Document:

HOLD SEPERATE STIPULATION AND ORDER, DATED DECEMBER 21,2005

 Exhibit 10.2 
  

									
	 	  	RECEIVED	  	FILED	  	 	  	ENTERED
	 	  	 	  	LODGED	  	 	  	RECEIVED
	 	  	DEC 21, 2005	  	*	  	DEC 21, 2005	  	              *
					
	 	  	 BADGLEY-MULLINS LAW
 GROUP
	  	 	  	AT SEATTLE	  	 
	 	  	 	  	CLERK U.S. DISTRICT COURT
	 	  	 	  	WESTERN DISTRICT OF WASHINGTON
	 	  	 	  	    BY	  	 	  	 
	 	  	 	  	 	  	 	  	DEPUTY

  
 The Honorable
                        
  
 UNITED STATES DISTRICT COURT 
 WESTERN
DISTRICT OF WASHINGTON 
 AT SEATTLE 
  

					
	 STATE OF WASHINGTON,
	  	NO. CV05-2111	  	 
		
	 Plaintiff,
	  	 
			
	        v.	  	HOLD SEPARATE	  	 
	 	  	STIPULATION AND ORDER	  	 
			
	 MARQUEE HOLDINGS, INC.
	  	 	  	 
			
	 and
	  	 	  	 
			
	 LCE HOLDINGS, INC.,
	  	 	  	 
		
	 Defendants.
	  	 

  
 HOLD SEPARATE
STIPULATION AND ORDER 
  
 It is hereby stipulated by and
between the undersigned parties, subject to approval and entry by this Court, that: 
  

			
	HOLD SEPARATE STIPULATION AND ORDER	  	 ATTORNEY GENERAL OF WASHINGTON
 900 Fourth Avenue, Suite 2000

  

 1 

 I. DEFINITIONS 
  
 As used in this Consent Decree: 
  
 A. “Acquirer” means the entity to whom defendants divest the Theater Assets. 
  
 B. “AMC” means defendant Marquee Holdings, Inc., a Delaware corporation with its headquarters in Kansas
City, Missouri, its successors and assigns, and its subsidiaries, divisions, groups, affiliates, partnerships and joint ventures, and their directors, officers, managers, agents, and employees. 
  
 C. “Loews” means defendant LCE Holdings, Inc., a Delaware
corporation with its headquarters in New York City, New York, its successors and assigns, and its subsidiaries, divisions, groups, affiliates, partnerships and joint ventures, and their directors, officers, managers, agents, and employees.

  
 D. “Landlord Consent” means any contractual
approval or consent that the landlord or owner of one or more of the Theater Assets, or the property on which one or more of the Theater Assets is situated, must grant prior to the transfer of one of the Theater Assets to an Acquirer. 
  
 E. “Theater Assets” means the first-run, commercial motion
picture theater business currently operating under the following name and at the following location: Meridian 16, at 1501 7th Ave. Seattle, WA. The term “Theater Assets” includes: 
  
 (1) all tangible assets that comprise the first-run, commercial motion
picture theater business including all equipment, fixed assets and fixtures, personal property, inventory, office furniture, materials, supplies, and other tangible property and all assets used in connection with 
  

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the Theater Assets; all licenses, permits and authorizations issued by any governmental organization relating to the Theater Assets; all contracts,
agreements, leases, commitments, certifications, and understandings, relating to the Theater Assets, including supply agreements; all customer lists, contracts, accounts, and credit records; all repair and performance records and all other records
relating to the Theater Assets; 
  
 (2) all intangible assets
used in the development, production, servicing and sale of Theater Assets, including, but not limited to all licenses and sublicenses, intellectual property, technical information, computer software (except defendants’ proprietary software) and
related documentation, know-how, drawings, blueprints, designs, specifications for materials, specifications for parts and devices, quality assurance and control procedures, all technical manuals and information defendants provide to their own
employees, customers, suppliers, agents or licensees, and all research data relating to the Theater Assets; provided, however, that this term does not include (a) any right to use or interest in defendants’ copyrights, trademarks, trade
names, service marks or service names, or (b) assets that the defendants do not own and are not legally able to transfer. 
  
 II. OBJECTIVES 
  
 The Consent Decree filed in this civil action is meant to ensure the Defendants’ prompt divestiture of the Theater Assets for the purpose of
establishing viable competitors in the exhibition of first-run, commercial motion pictures in order to remedy the effects that the State of Washington alleges would otherwise result from AMC’s acquisition of Loews. This Hold Separate
Stipulation and Order ensures, prior to such divestiture, that (1) the Loews Theater Assets will remain independent, economically viable and ongoing business concerns that will 

  

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remain independent and uninfluenced by AMC, (2) that the AMC Theater Assets will remain economically viable and ongoing business concerns, and
(3) that competition in the various markets in which these theaters are located is maintained and not diminished during the pendency of the ordered divestiture. 
  
 III. JURISDICTION AND VENUE. 
  

This Court has jurisdiction over the subject matter of this action and over each of the parties hereto, and venue of this action is proper in the
United States District Court for the Western District of Washington. 
  
