DATE, AND WILL IN ADDITION BE
DELIVERED PURSUANT TO THE SERVICE LEVELS INCLUDED IN THE SPECIFICATION
DOCUMENTATION, AS APPLICABLE.
IN ADDITION, LLC AGREES THAT THE QUALITY OF THE
ADVERTISING, PROMOTIONS AND ENTERTAINMENT PROGRAMMING CONTENT DELIVERED TO EACH
OF THE FOUNDING MEMBERS WILL BE CONSISTENT THROUGHOUT THE TERM.
(B)
PRE-FEATURE PROGRAM.
AS OF THE EFFECTIVE DATE, THE PRE-FEATURE
PROGRAM SHALL CONSIST OF FOUR (4) OR MORE ELEMENTS, INCLUDING:
(I) COMMERCIAL
ADVERTISING; (II) PROMOTIONS FOR THE REGAL BRAND (INCLUDING THE BRAND AND
BRANDED SLOTS), CONCESSIONS SOLD AND SERVICES USED BY REGAL AND OTHER PRODUCTS
AND SERVICES IN ACCORDANCE WITH SECTION 4.05; (III) INTERSTITIAL CONTENT; AND
(IV) OTHER ENTERTAINMENT PROGRAMMING CONTENT WHICH, WHILE PROMOTIONAL OF
BUSINESSES OR PRODUCTS, SHALL BE PRIMARILY ENTERTAINING, EDUCATIONAL OR
INFORMATIONAL IN NATURE, RATHER THAN COMMERCIALLY INSPIRED.
(C)
VIDEO DISPLAY PROGRAM.
THE ELEMENTS OF THE VIDEO DISPLAY PROGRAM
SHALL BE, GENERALLY, THE SAME AS THOSE FOR THE PRE-FEATURE PROGRAM, AND WILL
INCLUDE THE BRAND AND THE BRANDED SLOTS.
LLC SPECIFICALLY AGREES THAT THE VIDEO
DISPLAY PROGRAM WILL CONTAIN ONLY MATERIAL THAT HAS RECEIVED, OR HAD IT BEEN
RATED WOULD HAVE RECEIVED, AN MPAA "G" OR "PG" RATING.
IN ADDITION, LLC SHALL
NOT RESTRICT THE SALE OF INVENTORY FROM THE VIDEO DISPLAY PROGRAM FOR PROMOTIONS
OF FEATURE FILMS.
LOBBY SCREENS DISPLAYING THE VIDEO DISPLAY PROGRAM SHALL BE
LOCATED IN AREAS OF THEATRES OF LLC'S CHOOSING (SUBJECT TO REGAL'S REASONABLE
OPERATIONAL CONSTRAINTS AND PROVIDED RELOCATION OF EXISTING LOBBY SCREENS IS NOT
REQUIRED).
REGAL IS OBLIGATED TO PROVIDE AT LEAST ONE LOBBY SCREEN PER
DIGITIZED THEATRE WITH TEN OR FEWER SCREENS, TWO LOBBY SCREENS PER DIGITIZED
THEATRE WITH ELEVEN TO TWENTY SCREENS AND THREE LOBBY SCREENS PER DIGITIZED
THEATRE WITH MORE THAN TWENTY SCREENS; PROVIDED, HOWEVER, THAT REGAL SHALL HAVE
NO OBLIGATION TO INCREASE THE NUMBER OF LOBBY SCREENS IN ANY THEATRE THAT HAS AT
LEAST ONE LOBBY SCREEN THAT IS CAPABLE OF RECEIVING THE VIDEO DISPLAY PROGRAM AS
OF THE EFFECTIVE DATE.
WHEN A THEATRE HAS MORE THAN THE MINIMUM NUMBER OF LOBBY
SCREENS REQUIRED, REGAL MAY, AT ITS DISCRETION, ELECT TO DISPLAY ON SUCH EXCESS
LOBBY SCREENS (I) THE VIDEO DISPLAY PROGRAM OR (II) INTERNAL PROGRAMMING
(INCLUDING THEATRE ADVERTISING) THAT DOES NOT INCLUDE THIRD-PARTY ADVERTISING
AND/OR THIRD-PARTY MENTIONS FOR PRODUCTS AND SERVICES (OTHER THAN THEATRE
ADVERTISING); PROVIDED, HOWEVER, REGAL SHALL PROVIDE AT LEAST 30 DAYS ADVANCE
NOTICE PRIOR TO AN INITIAL ELECTION OF EITHER (I) OR (II) IN ANY SUCH THEATRE,
AND AT LEAST 60 DAYS ADVANCE NOTICE PRIOR TO ANY SUBSEQUENT CHANGE IN ELECTION.
SECTION 4.02
DELIVERY OF LOBBY PROMOTIONS, DIGITAL PROGRAMMING SERVICES
AND MEETING SERVICES.
(A)
LOBBY PROMOTIONS.
ON THE EFFECTIVE DATE, LLC WILL MAKE AVAILABLE
TO THE THEATRES THE LOBBY PROMOTIONS, AND REGAL WILL ACCEPT SUCH LOBBY
PROMOTIONS ON THE TERMS AND CONDITIONS SET FORTH HEREIN.
(I)
LOBBY PROMOTIONS SHALL SATISFY THE GUIDELINES AND SPECIFICATIONS
SET FORTH HEREIN AND AS MAY BE PROVIDED BY REGAL TO LLC PURSUANT TO
SECTION 4.02(A)(II).
THE INVENTORY OF LOBBY PROMOTIONS FOR EACH THEATRE THAT
REGAL COVENANTS TO DISPLAY PURSUANT TO THIS