Santa Monica Pictures, LLC, Perry Lerner, Tax Matters Partner - Page 303

                                       - 70 -                                         
          titles in order to enter the laboratories and facilities and                
          examine those physical materials.                                           
          VIII. Other Film Activities                                                 
               In 1997, 1998, and 1999, SMHC (largely through the efforts             
          of Mr. Lerner, sometimes working with Michael Herz, the vice                
          president of Troma Entertainment, Inc.) investigated and acquired           
          a number of film titles and film libraries in addition to the               
          film library acquired in connection with the CDR transaction.  A            
          June 16, 1999, memo that Mr. Lerner sent to Mr. Ackerman reported           
          on the film libraries that SMHC had acquired, summarizing the               
          “initial library and acquisitions”, the number of titles, and               
          their “Cost” as follows:                                                    
          Library                 Number of Titles            Cost                    
          MGM (original)           80                  $5,000,000                     
          Wisdom              8                        120,000                        
          City Lights              15                  115,000                        
          Five Stones              5                   75,000                         
          Vista Street   24                                 470,000                   
          Moving Picture Factory         33                320,000                    
                    Total               165                                           
          New Production Total          2                   $615,000                  
                         Total          167               $6,715,000                  
               The “Wisdom” library, which Crown Capital purchased in                 
          November 1997 from Wisdom Entertainment, Ltd., contained eight              
          karate films.  The “City Lights” library, purchased by Crown                
          Capital in September 1997 from Nevada Media Partners, Inc.,                 
          contained 15 full-length feature films.  The “Five Stones”                  
          library, purchased by SMHC in October 1998 from Five Stones,                






Page:  Previous  60  61  62  63  64  65  66  67  68  69  70  71  72  73  74  75  76  77  78  79  Next

Last modified: May 25, 2011