 IV. COMPLIANCE WITH AND ENTRY OF CONSENT DECREE 
  
 A. The parties stipulate that a Consent Decree in the form hereto attached as Exhibit A, may be filed with and entered by this Court, upon the motion of any party or upon this Court’s own motion and without further notice to
any party or other proceedings, provided that the State of Washington has not withdrawn its consent, which it may do at any time before the entry of the proposed Consent Decree by serving notice thereof on Defendants and by filing that notice with
this Court. 
  
 B. Defendants shall abide by and comply with
the provisions of the proposed Consent Decree, pending the entry of the Consent Decree by this Court, or until expiration of time for all appeals of any court ruling declining entry of the proposed Consent Decree. From the date of the signing of
this Hold Separate Stipulation and Order by the parties, the Defendants shall comply with all the terms and provisions of the proposed Consent Decree as though the same were in full force and effect as an order of this Court. 
  

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 C. Defendants shall not consummate the transaction sought to be enjoined by the Complaint herein
before the Court has signed this Hold Separate Stipulation and Order. 
  
 D. This Hold Separate Stipulation and Order shall apply with equal force and effect to any amended proposed Consent Decree agreed upon in writing by the parties and submitted to this Court. 
  
 E. In the event that (1) the proposed Consent Decree is not entered
pursuant to this Hold Separate Stipulation and Order, the time has expired for all appeals of any court ruling declining entry of the proposed Consent Decree, and this Court has not otherwise ordered continued compliance with the terms and
provisions of the proposed Consent Decree, or (2) the State of Washington has withdrawn its consent, as provided in Section IV(A) above, then the parties are released from all further obligations under this Hold Separate Stipulation
and Order, and the making of this Hold Separate Stipulation and Order shall be without prejudice to any party in this or any other proceeding. 
  
 F. Defendants represent that the divestiture ordered in the proposed Consent Decree can and will be made, and that the Defendants will later raise no
claim of mistake, hardship, or difficulty of compliance as grounds for asking this Court to modify any of the provisions contained therein. 
  
 V. HOLD SEPARATE PROVISIONS 
  
 Until each divestiture required by the Consent Decree has been accomplished: 
  
 A. Defendants shall, except as is necessary to carry out their obligations under this Hold Separate Stipulation and
Order and the proposed Consent Decree, or to comply with 
  

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other legal obligations, take all steps necessary to ensure that (1) the Loews Theater Assets will be maintained and operated as independent, ongoing,
economically viable and active competitors in the exhibition of first-run, commercial motion pictures; (2) the AMC Theater Assets will be maintained and operated as ongoing, economically viable and active competitors in the exhibition of
first-run, commercial motion pictures; (3) the management of the Loews Theater Assets will not be influenced by AMC; and (4) the books, records, competitively sensitive sales, marketing, and pricing information, and decision making
associated with Loews Theater Assets will be kept separate and apart from AMC’s other operations. Within twenty (20) days after the entry of the Hold Separate Stipulation and Order, the Defendants will inform the State of Washington of the
steps taken to comply with the Hold Separate Stipulation and Order. 
  
 B. Defendants shall use all reasonable efforts to maintain and increase the sales, and revenue of the Theater Assets, and shall maintain research, design, product and service improvement, promotional, advertising, sales, technical
assistance, marketing, and merchandising support for the Theater Assets at 2005 or previously approved 2006 levels, whichever arc higher. 
  
 C. Defendants shall provide sufficient working capital and lines and sources of credit to continue to maintain the Theater Assets as economically
viable and competitive, ongoing businesses, consistent with the requirements of Sections V(A) and V(B). 
  
 D. Defendants shall take all steps necessary to ensure that the Theater Assets are fully maintained in operable condition at no less than current
capacity, and shall maintain and adhere to normal product and Service improvement, upgrade, repair, and maintenance schedules for the Theater Assets. 
  

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 E. Defendants shall not, except as part of a divestiture approved by the State of Washington
accordance with the terms of the proposed Consent Decree, remove, sell, lease, assign, transfer, pledge, or otherwise dispose of any of the Theater Assets. 
  
 F. Defendants shall maintain, in accordance with sound accounting principles, separate, accurate and complete financial ledgers, books, and records
that report on a periodic basis, such as the last business day of every month, consistent with past practices, the assets, liabilities, expenses, revenues, and income of the Theater Assets. 
  
 G. Defendants shall take no action that would jeopardize, delay, or
impede the sale of the Theater Assets. 
  
 H. Defendants
shall not hire, transfer, terminate, or reduce the salary agreements of any employee whose primary responsibilities relate to the Theater Assets, except for transfer bids initiated by employees pursuant to the Defendants’ regular, established
job-posting policy or as is otherwise consistent with this Hold Separate Stipulation and Order. Defendants shall provide the State of Washington with ten (10) calendar days notice of any such transfer. 
  
 I. Within ten (10) days of the entry of this Hold Separate
Stipulation and Order the Defendants shall appoint, subject to the approval of the State of Washington, a person or persons to oversee the Theater Assets, respectively, who will also be responsible for the Defendants’ compliance with this
section. This person or persons shall have complete managerial responsibility for the Theater Assets, respectively, subject to the provisions of the 

  

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Consent Decree. In the event that any such person is unable to perform his or her duties the Defendants shall appoint, subject to the approval of the State
of Washington, a replacement within ten (10) working days. Should the Defendants fail to appoint a replacement acceptable to the State of Washington within this time period, the State of Washington shall appoint a replacement. 
  
