Document:

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                                   EXHIBIT "A"

                             MEMORANDUM OF AGREEMENT
           BETWEEN DREAMWORKS L.L.C. AND UNIVERSAL CITY STUDIOS, INC.

                         FOREIGN THEATRICAL DISTRIBUTION

                                TABLE OF CONTENTS

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1.    Definitions....................................................        1
2.    Distribution...................................................        4
3.    Distribution Controls and Procedures...........................        6
4.    Grant of Rights................................................       17
5.    Collections/Remittance/Accounting..............................       20
6.    Representations and Warranties.................................       30
7.    Indemnity......................................................       31
8.    Copyright......................................................       32
9.    Delivery.......................................................       33
10.   Termination....................................................       33
11.   Miscellaneous..................................................       38
      EXHIBIT "A-1"..................................................       41
      EXHIBIT "A-2"..................................................       42
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                                   EXHIBIT "A"

                             MEMORANDUM OF AGREEMENT
           BETWEEN DREAMWORKS L.L.C. AND UNIVERSAL CITY STUDIOS, INC.

         This agreement ("Exhibit A") is entered into as of June , 1995 by and
between DreamWorks L.L.C., a Delaware Limited Liability Company ("DW"), and
Universal City Studios, Inc. (herein, "Universal") relating to foreign
theatrical motion picture distribution.

         In consideration of the covenants and conditions herein contained, and
for other good and valuable consideration, the parties hereto agree as follows:

1.       DEFINITIONS:

         a.       "Pictures" (individually "Picture") means all live-action and
                  animated motion pictures (and combinations thereof) initially
                  distributed by DW in commercial motion picture theaters before
                  paying public audiences in the United States during the
                  "Term", as and to the extent DW has or acquires "Theatrical
                  Distribution Rights" in the "Territory". Universal
                  acknowledges that third parties may distribute a Picture in
                  such portion of the Territory (which may be the entire
                  Territory) where and when DW does not have Theatrical
                  Distribution Rights in such portion. The term "Picture" or
                  "Pictures" does not include any motion picture co-financed by
                  DW and MCA pursuant to Exhibit "C" to the Master Agreement.

         b.       "Term" means the period commencing on the date hereof and
                  continuing through December 31, 2001; provided that the Term
                  may be extended for an additional four-year period at DW's and
                  Universal's mutual agreement confirmed by both parties in
                  writing no later than 90 days prior to December 31, 2001.
                  Notwithstanding the foregoing and subject to the terms of this
                  Exhibit "A", Universal shall have the exclusive Theatrical
                  Distribution Rights for each Picture for the initial period
                  (as DW determines in its sole discretion) of theatrical
                  distribution of such Picture in each country of the Territory
                  in which such distribution commences within twelve months
                  following such Picture's initial general U.S. theatrical
                  release, provided that DW shall be entitled to re-release any
                  Picture theatrically but only after the Term without utilizing
                  Universal as the distributor. Notwithstanding the foregoing,
                  the Term is subject to earlier termination in accordance with
                  Paragraph 10 below.

         c.       "Territory" means the entire world, excluding only:

                  i.       the United States and Canada and their territories
                           and possessions (including specifically, without
                           limitation, Guam, Midway Islands, U.S. Virgin
                           Islands, Canal Zone, Saipan, Marshall Islands and
                           Puerto Rico), the Bahamas and Bermuda; and
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                  ii.      South Korea, North Korea and the remainder of Asia
                           (excluding Japan), but only if and to the extent that
                           DW assigns theatrical distribution rights in such
                           countries to or through Lee Entertainment L.L.C. or
                           any of its affiliated or related parties, or any of
                           their successors or designees (collectively, the
                           "Korean Shareholder") pursuant to an agreement
                           between DW and the Korean Shareholder (the "Investor
                           Agreement") (it being understood that the countries
                           so excluded may increase during the Term as such
                           Korean Shareholder distributes motion pictures
                           theatrically in more countries in Asia other than
                           Japan). DW will provide Universal with reasonable
                           notice, if and to the extent that DW receives same,
                           of such additional countries, although DW's failure
                           to do so shall not be deemed to be a breach of this
                           Exhibit "A"; provided, however, if and to the extent
                           that Universal and/or UIP has previously entered into
                           arrangements pre-approved by DW in such additional
                           countries, DW shall hold harmless Universal from any
                           third party claims and actual direct out-of-pocket
                           losses (i.e., excluding internal costs, profits
                           and/or other consequential damages) resulting from
                           DW's failure to provide timely notice. In any event,
                           any such change in countries shall be prospective
                           only (i.e, it will only affect Pictures which have
                           not then been distributed by UIP). Notwithstanding
                           the foregoing, it is agreed that the Korean
                           Shareholder may not distribute the Pictures through
                           another U.S. "major" motion picture distributor
                           (currently Twentieth Century Fox, Warner Bros., Sony,
                           and Disney), although it may co-venture with such
                           distributor(s) for distribution. Notwithstanding the
                           foregoing, if the Korean Shareholder's distribution
                           rights have terminated with respect to a particular
                           Picture(s) or in a specified country(ies), and/or if
                           the Investor Agreement terminates, then to the extent
                           the Korean Shareholder no longer has distribution
                           rights, the Territory shall then include any such
                           excluded country(ies) and/or Universal shall then
                           have Theatrical Distribution Rights with respect to
                           the particular Picture(s), as the case may be.

         d.       "Theatrical Distribution Rights" means only the exclusive
                  limited right and obligation, subject to the terms of this
                  Exhibit "A", to distribute the Pictures for the purpose of
                  exhibition in commercial motion picture theaters before paying
                  public audiences. Theatrical Distribution Rights do not
                  include, (i) any form of distribution or exploitation of the
                  Pictures outside the Territory, (ii) distribution or
                  exhibition of the Pictures in any other medium including,
                  without limitation, on free and pay television, video disc,
                  video tape, computer or other video or in-home distribution
                  now known or hereafter devised, radio, legitimate stage,
                  non-theatrical exhibition (including, without limitation,
                  airlines, ships, schools, hospitals, clubs, societies,
                  military and industrial installations, etc.) and/or (iii) any

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                  other form of distribution, exhibition or other method of
                  exploitation of the Pictures, now known or hereafter devised.

         e.       "Subdistributor" means any person or entity other than "UIP"
                  which distributes the Pictures hereunder within the Territory,
                  and which is not owned or controlled, in whole or in part, by
                  UIP.

         f.       "UIP" means United International Pictures, B.V., a company
                  incorporated in the Netherlands, and any entity which it owns
                  or controls in whole or in part.

         g.       Notwithstanding anything to the contrary in this Exhibit "A",
                  the parties agree that: (i) Universal shall not be required
                  hereunder to violate any contract existing as of the date
                  hereof or any law, provided Universal shall give DW written
                  notice promptly following (1) DW's submission of a proposed
                  marketing plan(s) or other request for "Services" (as defined
                  below), but in no event later than 30 days following such
                  submission or request, specifying in reasonable detail any
                  requirement hereunder which would cause Universal to violate
                  any such existing contract (and including a copy of the
                  relevant provision[s] of such contract) and/or any law or (2)
                  Universal's knowledge of any such violation or prospective
                  violation; (ii) if Universal receives a claim (which Universal
                  in its good faith business judgment believes poses a risk of a
                  result materially adverse to Universal) that any Services
                  requested by DW violate any third party rights and, as a
                  result thereof, Universal desires to discontinue rendering
                  such Services, Universal will be permitted to do so until such
                  time, if ever, as such claim has been resolved in Universal's
                  favor or in any other manner which does not prevent Universal
                  from rendering such Services and provided that, prior to
                  discontinuing such Services, Universal shall give DW written
                  notice specifying in reasonable detail the specifics of such
                  claim (as well as a copy of any relevant pleadings, demand
                  letters, correspondence, etc.) and shall nonetheless continue
                  rendering such Services for a reasonable period of time so as
                  to enable DW to arrange for a commercially acceptable
                  alternative; (iii) Universal shall not be required to cause
                  UIP to deliver greater services, information, data or reports
                  (collectively, "Services") than the comparable level of
                  Services which UIP then renders to Universal or to any of the
                  "UIP Owners" (as defined below) (provided, however, that
                  Universal will use its best efforts to cause UIP to comply
                  with any additional requirements or Services requested by DW,
                  it being acknowledged that Universal cannot guarantee that UIP
                  will agree to do so); and (iv) there will not be a material
                  reduction (on an overall basis) in the Services provided
                  hereunder, from that provided by UIP to Universal or any of
                  the UIP Owners in June 1995 although the parties acknowledge
                  that (1) any such material reduction shall not be deemed to be
                  a breach of this Exhibit "A", and (2) each of the UIP Owners
                  may themselves render or cause to be rendered specific
                  Services theretofore rendered by UIP and, in such event, to
                  the extent Universal renders or causes to be rendered

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                  such Services to its own pictures generally, it shall provide
                  such Services to DW at no additional cost.

2.       DISTRIBUTION:

         a.       Universal is granted Theatrical Distribution Rights in the
                  Territory to the Pictures during the Term, provided that such
                  distribution shall be conducted by UIP in the ordinary course
                  of UIP's business. In distributing Pictures pursuant to this
                  Exhibit "A", Universal shall be subject to, and shall cause
                  UIP to follow, the direction and control of DW consistent with
                  this Exhibit "A". All decisions by DW under this Exhibit "A"
                  may be made from time-to-time on a Picture-by-Picture and
                  territory-by-territory basis, unless other-wise specifically
                  provided herein. DW shall have the right to designate the
                  period of distribution of any Picture and may require
                  Universal (which shall in turn require UIP) to withhold or
                  withdraw any Picture(s) from distribution overall or on a
                  territory-by-territory basis in the Territory, as DW in its
                  sole discretion instructs, in which event DW agrees to hold
                  Universal and UIP harmless from any third party claims
                  directly resulting from any withholding or withdrawal which
                  shortens the period of distribution previously designated by
                  DW. Neither Universal nor UIP shall have any rights in or to
                  the Pictures other than as distributor and as set forth in
                  this Exhibit "A". Universal shall, or shall cause UIP to,
                  advance on a timely basis all DW-approved "Distribution
                  Expenses" (as defined in Paragraph 5.d. below) in connection
                  with the Pictures and shall be entitled to recoup same as
                  herein provided.

         b.       Notwithstanding the foregoing, to the extent Universal is
                  precluded from distributing a Picture theatrically during the
                  Term as a result of DW's exercise of its rights in this
                  paragraph to withhold or withdraw a Picture from distribution
                  in any country (or overall) in the Territory, DW shall not
                  permit any third party to distribute such Picture in such
                  country (or overall) during the Term or for one year after the
                  Term without affording Universal the right to do so pursuant
                  to the terms hereof.

         c.       Unless expressly prohibited by applicable law, Universal shall
                  not have the right to refuse to distribute any Picture(s) for
                  theatrical distribution, except for a refusal to distribute
                  based on Universal's or UIP's good faith business judgment
                  exercised in a manner which does not discriminate against the
                  Pictures as compared to the pictures of the "UIP Owners" (as
                  defined below), provided that Universal will give timely prior
                  notice of its intention not to distribute a Picture(s) in
                  sufficient time to allow DW to distribute, or cause the
                  distribution of, such Picture(s) on or about the dates
                  contemplated for initial theatrical release. If Universal
                  refuses (or is deemed unable due to a force majeure event as
                  provided in Paragraph 10.b.ii.3(b) below) to distribute any
                  Picture(s) for theatrical distribution in any country(ies), DW
                  shall have the right in its sole discretion to withdraw any
                  such Picture(s) from Universal and distribute or cause the
                  distribution of such Picture(s) in such country(ies). In
                  addition, if Universal refuses other than for legal or
                  censorship reasons (or is deemed unable due to a force majeure
                  event as provided in Paragraph 10.b.ii.3(b) below and such
                  event does not affect distributors generally) to distribute
                  any Picture(s) in a portion of the Territory representing ***
                  or more of "Territory Receipts" (as defined in Exhibit "A-2")
                  for all UIP pictures in the preceding year, DW shall have the
                  right in its sole discretion to withdraw any such Picture(s)
                  from Universal and distribute or cause the distribution

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                  of such Picture(s) in the entire Territory or any portion of
                  the Territory, as DW elects. Notwithstanding the foregoing, if
                  Universal refuses other than for legal or censorship reasons
                  (or is deemed unable due to a force majeure event as provided
                  in Paragraph 10.b.ii.3(b) below and such event does not effect
                  distributors generally) to distribute any Picture(s) in Japan,
                  Universal shall nonetheless have the right to distribute any
                  such Picture(s) in the remainder of the Territory; provided,
                  however, that DW may, in its sole discretion, withdraw any
                  such Picture(s) from Universal: (a) in the Far East and
                  distribute or cause distribution of such Picture(s) therein;
                  or (b) in the entire Territory on any portion of the Territory
                  if Universal does not distribute any such Picture(s) in any
                  country(ies) other than Japan representing *** or more of
                  Territory Receipts for all UIP Pictures distributed in the
                  preceding year and distribute or cause distribution of such
                  Picture(s) therein. If DW distributes or causes the
                  distribution of any Picture(s) pursuant to either of the two
                  preceding sentences, DW shall also have the right in its sole
                  discretion to withdraw from Universal, and render fulfillment
                  services or cause fulfillment services to be rendered for, any
                  "Videogram" (as defined in Exhibit "B") embodying such
                  Picture[s]), in the relevant country(ies) or, if DW elects, in
                  the entire Territory, as provided in Paragraph 2.C. of Exhibit
                  "B". Any distribution of Picture(s) and/or Videogram(s) by or
                  caused by DW under this subparagraph 2.c. shall be at DW's
                  risk (except as provided in Paragraph 7 of this Exhibit "A"
                  with respect to loss or destruction of any Pictures or related
                  physical elements in Universal's or UIP's or any of their
                  Subdistributors' or agents' possession or control and in
                  Paragraph 8.D.2 of Exhibit "B" with respect to loss or
                  destruction of any Videograms or related physical elements in
                  Universal's or CIC's or any of their Subdistributors' or
                  agents' possession or control) and without any obligation to
                  Universal, UIP and/or CIC with respect to such distribution
                  (including, without limitation, any obligation to pay any
                  Distribution Fees or Distribution Expenses incurred after DW
                  assumes distribution in such country(ies) under this Exhibit
                  "A" and/or any Service Fees incurred after DW assumes
                  distribution in such country(ies) or Service Expenses under
                  Exhibit "B").

         d.       DW shall not enter into any agreement during the Term with any
                  third party in which DW does not directly or indirectly have a
                  substantial financial interest or which does not directly or
                  indirectly have a substantial financial interest in DW, for
                  the distribution of Pictures during the Term in commercial
                  motion pictures theaters before paying public audiences in the

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                  United States or Canada covering all or substantially all of
                  its Pictures without discussing such matters with Universal,
                  but DW shall have no obligation to enter into an agreement
                  with Universal for such distribution of Pictures in the United
                  States or Canada. DW shall have no obligations under this
                  subparagraph in the event of a termination of this Exhibit "A"
                  per Paragraph 10.

3.       DISTRIBUTION CONTROLS AND PROCEDURES: The parties acknowledge that
         Universal shall cause distribution in the Territory to be handled by
         UIP, whose services shall be supplied to DW by Universal, which hereby
         guarantees and shall be fully responsible for the performance of UIP in
         accordance with and subject to the terms and conditions set forth
         herein. References to UIP therefore shall refer to those services of
         UIP which Universal is supplying hereunder. Universal shall cause the
         Pictures to be distributed by UIP in the same fashion as the pictures
         of Universal, MGM/UA and/or Paramount Pictures or any other partner in
         or owner of UIP (collectively, the "UIP Owners") and UIP shall timely
         submit all recommendations for DW's approval as specified below. DW
         shall have the right to exercise complete and final control in its
         absolute discretion over all aspects of the distribution, marketing and
         advertising for the Pictures in the Territory throughout the Term
         consistent with the provisions of this Exhibit "A". Notwithstanding
         anything to the contrary herein contained, DW shall have the same right
         of direct contact with UIP as any of the UIP Owners in its agreement
         with UIP. In this regard, Universal represents and warrants that it has
         and shall retain during the Term identical rights of access to UIP (on
         a "favored nations" basis) available to any other UIP Owner whether by
         virtue of the UIP Agreement or as otherwise established from
         time-to-time during the Term. With respect to the distribution of the
         Pictures in the Territory, Universal shall delegate to DW whatever
         powers and authorities Universal is entitled to under its agreement
         with UIP; provided, however, that if Universal is contractually
         prevented from delegating such powers and authorities under its
         presently existing agreement with UIP, Universal will exercise such
         powers and authorities on DW's behalf and at DW's direction or in
         concert with DW. Without limiting the generality of the foregoing, the
         following specific terms shall apply:

         a.       GENERAL: In accordance with UIP's practices with respect to
                  the UIP Owner's pictures, UIP shall prepare and recommend in
                  full consultation with DW continent-by-continent (broken down
                  territory-by-territory) marketing plans, budgets and
                  distribution plans and other items containing such
                  information, analysis and recommendations as DW may from
                  time-to-time request for DW's approval in sufficient time for
                  DW to review and discuss. UIP shall commence preparation of
                  such plans and other items immediately following receipt of
                  pertinent materials and information provided by DW, and in any
                  event, such plans and items will be delivered to DW no less
                  than *** days prior to the initial theatrical release date in
                  the Territory for each Picture hereunder (with such detail and
                  specifics as possible given the information previously
                  provided by DW, and updated by UIP from time-to-time as more
                  information is made available by DW

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                  to UIP). DW shall timely approve or timely supply reasonable
                  revisions thereto so that UIP can take such actions as may be
                  necessary to distribute Pictures as contemplated hereby in a
                  fashion consistent with DW's approvals. In addition to any
                  specific approvals set forth in this Exhibit "A", DW shall
                  have the same right to approve actions to be taken by UIP in
                  connection with the Pictures as any UIP Owner has with respect
                  to actions to be taken by UIP in connection with such UIP
                  Owner's pictures (provided, DW shall not forfeit any approval
                  rights if it fails to act within a specified period of time
                  due to Universal and/or UIP's failure to timely advise DW in
                  writing of such time period). DW may exercise such approval
                  rights in its absolute discretion with respect to all matters,
                  including, without limitation, the dates and durations of the
                  releases of the Pictures, the dates and terms of initial
                  booking of the Pictures, the decision to create, and the final
                  version of, any altered versions of any Pictures (including,
                  without limitation, colorization of the Pictures), the amount
                  and nature of budgeted Distribution Expenses, distribution
                  patterns, dubbing, theaters, circuits, suppliers, vendors and
                  service providers, laboratories, the use of trailers from the
                  Pictures on other pictures distributed by UIP and the plans
                  for marketing, advertising, publicity and promotion,
                  including, without limitation, coop media plans and
                  advertising, creative campaigns, and the creation and content
                  of all advertising and promotional material. If UIP fails to
                  obtain the release dates, durations and/or exhibitor terms
                  approved by DW for any Picture(s) (unless such exhibitor terms
                  are the same as exhibitor terms for comparable pictures of the
                  UIP Owners), DW shall have the right in its sole discretion to
                  withdraw any such Picture(s) from Universal and distribute or
                  cause the distribution of such Picture(s) in the country(ies)
                  in which UIP fails to obtain such release dates, durations
                  and/or exhibitor terms (or, if UIP so fails in a portion of
                  the Territory representing *** or more of "Territory Receipts"
                  for all UIP pictures in the preceding year and DW elects, in
                  the entire Territory), at DW's risk (except as provided in
                  Paragraph 7 of this Exhibit "A" with respect to loss or
                  destruction of any Pictures or related physical elements in
                  Universal's or UIP's or any of their Subdistributors' or
                  agents' possession or control) and without any obligation to
                  Universal and/or UIP with respect to such distribution
                  (including, without limitation, any obligation to pay any
                  Distribution Fees hereunder). If DW distributes or causes the
                  distribution of any Picture(s) pursuant to the preceding
                  sentence, DW shall also have the right in its sole discretion
                  to withdraw from Universal, and render fulfillment services or
                  cause fulfillment services to be rendered for, any "Videogram"
                  (as defined in Exhibit "B") embodying such Picture[s]), in the
                  relevant country(ies) or, if DW elects, in the entire
                  Territory, as provided in Paragraph 2.C. of Exhibit "B". Any
                  distribution of Picture(s) and/or Videogram(s) by or caused by
                  DW under this subparagraph 3.a. shall be at DW's risk (except
                  as provided in Paragraph 8.C.(ii) of Exhibit "B" with respect
                  to loss or destruction of any Videograms or related physical
                  elements in Universal's

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                  or CIC's or any of their Subdistributors' or agents'
                  possession or control) and without any obligation to
                  Universal, UIP and/or CIC with respect to such distribution
                  (including, without limitation, any obligation to pay any
                  Distribution Fees or Distribution Expenses incurred after DW
                  assumes distribution in such country(ies) under this Exhibit
                  "A" and/or any Service Fees or Service Expenses incurred after
                  DW assumes distribution in such country(ies) under Exhibit
                  "B"). There shall be no exclusivity or other distribution
                  restriction in any exhibition or distribution deal nor any
                  double bills or accompanying short subjects (unless required
                  by law) without DW's specific approval. If a short subject is
                  required by law or custom to accompany any Picture in any
                  portion of the Territory, DW shall have the first opportunity
                  to supply such short subject. The parties acknowledge that
                  Universal, UIP, the other UIP Owners and DW are each engaged
                  in the motion picture business and that nothing in this
                  Exhibit "A" shall be deemed to limit each party's rights to
                  fully, freely and completely engage in all aspects of the
                  motion picture and related businesses.

         b.       SUBDISTRIBUTION: UIP shall have the right to employ
                  Subdistributors, provided that:

                  i.       DW shall have the right of prior approval (not to be
                           unreasonably withheld) of each Subdistributor and the
                           duration and terms of each Subdistributor's
                           agreement. DW hereby approves the list of
                           Subdistributors for the durations and on the terms
                           attached hereto as Exhibit "A-1" and incorporated
                           herein by this reference, and shall not, without
                           cause, withdraw such approval for the durations and
                           on the terms therein indicated.

                  ii.      UIP may only distribute Pictures through a
                           Subdistributor in territories in which UIP does not
                           directly distribute any other motion pictures, which
                           territories shall be limited to the territories
                           specified in Exhibit "A-1" and such other minor
                           territories, consistent therewith, where UIP elects
                           not to directly distribute any motion pictures.

                  iii.     If DW does not approve a Subdistributor selected by
                           UIP, DW shall have the right to engage directly a
                           subdistributor of its choice (a "DW Subdistributor"),
                           in which event DW shall be solely responsible for all
                           activities of and all obligations to the DW
                           Subdistributor and no Distribution Fees shall be
                           payable to Universal and/or UIP with respect to the
                           territory in which such subdistribution occurs.
                           Notwithstanding the foregoing, Universal shall, at
                           DWs request, service DWs agreement(s) with a DW
                           Subdistributor(s)), in which event the reduced
                           Schedule Percentages set forth in Paragraph 5.c.ii
                           shall apply (provided, as set forth in Paragraph
                           5.a., that UIP Gross and SD Gross shall be

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                           aggregated in any event for purposes of calculating
                           the Gross Receipts breakpoints for the Schedule
                           Percentages in subparagraphs 5.b.i.(1)-(3)).

                  iv.      Notwithstanding the foregoing, the parties
                           acknowledge that, subject to DW's reasonable approval
                           and the provisions of Paragraph 1.c.ii., the Pictures
                           may be distributed by UIP through co-venture
                           distribution in some territories within the Territory
                           (e.g., Hong Kong, China), which co-ventures shall not
                           be considered subdistribution. In these instances,
                           reference to "UIP" shall include such co-ventures for
                           all purposes hereunder. Accordingly, all amounts
                           payable or credited to such co-ventures in connection
                           with the Pictures shall be included in deemed "Gross
                           Receipts", and DW shall be accorded audit rights with
                           respect to all such co-ventures.

         c.       SUPPLIERS: With respect to any Picture distributed by UIP
                  hereunder, DW shall have the right (but, except as provided
                  elsewhere, not the obligation) to contract directly with UIP's
                  third party suppliers and/or to "piggyback" on any or all of
                  UIP's arrangements with any third party (including, without
                  limitation, dubbing, manufacturing, advertising, marketing and
                  publicity suppliers/arrangements), except as and to the extent
                  precluded by law, regulation or written agreement between such
                  third party supplier on the one hand, and UIP and/or Universal
                  on the other hand, entered into, and containing a preclusive
                  provision effective, before July, 1996 and disclosed to DW in
                  writing before execution of this Agreement (provided, however,
                  that notwithstanding anything to the contrary in such written
                  agreements, in no event will DW be bound by such agreements
                  after January 1, 1999). In addition, Universal shall disclose
                  to DW relevant excerpts of any such written agreement (except
                  only its agreement with *** for laboratory services) to the
                  extent permissible under such agreement, and DW shall have the
                  right to contest the asserted preclusive contract provision
                  under the dispute resolution provisions of Paragraph 10 of the
                  Master Agreement; provided, however, that Universal shall
                  cause UIP to use its best efforts to cause such third party
                  supplier(s) to contract directly with DW and/or allow DW to
                  "piggyback" on UIP's arrangements with such third party
                  suppliers, as DW elects. UIP shall disclose to DW on an
                  ongoing basis all material information (including, without
                  limitation, advances, volume discounts, laboratory and other
                  vendor rebates and any other economic consideration or
                  financial advantages) regarding deals which could relate to
                  UIP's services hereunder and which are under negotiation
                  and/or concluded with third party suppliers as such
                  information develops, and UIP shall also disclose to DW upon
                  execution of this Exhibit "A" all such information regarding
                  deals concluded with third party suppliers prior to the date
                  of execution of this Exhibit "A". Notwithstanding the
                  foregoing, Universal shall not be required to disclose any
                  information respecting Universal's presently existing
                  laboratory

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                  services agreement with ***. DW may use such information in
                  order to assist DW in deciding whether to "piggyback" on any
                  or all such existing and/or future arrangements with third
                  party suppliers and, in the event DW elects to "piggyback", to
                  determine whether Universal and/or UIP are allocating
                  advances, volume discounts, laboratory and other vendor
                  rebates and any other economic consideration or financial
                  advantages as provided below in this subparagraph 3.c. and in
                  subparagraph 5.e. Notwithstanding the foregoing, DW shall not
                  be entitled to confidential third party information regarding
                  arrangements existing as of the date of execution of this
                  Exhibit "A"; provided, however, that Universal and UIP shall
                  in any event disclose the existence of all such arrangements
                  (including, without limitation, any confidentiality agreements
                  contained therein), and provide to DW as much specificity as
                  possible consistent with such third party confidentiality
                  agreements, and provided further that if Universal and/or UIP
                  refuses to supply any such third party confidential
                  information, the parties will (on DW's request) submit to
                  dispute resolution pursuant to Paragraph 10 of the Master
                  Agreement and the "Judge" (as defined in the Master Agreement)
                  shall impose such reasonable procedures (including, without
                  limitation, redaction and in camera proceedings) as the Judge
                  deems necessary to accord information reasonably necessary for
                  the purposes indicated above while preserving the third
                  party's legal rights to confidentiality. In the event of any
                  "piggyback" arrangement: (i) DW-approved costs with respect
                  thereto shall be advanced by UIP and recouped or repaid as
                  Distribution Expenses; (ii) DW shall have the option to have
                  the Pictures aggregated with other UIP product for purposes of
                  obtaining advances, volume discounts, rebates and any other
                  economic consideration or financial advantages accorded to a
                  group of pictures and in such event, all such advances,
                  discounts, rebates, economic consideration and financial
                  advantages will be allocated to the Pictures according to the
                  terms of the arrangement in question, or if such arrangement
                  does not provide a means of allocation, on a fair and
                  reasonable basis (subject to later reconciliation if and to
                  the extent such allocation was in retrospect unfair or
                  unreasonable to either party); (iii) the terms and conditions
                  of such arrangement with respect to DW shall be no less
                  favorable than the terms and conditions which pertain to the
                  distribution of the UIP Owners' pictures; and (iv) provided
                  such arrangement has been previously timely disclosed to DW in
                  writing, then with respect to rights to Pictures granted
                  Universal hereunder, DW shall be bound by the terms and
                  conditions of such arrangement as if it were a party thereto
                  except to the extent the third party agrees otherwise.
                  Alternatively, DW shall have the right in its sole discretion
                  to itself obtain any or all such services through its own
                  third party arrangements; provided, however, subject to DW's
                  absolute control, DW shall be obligated to utilize UIP's
                  advertising agency or agencies to make any up-front media buys
                  (i.e. long-term, bulk media purchases made by UIP before how
                  such media will be used is determined) during any

