors or the relevant Cinemex Company may file a claim for a
refund without meeting any of the conditions in clauses (y) or (z) or the
proviso of the preceding sentence, in which case the Shareholders shall have no
obligation to indemnify any of the Investors and the Cinemex Companies for any
Damages for Taxes incurred by any of the Investors or Cinemex Companies as a
consequence of such filing. In the event that Buyers or any of the Cinemex
Companies receives any refund in respect of Transfer Taxes, Cinemex shall
promptly pay to each Shareholder an amount equal to the product of 50% of such
refund and such Shareholder's Percentage. In the event that any Shareholder
receives any refund in respect of Transfer Taxes, such Shareholder shall
promptly pay to Buyers an amount equal to the product of 50% of the refund
received by such Shareholder.

         (b) Investors shall be entitled to any refund of any Taxes other than a
refund described in Section 8.9(a), including interest thereon. If any such
refund is paid to any Shareholder, such Shareholder shall promptly pay such
refund (including any interest thereon) to Investors. Investors shall have the
sole right to determine whether any claim for refund for such Taxes shall be
made. If Investors elect to make such a claim for refund, the Shareholders shall
cooperate fully in connection therewith. Investors and the Cinemex Companies
shall be jointly responsible to reimburse the Shareholders for any reasonable
out-of-pocket expenses incurred in providing such cooperation.

         (c) Investors shall include in their notice of any claim for
indemnification under Section 8.2(a)(iv) a detailed calculation of the amount of
the requested indemnity payment. The Shareholders shall not be obligated to
indemnify Investors until there has been a Final Determination of the Tax
liability for which indemnification is sought pursuant to Section 8.2(a)(iv). A
"Final Determination" shall mean (i) a final, unappealable decision by a court
of competent jurisdiction, (ii) the expiration of the applicable statute of
limitations, (iii) any other final and irrevocable determination of such Tax
liability, or (iv) the agreement by the Shareholders to pay such Tax liability.
In the event that the pursuit of any Tax Contest (defined in Section 8.9(d)
below) with respect to any Tax liability with respect to which indemnification
under Section 8.2(a)(iv) is sought requires the payment of such Tax or the
posting of any bond or deposit prior to a Final Determination with respect
thereto, the Shareholders shall pay or post any such amount up to the amount for
which they would be required to indemnify the Investors with respect to such Tax
liability if such Tax liability were finally determined to be due. The amount of
Shareholders' indemnification obligation, if any, shall be reduced by the amount
of Tax benefits realized by Investors or any of the Cinemex Companies from the
liabilities for which indemnification is made.

         (d) (i) Investors shall inform the Shareholders, and the Shareholders
shall be entitled to control and conduct those audits, examinations or
proceedings, administrative or judicial (a "Tax Contest"), relating to the
Cinemex Companies that are related to (A) the liability for any Taxes for which
the Shareholders would be required to indemnify Investors pursuant to Section
8.2(a)(iv), or (B) a claim for refund for any Taxes that the Shareholders are
entitled to

                                       15
<PAGE>
pursuant to this Section 8.9. Costs of any Tax Contest are to be borne by the
party controlling such Tax Contest. Investors shall deliver or cause to be
delivered to the Shareholders any power of attorney required to allow the
Shareholders and their counsel or accountant to represent the relevant Cinemex
Company in connection with the Tax Contest and shall provide the Shareholders
with such assistance as may be reasonably requested by the Shareholders in
connection with the Tax Contest. The Shareholders shall reimburse the relevant
Cinemex Company for reasonable out-of-pocket third party expenses incurred in
providing such assistance.

         (ii) Notwithstanding Section 8.9(d)(i), the Shareholders shall consult
in good faith with Investors with respect to the conduct of, or settlement of,
any Tax Contest. The Shareholders shall neither consent nor agree to the
settlement of any Tax Contest without Investors' prior consent which shall not
be unreasonably withheld or delayed, if such consent or agreement would legally
bind, or materially increase the Taxes of, any Cinemex Company in a Post-Closing
Tax Period, provided, however, that the Shareholders shall be entitled to settle
any such contest, even if such settlement would legally bind, or materially
increase the Taxes of, any Cinemex Company in a Post-Closing Tax Period, so long
as the Shareholders reimburse the Cinemex Companies for any liability for
additional Taxes for Post-Closing Periods incurred as a consequence of such
settlement.

         (iii) Investors shall inform the Shareholders of any Tax Contest with
regard to any Tax Return of the Cinemex Companies for an Overlap Period or any
other Post-Closing Tax Period that may result in an adjustment to any Tax for
which Shareholders may be liable to indemnify Investors or any Cinemex Company
pursuant to this Agreement. Investors shall control the conduct and resolution
of any such Tax Contest. Costs of such Tax Contests are to be borne by
Investors. Investors shall consult in good faith with the Shareholders with
respect to the conduct of, and before entering into any settlement of, any Tax
Contest that may have a material adverse impact on the liability for Taxes of
the Shareholders, or any Tax for which the Shareholders may be liable to
indemnify Investors or any Cinemex Company pursuant to this Agreement, and shall
not enter into any such settlement without the prior consent of the
Shareholders, which consent shall not be unreasonably withheld or delayed.

         (iv) The failure of Investors to inform the Shareholders of a Tax
Contest on a timely basis shall relieve the Shareholders of any liability for
Taxes due, as a result of such Tax Contest, unless Investors can demonstrate
that the failure to timely notify the Shareholders did not prejudice the
Shareholders with respect to the Tax liability that resulted from such Tax
Contest.

         (v) Neither the Shareholders nor any affiliate of the Shareholders
shall file any amended Tax Return that may affect the Tax liability of Investors
or any Cinemex Company or any group of affiliated corporations of which Cinemex
or any Cinemex Company is a member.

         (vi) Investors shall not file, and shall not allow any of the Cinemex
Companies or any affiliate of any of them to file any amended Tax Return (other
than Tax Returns referred to in Section 8.9(a)), or suit or claim for refund
that may affect the Tax liability of the Shareholders or any liability for Taxes
of which Shareholders may indemnify Investors or any

                                       16
<PAGE>
Cinemex Company pursuant to this Agreement without the consent of the
Shareholders, which consent shall not unreasonably be withheld or delayed.

         (vii) In the case of any Tax Contest described in Section 8.9(d)(i), if
notice is given to the Shareholders of the commencement of such Tax Contest and
the Shareholders do not, within thirty days after such notice is given, give
notice to Investors of their election to assume the defense of such Tax Contest,
the Shareholders will be bound by any determination made in such Tax Contest or
any good faith compromise or settlement effected by Investors or the relevant
Cinemex Company, as the case may be.

      8.10 FILING OF TAX RETURNS. The Shareholders shall prepare and file or
cause to be prepared and filed (at the expense of the Cinemex Companies) on a
timely basis all Tax Returns required to be filed prior to the Closing Date with
respect to the Cinemex Companies for Pre-Closing Tax Periods other than Overlap
Periods. Such Tax Returns shall be prepared in a manner consistent with past
practice of the Cinemex Companies. Investors and the Cinemex Companies shall
cooperate in the execution and filing of such Tax Returns, provided, however,
that Investors and the Cinemex Companies shall not be required to execute or
file any Tax Return that they reasonably believe is not true, correct and
complete in all material respects; provided further, that Investors and the
Cinemex Companies shall be deemed to have consented to the preparation,
execution and filing of Tax Returns to the extent they are prepared in a manner
consistent with past practices of the Cinemex Companies. Investors shall prepare
and file or cause to be prepared and filed all other Tax Returns and reports of
the Cinemex Companies. Investors shall prepare or shall cause to be prepared Tax
Returns for Pre-Closing Tax Periods required to be filed after the Closing Date,
including Tax Returns for Overlap Periods, in a manner consistent with past
practice of the Cinemex Companies. Shareholders shall be provided with and have
the right to review any such Tax Return at least 30 days prior to the due date
of such Tax Return, and such Tax Return shall not be filed without Shareholders'
consent, which shall not be unreasonably withheld or delayed. Shareholders shall
be deemed to have consented to the preparation, execution and filing of such Tax
Returns to the extent they are prepared in a manner consistent with past
practice of the Cinemex Companies.

      8.11 COOPERATION ON TAX MATTERS. The Shareholders, Investors and the
Cinemex Companies and their respective affiliates will provide the other parties
with such assistance as may reasonably be requested by any of them in connection
with the preparation of any Tax Return, any Tax Contests, any refund claims, or
any other claim arising under this Agreement, and each will retain and provide
the others with any records or information that may be relevant to any such Tax
Return, audit or examination, proceeding or claim. Such assistance shall include
making employees available on a mutually convenient basis to provide additional
information and explanation of any material provided hereunder and shall include
providing copies of any relevant Tax Returns and supporting work schedules. The
party requesting assistance hereunder shall reimburse the other parties for
reasonable out of pocket third-party expenses incurred in providing such
assistance. Notwithstanding any other provision of this Agreement, Investors
hereby agree that they will retain, or cause the relevant Cinemex Company to
retain, until all appropriate statutes of limitation (including any extensions)
expire, copies of all Tax Returns, supporting work schedules and other records
or information which may be relevant to such Tax

                                       17
<PAGE>
Returns, and that they will not destroy or otherwise dispose of, and will not
allow any of the Cinemex Companies to destroy or otherwise dispose of, such
materials without first providing the Shareholders with a reasonable opportunity
to review and copy such materials.

      8.12 ALLOCATION OF TAX LIABILITY FOR OVERLAP PERIODS. In the case of a Tax
Return for a Cinemex Company for an Overlap Period based upon income, gross
receipts (such as sales Taxes) or specific transactions involving Taxes other
than Taxes based upon income or gross receipts, the allocation of Taxes between
the period ending on the Effective Date and the period after the Effective Date
shall be made by means of an interim closing of the books and records of the
Cinemex Company as of the close of the Effective Date and by treating each
period within the Overlap Period as a separate taxable year, provided that
exemptions, allowances or deductions that are calculated on an annual basis
(including, but not limited to, depreciation and amortization deductions) shall
be allocated between the period ending on the Effective Date and the period
after the Effective Date in proportion to the number of days in each such
period. Notwithstanding the foregoing, if the liability for Taxes for an Overlap
Period is determined on a basis other than income or gross receipts or other
than with respect to a specific transaction, the allocation of Taxes to the
period ending on the Effective Date included in the Overlap Period shall be
equal to the amount of such Taxes for the Overlap Period multiplied by a
fraction, the numerator of which is the number of days in such period ending on
the Effective Date and the denominator of which is the total number of days in
the Overlap Period, and the amount of such Taxes allocated to the period
beginning after the Effective Date included in the Overlap Period shall be
excess of the amount of the Taxes for the Overlap Period over the amount of
Taxes attributable to the period ending on the Effective Date included in such
Overlap Period. If the liability for Taxes for the Overlap Period is increased
as a result of any action taken by Investors or any of the Cinemex Companies on
or after the Effective Date, the portion of such additional liability for Taxes
allocated to the period ending on the Effective Date shall be borne by
Investors.

8.13  CERTAIN MISCELLANEOUS TAX MATTERS.

         (a) Investors and the Cinemex Companies shall not, and Investors shall
cause the Cinemex Companies not to, make or change any elections, change an
annual accounting period, or adopt or change any accounting method with respect
to any of the Cinemex Companies in a Post-Closing Tax Period, if such action
would have the effect of increasing the Pre-Closing Taxes of any of the Cinemex
Companies (i) without the prior consent of the Shareholders, the granting of
which shall be in the Shareholders' sole discretion; or (ii) unless Investors or
the relevant Cinemex Company in good faith determines that it is required to do
so under applicable Legal Requirements, and Selected Counsel does not, within
thirty days after Shareholders receive notice of such determination, render a
written legal opinion that the Investors and the Cinemex Companies are not
required to do so under applicable Legal Requirements. Notwithstanding the
foregoing, the Investors or the relevant Cinemex Company may take the
contemplated action without meeting any of conditions in clauses(i) or (ii) or
the proviso of the preceding sentence, in which case the Shareholders shall have
no obligation to indemnify any of the Investors and the Cinemex Companies for
any Damages for Taxes incurred by any of the Investors and the Cinemex Companies
as a consequence of such actions.

