AGREEMENT IS SET FORTH IN
EXHIBIT A-1.
LLC MAY PROVIDE ADDITIONAL LOBBY PROMOTIONS ("ADDITIONAL LOBBY
PROMOTIONS"), SUBJECT TO APPROVAL BY REGAL.
LLC WILL TAKE ALL OTHER ACTIONS
21
NECESSARY AND PRUDENT TO ENSURE THE DELIVERY OF LOBBY PROMOTIONS AS REQUIRED
UNDER THE TERMS HEREOF.
LLC WILL INFORM REGAL OF THE LENGTH OF TIME THAT LOBBY
PROMOTIONS AND ADDITIONAL LOBBY PROMOTIONS ARE TO BE DISPLAYED.
(II)
LLC COVENANTS AND AGREES THAT LOBBY PROMOTIONS PROVIDED PURSUANT
TO THIS AGREEMENT WILL CONFORM TO ALL STANDARDS AND SPECIFICATIONS OF WHICH
REGAL PROVIDES LLC REASONABLE NOTICE DURING THE TERM, INCLUDING WITHOUT
LIMITATION STANDARDS AND SPECIFICATIONS WITH RESPECT TO MANUFACTURERS AND
SUPPLIERS, SIZING (E.G., CUP AND POPCORN TUB SIZING), TIMING OF DELIVERY OF
CONCESSION SUPPLIES TO THEATRES, REIMBURSEMENT OF INCREMENTAL COSTS (E.G., CUPS,
FLOOR MATS, PLATES) AND THE LIKE.
LLC FURTHER COVENANTS THAT THE LOBBY
PROMOTIONS WILL NOT DIMINISH OR TARNISH THE REPUTATION OF REGAL OR UNREASONABLY
DISRUPT THEATRE OPERATIONS, INCLUDING, WITHOUT LIMITATION, TRAFFIC FLOW OR NOISE
LEVEL, EACH AS DETERMINED IN REGAL'S REASONABLE DISCRETION, AND THAT LOBBY
PROMOTIONS WILL COMPLY WITH THE CONTENT STANDARDS SET FORTH IN SECTION 4.03.
LLC SPECIFICALLY AGREES (I) THAT LOBBY PROMOTIONS WILL CONTAIN ONLY MATERIAL
THAT HAS RECEIVED, OR HAD IT BEEN RATED WOULD HAVE RECEIVED, AN MPAA "G" OR "PG"
RATING, (II) THAT THE ONLY TYPE OF SAMPLING THAT WILL BE PERMITTED IS EXIT
SAMPLING, (III) TO REFRAIN FROM DISTRIBUTING CHEWING GUM AS PART OF ANY LOBBY
PROMOTION, OTHER THAN ATTENDED SAMPLING AS PATRONS ARE EXITING THE THEATRE,
(IV) NOT TO PERMIT A LOBBY PROMOTION THAT WOULD DISTRIBUTE OR SAMPLE ANY ITEM
THAT IS THE SAME AS OR SUBSTANTIALLY SIMILAR TO ANY ITEM SOLD AT THE THEATRE'S
CONCESSION STAND AND (V) NOT TO PERMIT A LOBBY PROMOTION INVOLVING FUND RAISING
ON THEATRE PROPERTY.
(III)
LLC WILL BE RESPONSIBLE FOR ALL COSTS AND EXPENSES ASSOCIATED
WITH SOURCING, PRODUCTION, DELIVERY AND EXECUTION OF LOBBY PROMOTIONS TO THE
THEATRES, INCLUDING INCREMENTAL COSTS ACTUALLY INCURRED BY THE THEATRES IN
CONNECTION WITH LOBBY PROMOTIONS.
IN ITS DISCRETION, REGAL MAY MAKE EMPLOYEES
AVAILABLE TO ASSIST IN LOBBY PROMOTIONS REQUIRING EXIT SAMPLING; PROVIDED THAT
LLC SHALL REIMBURSE REGAL FOR THE EMPLOYEES' TIME USED TO CONDUCT THE EXIT
SAMPLING AT THEIR CUSTOMARY WAGE.
(B)
DIGITAL PROGRAMMING SERVICES AND MEETING SERVICES.
ON THE
EFFECTIVE DATE, LLC WILL MAKE AVAILABLE TO DIGITIZED THEATRES ALL DIGITAL
PROGRAMMING SERVICES AND MEETING SERVICES AS SET FORTH IN ARTICLE 6.
SECTION 4.03
CONTENT STANDARDS.
THE PARTIES AGREE THAT (UNLESS MUTUALLY
AGREED BY THE PARTIES WITH RESPECT TO CLAUSES (I), (III), (IV), (V) OR (VI)) ALL
CONTENT WITHIN THE SERVICE (INCLUDING CONTENT FOR DISPLAY IN DIGITAL PROGRAMMING
OR MEETING SERVICES) WILL NOT CONTAIN CONTENT OR OTHER MATERIAL THAT:
(I) HAS
RECEIVED, OR HAD IT BEEN RATED WOULD HAVE RECEIVED, AN MPAA "X" OR "NC-17"
RATING (OR THE EQUIVALENT), (II) PROMOTES ILLEGAL ACTIVITY, (III) PROMOTES THE
USE OF TOBACCO, SEXUAL AIDS, BIRTH CONTROL, FIREARMS, WEAPONS OR SIMILAR
PRODUCTS; (IV) PROMOTES ALCOHOL, EXCEPT PRIOR TO "R"-RATED FILMS IN THE
AUDITORIUM; (V) CONSTITUTES RELIGIOUS ADVERTISING (EXCEPT