                                       10

***Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>
                  period in which all UIP Owners are contractually required to
                  make all of their up-front media buys with respect to
                  advertising in the Territory exclusively through such agency
                  pursuant to an exclusivity arrangement existing as of the date
                  of this Exhibit "A" and on terms no less favorable than those
                  offered to UIP Owners (e.g., DW shall receive the same
                  discounts). If DW enters into its own third party
                  arrangements, DW will not be entitled to "piggyback" on UIP's
                  arrangements for the same services unless the "piggyback"
                  terms previously rejected by DW thereafter materially change.
                  If DW utilizes its own third party arrangements, DW will: (a)
                  coordinate (or instruct such third party suppliers to
                  coordinate) information and performance between each other as
                  required and with Universal and UIP; (b) pay such third party
                  suppliers directly; (c) agree to proceed directly against such
                  third party supplier for such third party supplier's breach;
                  and (d) if UIP incurs substantial actual excess administrative
                  costs as a direct result thereof, consider in good faith
                  contributing towards such excess costs, provided that DW shall
                  not be obligated to do so. Universal will not, and will cause
                  UIP not to, enter into any new obligations or agreements, or
                  extensions of any existing obligations or agreements, which
                  restrict the right of any supplier that is a party to such
                  obligations or agreements to contract directly with DW (e.g.,
                  exclusivity arrangements which prevent such party from
                  contracting with DW). Notwithstanding the foregoing, prior to
                  DW directly entering into any third party arrangement, DW
                  will, in appropriate circumstances, make a good faith effort
                  to give Universal advance notice and consult with Universal,
                  it being agreed that DW's failure to comply with this sentence
                  shall not be deemed a breach of this Exhibit "A". Subject to
                  the terms of the Master Agreement, to the extent either party
                  is provided any confidential information with respect to UIP
                  or DW arrangements with suppliers, vendors, or service
                  providers, such party shall keep such information absolutely
                  confidential.

         d.       OPERATING REQUIREMENTS:

                  i.       DISTRIBUTION OUTSIDE THE TERRITORY: Universal is
                           expressly prohibited from distributing, or
                           authorizing the distribution of, the Pictures
                           anywhere outside the Territory.

                  ii.      DIRECT COMMUNICATIONS AND DEALINGS: DW shall have the
                           right to communicate (regarding anything within the
                           scope of this Exhibit "A") directly with (a) all
                           Universal officers, appropriate management employees
                           and staff engaged in any aspect of distribution of
                           motion pictures by Universal anywhere in the
                           Territory, including officers, management employees
                           and staff stationed at Universal corporate and
                           territorial offices; and (b) to the same extent as
                           the UIP Owners, all UIP officers, appropriate
                           management employees and staff engaged in any aspect
                           of theatrical distribution of motion pictures by UIP,
                           including,

                                       11
<PAGE>
                           without limitation, officers, appropriate management
                           employees and staff stationed at UIP corporate,
                           regional and territorial offices. DW shall receive in
                           a timely fashion, directly from UIP and from all
                           Subdistributors, all distribution information,
                           including, without limitation, release dates,
                           projections and so forth. DW shall also have the
                           right to receive copies of any report insofar as it
                           relates to the Pictures or such other information
                           received by or available to the UIP Owners (other
                           than internal financial information respecting the
                           UIP partnership or relating solely to the respective
                           UIP Owner's Pictures) respecting an audit of any
                           Subdistributor conducted by or on behalf of UIP, the
                           costs of which shall be borne solely by UIP if done
                           in the ordinary course of business by UIP. In
                           addition, Universal shall use its best efforts to
                           have UIP audit the accountings of any Subdistributor
                           upon the request of DW and if done, DW shall (to the
                           extent pre-approved by DW, which pre-approval will
                           not be unreasonably withheld) bear its proportionate
                           share of the costs thereof.

                  iii.     UIP PERSONNEL: Universal shall cause the President
                           and Chief Executive Officer of UIP (subject to
                           reasonable absences for vacation and other business)
                           to personally supervise DW motion picture
                           distribution and be responsible to DW with respect to
                           all matters arising hereunder. In the event that the
                           President and/or Chief Executive Officer of UIP shall
                           be replaced during the Term hereof or there is any
                           other substantial change in the management or
                           operation of UIP, DW shall have a right of full
                           consultation with Universal with respect thereto.

         e.       OPERATING STRUCTURE:

                  i.       MARKETING:

                           (a)      PACKAGING/SHIPPING: UIP shall consolidate
                                    shipment of all DW materials to the
                                    Territories at UIP's London headquarters (or
                                    such other location approved by DW),
                                    provided that DW shall only disapprove any
                                    other location if, in its absolute
                                    discretion, it believes that such location
                                    is not secure, or if it results in a
                                    significant increase in cost to DW, unless
                                    Universal pays such increase in cost. DW and
                                    associated vendors will deliver packaged
                                    material to UIP for shipment. UIP's actual,
                                    direct, third party out-of-pocket shipping
                                    costs shall be billed to DW, provided such
                                    costs are not, in any event, charged at
                                    rates greater than the shipment costs
                                    charged to the UIP Owners for like
                                    materials.

                                       12
<PAGE>
                  (b)   SHIPPING/STORAGE/INSPECTION OF PRINTS: Subject to DW's
                        approval rights, UIP will render all services in
                        connection with the shipping, storage and inspection of
                        the prints required by DW for the Pictures distributed
                        by UIP hereunder (for which services DW shall reimburse
                        Universal and/or UIP as the case may be for their actual
                        direct out-of-pocket costs paid to unaffiliated third
                        parties). DW may elect, in its sole discretion, to
                        discontinue using such services for all of the Pictures;
                        provided, however, that DW shall not have the right to
                        thereafter re-engage UIP to render any such services
                        which DW has previously discontinued hereunder.

                  (c)   FAVORED NATIONS: UIP shall provide DW with UIP and third
                        party goods and services (including, without limitation,
                        publicity and promotional services) substantially
                        equivalent on an overall basis in quantity, level,
                        priority, quality and cost (including discounts,
                        rebates, allocations and charges) as such services are
                        provided to UIP Owners in connection with the
                        distribution of their motion pictures.

            ii.   DISTRIBUTION:

                  (a)   KEY CONTRACTS: DW shall have the right to approve all
                        key contracts for the distribution of the Pictures
                        including, without limitation, all key country and key
                        city contracts, if and to the extent that any of the
                        other UIP Owners have such approval rights as to their
                        pictures.

                  (b)   DISTRIBUTION PLANS: UIP shall timely prepare a
                        territory-by-territory distribution plan for each
                        Picture indicating exhibition dates and theaters in each
                        city (with such detail and specifics as possible given
                        the information previously provided by DW, and updated
                        by UIP from time-to-time as more information is made
                        available by DW to UIP). Each distribution plan shall be
                        prepared in consultation with DW for DW's approvals as
                        set forth under this Exhibit "A". Distribution of each
                        Picture shall be in accordance with the approved plan.
                        Each Picture may only be distributed in each country
                        within the Territory by means of one continuous release
                        in such country, except as otherwise approved by DW. No
                        reissues, re-releases or colorization of the Pictures
                        will be permitted unless specifically approved in
                        writing by DW, and DW shall have the same approval
                        rights with respect to any reissue or re-release as it
                        had with respect to the initial release. All material
                        changes from such plan shall require DW's approval;
                        provided,

                                       13
<PAGE>
                        however, that pending such approval UIP's field
                        personnel may, in good faith and if required due to
                        distribution exigencies, make reasonable non-material
                        changes to such plan (which changes will be submitted to
                        DW for approval as soon as possible thereafter).
                        Notwithstanding anything to the contrary in this
                        Agreement, DW will provide UIP, on a
                        territory-by-territory, Picture-by-Picture basis, a
                        schedule for the release of the Pictures, which schedule
                        UIP may change as reasonably necessary with DW's prior
                        written approval (not to be unreasonably withheld). If
                        DW fails to approve such changes, UIP shall have no
                        liability to DW thereof except to implement such
                        corrections and changes as DW thereafter instructs.

            f.    INFORMATION AND DOCUMENTS: To the extent it exists, and
                  subject to the requirements of law, Universal shall furnish,
                  and shall cause UIP to furnish:

                  i.    INFORMATION:

                        (a)   All "Information" (as defined below) as to the
                              Pictures, to the extent similar Information as to
                              a UIP Owner's pictures is made available by UIP to
                              such UIP Owner;

                        (b)   All Information as to the UIP Owners' pictures, to
                              the extent such Information is made available by
                              UIP to any UIP Owner other than the UIP Owner that
                              produced such picture; and all Information
                              (including, without limitation, Information about
                              the release of other motion pictures in the
                              Territory) that is made generally available to the
                              UIP Owners by UIP;

                        (c)   All Information as to Universal pictures, to the
                              extent similar Information is available to
                              Universal with respect to the Pictures; provided
                              such Information: (1) shall only be furnished upon
                              written request from DW; (2) shall be restricted
                              to Information required by DW for a bona fide
                              business purpose under this Agreement (e.g.,
                              optimal release scheduling, verification of most
                              favorable terms as specified in the Agreement,
                              including terms related to services, pricing,
                              costs, comparable accounts and collection of
                              revenues therefrom, etc.); and (3) shall not be
                              furnished to DW if in Universal's good faith
                              business judgment, such disclosure would
                              constitute a violation of any applicable law,
                              decree, government regulation, or constitute a
                              violation of any third party right;

                                       14
<PAGE>
                        (d)   All Information as to the Pictures that is
                              available to Universal (excluding Information as
                              to the Pictures that is not available to
                              Universal, and not based upon Information as to
                              the Pictures available to Universal, directly or
                              indirectly by virtue of Universal's and/or UIP's
                              services hereunder); and

                        (e)   All other Information as may be required by DW,
                              including, without limitation, MPAA, MPA and other
                              trade association publications and reports (except
                              to the extent distribution to DW is prohibited by
                              such trade association), subject to pertinent
                              confidentiality agreements of which DW is given
                              prior written notice, irrespective of whether such
                              Information is customarily provided by UIP to the
                              UIP Owners and/or any other party; provided,
                              however, that if Universal and/or UIP are required
                              to incur any new additional costs (of which
                              Universal and/or UIP notifies DW in advance) for
                              outside personnel Universal and/or UIP are
                              required to engage solely in order to furnish any
                              such additional Information which is not included
                              within the scope of services to be rendered by
                              Universal and/or UIP under this Exhibit "A",
                              Universal and/or UIP shall not be required to
                              furnish such additional Information unless DW
                              pre-approves such costs and agrees to reimburse
                              Universal and/or UIP, as applicable, for same
                              (subject to appropriate reduction, to be mutually
                              agreed, if and to the extent that such additional
                              Information is supplied [subject to DW's prior
                              approval] to any party other than DW). Any dispute
                              as to whether such additional Information is
                              within the scope of services to be rendered by
                              Universal and/or UIP hereunder will be subject to
                              dispute resolution pursuant to Paragraph 10 of the
                              Master Agreement.

                        (f)   As used herein, "Information" shall mean all
                              tangible (i.e., excluding only staff meetings,
                              phone conversations and similar conversations
                              which are not reduced to written or other tangible
                              form) information, data, reports, agreements and
                              other documents including, without limitation, all
                              outright sales proposals for the outright sales of
                              a Picture, direct access to the theatrical
                              database for each Picture on a
                              territory-by-territory basis, daily box office
                              reports, competitive release dates, advertising
                              expenses, copies of all outside sourced market
                              surveys, updates and analysis, etc., whether
                              distributed on paper, electronically and/or
                              through any other means (e.g., DW shall be put on
                              the distribution lists for such information). The
                              Information shall be provided consistent with the
                              frequency and

                                       15
<PAGE>
                              timeliness with which the Information (or similar
                              material) is created by, or supplied to,
                              Universal, UIP and/or the UIP Owners, or otherwise
                              as DW shall reasonably request; provided, however,
                              that if Universal and/or UIP are required to incur
                              any new additional costs (of which Universal
                              and/or UIP notifies DW in advance) for outside
                              personnel Universal and/or UIP are required to
                              engage solely in order to furnish Information more
                              frequently or quickly (if possible) than the
                              Information (or similar material) is supplied to
                              the UIP Owners and such increased frequency or
                              quickness is not included within the scope of
                              services to be rendered by Universal and/or UIP
                              under this Exhibit "A", Universal and/or UIP shall
                              not be required to furnish such Information with
                              such increased frequency or quickness as requested
                              unless DW pre-approves such costs and agrees to
                              reimburse Universal and/or UIP, as applicable, for
                              same (subject to appropriate reduction, to be
                              mutually agreed, if and to the extent that such
                              increased frequency or quickness is also accorded
                              [subject to DW's approval] to any party other than
                              DW). Any dispute as to whether such increased
                              frequency or quickness is within the scope of
                              services to be rendered by Universal and/or UIP
                              hereunder will be subject to dispute resolution
                              pursuant to Paragraph 10 of the Master Agreement.
                              DW shall, on request, be supplied Information by
                              tape data transmission, without any fee if so
                              supplied to the UIP Owners, or otherwise at
                              Universal and/or UIP's direct actual out-of-pocket
                              cost.

                        (g)   Notwithstanding anything in this section (f) to
                              the contrary, in no instance shall Information
                              include (and Universal and UIP shall not be
                              required to provide) (i) internal financial
                              information of Universal, UIP and/or the UIP
                              Owners, or (ii) Information which is not related
                              to the exploitation and performance of motion
                              pictures or the costs of distribution.

                  ii.   OPERATIONS:

                        (a)   As to the Pictures: Print inventories (features
                              and trailers) together with an analysis of print
                              storage costs by title and quantity, not less than
                              on a quarterly basis.

                        (b)   Print orders for the Territory, for the initial
                              release date and for the date 30 days thereafter.

                        (c)   For the top ten markets only, trailer release
                              dates, on a monthly basis for the period
                              commencing with the first

                                       16
<PAGE>
                              release of the trailer through 30 days after
                              initial theatrical release.

                        (d)   Unless the "Payment Reports" (as defined below)
                              include an itemization of dubbing expenses,
                              dubbing budgets on a territory-by-territory,
                              Picture-by-Picture basis and in local currency
                              where applicable, not less than on a monthly
                              basis.

      4.    GRANT OF RIGHTS:

            a.    DW grants to Universal Theatrical Distribution Rights in the
                  Pictures in the Territory during the Term, which Theatrical
                  Distribution Rights include the right (but only in connection
                  with the exercise of the Theatrical Distribution Rights):

                  i.    To distribute the Pictures through UIP and its
                        Subdistributors, as specified herein, and to exhibit,
                        advertise, publicize and exploit the Pictures pursuant
                        to the terms hereof;

                  ii.   To use the name and likeness of any person who rendered
                        services on the Pictures for advertising and promoting
                        the Pictures, subject to contractual and/or union/guild
                        restrictions on such uses of which Universal is timely
                        notified in writing and with which Universal shall have
                        the affirmative obligation to comply;

                  iii.  Subject to any limitations upon DW's rights timely
                        communicated to Universal or UIP, to publicize,
                        advertise and exploit the Pictures and the titles (as
                        designated by DW) thereof throughout the Territory
                        during the Term and to permit others to do so;

                  iv.   Subject to any limitations upon DW's rights timely
                        communicated to Universal or UIP, to cause trailers of
                        the Pictures and prints thereof to be manufactured,
                        exhibited and distributed; and

                  v.    To order and procure from DW, and subject to the terms
                        hereof directly from any laboratory in any part of the
                        world holding pre-print or other material (which
                        material shall, at DW's election, be held in DW's name)
                        such number of release prints and related materials as
                        DW requires.

                  vi.   Subject to any limitations upon DW's rights timely
                        communicated to Universal or UIP, any contractual and/or
                        union/guild restrictions of which Universal/UIP is
                        notified in writing, and DW's prior written approval in
                        each instance pursuant to its approval rights hereunder,
                        to utilize the different titles of the Pictures
                        designated by DW for each country of distribution, to
                        dub and subtitle the Pictures and trailers and to edit
                        same as may be required by the

                                       17
<PAGE>
                        distribution/exhibition requirements in the particular
                        countries in the Territory; to publish and authorize
                        others to publish synopses of and excerpts from the
                        Pictures and any literary material included in the
                        Pictures upon which they were based for use in
                        newspapers, magazines, press books and other
                        publicity-related periodicals and in television and
                        radio advertising. Without limiting the generality of
                        the foregoing, with respect to subtitling and dubbing,
                        DW shall determine, in its sole discretion, which
                        Pictures, if any, shall be subtitled and/or dubbed and
                        in what languages. DW shall have the right in its
                        absolute discretion to approve any edited version of the
                        Pictures and all language tracks and subtitles.

            b.    Universal and UIP shall maintain security and anti-piracy
                  measures consistent with the highest level of security and
                  anti-piracy measures maintained for the UIP Owners' pictures
                  to prevent unauthorized distribution, copying and the
                  infringement of any of DW's rights. If DW desires security and
                  anti-piracy measures beyond those provided by Universal and
                  UIP per the preceding sentence, it may require Universal and
                  UIP to provide same (or DW may make its own third party
                  arrangements for such services) at DW's sole cost and expense.
                  Each party shall immediately notify the other of any
                  unauthorized copying, distribution, exhibition or other
                  exploitation of the Pictures and of any other infringements or
                  violations of DW's copyrights, trademarks and other rights in
                  the Pictures of which such party has knowledge. DW shall take
                  such actions as it deems appropriate with respect thereto. To
                  the extent appropriate, Universal and/or UIP shall join in any
                  actions and cooperate fully in any litigation or other
                  proceedings to protect the Pictures and DW's rights. If DW
                  elects to proceed alone directly through its own counsel, DW
                  shall bear the costs thereof and DW shall be entitled to
                  retain any recovery. If DW does not elect to proceed as
                  provided in the prior sentence, Universal or UIP shall have
                  the right to proceed either in DW's name or in Universal's or
                  UIP's name, in which event all recovery reasonably allocated
                  to the Pictures shall be included in Gross Receipts and all
                  reasonable, actual direct third party expenses reasonably
                  allocated to protecting the Pictures shall be a Distribution
                  Expense. DW shall cooperate fully therewith, and if recovery
                  is through MPAA or MPA actions, any financial recovery shall
                  be applied consistent with MPAA or MPA practices. To the
                  extent Universal and/or UIP pays direct additional costs
                  related to piracy, copyright or trademark infringement or
                  other violations of DWs rights in the Pictures, such costs (to
                  the extent pre-approved by DW), including but not limited to
                  anti-piracy print coding, MPAA or MPA anti-piracy programs,
                  and other anti-infringement activities, shall be payable by
                  DW. Notwithstanding the foregoing, DW may, in its sole
                  discretion, elect not to have the Pictures included in such
                  MPAA, MPA, piracy, copyright or trademark infringement or
                  other actions.

                                       18
<PAGE>
            c.    In the exercise of Theatrical Distribution Rights hereunder:

                  i.    Neither Universal nor UIP shall re-cut, dub, sub-title,
                        edit or alter the Pictures, without DW's prior written
                        approval;

                  ii.   Neither Universal nor UIP shall add trailer, commercial
                        or other material to the Pictures without DW's prior
                        written approval, and neither Universal nor UIP shall
                        use any elements from the Pictures as part of a
                        commercial, advertisement or trailer in other motion
                        pictures distributed by Universal or UIP, without DW's
                        prior written approval. Notwithstanding the foregoing,
                        neither Universal nor UIP shall be in breach if a local
                        theater owner violates the terms of the preceding
                        sentence, provided that neither Universal nor UIP has
                        consented to or approved same;

                  iii.  Without DW's prior written approval, neither Universal
                        nor UIP shall distribute the Pictures through "tying"
                        arrangements or package deals (e.g., where the Pictures
                        are marketed and sold in a group with other motion
                        pictures); and

                  iv.   Subject to Paragraph 11.b., without DW's prior written
                        approval, neither Universal nor UIP will alter the
                        credits on the Pictures, and Universal and UIP will
                        otherwise comply with all credit obligations on the
                        Pictures.

            d.    In no event shall the rights granted hereunder to Universal be
                  construed to include rights to use any DW characters or other
                  element of intellectual property owned or controlled by DW in
                  any way other than in connection with the advertising and
                  distribution of the Pictures in which they appear, pursuant to
                  the terms set forth in this Exhibit "A".

            e.    All rights not expressly granted to UIP under this Exhibit "A"
                  are hereby expressly reserved to DW. Specifically, and without
                  limitation, DW reserves all tangible and intangible right to
                  every Picture (except only the right specifically set forth to
                  distribute Pictures in the Territory). All materials and other
                  physical elements created hereunder shall be the property of
                  DW upon creation.

      5.    COLLECTIONS/REMITTANCE/ACCOUNTING:

            a.    GROSS RECEIPTS: Gross Receipts consists of (i) all amounts
                  paid or credited by theaters to UIP (or deemed "received" by
                  UIP as set forth below in this subparagraph 5.a.) for the
                  right to exhibit the Pictures (including, without limitation,
                  returnable and non-returnable advances) or as subsidies,
                  prizes, or aid, and all receipts directly from the
                  distribution of the Pictures in the case of so called "four
                  wall engagements and/or road shows" ("UIP Gross") and (ii) all
                  amounts payable or credited by Subdistributors to UIP, as DWs
                  collection agent, for the right to distribute

                                       19
<PAGE>
                  the Pictures or as subsidies, prizes, or aid, and all receipts
                  directly from the distribution of the Pictures in the case of
                  so called "four wall engagements and/or road shows" ("SD
                  Gross") (UIP Gross and SD Gross shall collectively be referred
                  to as "Gross Receipts"). Gross Receipts shall be considered
                  "received" when booked as a receivable, subject to later
                  adjustment for amounts not received. Payment of such amounts
                  shall be made directly for the account of DW, or at DW's
                  election, of a DW-related entity, on a monthly basis. Gross
                  Receipts shall not include amounts payable or credited to DW
                  as a result of agreements and arrangements made directly
                  between DW and any DW Subdistributor or any promotional or
                  commercial "tie-in" agreements entered into by DW.

            b.    AMOUNT PAYABLE TO DW: Subject to Paragraph 5.b.i.(6) below,
                  Universal shall pay or cause to be paid to DW or, at DW's
                  election, to a DW-related entity, an amount equal to 100% of
                  the aggregate of the Gross Receipts, less the following in the
                  order listed:

                  i.    Distribution Fees ("Distribution Fees") to be retained
                        by Universal of an amount equal to:

                        (1)   *** of 100% of Gross Receipts paid to, or credited
                              against uncontested outstanding sums owed to
                              Universal by, DW until Gross Receipts equal ***;

                        (2)   *** of 100% of Gross Receipts paid to, or credited
                              against uncontested outstanding sums owed to
                              Universal by, DW for to DW from the point that
                              Gross Receipts exceed *** until Gross Receipts
                              equal ***;

                        (3)   *** of 100% of Gross Receipts paid to, or credited
                              against uncontested outstanding sums owed to
                              Universal by, DW for to DW from the point that
                              Gross Receipts exceed ***;

                  ii.   All "Distribution Expenses" (as defined below) accrued
                        by Universal on behalf of DW calculated in accordance
                        with Paragraph 5.d. below, subject to adjustment for
                        Distribution Expenses accrued but not paid, in the same
                        fashion as for UIP Owners.

            c.    CALCULATION OF DISTRIBUTION FEES:

                  i.    For purposes of the calculation of the Distribution Fees
                        pursuant to subparagraph 5.b.i, Gross Receipts shall be
                        aggregated and calculated for each "contract year" (with
                        the first "contract year" being the one year period
                        commencing the first day of the month in which the first
                        release of a Picture hereunder occurs and each
                        subsequent "contract year" being the one year period
                        commencing on the next anniversary of the first day of
                        the month in which the

                                       20

***Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>
                        first release of a Picture hereunder occurs), such that
                        at the beginning of each contract year the fee payable
                        to Universal pursuant to the schedule in Paragraph
                        5.b.i. above ("Schedule Percentages") shall be
                        calculated by again commencing with Paragraph 5.b.i.(1).
                        Notwithstanding the foregoing, (i) all post-Term
                        services (regardless of when rendered) shall be deemed
                        to occur in the last contract year that begins during
                        the Term, and (ii) if the last contract year is a
                        partial year, the fee payable to Universal for Gross
                        Receipts from such partial year as well as Gross
                        Receipts from the distribution of any of the Pictures
                        beyond the Term per Paragraph 1.b. above shall be the
                        lesser of *** of Gross Receipts paid to DW or the
                        otherwise applicable Schedule Percentages. As used in
                        subparagraph 5.b.i., Gross Receipts shall be based on
                        actual receipt by DW for purposes of measuring when the
                        Gross Receipts have been derived.

                  ii.   Notwithstanding anything to the contrary in
                        subparagraphs 5.b.i.(1)-(3) above, where UIP utilizes a
                        Subdistributor (or services a DW Subdistributor engaged
                        by DW pursuant to Paragraph 3.b.iii. above), Universal
                        shall be entitled to a fee based on SD Gross in the
                        amount of *** of the applicable Schedule Percentages;
                        provided, however, as provided in subparagraph 5.a.,
                        that UIP Gross and SD Gross shall be aggregated in any
                        event for purposes of calculating the Gross Receipts
                        breakpoints for the Schedule Percentages in
                        subparagraphs 5.b.i.(1)-(3).

                  iii.  No Distribution Fee shall be payable to Universal until
                        concurrent payment to DW of the Gross Receipts, if any,
                        upon which such fee is charged, it being recognized that
                        Universal is entitled to recoup Distribution Expenses
                        out of amounts otherwise payable to DW which recoupment
                        shall not affect Universal's right to its Distribution
                        Fee hereunder. In the event of any adjustment as
                        provided in Paragraph 5.a. above, the Distribution Fee
                        shall be similarly recalculated and adjusted.

                        Notwithstanding the foregoing, if Universal and/or UIP
                        changes its accounting methodology (it being agreed that
                        the re-allocation of an in-house expense to an outside
                        source shall not be deemed to be a change in accounting
                        methodology), its new accounting methodology shall
                        govern this Exhibit "A"; provided, however, that if the
                        current accounting methodology used by Universal in
                        connection with the UIP Owners is more favorable to DW
                        than Universal's new accounting methodology, Universal's
                        current accounting methodology shall govern this Exhibit
                        "A".

                  iv.   In no event shall the Distribution Fees be less
                        favorable to DW than the distribution fees paid to or
                        retained by Universal and/or

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                        UIP in connection with Universal's (or UIP's) overall
                        distribution in the Territory of motion pictures
                        produced by any party other than a UIP Owner, it being
                        agreed that for the purpose of determining whether
                        Universal and UIP have complied with this "favored
                        nations" assurance, Universal's or UIP's receipt of a
                        distribution fee plus any other consideration (in any
                        form, e.g. non-monetary consideration such as other
                        rights granted to Universal at the time) shall be taken
                        into account, so that the determination is an
                        "apples-to-apples" comparison, as much as possible, and,
                        in any event, one picture deals and output deals for any
                        country which represents less than *** of the rental
                        receipts from theatrical distribution in the Territory
                        for the prior year shall be excluded.

            d.    DISTRIBUTION EXPENSES: "Distribution Expenses" shall mean all
                  actual direct out-of-pocket costs and expenses accrued (i.e.,
                  *** after being accrued, provided such costs and expenses are
                  paid no more than *** thereafter), or otherwise when paid, by
                  Universal and/or UIP in connection with the distribution of
                  the Pictures in accordance with, and subject to, all of the
                  terms and conditions of this Exhibit "A". Distribution
                  Expenses paid in connection with both Pictures and other
                  pictures will be allocated in a manner agreed by the parties.
                  Included in Distribution Expenses are the following costs:

                  i.    Manufacturing of prints, and subtitling, dubbing and
                        editing;

                  ii.   Advertising, promoting, and publicizing the Pictures in
                        publications, radio and television, previews, P.O.P.
                        materials, displays and all other media;

                  iii.  Freight, insurance (provided, however, that if DW would
                        be required hereunder to reimburse Universal and/or UIP
                        for such insurance costs and Universal and/or UIP can
                        exclude DW under the terms of the policy, then DW may in
                        its sole discretion decline such insurance), and
                        storage;

                  iv.   Applicable payments to performing right societies (e.g.,
                        SESAC) which Universal and/or UIP is required to pay;

                  v.    Prosecution, settlement and/or defense of copyright
                        infringement, trademark infringement, unfair competition
                        and related claims and litigation, provided that all
                        amounts recovered pursuant to any of the aforementioned
                        shall be included in Gross Receipts as provided in
                        Paragraph 4.b.; and

                  vi.   Permit fees and sales, use, remittance, transfer and
                        other taxes on goods, however denominated.