                                       18
<PAGE>
         (b) Each of Shareholders and Investors agree not to cause any of the
Cinemex Companies to engage in any transaction on the Effective Date outside of
the ordinary course of business, except the transactions contemplated by this
Agreement.

         (c) Investors shall pay fifty percent (50%) of all Transfer Taxes.

      8.14 NOTICES AND DETERMINATIONS BY SHAREHOLDERS. With respect to any claim
for indemnification made under Section 8.2(a) or any provision of this Section 8
which contemplates a determination by, a notice from, the consent of, or any
other action by, Shareholders such determination by, notice from, consent of, or
other action by, Shareholders shall, except as provided in this Section 8.14,
require a determination of, notice of or to, consent of, or other action by all
SPA Shareholders, Hoyts, Davila and Fastlicht. However, (i) any Shareholder may
exercise its right as an indemnifying party to participate in, but not assume or
control, the defense of an action or proceeding under Section 8.7 at its own
expense, and (ii) any combination of the SPA Shareholders, Hoyts, Davila and
Fastlicht with an aggregate Percentage (attributing to Hoyts a Percentage of
29.935% and to each SPA Shareholder a Percentage equal to the percentage set
forth opposite such SPA Shareholder's name on Schedule A hereto under the
caption "Percentage") in excess of 50% may assume the defense of an action or
proceeding in accordance with Section 8.7 if they irrevocably agree with
Investors and Cinemex that for purposes of indemnification and reimbursement for
the matter to which such action or proceeding relates that their aggregate
Percentage (for purposes of this Agreement, the Hoyts Stock Purchase Agreement
and the Cinemex Stock Purchase Agreement) shall be 100% (allocated among them in
proportion to their respective Percentages) and designate a representative for
the conduct of such defense. If clause (ii) of the preceding sentence is
applicable to a matter which results in Damages that would be subject to
indemnification under Section 8.2(a) without regard to Section 8.5 (a
"Reallocated Matter"), then Section 8.5 shall be applied to any other matter
that may be the subject of indemnification under Section 8.2(a) as if the
Percentages and Attributable Damages applicable to, and any payments made with
respect to, the Reallocated Matter had been determined without regard to such
clause(ii). All determinations, notices, consents and other actions referred to
in this Section 8.14 must also be made or given under the Hoyts Stock Purchase
Agreement and the Cinemex Stock Purchase Agreement.

8.15 USE OF COMMERCIALLY REASONABLE EFFORTS. From and after the Effective Date,
Cinemex shall, and Investors shall cause the relevant Cinemex Companies to, use
their commercially reasonable efforts to prevent the occurrence of any
Disruption and/or the Santa Fe Event.

9.    GENERAL PROVISIONS.

      9.1 EXPENSES. Each party to this Agreement will bear its or his expenses
incurred in connection with the preparation, execution and performance of this
Agreement and the Contemplated Transactions, including all fees and expenses of
agents, representatives, counsel and accountants.

      9.2 PUBLIC ANNOUNCEMENTS. Any public announcement or similar publicity
with respect to this Agreement or the Contemplated Transactions will be issued,
if at all, at such time

                                       19
<PAGE>
and in such manner as Investors and Cinemex may agree. Unless consented to by
the parties hereto in advance or required by Legal Requirements, prior to the
Effective Time, Investors, the Shareholders and Cinemex shall, and Cinemex shall
cause the Cinemex Companies to, keep this Agreement strictly confidential and
may not make any disclosure of this Agreement to any Person. Cinemex and
Investors will consult with each other concerning the means by which the Cinemex
Companies' employees, customers, and suppliers and others having dealings with
the Cinemex Companies will be informed of the Contemplated Transactions, and
Investors and Cinemex will each have the right to be present for any such
communication.

      9.3 NOTICES. All notices, consents, waivers, and other communications
under this Agreement must be in writing and will be deemed to have been duly
given when (a) delivered by hand (with written confirmation of receipt), (b)
sent by telecopier (with written confirmation of receipt), provided that a copy
is mailed by registered mail, return receipt requested or (c) when received by
the addressee, if sent by an internationally recognized overnight delivery
service (receipt requested), in each case to the appropriate addresses and
telecopier numbers set forth below (or to such other addresses and telecopier
numbers as another party may designate by notice to the other parties):

                  Cinemex to:

                           Grupo Cinemex, S.A. de C.V.
                           Blvd. M. Avila Camacho No. 40, Piso 16
                           Lomas de Chapultepec
                           11000 Mexico, D.F.
                           Attention:  President

                           Facsimile No.: (011) 5255 5201 5889 or 5812

                  with a copy to:

                           Proskauer Rose LLP
                           1585 Broadway
                           New York, NY  10036
                           Attention:  Adam J. Kansler
                           Facsimile No.:  (212) 969-2900

                           Franck, Galicia y Robles, S.C.
                           Torre Del Bosque
                           Blvd. Manuel Avila Camacho 24, Piso 7
                           Col. Lomas De Chapultepec
                           11000 Mexico, Distrito Federal
                           Attention:  Rafael Robles Miaja
                           Facsimile No.:  (011) 5255-5540-9202

                  Shareholders to:

                        To the addresses and Persons identified on Schedule 9.3

                                       20
<PAGE>
                  with copies to:

                           Proskauer Rose LLP
                           1585 Broadway
                           New York, NY  10036
                           Attention:  Adam J. Kansler
                           Facsimile No.:  (212) 969-2900

                           Franck, Galicia y Robles, S.C.
                           Torre Del Bosque
                           Blvd. Manuel Avila Camacho 24, Piso 7
                           Col. Lomas De Chapultepec
                           11000 Mexico, Distrito Federal
                           Attention:  Rafael Robles Miaja
                           Facsimile No.:  (011) 5255-5540-9202

                  Investors, to:

                           Cinemex Acquisition, S.A. de C.V.,
                           Cinemex Acquisition Corp. and
                           Cinemex LLC
                           c/o Creel, Garcia-Cuellar y Muggenburg, S.C.
                           Paseo de los Tamarindos 60
                           Bosques de Las Lomas
                           05120 Mexico, Distrito Federal
                           Attention:  Carlos Creel Carrera
                           Facsimile No.: (011) 5255-1105-0690

                  with copies to:

                           Onex Investment Corporation
                           712 5th Avenue, 40th Floor
                           New York, New York 10019
                           Attention: Anthony Munk
                           Facsimile No.: (212) 582-0909

                           Oaktree Capital Management, LLC
                           333 South Grand Avenue, 28th Floor
                           Los Angeles, California 90071
                           Attention: Kenneth Liang
                           Facsimile No.: (213) 830-8522

                           Kaye Scholer LLP
                           425 Park Avenue
                           New York, New York  10022
                           Attention:  Joel I. Greenberg
                           Facsimile No.:  (212) 836-8211

                                       21
<PAGE>
      9.4 JURISDICTION. For any controversy related to this Agreement, the
parties hereto hereby expressly submit to the exclusive jurisdiction and
competence of the courts sitting in Mexico City, Federal District, Mexico,
including, but not limited to, the in personam and subject matter jurisdiction
of those courts, and the parties hereto hereby waive any right they may have to
submit to any other jurisdiction by reason of their domiciles or by any other
reason.

      9.5 FURTHER ASSURANCES. The parties agree (a) to furnish upon request to
each other such further information, (b) to execute and deliver to each other
such other documents and (c) to do such other acts and things, all as the other
party may reasonably request for the purpose of carrying out the intent of this
Agreement and the documents referred to in this Agreement.

      9.6 WAIVER. The rights and remedies of the parties to this Agreement are
cumulative and not alternative. Neither the failure nor any delay by any party
in exercising any right, power or privilege under this Agreement or the
documents referred to in this Agreement will operate as a waiver of such right,
power or privilege, and no single or partial exercise of any such right, power
or privilege will preclude any other or further exercise of such right, power or
privilege or the exercise of any other right, power or privilege. To the maximum
extent permitted by applicable law: (a) no claim or right arising out of this
Agreement or the documents referred to in this Agreement can be discharged by
one party, in whole or in part, by a waiver or renunciation of the claim or
right unless in writing signed by the other party; (b) no waiver that may be
given by a party will be applicable except in the specific instance for which it
is given; and (c) no notice to or demand on one party will be deemed to be a
waiver of any obligation of such party or of the right of the party giving such
notice or demand to take further action without notice or demand as provided in
this Agreement or the documents referred to in this Agreement.

      9.7 ENTIRE AGREEMENT AND MODIFICATION. This Agreement supersedes all prior
agreements between the parties (other than the Confidentiality Agreement) with
respect to its subject matter and constitutes (along with the documents referred
to in this Agreement) a complete and exclusive statement of the terms of the
agreement between the parties with respect to its subject matter. This Agreement
may not be amended except by a written agreement executed by Investors, in the
event that Investors are to be charged with the amendment or by each
Shareholder, in the event that the Shareholders are to be charged with the
amendment.

      9.8 SCHEDULES.

      (a) The disclosures in the Schedules, and those in any supplement thereto,
must relate only to the representations and warranties in the Section of the
Agreement to which they expressly relate except to the extent that any
information disclosed in any Schedule to the representations or warranties of
Cinemex or any Shareholder would on its face be manifestly relevant to another
such Schedule.

      (b) In the event of any inconsistency between the statements in the body
of this Agreement and those in the Schedules hereto (other than an exception
expressly set forth as such in the Schedules with respect to a specifically
identified representation or warranty), the statements in the body of this
Agreement will control.

                                       22
<PAGE>
      (c) Exhibit A and Schedules B and C (including the Annexes and other
attachments thereto) constitute a part of this Agreement as if the provisions
thereof were set forth in their entirety in this Agreement.

      9.9 ASSIGNMENTS, SUCCESSORS, AND NO THIRD-PARTY RIGHTS. No party may
assign any of its rights under this Agreement without the prior consent of the
other parties. Subject to the preceding sentence, this Agreement will apply to,
be binding in all respects upon and inure to the benefit of the successors and
permitted assigns of the parties. Nothing expressed or referred to in this
Agreement will be construed to give any Person other than the parties to this
Agreement any legal or equitable right, remedy or claim under or with respect to
this Agreement or any provision of this Agreement, except as specifically
contemplated by Section 11. This Agreement and all of its provisions and
conditions are for the sole and exclusive benefit of the parties to this
Agreement and their successors and assigns, except as specifically contemplated
by Section 11. Notwithstanding anything contained in this Section 12.9, no prior
consent of the parties shall be required for the collateral assignment by
Investors to any lender of Investors for security purposes and the assignment
thereof by any such lender or agent to any purchaser in connection with the
exercise by any such lender or agent of all of its rights and remedies as a
secured creditor with respect thereto.

      9.10 SEVERABILITY. If any provision of this Agreement is held invalid or
unenforceable by any court of competent jurisdiction, the other provisions of
this Agreement will remain in full force and effect. Any provision of this
Agreement held invalid or unenforceable only in part or degree will remain in
full force and effect to the extent not held invalid or unenforceable.

      9.11 SECTION HEADINGS, CONSTRUCTION. The headings of Sections in this
Agreement are provided for convenience only and will not affect its construction
or interpretation. All references to "Section" or "Sections" refer to the
corresponding Section or Sections of this Agreement. All words used in this
Agreement will be construed to be of such gender or number as the circumstances
require. Unless otherwise expressly provided, the word "including" does not
limit the preceding words or terms.

      9.12 GOVERNING LAW. The parties agree that this Agreement shall be
governed by and construed in accordance with the applicable laws of Mexico City,
Federal District, Mexico without giving effect to laws, rules or principles
regarding the conflict of laws.

      9.13 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute
one and the same agreement.

                                     *****

                                       23
<PAGE>
         IN WITNESS WHEREOF, the parties have executed and delivered this
Agreement as of the date first written above.

                                    CINEMEX LLC

                                    By:      /s/ Anthony Munk
                                             -----------------------------------
                                             Name: Anthony Munk
                                             Title:  Director

                                    CINEMEX ACQUISITION CORP.

                                    By:       /s/ Timothy A.R. Duncanson
                                             -----------------------------------
                                             Name:    Timothy A.R. Duncanson
                                             Title:   Vice President

                                    SYMPHONY ACQUISITION VEHICLE, S.A. DE C.V.

                                    By:       /s/ Timothy A.R. Duncanson
                                             -----------------------------------
                                             Name:    Timothy A.R. Duncanson
                                             Title:   Vice President

                                    GRUPO CINEMEX, S.A. DE C.V.