 J. Defendants shall take no action that would interfere with the ability
of any trustee appointed pursuant to the Consent Decree to complete the divestiture[s] required by the Consent Decree to Acquirers acceptable to the State of Washington. 
  
 K. This Hold Separate Stipulation and Order shall remain in effect until consummation of the divestiture required by
the proposed Consent Decree or until further order of the Court. 
  
 VI. ORDER 
  
 It is SO ORDERED
this      day of                      2005. 
  

	
	  

	UNITED STATES DISTRICT JUDGE

  
 Respectfully submitted by: 
  
 ROB
MCKENNA 
 Attorney General of Washington State 
  
 TINA E. KONDO, 
 Senior Assistant Attorney General 
 Antitrust Division Chief 
  

	
	 /s/ Mark O. Brevard

	MARK O. BREVARD, WSBA #21228
	Assistant Attorney General
	900 Fourth Avenue Suite 2000
	Seattle, WA 98164
	(206) 464-7030
	Dated: 12-21-05

  

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 FOR DEFENDANT AMC: 
  

	
	 /s/ Duncan C. Turner

	DUNCAN C. TURNER, WSBA #20597
	Counsel for Defendant
	 Badgley Mullins Law Group PLLC
 701 Fifth Avenue,
Suite 4750
 Seattle, WA 98104

	Tel: (206) 340-5907
	Fax: (206) 621-6566

  

	
	 /s/ Damian G. Didden

	DAMIAN G. DIDDEN (Pro Hac Vice)
	ILENE KNABLE GOTTS (Pro Hac Vice)
	Wachtell, Lipton, Rosen & Katz
	51 West 52nd Street
	New York, NY 10019
	Tel: (212) 403-1113
	Fax: (212) 403-2113

  

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 FOR DEFENDANT LOEWS: 
  

	
	 /s/ Ramona M. Emerson

	RAMONA M. EMERSON, WSBA #20956
	Counsel for Defendant
	Preston Gates & Ellis LLP
	925 Fourth Avenue
	Suite 2900
	Seattle, WA 98104-1158
	Tel: (206) 370-6748
	Fax: (206) 370-6058
	Dated: 12/20/05

  

	
	 /s/ Deborah L. Feinstein

	DEBORAH L. FEINSTEIN (Pro Hac Vice)
	Counsel for Defendant
	Arnold & Porter LLP
	555 Twelfth Street, NW
	Washington, DC 20004
	Tel: (202) 942-5015
	Fax: (202) 942-5999
	Dated: Dec. 19, 2005

  

 10FINAL JUDGMENT, DATED DECEMBER 20, 2005

 Exhibit 10.3 
  
 UNITED STATES DISTRICT COURT 
 SOUTHERN DISTRICT OF NEW YORK 
  

					
	 	  	)	    	 
	UNITED STATES OF AMERICA,	  	)	    	 
	 	  	)	    	 
	and	  	)	    	 
	 	  	)	    	 
	STATE OF ILLINOIS	  	)	    	 
	 	  	)	    	 
	and	  	)	    	 
	 	  	)	    	 
	STATE OF NEW YORK	  	)	    	 
	 	  	)	    	 
	and	  	)	    	 
	 	  	)	    	 
	COMMONWEALTH OF MASSACHUSETTS	  	)	    	 
	 	  	)	    	 
	Plaintiffs,                                	  	)	    	 
	 	  	)	    	Civil Action No.
	v.	  	)	    	 
	 	  	)	    	Filed:
	 	  	)	    	 
	MARQUEE HOLDINGS, INC.	  	)	    	 
	 	  	)	    	 
	and	  	)	    	 
	 	  	)	    	 
	LCE HOLDINGS, INC.	  	)	    	 
	 	  	)	    	 
	Defendants.                                	  	)	    	 
	 	  	)	    	 

  
 FINAL
JUDGMENT 
  
 WHEREAS, plaintiffs, United States of
America, the State of Illinois, the State of New York, and the Commonwealth of Massachusetts filed their Complaint on December 21, 2005, plaintiffs and defendants, Marquee Holdings, Inc. (“AMC”) and LCE Holdings, Inc.
(“Loews”), by their respective attorneys, have consented to the entry of this Final Judgment without trial or adjudication of any issue of fact or law, and without this Final Judgment constituting any evidence against or admission by any
party regarding any issue of fact or law; 

 AND WHEREAS, defendants agree to be bound by the provisions of this Final Judgment pending its approval
by the Court; 
  
 AND WHEREAS, the essence of this Final Judgment
is the prompt and certain divestiture[s] of certain rights or assets by the defendants to assure that competition is not substantially lessened; 
  
 AND WHEREAS, plaintiffs require defendants to make certain divestiture[s] for the purpose of remedying the loss of competition alleged in the Complaint;

  
 AND WHEREAS, defendants have represented to the United States
that the divestiture[s] required below can and will be made and that defendants will later raise no claim of hardship or difficulty as grounds for asking the Court to modify any of the divestiture provisions contained below; 
  
 NOW THEREFORE, before any testimony is taken, without trial or adjudication
of any issue of fact or law, and upon consent of the parties, it is ORDERED, ADJUDGED AND DECREED: 
  
 I. Jurisdiction 
  
 This Court has jurisdiction over the subject matter of and each of the parties to this action. The Complaint states a claim upon which relief may be granted against defendants under Section 7 of the Clayton Act,
as amended (15 U.S.C. § 18). 
  

