<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934*
AMENDMENT NO. 5
Metro-Goldwyn-Mayer Inc.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, $.01 par value
- --------------------------------------------------------------------------------
(Title of Class of Securities)
591610100
- --------------------------------------------------------------------------------
(CUSIP Number)
Richard E. Sobelle, Esq.
Tracinda Corporation
150 South Rodeo Drive
Beverly Hills, CA 90212
(310) 271-0638
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Persons Authorized to Receive Notices and
Communications)
October 26, 1998
- --------------------------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(b) (3) or (4), check the following box [_].
Check the following box if a fee is being paid with this statement [_]. (A
fee is not required only if the reporting person: (1) has a previous statement
on file reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
NOTE: Six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d-1(a) for other parties to whom copies
are to be sent.
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.
<PAGE>
The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
2
<PAGE>
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
TRACINDA CORPORATION
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
BK
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
NEVADA
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
120,119,223
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 14,878,500
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
120,119,223
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
14,878,500
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
134,997,723
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12 [_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
95.1%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ------------------------------------------------------------------------------
3
<PAGE>
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
KIRK KERKORIAN
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
N/A
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
U.S.A.
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
134,997,723
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 0
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
134,997,723
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
134,997,723
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12 [_]
NOT APPLICABLE
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
95.1%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
4
<PAGE>
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
250 RODEO, INC.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
BK AND PF
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
DELAWARE
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
14,878,500
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 0
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
14,878,500
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
14,878,500
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12 [_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
20.1%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ------------------------------------------------------------------------------
5
<PAGE>
This Amendment No. 5 amends and supplements the Statement on Schedule 13D
filed on November 18, 1997, as amended on November 25, 1997, on July 27, 1998,
on August 19, 1998 and on September 2, 1998 (as so amended, the "Schedule 13D"),
relating to the common stock, par value $.01 per share (the "Shares"), of Metro-
Goldwyn-Mayer Inc., a Delaware corporation (the "Company"), previously filed by
Tracinda Corporation ("Tracinda"), 250 Rodeo, Inc. ("250 Rodeo" and,
collectively with Tracinda, the "Tracinda Entities") and Mr. Kirk Kerkorian.
Capitalized terms used and not defined in this Amendment have the meanings set
forth in the Schedule 13D.
1. Item 3 of the Schedule 13D is hereby amended to add the following
information:
The funds for the purchase of the Shares will be obtained in the case of
Tracinda, pursuant to the Credit Agreement and in the case of 250 Rodeo, from
the Credit Agreement and /or a capital infusion.
2. Item 4 of the Schedule 13D is hereby amended to add the following
information:
On October 26, 1998, the Tracinda Entities and the Company entered into a
Stock Purchase Agreement (the "Stock Purchase Agreement"), relating to the
distribution by the Company to the holders of its outstanding common stock of
transferable subscription rights ("Rights") to subscribe for and purchase
additional Shares for a price of $8.25 per share (the "Subscription Price"). The
distribution of the Rights and the sale of the shares of Common Stock upon the
exercise of the Rights is referred to herein as the "Rights Offering." Pursuant
to the Rights Offering, the Tracinda Entities were the recipients of Rights to
purchase 75,933,009 Shares of Common Stock. Under the terms of the Stock
Purchase Agreement, the Tracinda Entities irrevocably agreed with the Company to
exercise at the Subscription Price that number of Rights distributed to them and
that 250 Rodeo will purchase all Shares that are not otherwise subscribed for at
the close of the Rights Offering. The Tracinda Entities' obligations under the
Stock Purchase Agreement are subject to certain conditions, including the
condition that there shall have been no material adverse change in or affecting
the business, prospects, financial position, stockholders' equity or results of
operations of the Company except to the extent any such changes result from
changes in general economic conditions or the decline in price of stocks
generally. A copy of the Stock Purchase Agreement has been attached hereto as
Exhibit 7.16 and is incorporated herein by reference.
The Rights Offering commenced on October 26, 1998.
3. Item 5 of the Schedule 13D is hereby amended to add the following
information:
(a) Tracinda and Mr. Kerkorian are the beneficial owners of 134,997,723
Shares (including the Shares to be purchased and directly held by 250 Rodeo upon
exercise of its Rights), approximately 95.1% of the Shares outstanding, based
upon the number of Shares outstanding as reported in the Company's Registration
Statement on Form S-1 relating to the Rights Offering plus the number
6
<PAGE>
of Shares the Tracinda Entities will purchase in exercising their Rights. 250
Rodeo is the beneficial owner of the 14,878,500 Shares it holds directly or will
purchase through exercise of its Rights, approximately 20.1% of the Shares
outstanding, based upon the number of Shares outstanding as reported in the
Company's Registration Statement on Form S-1 relating to the Rights Offering
plus the number of Shares 250 Rodeo will purchase in exercising its Rights.