                                    By:       /s/ Adolfo Fastlicht Kurian
                                             -----------------------------------
                                             Name: Adolfo Fastlicht Kurian
                                             Title:

                                    /s/ Miguel Angel Davila Guzman
                                    --------------------------------------------
                                    Miguel Angel Davila Guzman

                                    /s/ Adolfo Fastlicht Kurian
                                    --------------------------------------------
                                    Adolfo Fastlicht Kurian
<PAGE>

                                    EXHIBIT A

                                   DEFINITIONS

         "Advisors" shall have the meaning set forth in Section 6.1 of Schedule
C to this Agreement.

         "Affected Theatre" shall have the meaning set forth in Section 8.2(c).

         "Agreement" shall have the meaning set forth in the first paragraph to
this Agreement.

         "Ancillary Agreements" shall mean the Davila Memorandum, the Davila
Competition Agreement, the Fastlicht Competition Agreement, the Shareholder
Releases and each the ancillary agreements to be delivered by the respective
parties to the Cinemex Stock Purchase Agreement and the Hoyts Stock Purchase
Agreement.

         "Applicable Contract" shall mean any Contract (a) under which any
Cinemex Company has or may acquire any rights, (b) under which any Cinemex
Company has or may become subject to any obligation or liability, or (c) by
which any Cinemex Company or any of the assets owned or used by it is or may
become bound.

         "Attributable Damages" shall mean, at any time, with respect to any
Shareholder, the product of (i) the aggregate Damages for the matters described
in Sections 8.2(a)(i), 8.2(a)(ii), 8.2(a)(iii), 8.2(a)(iv), 8.2(a)(v) or
8.2(a)(vii) for which Investors are entitled to indemnification (without regard
to Section 8.5) and (ii) such Shareholder's Percentage.

         "Balance Sheet" shall have the meaning set forth in Section 3.6 of
Schedule B to this Agreement.

         "Basket Amount" shall mean (i) with respect to any Shareholder, the
product of (x) one and one-half percent (1.5%) of the Equity Value and (y) such
Shareholder's Percentage, and (ii) with respect to Investors, collectively, one
and one-half percent (1.5%) of the Equity Value.

         "Best Efforts" shall mean the efforts that a prudent Person desirous of
achieving a result would use in similar circumstances to attempt to achieve such
result as expeditiously as possible; provided, however, that an obligation to
use Best Efforts under this Agreement does not require the Person subject to
that obligation to take actions that would result in a materially adverse change
in the benefits to such Person of this Agreement and the Contemplated
Transactions or would require such Person to pay any consideration or otherwise
incur any liability or obligation except where such consideration, liability or
obligation is insubstantial and immaterial.

         "Breach" - a "Breach" of a representation, warranty, covenant,
obligation, or other provision of this Agreement or any instrument delivered
pursuant to this Agreement will be deemed to have occurred if there is or has
been any inaccuracy in or breach of, or any failure to perform or comply with,
such representation, warranty, covenant, obligation, or other provision, and the
term "Breach" means any such inaccuracy, breach or failure.

         "BV" shall have the meaning set forth in the Recitals to this
Agreement.

                                    Exh. A-1
<PAGE>
         "Call Notice" shall have the meaning set forth in Section 7.1.

         "Call Shares" shall have the meaning set forth in Section 7.1.

         "Cap Amount" shall mean (i) with respect to any Shareholder, the
product of (x) twenty five percent (25%) of the Equity Value and (y) such
Shareholder's Percentage and (ii) with respect to Investors, collectively,
twenty five percent (25%) of the Equity Value.

         "Capitalized Lease Obligations" shall mean an obligation to pay rent or
other amounts under any lease of (or other arrangement conveying the right to
use) real and/or personal property which obligation is required to be classified
and accounted for as a capital lease on a balance sheet prepared in accordance
with GAAP, and for purposes hereof the amount of such obligation shall be the
capitalized amount thereof determined in accordance with GAAP.

         "Cinemex" shall have the meaning set forth in the first paragraph of
this Agreement.

         "Cinemex Companies" shall mean Cinemex and its Subsidiaries,
collectively.

         "Cinemex Indebtedness" shall mean (i) all obligations of the Cinemex
Companies for borrowed money (including, without limitation, the principal
amount outstanding under the Non-Revolving Credit Agreement, dated October 11,
2001, among Cadena Mexicana de Exhibicion, S.A. de C.V., BankBoston, N.A.,
General Electric Capital Corporation, Scotiabank Inverlat, S.A. and BBVA
Bancomer, S.A. (which, as of the Effective Date, shall be valued at the average
of the bid and ask peso/United States Dollar inter-bank exchange rate agreed to
by Cinemex and Investors on the Effective Date) and any unpaid fees, interest
and other amounts payable thereunder), (ii) all obligations of the Cinemex
Companies evidenced by bonds, debentures, notes or other similar instruments,
(iii) all obligations of the Cinemex Companies to pay the deferred purchase
price of property or services, except current trade accounts payable arising in
the Ordinary Course of Business, (iv) all of the Cinemex Companies' Capitalized
Lease Obligations, and (v) all obligations of the Cinemex Companies to reimburse
or repay any bank or other Person in respect of amounts paid or available to be
drawn under a letter of credit or banker's acceptance (each such obligation to
be valued at the face amount of such instrument).

         "Cinemex Stock Purchase Agreement" shall have the meaning set forth in
the Recitals to this Agreement.

         "Cleanup" shall mean the cleanup costs or corrective action, including
any investigation, cleanup, removal, containment or other remediation or
response actions.

         "Closing Balance Sheet" shall have the meaning set forth in Section
2.4(a).

         "CMEX" shall mean CMEX Investors, L.P.

         "Common Shares" shall have the meaning set forth in the Recitals to
this Agreement.

         "Common Stock" shall mean Cinemex's "Series B" registered, common, with
full voting rights, non-par value shares.

                                    Exh. A-2
<PAGE>
         "Competing Business" shall have the meaning set forth in Section 3.24
of Schedule B to this Agreement.

         "Concentration Trustee" shall have the meaning set forth in the
Recitals to this Agreement.

         "Confidentiality Agreement" shall mean the letter agreement, dated May
13, 2002, among Onex Investment Corp., Oaktree Capital Management, Cinemex and
the other parties thereto.

         "Consent" shall mean any approval, consent, ratification, waiver or
other authorization (including any Governmental Authorization).

         "Contemplated Transactions" shall mean all of the transactions
contemplated by this Agreement, and the following:

            (a) the execution, delivery, and performance of the Ancillary
Agreements by the respective parties thereto;

            (b) the performance by Investors and Shareholders of their
respective covenants and obligations under this Agreement;

            (c) the Recapitalization;

            (d) the execution, delivery and performance of the Cinemex Stock
Purchase Agreement and the documents and agreements contemplated thereby by the
parties thereto; and

            (e) the execution, delivery and performance of the Hoyts Stock
Purchase Agreement and the documents and agreements contemplated thereby by the
parties thereto.

         "Contract" shall mean any agreement, contract, obligation, promise or
undertaking (whether written or oral and whether express or implied) that is
legally binding.

         "CPHL" shall have the meaning set forth in the Recitals to this
Agreement.

         "Damages" shall have the meaning set forth in Section 8.2(a).

         "Davila" shall have the meaning set forth in the first paragraph to
this Agreement.

         "Davila Competition Agreement" shall have the meaning set forth in
Section 2.2(a)(iv).

         "Davila Memorandum" shall have the meaning set forth in Section
2.2(a)(ii).

         "Disruption" shall have the meaning set forth in Section 8.2(c)(i).

         "Effective Date" shall mean the date on which this Agreement becomes
effective in accordance with Section 2.1.

         "Effective Time" shall have the meaning set forth in Section 2.1.

                                    Exh. A-3
<PAGE>
         "Encumbrance" shall mean any charge, claim, community property
interest, condition, lien, option, pledge, mortgage, guaranty trust, easement,
security interest, right of first refusal or restriction of any kind, including
any restriction on use, voting, transfer, receipt of income or exercise of any
other attribute of ownership.

         "Environment" shall mean soil, land surface or subsurface strata,
surface waters (including navigable waters, ocean waters, streams, ponds,
drainage basins and wetlands), groundwaters, drinking water supply, stream
sediments, ambient air (including indoor air), plant and animal life, and any
other environmental medium or natural resource.

         "Environmental Law" shall mean any Mexican Legal Requirement that
requires or relates to:

            (a) advising appropriate authorities, employees and the public of
intended or actual releases of pollutants or hazardous substances or materials,
violations of discharge limits or other prohibitions and of the commencement of
activities, such as resource extraction or construction, that could have
significant impact on the Environment;

            (b) preventing or reducing to acceptable levels the release of
pollutants or hazardous substances or materials into the Environment;

            (c) reducing the quantities, preventing the release or minimizing
the hazardous characteristics of wastes that are generated;

            (d) protecting resources, species or ecological amenities;

            (e) reducing to acceptable levels the risks inherent in the
transportation of hazardous substances, pollutants, oil or other potentially
harmful substances;

            (f) cleaning up pollutants that have been released, preventing the
Threat of Release or paying the costs of such clean up or prevention; or

            (g) making responsible parties pay private parties, or groups of
them, for damages done to their health or the Environment, or permitting
self-appointed representatives of the public interest to recover for injuries
done to public assets.

         "Equity Value" shall mean the sum of $2,750'000,000.00 pesos plus the
Recent Capital Expenditures plus the Net Assets/Liabilities (if a positive
number) or minus the absolute value of the Net Assets/Liabilities (if a negative
number).

         "ESOP" shall have the meaning set forth in the Recitals to this
Agreement.

         "ESOP Payment" shall have the meaning set forth in the Recitals to this
Agreement.

         "Existing Stockholders Agreement" shall mean that certain Amendment and
Restated Stockholders Agreement, dated as of May 29, 1997, among JP Morgan
International Capital Corp., CMEX, SRL and certain other parties.

                                    Exh. A-4
<PAGE>
         "Facilities" shall mean any real estate property, leaseholds or other
similar interests currently or formerly owned or operated by any Cinemex Company
and any buildings, plants, structures or equipment (including motor vehicles)
currently or formerly owned, leased or operated by any Cinemex Company.

         "Family" of an individual includes (i) the individual, (ii) the
individual's spouse and former spouses, (iii) any other natural person who is a
child or grandchild of such individual's grandparents, and (iv) any other
natural person who regularly resides with such individual.

         "Fastlicht" shall have the meaning set forth in the first paragraph to
this Agreement.

         "Fastlicht Competition Agreement" shall have the meaning set forth in
Section 2.2(a)(v).

         "GAAP" shall mean generally accepted accounting principles in Mexico.

         "General Shareholders Meeting" shall have the meaning set forth in the
Recitals to this Agreement.

         "Governmental Authorization" shall mean any approval, consent, license,
permit, waiver or other authorization issued, granted, given or otherwise made
available by or under the authority of any Governmental Body or pursuant to any
Legal Requirement.

         "Governmental Body" shall mean any:

            (a) nation, state, county, city, town, village, district or other
jurisdiction of any nature;

            (b) federal, state, local, municipal, foreign or other government;

            (c) governmental authority of any nature (including any governmental
agency, branch, department, official or entity, centralized or decentralized,
commission, government owned or controlled entities and any court or other
tribunal);

            (d) multi-national organization or body; or

            (e) body exercising, or entitled to exercise, any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or
power of any nature.

         "Hazardous Activity" shall mean the distribution, generation, handling,
importing, management, manufacturing, processing, production, refinement,
Release, storage, transfer, transportation, treatment or use (including any
withdrawal or other use of groundwater) of Hazardous Materials in, on, under,
about or from the Facilities or any part thereof into the Environment, and any
other act, business or operation that poses an unreasonable risk of harm to
persons or property on or off the Facilities, or that may affect the value of
the Facilities or the Cinemex Companies, as the case may be.

         "Hazardous Materials" shall mean any waste or other substance that is
listed, defined, designated or classified as, or otherwise determined to be,
hazardous, radioactive or toxic or a

                                    Exh. A-5
<PAGE>
pollutant or a contaminant in amounts and concentrations which are regulated
under or pursuant to any Environmental Law, including any admixture or solution
thereof, and specifically including petroleum and all derivatives thereof or
synthetic substitutes therefor and friable asbestos or friable
asbestos-containing materials.

