CHICAGO (CelebrityAccess MediaWire) — Premier Exhibitions, Inc. has signed a new agreement with SAM Tour USA, Inc., Concert Productions International, Inc. and JAM Exhibitions, LLC, referred to collectively as "JAM," to co-present up to four additional human anatomy exhibitions including the upcoming "Bodies. . .The Exhibition" in Seattle, Washington. This new agreement settles a dispute between the parties and re-establishes their working relationship following Premier Exhibition's September 7 termination of the parties' prior agreements.
Prior to the termination, Premier and JAM had co-presented five "Bodies" related exhibitions, two of which are still ongoing. Under the new agreement, Premier Exhibitions will present four additional Exhibitions with JAM.
"This new arrangement is now reflective of a partnership truly designed to assist Premier in meeting its financial goals and its ongoing commitment to maximize shareholder value," said Arnie Geller, president and chief executive officer of Premier Exhibitions.
Premier Exhibitions filed a Form 8-K with the SEC disclosing the terms of the new agreement as outlined below:
* The parties will co-present a total of nine exhibitions (five of which have already been presented), as compared to the prior agreements which called for the joint presentation of an aggregate of 12 exhibitions;
* Any outstanding accounting issues related to the presentation of the first five exhibitions will be resolved by the parties on or before February 1, 2007 and will include settlement though December 31, 2006;
* In addition to license fees already paid under the prior agreements, Premier Exhibitions, Inc. will receive additional guaranteed licensing fees of $1.5 million, which fees will be paid in conjunction with the opening of the next two jointly presented exhibitions, to be located in Seattle, Washington, and an undisclosed location;
* Each of the additional four exhibitions to be co-presented by the parties will be governed by a separate operating contract;
* Premier Exhibitions will present two exhibitions scheduled to open to the public in the next two weeks, one to be located in Miami, Florida and the other in a "to-be-announced" venue. JAM will not be involved in the presentation of these exhibitions;
* The parties will continue to co-present the very successful "Bodies … the Exhibition" at the South Street Seaport in New York City under the terms of the prior agreements, which provide for a profit share ratio that increasingly favors the company, up to a maximum of 70% of the exhibition's profits;
* The parties will continue to co-present the very successful "Bodies… the Exhibition" at the Tropicana Resort and Casino in Las Vegasunder the terms of the prior agreements, which call for a profit share ratio that increasingly favors the company, up to a maximum of 80% of the exhibition's profits;
* JAM will pay all exhibitions costs for the four additional exhibitions, which costs will be recaptured by JAM prior to distribution of profits. Profits for these exhibitions will then be distributed at a ratio that increasingly favors Premier Exhibitions, up to a maximum of 70% of each exhibition's profits; and
* Premier Exhibitions will receive a monthly payment of $83,333 for each month that a jointly presented exhibition is extended beyond six months. Premier Exhibitions will receive these payments for any exhibitions that have been co-presented by the parties, including the exhibitions that have already ended or that are ongoing. — Bob Grossweiner and Jane Cohen