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                  vii.  Notwithstanding anything in subparagraphs i - vi above,
                        in computing Distribution Expenses, any allocation among
                        the Pictures and UIP Owner's pictures shall be
                        reasonably and fairly made, in a manner no less
                        favorable to DW than to the UIP Owners and none of the
                        following shall constitute Distribution Expenses or
                        otherwise be paid by DW to Universal and/or UIP: (a)
                        except to the extent caused by DW's actions or inaction,
                        expenses associated with delinquent payments by
                        Universal and/or UIP to suppliers, vendors or other
                        service providers (e.g., interest or finance charges);
                        (b) so-called "overhead" expenses or other indirect
                        costs (including, without limitation, salaries and
                        travel expenses) of Universal and/or UIP; (c) expenses
                        associated with tradeshows, film festivals, conventions
                        and similar events, except that incremental increases in
                        such costs over those paid in prior years (to the extent
                        pre-approved by DW and solely attributable to the
                        Pictures) shall be Distribution Expenses hereunder; (d)
                        any other expenses (other than actual direct
                        out-of-pocket costs and expenses otherwise reimbursable
                        under this subparagraph 5.d. as set forth above) of any
                        kind, including, without limitation, collection costs
                        and Universal's and UIP's share of trade association
                        dues and assessments (subject to an appropriate
                        reduction, to be mutually agreed, if and to the extent
                        publications or reports from such trade associations are
                        not supplied to DW hereunder per subparagraph
                        3.f.(i)(f), and provided further that DW may elect in
                        any event to become a member of any such trade
                        association(s) and pay such dues and assessments
                        directly to the appropriate association(s), in which
                        event DW shall not be responsible for any share of
                        Universal's and VIP's dues and assessments to such
                        association(s)), except that incremental increases in
                        such costs over those paid in prior years (to the extent
                        pre-approved by DW and solely attributable to the
                        Pictures) shall be Distribution Expenses hereunder.

            e.    FINANCE/AUDITS:

                  i.    ADVANCES/REBATES: UIP shall promptly disclose in writing
                        and credit to DW all advances, volume discounts,
                        laboratory and other vendor rebates and any other
                        economic consideration or financial advantages accorded
                        UIP by a third party as a direct or indirect result of
                        UIP's distribution of the Pictures whether or not
                        specifically allocated to the Pictures, including any
                        amounts received for or in connection with the
                        distribution of motion pictures including the Pictures
                        which are not specifically allocated or credited to the
                        distribution of specific Pictures consistent with
                        Section 3.c. All such advances, volume discounts,
                        laboratory and other vendor rebates and other economic
                        consideration or financial advantages will be allocated
                        to the Pictures according to the terms

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<PAGE>
                        of the agreements in question, or, if such agreements do
                        not provide a means of allocation, on a fair and
                        reasonable basis (subject to later reconciliation if and
                        to the extent such allocation was in retrospect unfair
                        or unreasonable to either party). DW shall have access
                        to any agreement which provides for any such advance,
                        volume discount, laboratory or other vendor rebate or
                        other economic consideration or financial advantages,
                        subject to the conditions set forth in subparagraph 3.c
                        above with respect to third party suppliers. No rebates
                        which relate, in whole or in part, to the Pictures shall
                        be granted to UIP's Subdistributors without DW's
                        specific written consent.

                  ii.   LOCAL CURRENCY: Other than amounts which cannot legally
                        be remitted from the country in which they are earned
                        ("Blocked Currency"), all amounts payable hereunder
                        shall, as DW elects, be paid in either U.S. currency or
                        the currency of the country where such Gross Receipts
                        are received. In the event that DW elects to be paid
                        such amounts in U.S. currency, the amounts shall be
                        converted, using the same exchange rate for Distribution
                        Expenses and Gross Receipts, on specified dates of which
                        Universal and/or UIP shall notify DW on an ongoing basis
                        and which shall be the same dates and rates used for the
                        UIP Owners' pictures; provided, if amounts are not
                        converted directly from the foreign currency in which
                        they were received to U.S. currency (i.e., if
                        intermediary conversion to other currency(ies) is
                        utilized), then Universal shall bear all risk from
                        fluctuation of such intermediary currencies.
                        Notwithstanding the above, DW shall have absolute
                        approval over any currency hedging contracts applicable
                        to the Pictures entered into by UIP, and DW shall have
                        the right to enter into foreign currency hedging
                        contracts with respect to amounts due hereunder. In the
                        case of Blocked Currency, DW shall have the right to
                        elect whether to receive some or all of the payment
                        which may be due in such Blocked Currency, in the
                        country where it is located. DW may use such amounts to
                        pay Universal for any Distribution Expenses,
                        Distribution Fee or other amounts due hereunder on the
                        Pictures in the country of such Blocked Currency or make
                        any other arrangements with respect thereto as are
                        available to the UIP Owners. To facilitate this,
                        Universal shall cause UIP, on each statement hereunder,
                        to advise DW in writing as to Gross Receipts which are
                        in Blocked Currency and Universal shall, at the written
                        request of DW (subject to any and all limitations,
                        restrictions, laws, rules and regulations affecting such
                        transaction), deposit into a bank designated by DW in
                        the country involved, or pay to any other party
                        designated by DW in such country, any Blocked Currency
                        which would have been payable to DW hereunder. Such
                        deposits or payments to or for DW shall constitute due
                        remittance to DW, and Universal shall have no further
                        interest therein or

                                       24
<PAGE>
                        responsibility therefor. At DW's election, Universal
                        will convert such deposits or payments into U.S. dollars
                        to the same extent and in the same manner and proportion
                        that UIP is able to convert such funds for UIP Owner's
                        pictures.

                  iii.  BONUSES: To the extent that UIP pays bonuses or
                        compensation or consideration of any type (including,
                        without limitation, discretionary bonuses) to its sales
                        staff or other employees or to any person or entity
                        which renders services on or in connection with UIP's
                        distribution of the Pictures, that are tied or relate in
                        any fashion, in whole or in part, directly or
                        indirectly, to UIP staff's revenue generation in
                        connection with UIP pictures, UIP shall include the
                        Pictures on a pro-rata basis in all such calculations
                        and with respect to all such bonuses, compensation or
                        consideration such that any person or entity which
                        receive a bonus shall have equal incentive with respect
                        to the Pictures as compared to other UIP pictures. DW
                        may not pay bonuses or consideration of any type
                        directly to UIP's personnel.

                  iv.   COMPUTER SYSTEM/ELECTRONIC MAIL: DW shall be "on line"
                        on UIP's computer systems as to information DW is
                        entitled to hereunder and shall have direct access to
                        UIP's electronic mail system, if any, and any other
                        system of communication between UIP and the UIP Owners
                        and will reimburse UIP or Universal, as the case may be,
                        for the allocable portion of UIP's or Universal's
                        actual, direct, third party out-of-pocket additional
                        installation and hardware costs, if any, paid by UIP or
                        Universal as a direct result thereof, within a
                        reasonable period following receipt of appropriate
                        supporting documentation; provided, however, that at the
                        expiration or earlier termination of the Term, UIP shall
                        (at DW's election) either: (a) give DW any hardware for
                        which DW has reimbursed Universal or UIP; or (b) UIP
                        shall retain such hardware and refund to DW the amount
                        equal to the depreciated value of such hardware.

                  v.    TAX REBATES: Universal shall be entitled to charge
                        remittance taxes, but shall be obligated to rebate to DW
                        *** of such taxes at the end of the year in which they
                        are withheld, and the remaining *** at the end of the
                        following year.

                  vi.   UIP OWNED BUSINESSES: With respect to the distribution
                        of Pictures hereunder, any agreement with any theater or
                        theater chain, or any supplier or other business or
                        entity owned in whole or in part, directly or
                        indirectly, by UIP or any UIP Partner ("UIP Business")
                        shall be fair and reasonable in the marketplace and on
                        an arms-length basis. If Universal has UIP audit and
                        monitor any agreement with a UIP Business to ensure that
                        DW is not

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                        prejudiced in any fashion as a result of such business
                        being owned by UIP or a UIP Partner, it shall supply to
                        DW all information with respect thereto supplied to the
                        UIP Owners, including the results of any such audit or
                        procedure.

            f.    ACCOUNTINGS:

                  i.    Universal shall cause UIP to furnish to DW, on a monthly
                        basis, within *** from the end of each calendar month,
                        revenue and payment detail reports (the "Payment
                        Reports") in a format approved by DW, which format may
                        change from time-to-time in DW's good faith discretion.
                        The Payment Reports shall, among other things, indicate
                        with specificity on a territory-by-territory basis, all
                        Gross Receipts earned by each Picture and all
                        Distribution Expenses for each Picture and any
                        Distribution Fees (as set forth in Paragraph 5.b) with
                        respect thereto, and (since Gross Receipts are on a
                        billings basis and Distribution Expenses on an accrual
                        basis) shall reconcile prior Payment Reports to reflect
                        Gross Receipts actually received and Distribution
                        Expenses actually paid, in a manner consistent with the
                        way such items are reconciled for the UIP Owners. All
                        Distribution Expenses and Gross Receipts shall be fully
                        crossed among all Pictures hereunder for purposes of
                        recoupment by Universal of its advances of Distribution
                        Expenses hereunder; in no event will Distribution
                        Expenses and Gross Receipts be crossed between this
                        Exhibit "A" and Exhibit "B" (except only if and to the
                        extent that DW fails to timely make any payments
                        required hereunder). Payment Reports may be corrected,
                        adjusted or supplemented by Universal from time-to-time
                        to reflect adjustments, uncollectible amounts, errors,
                        etc. No Payment Reports need be rendered for any
                        accounting period during which there are no Gross
                        Receipts or Distribution Expenses to be reported. If
                        Universal and/or UIP are required to incur any new
                        additional costs (of which Universal and/or UIP notifies
                        DW in advance) for outside personnel Universal and/or
                        UIP are required to engage solely in order to furnish
                        any Payment Reports which are re-formatted to DW's
                        specifications and which are not included within the
                        scope of services to be rendered by Universal and/or UIP
                        under this Exhibit "A", Universal and/or UIP shall not
                        be required to furnish such re-formatted Payment Reports
                        unless DW pre-approves such costs and agrees to
                        reimburse Universal and/or UIP, as applicable, for same
                        (subject to appropriate reduction, to be mutually
                        agreed, if and to the extent that the format of such
                        re-formatted Payment Reports is used for similar reports
                        [subject to DW's prior approval] to any party other than
                        DW). Any dispute as to whether such re-formatted Payment
                        Reports are within the scope of services to be rendered
                        by

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                        Universal and/or UIP hereunder will be subject to
                        dispute resolution pursuant to Paragraph 10 of the
                        Master Agreement.

                  ii.   Concurrently with its receipt of each Payment Report,
                        Universal will pay to DW amounts indicated thereon to be
                        due to DW. All payments to DW or Universal, as the case
                        may be, hereunder shall be made by wire transfer or such
                        other method as DW or Universal, as the case may be,
                        shall approve. Payments to DW shall be to DW or any
                        entity designated from time-to-time by DW.
                        Alternatively, at DW's election, such payment shall be
                        made directly by MCA International, B.V. in the
                        Netherlands to a DW subsidiary in the United Kingdom or
                        such other country as DW may designate, provided that
                        any additional remittance or other taxes paid by MCA and
                        resulting from payment being so made shall be a
                        Distribution Expense, in which event MCA will rebate to
                        DW *** of such tax credits at the end of such year and
                        the remaining *** at the end of the following year.

                  iii.  If a Payment Report indicates that the Distribution
                        Expenses of Pictures exceed the Gross Receipts, DW shall
                        pay Universal the difference within 5 business days
                        following DW's receipt of the Payment Report. In the
                        event that it is later determined that such Payment
                        Report overstated the amount payable by DW to Universal,
                        DW shall be entitled to an immediate refund of such
                        overpayment (plus interest thereon at the rate set forth
                        in sub-paragraph iv).

                        Interest shall be charged on the amount due a party as
                        computed from the date of the Payment Report but shall
                        be waived if payment of the amount owing is made within
                        5 business days after the receipt of the Payment Report.

                  iv.   Interest shall be charged on any amount which is not
                        paid when due (from the date due until the date of
                        payment) hereunder by either party at the *** rate from
                        time-to-time in effect. Such interest shall be paid at
                        the same time as the associated principal payment shall
                        be made.

                  v.    DW shall be entitled to all audit results respecting the
                        Pictures on the same basis and frequency as UIP Owners
                        are provided with audit results as to their pictures. In
                        that regard, DW acknowledges that currently such UIP
                        audits are performed annually on an alternating basis
                        using internal and external auditors.

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            g.    ACCESS AND AUDIT RIGHTS:

                  i.    Universal shall keep, and shall cause UIP to keep, full,
                        true and complete records and books of accounts together
                        with all supporting vouchers and documents relating to
                        the distribution of the Pictures hereunder
                        (collectively, "Records"), and maintain, and cause UIP
                        to maintain, for a period of seven years following DW's
                        receipt of a Payment Report all Records relevant
                        thereto. Notwithstanding the foregoing, Universal shall
                        in any event, and shall cause UIP in any event to, keep
                        and maintain (or deliver to DW) all of the above
                        mentioned materials for any longer period required to
                        complete an open audit of which DW gives notice or in
                        the event of an unresolved dispute with any participant
                        or third party related to a Picture of which DW gives
                        notice.

                  ii.   Universal grants DW and its agents, employees and
                        representatives the rights, from time-to-time at all
                        times during the Term and for a period of *** after the
                        latter of the expiration of the Term and the delivery of
                        the last Payment Report hereunder, with reasonable prior
                        notice to Universal and at all reasonable hours and with
                        reasonable frequency, to examine, audit and take
                        excerpts from and make copies of any such records,
                        invoices, book of account, computer or data base
                        information, and all other documents or correspondence
                        related to the distribution of the Pictures or to the
                        calculation of amounts due to or from DW hereunder;
                        provided, however, transactions will not be subject to
                        audit more than *** years after delivery to DW of the
                        Payment Report in which such transactions are initially
                        reported. Notwithstanding the foregoing, DW shall only
                        be entitled to confidential third party information to
                        the extent the same is reasonably necessary to resolve
                        an issue(s) under audit; if Universal and/or UIP refuses
                        to supply any such information, the parties will (on
                        DW's request) submit to dispute resolution pursuant to
                        Paragraph 10 of the Master Agreement and the "Judge" (as
                        defined in the Master Agreement) shall impose such
                        reasonable procedures (including, without limitation,
                        limiting disclosure to auditors, redaction and in camera
                        proceedings) as the Judge deems necessary to accord
                        information reasonably necessary to conduct the audit
                        while preserving the third party's legal rights to
                        confidentiality. DW's audit rights hereunder shall
                        include the right to examine and inspect all inventory
                        of the Pictures in the possession or control of
                        Universal, UIP and any Subdistributors and/or the
                        duplication, printing and storage facilities used by
                        Universal. All such audits shall, except as otherwise
                        provided in subparagraph 5.g.iii. below, be at DW's sole
                        cost and expense.

                  iii.  If an audit discloses any inaccuracies or discrepancies
                        in Universal's and/or UIP's books and records with
                        respect to the

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                        distribution of the Pictures hereunder or the amounts
                        payable to or from DW, Universal and/or UIP, as
                        applicable, shall cure such inaccuracies and
                        discrepancies within thirty (30) days following notice
                        thereof. In the event an audit shall uncover a
                        deficiency as of the end of the period audited, or for
                        any period of at least six months during the period
                        audited, in each case equal to or greater than *** in
                        any account owed at any time by Universal and/or UIP, as
                        applicable, to DW hereunder, Universal and/or UIP, as
                        applicable, shall immediately pay DW (i) said deficiency
                        in full, and (ii) all costs and expenses in connection
                        with such audit including, without limitation, hotel and
                        airfare expenses.

                  iv.   In the event of an audit, Universal and/or UIP, as
                        applicable, shall provide DW and its agents, employees
                        and representatives with reasonable and suitable
                        physical conditions in which to conduct such audit,
                        including, without limitation, a desk and chair,
                        adequate lighting and suitable ventilation, as well as a
                        copying machine with which to make copies. UIP shall
                        cause each Subdistributor to comply with the foregoing.

                  v.    Each of Universal, UIP and DW shall use reasonable
                        efforts to conduct any audit in an expeditious manner.

            h.    OPERATIONS:

                  i.    PRINTS: UIP shall catalog and track (in a manner
                        reasonably acceptable to DW) all prints and trailer and
                        other advertising material and for the destruction of
                        prints and for issuance of a certificate of destruction
                        evidencing same, to the extent done for other UIP Owners
                        (or to a greater extent as required by DW, provided,
                        however, that if Universal and/or UIP are required to
                        incur any new additional costs (of which Universal
                        and/or UIP notifies DW in advance) for outside personnel
                        Universal and/or UIP are required to engage solely in
                        order to render such more extensive cataloging and
                        tracking services which are not included within the
                        scope of services to be rendered by Universal and/or UIP
                        under this Exhibit "A", Universal/UIP shall not be
                        required to furnish such more extensive cataloging and
                        tracking services unless DW pre-approves such costs and
                        agrees to reimburse Universal and/or UIP, as applicable,
                        for same (subject to appropriate reduction, to be
                        mutually agreed, if and to the extent such more
                        extensive cataloging and tracking services are utilized
                        [subject to DW's prior approval] by any party other than
                        DW). Any dispute as to whether such more extensive
                        cataloging and tracking services are within the scope of
                        services to be rendered by Universal and/or UIP
                        hereunder will be subject to dispute resolution pursuant
                        to Paragraph 10 of the Master Agreement.

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                  ii.   LABORATORIES: DW shall have the right, at DW's option,
                        to negotiate laboratory deals independently of UIP
                        (provided that DW will in appropriate circumstances use
                        its good faith efforts to provide UIP notice thereof; it
                        being agreed that DW's failure to do same shall not be
                        deemed to be a breach of this Exhibit "A"); otherwise DW
                        shall be entitled to piggyback on the economics terms of
                        Universal's laboratory deal.

      6.    REPRESENTATIONS AND WARRANTIES:

            a.    DW represents and warrants that:

                  i.    As of the date UIP commences to advertise and/or
                        distribute a Picture hereunder there shall be no claims,
                        liens, encumbrances or licenses in or to the Picture
                        which would limit or interfere with the rights hereby
                        granted.

                  ii.   All negatives and other materials to be delivered or
                        made available to Universal will be of a quality
                        suitable for the manufacturing of technically acceptable
                        positive release prints of the Pictures and trailers
                        thereof.

                  iii.  Unless DW notifies Universal or UIP in writing to the
                        contrary, there will be no restrictions which would
                        prevent Universal from distributing the Pictures
                        consistent with the provisions of this Exhibit "A".
                        There will not be any payments which must be made by
                        Universal to any actors, musicians, directors, writers
                        or other persons who participated in the Pictures, or to
                        any union, guild or other labor organization for any
                        right to exhibit the Pictures or as compensation in
                        connection with such exhibition or for any other use of
                        the Pictures or any of the rights therein and thereto,
                        provided that DW shall not be obligated to supply any
                        performing rights license (e.g., SESAC) which may be
                        required in connection with exhibition of any Picture
                        except only to the extent obtained by the UIP Owners or
                        otherwise as customary in the motion picture business
                        for so-called "major" studios.

            b.    Universal represents and warrants that:

                  i.    Neither Universal (nor UIP) will suffer or permit any
                        lien, claim, encumbrance, pledge or mortgage to attach
                        to any Picture or to any materials furnished by DW
                        relating to the Pictures.

                  ii.   No material (including, without limitation, advertising,
                        publicity, promotional, trailers, etc.) added to the
                        Pictures or used in connection therewith by Universal or
                        on its behalf by UIP violates or will violate, or
                        infringes or will infringe, any trademark, trade name,
                        contract, agreement, copyright (whether common law or

                                       30
<PAGE>
                        statutory), patent, literary, artistic, dramatic,
                        personnel, private, civil, property, or privacy right or
                        "moral rights of authors" or any other right or slander
                        or libel, any person or entity, provided that the
                        foregoing shall not apply to any material which is
                        created by or supplied by DW.

                  iii.  UIP has or will have written agreements with each
                        Subdistributor hereunder to comply with the terms and
                        conditions of this Exhibit "A". Such agreements will be
                        made available to DW promptly upon its request.

      7.    INDEMNITY: In addition to, and without limiting, each party's
            indemnity pursuant to Paragraph VIII.5. of the Master Agreement,
            each party ("Indemnitor") shall also at its own cost and expense
            indemnify, defend and hold the other party, its and their parents
            and affiliates, and their respective employees, agents, managers,
            subdistributors, directors and shareholders (collectively,
            "Indemnitee") harmless from and against any and all loss (exclusive
            of profits), liability or expense resulting from any claim, demand
            or suit which may be made or brought against Indemnitee by reason of
            any claim by any third party that a Picture, or any element thereof,
            including, without limitation, the sound and music synchronized
            therewith, or any material (including, without limitation,
            advertising, publicity, promotional trailers, etc.) added to the
            Picture or used in connection therewith, to the extent any of the
            above are supplied by or at the request or direction of or on behalf
            of Indemnitor and utilized by Indemnitee as instructed by
            Indemnitor, or added by the Indemnitor without Indemnitee's
            knowledge, violates or infringes upon the trademark, trade name,
            patent, copyright, literary, dramatic, musical, artistic, personal,
            private, publicity, civil, property or contract right, right of
            privacy, the moral rights of authors or any other right of any
            person, firm, corporation or entity. Universal will not be entitled
            to any indemnity hereunder to the extent that losses arise or result
            because Universal fails to withdraw any Picture which is the basis
            of any such claim from distribution immediately as, when and to the
            extent so instructed by DW (in which event DW will indemnify
            Universal and UIP against third party breach of contract claims in
            connection with contracts entered into by Universal and/or UIP in
            accordance with the terms of this Exhibit "A" and based on such
            withdrawal). DW shall maintain and cause Universal and UIP to be
            added as additional insureds (without responsibility for premiums or
            deductibles) with respect to the Pictures under DW's customary
            Errors and Omissions policy pertinent to exhibition of the Pictures
            in the Territory (and each country therein). All such insurance
            coverage shall be primary to any other coverage maintained by
            Universal and UIP. DW will supply Universal with customary
            certificates of insurance and copies of the pertinent policies
            evidencing DW's coverage, if any. Notwithstanding the foregoing, DW
            may elect in its sole discretion to self-insure. Universal shall be
            fully responsible for the loss or destruction of any Pictures or
            related physical elements in Universal's or VIP's or any of their
            Subdistributors' or agents' possession or control, unless and to the
            extent that the negligent or wrongful conduct of DW and/or a third
            party with whom DW contracts directly pursuant to Paragraph 3.c of
            this Exhibit "A" results

                                       31
<PAGE>
            in such loss or destruction (and further provided that such
            negligent or wrongful conduct is not of the type for which the
            distributor would be responsible under industry custom). To the
            extent UIP does so for UIP Owner's pictures, the Pictures shall be
            covered, and DW shall be added as an additional insured (without
            responsibility for premiums or deductibles), under UIP's property,
            casualty, and liability insurance and the proportionate cost thereof
            shall be a Distribution Expense hereunder (provided, however, that
            if DW would be required hereunder to reimburse Universal and/or UIP
            for such insurance costs and Universal and/or UIP can exclude DW
            under the terms of the policy, then DW may in its sole discretion
            decline such insurance). All such insurance coverage shall be
            primary to any other coverage maintained by DW. UIP shall
            immediately forward to DW Certificates of Insurance evidencing UIP's
            coverage, if any. Notwithstanding the foregoing, Universal may elect
            in its sole discretion to self-insure.

      8.    COPYRIGHT: DW at its sole expense shall cause the Pictures to be
            protected by copyright in any part of the Territory where motion
            pictures may be protected by copyright. Universal will cooperate as
            reasonably required by DW in connection with actions undertaken by
            DW (in its sole discretion) to protect copyrights, trademarks, etc.

      9.    DELIVERY: DW shall timely deliver to Universal at DW's expense all
            pertinent physical materials which DW reasonably deems necessary to
            facilitate Universal's exercise of its Theatrical Distribution
            Rights hereunder provided that Universal and UIP shall have no
            liability whatsoever for any loss, cost or damages caused by DW's
            failure to provide customary advertising and release materials in a
            complete and timely manner, except and to the extent that such
            failure is the fault of a Universal-provided service provider with
            whom DW has not directly contracted for the service provided. DW
            will provide Universal with any then-available print, trailer and
            advertising materials within sufficient time to enable UIP to meet
            DW's advertising and release requirements hereunder. DW will deliver
            to Universal a fully-executed laboratory access letter for each
            Picture in which DW has granted Universal Theatrical Distribution
            Rights hereunder.

      10.   TERMINATION:

            a.    TERMINATION WITHOUT CAUSE:

                  i.    DW and/or Universal shall be entitled to terminate this
                        Exhibit "A" and/or Exhibit "B" (but not Exhibit "C"
                        and/or Exhibit "D"), as DW or Universal, as applicable,
                        determines in its sole discretion, at any time, without
                        cause, upon twelve-months written notice as to the
                        Exhibit(s) being terminated. Termination without cause
                        must be in good faith and after written notice to the
                        non-terminating party specifying in good faith the
                        terminating party's problems, suggested solutions and
                        following the opportunity for both parties to meet and
                        work together to cure such problems. Termination

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<PAGE>
                        under this subparagraph 10.a. will not be subject to
                        arbitration and/or litigation except solely for claims
                        of bad faith or alleged violation of the next sentence.
                        Termination without cause would not be appropriate if
                        the reason for the termination was: (a) solely for the
                        economic advantage of the terminating party (e.g., for
                        DW to make a better deal or if Universal determined that
                        this is not a good deal); and/or (b) solely because DW
                        has started (or wants to start) its own distribution
                        company and/or network for the Territory (although if DW
                        otherwise terminates without cause, DW may thereafter
                        commence its own distribution company and/or network).

            b.    TERMINATION WITH CAUSE:

                  i.    This Exhibit "A" (and Exhibit "B", if DW determines in
                        its sole discretion) may be terminated by either party,
                        either (a) entirely; (b) in any country(ies) or
                        "Region(s)" (as defined below) where the applicable
                        event or non-performance has occurred (and either
                        entirely in such country[ies] or Region[s]), or only
                        with respect to any Picture(s) affected by such event or
                        non-performance in such country[ies] or Region[s]);
                        and/or (c) in the entire Territory with respect to a
                        Picture(s) affected by such event or non-performance,
                        all as the terminating party determines in its sole
                        discretion without prejudice to any other rights or
                        remedies available to it, upon the happening of any of
                        the following circumstances:

                        1.    If the other party shall materially breach this
                              Exhibit "A" (provided that the non-terminating
                              party shall have a period of 30 days, or such
                              other shorter period as may be reasonably required
                              with respect to each alleged breach, following
                              written notice thereof (specifying in reasonable
                              detail the alleged breach and the action(s)
                              necessary to cure same and indicating the
                              Picture(s) and territory(ies) being terminated) to
                              cure an inadvertent breach; provided that no such
                              cure shall be allowed for a second breach of the
                              same type as to which the breaching party has
                              previously been notified and given a cure period;
                              or

                        2.    If the non-terminating party shall make any
                              assignment for the benefit of creditors, file a
                              petition for bankruptcy, be judged bankrupt or
                              become insolvent, or if the other party
                              restructures or dissolves or changes pursuant to
                              government order affecting a significant portion
                              of the market.

                  ii.   This Exhibit "A" (and Exhibit "B", if DW determines in
                        its sole discretion) may be terminated by DW, either (a)
                        entirely; (b) in any country(ies) or Region(s) where the
                        applicable event or non-performance has occurred (and
                        either entirely in such country[ies] or Region[s]), or
                        only with respect to any Picture(s) affected by such
                        event or non-

                                       33
<PAGE>
                        performance in such country[ies] or Region[s]); and/or
                        (c) in the entire Territory with respect to a Picture(s)
                        affected by such event or non-performance, all as the
                        terminating party determines in its sole discretion
                        without prejudice to any other rights or remedies
                        available to it, upon the happening of any of the
                        following circumstances:

                        1.    If UIP's exemption from certain trade laws and
                              regulations in the European Economic Community is
                              not extended or renewed by the EEC Commission or
                              other governing body ("EEC"), with the result that
                              UIP cannot conduct business in the EEC in the
                              manner and with the organizational structure that
                              exists as of the date of this Exhibit "A",
                              provided that if DW does not exercise its
                              termination right under this subparagraph 1 and
                              Universal is permitted to continue to render
                              services hereunder, so long as UIP (or if it
                              cannot legally, then Universal) continues the
                              services required hereunder to the maximum extent
                              legally possible given such event and at the level
                              of services then required of UIP and Universal
                              hereunder, such performance shall be deemed
                              consistent with Universal's obligations hereunder,
                              it being acknowledged that DW may nonetheless
                              thereafter choose to exercise its termination
                              right under this subparagraph; or

                        2.    If UIP "restructures" (i.e., if UIP ceases to be
                              the foreign distribution entity for any or all of
                              UIP Owners or if the relative ownership interests
                              among the UIP Owners change); provided, however,
                              that DW shall not be entitled to terminate
                              pursuant to this provision if UIP (or a successor
                              entity) continues to be the distribution entity
                              for Paramount and Universal and no other U.S.
                              major theatrical studio or motion picture
                              financier or distributor. If DW does not exercise
                              its termination right under this subparagraph 2
                              and Universal is permitted to continue to render
                              services hereunder, so long as UIP (or if it
                              cannot legally, then Universal) continues the
                              services required hereunder to the maximum extent
                              legally possible given such event and at the level
                              of services then required of UIP and Universal
                              hereunder, such performance shall be deemed
                              consistent with Universal's obligations hereunder,
                              it being acknowledged that DW may nonetheless
                              thereafter choose to exercise its termination
                              right under this subparagraph; or

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<PAGE>
                        3.    If more than 3 times during any 12-month period
                              during the Term or an aggregate of 7 times during
                              the Term (provided that DW shall have given
                              Universal reasonably prompt notice of each such
                              alleged event and/or non-performance and that UIP
                              shall have failed to cure the same within 5 days,
                              or such shorter period as reasonably required by
                              DW, following DW's written notice thereof to cure
                              an inadvertent breach) UIP fails to:

                              (a)   Timely provide any distribution and/or
                                    marketing plans and budgets and/or other
                                    information or documentation required under
                                    this Exhibit "A"; or

                              (b)   Release the Pictures pursuant to plan on
                                    dates and for durations for the release of
                                    the Pictures and in the theaters approved by
                                    DW, subject to customary force majeure
                                    events (provided, in the event of a delay
                                    caused by a force majeure event, DW shall be
                                    permitted to distribute, or cause the
                                    distribution of, such Picture(s) as provided
                                    in Paragraph 2.c. above if DW reasonably
                                    determines that UIP will not be available to
                                    release the Pictures as and when required by
                                    DW); or

                              (c)   Obtain distribution terms from exhibitors
                                    for the Pictures equivalent to those UIP has
                                    obtained for comparable pictures of a UIP
                                    Owner.