         "HCAL" shall have the meaning set forth in the Recitals to this
Agreement.

         "HCL" shall have the meaning set forth in the Recitals to this
Agreement.

         "HET" shall have the meaning set forth in the Recitals to this
Agreement.

         "HSR Act" shall mean the U.S. Hart-Scott-Rodino Antitrust Improvements
Act of 1976 or any successor law, and regulations and rules issued pursuant to
that Act or any successor law.

         "Hoyts" shall have the meaning set forth in the Recitals to this
Agreement.

         "Hoyts Stock Purchase Agreement" shall have the meaning set forth in
the Recitals to this Agreement.

         "Interim Balance Sheet" shall have the meaning set forth in Section 3.6
of Schedule B to this Agreement.

         "Investor Indemnified Persons" shall have the meaning set forth in
Section 8.2(a).

         "Investors" shall mean USAC, USLLC and MAV, collectively.

         "JPM" shall mean JPMCC Belgium, SCA, and Sixty Wall Street Belgium,
SCA, collectively.

         "Knowledge" - an individual will be deemed to have "Knowledge" of a
particular fact or other matter if:

            (a) such individual is actually aware of such fact or other matter;
or

            (b) a prudent individual could be expected to discover or otherwise
become aware of such fact or other matter in the course of performance of such
individual's regular employment duties.

A Person (other than an individual) will be deemed to have "Knowledge" of a
particular fact or other matter if any individual who is serving as a director,
officer, general partner, executor or trustee of such Person (or in any similar
capacity) has, or at any time prior to the Effective Time had, Knowledge of such
fact or other matter.

         "Legal Requirement" shall mean any federal, state, local, municipal,
foreign, international, multinational or other administrative order,
constitution, law, decree, ordinance, regulation, statute or treaty.

         "Major Disruption" shall have the meaning set forth in Section
8.2(c)(ii).

                                    Exh. A-6
<PAGE>
         "Management Trust Agreement" shall mean that certain Trust Agreement
No. F25234, dated as of March 24, 1995, among Cinemex, Miguel Angel Davila
Guzman, Adolfo Fastlicht Kurian, Matthew D. Heyman and BBVA Bancomer, S.A.,
Institucion de Banca Multiple, Grupo Financiero, as trustee, as amended.

         "Material Adverse Effect" shall mean any events, changes or effects
which, individually or in the aggregate, would have a material adverse effect on
the business, operations, assets, financial condition or results of operations
of the Cinemex Companies, taken as a whole; provided, however, that in
determining whether there has been a Material Adverse Effect, any adverse effect
principally attributable to either of the following shall be disregarded: (i)
general political, economic, business, industry or financial market conditions;
and (ii) the taking of any action specifically required by this Agreement.

         "MAV" shall have the meaning set forth in the first paragraph to this
Agreement.

         "Mexican Governmental Authorization" shall mean any Governmental
Authorization issued, granted, given or otherwise made available by or under the
authority of any Mexican Governmental Body or pursuant to any Mexican Legal
Requirement.

         "Mexican Governmental Body" shall mean any:

            (a) Mexican federal, state, county, city, town, village, district or
other jurisdiction of any nature;

            (b) Mexican federal, state, local, municipal, or other government;

            (c) Mexican governmental authority of any nature (including any
governmental agency, branch, department, official or entity, centralized or
decentralized, commission, government owned or controlled entities and any court
or other tribunal);

            (d) multi-national organization or body of which Mexico is a party;
or

            (e) body exercising, or entitled to exercise, any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or
power of any nature in Mexico.

         "Mexican Legal Requirement" shall mean any administrative order,
constitution, law, decree, ordinance, regulation or statute enacted or
promulgated by any Mexican Governmental Body.

         "Mexico" shall mean the United Mexican States.

         "Minor Disruption" shall have the meaning set forth in Section 8.2(c).

         "Net Assets/Liabilities" shall mean, with respect to the Cinemex
Companies, as of the close of business on the Effective Date (unless another
date is specified in this Agreement or the Cinemex Stock Purchase Agreement or
the Hoyts Stock Purchase Agreement), (a) the sum of (i) current assets, (ii)
long-term employee receivables and (iii) long-term creditable value added taxes,
minus (b) all Cinemex Indebtedness and other current and deferred liabilities
(including

                                    Exh. A-7
<PAGE>
without limitation the amount of advance sales and any amounts payable in
respect of expenses to be paid by Cinemex in accordance with Section 11.1 of the
Cinemex Stock Purchase Agreement unless such expenses are satisfied prior to the
date as of which Net Assets/Liabilities is being determined) and (ii) $922,000
pesos, as shall be finally determined in accordance with Section 2.6 of the
Cinemex Stock Purchase Agreement. Net Assets/Liabilities may be a positive or
negative number and shall be in pesos. For this purpose, there shall be taken
into account $13'500,000 pesos in respect of liability for deferred income taxes
and no amount in respect of short-term or long-term deferred income for advances
by the Coca Cola Company. In determining Net Assets/Liabilities, (i) any funds
advanced by Investors or their affiliates (whether as loans, capital or similar
contributions, amounts in respect of future capital increases or otherwise)
shall be disregarded, (ii) the amount of the ESOP Payment shall, unless
satisfied from current assets, prior to the date as of which Net
Assets/Liabilities is being determined, be treated as a current liability and
(iii) the receivable from certain of the Cinemex's shareholders (in the amount
of $922,000 pesos as of May 31, 2002) shall be disregarded.

         "Net Assets/Liabilities Statement" shall mean the "Net
Assets/Liabilities Statement" delivered by the buyers under the Cinemex Stock
Purchase Agreement pursuant to Section 2.6(a) of that agreement.

         "Order" shall mean any award, decision, injunction, judgment,
settlement, order, ruling, subpoena or verdict entered, issued, made, or
rendered by any court, administrative agency or other Governmental Body or by
any arbitrator.

         "Ordinary Course of Business" - an action taken by a Person will be
deemed to have been taken in the "Ordinary Course of Business" only if:

            (a) such action is consistent with the past practices of such Person
and is taken in the ordinary course of the normal day-to-day operations of such
Person;

            (b) such action is not required to be authorized by the board of
directors of such Person (or by any Person or group of Persons exercising
similar authority); and

            (c) such action is similar in nature and magnitude to actions
customarily taken, without any authorization by the board of directors (or by
any Person or group of Persons exercising similar authority), in the ordinary
course of the normal day-to-day operations of other Persons that are in the same
line of business, of comparable size in terms of revenue, and similarly
closely-held in terms of stock ownership, as such Person.

         "Organizational Documents" shall mean (a) the articles or certificate
of incorporation, the by-laws or code of regulations, shareholder resolutions
and transitory clauses of a corporation; (b) the partnership agreement and any
statement of partnership of a general partnership; (c) the limited partnership
agreement and the certificate of limited partnership of a limited partnership;
(d) the operating or limited liability company agreement and the certificate of
formation of a limited liability company; (e) any charter, joint venture
agreement or similar document adopted or filed in connection with the creation,
formation or organization of a Person; and (f) any amendment to any of the
foregoing.

                                    Exh. A-8
<PAGE>
         "Overlap Period" means any taxable period beginning on or before and
ending after the Effective Date.

         "Partly-Owned Person" shall mean, with respect to any Person, any
corporation or other Person (other than a Subsidiary of the first Person) of
which securities or other interests are held by such Person or one or more of
its Subsidiaries.

         "Percentage" shall mean with respect to each Shareholder, the
percentage set forth opposite such Shareholder's name under the caption
"Percentage" in Schedule A to this Agreement.

         "Person" shall mean any individual, corporation (including any
non-profit corporation), general or limited partnership, limited liability
company, joint venture, estate, trust, association, organization, labor union,
or other entity or Governmental Body.

         "pesos" or "$" shall mean Mexican pesos, legal tender of Mexico (except
where otherwise specifically indicated to be United States dollars).

         "Plans" shall have the meaning set forth in Section 3.13(a) of Schedule
B to this Agreement.

         "Post-Closing Adjustment Notice Date" shall have the meaning set forth
in Section 2.6.

         "Post-Closing Representative" shall have the meaning set forth in
Section 2.6.

         "Post-Closing Tax Period" means (i) any taxable period beginning after
the Effective Date and (ii) the portion of any Overlap Period beginning
immediately after the Effective Date and ending on the close of business of the
last day of such Overlap Period.

         "Pre-Closing Tax Period" means (i) any taxable period ending on or
before the close of business of the Effective Date and (ii) the portion of any
Overlap Period beginning on the first day of such Overlap Period and ending on
the close of business of the Effective Date.

         "Pre-Closing Taxes" shall mean the Taxes attributable to any
Pre-Closing Tax Period.

         "Proceeding" shall mean any action, arbitration, audit, hearing,
investigation, litigation or suit (whether civil, criminal, commercial, labor,
tax, administrative, investigative or informal) commenced, brought, conducted or
heard by or before, or otherwise involving, any Governmental Body, arbitrator or
other tribunal.

         "Projected Cash Flow" shall have the meaning set forth in Section
8.2(c).

         "Protest Notice" shall have the meaning set forth in Section 2.4(b).

         "Reallocated Matter" shall have the meaning set forth in Section 8.14.

         "Recapitalization" shall have the meaning set forth in the Recitals to
this Agreement.

                                    Exh. A-9
<PAGE>
         "Recent Capital Expenditures" shall mean the aggregate amount of
capital expenditures made by the Cinemex Companies subsequent to April 1, 2002
and through and including the Effective Date in the projects identified on Annex
3.9 to Schedule B to this Agreement solely to the extent that the cumulative
total amount expended on such projects by the Cinemex Companies exceeds
$74'500,000.00 pesos, as shall be determined in accordance with Section 2.6.

         "Refund Threshold" shall mean, at any time, 0.5% of Equity Value,
reduced by amounts of refunds of Pre-Closing Taxes previously received by any
Cinemex Company and retained by it pursuant to the application of clause (ii) of
Section 8.9(a).

         "Related Person" shall mean, with respect to a particular individual:

            (a) each other member of such individual's Family;

            (b) any Person that is directly or indirectly controlled by such
individual or one or more members of such individual's Family;

            (c) any Person in which such individual or members of such
individual's Family hold (individually or in the aggregate) a Material Interest;
and

            (d) any Person with respect to which such individual or one or more
members of such individual's Family serves as a director, officer, partner,
executor or trustee (or in a similar capacity).

With respect to a specified Person other than an individual:

            (a) any Person that directly or indirectly controls, is directly or
indirectly controlled by, or is directly or indirectly under common control with
such specified Person;

            (b) any Person that holds a Material Interest in such specified
Person;

            (c) each Person that serves as a director, officer, partner,
executor or trustee of such specified Person (or in a similar capacity);

            (d) any Person in which such specified Person holds a Material
Interest;

            (e) any Person with respect to which such specified Person serves as
a general partner or a trustee (or in a similar capacity); and

            (f) any Related Person of any individual described in clause (b) or
(c).

            For purposes of this definition "Material Interest" shall mean
direct or indirect beneficial ownership of voting securities or other voting
interests representing at least 5% of the outstanding voting power of a Person
or equity securities or other equity interests representing at least 5% of the
outstanding shares or equity interests in a Person.

                                   Exh. A-10
<PAGE>
                  For purposes of this definition "control" shall mean
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

         "Release" shall mean any spilling, leaking, emitting, discharging,
depositing, escaping, leaching, dumping or other releasing into the Environment,
whether intentional or unintentional.

         "Representative" shall mean, with respect to a particular Person, any
director, officer, employee, agent, consultant, advisor or other representative
of such Person, including legal counsel, accountants and financial advisors.

         "Required Shareholders" shall have the meaning set forth in Section
2.4.

         "Santa Fe Event" shall have the meaning set forth in Section 8.2(d)(i).

         "SAS" shall have the meaning set forth in the Recitals to this
Agreement.

         "Selected Counsel" shall mean Chevez, Ruiz, Zamarripa y Cia, S.C. or,
if that firm is unavailable, a law firm of comparable reputation and stature
selected by Investors and the Shareholders (acting in the manner provided in
Section 8.14).

         "Series P Preferred Stock" shall mean Cinemex's registered, preferred,
Series "P" non par value shares.