 2 

 II. Definitions 
  
 As used in this Final Judgment: 
  
 A. “Acquirer” or “Acquirers” means the entity or entities to whom defendants divest the Theatre
Assets. 
  
 B. “AMC” means defendant Marquee
Holdings, Inc., a Delaware corporation with its headquarters in Kansas City, Missouri, its successors and assigns, and its subsidiaries, divisions, groups, affiliates, partnerships and joint ventures, and their directors, officers, managers,
agents, and employees. 
  
 C. “Loews” means
defendant LCE Holdings, Inc., a Delaware corporation with its headquarters in New York City, New York, its successors and assigns, and its subsidiaries, divisions, groups, affiliates, partnerships and joint ventures, and their directors,
officers, managers, agents, and employees. 
  
 D. “Landlord Consent” means any contractual approval or consent that the landlord or owner of one or more of the Theatre Assets, or the property on which one or more of the Theatre Assets is situated, must grant prior to the
transfer of one of the Theatre Assets to an Acquirer. 
  
 E. “Theatre Assets” means the first-run, commercial motion picture theatre businesses operated by AMC or Loews, under the following names and at the following locations: 
  

					
	 	  	 Theatre Name

	  	 Theatre Address

	i.	  	City North 14	  	 2600 N. Western Ave.
 Chicago, IL

	ii.	  	Webster Place 11	  	 1471 W. Webster Avenue
 Chicago, IL

	iii.	  	E-Walk 13	  	 247 W. 42nd St.
 New York, NY

	iv.	  	Meridian 16	  	 1501 7th Ave.
 Seattle, WA

	v.	  	Fenway 13	  	 201 Brookline Ave.
 Boston, MA

	vi.	  	Keystone Park 16	  	 13933 N. Central Expressway
 Dallas,
TX

  

 3 

 The term “Theatre Assets” includes: 
  
 1. All tangible assets that comprise the first-run, commercial motion
picture theatre business including all equipment, fixed assets and fixtures, personal property, inventory, office furniture, materials, supplies, and other tangible property and all assets used in connection with the Theatre Assets; all licenses,
permits and authorizations issued by any governmental organization relating to the Theatre Assets; all contracts, agreements, leases, commitments, certifications, and understandings, relating to the Theatre Assets, including supply agreements; all
customer lists, contracts, accounts, and credit records; all repair and performance records and all other records relating to the Theatre Assets; 
  
 2. All intangible assets used in the development, production, servicing and sale of Theatre Assets, including, but not limited to all licenses and
sublicenses, intellectual property, technical information, computer software (except defendants’ proprietary software) and related documentation, know-how, drawings, blueprints, designs, specifications for materials, specifications for parts
and devices, quality assurance and control procedures, all technical 

  

 4 

 
manuals and information defendants provide to their own employees, customers, suppliers, agents or licensees, and all research data relating to the Theatre
Assets. Provided however, that this term does not include (a) any right to use or interest in defendants’ copyrights, trademarks, trade names, service marks or service names, or (b) assets that the defendants do not own and are not
legally able to transfer. 
  
 III. Applicability

  
 A. This Final Judgment applies to AMC and Loews, as
defined above, and all other persons in active concert or participation with any of them who receive actual notice of this Final Judgment by personal service or otherwise. 
  
 B. Defendants shall require, as a condition of the sale or other disposition of all or substantially all of their
assets or of lesser business units that include the Theatre Assets, that the purchaser agrees to be bound by the provisions of this Final Judgment, provided, however, that defendants need not obtain such an agreement from the Acquirer[s].

  
 IV. Divestitures 
  
 A. Defendants are ordered and directed, within 120 calendar days after
the filing of the Complaint in this matter, or five (5) days after notice of the entry of this Final Judgment by the Court, whichever is later, to divest the Theatre Assets in a manner consistent with this Final Judgment to an Acquirer
acceptable to the United States in its sole discretion after consultation with the State of Illinois, State of New York, and Commonwealth of Massachusetts, as appropriate. The United States, in its sole discretion, may agree to one or more
extensions of this time period not to exceed 60 days in total, and shall notify the Court in such circumstances. Defendants agree to use their best efforts to divest the Theatre Assets as expeditiously as possible. 
  

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 B. In accomplishing the divestiture[s] ordered by this Final Judgment, defendants promptly shall
make known, by usual and customary means, the availability of the Theatre Assets. Defendants shall inform any person making inquiry regarding a possible purchase of the Theatre Assets that they are being divested pursuant to this Final Judgment and
provide that person with a copy of this Final Judgment. Defendants shall offer to furnish to all prospective Acquirers, subject to customary confidentiality assurances, all information and documents relating to the Theatre Assets customarily
provided in a due diligence process except such information or documents subject to the attorney-client or work-product privileges. Defendants shall make available such information to the United States at the same time that such information is made
available to any other person. 
  
 C. Defendants shall
provide the Acquirer[s] and the United States information relating to the personnel involved in the operation of the Theatre Assets to enable the Acquirer[s] to make offers of employment. Defendants will not interfere with any negotiations by the
Acquirer[s] to employ any defendant employee whose primary responsibility is the operation of the Theatre Assets. 
  