(b) Mr. Kerkorian has the sole power to vote or to direct the vote and sole
power to dispose or direct the disposition of the 75,933,009 Shares to be
acquired upon the Tracinda Entities' exercise of their Rights.
5. Item 6 of the Schedule 13D is hereby amended to add the following
information:
See the response to Item 4 in this Amendment No. 5. The Shares to be
acquired pursuant to the Stock Purchase Agreement by the Tracinda Entities will
be pledged pursuant to the Credit Agreement.
6. Item 7 of the Schedule 13D is hereby amended to add the following
information:
Exhibit 7.16 Stock Purchase Agreement, dated October 26, 1998, by and
among the Company, Tracinda Corporation and 250 Rodeo, Inc.
7. Except as specifically provided herein, this Amendment No. 5 does not modify
any of the information previously reported on the Schedule 13D.
7
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: October 26, 1998
TRACINDA CORPORATION
a Nevada corporation
By: /s/ Anthony L. Mandekic
--------------------------
Name: Anthony L. Mandekic
Title: Secretary/Treasurer
KIRK KERKORIAN
By: /s/ Anthony L. Mandekic
--------------------------
Name: Anthony L. Mandekic
Title: Attorney-in-Fact
250 RODEO, INC.
a Delaware corporation
By: /s/ Anthony L. Mandekic
--------------------------
Name: Anthony L. Mandekic
Title: Secretary/Treasurer
8
<PAGE>
Exhibit Index
DOCUMENT
--------
Exhibit 7.16 Stock Purchase Agreement, dated October 26, 1998, between the
Company, Tracinda Corporation and 250 Rodeo, Inc.
9
<PAGE>
Exhibit 7.16
METRO-GOLDWYN-MAYER INC.
STOCK PURCHASE AGREEMENT
- ------------------------
TRACINDA CORPORATION
150 S. Rodeo Drive
Beverly Hills, CA 90212
250 RODEO, INC.
150 S. Rodeo Drive
Beverly Hills, CA 90212
Dear Sirs:
Metro-Goldwyn-Mayer Inc., a Delaware corporation (the "Company"), proposes
to distribute, as soon as practicable after the Registration Statement, as
defined herein, becomes effective, to the holders of its Common Stock, par value
$.01 per share (the "Common Stock"), of record as of the close of business on
October 26, 1998, or such later date on which the Registration Statement becomes
effective (the "Record Date"), transferable rights (the "Rights") to purchase an
aggregate of 84,848,485 shares of Common Stock (the "Subscription Shares") at a
price of $8.25 per share (the "Subscription Price") by issuing to such holders
of record subscription certificates (the "Subscription Certificates") evidencing
1.289 Rights for each share of Common Stock held as of the Record Date rounded
up to the nearest whole right. The Company proposes to offer to sell the
Subscription Shares on the basis of one Subscription Share for each whole Right
held (the "Rights Offering"). The time of the first mailing of the Subscription
Certificates is hereinafter referred to as the "Time of Mailing." The Rights
will expire at 5:00 P.M. on November 16, 1998 (the "Expiration Date"). Subject
to the terms and conditions herein, the Company desires to sell, and 250 Rodeo,
Inc., a Delaware corporation ("250 Rodeo"), desires to purchase, all of the
Subscription Shares not subscribed for by the record holders or others in the
Rights Offering (the "Unsubscribed Shares"), which will result in the receipt by
the Company of aggregate proceeds from the sale of Subscription Shares and
Unsubscribed Shares of $700,000,000 (before expenses payable by the Company).
Such Unsubscribed Shares or any portion thereof are herein referred to as the
"Securities."
The Company has filed with the Securities and Exchange Commission (the
"Commission") a registration statement on Form S-1 (No. 333-60723) and a related
preliminary prospectus for the registration of the Rights and the Subscription
Shares (the "Offering") under the Securities Act of 1933, as amended (the "1933
Act"), has filed such amendments thereto, if any, and such amended preliminary
prospectuses as may have been required to the date hereof, and will file such
additional amendments thereto and such amended prospectuses as may hereafter be
required. Such registration statement (as amended, if applicable) and the final
10
<PAGE>
prospectus relating to the offering constituting a part thereof (including in
each case all documents, if any, incorporated by reference therein), as from
time to time amended or supplemented pursuant to the 1933 Act, are hereinafter
referred to as the "Registration Statement" and the "Prospectus," respectively.