         "Series PRD Preferred Stock" shall mean Cinemex's registered,
preferred, with right to special dividend, redeemable, callable, Series "PRD"
non-par value shares.

         "Series PRD Shares" shall mean the shares of Series PRD Preferred Stock
owned by Davila and Fastlicht, collectively.

         "Shareholders" shall mean Davila and Fastlicht.

         "Shareholder Indemnified Persons" shall have the meaning set forth in
Section 8.3.

         "Shareholder Releases" shall have the meaning set forth in Section
2.3(a)(i).

         "SPA Shareholders" shall mean each of the shareholders of Cinemex who
are party to the Cinemex Stock Purchase Agreement.

         "SRL" shall have the meaning set forth in the Recitals to this
Agreement.

         "Subsidiary" shall mean, with respect to any Person (the "Owner"), any
corporation or other Person of which securities or other interests having the
power to elect a majority of that corporation's or other Person's board of
directors or similar governing body, or otherwise having the power to direct the
business and policies of that corporation or other Person (other than securities
or other interests having such power only upon the happening of a contingency
that has not occurred) are held by the Owner or one or more of its Subsidiaries.

                                   Exh. A-11
<PAGE>
         "Tax" shall mean any tax or contribution (including any income,
transfer, capital gains, value-added, sales, property, gift, estate, excise,
employment, severance, stamp, occupation, premium, windfall profits, capital
stock, franchise, withholding, social security, housing fund, savings retirement
funds, profit sharing, unemployment, disability, use, registration, alternative
minimum or add-on minimum, estimated or other tax of any kind whatsoever), levy,
assessment, tariff, duty (including any customs duty), rights (including
utilities) deficiency or other fee, and any related charge or amount (including
any fine, penalty, interest or addition to tax), imposed, assessed or collected
by or under the authority of any Governmental Body or payable pursuant to any
tax-sharing agreement or any other Contract relating to the sharing or payment
of or indemnification for or against payment of any such tax, levy, assessment,
tariff, duty, deficiency or fee.

         "Tax Contest" shall have the meaning set forth in Section 8.9(d)(i).

         "Tax Return" shall mean any return (including any information return),
report (including by authorized external accountant), statement, schedule,
notice, form or other document or information filed with or submitted to, or
required to be filed with or submitted to, any Governmental Body in connection
with the determination, assessment, collection or payment of any Tax or in
connection with the administration, implementation or enforcement of or
compliance with any Legal Requirement relating to any Tax, including any
amendment thereof.

         "Threatened" - a claim, Proceeding, dispute, action or other matter
will be deemed to have been "Threatened" if any demand or statement has been
made in writing or any notice has been given in writing that would lead a
prudent Person to conclude that such a claim, Proceeding, dispute, action or
other matter is reasonably likely to be asserted, commenced, taken or otherwise
pursued in the future.

         "Transfer Tax" shall mean any sale, use, transfer, excise or similar
Tax imposed on any transfer of stock that is consummated as part of the
Contemplated Transactions. Transfer Tax shall not include any income or gross
receipts Tax imposed on any Shareholder, whether directly or through a
withholding mechanism.

         "United States" shall mean the United States of America, including the
commonwealths, territories and possessions thereof.

         "USAC" shall have the meaning set forth in the first paragraph of this
Agreement.

         "USLLC" shall have the meaning set forth in the first paragraph of this
Agreement.

                                   Exh. A-12
<PAGE>
                                   SCHEDULE B

                    REPRESENTATIONS AND WARRANTIES OF CINEMEX

3.       REPRESENTATIONS AND WARRANTIES OF CINEMEX.

         Cinemex represents and warrants to Investors:

         3.1 ORGANIZATION. Annex 3.1 to this Schedule B sets forth a complete
and accurate list of the Cinemex Companies (including the identity of each
stockholder or other equity holder and the number of shares of capital stock
held by each). Each Cinemex Company is a corporation duly organized and validly
existing under the laws of Mexico, with full corporate power and authority to
conduct its business as it is now being conducted, to own or use the properties
and assets that it purports to own or use and to perform all of its obligations
under the Applicable Contracts. Cinemex holds interests in each Partly-Owned
Person as set forth in Annex 3.1 to this Schedule B.

         3.2 AUTHORITY; NO CONFLICT.

             (a) The execution, delivery and performance by Cinemex of this
Agreement, the Cinemex Stock Purchase Agreement, the Hoyts Stock Purchase
Agreement and each of the Ancillary Agreements to which Cinemex is a party and
the consummation and performance by Cinemex of the Contemplated Transactions
have been duly authorized by all necessary action on the part of Cinemex. This
Agreement, the Cinemex Stock Purchase Agreement, the Hoyts Stock Purchase
Agreement and each of the Ancillary Agreements to which Cinemex is a party
constitute the legal, valid and binding obligations of Cinemex, enforceable
against Cinemex in accordance with their terms. Cinemex has the absolute and
unrestricted right, power and authority to execute and deliver this Agreement,
the Cinemex Stock Purchase Agreement, the Hoyts Stock Purchase Agreement and
each of the Ancillary Agreements to which Cinemex is a party and to perform its
obligations hereunder and thereunder.

             (b) Except as set forth in Annex 3.2 to this Schedule B, neither
the execution and delivery of this Agreement, the Cinemex Stock Purchase
Agreement, the Hoyts Stock Purchase Agreement or any of the Ancillary Agreements
to which Cinemex is a party, nor the consummation or performance of any of the
Contemplated Transactions will, directly or indirectly (with or without notice
or lapse of time):

                  (i) contravene, conflict with, or result in a violation of (1)
         any provision of the Organizational Documents of the Cinemex Companies,
         or (2) any resolution adopted by the board of directors (or similar
         governing body) or the stockholders of any Cinemex Company;

                  (ii) contravene, conflict with, or result in a violation of
         any Mexican Legal Requirement or any Order to which any Cinemex
         Company, or any of the assets owned or used under legal title by any
         Cinemex Company, may be subject;

                  (iii) contravene, conflict with, or result in a violation of
         any of the terms or requirements of, or give any Mexican Governmental
         Body the right to revoke,

                                    Sch. B-1
<PAGE>
         withdraw, suspend, cancel, terminate or modify, any Mexican
         Governmental Authorization that is held by any Cinemex Company or that
         otherwise relates to the business of, or any of the assets owned or
         used by, any Cinemex Company;

                  (iv) cause any Cinemex Company to become subject to, or to
         become liable for the payment of, any Mexican Tax;

                  (v) cause any of the assets owned by any Cinemex Company to be
         reassessed or revalued by any taxing authority or other Governmental
         Body;

                  (vi) contravene, conflict with or result in a violation or
         breach of any provision of, or give any Person the right to declare a
         default or exercise any remedy under, or to accelerate the maturity or
         performance of, or to cancel, terminate or modify, any Applicable
         Contract listed on Annex 3.17(a) to this Schedule B; or

                  (vii) result in the imposition or creation of any Encumbrance
         upon or with respect to any of the assets owned or used under legal
         title by any Cinemex Company.

         Except as set forth in Annex 3.2 to this Schedule B, no Cinemex Company
is or will be required to give any notice to or obtain any Consent from any
Person in connection with the execution and delivery of this Agreement or the
consummation or performance of the Contemplated Transactions.

         3.3 CAPITALIZATION AS OF IMMEDIATELY PRIOR TO THE RECAPITALIZATION. As
of immediately prior to the Recapitalization, the authorized capital stock of
Cinemex consisted of 4,381,498 shares of Common Stock, of which 3,801,449 shares
of Common Stock were issued and outstanding. Cinemex's stock registry book
reflects that, as of immediately prior to the Recapitalization, each Person
named on Annex 3.3 to this Schedule B was the holder of the shares of Common
Stock set forth opposite such Person's name on Annex 3.3 to this Schedule B (in
the amounts indicated on Annex 3.3 to this Schedule B). All of the shares of
each Cinemex Company issued and outstanding as of immediately prior to the
Recapitalization were duly authorized and validly issued and were fully paid and
nonassessable.

         3.4 RECAPITALIZATION.

             (a) Each step of the Recapitalization (i) was effected by Cinemex
on June 7, 2002, pursuant to the General Shareholders Meeting, (ii) was duly
authorized by all necessary action on the part of Cinemex and its shareholders,
(iii) did not contravene, conflict with, or result in a violation of (1) any
provision of Cinemex's Organizational Documents, or (2) any resolution adopted
by Cinemex's board of directors or its shareholders and (iv) did not contravene,
conflict with, or result in a violation of any Mexican Legal Requirement or any
Order to which any Cinemex Company, was subject. A true and complete copy of
Cinemex's bylaws as amended in the Recapitalization is attached to Annex 3.4 to
this Schedule B.

             (b) The General Shareholders Meeting was duly called as instructed
by Cinemex's board of directors and complied with all provisions of Cinemex's
Organizational

                                    Sch. B-2
<PAGE>
Documents and all Mexican Legal Requirements. A true and correct copy of the
minutes of the General Shareholders Meeting is attached to Annex 3.4 to this
Schedule B.

         3.5 CURRENT CAPITALIZATION.

         After giving effect to the Recapitalization and at all times thereafter
through the Effective Time:

             (a) The authorized capital stock of Cinemex consists of 209,773
shares of Common Stock, 3,140,347 shares of Series P Preferred Stock, and
426,121 shares of Series PRD Preferred Stock, all of which are issued and
outstanding. Annex 3.5(a) to this Schedule B contains an accurate and complete
list of all of the holders of the Common Stock, the Series P Preferred Stock and
the Series PRD Preferred Stock (including the number (and type) of shares held
by each such holder). Cinemex's stock registry book reflects that each Person
named on Annex 3.5(a) to this Schedule B is the holder of the shares of Common
Stock, Series P Preferred Stock or Series PRD Preferred Stock, as the case may
be, set forth opposite such Person's name on Annex 3.5(a) to this Schedule B (in
the amounts indicated on Annex 3.5(a) to this Schedule B), and no Encumbrances
on such shares of capital stock are recorded on such stock registry book. All of
the shares of the Cinemex Companies have been duly authorized and validly issued
and are fully paid and nonassessable.

             (b) Cinemex's stock registry book does not reflect that there are
any Contracts relating to the issuance, sale or transfer of any equity
securities of any Cinemex Company or the repurchase, redemption or other
acquisition of any equity securities of any Cinemex Company. There are no
Contracts to which any Cinemex Company is a party relating to the issuance, sale
or transfer of any equity securities of any Cinemex Company or the repurchase,
redemption or other acquisition of any equity securities of any Cinemex Company.
Cinemex's stock registry book does not reflect any options, warrants,
convertible securities or rights that are or may become exercisable or
exchangeable for, convertible into, or that otherwise give the holder any right
to acquire shares of capital stock of any Cinemex Company or to receive payments
based in whole or in part upon the value of the capital stock of any Cinemex
Company. There are no options, warrants, convertible securities or rights to
which any Cinemex Company is a party that are or may become exercisable or
exchangeable for, convertible into, or that otherwise give the holder any right
to acquire shares of capital stock of any Cinemex Company or to receive payments
based in whole or in part upon the value of the capital stock of any Cinemex
Company. None of the equity securities of Cinemex were issued in violation of
any Mexican Legal Requirement. Except as set forth in Annex 3.5(b) to this
Schedule B, no Cinemex Company owns, or has any Contract to acquire, any equity
securities of any Person (other than any Subsidiary of Cinemex) or any direct or
indirect equity or ownership interest in any other business.