 D. Defendants shall permit prospective Acquirers of the Theatre Assets to have reasonable access to personnel and to make inspections of the physical
facilities of the Theatre Assets; access to any and all environmental, zoning, and other permit documents and information; and access to any and all financial, operational, or other documents and information customarily provided as part of a due
diligence process. 
  
  

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 E. Defendants shall warrant to all Acquirers of the Theatre Assets that each asset will be
operational on the date of sale. 
  
 F. Defendants shall not
take any action that will impede in any way the permitting, operation, or divestiture[s] of the Theatre Assets. 
  
 G. At the option of the Acquirer[s], defendants shall enter into an agreement for products and services, such as computer support services, that are
reasonably necessary for the Acquirer[s] to effectively operate the Theatre Assets during a transition period. The terms and conditions of any contractual arrangements meant to satisfy this provision must be commercially reasonable for those
products and services for which the agreement is entered and shall remain in effect for no more than three months, absent approval of the United States, in its sole discretion, after consultation with the State of Illinois, State of New York, and
Commonwealth of Massachusetts, as appropriate. 
  
 H. Defendants shall warrant to the Acquirer[s] of the Theatre Assets that there are no material defects in the environmental, zoning or other permits pertaining to the operation of each asset, and that following the sale of the Theatre
Assets, defendants will not undertake, directly or indirectly, any challenges to the environmental, zoning, or other permits relating to the operation of the Theatre Assets. 
  
 I. Unless the United States otherwise consents in writing, the divestiture[s] pursuant to Section IV, or by
trustee appointed pursuant to Section V, of this Final Judgment, shall include the entire Theatre Assets, and shall be accomplished in such a way as to satisfy the United States, in its sole discretion (after consultation with the State of
Illinois, State of New York, and Commonwealth of Massachusetts, as appropriate) that the Theatre Assets can and will be used by 

  

 7 

 
the Acquirer[s] as part of a viable, ongoing business of first-run, commercial motion picture theatres. Divestiture[s] of the Theatre Assets may be made to
one or more Acquirers, provided that in each instance it is demonstrated to the sole satisfaction of the United States that the Theatre Assets will remain viable and the divestiture[s] of such assets will remedy the competitive harm alleged in the
Complaint. The divestiture[s], whether pursuant to Section IV or Section V of this Final Judgment, 
  

	 	(1)	shall be made to an Acquirer (or Acquirers) that, in the United States’s sole judgment (after consultation with the State of Illinois, State of New York, and Commonwealth of
Massachusetts, as appropriate), has the intent and capability (including the necessary managerial, operational, technical and financial capability) of competing effectively in the business of first-run, commercial motion picture theatres; and

  

	 	(2)	shall be accomplished so as to satisfy the United States, in its sole discretion (after consultation with the State of Illinois, State of New York, and Commonwealth of
Massachusetts, as appropriate), that none of the terms of any agreement between an Acquirer (or Acquirers) and defendants give defendants the ability unreasonably to raise the Acquirer’s costs, to lower the Acquirer’s efficiency, or
otherwise to interfere in the ability of the Acquirer to compete effectively. 

  
 V. Appointment of Trustee 
  
 A. If defendants have not divested the Theatre Assets within the time period specified in Section IV(A), defendants shall notify the United States of that fact in writing. Upon application of the United States, the Court shall
appoint a trustee selected by the United States and approved by the Court to effect the divestiture[s] of the Theatre Assets. 
  
 B. After the appointment of a trustee becomes effective, only the trustee shall have the right to sell the Theatre Assets. The trustee shall have the
power and authority to accomplish 

  

 8 

 
the divestiture[s] to an Acquirer[s] acceptable to the United States (after consultation with the State of Illinois, State of New York, and Commonwealth of
Massachusetts, as appropriate) at such price and on such terms as are then obtainable upon reasonable effort by the trustee, subject to the provisions of Sections IV, V, VI, and VII of this Final Judgment, and shall have such other powers as this
Court deems appropriate. Subject to Section V (D) of this Final Judgment, the trustee may hire at the cost and expense of defendants any investment bankers, attorneys, or other agents, who shall be solely accountable to the trustee,
reasonably necessary in the trustee’s judgment to assist in the divestiture[s]. 
  
 C. Defendants shall not object to a sale by the trustee on any ground other than the trustee’s malfeasance. Any such objections by defendants must be conveyed in writing to the United States and the trustee
within ten (10) calendar days after the trustee has provided the notice required under Section VII. 
  
 D. The trustee shall serve at the cost and expense of defendants, on such terms and conditions as the Court approves, and shall account for all
monies derived from the sale of the assets sold by the trustee and all costs and expenses so incurred. After approval by the Court of the trustee’s accounting, including fees for its services and those of any professionals and agents retained
by the trustee, all remaining money shall be paid to defendants and the trust shall then be terminated. The compensation of the trustee and any professionals and agents retained by the trustee shall be reasonable in light of the value of the Theatre
Assets and based on a fee arrangement providing the trustee with an incentive based on the price and terms of the divestiture[s] and the speed with which it is accomplished, but timeliness is paramount. 
  