                        4.    (a)   If DW determines that Universal (and UIP)
                                    has failed or will fail to achieve "Minimum
                                    Results" (as defined below) in the Territory
                                    as a whole, in any "Region" as a whole
                                    (i.e., South America, Western Europe,
                                    Australia, New Zealand, Japan, Far East [to
                                    the extent included in the Territory] and/or
                                    Africa) and/or in any of UIP's six top box
                                    office grossing countries (provided, Japan
                                    shall not be considered a "country" for this
                                    purpose) for the preceding calendar year
                                    (each, a "Top 6 Country", and currently
                                    Germany, France, England, Spain, Australia
                                    and Brazil) with respect to: (i) five or
                                    more Pictures in the Territory, any Region
                                    or any Top 6 Country during the Term; and/or
                                    (ii) any three out of five (on a rolling
                                    basis) consecutively released Pictures
                                    (i.e., consecutively initially released in
                                    commercial motion picture theaters before
                                    paying public audiences in the United
                                    States) in the Territory, any Region or any
                                    Top 6 Country.

                                       35
<PAGE>
                                    (UIP will provide DW with a list of the Top
                                    6 Countries annually.) Minimum Results in
                                    the Territory, any Region or any Top 6
                                    Country, as the case may be, shall be
                                    defined pursuant to Exhibit "A-2" attached
                                    hereto and incorporated herein by this
                                    reference.

                              (b)   If DW believes that Universal (and UIP) has
                                    failed or will fail as provided in Exhibit
                                    "A-2" to achieve Minimum Results with
                                    respect to any Picture or Pictures, DW will
                                    so notify Universal in writing, and unless
                                    Universal notifies DW in writing within ten
                                    business days thereafter stating in detail
                                    its objection to DW's determination, such
                                    determination shall thereafter be deemed
                                    conclusive for all purposes and not subject
                                    to later challenge. If Universal so objects
                                    to DW's determination, DW may submit such
                                    dispute to dispute resolution pursuant to
                                    Paragraph 10 of the Master Agreement. DW's
                                    right to submit such controversy to dispute
                                    resolution shall be without prejudice to its
                                    other rights under the Agreement and shall
                                    not be deemed to be a challenge to the
                                    validity and/or enforceability of the
                                    Agreement.

                              (c)   Notwithstanding the foregoing, a Picture(s)
                                    will not be required to achieve "Minimum
                                    Results" if DW materially changes UIP's
                                    distribution plan therefor and if the plan
                                    submitted by UIP was consistent with the
                                    distribution plans proposed or implemented
                                    by UIP in connection with VIP's distribution
                                    of comparable motion pictures.

                        5.    If at any time during the Term any country(ies)
                              comprising the Territory shall be or become
                              subject to a United States Government embargo or
                              trade restriction, and Universal fails to
                              immediately comply (and cause UIP to comply) with
                              such embargo or trade restriction as to the
                              Pictures; or

                        6.    If DW exercises its termination right with respect
                              to this Exhibit "A" under the first sentence of
                              Paragraph 7.B.(i) of Exhibit "B".

            c.    Upon termination of this Exhibit "A", DW shall have the right
                  (but not obligation) to order the immediate cessation of any
                  or all distribution of the Pictures and the immediate return
                  of any or all prints and related materials, or, at DW's
                  election, to require Universal to continue

                                       36
<PAGE>
                  distribution (subject to continuation of Distribution Fees on
                  such Picture[s]) of some or all Pictures previously delivered
                  and either in release or ready for release as and for the
                  duration of the initial period (as determined by DW in its
                  absolute discretion) of theatrical distribution, and in those
                  parts of the Territory designated by DW in its absolute
                  discretion (though DW shall not be obligated to deliver any
                  additional Pictures subsequent to termination of this
                  agreement); provided that Universal and UIP shall have the
                  right to honor all then-existing DW-approved contractual
                  commitments in connection with the exercise of rights granted
                  hereunder. Universal will remain obligated to make all
                  accountings and payments set forth herein with respect to
                  motion pictures distributed by it (or UIP). On expiration or
                  other termination of the Term, Universal will (subject to
                  Section VIII.2 of the Master Agreement and the reasonable
                  approval of Universal's counsel) immediately execute such
                  quitclaims and other documents as DW's counsel deems necessary
                  or advisable to evidence the termination of all Universal's
                  rights with respect to some or all of the Pictures. Any
                  disputes with respect to such quitclaim and other documents
                  shall be resolved as set forth in Section VIII.2 of the Master
                  Agreement. In the event no timely objection is made or such
                  objection is resolved, and Universal fails to execute
                  immediately any document useful or necessary to effectuate the
                  confirmation or implementation of the provisions hereof, DW
                  shall be irrevocably appointed as Universal's attorney-in-fact
                  for such purpose. It is acknowledged said appointment power is
                  coupled with an interest.

            d.    The parties acknowledge that if and to the extent DW
                  terminates for cause Universal's services hereunder, subject
                  to the first and second sentences of subparagraph c. above,
                  Universal shall not be entitled to any Distribution Fees
                  thereafter with respect to any terminated territory(ies)
                  and/or Pictures (i.e., if DW terminates Universal's services
                  hereunder with respect to a particular territory(ies) and/or
                  Picture(s), Universal's Distribution Fee will be calculated on
                  Receipts attributable to other than such terminated
                  territory(ies) and/or Picture(s)).

            e.    At the expiration or termination of the Term, DW shall advise
                  UIP to either return or destroy all materials in its
                  possession in connection with the Pictures, as DW shall
                  instruct. Such action shall be at DW's expense in the event of
                  expiration, termination without cause by DW or termination for
                  cause by Universal, and at Universal's expense in the event of
                  termination without cause by Universal or termination for
                  cause by DW.

      11.   MISCELLANEOUS:

            a.    STANDARD OF CARE: Except as otherwise specifically directed or
                  approved in writing by DW, in all actions under this Exhibit
                  "A", Universal shall cause UIP to act in accordance with at
                  least that standard of care that it

                                       37
<PAGE>
                  exercises on behalf of each of the UIP Owners. Both parties
                  shall operate under this agreement in good faith. Without
                  limiting the generality of the foregoing, Universal will
                  ensure that services Universal provides to DW hereunder will
                  be substantially equivalent in quantity, level and priorities
                  to the services accorded by Universal with respect to
                  theatrical distribution of Universal motion pictures; and
                  services provided by UIP (and any Subdistributor) will be
                  substantially equivalent in quantity, level and priorities
                  (including, without limitation, priorities in booking
                  theaters, circuits and booking dates) to the services accorded
                  by UIP (and any Subdistributor) to the UIP Owners' pictures of
                  similar domestic theatrical grosses for same genre of picture.

            b.    UIP DISTRIBUTION CREDIT: Universal shall have the right to
                  accord UIP (or any successor entity, if permitted hereunder)
                  its distribution credit (with its logo) on screen for each
                  Picture in reasonable and customary position on a separate
                  card, but such credit shall be no larger or more prominent and
                  shall remain on screen no longer than UIP's present customary
                  credit or UIP's credit on the motion pictures of the UIP
                  Owners. Universal shall also have the right to accord UIP (or
                  any successor entity, if permitted hereunder) its distribution
                  credit (with its logo) in advertising in the Territory
                  approved hereunder, in reasonable and customary position and
                  size. DW shall have the right to designate all other credits
                  on the Pictures and each agreement with a Subdistributor shall
                  provide that such Subdistributor is contractually bound to
                  abide by all such credit obligations.

            c.    ASSIGNMENT:

                  i.    Universal may not assign this Exhibit "A" except in
                        accordance with the terms of the Master Agreement.
                        Notwithstanding the foregoing, it is agreed that UIP, or
                        a successor entity which is owned and controlled solely
                        by the UIP Owners (or by Paramount Pictures and
                        Universal and no other party) and distributes all their
                        motion pictures in the Territory for which they have the
                        distribution rights, must be the foreign distributor for
                        the Pictures.

                  ii.   DW may not assign this Exhibit "A" except in accordance
                        with the terms of the Master Agreement.

                  iii.  Any attempted assignment in contravention of the
                        foregoing shall be deemed a material breach of this
                        Exhibit "A". In the event of a permitted assignment by
                        Universal or DW to a subsidiary, Universal or DW, as
                        applicable, shall nonetheless remain primarily liable
                        hereunder.

            d.    OTHER ACTIVITIES: Subject to the provisions hereof, nothing
                  herein shall limit in any way the right of DW, Universal, or
                  UIP or any subsidiary or

                                       38
<PAGE>
                  affiliate thereof to engage in business activities or
                  endeavors of any kind or nature, including but not limited to:

                  i.    All manner of television, home video and merchandising
                        (including, without limitation, video and computer
                        games) exploitation of the Pictures;

                  ii.   Advertising;

                  iii.  Publishing;

                  iv.   Interactive Media;

                  v.    The sale of designs, stories, characters, trademarks,
                        trade names or other rights or properties;

                  vi.   Ancillary market activities;

                  vii.  The co-financing or co-production or any other interest
                        of any nature in any motion picture or other property
                        (as to which, in the case of DW, DW does not own or
                        control [and hence can not accord UIP hereunder] any or
                        all of the theatrical distribution rights to such
                        Picture in the Territory.)

                  viii. The exercise of any right not expressly granted
                        hereunder.

                                       39
<PAGE>
                                  EXHIBIT "A-1"

                            SUBDISTRIBUTORS AND TERMS

                                       40
<PAGE>
                                  EXHIBIT "A-2"

1.    General: Minimum Results for a Picture in the Territory as a whole, in
      each Region of the Territory (i.e., South America, Western Europe,
      Australia/New Zealand, Japan, Far East [to the extent included in the
      Territory] and/or Africa) and in each Top 6 Country, as the case may be,
      shall be determined by comparing, in the manner set forth below, either
      (a) the "Territory Billings" for a Picture to the "Domestic Billings" for
      such Picture, or (b) the "Regional Billings" or "Country Billings" (in
      each Top 6 Country) for a Picture, as the case may be, to the "Territory
      Billings" for such Picture. "Domestic Billings", "Territory Billings",
      "Regional Billings" and "Country Billings" shall mean rental receipts from
      theatrical distribution in the relevant territory. Notwithstanding
      anything in this Exhibit "A-2" or in Exhibit "A" to the contrary, the Far
      East [to the extent included in the Territory] shall not be considered a
      Region for Minimum Results purposes if the portion of the Far East
      initially included in the Territory decreases, as a result of the
      exclusion (pursuant to Paragraph 1.c.ii of Exhibit "A") of additional
      countries in Asia in which the Korean Shareholder commences distribution
      of motion pictures, such that the Regional Billings for the portion of the
      Far East thereafter remaining in the Territory is less than 75% of the
      Regional Billings of the portion of the Far East initially included in the
      Territory; and in such event, the remainder of the Far East remaining in
      the Territory shall instead be included as part of Japan for Minimum
      Results purposes (with appropriate adjustments to account for the increase
      in the size of Japan in such event). Appropriate adjustments shall also be
      made for Minimum Results purposes to the extent necessary to account for
      (a) a Picture not being distributed by UIP in any portion of the Territory
      due solely to censorship or governmental prohibition, and (b) only with
      respect to Pictures with Domestic Billings of less than ***, a Picture not
      being distributed by UIP in any portion of the Territory pursuant to the
      first sentence of Paragraph 2.c of Exhibit "A".

2.    Definitions:

      a.    "Amblin' Performance Standard" ("APS") shall mean the following:

            (i)   "APS I" shall mean the percentage amount *** determined by
                  dividing (x) the aggregate Domestic Billings for all
                  theatrical motion pictures produced by Amblin' Entertainment
                  ("Amblin") and initially released for theatrical exhibition in
                  the Domestic Territory in the years 1988 through 1995
                  inclusive (the "Base Period") and thereafter released for
                  theatrical exhibition in the Territory which achieved Domestic
                  Billings of *** (other than "Schindler's List" and
                  "Arachnophobia") into (y) the aggregate Territory Billings for
                  the same group of Amblin' pictures. By way of example only,
                  assume aggregate Domestic Billings in the Base Period of ***
                  and aggregate Territory Billings for the same group of Amblin'
                  pictures of ***. The APS I for the Territory would be ***.

            (ii)  "APS II" shall mean the percentage amount *** determined by
                  dividing (x) the aggregate Domestic Billings for all
                  theatrical motion pictures produced by Amblin' and initially
                  released for theatrical exhibition in the

                                       41

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<PAGE>
                  Domestic Territory in the Base Period and thereafter released
                  for theatrical exhibition in the Territory which achieved
                  Domestic Billings of less than *** and more than *** into (y)
                  the aggregate Territory Billings for the same group of Amblin'
                  pictures. By way of example only, assume aggregate Domestic
                  Billings in the Base Period of *** and aggregate Territory
                  Billings for all such Amblin' pictures of ***. The APS II for
                  the Territory would be ***.

      b.    "Regional or Country Billing Percentage", as the case may be, shall
            mean the percentage amount *** determined by dividing (x) the
            aggregate Regional or Country Billings, as the case may be, for all
            UIP pictures released in the last three (3) years of the Base Period
            into (y) the aggregate Territory Billings for the same group of UIP
            pictures. By way of example only, assume aggregate Country Billings
            in Germany for all UIP pictures released in the years 1993, 1994 and
            1995 of *** and aggregate Territory Billings for the same group of
            UIP pictures of ***. The Country Billing Percentage would be ***.
            The Regional or Country Billing Percentage shall be subject to
            adjustment on an annual basis utilizing a floating three (3) year
            average updated each year.

      c.    "Regional or Country Performance Standard", as the case may be,
            shall be determined by multiplying (x) Domestic Billings for the
            applicable Picture by (y) the applicable APS as determined by the
            Picture's Domestic Billings, the product of which shall be
            multiplied by (z) the Regional or Country Billing Percentage, as the
            case may be. By way of example only, assume (i) Domestic Billings
            for the applicable picture of *** (ii) an APS I of ***, and (iii) a
            Country Billing Percentage of *** for the specific Top 6 Country
            within the Territory (e.g., Germany). Based on the foregoing, the
            applicable Country Performance Standard for a Picture achieving
            Domestic Billings of *** would be ***.

3.    Minimum Results:

      Minimum Results for a Picture in the Territory as a whole, in each Region,
      and in each Top 6 Country, as the case may be, shall be deemed to have
      been achieved if with respect to each Picture:

      (a)   For the Territory as a whole -- the Territory Billings for a Picture
            as a percentage of the Picture's Domestic Billings fall within
            fifteen (15) percentage points of the applicable APS. By way of
            example only, assume the APS I is ***. Then each Picture which
            achieves Domestic Billings of *** or more must achieve Territory
            Billings equal to at least *** of such Picture's Domestic Billings
            in order to meet Minimum Results for the Territory as a whole.

      (b)   For each Region or Top 6 Country within the Territory -- the
            Regional or Country Billings, as the case may be, for a Picture fall
            within *** of the Regional or Country Performance Standard. By way
            of example only, assume (i) a Country Performance Standard of ***
            for a specific Picture in Germany, calculated in accordance with
            Paragraph 2.c. above, and (ii) Country Billings in Germany of

                                       42

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<PAGE>
            *** for the Picture. Based on the foregoing, the Picture will have
            failed to achieve Minimum Results in Germany because it failed to
            achieve Country Billings of at least ***.

      (c)   For purposes of determining the applicable APS for a Picture, the
            *** breakpoint will be adjusted by the percentage change in the
            annual average movie ticket price outside the U.S., as reported by
            the MPAA or MPA, as applicable.

4.    Projection of Final Results:

      If final Domestic Billings, Territory Billings, Regional Billings and/or
      Country Billings for a Picture are not yet available (e.g., because the
      date of the initial theatrical distribution in a country within the
      Territory has not occurred or because some or all final billing results
      are not available), DW may, nevertheless, utilize interim billing figures
      (in the Domestic Territory, the Territory and/or any Region or Top 6
      Country), reasonable projections based thereon, and historical billings
      from the immediately preceding year to determine whether a Picture has
      failed or will fail to achieve Minimum Results. If a Picture fails to meet
      Minimum Results based on such projections, but ultimately achieves Minimum
      Results based on actual results, then it shall be deemed to meet Minimum
      Results for all purposes; provided, in no event will rental receipts from
      third-party distribution (i.e., other than UIP or an affiliated party) be
      included for purposes of calculating Minimum Results and in no event will
      DW be required to retroactively reverse any termination hereunder.

                                       43

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<PAGE>
                                  SCHEDULE A-TC

      AMENDED AND SUPPLEMENTAL TERMS AND CONDITIONS APPLICABLE TO EXHIBIT A

1.    Territory. "Territory" as defined in Exhibit A shall exclude the
      following:

      a. The entire territorial United States and its possessions, territories
      and commonwealths, including the U.S. Virgin Islands, Puerto Rico, Guam,
      and the former U.S. Trust Territories of the Pacific Islands, including
      the Carolina Islands, the Marshall Islands and the Mariana Islands, Saipan
      and American Samoa; the Dominican Republic, the British Virgin Islands,
      the Bahamas, Bermuda, Saba Island, St. Eustatius Island, St. Kitts Island,
      St. Martin Island, St Maarten Island; and Canada and its possessions and
      territories;

      b. Republic of South Korea, Democratic People's Republic of North Korea
      and the People's Republic of China (including Hong Kong) to the extent DW
      licenses Theatrical Distribution Rights in such countries to or through
      DW's Korean shareholder or any of its Affiliates, their successors or
      designees.

      c. Either Japan or the "German Territory", as DW may elect. The Federal
      Republic of Germany, the Republic of Austria and German-language rights in
      Lichtenstein, Luxembourg and Alto Adige shall constitute the German
      Territory. At any time during the Term, as a basis to raise additional
      capital, DW may assign, license or grant to any third party(ies)Theatrical
      Distribution Rights in and to Pictures for either Japan or the German
      Territory (the "Output Arrangement"), in which event Distributor shall not
      have the right to exercise Theatrical Distribution Rights to the
      applicable Pictures in the designated territory, except as otherwise may
      be provide in Exhibit A. DW, however, shall have the right to cause
      Distributor to provide all of the "Services" (as defined herein) in
      connection with such Theatrical Distribution Rights in Japan or the German
      Territory, in which event Distributor shall be entitled to the applicable
      Distribution Fees as set forth in Exhibit A, calculated on Gross Receipts
      (as defined in Exhibit A) derived from the applicable territory, and such
      Gross Receipts shall be taken into account for purposes of calculating the
      Gross Receipts breakpoints for the Schedules Percentages in Paragraph
      5.b.i. of Exhibit A. DW and such third parties shall have free access to
      all Picture elements and related materials for all purposes, provided DW
      and such third parties shall bear all duplication, freight and delivery
      costs in connection therewith. DW will provide Distributor with reasonable
      notice of termination of Theatrical Distribution Rights in the applicable
      territory, provided, however, if Distributor has prior to such notice (x)
      booked theatres for any Picture(s) subject to the Output Arrangement, then
      Distributor shall continue to provide all of the Services in connection
      with such Picture(s) in the applicable territory and shall be entitled to
      retain the applicable Distribution Fees thereon, or (y) incurred approved
      Distribution Expenses for any Picture(s) subject to the Output
      Arrangement, then DW shall reimburse Distributor for the cost thereof
      unless such Distribution Expenses are otherwise reimbursed to Distributor
      pursuant to the terms of Exhibit A.

                                        1
<PAGE>
2.    Non-Theatrical Rights. Certain Non-Theatrical Rights, as set forth and
      defined in a. below, are granted to Distributor for exploitation pursuant
      to Exhibit A.

      a. "Non-Theatrical Rights" shall refer to the right to exhibit a Picture
      solely in the Territory in hotels, motels, hospital and other health care
      facilities; correctional facilities; schools and other educational
      institutions; common areas of residential living communities; retirement
      centres, camps, religious institutions, buses, coaches and trains;
      libraries and museums; restaurants, bars and clubs; community military
      bases and government installations (excluding US/Canadian); and oil fields
      and oil rigs (excluding Aramco/US/Canadian sites).

      b. Non-Theatrical Rights retained by DW and specifically excluded from
      Exhibit A include: all airlines and aircraft (including military aircraft,
      e.g. the Royal Air Force) and all ships at sea (including cruise ships and
      ferries); all US and Canadian military and government installations (e.g.
      embassies and diplomatic posts) wherever located; Aramco/US/Canadian
      industrial sites; and all other non-theatrical venues and rights not
      specifically granted to Distributor hereunder.

      c. Distributor agrees to use reasonable efforts to exploit on behalf of DW
      Non-Theatrical Rights with respect to the Pictures during the Term, and
      such Non-Theatrical Rights shall be subject to the terms and conditions of
      Exhibit A, including (i) the accounting for revenues and related
      distribution expenses in accordance with Exhibit A, and (ii) the rights of
      DW to withhold, withdraw and/or terminate Non-Theatrical Rights, as and to
      the extent permitted by the terms of Exhibit A with respect to the
      Pictures and Theatrical Distribution Rights. Additionally, upon six (6)
      months written notice to Distributor, DW shall have the right to terminate
      Distributor's exploitation of such Non-Theatrical Rights, subject to
      existing licenses entered into prior to such notice and provided that the
      term of any licenses entered into after such notice shall not continue
      beyond the six (6) month notice period unless preapproved by DW.

3.    Services. Subject to and without limiting anything set forth in Exhibit A
      except as amended by the terms of this Schedule A-TC (provided that in the
      event of any conflict between Exhibit A, the Settlement Agreement (as
      defined below) and this Schedule A-TC, the provisions of this Schedule
      A-TC shall control over both the Settlement Agreement and Exhibit A, and
      the Settlement Agreement shall control over Exhibit A), Distributor shall
      supply and render, either itself or through third parties, at no cost or
      expense to DW, except for Distributor's retention of the applicable
      Distribution Fees set forth in Exhibit A, or as expressly set forth in the
      Settlement Agreement or Paragraph 4. below, the services ("Services") as
      described in Paragraph 4. below. Distributor and DW shall bear the cost of
      Services during the "Initial Term" and during the Extended Term (as such
      capitalized terms are defined in Paragraph 4. below) in accordance with
      Exhibit A as supplemented by that certain Settlement and Release Agreement
      between the parties hereto, dated as of December 29, 2000 (the "Settlement
      Agreement"), and as further amended and supplemented by the provisions of
      this Schedule A-TC.

4.    Definition of Services. Distributor shall render all customary services
      required to distribute the Pictures in a manner consistent with Services
      rendered during the initial

                                       2
<PAGE>
      term, i.e. the period from June 1995 through June 19, 2001 ("the Initial
      Term"), throughout the Territory. Any Services rendered by UIP personnel
      during the Initial Term shall not be charged separately or allocated in
      any manner to Pictures under the Agreement during the extended Term, i.e.,
      from June 20, 2001 until termination of the Term (the "Extended Term"),
      whether the Services are hereafter performed by UIP personnel or through
      third parties, except as expressly permitted in this Schedule A-TC.
      Services shall not be deemed to include permitted Distribution Expenses
      pursuant to Exhibit A, costs for which DW is responsible under Paragraph 4
      of this Schedule A-TC, or are Distribution Expenses specifically approved
      by DW. If any Services that DW knowingly agreed to pay as a third party
      cost during the Initial Term ("DW Approved Prior Costs", e.g. ***) are
      hereafter subsequently provided internally by UIP or Universal, DW will
      agree (prior to such costs being permitted Distribution Expenses as
      defined in Exhibit A) on an appropriate charge or allocation of such costs
      to Pictures, provided such charge or allocation shall be calculated in a
      fair and equitable manner and in no event exceed the rate or outside
      service charges formerly paid as a third party cost, taking into
      consideration prevailing market changes. DW's approval of third party
      costs in any given territory or country shall not be deemed approval in
      other territories or countries unless expressly agreed in writing by the
      parties. During the Extended Term, DW shall be responsible only for costs
      for controlled agency services and backroom services to the extent such
      services are performed by third parties as of April 15, 2001 on a
      country-by-country basis throughout the Territory. Promptly after June 15,
      2001 (and not later than July 31, 2001), Distributor shall provide to DW a
      list of all controlled agency service providers as of April 15, 2001, on a
      country-by-country basis, provided that an inadvertent failure to list a
      controlled agency service provider on such list shall not preclude
      Distributor from using such provider (or affect DW's responsibility for
      the costs associated therewith) if such provider (or a prior controlled
      agency service provider) in fact provided controlled agency services as of
      April 15, 2001. Services shall include, but are not limited to:

      a.    Marketing And Distribution

            i. For the top fifteen (15) countries and for all countries within
            the Territory in the case of animated feature films, and otherwise
            mutually agreed -- prepare and recommend in full consultation with
            DW country-by-country marketing plans, budgets and distribution
            plans containing such information, analysis and recommendations as
            DW may from time-to-time reasonably request. Country-by-country
            distribution plans for each Picture shall specify release dates and
            pursuant to and in accordance with UIP's SF4 policies (which shall
            not materially change from the policy as in effect on April 15,
            2001), the theaters in each key city. The top 15 countries as of the
            date hereof are: Japan, Germany, UK, France, Italy, Spain, Sweden,
            Belgium, Netherlands, Switzerland, Argentina, Brazil, Mexico,
            Australia and Taiwan.

            ii. Where rights are known to be available, all plans to be
            delivered no less than six (6) weeks prior to the initial theatrical
            release date in the Territory for each Picture. Notwithstanding the
            foregoing, in circumstances where media availability or advance
            booking deadlines require earlier commitments to

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            facilitate the cost effective purchase of media, UIP shall use its
            reasonable efforts to deliver plans in time to allow DW at least 5
            business days to review and approve budgets and media plans ahead of
            such deadlines (provided in no event shall Distributor be required
            to provide plans more than 60 days prior to initial theatrical
            release).

            iii. Provide marketing and advertising services, including all staff
            and personnel costs, excluding (a) controlled agency services (to
            the extent DW bears the costs thereof as set forth in the
            penultimate sentence of Paragraph 4, above), which for purposes of
            Exhibit A (including this Schedule A-TC) shall mean (i) "implants",
            i.e., agency personnel located at or substantially based at UIP
            offices (unless UIP has no local office) and who, in connection with
            UIP pictures generally, render specific tasks or perform specific
            department functions related to marketing and advertising (e.g., ***
            personnel in the United Kingdom), and (ii) marketing and advertising
            agencies who on an out-sourced basis administer the marketing and
            promotion of UIP pictures generally in a territory (e.g., the *** in
            Germany), (b) DW Approved Prior Costs, and (c) costs included in DW
            approved budgets, provided any budget item(s) specifically
            disapproved by DW shall not be provided unless and until Distributor
            and DW mutually agree on such costs.

            iv. Develop strategies for media buying and advertising and
            promotion, including the preparation of advertising budgets and
            advertising media and publicity plans. Negotiate with third party
            agencies and media representatives in respect of media buying.
            Coordinate and place orders for media buying on behalf of DW,
            including broadcast transmissions, display space, publicity
            material, etc. The basic services described herein are included
            within the Distribution Fees, excluding (a) any controlled agency
            services rendered in connection with such basic services, (b) DW
            Approved Prior Costs, and (c) costs included in DW approved budgets,
            provided any budget item(s) specifically disapproved by DW shall not
            be provided unless and until Distributor and DW mutually agree on
            such costs. Costs of media buyer agency commissions and actual ad
            costs will continue to be borne by DW.

            v. Adapt advertising and promotional concepts on a
            country-by-country basis.

            vi. Advise on the selection of local or alternative titles for DW's
            approval.

            vii. Where applicable, develop and implement in-theatre promotions,
            exhibitor and consumer mailings.

            viii. Select and purchase on behalf of DW goods and services from
            third parties, including graphic designers, printers, producers,
            sound and film labs.

            ix. Arrange and supervise the production of all filmed, taped and
            recorded advertising and publicity. The basic services described
            herein are included within the Distribution Fees, excluding (a) any
            controlled agency services rendered in

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<PAGE>
            connection with such basic services, (b) DW Approved Prior Costs,
            and (c) costs included in DW approved budgets, provided any budget
            item(s) specifically disapproved by DW shall not be provided unless
            and until Distributor and DW mutually agree on such costs.

            x. In-house evaluation of the effectiveness of media buying and
            other campaigns against final box office results on an occasional
            basis as requested by DW.

            xi. Coordination of the preparation and control of advertising and
            promotional materials (e.g. text, scripts, ad sales materials,
            etc.). The basic services described herein are included within the
            Distribution Fees, excluding (a) any controlled agency services
            rendered in connection with such basic services, (b) DW Approved
            Prior Costs, and(c) costs included in DW approved budgets, provided
            any budget item(s) specifically disapproved by DW shall not be
            provided unless and until Distributor and DW mutually agree on such
            costs.

            xii. To the extent made available to UIP, pass through to DW media
            buying reports and statistics.

            xiii. To the extent applicable, arrange for the development of
            secondary marketing and new product opportunities.

            xiv. Provide all publicity coordination services (including UIP
            in-house supervision). The cost of third party publicists will be
            borne by DW, subject to DW's prior approval of the designated third
            party publicist and costs thereof. The basic services described
            herein are included within the Distribution Fees, excluding (a) any
            controlled agency services rendered in connection with such basic
            services, (b) DW Approved Prior Costs, (c) costs included in DW
            approved budgets, provided any budget item(s) specifically
            disapproved by DW shall not be provided unless and until Distributor
            and DW mutually agree on such costs.

            xv. Develop and use reasonable efforts to secure national and local
            tie-in partner promotions.

            xvi. Advise DW re censorship issues and submit each Picture to
            censorship authorities.

      b.    Finance

            i. Develop and maintain profit/loss statements for all released
            Pictures per the level of information currently received as of the
            date hereof.

            ii. Provide financial/accounting reports/results per the current
            level of information and frequency of reporting as of the date
            hereof.

            iii. Code and approve expenditures and invoices. Review and approve
            purchase orders.

