Turner Broadcasting System, Inc. and Subsidiaries - Page 11

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               i.  TBS had incorporated the 20 Mirror Subsidiaries, which             
          together with TBS would become the shareholders of MGM as the               
          result of the merger of Merger Sub into MGM on March 25, 1986.              
               j.  A Disbursing Agent had been appointed for the merger               
          consideration.                                                              
               A closing occurred on March 25, 1986, pursuant to the final            
          transaction documents and was memorialized by a Closing                     
          Memorandum and a Funds Transfer Memorandum.  The parties have               
          stipulated that each of the events memorialized occurred.  Those            
          events were deemed to be simultaneous and included:                         
               a.  TBS and TBS' Merger Sub transferred $994,902,740 and               
          49,745,137 shares of TBS Preferred Stock to the MGM Shareholders            
          Account established at the Disbursing Agent.                                
               b.  Tracinda delivered its 22,973,585 MGM shares to the                
          Disbursing Agent.                                                           
               c.  Tracinda acknowledged receipt of $459,471,700 cash and             
          22,973,585 shares of TBS Preferred Stock from the Disbursing                
          Agent.                                                                      
               d.  At the direction of Tracinda, the Disbursing Agent                 
          transferred $447,706,233 from the MGM Shareholders Account to MGM           
          in payment of the purchase price for the UA stock.  This payment            
          was funded from the cash portion of the consideration received by           
          Tracinda for its MGM shares (i.e., Tracinda paid for the UA stock           
          using cash it received from TBS in the MGM Purchase).                       






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