         3.6 FINANCIAL STATEMENTS. Cinemex has delivered to Investors: (a)
audited consolidated balance sheets of the Cinemex Companies as of December 31,
2001 (the "Balance Sheet") and the related audited consolidated statements of
income, retained earnings and cash flow for the fiscal year then ended, together
with the notes thereto and the report thereon by Ruiz Urquiza y Cia, S.C.,
independent certified public accountants, (b) audited consolidated balance
sheets of the Cinemex Companies as of December 31 in each of the years 1997
through 2000 and

                                    Sch. B-3
<PAGE>
the related audited consolidated statements of income, retained earnings and
cash flow for each of the fiscal years then ended, together with the notes
thereto and the report thereon by Ruiz Urquiza y Cia, S.C., independent
certified public accountants, and (c) the unaudited consolidated balance sheet
and statement of income of the Cinemex Companies as at March 31, 2002 (the
"Interim Balance Sheet"). Such financial statements and notes fairly present the
financial condition and the results of operations and, where provided, cash
flows of the Cinemex Companies as at the respective dates of and for the periods
referred to in such financial statements, all in accordance with GAAP, subject,
in the case of interim financial statements, to normal recurring year-end
adjustments (the effect of which would not, individually or in the aggregate,
reasonably expected to have a Material Adverse Effect and to the absence of
footnotes; the financial statements referred to in this Section 5.6 reflect the
consistent application of such accounting principles throughout the periods
involved, except as disclosed in the notes to such financial statements. No
financial statements of any Person other than the Cinemex Companies are required
by GAAP to be included in the consolidated financial statements of Cinemex.
Attached to Annex 3.6 to Schedule B are the Cinemex Companies' consolidated
financial statements as of May 31, 2002.

         3.7 BOOKS AND RECORDS. Except as set forth in Annex 3.7 to this
Schedule B, the minute books, stock registry books, capital variations books and
other corporate records of the Cinemex Companies, all of which have been made
available to Investors are complete and correct in all material respects. Except
as set forth on Annex 3.7 to this Schedule B, the minute books of the Cinemex
Companies contain accurate and complete records of all meetings held of, and
corporate action taken by, the stockholders, the boards of directors (or similar
governing bodies) and committees of the boards of directors (or similar
governing bodies) of the Cinemex Companies, and no meeting of any such
stockholders, board of directors (or similar governing body) or committees has
been held for which minutes have not been prepared and are not contained in such
minute books. At the Effective Time, all of those books and records will be in
the possession of the Cinemex Companies or its Mexican counsel.

         3.8 TITLE TO PROPERTIES; ENCUMBRANCES. Annex 3.8 to this Schedule B
contains a complete and accurate list of all real estate property, leaseholds or
other similar interests owned by any Cinemex Company. Cinemex has made available
to Investors copies of the deeds and other instruments by which the Cinemex
Companies acquired such real estate property and other interests. The Cinemex
Companies own (with good and marketable title in the case of real estate
property, subject only to the matters permitted by the following sentence) all
the properties and assets (whether real estate property, personal property or
mixed and whether tangible or intangible) that they purport to own. Except as
set forth in Annex 3.8 to this Schedule B, all material properties and assets
owned by Cinemex are free and clear of all Encumbrances and are not, in the case
of real estate property, subject to any rights of way, building use
restrictions, exceptions, variances, reservations or limitations of any nature
except, with respect to all such material properties and assets, (a) mortgages,
guaranty trusts or security interests, with respect to which no default (or
event that, with notice or lapse of time or both, would constitute a default)
exists, (b) liens for current Taxes not yet due, (c) Encumbrances or minor
imperfections of title, if any, none of which is substantial in amount,
materially detracts from the value or materially impairs the use of the property
subject thereto, or materially impairs the operations of any Cinemex Company,
and (d) with respect to real estate property, zoning laws and other land use
restrictions that do not impair the present or anticipated use of the property
subject thereto. All

                                    Sch. B-4
<PAGE>
buildings, plants and structures owned by the Cinemex Companies lie wholly
within the boundaries of the real estate property owned or leased by the Cinemex
Companies and do not encroach upon the property of, or, except as set forth on
Annex 3.8 to this Schedule B, or as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, otherwise conflict
with the property rights of any other Person.

         3.9 CONDITION AND SUFFICIENCY OF ASSETS, RECENT CAPITAL EXPENDITURES.

             (a) To Cinemex's Knowledge, except as set forth in Annex 3.9 to
this Schedule B, the buildings, plants, structures and equipment of the Cinemex
Companies are structurally sound, are in good operating condition and repair and
are adequate for the uses to which they are being put, and none of such
buildings, plants, structures or equipment is in need of maintenance or repairs
other than maintenance and repairs consistent in nature and cost with the
maintenance and repairs made by the Cinemex Companies in the Ordinary Course of
Business during the 12-month period preceding the Effective Date.

             (b) Except as set forth on Annex 3.9 to this Schedule B, as of May
31, 2002 the Cinemex Companies have made no capital expenditures subsequent to
April 1, 2002 on the projects identified on Annex 3.9 to this Schedule B which,
when aggregated with the cumulative total amount expended on such projects by
the Cinemex Companies, causes the total amount expended on such projects to
exceed $74'500,000.00 pesos.

         3.10 NO UNDISCLOSED LIABILITIES. Except as set forth on Annex 3.10 to
this Schedule B, the Cinemex Companies have no liabilities or obligations of any
nature that would be required to be reflected or disclosed on the Balance Sheet
or in the notes thereto under GAAP, except for (a) liabilities or obligations
reflected or reserved against in the Balance Sheet or in the notes thereto or
the Interim Balance Sheet and (b) current liabilities incurred in the Ordinary
Course of Business since the respective dates thereof.

         3.11 TAXES.

             (a) The Cinemex Companies have filed or caused to be filed on a
timely basis all material Tax Returns that are or were required to be filed by
or with respect to any of them, either separately or as a member of a group of
corporations, pursuant to applicable Mexican Legal Requirements. Cinemex has
delivered or made available to Investors copies of all such Tax Returns filed
since 1998. The Cinemex Companies have paid, or made provision for the payment
of, all Taxes that have or may have become due pursuant to those Tax Returns or
otherwise, or pursuant to any assessment received by any Cinemex Company, except
such Taxes, if any, as are listed in Annex 3.11 to this Schedule B and are being
contested in good faith and as to which adequate reserves (determined in
accordance with GAAP) have been provided in the Balance Sheet and the Interim
Balance Sheet.

             (b) All deficiencies proposed as a result of audits of such Tax
Returns have been paid, reserved against, settled or are being contested in good
faith by appropriate proceedings. No Cinemex Company has been informed of any
pending audit relating to any Cinemex Company or any Tax Return of any Cinemex
Company. Except as described in Annex 3.11 to this Schedule B, no Cinemex
Company has given or been requested to give waivers or

                                    Sch. B-5
<PAGE>
extensions (or is or would be subject to a waiver or extension given by any
other Person) of any statute of limitations which remain in effect relating to
the payment of Taxes of any Cinemex Company or for which any Cinemex Company may
be liable.

             (c) The charges, accruals, and reserves with respect to all
material Taxes on the books of the Cinemex Companies as a whole are adequate
(determined in accordance with GAAP) and fairly approximate the Cinemex
Companies liability for Taxes accrued as of the date hereof. To the Knowledge of
Cinemex, there exists no written (or, within the past 12-months, any other)
proposed tax assessment against any Cinemex Company except as disclosed in the
Balance Sheet or in Annex 3.11 to this Schedule B. All Taxes that any Cinemex
Company is or was required by Mexican Legal Requirements to withhold or collect
have been duly withheld or collected and, to the extent required, have been paid
to the proper Governmental Body or other Person.

             (d) All Tax Returns filed by (or that include on a consolidated
basis) any Cinemex Company, as amended, are true, correct and complete in all
material respects. There is no tax sharing agreement that will require any
payment by any Cinemex Company (other than to, or on behalf of, another Cinemex
Company) after the Effective Date.

             (e) Except as set forth on Annex 3.11 to this Schedule B, no
Cinemex Company is currently the beneficiary of any extension of time within
which to file any material Tax Return. Except as set forth in Annex 3.11 to the
Knowledge of Cinemex to this Schedule B, no written (or, within the last
12-months, any other) claim has ever been made to any Cinemex Company by any
authority in a jurisdiction where any Cinemex Company does not file Tax Returns
that it is or may be subject to taxation by that jurisdiction in any material
respect.

         3.12 NO MATERIAL ADVERSE EFFECT. Since the date of the Balance Sheet,
there has not been any Material Adverse Effect.

         3.13 EMPLOYEE BENEFITS.

             (a) Except as provided by law or as set forth in Annex 3.13 to this
Schedule B hereto, none of the Cinemex Companies is a party to or bound by (i)
any Contracts with any of the members of the Board of Directors of any Cinemex
Company; or (ii) any bonus, deferred compensation, severance pay, profit
sharing, pension, retirement, stock purchase, stock option, insurance (including
life, retirement, medical, dental or other insurance), or other material plans,
fringe benefit or any other employee benefit plan, whether formal or informal,
relating to any Cinemex Company, except for the payment of bonuses, deferred
compensation, severance amounts or fringe benefits to individual employees in
the Ordinary Course of Business that are determined or made on an individual
basis and are not generally available to (and which do not create any obligation
to) other employees or groups of employees of any Cinemex Company (collectively,
the "Plans"). With respect to each Plan, true, correct and complete copies of
each material document related to such Plan (including without limitation,
agreement, trust, insurance contract, arrangement, and each amendment thereto)
have been made available or have been delivered to Investors.

                                    Sch. B-6
<PAGE>
             (b) Each Cinemex Company has performed and complied in all material
respects with all of their obligations under and with respect to the Plans,
subject to such exceptions as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect and each of the Plans
has, at all times, in form, operation and administration complied in all
material respects with its terms and all other applicable Mexican Legal
Requirements.

         3.14 COMPLIANCE WITH MEXICAN LEGAL REQUIREMENTS; MEXICAN GOVERNMENTAL
AUTHORIZATIONS.

             (a) Except as set forth in Annex 3.14 to this Schedule B or as
would not, individually or in the aggregate, be reasonably expected to have a
Material Adverse Effect:

                  (i) each Cinemex Company is, and at all times since January 1,
         2000 has been, in compliance with each Mexican Legal Requirement that
         is or was applicable to it or to the conduct or operation of its
         business or the ownership, possession, or use of any of its assets;

                  (ii) no event has occurred or circumstance exists that (with
         or without notice or lapse of time) (A) may constitute or result in a
         violation by any Cinemex Company of, or a failure on the part of any
         Cinemex Company to comply with, any Mexican Legal Requirement, or (B)
         may give rise to any obligation on the part of any Cinemex Company to
         undertake, or to bear all or any portion of the cost of, any remedial
         action of any nature required under any Mexican Legal Requirement; and

                  (iii) no Cinemex Company has received, at any time since
         January 1, 2000, any notice or other written communication from any
         Mexican Governmental Body or any other Person regarding (A) any actual,
         alleged, possible or potential violation of, or failure to comply with,
         any Mexican Legal Requirement, or (B) any actual, alleged, possible or
         potential obligation on the part of any Cinemex Company to undertake,
         or to bear all or any portion of the cost of, any remedial action of
         any nature.

             (b) Each Cinemex Company holds all Mexican Governmental
Authorizations required to be held by such Cinemex Company (and such Mexican
Governmental Authorizations are valid and in full force and effect) except where
the failure to hold such Mexican Governmental Authorizations would not,
individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect. Except as set forth in Annex 3.14 to this Schedule B or as would
not, individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect:

                  (i) each Cinemex Company is, and at all times since January 1,
         2000 has been, in full compliance with all of the terms and
         requirements of each Mexican Governmental Authorization held by such
         Cinemex Company;

                  (ii) no Cinemex Company has received, at any time since
         January 1, 2000, any notice or other written communication from any
         Mexican Governmental Body or any other Person regarding (A) any actual,
         alleged, possible or potential violation of or failure to comply with
         any term or requirement of any Mexican Governmental

                                    Sch. B-7
<PAGE>
         Authorization held by such Cinemex Company, or (B) any actual,
         proposed, possible or potential revocation, withdrawal, suspension,
         cancellation, termination of, or modification to any Mexican
         Governmental Authorization held by such Cinemex Company;

                  (iii) all applications required to have been filed for the
         renewal of the Mexican Governmental Authorizations held by any Cinemex
         Company listed on Annex 3.14 to this Schedule B have been duly filed on
         a timely basis with the appropriate Mexican Governmental Bodies, and
         all other filings required to have been made with respect to such
         Mexican Governmental Authorizations have been duly made on a timely
         basis with the appropriate Mexican Governmental Bodies; and

                  (iv) the Cinemex Companies collectively hold all Mexican
         Governmental Authorizations necessary to permit them to lawfully
         conduct and operate their businesses in the manner they currently
         conduct and operate such businesses and to permit them to own and use
         their assets in the manner in which they currently own and use such
         assets.