                                       5
<PAGE>
            iv. Prepare gross billings reports, booking confirmations, sales
            dating charts, reports detailing by Picture and by country local box
            office (in both U.S. Dollars and local currency) and theater
            admissions where available, bad debt/write-off reports and Blocked
            Currency totals to the extent applicable after the date hereof.

            v. Provide comparative performance data, such as competitive grosses
            to the extent such information is available in the relevant market
            and the provision of such information will not result in a violation
            of law.

            vi. Maintain exhibitor data, including key theater ownership, number
            of screens and seats, local applicable taxes on admission prices and
            geographical breakdown of theaters.

            vii. Collection of billings.

      c.    Operations

            i. Oversee all print duplication operations.

            ii. Manage all vendor and supplier activities.

            iii. Manage and render all services and provide all facilities and
            space in connection with the shipping, storage and inspection of
            prints and trailers in accordance with the procedures set forth in
            Exhibit A. DW shall pay for such service costs, whether incurred by
            UIP or third parties if (i) in the relevant territory, such services
            were provided by third parties as of April 15, 2001, and (ii) to the
            extent such costs do not exceed the cost previously charged by third
            parties, taking into consideration prevailing market changes.

            iv. Prepare and submit dubbing budgets on a country-by-country,
            Picture-by-Picture basis in U.S. Dollars and in local currency other
            than to the extent DW chooses to provide such services itself.

            v. Manage all dubbing, subtitling and editing of the Pictures and
            trailers thereof other than to the extent DW chooses to provide such
            services itself. If and only if DW utilizes UIP internal supervisory
            dubbing personnel, the cost thereof shall be allocated on a
            non-discriminatory basis to the applicable Picture(s).

            vi. Manage and implement all security and anti-piracy measures.

            vii. Provide all backroom services, facilities and maintenance in
            accordance with the procedures set forth in Exhibit A. DW shall pay
            for such backroom service costs, whether incurred by UIP or third
            parties if (i) in the relevant territory, such services were
            provided by third parties as of April 15, 2001, and (ii) to the
            extent such costs do not exceed the cost previously charged by third
            parties, taking into consideration prevailing market changes.

                                       6
<PAGE>
            viii. Print servicing -- store, catalog, check and track all prints,
            trailers and other advertising material, including the maintenance
            and preparation of the foregoing for shipment to and from theaters
            in accordance with the procedures set forth in Exhibit A. DW shall
            pay for such backroom service costs, whether incurred by UIP or
            third parties if (i) in the relevant territory, such services were
            provided by third parties as of April 15, 2001, and (ii) to the
            extent such costs do not exceed the cost previously charged by third
            parties, taking into consideration prevailing market changes.

            ix. Arrange for the destruction of prints and the issuance of
            certificates of destruction.

            x. Order and invoice for prints and trailers.

            xi. Manage movement of prints, trailers and other advertising
            materials in accordance with the procedures set forth in Exhibit A.
            DW shall pay for such backroom service costs (excluding UIP internal
            personnel who supervise such management), whether incurred by UIP or
            third parties if (i) in the relevant territory, such services were
            provided by third parties as of April 15, 2001, and (ii) to the
            extent such costs do not exceed the cost previously charged by third
            parties, taking into consideration prevailing market changes

5.    "American Beauty". Distributor agrees to pay to DW, within ten (10)
      business days from execution of the amended and restated DW/Universal
      Studios, Inc. Master Agreement, *** in full and complete settlement of the
      "American Beauty" reel 3 ab issue pertaining to the additional costs
      incurred to reprint the altered negative.

Except as specifically provided above, all other terms and conditions set forth
in Exhibit A shall continue in full force and effect.

                                       7

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.<PAGE>

                                   EXHIBIT "B"

                             MEMORANDUM OF AGREEMENT

           BETWEEN DREAMWORKS L.L.C. AND UNIVERSAL CITY STUDIOS. INC.

                         HOME VIDEO FULFILLMENT SERVICES

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                    Page
                                                                                                                    ----
<S>                                                                                                                 <C>
1.       GENERAL PURPOSE.........................................................................................    1

2.       VIDEOGRAMS AND PICTURES.................................................................................    1

         A.       VIDEOGRAMS.....................................................................................    1
         B.       PICTURES/DW VIDEOGRAMS.........................................................................    1
         C.       SCOPE OF FULFILLMENT SERVICES..................................................................    2

3.       MCA OBLIGATIONS.........................................................................................    3

         A.       FULFILLMENT SERVICES...........................................................................    3
         B.       PICTURE-BY-PICTURE.............................................................................    4
         C.       CREDIT.........................................................................................    4
         D.       OUT-OF-POCKET COSTS............................................................................    5

4.       CIC SERVICES............................................................................................    5

5.       MCA SERVICE FEES........................................................................................    6

         A.       DOMESTIC RECEIPTS..............................................................................    6
         B.       FOREIGN RECEIPTS...............................................................................    6
         C.       INCLUSION OF DW CONTRACTS......................................................................    6

6.       TERM....................................................................................................    7

7.       TERMINATION OF AGREEMENT................................................................................    8

         A.       TERMINATION WITHOUT CAUSE:.....................................................................    8
         B.       TERMINATION WITH CAUSE:........................................................................    8

8.       ADDITIONAL PROVISIONS...................................................................................   11

         A.       STANDARD OF CARE...............................................................................   11
         B.       REPRESENTATIONS AND WARRANTIES.................................................................   12
         C.       INSURANCE......................................................................................   13
         D.       COPYRIGHT......................................................................................   13
</TABLE>

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<PAGE>
<TABLE>
<S>                                                                                                                 <C>
         E.       OTHER ACTIVITIES...............................................................................   13
         F.       OTHER PROVISIONS...............................................................................   14

SCHEDULE I.......................................................................................................   18
SCHEDULE II......................................................................................................   28
SCHEDULE III.....................................................................................................   37
EXHIBIT "B-1"....................................................................................................   39
</TABLE>

                                       ii
<PAGE>

                                   EXHIBIT "B"

                             MEMORANDUM OF AGREEMENT
           BETWEEN DREAMWORKS L.L.C. AND UNIVERSAL CITY STUDIOS. INC.

                         HOME VIDEO FULFILLMENT SERVICES

      This agreement (which incorporates by reference herein the attached
Schedules I, II and III and Exhibit "B-1") ("Exhibit B") is entered into as of
June ____, 1995 by and between DreamWorks L.L.C., a Delaware Limited Liability
Company ("DW"), and Universal City Studios, Inc. (herein "MCA") relating to home
video fulfillment services.

      In consideration of the covenants and conditions herein contained, and for
other good and valuable consideration, the parties hereto agree as follows:

1.    GENERAL PURPOSE

DW is engaged in the business of distribution of "Videograms" (as defined below)
of "DW Pictures" (as defined below) throughout the world and, as between DW and
MCA, exercises total dominion and control over distribution thereof. MCA is
willing to render certain fulfillment services to DW in furtherance of DW's
Videogram business and accept the terms and conditions set forth herein for such
services.

2.    VIDEOGRAMS AND PICTURES

      A.    Videograms

      A "Videogram" is a videocassette, laserdisc or Digital Versatile Disc
("DVD") intended for in-home use by members of the public and physically
transported to the home for such use that is sold or rented and physically
embodies (without need for further transfer of data or further activation or
other authorization from outside the home) a "Picture" (as defined below) for
exhibition by a playback device which causes a visual image of the Picture to be
seen, in a linear fashion, as such Picture is made available by DW for video
distribution, and which Picture appears on the screen of a television receiver
or other monitor in the home. CD-ROM, CD-I products, video games, and
interactive products (including, but not limited to, DVD interactive products
containing a Picture[s]) or pictures of any type, are not Videograms.

B.    Pictures/DW Videograms

      A "Picture" is, in reference to a Videogram, a theatrical motion picture,
one or more TV programs, TV movies or TV episodic series, or a direct-to-video
motion picture (any of which may be live action, animated, short, feature length
or otherwise), except to the extent DW reserves any rights in and to such
Videogram pursuant to the terms of this Exhibit "B". DW shall designate at its
sole discretion which, if any, of its Pictures (each, a "DW Picture") will be
distributed by means of a Videogram (each, a "DW Videogram").

                                       1
<PAGE>

      C.    Scope of Fulfillment Services

      Subject to the terms of this Exhibit "B" (including, without limitation,
Paragraph 3.A. below) MCA shall have the exclusive right and obligation to
render fulfillment services for every DW Videogram which is initially
distributed as a DW Videogram during the Term or within *** following the
corresponding DW Picture's initial general U.S. theatrical release (provided
such initial U.S. theatrical release occurs during the Term), and shall be
obligated to render such services as requested by DW in accordance with and
subject to the terms of this Exhibit "B". To the extent MCA is required to
render fulfillment services in connection with any DW Videogram as provided
above, DW may elect in its sole discretion to require MCA to render fulfillment
services in connection with such DW Videogram(s) for the entire initial (as
determined by DW in its absolute discretion) distribution cycle throughout the
Territory notwithstanding expiration of the Term (in which event this Exhibit
"B" shall remain in full force with respect to such DW Videogram(s) for such
extended period). DW shall consult in good faith with MCA respecting the timing
of television releases, interactive devices containing an entire DW Picture(s)
and mail order sales, provided, however, that in the event of a disagreement,
DW's decision shall govern. MCA shall not have the right to refuse to render
fulfillment services in connection with any DW Videogram, except (i) where its
provision of such services is expressly prohibited by applicable law; (ii) where
its refusal is for censorship reasons; or (iii) in a country(ies) where neither
Cinema International Corporation B. V., a company incorporated in the
Netherlands, nor any entity which it owns or controls in whole or in part
("CIC") renders, or arranges for the rendering of, fulfillment services in
connection with Videograms. Where permitted, MCA will give timely prior notice
of its intention not to render fulfillment services in connection with a DW
Videogram in sufficient time to allow DW to render fulfillment services, or
cause fulfillment services to be rendered, for such DW Videogram(s) on or about
the dates contemplated for initial Videogram release. If MCA refuses as provided
above (or is deemed unable due to force majeure as provided in Paragraph
7.d.(ii) below) to render fulfillment services in connection with any DW
Videogram hereunder (and/or with respect to any DW Videogram embodying a DW
Picture(s) in connection with which MCA refuses to distribute pursuant to
Paragraph 2.c. of Exhibit "A") in any country(ies), DW shall have the right in
its sole discretion to withdraw any such DW Videogram(s) from MCA, and render
fulfillment services or cause fulfillment services to be rendered, for such
Videogram(s) in such countries(ies) at its risk (except as provided in Paragraph
8.D.(ii) of this Exhibit "B" with respect to loss or destruction of any DW
Videograms or related physical elements in MCA's or CIC's or any of their
"Subdistributors" (as defined below) or agents' possession or control), without
any obligation (including, without limitation, any obligation to pay any
"Service Fee" or "Service Expenses") with respect to the distribution of such DW
Videogram(s) in such country(ies) incurred after the date DW withdraws such DW
Videogram(s) from MCA. In the event DW elects to withdraw any DW Videogram(s)
from MCA by reason of MCA refusing to distribute the corresponding DW Picture(s)
pursuant to Paragraph 2.c. of Exhibit "A", DW will use commercially reasonable
best efforts to utilize materials previously approved by DW and created by MCA
and/or CIC in connection with such DW Videogram(s), and DW shall reimburse MCA
and/or CIC for their actual out-of-pocket costs for any materials DW elects to
utilize.

      D. Notwithstanding anything to the contrary in this Exhibit "B", the
parties agree that: (i) MCA shall not be required hereunder to violate any
contract existing as of the date hereof or any law, provided MCA shall give DW
written notice promptly following (1) DW's

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submission of a proposed marking plan(s) or other request for "Services" (as
defined below), but in no event later than 30 days following such submission or
request specifying in reasonable detail any requirement hereunder which would
cause MCA to violate any such existing contract (and including a copy of the
relevant provision[s] of such contract) and/or any law or (2) MCA's knowledge of
any such violation or prospective violation; (ii) if MCA receives a claim (which
MCA in its good faith business judgment believes poses a risk of a result
materially adverse to MCA) that any Services requested by DW violate any third
party rights and, as a result thereof, MCA desires to discontinue rendering such
Services, MCA will be permitted to do so until such time, if ever, as such claim
has been resolved in MCA's favor or in any other manner which does not prevent
MCA from rendering such Services and provided that, prior to discontinuing such
Services, MCA shall give DW written notice specifying in reasonable detail the
specifics of such claim (as well as a copy of any relevant pleadings, demand
letters, correspondence, etc.) and shall nonetheless continue rendering such
Services for a reasonable period of time so as to enable DW to arrange for a
commercially acceptable alternative; (iii) MCA shall not be required to cause
CIC to deliver greater services, information, data or reports (collectively,
"Services") than the comparable level of Services which CIC then renders to MCA
or to any of the "CIC Owners" (as defined below) (provided, however, that MCA
will use its best efforts to cause CIC to comply with any additional
requirements or Services requested by DW, it being acknowledged that MCA cannot
guarantee that CIC will agree to do so); and (iv) there will not be a material
reduction (on an overall basis) in the Services provided hereunder, from that
provided by CIC to MCA or any of the CIC Owners in June 1995 although the
parties acknowledge that (1) any such material reduction shall not be deemed to
be a breach of this Exhibit "B", and (2) each of the CIC Owners may themselves
render or cause to be rendered specific Services theretofore rendered by UIP
and, in such event, to the extent MCA renders or causes to be rendered such
Services to its own Videograms generally, it shall provide such Services to DW
at no additional cost.

3.    MCA OBLIGATIONS

      A.    Fulfillment Services

      MCA's fulfillment services are set forth in Schedule I attached hereto,
which together with such ancillary and miscellaneous services reasonably
necessary to facilitate the successful rendition of such services shall
constitute MCA's obligations hereunder. Notwithstanding the foregoing or
anything to the contrary in this Exhibit "B", DW retains (and reserves for
itself) the right to render, or cause to be rendered, all fulfillment services
and related activities in connection with its right to sell or otherwise
distribute DW Videograms as promotional or premium items in connection with a
so-called commercial tie-in arrangement or otherwise (including, but not limited
to, sale of DW Videograms at a fast food restaurant such as McDonald's or Burger
King, or at any other business not regularly in the business of selling or
renting Videograms, whether or not the purchaser of such DW Videogram must also
purchase one of such business' normal products); or for use in or by schools, or
community, religious or charitable institutions; or for use in so-called award
campaigns, and any amounts. received in connection therewith shall be excluded
from "Domestic Receipts" (as defined in Schedule II) and "Foreign Receipts" (as
defined in Schedule II); provided, however, that DW may in its sole discretion
delegate in writing to MCA the rendering of fulfillment services in connection
with these rights, in which event MCA shall carry out DW's instructions and any
amounts received

                                       3
<PAGE>

which are directly attributable to such fulfillment services shall be included
in Domestic Receipts or Foreign Receipts, as applicable. If MCA renders
fulfillment services per the preceding sentence in connection only with part of
a premium or promotional deal, as requested by DW, then MCA's Service Fees shall
be calculated only on that portion of the Domestic Receipts and/or Foreign
Receipts, as applicable, directly attributable to MCA's rendition of fulfillment
services. (For example, if DW enters into an agreement with McDonalds whereby DW
agrees to pick, pack and ship 4,000,000 DW Videograms of a particular DW Picture
to McDonalds, and MCA picks, packs and ships 1,000,000 DW Videograms of such DW
Picture, then in MCA's inventory to McDonalds at DW's request and on DW's
behalf, MCA's Service Fee shall be calculated on 25% of the "Receipts" [as
defined in Schedule II] from such deal.) The parties further agree that: (i) DW
will give MCA notice of its intended theatrical or non-theatrical DW Videograms
in connection with which DW will be requiring MCA to render fulfillment services
in the next three months, updated on a revolving quarterly basis; such notice
shall include courtesy notice of any such DW Videograms which DW has then
scheduled to release after such quarter; and (ii) DW shall give MCA 12-months
(or such shorter period as may be dictated by DW s release schedule) advance
courtesy notice of any intended direct-to-video DW Videogram(s) (rental and/or
sell-through) in connection with which DW will be requiring MCA to render
fulfillment services. If MCA anticipates that it will (and does) incur
additional overhead as a direct result of rendering fulfillment services in
connection with such non-theatrical DW Videograms, it must so advise DW in
writing of all such additional overhead expenses not less than 90 days in
advance thereof and, if DW thereafter commits to such number of non-theatrical
releases, DW cannot reduce the number of such non-theatrical releases without
reimbursing MCA for such additional incremental overhead; (iii) if MCA objects
to any DW promotion or DW's early television exploitation of a DW Picture(s)
which is contrary to MCA's prevailing policy for all MCA releases, then MCA
shall have the right to publicly so state that DW's policy is contrary to MCA's
policy; and (iv) MCA shall give DW, on a continuing basis, reports of other
studio's release activities to the extent the same are available and as
consistent with law and the other provisions of this Exhibit "B".

      B.    Picture-by-Picture

            (i) Such fulfillment services shall be rendered on a
Picture-by-Picture, territory-by-territory basis as requested and directed by
DW, provided that MCA shall not be required to render fulfillment services
hereunder that are in the aggregate substantially in excess of the comparable
type of services which MCA renders, or secures the rendering of by third
parties, in connection with its own or any third parties' comparable Videograms.

            (ii) Every fulfillment service MCA provides to DW in connection with
each DW Videogram hereunder will be rendered in compliance with DW's contractual
obligations to third parties of which MCA receives notice.

      C.    Credit

      MCA shall comply with DW's credit requirements respecting the DW
Videograms, and, in this regard, it is agreed that DW Home Video shall receive
credit in the form "DreamWorks Home Video" or such other form as DW designates
from time-to-time on screen and in packaging and advertising and that DW shall
have the right to designate all other credits on the

                                       4
<PAGE>

DW Videograms (and that neither MCA and/or CIC shall be entitled to receive any
credit in connection with same). Any MCA agreement with a third party for
fulfillment services for the DW Videograms shall provide that the third party
contracting with MCA is contractually bound to abide by all such credit
obligations.

      D.    Out-of-Pocket Costs

      MCA shall, unless instructed otherwise by DW, secure and pay for goods and
services from third parties in the video business on DW's behalf, provided that
(i) the costs are substantially equivalent to the costs (including the benefits
of discounts, rebates and allocations) paid by MCA on behalf of its own video
business; and (ii) are encompassed within budgets pre-approved by DW for the
services to be so rendered. DW shall reimburse MCA for such out-of-pocket costs
expended on DW's behalf as provided in Schedule II attached hereto.
Notwithstanding the foregoing, if DW enters into its own third party
arrangements per paragraph 8 of Schedule I, DW shall pay such third party
supplier(s) directly as set forth therein.

4.    CIC SERVICES

      The parties acknowledge that MCA will cause the fulfillment services in
the "Foreign Territory" (as defined below) to be rendered by CIC, and MCA hereby
guarantees and will be fully responsible for performance hereunder by CIC in
accordance with and subject to the terms and conditions set forth in this
Exhibit "B". References to CIC therefore shall refer to those services of CIC
which MCA is supplying hereunder and, where applicable, references to MCA
include CIC. With respect to the DW Videograms, MCA shall delegate to DW
whatever powers and authorities MCA is entitled to under its agreement with CIC;
provided, however, that if MCA is contractually prevented from delegating such
powers and authorities under its presently existing agreement with CIC, MCA will
exercise such powers and authorities on DW's behalf and at DW's direction or in
concert with MCA. The parties acknowledge that CIC may render fulfillment
services for the DW Videograms through the Subdistributors in the territories
and on the terms as more specifically set forth in Exhibit "B-1", attached
hereto and incorporated herein by this reference; in these instances, references
in this Exhibit "B" to "CIC" shall include all Subdistributors. Amounts received
by CIC and any such Subdistributors shall be deemed Receipts received by MCA and
there will be no "doubling up" of MCA's and CIC's "Service Fees" and/or "Service
Expenses". The parties acknowledge that, subject to DW's reasonable approval and
the provisions of Paragraph 5.B., CIC's fulfillment services may be rendered by
CIC through a co-venture(s) in some territories within the Territory (e.g., Hong
Kong, China), which co-ventures shall not be considered subdistribution. In
these instances, reference to "CIC" shall include such co-ventures for all
purposes hereunder. Accordingly, all amounts payable or credited to such
co-ventures in connection with the DW Videograms shall be included in deemed
"Foreign Receipts", and DW shall be accorded audit rights with respect to all
such co-ventures.

                                       5
<PAGE>

5.    MCA SERVICE FEES

      A.    Domestic Receipts

      Service Fees for MCA's fulfillment services are based on Domestic Receipts
from the "Domestic Territory" (i.e., United States and Canada and their
territories and possessions [including, specifically without limitation, Guam,
Midway Islands, U.S. Virgin Islands, Canal Zone, Saipan, Marshall Islands and
Puerto Rico], the Bahamas and Bermuda), as more fully set forth in Schedule II.

      B.    Foreign Receipts

      Service Fees for MCA's fulfillment services are based on Foreign Receipts
from the "Foreign Territory" (i.e., the entire world excluding only: (i) the
Domestic Territory; and (ii) South Korea, North Korea and the remainder of Asia
[excluding Japan], but only if and to the extent DW assigns distribution rights,
the right to render fulfillment services ["Service Rights"] and/or any or all of
DW's rights in connection with the DW Videograms, as DW elects from
time-to-time, in such countries to or through Lee Entertainment L.L.C. or any of
its affiliated or related parties, or any of their successors or designees
[collectively, the "Korean Shareholder"] pursuant to an agreement between DW and
the Korean Shareholder [the "Investor Agreement"]). The number of countries so
excluded may increase during the Term as such Korean Shareholder distributes or
renders fulfillment services similar to those defined hereunder for DW
Videograms in more countries in Asia (other than Japan). DW will provide MCA
with reasonable notice, if and to the extent that DW receives same, of such
additional countries, although DW's failure to do so shall not be deemed a
breach of this Exhibit "B"; provided, however, if and to the extent that MCA
and/or CIC has previously entered into arrangements, pre-approved by DW in such
additional countries, DW shall hold harmless MCA from any third party claims and
actual out-of-pocket losses (i.e., excluding internal costs, profits and/or
other consequential damages) resulting from DW's failure to provide timely
notice. In any event, any such change in countries shall be prospective only
(i.e., it will only affect DW Videograms in connection with which MCA has not
rendered fulfillment services). Notwithstanding the foregoing, if the Korean
Shareholder's distribution rights or Service Rights have terminated with respect
to a particular DW Videogram(s) or in a specified country(ies), and/or if the
Investor Agreement terminates, then to the extent the Korean Shareholder no
longer has such rights, the Foreign Territory shall then include any such
excluded country(ies) and/or MCA shall then have Service Rights with respect to
the particular DW Videogram(s), as the case may be. Notwithstanding the
foregoing, it is agreed that the Korean Shareholder may not cause fulfillment
services for DW Videograms to be rendered through another U.S. "major" motion
picture entity (currently Twentieth Century Fox, MGM, Warner Bros., Sony and
Disney), although it may engage in a co-venture with such entity(ies) for such
distribution or fulfillment services.

      C.    Inclusion of DW Contracts

      DW shall have the right to enter into contracts in its own name with
SuperComm, Rentrack and/or other intermediary distribution entities
substantially similar to SuperComm and Rentrack. All revenue directly
attributable to the actual sale of DW Videograms pursuant to such contracts,
other than a sale advance or signing bonus (both of which shall be retained by
DW and

                                       6
<PAGE>

not included in Receipts), shall be included in Domestic Receipts or Foreign
Receipts, as applicable, for the purpose of determining MCA's Service Fees.
Notwithstanding the foregoing, with respect to sale advances, MCA shall be
entitled to its Domestic Service Fee and/or Foreign Service Fee, as applicable,
with respect thereto as and to the extent such advance is earned out by the
actual sale of DW Videograms. If and to the extent required by DW, MCA will
provide fulfillment services in connection with these contracts.

      MCA shall enter into contracts with respect to DW Videograms in its own
name (subject to DW's right to approve the terms of such contracts and be
directly involved [in-person] in the negotiations of such contracts) or as
otherwise requested by DW, with retail accounts (e.g., video chains and stores),
general merchandise stores (e.g., Wal-Mart, K-Mart, supermarkets) and similarly
situated parties who are or may reasonably be expected to be Videogram customers
of MCA. If MCA fails to enter into such contracts promptly following DW's
request, DW shall have the right to enter into such contracts in DW's own name).
If and to the extent required by DW consistent with this Exhibit "B", MCA will
provide fulfillment services in connection with such contracts. Provided MCA
renders all fulfillment services required pursuant to the preceding sentence,
all revenue directly attributable to the actual sale of DW Videograms pursuant
to such contracts, other than a sale advance or signing bonus (both of which
shall be remitted to DW), shall be included in Domestic Receipts or Foreign
Receipts, as applicable, for the purpose of determining MCA's Service Fees;
provided, however, that with respect to sale advances, MCA shall be entitled to
its Domestic Service Fee and/or Foreign Service Fee, as applicable, with respect
thereto as and to the extent such advance is earned out by the actual sale of DW
Videograms. Notwithstanding the foregoing, if such contracts require MCA to bear
additional costs in connection with extraordinary fulfillment services not
customarily rendered by MCA in connection with other Videograms and MCA so
informs DW promptly upon DW's request that MCA render fulfillment services in
connection with such contracts, then DW will, at DW's election, either: (a)
reimburse MCA for such additional costs pre-approved by DW; (b) require MCA to
render fulfillment services (except only such extraordinary fulfillment
services) in connection with such contract(s); or (c) withdraw such contracts
from MCA, in which event MCA shall not be required to render fulfillment
services with respect thereto and no Service Fee shall be payable to MCA in
connection with such contracts.