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 E. Defendants shall use their best efforts to assist the trustee in accomplishing the required
divestiture[s]. The trustee and any consultants, accountants, attorneys, and other persons retained by the trustee shall have full and complete access to the personnel, books, records, and facilities of the business to be divested, and defendants
shall develop financial and other information relevant to such business as the trustee may reasonably request, subject to reasonable protection for trade secret or other confidential research, development, or commercial information. Defendants shall
take no action to interfere with or to impede the trustee’s accomplishment of the divestiture[s]. 
  
 F. After its appointment, the trustee shall file monthly reports with the parties and the Court setting forth the trustee’s efforts to
accomplish the divestiture[s] ordered under this Final Judgment. To the extent such reports contain information that the trustee deems confidential, such reports shall not be filed in the public docket of the Court. Such reports shall include the
name, address, and telephone number of each person who, during the preceding month, made an offer to acquire, expressed an interest in acquiring, entered into negotiations to acquire, or was contacted or made an inquiry about acquiring, any interest
in the Theatre Assets, and shall describe in detail each contact with any such person. The trustee shall maintain full records of all efforts made to divest the Theatre Assets. 
  
 G. If the trustee has not accomplished such divestiture[s] within six months after its appointment, the trustee shall
promptly file with the Court a report setting forth (1) the trustee’s efforts to accomplish the required divestiture[s], (2) the reasons, in the trustee’s judgment, why the required divestiture[s] has not been accomplished, and
(3) the trustee’s recommendations. To the extent such reports contain information that the trustee deems confidential, such reports shall 

  

 10 

 
not be filed in the public docket of the Court. The trustee shall at the same time furnish such report to the United States and, as appropriate, the State of
Illinois, State of New York, and Commonwealth of Massachusetts who shall have the right to make additional recommendations consistent with the purpose of the trust. The Court thereafter shall enter such orders as it shall deem appropriate to carry
out the purpose of the Final Judgment, which may, if necessary, include extending the trust and the term of the trustee’s appointment by a period requested by the United States. 
  
 VI. Landlord Consent 
  

A. If defendants are unable to effect the divestiture[s] required herein due to the inability to obtain the Landlord Consent for any of the
Theatre Assets, defendants shall divest alternative Theatre Assets that compete effectively with the theatre for which Landlord Consent was not obtained. The United States shall in its sole discretion (after consultation with the State of Illinois,
State of New York, and Commonwealth of Massachusetts, as appropriate), determine whether such theatre competes effectively with the theatre for which landlord consent was not obtained. 
  
 B. Within five (5) business days following a determination that Landlord Consent cannot be obtained for one of the
Theatre Assets, defendants shall notify the United States and propose an alternative divestiture pursuant to Section VI(A). The United States shall have then ten (10) business days in which to determine whether such theatre is a suitable
alternative pursuant to Section VI(A). If the defendants’ selection is deemed not to be a suitable alternative, the United States shall in its sole discretion select the theatre to be divested (after consultation with the State of
Illinois, State of New York, and Commonwealth of Massachusetts, as appropriate). 
  

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 C. If the trustee is responsible for effecting the divestiture[s], it shall notify both the United
States and the defendants within five (5) business days following a determination that Landlord Consent can not be obtained for one of the Theatre Assets. Defendants shall thereafter have five (5) business days to propose an alternative
divestiture pursuant to Section VI(a). The United States shall have then ten (10) business days in which to determine whether such theatre is suitable alternative pursuant to Section VI(a). If the defendants’ selection is deemed
not to be a suitable competitive alternative, the United States shall in its sole discretion select the theatre to be divested (after consultation with the State of Illinois, State of New York, and Commonwealth of Massachusetts, as appropriate).

  
 VII. Notice of Proposed Divestitures 

 
 A. Within two (2) business days following execution of a
definitive divestiture agreement, defendants or the trustee, whichever is then responsible for effecting the divestiture[s] required herein, shall notify the United States and, as appropriate, the State of Illinois, State of New York, and
Commonwealth of Massachusetts of any proposed divestiture[s] required by Sections IV or V of this Final Judgment. If the trustee is responsible, it shall similarly notify defendants. The notice shall set forth the details of the proposed
divestiture[s] and list the name, address, and telephone number of each person not previously identified who offered or expressed an interest in or desire to acquire any ownership interest in the Theatre Assets, together with full details of the
same. 
  

 12 

 B. Within fifteen (15) calendar days of receipt by the United States of such notice, the United
States may request from defendants, the proposed Acquirer or Acquirers, any other third party, or the trustee if applicable additional information concerning the proposed divestiture[s], the proposed Acquirer or Acquirers, and any other potential
Acquirer. Defendants and the trustee shall furnish any additional information requested within fifteen (15) calendar days of the receipt of the request, unless the parties shall otherwise agree. 
  
 C. Within thirty (30) calendar days after receipt of the notice or
within twenty (20) calendar days after the United States has been provided the additional information requested from defendants, the proposed Acquirer or Acquirers, any third party, and the trustee, whichever is later, the United States shall
provide written notice to defendants and the trustee, if there is one, stating whether or not it objects to the proposed divestiture[s]. If the United States provides written notice that it does not object, the divestiture[s] may be consummated,
subject only to defendants’ limited right to object to the sale under Section V(C) of this Final Judgment. Absent written notice that the United States does not object to the proposed Acquirer[s] or upon objection by the United
States, the divestiture[s] proposed under Sections IV or Section V shall not be consummated. Upon objection by defendants under Section V(C), the divestiture[s] proposed under Section V shall not be consummated unless approved by the
Court. 
  
