MCA Inc. has invested $10 million in...

MCA Inc. has invested $10 million in Imagine Films Entertainment Inc. in a deal that gives MCA the right to 20% ownership of the company formed by “Happy Days” star-turned-director Ron Howard. As a condition of the deal, Howard, director of the fantasy epic “Willow,” and his co-chairman, Ron Grazer, extended their employment contracts with Imagine for 18 months. MCA bought a $10-million 8 1/2% subordinated debenture due in June, 1998, the companies said. It can be exchanged for 1.25 million shares of Imagine common stock at $8 each and warrants to buy 500,000 shares of common at $10 per share.