6.    TERM

      "Term" means the period commencing on the date hereof and continuing
through December 31, 2001; provided that the Term may be extended for an
additional four-year period at DW's and MCA's mutual agreement confirmed by both
parties in writing no later than 90 days prior to December 31, 2001 and/or as
set forth in Exhibit "B-1". Notwithstanding the foregoing and subject to the
terms of this Exhibit "B", as and to the extent required by DW pursuant to
Paragraph 2.B. above, MCA will continue to render fulfillment services in
connection with the DW Videograms on a Picture-by-Picture and country-by-country
(or territory-by-territory) basis, following expiration of the Term.
Notwithstanding the foregoing, the Term is subject to earlier termination in
accordance with Paragraph 7 below.

                                       7
<PAGE>

7.    TERMINATION OF AGREEMENT

      A.    Termination Without Cause:

            (i)   DW and/or MCA shall be entitled to terminate this Exhibit "B"
and/or Exhibit "A" (but not Exhibit "C" and/or Exhibit "D") as DW or MCA, as
applicable, determines in its sole discretion at any time, without cause, upon
twelve months' written notice. Termination without cause must be in good faith
and after written notice to the non-terminating party specifying in good faith
the terminating party's problems, suggested solutions and following the
opportunity for both parties to meet and work together to cure such problems.
Termination under this subparagraph 7.A. will not be subject to arbitration
and/or litigation except for claims of bad faith or an alleged violation of the
next sentence. Termination without cause would not be appropriate if the reason
for the termination was: (a) solely for the economic advantage of the
terminating party (e.g., for DW to make a better deal or if MCA determined that
this is not a good deal), it being acknowledged that if DW's policies with
respect to television release and mail order sales holdbacks, premium and
promotional rights and/or interactive rights are substantially different than
MCA's policies respecting same, and such DW policies materially and
detrimentally affect MCA's business, MCA's election to terminate without cause
for such reason shall not be deemed to be solely for its economic advantage;
and/or (b) solely because DW has started (or wants to start) its own fulfillment
or an additional or expanded distribution company and/or network for the
Territory (although if DW otherwise terminates without cause, DW may thereafter
commence its own fulfillment or an additional or expanded distribution company
and/or network).

      B.    Termination With Cause:

            (i)   This Exhibit "B" (and Exhibit "A", if DW determines in its
sole discretion) may be terminated by the terminating party, either (a)
entirely; (b) in any country(ies) or "Region(s)" (i.e., South America, Western
Europe, Australia/New Zealand, Japan/Far East and Africa) where the applicable
event, breach or non-performance has occurred (and either entirely in such
country[ies] or Region[s], or only with respect to any of the DW Videogram(s)
affected by such event, breach or non-performance in such country[ies] or
Region[s]); and/or (c) in the entire Territory with respect to any DW
Videogram(s) affected by such event, breach or nonperformance, all as the
terminating party determines in its sole discretion without prejudice to any
other rights or remedies available to it, upon the happening of any of the
following circumstances:

                  (a)   If the other party shall materially breach this Exhibit
"B" (provided that the non-terminating party shall have a period of 30 days, or
such other shorter period as may be reasonably required, with respect to each
alleged breach, following written notice thereof specifying in reasonable detail
the alleged breach and the action(s) necessary to cure same and indicating the
DW Videogram(s) and country(ies) or Region(s) being terminated) to cure an
inadvertent breach; provided that no such cure shall be allowed for a second
breach of the same type as to which the breaching party has previously been
notified and given a cure period; or

                  (b)   If the non-terminating party shall make any assignment
for the benefit of creditors, file a petition for bankruptcy, be judged bankrupt
or become insolvent, or if

                                       8
<PAGE>

the other party restructures or dissolves or changes pursuant to government
order affecting a significant portion of the market.

                  (ii)  This Exhibit "B" (and Exhibit "A", if DW determines in
its sole discretion) may be terminated by DW, either (a) entirely; (b) in any
country(ies) or Region(s) where the applicable event, breach or non-performance
has occurred (and either entirely or in such country[ies] or Region[s], or only
with respect to any of the DW Videogram(s) affected by such event, breach or
non-performance in such country[ies] or Region[s]); and/or (c) in the entire
Territory with respect to a DW Videogram(s) affected by such event, breach or
non-performance, all as DW determines in its sole discretion, without prejudice
to any other rights or remedies available to it, under any of the following
circumstances:

                        (a)   If MCA ceases to be the distributor in the
Domestic Territory for its Videograms and/or if CIC ceases its distribution of
Videograms for MCA; or

                        (b)   If CIC "restructures" (i.e., if CIC ceases to be
the foreign Videogram distribution entity for any or all of the "CIC Owners"
[i.e., MCA and Paramount Pictures] or if the relative ownership interests of the
CIC Owners change); provided, however, that DW shall not be entitled to
terminate pursuant to this provision if CIC (or a successor entity) continues to
be the distribution entity for Paramount and MCA and no other U.S. major
theatrical studio or motion picture financier or distributor. If DW does not
exercise its termination right under this subparagraph (b) and MCA is permitted
to continue to render services hereunder, so long as CIC (or if it cannot
legally, then MCA) continues the services required hereunder to the maximum
extent legally possible given such event and at the level of services then
required of CIC and MCA hereunder, such performance shall be deemed consistent
with MCA's obligations hereunder, it being acknowledged that DW may nonetheless
thereafter choose to exercise its termination right under this subparagraph. The
parties hereby acknowledge that the CIC/Japan joint venture shall not be deemed
to be a "restructure" of CIC; provided, however, that if such venture changes
the relative ownership interests of the CIC Owners DW shall be entitled to
terminate hereunder.

                        (c)   If MCA: (a) fails to achieve timely and
satisfactory manufacture or shipment of DW Videograms as requested (other than
by reason of DW's delay in providing MCA with all materials necessary for such
manufacture and shipment); or (b) manufactures DW Videograms that are defective
or of unsatisfactory technical quality in excess of customary rates for
first-class Videogram manufacturers (provided that DW shall give MCA reasonably
prompt notice of any such alleged breach and/or non-performance and that MCA
shall have a fair opportunity to cure (not to exceed 30 days or such shorter
period as DW may reasonably require); or

                        (d)   If more than 3 times during any 12-month period
during the Term or an aggregate of 7 times during the Term (provided that DW
shall have given MCA reasonably prompt notice of each such alleged breach and/or
non-performance and that MCA shall have failed to cure the same within 5 days,
or such shorter period as reasonably required by DW, following DW's written
notice thereof to cure an inadvertent breach) MCA fails to:

                                       9
<PAGE>

                              (i)   Timely provide any fulfillment service
and/or marketing plans and budgets and/or other information or documentation
required under this Exhibit "B"; or

                              (ii)  Release the DW Videograms pursuant to plan
on dates and for durations for the release of the DW Videograms approved by DW
and with the content and materials provided by DW, except only if and to the
extent that any changes are required to be made on an immediate basis (i.e.,
during which MCA does not have sufficient time to obtain DW's approval) due to
censorship requirements and subject to customary force majeure events (provided,
in the event of a delay caused by a force majeure event, DW shall be permitted
to render fulfillment services, or cause fulfillment services to be rendered,
for such DW Videogram(s) as provided in Paragraph 2.C. above if DW reasonably
determines that CIC will not be available to release the DW Videograms as and
when required by DW); or

                        (e)   If CIC's exemption from certain trade laws and
regulations in the European Economic Community is not extended or renewed by the
EEC Commission or other governing body ("EEC"), with the result that CIC cannot
conduct business in the EEC in the manner and with the organizational structure
that exists as of the date of this Exhibit "B"; provided that if DW does not
exercise its termination right under this subparagraph (e) and MCA is permitted
to continue to render services hereunder, so long as CIC (or if it cannot
legally, then MCA) continues the services required hereunder to the maximum
extent legally possible given such event and at the level of services then
required of CIC and MCA hereunder, such performance shall be deemed consistent
with MCA's obligations hereunder, it being acknowledged that DW may nonetheless
thereafter choose to exercise its termination right under this subparagraph; or

                        (f)   If DW, in its sole discretion, determines that MCA
and/or CIC rendering the fulfillment services will be more expensive with
respect to out-of-pocket costs (but not necessarily with respect to Service
Fees) to DW than if DW were to render such services itself or through an
affiliated entity; or

                        (g)   If at any time during the Term any country(ies) or
Region(s) comprising the Territory shall be or become subject to a United States
Government embargo or trade restriction, and MCA fails to immediately comply
with such embargo or trade restriction as to DW Videograms; or

                        (h)   If DW exercises its termination right with respect
to this Exhibit "B" under the first sentence of Paragraph 10.b.i. of Exhibit "A"
..

                        (i)   The parties acknowledge that if and to the extent
DW terminates for cause MCA's fulfillment services hereunder, subject to
subparagraph j. below, MCA shall not be entitled to any Service Fee thereafter
with respect to any terminated territory(ies) and/or DW Videograms (i.e., if DW
terminates MCA's fulfillment services hereunder with respect to a particular
territory(ies) and/or DW Videogram(s), MCA's Service Fee will be calculated
solely on Receipts attributable to other than such terminated territory[ies]
and/or DW Videogram[s]).

                        (j)   Upon the termination or expiration of this Exhibit
"B", DW shall have the option, at its sole discretion, to either (i) require MCA
to continue to render fulfillment

                                       10
<PAGE>

services for any or all of the DW Videograms (subject to continuation of Service
Fees on such DW Videogram[s]) as and for the duration of the initial period (as
determined by DW in its absolute discretion but not to exceed 180 calendar days
following such expiration or termination date) of Videogram distribution, and
during which MCA has committed to render fulfillment services as provided in
this Exhibit "B" and in those parts of the Territory, designated by DW in its
absolute discretion, (ii) permit MCA to sell off its then-existing inventory of
DW Videograms upon the same terms and conditions as provided herein for a period
not to exceed 180 calendar days following the date of expiration or termination
hereof, (iii) require MCA to return its then-existing inventory of DW Videograms
and all related materials to DW (such return to be at DW's cost and expense in
the event of expiration, termination without cause by DW or termination for
cause by MCA; or at MCA's cost and expense in the event of termination without
cause by MCA or termination for cause by DW), (iv) immediately destroy or
demagnetize MCA's then-existing inventory of DW Videograms, at MCA's sole cost
and expense, in which event MCA shall promptly (but in no event more than 10
business days following destruction or demagnetization) furnish DW with
certificates of destruction or proof of demagnetization, as the case may be; or
(v) any combination of the above. In addition, MCA shall promptly provide DW
with a list of all outstanding orders for the DW Videograms. On expiration or
other termination of the Term, subject to Section VIII.2. of the Master
Agreement, MCA will immediately execute such quitclaims and other documents as
DW's counsel reasonably deems necessary or advisable to evidence the termination
of all MCA's rights with respect to some or all of the DW Videograms. Any
disputes with respect thereto shall be resolved as set forth in Section VIII.2.
of the Master Agreement. In the event no timely objection is made or such
objection is resolved, and if MCA fails to execute immediately any document
useful or necessary to effectuate the confirmation or implementation of the
provisions hereof, DW shall be irrevocably appointed as MCA's attorney-in-fact
for such purpose. It is acknowledged that said appointment power is coupled with
an interest.

8.    ADDITIONAL PROVISIONS

      A.    Standard of Care

      Except as otherwise specifically directed or approved in writing by DW, in
all actions under this Exhibit "B", MCA shall, and shall cause CIC to, act in
accordance with at least that standard of care that it exercises in connection
with the MCA Videograms and on behalf of each of the CIC Owners, as the case may
be. Without limiting the generality of the foregoing, MCA shall ensure that (i)
the fulfillment services MCA provides to DW hereunder will be in the aggregate
substantially equivalent in quantity, level and priorities to the fulfillment
services accorded by MCA with respect to MCA Videograms and/or other Videograms
of Pictures of similar domestic theatrical box office results (or in the case of
Pictures not released theatrically, similar format, length and public
acceptance); and (ii) the services provided by CIC (and any Subdistributor) will
be in the aggregate substantially equivalent in quantity, level and priorities
to the services accorded by CIC with respect to CIC Owners' Videograms of
Pictures of similar domestic theatrical box office results (or in the case of
Pictures not released theatrically, similar format, length and public
acceptance). In addition, the terms on which the fulfillment services for the DW
Videograms are rendered, including, without limitation, terms applicable to
collections and selection of retail accounts and release dates shall be no less
favorable than similar terms applicable to MCA Videograms. In no event shall the
Service Fees be less favorable to DW than

                                       11
<PAGE>

the service fees paid to or retained by MCA and/or CIC in connection with MCA's
(or CIC's) overall fulfillment services in the Territory for Videograms produced
by any party other than a CIC Owner, it being agreed that for the purpose of
determining whether MCA and CIC have complied with this "favored nations"
assurance, MCA's or CIC's receipt of a service fee plus any other consideration
in any form (e.g. non-monetary consideration such as other rights granted to MCA
at the time) shall be taken into account, so that the determination is an
"apples-to-apples" comparison, as much as possible, and, in any event, one
Videogram deals and output deals for any country which represents less than ***
of the receipts from Videogram distribution in the Territory for the prior year
shall be excluded. Both parties shall operate under this agreement in good
faith.

      B.    Representations and Warranties

      DW represents and warrants that:

            (i)   As of the date(s) MCA and CIC commence rendering fulfillment
services hereunder with respect to each DW Videogram, there will be no claims,
liens, encumbrances or licenses which would limit or interfere with the rights
hereby granted.

            (ii)  All masters, submasters and other materials to be delivered or
made available to MCA will be of a quality suitable for the manufacturing of
technically acceptable DW Videograms.

            (iii) Unless DW notifies MCA or CIC in writing to the contrary,
there will be no restrictions which would prevent MCA from rendering fulfillment
services for the DW Videograms consistent with the provisions of this Exhibit
"B". Except with respect to any payments that may be required as remuneration
for so-called "rental and lending" rights in the EEC and elsewhere, there will
not be any payments which must be made by MCA to any actors, musicians,
directors, writers or other persons who participated in the Pictures, or to any
union, guild or other labor organization for any right to exhibit the DW
Videograms or as compensation in connection with such exhibition or for any
other use of the DW Videograms or any of the rights therein and thereto,
provided that DW shall not be obligated to supply any performing rights license
(e.g., SESAC) which may be required in connection with exhibition of any DW
Videogram except only to the extent obtained by the CIC Owners or otherwise as
customary in the motion picture business for so-called "major" studios.

      MCA represents and warrants that:

            (i)   Neither MCA nor CIC shall suffer or permit any lien, claim,
encumbrance, pledge or mortgage to attach to any DW Videogram or to any
materials furnished by DW relating to the DW Pictures, the masters, submasters
and/or DW Videograms.

            (ii)  No material (including, without limitation, advertising,
publicity, promotional, trailers, etc.) added to the DW Videograms or used in
connection therewith by MCA or on its behalf by CIC violates or will violate,
infringes or will infringe any trademark, trade name, contract, agreement,
copyright (whether common law or statutory), patent, literary, artistic,
dramatic, personal, private, civil, property, or privacy right or "moral rights
of authors"

                                       12

***Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>

or any other right or slander or libel, any person or entity; provided that the
foregoing shall not apply to any material which is created or supplied to MCA by
or on behalf of DW.

      C. Insurance

            (i) DW Insurance: DW shall secure and maintain at its sole cost and
expense and add MCA and CIC as additional insureds with respect to the DW
Videograms under DW's customary Errors and Omissions policy pertinent to
distribution of the DW Videograms in the Territory (and each country therein).
Such policy shall be for a term, in amounts and containing a deductible and
notice provision as customarily required in the Videogram industry. All such
insurance coverage shall be primary to any other coverage maintained by MCA and
CIC. Notwithstanding the foregoing, DW may elect in its sole discretion to self
insure.

            (ii) MCA Insurance: MCA shall secure and maintain at its sole cost
and expense and add DW as an additional insured with respect to the DW
Videograms under MCA's property casualty and liability policies pertinent to
Videogram distribution or fulfillment services and all inventory and handling of
the DW Videograms and related physical elements in the Territory (and each
country therein), and cause CIC to do the same with respect to their respective
policies (provided, however, that if DW would be required hereunder to reimburse
MCA and/or CIC for such insurance costs and MCA and/or CIC can exclude DW under
the terms of the policy [which MCA and CIC hereby warrant that they can do],
then DW may in its sole discretion decline such coverage). Such policies shall
be for a term, in amounts and containing a deductible and notice provision as
customarily required in the Videogram industry. All such insurance coverage
shall be primary to any other coverage maintained by DW. Notwithstanding the
foregoing, MCA may elect in its sole discretion to self-insure. MCA shall be
fully responsible for the loss or destruction of any DW Videograms or related
physical elements in its or CIC's or any of the Subdistributors' or agents'
possession or control, unless and to the extent that the negligent or wrongful
conduct of DW and/or a third party with whom DW contracts directly pursuant to
Paragraph 5.C. results in such loss or destruction (and further provided that
such negligent or wrongful conduct is not of the type for which the MCA, CIC or
their Subdistributors or agents would be responsible under industry custom).

            (iii) Certificates of Insurance: Promptly following the execution of
this Exhibit "B", each of the parties will forward to the other party customary
Certificates of Insurance and copies of pertinent policies, if any, evidencing
the foregoing coverages.

      D. Copyright

      DW at its sole expense shall cause the DW Pictures to be protected by
copyright in any part of the Territory where Pictures may be protected by
copyright. MCA will cooperate as reasonably required by DW in connection with
actions undertaken by DW (in its sole discretion) to protect copyrights,
trademarks, etc.

      E. Other Activities

      Subject to the provisions hereof, nothing herein shall limit in any way
the right of either of the parties, CIC, or their respective subsidiaries and
affiliates to engage in business activities or endeavors of any kind or nature,
including but not limited to:

                                       13
<PAGE>

            (i) All manner of theatrical, television and merchandising
(including, but not limited to video and computer games) exploitation of
Pictures;

            (ii) Advertising;

            (iii) Publishing;

            (iv) Interactive Media;

            (v) The sale of designs, stories, characters, trademarks, trade
names or other rights or properties;

            (vi) Ancillary market activities;

            (vii) The co-financing or co-production or any other interest of any
nature in any motion picture or other property (as to which DW, in the case of
DW, does not own or control [and hence cannot accord MCA hereunder] any Service
Rights as contemplated by the terms of this Exhibit "B" in the Territory).

            (viii) The exercise of any right not expressly granted hereunder.

      F. Other Provisions.

            (i) In addition to, and without limiting, each party's indemnity
pursuant to Paragraph VIII.5. of the Master Agreement, each party ("Indemnitor")
shall also at its own cost and expense indemnify, defend and hold the other
party, its and their parents and affiliates, and their respective employees,
agents, managers, subdistributors, directors and shareholders (collectively,
"Indemnitee") harmless from and against any and all loss (exclusive of profits),
liability or expense resulting from any claim, demand or suit which may be made
or brought against Indemnitee by reason of: (i) any claim by any third party
that a DW Videogram, or any element thereof, including, without limitation, the
sound and music synchronized therewith, or any material (including, without
limitation, advertising, publicity, promotional trailers, etc.) added to the DW
Videogram or used in connection therewith, to the extent any of the above are
supplied by or at the request or direction of or on behalf of Indemnitor and
utilized by Indemnitee as instructed by Indemnitor or added by Indemnitor
without Indemnitee's knowledge, violates or infringes upon the trademark, trade
name, patent, copyright, literary, dramatic, musical, artistic, personal,
private, publicity, civil, property or contract right, right of privacy, the
moral rights of authors or any other right of any person, firm, corporation or
entity. MCA will not be entitled to any indemnity hereunder to the extent that
losses arise or result because MCA fails to withdraw any DW Videogram which is
the basis of any such claim from distribution as, when and to the extent so
instructed by DW (in which event DW will indemnify MCA and CIC against third
party breach of contract claims in connection with contracts entered into by MCA
in accordance with the terms of this Exhibit "B" and based upon such
withdrawal).

            (ii) Assignment

                  (A)   MCA may not assign this Exhibit "B" except in accordance
                        with the terms of the Master Agreement. Notwithstanding
                        the foregoing,

                                       14
<PAGE>

                        it is agreed that CIC, or a successor entity which is
                        owned and controlled solely by the CIC Owners and
                        renders fulfillment services for all of their Videograms
                        in the Foreign Territory where they have distribution
                        rights, must render fulfillment services for the DW
                        Videograms in the Foreign Territory, except as otherwise
                        set forth in this Exhibit "B".

                  (B)   DW may not assign this Exhibit "B" except in accordance
                        with the terms of the Master Agreement.

                  (C)   Any attempted assignment in contravention of the
                        foregoing shall be deemed a material breach of this
                        Exhibit "B". In the event of a permitted assignment by
                        MCA or DW to a subsidiary, MCA or DW, as applicable,
                        shall nonetheless remain primarily liable hereunder.

            (iii) Delivery. DW shall timely deliver to MCA at DW's expense all
pertinent physical materials which DW reasonably deems necessary to facilitate
MCA's exercise of its rights hereunder provided that MCA and CIC shall have no
liability whatsoever for any loss, cost or damages caused by DW's failure to
provide customary advertising and release materials in a complete and timely
manner, except and to the extent that such failure is the fault of a
MCA-provided service provider with whom DW has not directly contracted for the
service provided. DW will provide MCA with any then-available release and
advertising materials within sufficient time to enable CIC to meet DW's
advertising and release requirements hereunder. DW will deliver to MCA a fully
executed laboratory access letter for each DW Videogram in which DW has granted
MCA rights hereunder.

                                       15
<PAGE>

                                   SCHEDULE I

DW exercises total dominion and control over the distribution of DW Videograms.
MCA has agreed to render the following fulfillment services, together with such
ancillary and miscellaneous services reasonably necessary to facilitate the
successful rendition of such fulfillment services, in furtherance of same:

1. GENERAL

Prepare and recommend, in full good faith consultation with DW, distribution and
marketing plans and budgets, product pricing and sales policies and all other
elements of MCA's fulfillment service obligations hereunder as requested from
time-to-time by DW for DW's approval in sufficient time to allow DW to review
and discuss. Propose, and upon DW's timely approval, and subject to MCA having
been timely supplied with all requested pertinent materials and information,
implement street date, pricing, period of availability and applicable sales,
credit, rebate, bonus (which will be non-discriminatory to DW Videograms) and
return policies on behalf of DW Videograms. (If DW does not timely approve any
of the plans and policies in the preceding sentence and/or timely supply such
pertinent requested materials and information, MCA shall propose and implement
such plans and policies with such details and specifics as possible given the
materials and information then approved or provided by DW, to be updated by MCA
from time-to-time as further approvals are granted by DW and/or as more
materials and information are made available to MCA.) Recommendations shall be
on a Picture-by-Picture, country-by-country basis and are subject to DW's timely
approval and, after such approval, are subject to reasonable good faith changes
requested by DW.

2. THIRD PARTIES

Procure the goods and services of third parties for DW's Videograms that are
customarily utilized by MCA for fulfillment services in connection with MCA
Videograms.

3. ARTWORK

Procure, supervise and assist in the development of all artwork, ads, point of
sale and any other - sales or promotional materials. Subject to MCA having been
timely supplied with all pertinent requested materials and information and DW's
timely approval, implement the usage thereof pursuant to a marketing plan
approved by DW or as otherwise directed by DW. (If DW does not timely approve
any of the items in the preceding sentence and/or supply such pertinent
requested materials and information, MCA shall propose and implement such plans
and policies with such details and specifics as possible given the materials and
information then approved or provided by DW, to be updated by MCA from
time-to-time as further approvals are granted by DW and/or as more materials and
information are made available to MCA.)

4. MEDIA

Make media buys or make available MCA inventoried media pursuant to an approved
marketing plan on behalf of a DW Videograms.

                                       16
<PAGE>

5. COMMUNICATIONS

Set up appropriate direct communication channels and procedures between DW and
MCA, and DW and CIC (and between DW, on the one hand, and MCA and CIC's offices,
appropriate management employees and staff, on the other hand) and with
appropriate third parties rendering goods or furnishing services through MCA
and/or CIC, for and on behalf of DW Videograms. Advise officers and appropriate
management employees engaged in any aspect of MCA's home video business that the
fulfillment services are subordinate to DW's rights hereunder and that they
should fully cooperate with DW's exercise of such rights.

6. INVENTORY

Maintain secure physical inventory sites, records and procedures and furnish DW
with duplication and inventory reports to the extent the same are available and
subject to the requirements of law, in such form and with such frequency as DW
may designate and in this regard DW may tie in to CIC's and MCA's on-line
ordering and inventory system, if any, subject to the requirements of law and/or
DW, as applicable. If CIC and/or MCA are required to incur any new additional
costs (of which CIC and/or MCA notifies DW in advance) for outside personnel CIC
and/or MCA are required to engage solely in order to furnish any additional
duplication and inventory reports which are not included within the scope of
services which to be rendered by CIC and/or MCA under this Exhibit "B", CIC
and/or MCA shall not be required to furnish such additional duplication and
inventory reports unless DW pre-approves such costs and agrees to reimburse CIC
and/or MCA, as applicable, for same (subject to appropriate reduction, to be
mutually agreed, if and to the extent that such additional duplication and
inventory reports are supplied [subject to DW's prior approval] to any party
other than DW). Any dispute as to whether such additional duplication and
inventory reports are within the scope of services to be rendered by CIC and/or
MCA hereunder will be subject to dispute resolution pursuant to Paragraph 10 of
the Master Agreement.

7. PICK/PACK/SHIP

Subject to DW's prior written approval and the provisions of this paragraph, MCA
and/or CIC will render all so-called pick/pack/ship services required by DW for
DW Videograms (for which services DW shall reimburse MCA and/or CIC as the case
may be for its or their actual direct out-of-pocket costs paid to unaffiliated
third parties). DW may elect, in its sole discretion, to discontinue using such
services for all "rental" and/or all "sell-through" (as DW determines in its
sole discretion) DW Videograms; provided, however, that DW shall not have the
right to thereafter re-engage MCA and/or CIC, as applicable, to render any such
services which DW has previously discontinued hereunder unless there is a change
in the terms on which such services are supplied to MCA and/or CIC by a third
party, or to MCA by CIC. If DW elects not to use MCA's and/or CIC's
pick/pack/ship services or elects to discontinue such services, DW shall have
the right to contract directly with third parties for such services, in which
event DW shall agree: (a) to pay such third party suppliers directly; (b) to
proceed directly against such third party supplier for such third party
supplier's breach; (c) to coordinate (or instruct such third party suppliers to
coordinate) information and performance between each other as required and with
MCA and CIC; and (d) if MCA or CIC pay substantial actual excess administrative
costs as a direct result thereof, to consider in good faith contributing towards
such excess costs, provided

                                       17
<PAGE>

that DW shall not be obligated to so contribute. Notwithstanding the foregoing,
if DW elects not to utilize MCA's and/or CIC's third party pick/pack/ship
service provider(s) during any period in which MCA and/or CIC, as applicable, is
contractually required to exclusively use such service provider(s) pursuant to
an exclusivity arrangement entered into before the date of this Exhibit "B", a
copy of which MCA and/or CIC, as applicable, will provide DW prior to execution
hereof (provided, however, that notwithstanding anything to the contrary in such
written agreements, in no event will DW be bound by such agreements after
January 1, 1999) pursuant to DW's determination that such agreement does not
extend to DW, then DW agrees to indemnify and hold harmless MCA and/or CIC, as
applicable, from a claim or determination that such action by DW was in fact a
breach of MCA's and/or CIC's, as applicable, exclusivity obligations under its
agreement to a service provider. MCA will not, and will cause CIC not to, enter
into any new obligations or agreements, or extensions of any existing
obligations or agreements which restrict the right of any party to such
obligations or agreements to contract directly with DW (e.g., exclusivity
arrangements which prevent such party from contracting with DW), and all such
obligations, agreements and extensions shall specifically exclude DW by name
from any such exclusivity obligations thereunder. Notwithstanding the foregoing,
prior to DW directly entering into any third party arrangement, DW will, in
appropriate circumstances, make a good faith effort to give MCA advance notice
and consult with MCA, it being agreed that DW s failure to comply with this
sentence shall not be deemed a breach of this Exhibit "B". Subject to the terms
of the Master Agreement, to the extent either party is provided any confidential
information with respect to MCA, CIC or DW arrangements with suppliers, vendors,
or service providers, such party shall keep such information absolutely
confidential.