Section 1. Purchase, Sale and Delivery of Securities.
-----------------------------------------
(a) Subject to the terms herein, the Company agrees to sell to 250 Rodeo
and 250 Rodeo agrees to purchase from the Company, at a price per share equal to
the Subscription Price, all the Unsubscribed Shares simultaneously with the
closing of the Rights Offering. Each of 250 Rodeo and Tracinda Corporation, a
Nevada corporation ("Tracinda," and collectively with 250 Rodeo, the "Tracinda
Group") agrees to exercise the Basic Subscription Privilege (as defined in the
Registration Statement) with respect to any Rights issued to it in the Rights
Offering. The Tracinda Group will not exercise the Oversubscription Privilege
(as defined in the Registration Statement).
(b) Payment of the purchase price for, and delivery of certificates for,
the Securities shall be made at the office of Gibson, Dunn & Crutcher LLP, 333
South Grand Avenue, Los Angeles, California, or at such other place as shall be
agreed upon by 250 Rodeo and the Company, at 8:30 A.M., Los Angeles time, on the
third business day after expiration of the Rights Offering, or such other time
and date as shall be agreed upon by 250 Rodeo and the Company (such time and
date of payment and delivery being herein called "Closing Time"). Each of the
parties hereto acknowledges and agrees that each of Tracinda and 250 Rodeo is an
affiliate of the Company and accordingly that its ability to resell the
Securities or the Subscription Shares may be limited in accordance with Rule 144
under the 1933 Act and any other limitations imposed by the Securities and
Exchange Commission. Each of the parties hereto further acknowledges that the
Securities, as well as the Subscription Shares acquired by Tracinda and 250
Rodeo upon exerercise of Rights will be subject to the terms of the Shareholders
Agreement and the Investors Shareholder Agreement (as such terms are defined in
the Registration Statement). Certificates for the Securities shall be in such
denominations and registered in such names as 250 Rodeo may request in writing
at least two business days before Closing Time.
Payment for any Unsubscribed Shares shall be made to the Company in
immediately available funds to be delivered by wire transfer to the account of
the Company, against delivery to 250 Rodeo of certificates for the Securities,
with such legends affixed to the reverse thereof as are required by Section 3.1
of the Shareholders Agreement and Section 4.2 of the Investors Shareholder
Agreement.
(c) Payment for Subscription Shares being acquired upon exercise of Rights
by Tracinda and 250 Rodeo (and delivery of the certificates therefor) shall be
made as provided in the Prospectus.
Section 2. Representations and Warranties.
------------------------------
(a) The Company hereby represents and warrants to Tracinda and 250 Rodeo as
follows: (i) the Company has all requisite corporate power and authority to
enter into this Agreement and to consummate the transactions set forth in
Section 1 hereof; (ii) the execution and delivery by the Company of this
Agreement, and the consummation by the Company of the transactions set forth in
Section 1 hereof, have been duly authorized by all necessary corporate
11
<PAGE>
action on the part of the Company; (iii) this Agreement has been duly executed
and delivered by the Company and constitutes a valid and binding obligation of
the Company enforceable against the Company in accordance with its terms, except
as the enforceability hereof may be limited by bankruptcy, insolvency or other
similar laws affecting creditors' rights generally or general principles of
equity; (iv) no consent, approval, order or authorization of, or registration,
declaration or filing with, any court, administrative agency or commission or
other governmental authority or instrumentality, domestic or foreign, is
required by, or with respect to, the Company in connection with the execution
and delivery of this Agreement by the Company or the consummation by the Company
of the transactions set forth in Section 1 hereof (other than the filing and
effectiveness of the Registration Statement and the effectiveness of the
Amendment as defined in the Registration Statement); (v) the execution and
delivery of this Agreement by the Company and the consummation of the
transactions set forth in Section 1 hereof by the Company does not conflict
with, or result in a breach of, any law or regulation of any governmental
authority applicable to the Company or any material agreement to which the
Company is a party; and (vi) subject to the effectiveness of the Amendment, when
issued and paid for in accordance with the provisions of Section 1 hereof, the
shares of Common Stock sold to Tracinda and 250 Rodeo pursuant to Section 1
hereof shall be duly authorized, validly issued, fully paid, nonassessable, and
free of any claims or encumbrances, other than (a) any claims or encumbrances
resulting from actions taken by Tracinda or 250 Rodeo with respect to the shares
to be received by it hereunder, or (b) pursuant to the Investors Shareholder
Agreement or the Shareholders Agreement.