 VIII. Financing 
  
 Defendants shall not finance all or any part of any purchase made pursuant to
Section IV or V of this Final Judgment. 
  

 13 

 IX. Hold Separate 
  
 Until the divestiture[s] required by this Final Judgment has been accomplished defendants shall take all steps necessary to
comply with the Hold Separate Stipulation and Order entered by this Court. Defendants shall take no action that would jeopardize the divestiture[s] ordered by this Court. 
  
 X. Affidavits 
  
 A. Within twenty (20) calendar days of the filing of the Complaint in this matter, and every thirty (30) calendar days thereafter until the
divestiture[s] has/have been completed under Sections IV or V, defendants shall deliver to the United States an affidavit as to the fact and manner of its compliance with Section IV or V of this Final Judgment. Each such affidavit shall include
the name, address, and telephone number of each person who, during the preceding thirty days, made an offer to acquire, expressed an interest in acquiring, entered into negotiations to acquire, or was contacted or made an inquiry about acquiring,
any interest in the Theatre Assets, and shall describe in detail each contact with any such person during that period. Each such affidavit shall also include a description of the efforts defendants have taken to solicit buyers for the Theatre
Assets, and to provide required information to prospective purchasers, including the limitations, if any, on such information. Assuming the information set forth in the affidavit is true and complete, any objection by the United States to
information provided by defendants, including limitation on information, shall be made within fourteen (14) days of receipt of such affidavit. 
  
 B. Within twenty (20) calendar days of the filing of the Complaint in this matter, defendants shall deliver to the United States an affidavit
that describes in reasonable detail all 

  

 14 

 
actions defendants have taken and all steps defendants have implemented on an ongoing basis to comply with Section IX of this Final Judgment. Defendants
shall deliver to the United States an affidavit describing any changes to the efforts and actions outlined in defendants’ earlier affidavits filed pursuant to this section within fifteen (15) calendar days after the change is
implemented. 
  
 C. Defendants shall keep all records of all
efforts made to preserve and divest the Theatre Assets until one year after such divestiture[s] has/have been completed. 
  
 XI. Compliance Inspection 
  
 A. For the purposes of determining or securing compliance with this Final Judgment, or of determining whether the Final Judgment should be modified
or vacated, and subject to any legally recognized privilege, from time to time duly authorized representatives of the United States Department of Justice, the State of Illinois, State of New York, or Commonwealth of Massachusetts, including
consultants and other persons retained by either of them, shall, upon written request of a duly authorized representative of the Assistant Attorney General in charge of the Antitrust Division, the Attorney General for Illinois, Attorney General for
New York, or Attorney General for Massachusetts, and on reasonable notice to defendants, be permitted: 
  

	 	(1)	access during defendants’ office hours to inspect and copy, or at plaintiff’s option, to require defendants provide copies of, all books, ledgers, accounts, records and
documents in the possession, custody, or control of defendants, relating to any matters contained in this Final Judgment; and 

  

	 	(2)	to interview, either informally or on the record, defendants’ officers, employees, or agents, who may have their individual counsel present, regarding such matters. The
interviews shall be subject to the reasonable convenience of the interviewee and without restraint or interference by defendants. 

  

 15 

 B. Upon the written request of a duly authorized representative of the Assistant Attorney General in
charge of the Antitrust Division, the Attorney General for Illinois, Attorney General for New York, or Attorney General for Massachusetts, defendants shall submit written reports, under oath if requested, relating to any of the matters contained in
this Final Judgment as may be requested. 
  
 C. No
information or documents obtained by the means provided in this section shall be divulged by the United States, the State of Illinois, State of New York, or Commonwealth of Massachusetts, to any person other than an authorized representative of
the executive branch of the United States, or of each state government, except in the course of legal proceedings to which at least one of the plaintiffs is a party (including grand jury proceedings), or for the purpose of securing compliance with
this Final Judgment, or as otherwise required by law. 
  
 D. If at the time information or documents are furnished by defendants to the plaintiffs, defendants represent and identify in writing the material in any such information or documents to which a claim of protection may be asserted
under Rule 26(c)(7) of the Federal Rules of Civil Procedure, and defendants mark each pertinent page of such material, “Subject to claim of protection under Rule 26(c)(7) of the Federal Rules of Civil
Procedure,” then the plaintiffs shall give defendants ten (10) calendar days notice prior to divulging such material in any legal proceeding (other than a grand jury proceeding). 
  
 XII. Notification 
  
 Unless such transaction is otherwise subject to the reporting and waiting
period requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, 15 U.S.C. § 18a (the “HSR Act”), defendants, without providing advance notification to the United 

  

 16 

 
States, shall not directly or indirectly acquire any assets of or any interest, including any financial, security, loan, equity or management interest, in
the business of first-run, commercial theatres in Cook County, Illinois; New York County, New York (Manhattan); King County, Washington; Suffolk County, Massachusetts; and Dallas County, Texas during a 10-year period. This notification requirement
shall apply only to the acquisition of any assets or any interest in the business of first-run, commercial motion picture theatres at the time of the acquisition and shall not be construed to require notification of acquisition of interest in new
theatre developments or of assets not being operated as first-run commercial motion picture theatre businesses, provided, that this notification requirement shall apply to first-run, commercial theatres under construction at the time of the entering
of this Final Judgment. 
  