8. THIRD PARTY SUPPLIERS

The parties acknowledge that in connection with Videograms in connection with
which MCA or CIC render fulfillment services, MCA and CIC have entered, and may
hereafter enter, into arrangements with third party suppliers (including,
without limitation, laboratory, dubbing, duplicating, manufacturing,
advertising, marketing, publicity and packaging arrangements, including
arrangements with advertising and publicity agencies, printers, designers,
production houses and other related vendors and service suppliers)
(collectively, "Third Party Suppliers") and that, in certain instances, it may
be in DW's and MCA/CIC's mutual best interest for DW to "piggyback" on such
arrangements. Accordingly, the parties have agreed as follows:

      A. DW shall have the right (but, except as provided below, not the
obligation) to contract directly. with such Third Party Suppliers and/or to
"piggyback" on any or all of MCA's and/or CIC's arrangements with such Third
Party Suppliers, except as and to the extent precluded by law, regulation or
written agreement between such Third Party Supplier, on the one hand, and CIC
and/or MCA on the other hand, entered into, and containing a preclusive
provision effective before July, 1996 and disclosed to DW in writing before
execution of this Agreement (provided, however, that notwithstanding anything to
the contrary in such written agreements, in no event will DW be bound by such
agreements after January 1, 1999). In addition, MCA and/or CIC, as applicable,
shall disclose to DW relevant excerpts of any such written agreement except only
MCA's agreement with *** for laboratory services to the extent permissible under
such agreement, and DW shall have the right to contest the asserted preclusive
contract provision under the dispute resolution provisions of Paragraph 10 of
the Master Agreement; provided, however, that MCA shall, and shall cause CIC to,
use its best efforts to

                                       18

***Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>

cause such third party supplier(s) to contract directly with DW and/or allow DW
to "piggyback" on MCA's and/or CIC's, as applicable, arrangements with such
Third Party Suppliers, as DW elects. MCA and CIC shall disclose to DW on an
ongoing basis all material information (including, without limitation, advances,
volume discounts, laboratory and other vendor rebates and any other economic
consideration or financial advantages) regarding deals under negotiation and/or
concluded with Third Party Suppliers as such information develops, and MCA and
CIC shall also disclose to DW upon execution of this Exhibit "B" all such
information regarding deals concluded with Third Party Suppliers prior to the
date of execution of this Exhibit "B". Notwithstanding the foregoing, MCA shall
not be required to disclose any information respecting MCA's presently existing
laboratory services agreement with ***. DW may use such information in order to
assist DW in deciding whether to "piggyback" on any or all such existing and/or
future arrangements with Third Party Suppliers and, in the event DW elects to
"piggyback", to determine whether MCA and/or CIC are allocating advances, volume
discounts, laboratory and other vendor rebates and any other economic
consideration or financial advantages as provided below in Paragraph 8 of
Schedule II. Notwithstanding the foregoing, DW shall not be entitled to
confidential third party information regarding arrangements existing as of the
date of execution of this Exhibit "B"; provided, however, that MCA and CIC shall
in any event disclose the existence of all such arrangements (and excerpts
containing any confidentiality agreements contained therein), and provide to DW
as much specificity as possible consistent with such third party confidentiality
agreements, and provided further that if MCA and/or CIC refuses to supply any
such third party confidential information, the parties will (on DW's request)
submit to dispute resolution pursuant to Paragraph 10 of the Master Agreement
and the "Judge" (as defined in the Master Agreement) shall impose such
reasonable procedures (including, without limitation, redaction and in camera
proceedings) as the Judge deems necessary to accord information reasonably
necessary for the purposes indicated above while preserving the third party's
legal rights to confidentiality.

      B. In the event of any "piggyback" arrangement: (i) DW-approved costs with
respect thereto shall be advanced by MCA or CIC, as the case may be, and
recouped or repaid as Service Expenses; (ii) DW shall have the option to have
the DW Videograms aggregated with other MCA and/or CIC product for purposes of
obtaining advances, volume discounts, rebates and any other economic
consideration or financial advantages accorded to a group of Videograms and in
such event, all such advances, discounts, rebates and economic consideration and
financial advantages will be allocated to the DW Videograms according to the
terms of the arrangement in question, or if such arrangement does not provide a
means of allocation, on a fair and reasonable basis (subject to later
reconciliation if and to the extent such allocation was in retrospect unfair or
unreasonable to either party); (iii) the terms and conditions of such
arrangement with respect to DW shall be no less favorable than the terms and
conditions which pertain to the distribution of the Videograms of MCA and/or the
CIC Owners, as the case may be, and (iv) provided such arrangements have been
timely disclosed in writing to DW, then with respect to rights to Videograms
granted MCA hereunder, DW shall be bound by the terms and conditions of such
arrangements as if it were a party thereto except to the extent the third party
agrees otherwise. DW shall have the right to work and communicate directly with
said manufacturers, suppliers, vendors and service providers.

      C. Alternatively, DW shall have the right in its sole discretion to itself
obtain any or all such services by contracting directly with MCA's and/or CIC's
Third Party Suppliers or

                                       19

***Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>

through other third party arrangements; provided however, that (subject to DW's
absolute control): (i) DW shall be obligated to utilize CIC's and MCA's
advertising agency to make upfront media buys (i.e., long-term, bulk media
purchases made by CIC or MCA before how such media will be used is determined)
during any period in which all CIC Owners are contractually required to make all
of their up-front media buys with respect to advertising in the Foreign
Territory exclusively through such agency and MCA is contractually required to
make all of its up-front media buys with respect to advertising in the Domestic
Territory exclusively through such agency pursuant to an exclusivity arrangement
existing as of the date of this Exhibit "B" and on terms no less favorable than
those offered to MCA and CIC Owners (e.g., DW shall receive the same discounts),
as the case may be; (ii) DW shall be obligated to utilize CIC's third party
suppliers for physical distribution, in-store merchandising, warehousing, sales
services and exclusive customer representation through January 1, 1999, if and
to the extent that CIC is contractually obligated to deal exclusively with such
third party suppliers with respect to all Videograms for which CIC renders
fulfillment services, as applicable (and provided MCA gives DW at least six
months advance notice of such arrangements); and (iii) thereafter, DW agrees to
negotiate first with the third party suppliers listed in the immediately
preceding subparagraph (ii) with which CIC is then doing business and, in the
event DW does not engage such third party, DW shall consider in good faith (but
shall not be obligated for) reimbursing CIC for significant additional actual,
direct third party out-of-pocket costs paid as the direct result of engaging a
third party with which CIC does not do business. If DW enters into its own third
party arrangements, DW will not be entitled to "piggyback" on CIC's arrangements
for the same services unless the "piggyback" terms previously rejected by DW
thereafter materially change.

      D. If DW utilizes its own third party arrangements, DW will: (a)
coordinate (or instruct such third party suppliers to coordinate) information
and performance between each other as required and with MCA and CIC; (b) pay
such third party suppliers directly; (c) agree to proceed directly against such
third party supplier for such third party supplier's breach; and (d) if MCA or
CIC incur substantial actual excess administrative costs as direct result
thereof, consider in good faith contributing towards such excess costs, provided
that DW shall not be obligated to do so. MCA will not, and will not cause CIC
not to, enter into any new obligations or agreements, or extensions of any
existing obligations or agreements, which restrict the right of any Third Party
Supplier that is a party to such obligations or agreements to contract directly
with DW (e.g., exclusivity arrangements which prevent such party from
contracting with DW). Notwithstanding the foregoing, prior to DW directly
entering into any third party arrangement, DW will, in appropriate
circumstances, make a good faith effort to give MCA advance notice and consult
with MCA, it being agreed that DW's failure to comply with this sentence shall
not be deemed a breach of this Exhibit "B". Subject to the terms of the Master
Agreement, to the extent either party is provided any confidential information
with respect to MCA, CIC or DW arrangements with suppliers, vendors, or service
providers, such party shall keep such information absolutely confidential.

9. ORDERS

Enter into transactions and secure orders in its own name with those buyers such
as video wholesalers, retailers or jobbers with whom MCA customarily deals on
behalf of its own videos, for purchase transactions involving DW Videograms and
fulfill such orders pursuant to MCA's regular processes and procedures.

                                       20
<PAGE>

10. INFORMATION AND REPORTS

Subject to the requirements of law MCA shall provide, and cause CIC to provide,
DW with access to all "Information" (as defined below) as set forth below:

      A.    Information

            (i)   All "Information" (as defined below) as to the DW Videograms,
                  to the extent similar Information as to a CIC Owner's
                  Videograms is made available by CIC to such CIC Owner;

            (ii)  All Information as to the CIC Owners' Videograms, to the
                  extent such Information is made available by CIC to any CIC
                  Owner other than the CIC Owner that produced the picture
                  embodied in such Videogram; and all Information (including,
                  without limitation, Information about the release of other
                  Videograms in the Territory) that is made generally available
                  to the CIC Owners by CIC;

            (iii) All Information as to MCA Videograms, to the extent similar
                  Information is available to MCA with respect to the DW
                  Videograms; provided such Information: (1) shall only be
                  furnished upon written request from DW; (2) shall be
                  restricted to Information required by DW for a bona fide
                  business purpose under this Agreement (e.g., optimal release
                  scheduling, verification of most favorable terms as specified
                  in the Agreement, including terms related to services,
                  pricing, costs, comparable accounts and collection of revenues
                  therefrom, etc.); and (3) shall not be furnished to DW if in
                  MCA's good faith business judgment, such disclosure would
                  constitute a violation of any applicable law, decree,
                  government regulation, or constitute a violation of any third
                  party right.

            (iv)  All Information as to the DW Videograms that is available to
                  MCA (excluding Information as to the DW Videograms that is not
                  available to MCA, and not based upon Information as to the DW
                  Videograms available to MCA, directly or indirectly by virtue
                  of MCA's and/or CIC's fulfillment services hereunder); and

            (v)   All other Information as may be required by DW, including,
                  without limitation, MPAA, MPA and other trade association
                  publications and reports (except to the extent distribution to
                  DW is prohibited by such trade association), subject to
                  pertinent confidentiality agreements of which DW is given
                  prior written notice, irrespective of whether such Information
                  is customarily provided by CIC to the CIC Owners and/or any
                  other party; provided, however, that if CIC and/or MCA are
                  required to incur any new additional costs (of which CIC
                  and/or MCA notifies DW in advance) for outside personnel CIC
                  and/or MCA are required to engage solely in order to furnish
                  such additional information which is not included within the
                  scope of services to be rendered by CIC and/or MCA under this
                  Exhibit

                                       21
<PAGE>

                  "B", CIC and/or MCA shall not be required to furnish such
                  additional information unless DW pre-approves such costs and
                  agrees to reimburse CIC and/or MCA, as applicable, for same
                  (subject to appropriate reduction, to be mutually agreed, if
                  and to the extent that such additional information is supplied
                  [subject to DW's prior approval] to any party other than DW).
                  Any dispute as to whether such additional information is
                  within the scope of services to be rendered by CIC and/or MCA
                  hereunder will be subject to dispute resolution pursuant to
                  Paragraph 10 of the Master Agreement.

            (vi)  As used herein, "Information" shall mean all tangible (i.e.,
                  excluding only staff meetings, phone conversations and similar
                  conversations which are not reduced to written or other
                  tangible form) information, data, reports, agreements and
                  other documents including, without limitation, all outright
                  sales proposals for the outright sales of a DW Videogram,
                  direct access to the database for each DW Videogram on a
                  territory-by-territory basis, daily box office reports,
                  competitive release dates, advertising expenses, copies of all
                  outside sourced market surveys, updates and analysis, etc.,
                  whether distributed on paper, electronically and/or through
                  any other means (e.g., DW shall be put on the distribution
                  lists for such information). The Information shall be provided
                  consistent with the frequency and timeliness with which the
                  Information (or similar material) is created by, or supplied
                  to, MCA, CIC and/or the CIC Owners, or otherwise as DW shall
                  reasonably request; provided, however, that if CIC and/or MCA
                  are required to incur any new additional costs (of which CIC
                  and/or MCA notifies DW in advance) for outside personnel CIC
                  and/or MCA are required to engage solely in order to furnish
                  such Information more frequently or quickly (if possible) than
                  the Information (or similar material) is supplied to the CIC
                  Owners and such increased frequency or quickness is not
                  included within the scope of services to be rendered by CIC
                  and/or MCA under this Exhibit "B", CIC and/or MCA shall not be
                  required to furnish such Information with increased frequency
                  or quickness as requested unless DW pre-approves such costs
                  and agrees to reimburse CIC and/or MCA, as applicable, for
                  same (subject to appropriate reduction, to be mutually agreed,
                  if and to the extent that increased frequency or quickness is
                  also accorded [subject to DW's prior approval] to any party
                  other than DW). Any dispute as to whether such increased
                  frequency or quickness is within the scope of services to be
                  rendered by CIC and/or MCA hereunder will be subject to
                  dispute resolution pursuant to Paragraph 10 of the Master
                  Agreement. DW shall, on request, be supplied Information by
                  tape data transmission, without any fee if so supplied to the
                  CIC Owners, or otherwise at MCA and/or CIC's direct actual
                  out-of-pocket cost.

            (vii) Notwithstanding anything in this Section 10 to the contrary,
                  in no instance shall Information include (and MCA and CIC
                  shall not be required to provide) (i) internal financial
                  information of MCA, CIC and/or the CIC

                                       22
<PAGE>

                  Owners, or (ii) Information which is not related to the
                  exploitation and performance of Videograms or the costs of
                  distribution.

      B.    Reports

In addition to the Information set forth in subparagraph 10.A. above, to the
extent available and subject to the requirements of law, MCA shall provide
access to DW of all information, data, reports, agreements and other documents
created by MCA on a state-by-state, country-by-country and
territory-by-territory basis relating to the DW Videograms (e.g., DW shall be
put on the regular routing lists for such information) such that DW shall
receive the same concurrently with MCA (except only the internal financial
statements of MCA which do not relate to the sales or performance of DW
Videograms or costs of MCA's fulfillment services) and with such frequency as
specified herein or otherwise requested by DW, including, without limitation,
with respect to the following general categories: marketing, distributing,
financing and operations; provided, however, that if CIC and/or MCA are required
to incur any new additional costs (of which CIC and/or MCA notifies DW in
advance) for outside personnel CIC and/or MCA are required to engage solely in
order to furnish Information more frequently or quickly (if possible) than the
Information (or similar material) is supplied to the CIC Owners and such
increased frequency or quickness is not included within the scope of services to
be rendered by CIC and/or MCA under this Exhibit "B", CIC and/or MCA shall not
be required to furnish such Information with increased frequency or quickness as
requested unless DW pre-approves such costs and agrees to reimburse CIC and/or
MCA, as applicable, for same (subject to appropriate reduction, to be mutually
agreed, if and to the extent that increased frequency or quickness is also
accorded [subject to DW's prior approval] to any party other than DW). Any
dispute as to whether such increased frequency or quickness is within the scope
of services to be rendered by CIC and/or MCA hereunder will be subject to
dispute resolution pursuant to Paragraph 10 of the Master Agreement. MCA shall
use its best efforts to provide all such material in an electronic format
specified by DW. Subject to the foregoing provisions of this Paragraph 10, the
reports (or similar reports) created by, or supplied to, MCA, include, but are
not limited to, the following reports:

            (i)   Trade Reports. Monthly Trade Reports from the National
                  Association of Video Dealers and all other reports and
                  information which relate, in whole or in part, to the
                  manufacturing, distribution, advertising and/or exploitation
                  of Videograms which are supplied to MCA from any trade or
                  industry of which MCA is a member or subscriber or which
                  otherwise provides such reports and information by MCA as and
                  when received by MCA, except to the extent distribution to DW
                  is prohibited by such trade association;

            (ii)  Marketing Reports. On a monthly basis, a report setting out
                  all of the marketing terms and conditions relating to the DW
                  Videograms;

            (iii) Sales Reports. On a daily basis, information regarding sales
                  of DW Videograms on a Picture-by-Picture, country-by-country
                  basis, specifying such information reasonably requested by DW
                  including the quantity, price, rental or sell-through, and the
                  retail account;

                                       23
<PAGE>

      (iv)  Release Reports. On a weekly basis, anticipated projected
            competitive release dates shall be reported to DW;

      (v)   Cash Transfers. MCA shall advise DW in writing concurrently with the
            negotiation hereof, and on a continuing basis throughout the Term of
            this Exhibit "B", whether it has entered into any agreements and/or
            is subject to any requirements (governmental or otherwise) which
            impact the amount and timing of any money required to be transferred
            from MCA, CIC or any of their subsidiaries to DW hereunder;

      (vi)  Expenses. Reports of all expenses paid by MCA comparing budgeted and
            actual expenses on a Picture-by-Picture and country-by-country
            basis;

      (vii) Taxes/Currency Transactions. Reports of any taxes paid on DW's
            behalf and/or any currency transactions made on DW's behalf, in such
            detail and at such frequency as DW shall reasonably require to the
            extent the same is not regularly included in Payment Reports;

      (viii) Tax Rebates. MCA shall be entitled to charge remittance taxes, but
            shall be obligated to rebate to DW *** of such taxes at the end of
            the year in which they are withheld, and the remaining *** at the
            end of the following year;

      (ix)  Currency Exchange. MCA shall provide to DW a monthly (or more
            frequently as DW may from time to time require) breakdown of rate of
            exchange adjustments to Receipts (as defined in Schedule II) on a
            country-by-country basis;

      (x)   Legal. Reports or information which pertain to home video security
            interests imposed on third parties or reports of audits and the
            audit itself conducted directly or indirectly by MCA with respect to
            which MCA shall, at DW's request, include DW's Videograms; and

      (xi)  Additional Documents. MCA shall furnish, and cause CIC to furnish,
            such additional information and documents as may be required by DW,
            subject to the terms of subparagraph 10.A(vii) above.

11. COMPUTER MAIL

DW shall be "on line" on MCA's and CIC's computer systems as to information DW
is entitled to hereunder and shall have direct access to MCA's and CIC's
electronic mail system, if any, and any other system of communication between
CIC and the CIC Owners and will reimburse MCA or CIC, as the case may be, for
the allocable portion of CIC's or MCA's actual, direct, third party
out-of-pocket additional installation and hardware costs, if any, paid by CIC or
MCA as a direct result thereof, within a reasonable period following receipt of
appropriate supporting documentation; provided, however, that at the expiration
or earlier termination of the Term, CIC or MCA, as applicable, shall (at DW's
election) either: (a) give DW any hardware for which DW

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has reimbursed MCA or CIC; or (b) MCA or CIC, as applicable, shall retain such
hardware and refund to DW the amount equal to the depreciated value of such
hardware.

12. ANTI-PIRACY

MCA shall have the duty to maintain adequate security and anti-piracy measures
consistent with the highest level of security and anti-piracy measures
maintained for MCA's and CIC's own Videograms to prevent unauthorized
distribution, copying and the infringement of any of DW's rights. If DW desires
security and anti-piracy measures beyond those provided by MCA and CIC, DW may
require MCA and CIC to provide same (or DW may make its own third party
arrangements for such services) at DW's sole cost and expense. Each party shall
immediately notify the other of any unauthorized copying, distribution, sale,
exhibition and/or other exploitation of DW Videograms and of any other
infringements or violations of DW's copyrights, trademarks and/or other rights
in the DW Videograms of which such party has or should have knowledge in the
exercise of reasonable prudence. DW shall take such actions as it deems
appropriate with respect thereto. To the extent appropriate, MCA shall join in
any actions and cooperate fully in any litigation or other proceedings to
protect the DW Videograms and DW's rights. If DW elects to proceed alone
directly through its own counsel or instructs MCA to proceed alone directly
through its own counsel in DW's name, DW shall bear the costs thereof and DW
shall be entitled to retain any recovery. If DW does not elect to proceed as
provided in the prior sentence, MCA or CIC shall have the right to proceed
either in DW's name or in MCA's or CIC's name, in which event all recovery
reasonably allocated to DW Videograms shall be included in Receipts and all
reasonable actual direct third party expenses reasonably allocated to protecting
the rights in the DW Videograms shall be deemed a Service Expense. DW shall
cooperate fully therewith, and if recovery is through MPAA or MPA actions, any
financial recovery and any costs related thereto shall be applied consistent
with MPAA or MPA practices. To the extent MCA and/or CIC pays direct additional
costs related to piracy, copyright or trademark infringement or other violations
of DW's rights in the DW Videograms, such costs (to the extent pre-approved by
DW), including but not limited to anti-piracy print coding, MPA or MPAA
anti-piracy programs, and other anti-infringement activities, shall be payable
by DW. Notwithstanding the foregoing, DW may, in its sole discretion, elect not
to have the DW Pictures included in such MPAA, MPA, piracy, copyright or
trademark infringement or other actions.

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<PAGE>

                                   SCHEDULE II

Payment of all amounts actually received or credited by MCA hereunder shall be
made directly for the account of DW, or at DW's election, of a DW-related
entity, and the charging of all expenses by MCA to DW hereunder shall be made on
a periodic basis subject to and in accordance with the provisions of Schedule
III, attached hereto and incorporated herein by this reference, and which shall
govern in the event of an inconsistency with this Schedule II.

1. DOMESTIC RECEIPTS

      MCA shall collect on DW's behalf as DW's collection agent all amounts paid
or credited to MCA from any source in the "Domestic Territory" in connection
with the exploitation of the DW Videograms hereunder including, without
limitation, advances, minimum guarantees and other remittances, recoveries from
copyright infringement, trademark infringement, unfair competition and related
claims brought by MCA in DW's name (and with DW's approval), blank tape taxes or
levies, performing rights license fees, and rental and lending right levies or
royalties paid or credited to MCA from any source (and not otherwise payable to
third parties) (collectively, "Domestic Receipts"). Except as provided in
Paragraph 3.A of Exhibit "B" to which this Schedule II is attached, Domestic
Receipts shall not include any amounts payable or credited to DW as a result of
any agreements and arrangements made directly between DW and any mail order
entity or any entity that causes the DW Videograms to be distributed directly to
members of the public for in-home use by electronic transmission; nor shall
Domestic Receipts include any amounts payable or credited to DW as a result of
any promotional or commercial "tie-in" agreement entered into by DW.

2. DOMESTIC SERVICE FEES

      DW shall pay MCA the following (in the order listed) domestic service fees
("Domestic Service Fee") of an amount equal to:

      A. *** of 100% of Domestic Receipts paid to, or credited against
uncontested outstanding sums owed to MCA, by DW in any contract year until
Domestic Receipts equal ***;

      B. *** of 100% of Domestic Receipts paid to, or credited against
uncontested outstanding sums owed to MCA, by DW in any contract year from the
point that Domestic Receipts exceed *** until Domestic Receipts equal ***; and

      C. *** of 100% of Domestic Receipts paid to, or credited against
uncontested outstanding sums owed to MCA, by DW in any contract year from the
point that Domestic Receipts exceed ***.

      D. In no event shall the Domestic Service Fee be less favorable to DW than
the service fees paid to or retained by MCA and/or CIC in connection with MCA's
(or CIC's) overall domestic fulfillment services in connection with Videograms
produced by any party other than a CIC Owner, it being agreed that for the
purpose of determining whether MCA and CIC have complied with this "favored
nations" assurance, MCA's or CIC's receipt of a service fee

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plus any other consideration (in any form, e.g., non-monetary consideration such
as other rights granted to MCA or CIC at the time) shall be taken into account,
so that the determination is an "apples-to-apples" comparison, as much as
possible and, in any event, one-picture deals shall be excluded.

3. DOMESTIC CONTRACT YEAR

      For the purpose of calculating Domestic Service Fees, Domestic Receipts
shall be aggregated and calculated for each "contract year" (with the first
"contract year" being the one year period commencing upon the first day of the
accounting month (the "Domestic Commencement Date") in which the release of a DW
Videogram occurs hereunder and each subsequent "contract year" being the one
year period commencing on the next anniversary of the Domestic Commencement
Date), such that at the beginning of each contract year the fee payable to MCA
pursuant to the schedule in Paragraph 2 above ("Domestic Schedule Percentage")
shall be calculated by again commencing with Paragraph 2.A. Notwithstanding the
foregoing (i) all post-Term services shall be deemed to occur in the last
contract year to begin during the Term, and (ii) if the last contract year of
the Term is a partial year, the fee payable to MCA for Domestic Receipts from
such partial year as well as Domestic Receipts from DW's distribution of any of
the DW Videograms beyond the Term per Paragraphs 2.C. and 6 of Exhibit "B" shall
be calculated at the lesser of *** or the otherwise applicable Domestic Service
Fee rate under Paragraph 2 above. As used in this paragraph, Domestic Receipts
shall be based on actual receipt by MCA on behalf of DW for purposes of
measuring when the Domestic Receipts have been derived.

4. FOREIGN RECEIPTS

      MCA shall collect on DW's behalf as DW's collection agent, all amounts
paid or credited to MCA from any source in the "Foreign Territory" (as defined
in Exhibit "B") in connection with the exploitation of DW Videograms hereunder,
including, without limitation, advances, minimum guarantees and other
remittances or credits from "Subdistributors" (as defined in Exhibit "B-1")
("Subdistributor Revenue") recoveries from copyright infringement, trademark
infringement, unfair competition and related claims brought by MCA in DW's name
(and with DW's approval); and blank tape taxes or levies, and rental and lending
right levies or royalties received by or credited to MCA from any source (and
not otherwise payable to third parties) (collectively, "Foreign Receipts").
Except as provided in Paragraph 3.A. of Exhibit "B", Foreign Receipts shall not
include any amounts payable or credited to DW as a result of any agreements and
arrangements made directly between DW and any mail order entity or any entity
that causes DW Videograms to be distributed directly to customers by electronic
transmission; nor shall Foreign Receipts include any amounts payable or credited
to DW as a result of any promotional or commercial "tie-in" agreement entered
into by DW.

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5.    FOREIGN SERVICE FEES

      DW shall pay MCA the following (in the order listed) foreign service fees
("Foreign Service Fee") of an amount equal to:

      A. *** of 100% of Foreign Receipts paid to, or credited against
uncontested outstanding sums owed by, DW in any contract year until Foreign
Receipts equal ***;

      B. *** of 100% of Foreign Receipts paid to, or credited against
uncontested outstanding sums owed by, DW in any contract year from the point
that Foreign Receipts exceed *** until Foreign Receipts equal ***; and

      C. *** of 100% of Foreign Receipts paid to, or credited against
uncontested outstanding sums owed by, DW in any contract year from the point
that Foreign Receipts exceed ***.

      D. In no event shall the Foreign Service Fee be less favorable to DW than
the service fees paid to or retained by MCA and/or CIC in connection with MCA's
(or CIC's) overall foreign fulfillment services in connection with Videograms
produced by any party other than a CIC Owner, it being agreed that for the
purpose of determining whether MCA and CIC have complied with this "favored
nations" assurance, MCA's or CIC's receipt of a service fee plus any other
consideration (in any form, e.g., non-monetary consideration such as other
rights granted to MCA or CIC at the time) shall be taken into account, so that
the determination is an "apples-to-apples" comparison, as much as possible and
in any event, one-picture deals shall be excluded.

6.    FOREIGN CONTRACT YEAR

      For the purpose of calculating Foreign Service Fees, Foreign Receipts
shall be aggregated and calculated for each "contract year" (with the first
"contract year" being the one year period commencing upon the first day of the
accounting month (the "Foreign Commencement Date") in which the first Foreign
Videogram release of a DW Videogram occurs hereunder and each subsequent
"contract year" being the one year period commencing on the next anniversary of
the Foreign Commencement Date), such that at the beginning of each contract
year, the fee payable to MCA pursuant to the Schedule in Paragraph 5 above
("Foreign Schedule Percentages") shall be calculated by again commencing with
Paragraph 5.A. Notwithstanding the foregoing, (i) all post-Term services shall
be deemed to occur in the last contract year to begin during the Terms, and (ii)
if the last Foreign contract year of the Term is a partial year, the fee payable
to MCA for Foreign Receipts from such partial year as well as Foreign Receipts
from DW's distribution of any of the DW Videograms beyond the Term per
Paragraphs 2.C. and 6 of Exhibit "B", shall be calculated at the lesser of ***
or the otherwise applicable Foreign Service Fee rate under Paragraph 5 above. As
used in this paragraph, Foreign Receipts shall be based on actual receipt by MCA
on behalf of DW for purposes of measuring when the Foreign Receipts have been
derived.