             (c) Except as set forth on Annex 3.14 to this Schedule B, the
Cinemex Companies collectively hold all Mexican Governmental Authorizations the
failure to hold of which (i) could reasonably be expected to lead to the
temporary or permanent closure of any motion picture theater, or the principal
concession operation of any motion picture theater, owned or operated by any
Cinemex Company or (ii) could reasonably be expected to render unlawful the
operation of any motion picture theater, or the principal concession operation
of any motion picture theater, owned or operated by any Cinemex Company.

         3.15 LEGAL PROCEEDINGS; ORDERS.

             (a) Except as set forth in Annex 3.15 to this Schedule B, there are
no pending Proceedings:

                  (i) that have been commenced by or against any Cinemex Company
         or that would otherwise, individually or in the aggregate, reasonably
         be expected to have Material Adverse Effect; or

                  (ii) that challenge, or that would, individually or in the
         aggregate, reasonably be expected to have the effect of preventing,
         delaying, making illegal, or otherwise interfering with, any of the
         Contemplated Transactions.

         To the Knowledge of Cinemex, no such Proceedings have been Threatened.
Cinemex has made available to Investors copies of all pleadings, correspondence
and other documents relating to each Proceeding listed in Annex 3.15 to this
Schedule B.

             (b) Except as set forth in Annex 3.15 to this Schedule B:

                  (i) there is no Order to which any of the Cinemex Companies,
         or any of the assets owned or used under legal title by any Cinemex
         Company, is subject; and

                                    Sch. B-8
<PAGE>
                  (ii) to the Knowledge of Cinemex, no officer, director, agent
         or key employee of any Cinemex Company is subject to any Order that
         prohibits such officer, director, agent or key employee from engaging
         in or continuing any conduct, activity or practice material to the
         business of any Cinemex Company.

             (c) Except as set forth in Annex 3.15 to this Schedule B:

                  (i) each Cinemex Company is, and at all times since January 1,
         2000 has been, in full compliance with all of the terms and
         requirements of each Order to which it, or any of the assets owned,
         leased, or used under legal title by it, is or has been subject,
         subject to such exceptions which would not, individually or in the
         aggregate, reasonably be expected to have a Material Adverse Effect;
         and

                  (ii) no Cinemex Company has received, at any time since
         January 1, 2000, any notice or other communication (oral or written)
         from any Mexican Governmental Body or any other Person regarding any
         actual, alleged, possible or potential violation of, or failure to
         comply with, any term or requirement of any Order to which any Cinemex
         Company, or any of the assets owned or used under legal title by any
         Cinemex Company, is or has been subject, which would, individually or
         in the aggregate, reasonably be expected to have a Material Adverse
         Effect.

         3.16 ABSENCE OF CERTAIN CHANGES AND EVENTS. Except as set forth in
Annex 3.16 to this Schedule B, since the date of the Balance Sheet, the Cinemex
Companies have conducted their businesses only in the Ordinary Course of
Business and there has not been, other than as part of the Recapitalization,
any:

             (a) change in any Cinemex Company's authorized or issued capital
stock; grant of any stock option or right to purchase shares of capital stock of
any Cinemex Company; issuance of any security convertible into such capital
stock; grant of any registration rights; purchase, redemption, retirement, or
other acquisition by any Cinemex Company of any shares of any such capital
stock; or declaration or payment of any dividend or other distribution or
payment in respect of shares of capital stock;

             (b) amendment to the Organizational Documents of any Cinemex
Company;

             (c) payment or increase by any Cinemex Company of any bonuses,
salaries, or other compensation to any stockholder, director, officer (except
for payment at the rates in effect on the date of the Balance Sheet, or except
in the Ordinary Course of Business) employee, or entry into any employment,
severance or similar Contract with any director, officer or employee;

             (d) adoption of, or increase in the payments to or benefits under,
any Plan;

             (e) damage to or destruction or loss of any asset or property of
any Cinemex Company, whether or not covered by insurance, which would,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect;

                                    Sch. B-9
<PAGE>
             (f) entry into, termination of, or receipt of notice of termination
of (i) any license, distributorship, dealer, sales representative, joint
venture, credit, lease, or similar agreement, or (ii) any Contract or
transaction involving a total remaining commitment by or to any Cinemex Company
of at least $2'500,000 pesos (excluding film Contracts, screen advertising
Contracts having a duration of less than one year, internet provider Contracts
and, solely in the case of the entering into of Contracts, the other Contracts
disclosed on Annex 3.17(a) to Schedule B);

             (g) sale (other than sales of inventory in the Ordinary Course of
Business and sales or other dispositions of equipment deemed surplus, obsolete
or no longer necessary to the business of any Cinemex Company), lease or other
disposition of any material asset or property of any Cinemex Company or
mortgage, pledge or imposition of any Encumbrance on any material asset or
property of any Cinemex Company, including the sale, lease or other disposition
of any material intellectual property;

             (h) cancellation or waiver of any claims or rights with, to
Cinemex's Knowledge, a value to any Cinemex Company in excess of $1'000,000
pesos;

             (i) change in the accounting methods used by any Cinemex Company;
or

             (j) agreement, whether oral or written, by any Cinemex Company to
do any of the foregoing.

         3.17 CONTRACTS; NO DEFAULTS.

             (a) Annex 3.17(a) to this Schedule B contains a complete and
accurate list, and Cinemex has, in the case of written Contracts, made available
to Investors true and complete copies, of:

                  (i) each Applicable Contract that involves performance of
         services or delivery of goods or materials by one or more of the
         Cinemex Companies of an amount or value in excess of $1'000,000 pesos
         (excluding Contracts that are terminable by a Cinemex Company without
         penalty or cost to the Cinemex Companies in excess of $1'000,000
         pesos);

                  (ii) each Applicable Contract that was not entered into in the
         Ordinary Course of Business and that involves expenditures or other
         liabilities and/or receipts of one or more of the Cinemex Companies in
         excess of $1'000,000 pesos (excluding Contracts that are terminable by
         a Cinemex Company without penalty or cost to the Cinemex Companies in
         excess of $1'000,000 pesos);

                  (iii) each loan agreement, promissory note, bond, letter of
         credit or other Applicable Contract evidencing Cinemex Indebtedness or
         any guarantee or similar obligation of any Cinemex Company with respect
         to indebtedness for borrowed money or any other similar payment
         obligation of any Person (other than any Cinemex Company);

                  (iv) each lease, rental or occupancy agreement, license,
         installment and conditional sale agreement, and other Applicable
         Contract affecting the ownership of,

                                   Sch. B-10
<PAGE>
         leasing of, title to, use of, or any leasehold or other similar
         interest in, any real or personal property (except any personal
         property lease having payments of less than $1'000,000 pesos and with a
         term of less than one (1) year);

                  (v) each material licensing agreement or other material
         Applicable Contract with respect to patents, trademarks, copyrights, or
         other intellectual property, including agreements with current or
         former employees, consultants, or contractors regarding the
         appropriation or the non-disclosure of any intellectual property other
         than (x) any licensing agreements or other Applicable Contracts entered
         into by any Cinemex Company in the Ordinary Course of Business which
         primarily relate to the exhibition by such Cinemex Company of a
         particular motion picture or (y) "shrink-wrap" or other software
         licenses generally available from commercial venders or retailers which
         do not require ongoing royalty payments;

                  (vi) each collective bargaining agreement and other Applicable
         Contract to or with any labor union or other employee representative of
         a group of employees;

                  (vii) each joint venture, partnership, and other similar
         Applicable Contract (however named) involving a sharing of profits,
         losses, costs or liabilities by any Cinemex Company with any other
         Person, excluding Contracts entered into in the Ordinary Course of
         Business by a Cinemex Company;

                  (viii) each Applicable Contract containing covenants that in
         any way purport to restrict the business activity of any Cinemex
         Company or any affiliate of any Cinemex Company or limit the freedom of
         any Cinemex Company or any affiliate of any Cinemex Company to engage
         in any line of business or to compete with any Person or in any
         territory;

                  (ix) each Applicable Contract providing for payments to or by
         any Person based on sales, purchases, or profits, other than direct
         payments for goods, excluding Contracts entered into in the Ordinary
         Course of Business by a Cinemex Company;

                  (x) other than those held by Messrs. Davila, Fastlicht and
         Heyman, each power of attorney for (A) acts of ownership, (B) acts of
         management or (C) to subscribe or execute negotiable instruments, in
         each case, that is currently effective and outstanding and which will
         not be terminated prior to the Effective Time;

                  (xi) each Applicable Contract under which a Cinemex Company is
         committed for individual capital expenditures in excess of $2'500,000
         pesos or aggregate capital expenditures in excess of $10'000,000 pesos;

                  (xii) each employment, consulting or other similar Applicable
         Contract with employees or consultants of any Cinemex Company remaining
         in effect after the Effective Date and which are not terminable at the
         will of the applicable Cinemex Company without cost or liability to any
         Cinemex Company; and

                                   Sch. B-11
<PAGE>
                  (xiii) each amendment, supplement, and modification (whether
         oral or written) in respect of any of the foregoing.

             (b) Except as set forth in Annex 3.17(b) to this Schedule B to the
Knowledge of Cinemex no officer, director, agent, key employee, consultant or
contractor of any Cinemex Company is bound by any Contract that purports to
limit the ability of such officer, director, agent, key employee, consultant, or
contractor to (i) engage in or continue any conduct, activity, or practice
material to the business of any Cinemex Company, or (ii) assign to any Cinemex
Company or to any other Person any rights to any invention, improvement or
discovery.

             (c) Except as set forth in Annex 3.17(c) to this Schedule B, each
Contract required to be identified in Annex 3.17(a) to this Schedule B is in
full force and effect and is valid and enforceable against the Cinemex Company
party thereto in accordance with its terms.

             (d) Except as set forth in Annex 3.17(d) to this Schedule B:

                  (i) each Cinemex Company is, and at all times since January 1,
         2002 has been, in substantial compliance with all material terms and
         requirements of each material Contract identified on Annex 3.17(a) to
         this Schedule B;

                  (ii) to the Knowledge of Cinemex, each other Person that has
         any material obligation or liability under any material Contract
         identified or required to be identified on Annex 3.17(a) to this
         Schedule B under is, and at all times since January 1, 2002 has been,
         in substantial compliance with all material terms and requirements of
         such Contract;

                  (iii) to the Knowledge of Cinemex, no event has occurred or
         circumstance exists that (with or without notice or lapse of time)
         would reasonably be expected to contravene, conflict with, or result in
         a violation or breach of, or give (x) any Person other than a Cinemex
         Company or (y) to the Knowledge of Cinemex, any Cinemex Company the
         right to declare a default or exercise any remedy under, or to
         accelerate the maturity or performance of, or to cancel, terminate, or
         modify, any material Contract identified on Annex 3.17(a) to this
         Schedule B; and

                  (iv) no Cinemex Company has given to or received from any
         other Person, any notice or other written communication regarding any
         actual, alleged, possible, or potential violation or breach of, or
         default under, any material Contract on Annex 3.17(a) to this Schedule
         B; and

                  (v) there are no pending renegotiations of, current attempts
         to renegotiate, or outstanding rights to renegotiate any material terms
         and conditions or material amounts paid or payable to any Cinemex
         Company under any of the material Contracts identified on Annex 3.17(a)
         to this Schedule B with any Person and no such Person has made written
         demand for such renegotiation.

         3.18 INSURANCE. Annex 3.18 to this Schedule B contains a complete list
of all of the Cinemex Companies' policies of insurance in effect as of the date
hereof. All of such policies are in full force and effect, and there is no
default (beyond any applicable grace or cure period)

                                   Sch. B-12
<PAGE>
with respect to any provision contained in any such policy, nor has there been
any failure to give any notice or present any claim under any liability policy
in a timely fashion or in the manner or detail required by such liability policy
such that the Cinemex Companies' rights to insurance recovery under such
policies would be prejudiced thereby in any material respect. Cinemex has
delivered or made available copies of all such policies to Investors. Except as
set forth in Annex 3.18 to this Schedule B, there are no overdue and unpaid
premiums or claims, and no retroactive or retrospective premium adjustments with
respect to such policies, and no notice of cancellation or nonrenewal has been
received by any Cinemex Company with respect to, or disallowance of any claim
under, any such policy.