 Such notification shall be provided to
the United States in the same format as, and per the instructions relating to the Notification and Report Form set forth in the Appendix to Part 803 of Title 16 of the Code of Federal Regulations as amended, except that the information
requested in Items 5 through 9 of the instructions must be provided only about first-run, commercial theatres. Notification shall be provided at least thirty (30) days prior to acquiring any such interest, and shall include, beyond what may be
required by the applicable instructions, the names of the principal representatives of the parties to the agreement who negotiated the agreement, and any management or strategic plans discussing the proposed transaction. If within the 30-day period
after notification, representatives of United States make a written request for additional information, defendants shall not consummate the proposed transaction or agreement until twenty (20) days after submitting all such additional
information. Early termination of the waiting periods in this paragraph may be requested and, where appropriate, granted in the same 

  

 17 

 
manner as is applicable under the requirements and provisions of the HSR Act and rules promulgated thereunder. This Section shall be broadly
construed and any ambiguity or uncertainty regarding the filing of notice under this Section shall be resolved in favor of filing notice. 
  
 XIII. No Reacquisition 
  
 Defendants may not reacquire any part of the Theatre Assets during the term of this Final Judgment. 
  
 XIV. Retention of Jurisdiction 
  
 This Court retains jurisdiction to enable any party to this Final Judgment to
apply to this Court at any time for further orders and directions as may be necessary or appropriate to carry out or construe this Final Judgment, to modify any of its provisions, to enforce compliance, and to punish violations of its provisions.

  
 XV. Expiration of Final Judgment 
  
 Unless this Court grants an extension, this Final Judgment shall expire ten
years from the date of its entry. 
  
 XVI. Public Interest
Determination 
  
 Entry of this Final Judgment is in the
public interest. 
  

					
	 Date:
                                
	 	 
		
	 	 	 Court approval subject to procedures
 of
Antitrust Procedures and Penalties
 Act, 15 U.S.C. § 16

	 	 	  
  

	 	 	 	 	United States District Judge

  

 18 

 Respectfully submitted, 
  
 FOR PLAINTIFF UNITED STATES OF AMERICA: 
  

	
	 /s/ William H. Jones II

	 William H. Jones II (WJ 2563)
 Allen P. Grunes (AG
4775)
 Gregg I. Malawer (GM 6467)
 Avery W. Gardiner (AG
2011)
 Joan Hogan (JH 5666)

  
 Attorneys 
  
 Bernard M. Hollander (BH
0818) 
  
 Senior Trial Attorney 
  
 U.S. Department of Justice 
  
 Antitrust Division 
 Litigation III Section 
 325 Seventh Street, N.W., Suite 300 
 Washington, D.C. 20530 
 Tel: (202) 514-0230 
 Fax: (202) 307-9952 
  
 Dated: December 20, 2005. 
  

 19 

 FOR PLAINTIFF STATE OF NEW YORK: 
 Eliot Spitzer, Attorney General 
  

	
	 /s/ Jay L. Himes

	 By: Jay L. Himes (JH 7714)
 Chief, Antitrust
Bureau

	
	 /s/ Richard E. Grimm

	 Richard E. Grimm (RG 6891)
 Assistant Attorney
General

	
	 Antitrust Bureau

	 Office of the Attorney General

	 120 Broadway, Room 26C62

	 New York, New York 10271-0332

	 Tel: (212) 416-8282, (212) 416-8280

	 Fax: (212) 416-6015

	
	 FOR PLAINTIFF STATE OF ILLINOIS:

	 Lisa Madigan, Attorney General

	
	 /s/ Robert W. Pratt

	By: Robert W. Pratt (RP 7924)
	Chief, Antitrust Bureau
	Office of the Attorney General
	State of Illinois
	100 West Randolph Street
	13th Floor
	Chicago, Illinois 60601
	 (312) 814-3722
  
 Kavita Puri
 Assistant Attorney General
 OF COUNSEL

 FOR PLAINTIFF COMMONWEALTH OF MASSACHUSETTS 
 Thomas F. Reilly, Attorney General 
  

	
	 /s/ Jeffrey S. Shapiro

	 By: Jeffrey S. Shapiro (JS 5521)
 Mary B. Freeley (MF
1359)
 Assistant Attorneys General
 Office of the Attorney
General
 Commonwealth of Massachusetts
 One Ashburton
Place
 Boston, MA 02108
 (617) 727-2200

 FOR DEFENDANT AMC: 
  

	
	 /s/ Ilene Knable Gotts

	Ilene Knable Gotts (NY Bar 2797181)
	Damian G. Didden (NY Bar 4163408)
	Wachtell, Lipton, Rosen & Katz
	51 West 52nd Street
	New York, NY 10019
	Tel: (212) 403-1113
	Fax: (212) 403-2113

 FOR DEFENDANT LOEWS: 
  

	
	 /s/ Deborah L. Feinstein

	Deborah L. Feinstein
	Arnold & Porter LLP
	555 Twelfth Street, NW
	Washington, D.C. 20004
	Tel: (202) 942-5015
	Fax: (202) 942-5999

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