(b) Each of Tracinda and 250 Rodeo hereby represents and warrants to the
Company as follows: (i) it has all requisite corporate power and authority to
enter into this Agreement and to consummate the transactions set forth in
Section 1 hereof; (ii) the execution and delivery by it of this Agreement, and
the consummation by it of the transactions set forth in Section 1 hereof, have
been duly authorized by all necessary corporate action on its part ; (iii) this
Agreement has been duly executed and delivered by it and constitutes a valid and
binding obligation of it enforceable against it in accordance with its terms,
except as the enforceability hereof may be limited by bankruptcy, insolvency or
other similar laws affecting creditors' rights generally or general principles
of equity; (iv) no consent, approval, order or authorization of, or
registration, declaration or filing with, any court, administrative agency or
commission or other governmental authority or instrumentality, domestic or
foreign, is required by, or with respect to, it in connection with the execution
and delivery of this Agreement by it or the consummation by it of the
transactions set forth in Section 1 hereof (other than any filings pursuant to
Section 16(a) of, or Regulation 13D under, the Securities Exchange Act of 1934,
as amended); (v) the execution and delivery of this Agreement by it and the
consummation by it of the transactions set forth in Section 1 hereof does not
conflict with, or result in a breach of, any law or regulation of any
governmental authority applicable to it or, at the Closing, any material
agreement to which it is a party; (vi) it will acquire the Securities for its
own account and not with a view to distribution or resale in any manner which
would be in violation of the 1933 Act; and (vi) it will have at the Closing
readily available funds in an amount sufficient to satisfy its obligations
hereunder; and (vii) its outstanding securities are beneficially sound by less
than 100 persons and it is not making and does not presently propose to make, a
public offering of its Securities.
Section 3. Covenants.
---------
(a) Subject to the terms and conditions of this Agreement, each party
hereto will use its best efforts to take, or cause to be taken, all actions and
to do, or cause to be done, all things
12
<PAGE>
reasonably necessary or reasonably desirable to consummate the transactions
contemplated by this Agreement.
(b) Fees and Expenses. The Company hereby agrees to pay or reimburse all
-----------------
out-of-pocket expenses and fees reasonably incurred by Tracinda and 250 Rodeo in
connection with their performance under this Agreement and the Rights Offering
(including reasonable fees and expenses of legal counsel).
Section 4. Conditions to the Closing.
-------------------------
(a) The obligations of each of Tracinda and 250 Rodeo, on the one hand, and
the Company, on the other hand, to consummate their respective obligations
pursuant to Section 1 hereof are subject to the satisfaction on or prior to the
Expiration Date of each of the following conditions:
(i) The Registration Statement shall have become effective not later
than 5:30 P.M. on the Record Date; and at the Expiration Date no stop order
suspending the effectiveness of the Registration Statement shall have been
issued under the 1933 Act or proceedings therefor initiated or threatened
by the Commission.
(ii) Each of the representations and warranties of the other parties
hereto contained in this Agreement shall be true and correct in all
material respects, at and as of the Expiration Date, with the same force
and effect as of the Expiration Date.
(iii) The Rights Offering shall have been completed in conformity
with all of the requirements related thereto provided in the Registration
Statement and the Prospectus.
(b) The obligations of each of Tracinda and 250 Rodeo to consummate its
obligations pursuant to Section 1 hereof shall also be subject to the
satisfaction on or prior to the Expiration Date of each of the following
conditions:
(i) Material Adverse Change. Since the respective dates as to which
-----------------------
information is given in the Registration Statement and the Prospectus (each
as on file with the Commission on the date hereof), there shall not have
been any material adverse change in or affecting the business, prospects,
financial position, stockholders' equity or results of operations of the
Company and its subsidiaries taken as a whole except to the extent any such
changes result from changes in general economic conditions or the decline
in prices of stocks generally.
(ii) Legal Opinion. Each of Tracinda and 250 Rodeo shall have
-------------
received the opinion, dated as of the date hereof, of Gibson, Dunn &
Crutcher LLP, counsel for the Company, in form and substance satisfactory
to their counsel, of the type typically rendered to underwriters in public
offerings in the United States relating to incorporation and good standing,
authorization of the Rights Offering and the issuance of shares of Common
Stock in connection therewith, capitalization of the Company, effectiveness
and
13
<PAGE>
compliance with regulatory requirements of the Registration Statement,
and other consents and approvals required in connection with the Rights
Offering.