         3.19 ENVIRONMENTAL MATTERS.

             (a) Except as set forth in Annex 3.19 to this Schedule B:

                  (i) Each Cinemex Company is in material compliance with all
         Environmental Laws;

                  (ii) no Cinemex Company has made, caused or contributed to any
         Release of Hazardous Materials in violation of any Environmental Law;

                  (iii) (A) none of the operations or business of any Cinemex
         Company is subject to any judicial or administrative proceeding
         alleging the violation of any Environmental Law, (B) none of the
         operations or business of any Cinemex Company is subject to any
         compliance agreement or settlement agreement resulting from an alleged
         violation of any Environmental Law, and (C) none of the operations or
         business of any Cinemex Company is the subject of any federal, state or
         local investigation or Threatened investigation regarding a violation
         or alleged violation of any Environmental Law;

                  (iv) to the Knowledge of Cinemex, (A) none of the business of
         the Cinemex Companies involves any Hazardous Activity, and (B) none of
         the Cinemex Companies has knowledge of any Hazardous Materials in, on,
         over or under any of the Facilities other than Hazardous Materials
         maintained in small quantities in appropriate containers for use in the
         ordinary course of the maintenance and operation of the Facilities and
         in material compliance with applicable Environmental Laws;

                  (v) to the Knowledge of Cinemex, there is no condition arising
         from the operations of the Cinemex Companies that could reasonably be
         expected to result in claims against any of the Cinemex Companies, for
         Cleanup costs, damages to natural resources, or for personal injury
         claims under applicable Environmental Laws or as required by any
         Governmental Body with jurisdiction over such matters; and

                  (vi) each of the Cinemex Companies possesses all material
         Mexican Governmental Authorizations required under any Environmental
         Law to conduct its business, and such Mexican Governmental
         Authorizations are in full force and effect.

         3.20 EMPLOYEES.

                                   Sch. B-13
<PAGE>
             (a) Annex 3.20 to this Schedule B contains a list of the name,
position, seniority, salary and labor benefits of all employees of the Cinemex
Companies (including employees of companies rendering employment and personnel
services to the Cinemex Companies) with an annual salary in excess of $600,000
pesos as of May 31, 2002 and, should the case may be, of any contracts or
arrangements with them.

             (b) Except as disclosed on Annex 3.20 to this Schedule B, none of
the Cinemex Companies have made any arrangements with any employees of the
Cinemex Companies which would have the effect of depriving any of the Cinemex
Companies of the continued service of any such employees following the Effective
Date.

         3.21 LABOR RELATIONS; COMPLIANCE.

             (a) Except as set forth in Annex 3.21 to this Schedule B, no
Cinemex Company is a party to any collective bargaining or other labor Contract
and, as of the date of execution of this Agreement, none of the Cinemex
Companies is negotiating with the unions mentioned in Annex 3.21 to this
Schedule B or any other unions.

             (b) Since January 1, 2000, and except as set forth in Annex 3.21 to
this Schedule B, there has not been, there is not presently pending or existing,
and there is not Threatened (i) any strike, slowdown, picketing, work stoppage,
or interruptions of work against any of the Cinemex Companies; (ii) any
Proceeding against any Cinemex Company relating to the alleged violation of any
Mexican Legal Requirement pertaining to labor relations or employment matters,
organizational activity, or other labor or employment dispute or controversy
against any of the Cinemex Companies or their currently owned, leased or
operated Facilities or (iii) any application for certification of a collective
bargaining agent. Except as set forth in Annex 3.21 to this Schedule B, there is
no lockout of any employees by any Cinemex Company, and no such action is
contemplated by any Cinemex Company.

             (c) Each Cinemex Company has substantially complied with all
Mexican Legal Requirements relating to employees and employment. Except as
disclosed on Annex 3.21 to this Schedule B, no Cinemex Company is liable for the
payment of any compensation, Damages, Taxes, fines, penalties or other amounts,
however designated, for failure to comply with any of the foregoing Mexican
Legal Requirements.

         3.22 INTELLECTUAL PROPERTY. Each Cinemex Company owns or possesses
rights to use all franchises, licenses, copyrights, copyright applications,
patents, patent rights or licenses, patent applications, trademarks, trademark
rights, trade names, trade name rights, copyrights and rights with respect to
the foregoing which are required to conduct its business as currently conducted.
Except as set forth in Annex 3.22 to this Schedule B, to the Knowledge of
Cinemex, no event has occurred which permits, or after notice or lapse of time
or both would permit, the revocation or termination of any such rights, and no
Cinemex Company is liable to any Person for infringement under applicable
Mexican Legal Requirements with respect to any such rights as a result of its
business operations.

         3.23 CERTAIN PAYMENTS. Since January 1, 2000, no Cinemex Company or
director or officer of any Cinemex Company, or to the Knowledge of Cinemex, any
employee, agent or

                                   Sch. B-14
<PAGE>
other Person acting for or on behalf of any Cinemex Company, has directly or
indirectly made any payments, gifts or rebates (whether in cash, property or
services) to any Person (i) in violation of Mexican Legal Requirements or (ii)
which, if Cinemex were subject to the United States Foreign Corrupt Practices
Act of 1977, as amended, would have violated the same, except in either case for
payments, gifts or rebates (whether in cash, property or services) which, if
discontinued subsequent to the Effective Time, could not, individually or in the
aggregate, be reasonably expected to have a Material Adverse Effect.

         3.24 RELATIONSHIPS WITH RELATED PERSONS. Except as set forth on Annex
3.24 to this Schedule B, no director or officer of any Cinemex Company, or to
the Knowledge of Cinemex, any Related Person of such director or officer has, or
is an owner of, or since January 1, 2000 has owned (of record or as a beneficial
owner) an equity interest or any other financial or profit interest in, a Person
that has, (i) had business dealings or a material financial interest in any
transaction with any Cinemex Company other than business dealings or
transactions conducted in the Ordinary Course of Business with the Cinemex
Companies at substantially prevailing market prices and on substantially
prevailing market terms and conditions, or (ii) engaged in the business of (a)
developing, owning or operating motion picture theaters or exhibiting motion
pictures in Mexico, or (b) within the vicinity of any motion picture theater
owned or operated by any Cinemex Company selling food, snacks or concession
services (in either case, a "Competing Business"), except for the direct or
indirect ownership of less than one percent of the outstanding capital stock of
any Competing Business (or Person that directly or indirectly owns such interest
in a Competing Business) that is publicly traded on any recognized exchange or
in the over-the-counter market.

         3.25 BROKERS OR FINDERS. No Cinemex Company and, to the Knowledge of
Cinemex, none of their respective agents has incurred any obligation or
liability, contingent or otherwise, for brokerage or finders' fees or agents'
commissions or other similar payment in connection with this Agreement.

         3.26 NO UNITED STATES PRESENCE. None of the real estate property owned
by any Cinemex Company or which any Cinemex Company leases or has any other
interest therein, and none of the buildings, equipment, inventories and other
tangible assets of any Cinemex Company are located in the United States within
the meaning of Rule 802.51 of the HSR Act. No Cinemex Company is organized under
the laws of the United States or any state or other jurisdiction within the
United States. The Cinemex Companies have not made aggregate sales in or into
the United States of over $50 million United States Dollars in the most recently
completed fiscal year within the meaning of Rule 802.51 of the HSR Act.

                                   Sch. B-15
<PAGE>
                                   SCHEDULE C

                      COVENANTS PRIOR TO THE EFFECTIVE DATE

         6.1. ACCESS AND INVESTIGATION. Between the date of this Agreement and
the Effective Date, Cinemex will, and will cause each Cinemex Company and their
respective Representatives to use their Best Efforts to, (a) afford Investors
and their prospective lenders and Representatives (collectively, "Advisors")
reasonable access, during normal business hours and upon reasonable advance
notice, to each Cinemex Company's properties, contracts, books and records and
other documents and data, (b) furnish Investors and their Advisors with copies
of all such contracts, books and records, and other existing documents and data
as Investors and/or their Advisors may reasonably request, (c) furnish Investors
and their Advisors with such additional financial, operating and other data and
information concerning Cinemex as Investors and/or their Advisors may reasonably
request and as may be reasonably available to Cinemex and (d) make available to
Investors and their Advisors, upon reasonable advance notice and during normal
business hours, the officers of each Cinemex Company as Investors and/or their
Advisors may reasonably request; provided, that such availability shall not
interfere with the normal operations of such Cinemex Company. Any information
heretofore or hereafter obtained from any party hereto shall be subject to and
shall be held in accordance with the terms of the Confidentiality Agreement.

         6.2. OPERATION OF BUSINESS. Between the date of this Agreement and the
Effective Date, unless otherwise consented to by Investors in writing, Cinemex
will, and will cause each Cinemex Company to:

              (a) conduct the business of the Cinemex Companies only in the
Ordinary Course of Business; and

              (b) use its Best Efforts to preserve intact in all material
respects the current business organization of the Cinemex Companies, keep
available the services of the current officers, employees and agents of the
Cinemex Companies, and maintain in all material respects the relations and
goodwill with suppliers, customers, landlords, creditors, employees, agents and
others having business relationships with the Cinemex Companies.

         6.3. NEGATIVE COVENANTS. Except as otherwise expressly permitted by
this Agreement, between the date of this Agreement and the Effective Date,
Cinemex will not, and Cinemex will cause each Cinemex Company not to, without
the prior consent of Investors:

              (a) take any affirmative action, or fail to take any reasonable
action as a result of which any of the changes or events listed in Section 3.16
of Schedule B to this Agreement is reasonably likely to occur;

              (b) make any capital expenditure commitment other than capital
expenditure commitments not in excess of $2'500,000 pesos for individual items
and not in excess of $10'000,000 pesos in the aggregate;

                                    Sch. C-1
<PAGE>
              (c) pay, discharge or satisfy any Cinemex Indebtedness other than
the payment, discharge or satisfaction of such Cinemex Indebtedness upon
maturity or when otherwise due;

              (d) take or omit to take any action with respect to Taxes if such
action or omission would have the effect of increasing the Tax liability of the
Cinemex Companies for a Tax Period after the Effective Date;

              (e) settle any litigation that provides for liability to any
Cinemex Company after the Effective Time or that imposes any restrictions on any
Cinemex Company after the Effective Time; or

              (f) enter into any agreement to do any of the foregoing.

         6.4. REQUIRED APPROVALS.

              (a) As promptly as practicable after the date of this Agreement,
the parties hereto will make all filings required by Legal Requirements to be
made by them in order to consummate the Contemplated Transactions. Between the
date of this Agreement and the Effective Date, the parties hereto will (a)
reasonably cooperate with one another with respect to all filings that any party
hereto elects to make or is required by Legal Requirements to make in connection
with the Contemplated Transactions, and (b) reasonably cooperate with one
another in obtaining all Consents identified in Annex 3.2 to Schedule B of this
Agreement, Schedule 4.2 and Schedule 5.2.

              (b) On May 29, 2002, Cinemex filed a notification of concentration
in connection with the Contemplated Transactions with the Mexican Federal
Competition Commission (Comision Federal de Competencia), and the parties shall
notify the other parties of any correspondence or contact with such agency,
shall comply as promptly as practicable with all requests for further documents
and information made by such agency, shall furnish to the other parties all such
information in its possession as may be reasonably necessary for the completion
of the reports or notifications to be filed and shall otherwise fully cooperate
in dealing with such agency.

                                    Sch. C-2
<PAGE>
<TABLE>
<S>                                                        <C>            <C>
Carlos Jinich Ripstein                                     6,194          0.1629%
Michael Perlo Kurian                                       3,601          0.0947%
Jonathan Perlo Kurian                                      3,600          0.0947%
Alan Benjamin Jaet Kurian                                  9,271          0.2439%
Jaime Paul Jaet Kurian                                     9,270          0.2439%
Ricardo Jinich Gancz                                       2,363          0.0622%
UEMCO X, L.L.C.                                            2,280          0.0600%
Steven J. Rosenfield  (Decedant's Trust)                   1,617          0.0425%
Brenda Denise Jaet Kurian                                  6,667          0.1754%
Julie Rosenfield (Julie Friedman)  (Trust)                 1,616          0.0425%
Marci Rosenfield (Marci Lefkovits) (Trust)                 1,616          0.0425%
Stephanie Nea Kurian Maltz de Fastlicht                      398          0.0105%
Damian Piza Velazquez                                         35          0.0009%
</TABLE>

                                    Sch. C-3

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