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7.    SERVICE FEE PAYMENTS

      The Domestic Service Fee and Foreign Service Fee shall be herein
collectively referred to as the "Service Fee". No Domestic Service Fee or
Foreign Service Fee shall be payable to MCA until concurrent payment to DW of
the Domestic Receipts and/or Foreign Receipts (collectively, "Receipts"), as
applicable, upon which such Service Fee is charged, provided however that MCA
may deduct and retain its Domestic Service Fee and/or Foreign Service Fee, as
applicable, payable hereunder concurrently with the payment to DW of the
Receipts upon which such Service Fee is charged. In the event of any adjustment
as provided in Paragraphs 3, 4 and 6 above, the Domestic Service Fee and/or
Foreign Service Fee, as applicable, shall be similarly re-calculated and
adjusted. It is understood that MCA and/or CIC is entitled to recoup Service
Expenses out of amounts otherwise payable to DW which recoupment shall not
affect their rights to Domestic Service Fees or Foreign Service Fees hereunder.

8.    SERVICE EXPENSES

      A. MCA shall advance all DW approved Domestic Expenses and Foreign
Expenses (collectively, "Service Expenses") (except only that MCA shall not be
required to advance monies payable to a third party supplier or service provider
with whom DW contracts directly in exercise of its rights under Paragraph 7 of
Schedule I) and shall be entitled to be reimbursed for same on a monthly basis
(following payment of the Service Fees). If MCA changes its accounting
methodology with respect to its own pictures or those of any third party, DW may
elect to have the Service Expenses accounted on the basis of MCA's revised
accounting methodology. Subject to Paragraph 9 below, in computing Service
Expenses, if MCA receives or is credited with any advances, volume discounts,
laboratory or other vendor rebates, or any other economic consideration or
financial advantage of any kind or nature tied directly or indirectly to the
manufacture of or fulfillment services for Videograms or to the DW Videograms,
or expenses incurred in connection therewith (including, without limitation, any
cash discounts for accelerated payment or volume or combined volume discounts),
such advances, volume discounts, laboratory or other vendor rebates and any
other economic consideration or financial advantage shall be included in
Receipts, or applied as a reduction of Service Expenses, as the case may be,
allocated to the DW Videograms according to the terms of the agreements in
question, or, if such agreements do not provide a means of allocation, on a fair
and reasonable basis (subject to later reconciliation if and to the extent such
allocation was in retrospect unfair or unreasonable to either party). If and to
the extent that DW has reimbursed MCA in excess of amounts actually advanced by
MCA for such Domestic Expenses and/or Foreign Expenses, such excess payment
shall be rebated to DW on a quarterly basis. MCA shall reasonably promptly
disclose in writing when it receives such advances, volume discounts, laboratory
or other vendor rebates and/or any other economic consideration or financial
advantage.

      B. "Service Expenses" shall mean all actual direct out-of-pocket costs and
expenses "accrued" (i.e., *** after being accrued, provided such costs and
expenses are paid no more than *** thereafter, or otherwise when paid, by MCA
and/or CIC in connection with its fulfillment services for the DW Videograms),
in accordance with, and subject to, all of the terms and limitations of this
Exhibit "B". Service Expenses paid in connection with both DW Videograms and
other Videograms will be allocated in a manner agreed by the parties. Included
in Service Expenses are the following costs:

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            (i) Manufacturing and duplication, including raw stock and shells,
boxes, printing of box wraps and stickers, anti-copying devices and/or signal
encoding, shrink-wrapping, subtitling, and dubbing, shipping, packouts,
holograms, mastering, insertions and similar costs;

            (ii) Advertising, promoting, and publicizing the DW Videograms in
publications, radio and television, previews, P.O.P. materials, displays and all
other media, including co-op advertising;

            (iii) Freight, insurance (provided, however, that if DW would be
required hereunder to reimburse MCA and/or CIC for such insurance costs, and MCA
and/or CIC can exclude DW under the terms of the policy, DW may in its sole
discretion decline such insurance), and storage;

            (iv) Applicable payments, if any, to performing right societies
(e.g., SESAC) which are remitted by MCA on DW's behalf;

            (v) Prosecution, settlement and/or defense of copyright
infringement, trademark infringement, unfair competition and related claims and
litigation, provided that all amounts recovered pursuant to any of the
aforementioned shall be included in Domestic Receipts or Foreign Receipts as
provided in Paragraphs 1 and 4 above; and

            (vi) Permit fees and sales and other taxes on goods, however
denominated, censorship charges, duties, tariffs, customs and similar charges,
and DW-approved sales performance related rebates and/or DW-approved discounts
to customers.

      C. Notwithstanding anything in subparagraphs (i) through (vi) above, none
of the following shall constitute Service Expenses or otherwise be paid by DW to
MCA: (a) expenses associated with delinquent payments by MCA to suppliers,
vendors or other service providers (e.g., interest or finance charges); (b)
so-called "overhead" expenses or other indirect costs (including, without
limitation, salaries and travel expenses) of MCA other than such costs paid
solely with respect to DW Videograms which DW has pre-approved in writing; (c)
expenses associated with tradeshows, film festivals, conventions and similar
events, except that incremental increases in such costs over those paid in prior
years (to the extent pre-approved in writing by DW and attributable to DW
Videograms) shall be Service Expenses hereunder; and (d) any other expenses
(other than actual direct out-of-pocket costs and expenses otherwise
reimbursable under this subparagraph 5.d. as set forth above) of any kind,
including, without limitation, collection costs and MCA's share of trade
association dues and assessments (subject to an appropriate reduction, to be
mutually agreed, if and to the extent any information including, without
limitation, publications or reports from such trade associations are not
supplied to DW hereunder per subparagraph 10.B.(i) of Schedule I, and provided
further that DW may elect in any event to become a member of any such trade
association(s) and pay such dues and assessments directly to the appropriate
association(s), in which event DW shall not be responsible for any share of
MCA's dues and assessments to such association(s)), except that incremental
increases in such costs over those paid in prior years (to the extent
pre-approved by DW and solely attributable to the DW Videograms) shall be
Service Expenses hereunder.

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<PAGE>

9.    ADVANCES/REBATES/UNALLOCATED AMOUNTS

      MCA shall promptly disclose in writing and credit to DW all advances,
volume discounts, laboratory and other vendor rebates and any other economic
consideration or financial advantages accorded MCA and/or CIC by a third party
as a direct or indirect result of MCA's and/or CIC's fulfillment services or to
the DW Videograms whether or not specifically allocated to DW Videograms,
including any amounts received for or in connection with the distribution of
Videograms including DW Videograms which are not specifically allocated or
credited to the distribution of specific Videograms consistent with Schedule
I.8. All such advances, volume discounts, laboratory and other vendor rebates
and other economic consideration or financial advantages will be allocated to
the DW Videograms according to the terms of the agreements in question, or, if
such agreements do not provide a means of allocation, on a fair and reasonable
basis (subject to later reconciliation if and to the extent such reconciliation
was in retrospect unfair or unreasonable to the other party). DW shall have
access to any agreement which provides for any such advance, volume discount,
laboratory or other vendor rebate or other economic consideration or financial
advantages, subject to the conditions set forth in Paragraph 8 of Schedule I
with respect to third party suppliers]. No rebates which relate, in whole or in
part, to the DW Videograms shall be granted to any third party which renders
services or suppliers without DW's specific written consent.

10.   CURRENCY

      Other than amounts which cannot legally be remitted from the country in
which they are earned ("Blocked Currency"), all amounts payable hereunder shall,
as DW elects, be paid in either U.S. currency or the currency of the country
where such Domestic Receipts or Foreign Receipts are received. In the event that
DW elects to be paid such amounts in U.S. currency, the amounts shall be
converted, using the same exchange rate for Service Expenses and Foreign
Receipts, on specified dates of which CIC and/or MCA shall notify DW on an
ongoing basis and which shall be the same dates and rates used for the CIC
Owners' Videograms; provided, if the amounts are not converted directly from the
foreign currency in which they were received to U.S. currency (i.e., if
intermediary conversion to other currency(ies) is utilized), then MCA shall bear
all risk from fluctuation of such intermediary currencies. Notwithstanding the
above, DW shall have absolute approval over any currency hedging contracts
applicable to the DW Videograms entered into by CIC. DW shall have the right to
enter into foreign currency hedging contracts with respect to amounts due
hereunder. In the case of Blocked Currency, DW shall have the right to elect
whether to receive some or all of the payment which may be due in such Blocked
Currency, in the country where it is located. DW may use such amounts to pay MCA
for any Service Expenses, Domestic Service Fee or Foreign Service Fee or other
amounts due hereunder on the DW Videograms in the country of such Blocked
Currency or make any other arrangements with respect thereto as are available to
MCA, CIC or the CIC Owners. To facilitate this, MCA shall advise DW in writing
as to Foreign and Domestic Receipts, if any, which are in Blocked Currency and
MCA shall, at the written request of DW (subject to any and all limitations,
restrictions, laws, rules and regulations affecting such transaction) deposit
into bank designated by DW in the country involved, or pay to any other party
designated by DW in such country, any Blocked Currency which would have been
payable to DW hereunder. Such deposits or

                                       31

<PAGE>

payments to or for DW shall constitute due remittance to DW, and MCA shall have
no further interest therein or responsibility therefor. At DW's election, CIC
will convert such deposits or payments into U.S. dollars to the same extent and
in the same manner and proportion that CIC is able to convert such funds for the
CIC Owners' Videograms.

11.   ACCOUNTING

      A. MCA shall furnish, and shall cause CIC to furnish, to DW, on a monthly
basis, within *** from the end of each MCA accounting month, revenue and payment
detail reports (the "Payment Reports") in a format approved by DW, which format
may change from time to time in DW's sole discretion (provided, however, that if
CIC and/or MCA are required to incur any new additional costs (of which CIC
and/or MCA notifies DW in advance) for outside personnel CIC and/or MCA are
required to engage solely in order to furnish any Payment Reports which are
re-formatted to DW's specifications and which are not included within the scope
of services which DW reasonably expects to be rendered by CIC and/or MCA under
this Exhibit "B", CIC and/or MCA shall not be required to furnish such
re-formatted Payment Reports unless DW pre-approves such costs and agrees to
reimburse CIC and/or MCA, as applicable, for same (subject to appropriate
reduction, to be mutually agreed, if and to the extent that the format of such
re-formatted Payment Reports is used for similar reports [subject to DW's prior
approval] to any party other than DW). Any dispute as to whether such
re-formatted Payment Reports are reasonably expected to be within the scope of
services to be rendered by CIC and/or MCA hereunder will be subject to dispute
resolution pursuant to Paragraph 10 of the Master Agreement. Each Payment Report
shall reflect, on both a monthly and cumulative basis, the following information
relating to all Videograms for which MCA renders fulfillment services, with such
information separately provided for DW Videograms for each territory in which
the DW Videograms are distributed: the wholesale price derived per Videogram
during such month and the number of DW Videograms sold or otherwise distributed
during such month; all information relating to MCA receivables and actual
receipts from the DW Videograms hereunder, including receipts from
Subdistributors and Foreign Intermediary Entities; all information relating to
all costs and expenses payable and actually paid in connection with MCA's and
CIC's manufacture of, and fulfillment services for, Videograms (including for DW
Videograms, the Service Expenses); and a listing of outstanding inventory of DW
Videograms on a title-by-title basis. Each Payment Report shall be certified as
correct by MCA's and CIC's chief financial officer. All Service Expenses and
Receipts shall be fully crossed among all DW Videograms hereunder for purposes
of recoupment by MCA of its advances of Service Expenses hereunder; in no event
will Service Expenses and Receipts be crossed between this Exhibit "B" and
Exhibit "A" (except only if and to the extent that DW fails to timely make any
payments required hereunder). Payment Reports may be corrected, adjusted, or
supplemented by MCA from time-to-time to reflect adjustments, uncollectible
amounts, errors, etc. No Payment Reports need be rendered for any accounting
period during which there are no Receipts or Service Expenses to be reported.

      B. Concurrently with its receipt of each Payment Report, MCA will pay or
cause to be paid to DW amounts indicated thereon to be due to DW. All payments
hereunder to DW or MCA, as the case may be, shall be made by wire transfer or
such other method as may be approved by DW and MCA. Payments to DW shall be made
to DW or any entity designated from time-to-time by DW. Alternatively, at DW's
election, such payment shall be made directly by MCA International, B.V. in the
Netherlands to a DW subsidiary in the United Kingdom or such other country as DW
may designate, provided that any additional remittance or other taxes

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paid by MCA and resulting from payment being so made shall be a Service Expense,
in which event MCA will rebate to DW *** of such tax credits at the end of such
year and the remaining *** at the end of the following year.

      C. Interest shall be charged on any amount which is not paid when payable
hereunder by either party at *** from time-to-time in effect. Such interest
shall be paid at the same time as the associated principal payment shall be
made.

12.   ACCESS AND AUDIT RIGHTS

      A. MCA shall keep, and shall cause CIC to keep, full, true and complete
records and books of accounts together with all supporting vouchers and
documents relating to the rendition of MCA's fulfillment services, including
without limitation, the manufacture, sales, promotion, duplication, printing,
packaging, shipping and handling of DW Videograms and DW's distribution of DW
Videograms within the Territory (collectively, "Records"), and maintain, and
cause CIC to maintain, for a period of seven years following DW's receipt of a
Payment Report all Records relevant thereto. Notwithstanding the foregoing, MCA
shall in any event, and shall cause CIC in any event to, keep and maintain (or
deliver to DW) all of the above mentioned materials for any longer period
required to complete an open audit of DW of which DW gives notice or in the
event of an unresolved dispute with any participant or third party related to a
DW Videogram of which DW gives notice.

      B. MCA grants DW and its agents, employees and representatives the rights,
from time-to-time at all times during the Term and for a period of *** after the
latter of the expiration of the Term and the delivery of the last Payment Report
hereunder, with reasonable prior notice to MCA and at all reasonable hours and
with reasonable frequency, to examine, audit and take excerpts from and make
copies of any such records, invoices, book of account, computer or data base
information, and all other documents or correspondence, related to the provision
of fulfillment services for DW Videograms and/or to the calculation of amounts
due to or from DW hereunder; provided, however, transactions will not be subject
to audit more than five years after delivery to DW of the Payment Report in
which such transactions are initially reported. Notwithstanding the foregoing,
DW shall only be entitled to confidential third party information to the extent
the same is reasonably necessary to resolve an issue(s) under audit; if MCA
and/or CIC refuses to supply any such information, the parties will submit to
dispute resolution pursuant to Paragraph 10 of the Master Agreement and the
"Judge" (as defined in the Master Agreement) shall impose such reasonable
procedures (including, without limitation, limiting disclosure to auditors,
redaction and in camera proceedings) as the Judge deems necessary to accord
information reasonably necessary to conduct the audit while preserving
confidentiality. DW's audit rights hereunder shall include the right to examine
and inspect all inventory of DW Videograms in the possession or control of MCA,
CIC and any Subdistributors and/or the duplication, printing and storage
facilities used by MCA. All such audits shall, except as otherwise provided in
Paragraph 12.C. below, be at DW's sole cost and expense.

      C. If an audit discloses any inaccuracies or discrepancies in MCA's and/or
CIC's books and records with respect to the fulfillment services or the
calculation of amounts payable to or from DW, MCA and/or CIC, as applicable,
shall cure such inaccuracies and discrepancies within thirty (30) days following
notice thereof. In the event an audit shall uncover a deficiency

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as of the end of the period audited, or for any period of at least six months
during the period audited, in each case equal to or greater than *** in any
account owed at any time by MCA and/or CIC, as applicable, to DW hereunder, MCA
and/or CIC, as applicable, shall immediately pay DW (i) said deficiency in full;
and, (ii) all costs and expenses in connection with such audit including,
without limitation, hotel and airfare expenses.

      D. In the event of an audit, MCA and/or CIC, as applicable, shall provide
DW and its agents, employees and representatives with reasonable and suitable
physical conditions in which to conduct such audit, including, without
limitation, a desk and chair, adequate lighting and suitable ventilation, as
well as a copying machine with which to make copies. MCA shall cause each
Subdistributor to comply with the foregoing.

      E. Each of MCA, CIC and DW shall use reasonable efforts to conduct any
audit in an expeditious manner.

      F. MCA/CIC Owned Businesses: With respect to the provision of fulfillment
services hereunder, any agreement with any supplier or other business entity
owned in whole or in part, directly or indirectly, by MCA and/or CIC or any CIC
Owner ("Owned Business") shall be fair and reasonable in marketplace and on an
arm's-length basis. MCA shall use its best efforts to audit and monitor any
agreement with an Owned Business to ensure that DW is not prejudiced in any
fashion as a result of such business being owned by MCA, and shall supply to DW
all information with respect thereto supplied to any other party for whom MCA
renders Videogram fulfillment services and/or the CIC Owners, as the case may
be, including the results of any such audit or procedure.

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>

                                  SCHEDULE III

                              HOME VIDEO ACCOUNTING
                                     9/11/96

Domestic (including Canada)

      The procedure would be as follows:

      1. On the first business day after the *** of each month, MCA will pay to
DW, or DW will pay to MCA, an amount based on:

      -     *** of amounts first due to MCA from customers that month from the
            initial distribution of a video (i.e., excluding catalogue sales),
            less

      -     *** of expenses first payable by MCA that month.

      2. On the first Friday (assuming it's a business day, or the first
business day thereafter if it's not) following the first Monday after the close
of each accounting month, MCA will pay to DW any net positive amount, or DW will
pay to MCA any net negative amount, based on:

      -     *** of cumulative actual receipts by MCA (as determined from
            information available and recorded in the ordinary course) through
            the preceding accounting month for both initial distribution and
            catalogue sales net of receipts included in prior accountings (i.e.,
            receipts are continuously trued up on a cumulative basis on the
            basis of ordinary course information), less

      -     *** of cumulative expenses paid by MCA (as determined from
            information available and recorded in the ordinary course) through
            the preceding accounting month net of expenses included in prior
            accountings (i.e., expenses are continuously trued up on a
            cumulative basis on the basis of ordinary course information).

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<PAGE>

      3. Returns during any month will be netted against cumulative receipts
through that month. Credits for coop advertising will reduce receipts due when
issued. The parties will negotiate in good faith and agree upon reasonable bad
debt reserves if necessary based on actual experience (the failure to agree
being subject to dispute resolution).

Foreign

      Because different territories have different due dates and the payment
pattern varies widely, we will use the following (which reflects MCA's
averages):

      1. On the 25th of each month (assuming it's a business day, or the first
business day thereafter if it's not), MCA will pay to DW any positive amount, or
DW will pay to MCA any negative amount, based on:

      -     The sum of (i) *** of amounts first due to MCA for that month, plus
            (ii) *** of amounts first due to MCA for the immediately preceding
            month, minus (iii) the extent to which receipts included in prior
            accountings for cumulative amounts due MCA through the second
            preceding month exceed cumulative actual receipts through the
            immediately preceding month (as determined from information
            available and recorded in the ordinary course) for such amounts due
            through such second preceding month (i.e., cumulative amounts
            received would be continuously trued up to cumulative amounts due
            through the second preceding month), less

      -     The sum of (a) *** of expenses first payable by MCA that month, plus
            (b) *** of expenses first payable by MCA during the immediately
            preceding month, minus (iii) the extent to which expenses included
            in prior accountings for cumulative expenses first payable by MCA
            through the second preceding month exceed cumulative actual expenses
            paid by MCA through the immediately preceding month (i.e.,
            cumulative expenses paid would be continuously trued up to
            cumulative expenses first payable through the second preceding
            month).

      2. To the extent relevant, returns during any month will be netted against
cumulative receipts through that month. The parties will negotiate in good faith
and agree upon reasonable bad debt reserves if necessary based on actual
experience (the failure to agree being subject to dispute resolution).

                                       36

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>

                                  EXHIBIT "B-1"

                             MEMORANDUM OF AGREEMENT
           BETWEEN DREAMWORKS L.L.C. AND UNIVERSAL CITY STUDIOS. INC.

                                 SUBDISTRIBUTORS

DW intends to enter into subdistribution agreements as it determines in its sole
discretion in those markets and territories in the "Foreign Territory" (as
defined in Exhibit "B") in which it does not distribute the DW Videograms. With
respect to such subdistribution agreements, it is agreed as follows:

      1. DW shall select, and may contract in its own name with, each
subdistributor (and, in this regard, DW agrees where appropriate and in DW's
sole discretion to utilize the subdistributors which are pre-approved in
Paragraph 4 below and which CIC uses in the applicable territory(ies)).

      2. If and to the extent required by DW, CIC will render certain
fulfillment services (e.g., manufacturing and shipping DW Videograms, collecting
monies on DW's behalf, etc.) in connection with such subdistribution agreements,
subject in all instances to the provisions of Exhibit "B", including provisions
related to expiration or termination of the Term. For each subdistribution
agreement in connection with which CIC renders fulfillment services, CIC shall
be entitled to a Service Fee based upon Subdistributor Revenue in the amount of
*** of the applicable Foreign Schedule Percentages (and MCA shall not be
entitled to any Service Fee in connection with same); provided, however, that
Foreign Receipts and Subdistributor Revenue will be aggregated in any event for
purposes of calculating the Foreign Receipts breakpoints for the Foreign
Schedule Percentages in Paragraph 5 of Schedule II of Exhibit "B".

      3. Notwithstanding the expiration of the Term as set forth in Exhibit "B"
(but not DW's earlier termination thereof for cause as otherwise provided in
Exhibit "B"), but subject to the first sentence of Paragraph 2 above, the terms
and conditions of Exhibit "B" and this Exhibit "B-1" shall continue to apply to,
and for such limited purpose only, the Term shall be extended with respect to
one or more DW Videograms, for such additional period of time as may be required
(and solely to the extent required) by applicable subdistribution agreements
entered into pursuant to this Exhibit "B-l".

      4. List of Approved Subdistributors, Territories and terms of
subdistribution:

      [ ]

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>

                                  SCHEDULE B-TC

      AMENDED AND SUPPLEMENTAL TERMS AND CONDITIONS APPLICABLE TO EXHIBIT B

1.    Territory. "Territory" as defined in Exhibit B refers to the Domestic
      Territory and the Foreign Territory.

      a. "Domestic Territory" means the entire territorial United States and its
      possessions, territories and commonwealths, including the U.S. Virgin
      Islands, Puerto Rico, Guam, and the former U.S. Trust Territories of the
      Pacific Islands, including the Carolina Islands, the Marshall Islands and
      the Mariana Islands, Saipan and American Samoa; the Dominican Republic,
      the British Virgin Islands, the Bahamas, Bermuda, Saba Island, St.
      Eustatius Island, St. Kitts Island, St. Martin Island, St Maarten Island;
      and Canada and its possessions and territories.

      b. "Foreign Territory" means the entire world, excluding only:

            i. The Domestic Territory;

            ii. Republic of South Korea and the Democratic People's Republic of
            North Korea to the extent DW assigns the right to render Fulfillment
            Services in connection with DW Videograms in such countries to or
            through DW's Korean shareholder or any of its Affiliates, or any of
            their successors or designees; and

            iii. Japan or the "German Territory", as DW may elect. The Federal
            Republic of Germany, the Republic of Austria and German-language
            rights in Switzerland, Lichtenstein, Luxembourg and Alto Adige shall
            constitute the German Territory. At any time during the Term, as a
            basis to raise additional capital, DW may assign or grant to any
            third party(ies) the right and obligation to render Fulfillment
            Services in connection with DW Pictures for either Japan or the
            German Territory, in which event FSP shall not have the right and
            obligation to render Fulfillment Services in connection with the
            applicable DW Pictures in the designated territory, except as
            otherwise may be provided in Exhibit B; provided, however, that DW
            shall provide Universal with 90 days notice prior to the effective
            date of any such assignment or grant, and DW shall hold Universal
            harmless from third party claims and actual out-of-pocket losses
            (i.e., excluding internal costs, profits, and/or consequential
            damages) resulting from any such assignment or grant (including
            costs incurred in terminating personnel as a result thereof).
            Notwithstanding the foregoing, DW shall have the right to cause FSP
            to provide to such third party(ies) all of the Fulfillment Services
            required in connection with DW Videograms in the designated
            territory, in which event FSP shall be entitled to the applicable
            "Foreign Service Fees" set forth in Schedule B-II of Exhibit B,
            calculated on the "Foreign Receipts" (as defined in Exhibit B)
            derived from the applicable territory and such Foreign Receipts
            shall be taken into account for purposes of calculating the Foreign
            Receipts breakpoints for the Foreign Schedule Percentages in
            Schedule B-II of Exhibit B. DW and applicable

                                       38

<PAGE>

            third parties shall have access to all DW Picture elements and
            related materials in accordance with Exhibit B, provided DW and such
            third parties shall bear all duplication, freight and delivery costs
            in connection therewith.

2.    Videogram. "Videogram" as defined in Exhibit B shall include video CDs
      (i.e., "VCDs").

3.    Services. FSP shall supply and render, at no cost or expense to DW, except
      for FSP's retention of the applicable Service Fees set forth in Exhibit A
      or expressly set forth in Paragraphs 1.b and 5 of this Schedule B-TC, the
      services ("Services") set forth in Exhibit FS, attached hereto and
      incorporated herein by reference.

      In territories where Universal does not provide certain Fulfillment
      Services contemplated under Exhibit "B" (including the Services) and DW
      pays the third party costs attributable thereto (i.e., sales [e.g. Sales
      Agents in Italy], marketing, finance or operations [e.g., Sales and
      Distribution Agreement in Japan]), the parties agree that the fee due to
      Universal shall be reduced *** in the event that Sales and/or Distribution
      Services are not provided in such territory.

      DW agrees that it will negotiate and consider in good faith an agreement
      for the provision of fulfillment services by Universal for DVDs in Japan
      provided that Universal is (or will be) substantially capable of providing
      such services to DW as of the agreed-upon date of commencement of the
      provision of such services.

4.    Self-Help; Cure. If DW believes the performance of Fulfillment Services
      set forth in paragraph 1 of Exhibit FS is substandard as compared to those
      commonly rendered in the industry, DW will notify Universal in writing of
      such belief, including detailed substantiation of its position. Universal
      will have 90 days to substantially cure such substandard performance. At
      the end of the cure period, DW will either approve Universal's remedy on
      the basis that it represents a substantial cure (which approval shall not
      be unreasonably withheld), or disapprove the cure. If DW disapproves the
      cure, and the parties do not otherwise mutually agree, the matter shall be
      submitted to arbitration pursuant to the procedures set forth herein
      (except that the same shall be conducted and completed within 30 days from
      commencement) for determination of the provision of services issues and
      the remedy, if any, therefor.

5.    Pick, Pack & Ship; Replenishment; Returns Processing. DW shall be
      responsible for the cost of pick/pack/ship services, replenishment and
      returns processing of DW Videograms on a worldwide basis, whether such
      services are rendered by FSP or a third party, provided that such costs in
      the case of FSP shall be limited to FSP's actual cost of providing such
      services, but not to exceed the most favorable rate available to DW as
      charged by third parties for such services.

6.    CIC Audit. DW and FSP agree to promptly resolve, within six months (6)
      months from execution of the DW/[ ] Master Agreement, DW's pending audit
      claims for the territories of Italy, Germany, Japan, Spain, the United
      Kingdom and France resulting from the audit of Cinema International
      Corporation B.V. by DW's independent auditors.

                                       39

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omitted portions.
<PAGE>

7.    Accounting/Payments. DW and FSP agree to the following modifications with
      respect to accountings and payments pursuant to Exhibit B.

      a. All Domestic Territory and Foreign Territory video payments shall be
      made to DW based on ***, rather than ***. Deemed Receipts, Services
      Expenses and Service Fees shall be settled monthly with *** of the same
      due on a sixty (60) day lag from the end of the month in which DW
      Videograms are shipped and billed, or Service Expenses are incurred, and
      the remaining *** of the same on a ninety (90) day lag from the end of the
      month in which DW Videograms are shipped and billed, or Service Expenses
      are incurred. Deemed Receipts shall be defined as gross shipments, less
      actual returns, sales allowances, and discounts, and substantial unpaid
      receivables (provided that Universal shall promptly notify DW of the same
      and the parties shall negotiate in good faith the appropriate accounting
      and settlement of the same). FSP shall not establish return reserves at
      any time. Notwithstanding the foregoing, the parties agree that the intent
      hereof is an interest-neutral position for both parties, and if there is a
      change to receivables dating that substantially effects Deemed Receipts
      concerning DreamWorks Videograms, the parties shall discuss and revise in
      good faith.

      b. Foreign Receipts and Foreign Service Expenses shall be translated at
      the average exchange rate in the month they are incurred. No adjustments
      up or down for currency fluctuations are permitted.

      c. Sales and returns reporting for the Domestic Territory must be made
      available to DW within *** business days of FSP's month-end close.

      d. FSP shall provide electronic reporting to DW within *** business days
      of FSP's Foreign Territory month-end close.

      e. Domestic and Foreign Territory reporting shall include revenue, actual
      returns, and manufacturing costs by format.

Except as specifically provided above, all other terms and conditions set forth
in Exhibit B shall continue in full force and effect.

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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