(iii) Accountant's Comfort Letter. The Dealer Managers (as defined
---------------------------
in the Registration Statement) shall be in receipt of a comfort letter of
the type typically rendered to underwriters in public offerings in the
United States from Arthur Andersen & Co., dated as of the date hereof, and
each of Tracinda and 250 Rodeo shall have been provided with a copy of such
comfort letter. In the event that the Dealer Managers have not received
such a comfort letter or if either Tracinda or 250 Rodeo has not been
provided with a copy of such letter, each of Tracinda and 250 Rodeo shall
have received from Arthur Andersen & Co. a comfort letter dated as of the
date hereof, in form and substance satisfactory to it and its counsel, of
the type typically rendered to underwriters in public offerings in the
United States.
(c) No Transfer. Neither Tracinda nor 250 Rodeo will sell, transfer or
-----------
assign any of the Rights issued to it in the Rights Offering other than to one
another.
Section 10. Notices. Any notice required to be given hereunder shall be
-------
sufficient if in writing, and sent by facsimile transmission, by courier service
(with proof of service), hand delivery or certified or registered mail (return
receipt requested and first-class postage prepaid), addressed as follows:
If to the Company, to:
Metro-Goldwyn-Mayer Inc.
2500 Broadway
Fifth Floor
Santa Monica, CA 90404-3061
Attention: Robert Brada
Telephone: (310) 449-3669
Telecopy: (310) 586-8193
with a copy to:
Gibson, Dunn & Crutcher LLP
333 South Grand Avenue
Los Angeles, CA 90071
Attention: Bruce D. Meyer
Telephone: (213) 229-7979
Telecopy: (213) 229-7520
14
<PAGE>
If to Tracinda or to 250 Rodeo, to:
Tracinda Corporation
150 South Rodeo Drive, Suite 250
Beverly Hills, CA 90212
Attention: Secretary/Treasurer
Telecopy: (310) 271-3416
with a copy to:
Fried, Frank, Harris, Shriver & Jacobson
One New York Plaza
New York, NY 10004
Attention: Stephen Fraidin, P.C.
Telephone: (212) 859-8140
Telecopy: (212) 859-4000
or to such other address as any party shall specify by written notice so given,
and such notice shall be deemed to have been delivered as of the date so
telecommunicated, personally delivered or mailed.
Section 11. Parties. This Agreement shall inure to the benefit of and be
-------
binding upon Tracinda, 250 Rodeo, the Company and their respective successors.
Nothing expressed or mentioned in this Agreement is intended or shall be
construed to give any person, firm or corporation, other than Tracinda, 250
Rodeo, the Company and their respective successors and the controlling persons
and officers and directors and their heirs and legal representatives, any legal
or equitable right, remedy or claim under or in respect of this Agreement or any
provision herein contained. This Agreement and all conditions and provisions
hereof are intended to be for the sole and exclusive benefit of Tracinda, 250
Rodeo, the Company and their respective successors, and said controlling persons
and officers and directors and their heirs and legal representatives, and for
the benefit of no other person, firm or corporation. No purchaser of Securities
or Subscription Shares from Tracinda or 250 Rodeo shall be deemed to be a
successor by reason merely of such purchase.
Section 12. Governing Law and Time. This Agreement shall be governed by
----------------------
and construed in accordance with the laws of the State of California applicable
to agreements made and to be performed in said State. Unless otherwise set
forth herein, specified times of day refer to New York City time.
15
<PAGE>
If the foregoing is in accordance with your understanding of our agreement,
please sign and return to the Company a counterpart hereof, whereupon this
instrument, along with all counterparts, will become a binding agreement between
Tracinda, 250 Rodeo and the Company in accordance with its terms. Executed as of
this 26th day of October 1998.
Very truly yours,
METRO-GOLDWYN-MAYER INC.
By: /s/ Robert Brada
-----------------------------
Title: Executive Vice President
Accepted as of the date
first above written.
TRACINDA CORPORATION
By: /s/ Anthony L. Mandekic
--------------------------
Title: Secretary/Treasurer
250 RODEO, INC.
By: /s/ Anthony L. Mandekic
--------------------------
Title: Secretary/Treasurer
16
